Chinese Economics Thread

[Biscuits]

China might never overtake the US in nominal GDP now because the US will now have perma high inflation forever ending in hyperinflation due to mega-money printing and de-dollarization until the empire collapses.

Let's say the US has grown 1% in real terms in a year, and had 4% inflation, it means that their nominal GDP number by the end of that year is now higher 5% than the last despite it not meaning anything positive and it actually being bad for the economy.

It doesn't differentiate between raising prices and actual economic output alongside many other things. I recommend everyone to stop watching over bullshit nominal GDP numbers, it is an inferior productivity indicator in around 5-10 ways.

It is not even an inferior measure, because in order to calculate gdp you first need the raw number. More accurately, it is not a measure at all, but a part of a complete measure.

Without paring with the inflationary data, the result is unusable.

 

[Quan8410]

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Usd is worthless. Gold is the way to go.

 

[SanWenYu]

China might never overtake the US in nominal GDP now because the US will now have perma high inflation forever ending in hyperinflation due to mega-money printing and de-dollarization until the empire collapses.

Let's say the US has grown 1% in real terms in a year, and had 4% inflation, it means that their nominal GDP number by the end of that year is now higher 5% than the last despite it not meaning anything positive and it actually being bad for the economy.

It doesn't differentiate between raising prices and actual economic output alongside many other things. I recommend everyone to stop watching over bullshit nominal GDP numbers, it is an inferior productivity indicator in around 5-10 ways.

Has no one thought that RMB can appreciate dramatically once China has its own independent semiconductor and jet airliner industries?

I optimistically predict that, around 2030, no later than 2035, China will be able to start pumping out fully indigenous ICT products and jet airliners.

 

[henrik]

Has no one thought that RMB can appreciate dramatically once China has its own independent semiconductor and jet airliner industries?

I optimistically predict that, around 2030, no later than 2035, China will be able to start pumping out fully indigenous ICT products and jet airliners.

Remember that China is still under counting its GDP. Some economic activities are not even included.

 

[antiterror13]

Remember that China is still under counting its GDP. Some economic activities are not even included.

And also the methodology of counting GDP in China is different (pragmatic) than in the US and some of developed world.

Example: If you own the house, in China, there is no adding GDP as you own it. While in the US and some developed countries, the GDP increase as if you rent your own house ... so adding to the GDP

Also so many economic activities in China are not counted into GDP (yet)

So really GDP is just nothing

 

[sunnymaxi]

Remember that China is still under counting its GDP. Some economic activities are not even included.

And also the methodology of counting GDP in China is different (pragmatic) than in the US and some of developed world.

Example: If you own the house, in China, there is no adding GDP as you own it. While in the US and some developed countries, the GDP increase as if you rent your own house ... so adding to the GDP

Also so many economic activities in China are not counted into GDP (yet)

So really GDP is just nothing

Party hides actual GDP numbers. real GDP numbers are far higher than what actually report. LOL

Nightlife business in China is highly under reported. street vendors doesn't count in GDP and small businesses easily hide their actual production to avoid taxes.

you know why CPC is so calm and relax. they know, we are the largest real economy in the world.

 

[FriedRiceNSpice]

GDP was developed at a time when industrial output was the primary component of the most advanced economies of the world, it was used as a proxy for industrial output. In today's advanced economies, services form the largest component of the world's advanced economies, hence nominal GDP is no longer a good measurement of economic output. It doesn't make sense to compare the value of services across economies without accounting for prices and wage differences. PPP becomes a much better (albeit imperfect) measure for output than nominal GDP. An alternative is to directly measure relevant indicators as opposed to using a proxy like GDP (either PPP or nominal). Today we can directly look at the industrial/manufacturing output (in nominal terms), trade volume, exports, and imports.

 

[antiterror13]

GDP was developed at a time when industrial output was the primary component of the most advanced economies of the world, it was used as a proxy for industrial output. In today's advanced economies, services form the largest component of the world's advanced economies, hence nominal GDP is no longer a good measurement of economic output. It doesn't make sense to compare the value of services across economies without accounting for prices and wage differences. PPP becomes a much better (albeit imperfect) measure for output than nominal GDP. An alternative is to directly measure relevant indicators as opposed to using a proxy like GDP (either PPP or nominal). Today we can directly look at the industrial/manufacturing output (in nominal terms), trade volume, exports, and imports.

And in China way ... how much electricity is consumed, actually it is better measure of economic activities

 

[sunnymaxi]

And in China way ... how much electricity is consumed, actually it is better measure of economic activities

China's total electricity consumption is larger than USA+Russia+india+Japan+Brazil combined.

By 2025, Asia is projected to account for half of the world’s electricity consumption, with one-third of global electricity to be consumed in China..

 

[antiterror13]

China's total electricity consumption is larger than USA+Russia+india+Japan+Brazil combined.

By 2025, Asia is projected to account for half of the world’s electricity consumption, with one-third of global electricity to be consumed in China..

And China now is very hot in renewable generation, especially Hydro, Wind and Solar ... also Nuclear too

Coal consumption in China is slowing down and may decrease in near future