There isn't any talent shortage, it's just companies whining that they have to *gasp* actually train the people they hire.
Chinese Economics Thread
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China must build this canal now. This will make more arable land for economies to grow. The whole canal is expensive, we can decided in many sections if the whole project is expensive
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Let's see what the report says:
"The intelligent manufacturing sector was short of 4.3 million digital workers last year, according to a joint report by Deloitte and Chinese firm Renrui Human Resources Technology."
So basically this is mostly an issue with young people not wanting to work in manufacturing anymore. It's the same in every country. The boomers who built up the sector are not very digitally savvy. The logical solution would be more automation which is exactly what's happening.
South Korean goods lose their luster in China
Fueled by the rise of domestic manufacturing, exacerbated by Seoul's inclination to side with Washington
By GT staff reporters Published: May 04, 2023 07:39 PM
Once a much-needed supplier of products ranging from chips to ships for China, South Korea is increasingly facing a predicament as its products become less popular, and even start to be replaced by Chinese suppliers.
Shifting dynamics has led to changes in bilateral relations between the two countries who have historically been close trading partners, with South Korea showing an inclination to side with the US to fill the vacuum left by declining exports to China, while China is also diversifying its sources of imports.
According to recent data published by Reuters, South Korea's exports fell for a seventh straight month in April, which represents their "longest losing streak" for three years. The country's exports dropped by 14.2 percent year-on-year to $49 billion for the month, the report stated.
One important reason behind the nation's dropping exports is its decreasing sales to the Chinese market. According to trade statistics published by the Korea International Trade Association (KITA), the country's share of exports to China totaled 19.5 percent in the first quarter of this year. This marks the first time since 2005 that South Korea's share of exports to China has fallen below 20 percent, according to media reports,
Last month, South Korea's exports to China dropped by 26.5 percent to $9.52 billion, accounting for a $2.27 billion trade deficit with China, data from Yonhap News Agency showed.
China is still South Korea' s largest trading partner, while South Korea is China's fourth largest trade partner.
Replacing South Korean goods
Analyzing the situation, experts said that changes have been occurring over an extended period. Chinese customers no longer rely on some of South Korea's "superior products" like electronic components and cars as much as they used to. Instead, they are buying directly from Chinese suppliers.
A report published by a research academy under the KITA on Wednesday noted that Chinese exports account for the highest proportion in the world in three of five emerging industries---new-generation semiconductors, displays and rechargeable batteries. The other two emerging industries are biomedicine and electric cars, Yonhap News Agency reported.
From 2016 to 2021, the proportion of China's above-mentioned five emerging industries increased by 1.6 percentage points in terms of exports. Germany and Vietnam's industries increased by 0.9 percent and 0.7 percent respectively in terms of exports share, while the US, Japan and South Korea decreased by 1, 0.6 and 0.1 percentage point, the report noted.
In particular, South Korea's semiconductor products, which has been a major source of imports for China, has given way to the rise of local industries.
"There are three reasons why South Korea's semiconductor exports to China have suffered decline. First, many South Korean semiconductor companies are setting up plants on the Chinese mainland. Second, the production capability of Chinese local semiconductor firms has strengthened, with the ability to replace more expensive South Korean supplies. Third, South Korea is following the US' semiconductor policies, which restricts their business ties with China," Ma Jihua, a veteran tech analyst, told the Global Times on Thursday.
LüChao, a professor and Director of the Institute of the US and East Asian Studies at Liaoning University, shared a similar view. According to Lü, China is currently the largest buyer of South Korea's medium- and low-end semiconductor products. However, imports are declining as China continues to upgrade its domestic production capacity and strengthen the research and development of relevant products, he told the Global Times on Thursday.
According to a report by South Korean news portal Pulse, South Korea's exports of chips fell 49.5 percent as of March 25 compared with the same period one year ago.
Ma believed that the changes across China's and South Korea's semiconductor industries are unlikely to reverse over the short term, which means that South Korea's declining exports to China will continue.
"Against the backdrop of current international situation and China-South Korea relations, it's likely that South Korea's semiconductor industry will decline not only in terms of exports, but also in terms of its position throughout global supply chains," Ma said.
Siding with the US
Facing a changing landscape, South Korea is increasingly showing an inclination to stand by the US in the latter's crackdown against China, with the intention to let the US market fill the vacuum left by declining exports to China, analysts said.
The US is also making efforts to rope in South Korean companies to exclude Chinese companies from global chip supply chains. For example, the US is intent on setting a chip alliance along with Asian economies including Japan and South Korea to counter China's semiconductor industrial rise. South Korean chip giant and the world's second largest contract chip manufacturer Samsung also announced plans to establish a plant in Texas in 2021.
