The reason that this is happening is because of the high savings rate in China. This enable's China to invest in infrastructure, industry and technology with low interest rate and low inflation.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
i was under the impression that china's savings rate has dropped to Europe/USA levels since the GFC?
Chinese families, constrained by Covid lockdowns, hoarded cash and pushed up the country’s household saving rate to a multiyear high of 33% in 2022, up 3 percentage points from the pre-pandemic trend in 2019, according to estimates by Goldman Sachs.
WSJ is propaganda (for Westoid-educated finance/business professionals) too, but whatever other propaganda you were previously reading has clearly had an impact on you. Even post-GFC, Chinese savings rate was in the ballpark of 30%. Clearly some nonsense you've been reading that wants to push the Chinese debt collapse angle, or at least to give Westoids the false delusion that Chinese people aren't better off than they are.
But also companies don’t make investment plans based on just short term disruptions. The survey reflects corporate hesitancy due to long term geopolitical tensions. It’s just bad for business.
Really? Tell that to all those corporate executives who only care about the next quarter's financial report.
Anyways, they are free to leave the world's second largest market while their Chinese competitors take over their shares.
antiterror13
Brigadier
Where did your impression come from?
True, many of my Chinese friends who are not interested in politics at all, decided to boycott H&M when it made the fake "we-gar" genocide bs. It was shocking, but also made me respect their nationalism.
Your making assumptions. Do you know the exact phrasing of the question and survey? What if it asked about short term or intermediate term investments. Oct and Nov were very low points for china economically. They didn't know these lock downs were going to be lifted and thus can't characterize that as only a short term disruption.
The mood may be different if the survey was asked now.
The headline of the bloomberg piece and that tweet are deceiving by saying "majority". If only 319 companies answered the survey, 55% of the 319 is like less than 20% of the total 1000 chamber members.