C919 is a good plane but just having 1 plane delivered is not what I call competitive yet. I consider competitive not just having technology and designs, but also having significant market shares.
Chinese Economics Thread
- Thread starter Norfolk
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I don't mind mishtalk, but he is missing the point here. China is not looking to have Yuan as the reserve currency. It is looking to create a system that it can fully control and cannot be sanctioned by the West. I'm sure even he agrees that makes sense and the West has made colossal mistake with this currency/economic warfare on Russia which has just alienated and scared all the Arab countries. Thanks to these countries, non-Western countries are looking for alternatives to US/Western dominated system so they can be coerced easily. That's the appeal of SFE, DCE, Shanghai petroleum and nat gas exchange to people in China and hopefully to nearby countries.
He also has some basic facts wrong. There is a fully floating off shore version of CNY that's cleared in HK that anyone in the west can trade. That's why China had to defend Yuan so much earlier this year. And China is significantly adding to its government bond market.
It still has small international volume compared to US treasuries and the Gilts, but it will increase over time, especially with other Asian countries.
here is a good link to read
They are looking to create an influential oil/gas/energy trading platform in Shanghai. They don't want to use ICE or CME.
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They liked their dollars and then the West started to confiscate properties and that got them more nervous.
More importantly, it doesn't really matter how much they like RMB. Recently, BHP or Rio Rinto made its first sale to China of iron ore in RMB. China told them that if you don't transact with us in RMB, we will buy it all from Russia. Guess what, Australian companies did what they need to do to get their sales across.
China can get cheap oil from Russia paid in RMB. It can probably force Iran into taking RMB for their oil if they really pushed. While GCC may control oil export market, they still don't want to loose their sales and influence to Iran and Russia. Basic economics.
China has been paying in RMB for Iranian oil for a decade. Now, Russia is the second major oil producer to accept RMB. As the financial infrastructure for such sales is being established, other producing countries can conduct part of their trade in RMB as well. Nobody wants to hold a currency like the US dollar with very little property protection. It may be cheaper to transact in and hold USD, but after assets are stolen it certainly doesn't feel much cheaper anymore.
I doubt that Saudi Arabia can afford to be the first to move away from the petrodollar officially, but a smaller country like the UAE or Kuwait or even Iraq could lead the Arab world away from the dollar
Their asset are in dollars does not mean they have to put money in the West. They can put it in tax heaven like Panama
Yes, I've read that article a while back, but I'm not aware that China has been paying Iran in RMB for most of its oil. Otherwise, RMB in oil trade should be higher than what it is now. We do know that China is paying Russian in RMB or RUB for all of the hydrocarbons. That's the difference. The Russians are forcing everyone else to pay China using RMB.
The Saudis brought all of the GCC in there in order to not take all of the blow back. Let's face it, nobody in GCC likes what the West has done recently. The usage of Shanghai Petroleum and natural gas platform is designed so that the West doesn't have visibility into who is selling/buying these hydrocarbon contracts.
The Russians are definitely going to be using SHPGX.
LNG contracts has been trading on here for a while, although it's unclear how often foreign players are actually participating. as I noted earlier, Qataris have definitely used this service by now.
I think this announcement simply encourages all of GCC countries and countries around the world to more proactively use this platform.
The US can prevent all banks from dealing with sanctioned individuals. Former HK chief executive Carrie Lam can’t even get a single bank to handle her salary payments
PikeCowboy
Junior Member
This consumer of last resort concept is some voodoo economic bull shit
Economics is now a pseudoscience more than it ever was
No one wants to serve someone else for free (consumer of last resort, oh woe is me the world relies on me to consume). The US exports technology.
D
Deleted member 23272
Guest
That's a tall order, but hopefully it pans out. Forgot to add too that the Fed is unlikely to continue raising interest rates, so the Yuan should continue recovering to the dollar. Right now its at 6.97, compared to the earlier low of around 7.40.