According to Lü, in the 30 years since China and South Korean established formal diplomatic relations, South Korea has gone from a completely hostile relationship to one of mutual cooperation and strategic partnership.
"However, Yoon Suk-yeol's unilateral actions to overturn this progress may drive South Korea's economy into a dead end," he said.
Experts said that South Korea's attempt to drift apart from China is an unwise policy, as there are no country in the world that can replace China's market scale, which is large enough to "digest" South Korea's production output of many products.
"South Korea is facing a dilemma that the US is pulling it away from China's semiconductor market, which is the largest buyer of South Korean electronic products," Lü said. "But the consequence is, there is no other market that has the same consumption potential as China."
On the other hand, with South Korea siding with the US to exclude China's semiconductor industries, it will further push domestic companies to accelerate replacement of overseas imports, which in turn will further squeeze the market share of South Korean products whether in China or across the globe, Ma noted.
"I think with South Korea's advantages in research and development for technology, there's still plenty of space for South Korean firms to cooperate with Chinese enterprises," Ma said. "The opportunities are there for them to grasp."
someone mentioned this to me on twitter
This should confirm what we already know. with China's huge energy cost advantage, German & other European firms are just shifting production to China to take advantage of the lower cost. Terrible for Europe & great for China.
The obvious implication of last tweet is that European machines are now using Chinese parts, which means Europe has simply become more hooked on Chinese supply chain
This should confirm what we already know. with China's huge energy cost advantage, German & other European firms are just shifting production to China to take advantage of the lower cost. Terrible for Europe & great for China.
The obvious implication of last tweet is that European machines are now using Chinese parts, which means Europe has simply become more hooked on Chinese supply chain
Changes to Chinese auditing regulations:
2023-05-05 08:48:14Global Times Editor : Li Yan
Chinese financial authorities on Thursday issued new rules on the service of accounting firms for state-owned enterprises (SOEs) and listed companies, including an eight-year maximum service time for accountants employed by SOEs, and enhanced checks on data security of accountants, so as to improve audit quality and promote fair competition.
The move came after multiple accounting firms, including Deloitte, were previously disciplined for serious deficiencies in its audit of Chinese companies.
Experts said that the move was a significant reform in China's stepped-up audit sector regulation to ensure the authenticity of information disclosure, while tackling some chronic issues such as collusion.
The rules apply to all accounting firms operating in China, regardless of they are domestic or foreign -- a strong rebuttal to what some foreign media hyped as China's plan to "phase out" global accounting service.
According to the new rules, SOEs including state-controlled listed firms, under normal conditions, should not employ the same accounting firm for more than eight consecutive years.
The measures were jointly issued by China's Ministry of Finance (MOF), the State-owned Assets Supervision and Administration Commission, and the China Securities Regulatory Commission (CSRC).
The new regulation is to ensure the stability of cooperation between accounting firms and enterprises, while tackling issues like collusion, which is an important reform measure to strengthen accounting supervision in China, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Thursday.
The measures also call on SOEs and listed firms to strengthen reviews of data security management for accounting firms during the selection and hiring processes. The measures require companies to have dedicated clauses in contracts, and enhance security of confidential and sensitive information.
Accounting firms should fulfill their obligations of information security protection, and process information in accordance with the regulations.
As China enters a new stage of development, it is necessary that the country should strike a delicate balance between development and security, analysts said. That means all accounting firms should abide by Chinese laws, including data security stipulations.
Both Chinese and foreign firms need to follow Chinese regulations when auditing domestic firms, and the security of sensitive data should be handled in accordance with the law through proper management, Dong said.
The Global Times reported in February that some of the four biggest international accounting firms - PwC, KPMG, Ernst & Young and Deloitte & Touche - have won bids to provide accounting services to Chinese SOEs.
The authenticity of information disclosure will also be improved while enterprises' financial accounts and status can be better handled, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday.
Previously, accounting firms and enterprises may have had long-term "tacit agreements," leading to lackluster requirements for the auditing process and resulting in inaccurate information disclosures, Xi noted.
The new rules also clarify the detailed responsibilities, such as policies, processes and related internal control systems for the selection and engagement of accounting firms.
In recent months, Chinese regulators have moved to step up oversight of many accounting firms.
In March, the Ministry of Finance announced a fine of 800,000 yuan ($115,750) for China Huarong Asset Management and its seven subsidies, and imposed a fine of nearly 212 million yuan on its auditor Deloitte along with other penalties, after an investigation uncovered illegal activities including audit deficiencies.
