Chinese Economics Thread

gelgoog

Lieutenant General
Registered Member
They still have not decided on a route for Power of Siberia 2 pipeline. Until they decide on a route it is unlikely you will see a deal being signed.

The Turkmenistan gas route does not directly compete with the Power of Siberia pipelines. Power of Siberia pipeline feeds directly into Northeastern China where a large part of the Chinese population lives, while the Turkmenistan pipeline goes into Xinjiang. While both have routes into Shanghai area, where most current gas demand is, via pipelines inside China that is not their entry point.

Until Northeast China converts more of its infrastructure to use gas China won't need the extra capacity of Power of Siberia 2. We saw protests about the government forcing people out of burning coal into gas in Northeast China a couple years ago. There will be a lot of resistance into moving towards natural gas, but I expect it to happen. China needs natural gas as a stopgap until other sources become available. The Chinese government has a goal to reduce urban air pollution, and converting from burning coal to natural gas will be a major driver of this reduction in pollution.

Russia only finished building the extension of Power of Siberia pipeline from Kovyktinskoye to Chayandinskoye (793 km) late last year. They still need to build the extension from Khabarovsk to Blagoveshchensk (probably 580 km). I doubt construction on Power of Siberia 2 - Soyuz Vostok will start until that gets finished.
 
Last edited:

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
Seems China will be needing Russia less and less with each passing year. However, Russia is needed for strategic reasons as they are the only major/powerful ally on China's side to help balance US and her allies.
there are a lot more to Russia than just oil & gas even if we only look at economic factors. For example, just take a look at the role Russia has in Nickel, iron & titanium industry. It's also a leader in nuclear fuel and has about same amount of rare earth reserves as vietnam and Brazil. It also has a large lithium reserve. It's also a very good sized market for Chinese Technology. The economic ties between the two countries is extremely important.
 

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
This will be interesting to see. The collapse of Lloyd of London in Insurance business because the BRICS nations create their own system would be quite the sight.
This goes beyond just shipping insurance, but how we do everything. Western countries have had monopoly in these areas, but there should be a secondary choice if they are abusing their position.

Another example of Russia shifting import of manufactured goods from Japan & western countries to China. japan has decided to buy Russian oil again, so expect them to run a huge trading deficit to Russia

Well if this happens, even better for Chinese exports

Please, Log in or Register to view URLs content!
will be interesting to see what Pakistan pays Russia in. Hopefully RMB

Also given the very warm visit from Malaysian PM Anwar recently, looks like they can get the Jho Low situation worked out. Haven't been to Malaysian recently, not sure the implications here
Please, Log in or Register to view URLs content!
 
Last edited:

Overbom

Brigadier
Registered Member

China's Ministry of Commerce

2023 Q1, foreign direct investment (FDI) from various countries to China:-

surged year-on-year

France - 635.5%
Germany - 60.8%
UK - 680.3%
Canada - 179.7%
Japan - 47.7%
Switzerland - 47.4%
South Korea - 36.5%
BRI countries - 27.8%

USA has no data. interesting
Overall figure is what matters:
Please, Log in or Register to view URLs content!

China's FDI inflow up 4.9 pct in first three months​

 

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
Please, Log in or Register to view URLs content!
"We are bullish about our business for this year and believe the Chinese chemical market will achieve even better growth compared to last year, said Conrad Keijzer, CEO of Clariant, during a recent interview.

"As the Chinese chemical market accounted for around 40 percent of our total chemical demand last year, with the percentage expected to keep climbing, China has become Clariant's biggest source of revenue so far," Keijzer said.
Clariant expanding its presence in Chinese with new facilities planned. interesting that China accounts for 40% of their demand.

makes sense since olefins production is exploding in China. so the catalyst for that is also exploding
 
D

Deleted member 23272

Guest
Considering the events of last year this piece of data comes at no surprise. But 15 new unicorns compared to the US's 179 for 2022 is still a pretty damning number and does explain why the youth unemployment data for the 1st quarter has been equally bleak despite the economic rebound. One can only hope this year will see a change in fortunes so that the recovery can have a more solid footing.

Please, Log in or Register to view URLs content!
 

USTBasisRollCarry

New Member
Registered Member
The financial sector in China is severely underdeveloped (capital markets and risk management) which causes massive piles of savings to pile up without good investments: this causes a lack of unicorns/startups and firm size from a lack of good equity structures to invest in, a persistent credit crunch as securitized products, structured debt products and corporate bond markets don't exist to be able to effectively manage the risk of loans to corporates and real estate bubbles since its one asset class that investors in China can simultaneously use as a house.
 

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
The financial sector in China is severely underdeveloped (capital markets and risk management) which causes massive piles of savings to pile up without good investments: this causes a lack of unicorns/startups and firm size from a lack of good equity structures to invest in, a persistent credit crunch as securitized products, structured debt products and corporate bond markets don't exist to be able to effectively manage the risk of loans to corporates and real estate bubbles since its one asset class that investors in China can simultaneously use as a house.
No thanks to your financial “innovations”. Only retards would follow your path of self-destruction.
 
Top