And, China Securities Regulatory Commission fined accounting firm Moore Stphens Da Hua CPAs in March for disclosing false records of Zoneco's annual financial report in 2016 and failing to exercise diligence in the year's auditing process.
New measures to govern audit service for SOEs, listed companies
2023-05-05 08:48:14Global Times Editor : Li Yan
Chinese financial authorities on Thursday issued new rules on the service of accounting firms for state-owned enterprises (SOEs) and listed companies, including an eight-year maximum service time for accountants employed by SOEs, and enhanced checks on data security of accountants, so as to improve audit quality and promote fair competition.
The move came after multiple accounting firms, including Deloitte, were previously disciplined for serious deficiencies in its audit of Chinese companies.
Experts said that the move was a significant reform in China's stepped-up audit sector regulation to ensure the authenticity of information disclosure, while tackling some chronic issues such as collusion.
The rules apply to all accounting firms operating in China, regardless of they are domestic or foreign -- a strong rebuttal to what some foreign media hyped as China's plan to "phase out" global accounting service.
According to the new rules, SOEs including state-controlled listed firms, under normal conditions, should not employ the same accounting firm for more than eight consecutive years.
The measures were jointly issued by China's Ministry of Finance (MOF), the State-owned Assets Supervision and Administration Commission, and the China Securities Regulatory Commission (CSRC).
The new regulation is to ensure the stability of cooperation between accounting firms and enterprises, while tackling issues like collusion, which is an important reform measure to strengthen accounting supervision in China, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Thursday.
The measures also call on SOEs and listed firms to strengthen reviews of data security management for accounting firms during the selection and hiring processes. The measures require companies to have dedicated clauses in contracts, and enhance security of confidential and sensitive information.
Accounting firms should fulfill their obligations of information security protection, and process information in accordance with the regulations.
As China enters a new stage of development, it is necessary that the country should strike a delicate balance between development and security, analysts said. That means all accounting firms should abide by Chinese laws, including data security stipulations.
Both Chinese and foreign firms need to follow Chinese regulations when auditing domestic firms, and the security of sensitive data should be handled in accordance with the law through proper management, Dong said.
The Global Times reported in February that some of the four biggest international accounting firms - PwC, KPMG, Ernst & Young and Deloitte & Touche - have won bids to provide accounting services to Chinese SOEs.
The authenticity of information disclosure will also be improved while enterprises' financial accounts and status can be better handled, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday.
Previously, accounting firms and enterprises may have had long-term "tacit agreements," leading to lackluster requirements for the auditing process and resulting in inaccurate information disclosures, Xi noted.
The new rules also clarify the detailed responsibilities, such as policies, processes and related internal control systems for the selection and engagement of accounting firms.
In recent months, Chinese regulators have moved to step up oversight of many accounting firms.
In March, the Ministry of Finance announced a fine of 800,000 yuan ($115,750) for China Huarong Asset Management and its seven subsidies, and imposed a fine of nearly 212 million yuan on its auditor Deloitte along with other penalties, after an investigation uncovered illegal activities including audit deficiencies.
And, China Securities Regulatory Commission fined accounting firm Moore Stphens Da Hua CPAs in March for disclosing false records of Zoneco's annual financial report in 2016 and failing to exercise diligence in the year's auditing process.
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They're confirmed to be working on it chill
Great thread except for the invocation of the oil blockade meme but I'll hold off on that
China Unicom, Tencent announce joint venture plans
2023-05-05 08:16:00chinadaily.com.cn Editor : Li Yan
China Unicom, the country's major telecommunications operator, and Tencent Holdings, a leading internet firm, have officially set up a joint venture to better tap into the opportunities of the digital economy.
The new JV, roughly translated as Yunzhou Times Technology Co Ltd, was officially established in Beijing last week, China Unicom said on Thursday. The move came after the State Administration for Market Regulation approved the venture capital arms of China Unicom and Tencent to establish the JV in October. The new venture will focus on content distribution and edge computing, and help accelerate the development of services such as digital governance and artificial intelligence.
Summary of this tweet:
Ursula von der Leyen: Gotta act TOUGH on Russia! Sanction Russian oil/gas, even if skyrocketing prices to detriment of German industry!
Ursula von der Leyen: Gotta act TOUGH on China! De-risk or de-couple from China by increase German industry dependence on Chinese suppliers due to superior price competitive goods.
These are the same retarded Western politicians making on decision based on supposed principles while everything is backfiring on them. This is why China doesn't really need to do anything, they are shooting themselves in the foot. You can also see this with US/European airlines complaining of China airlines flying over Russian airspace and complaining about lost profits.