Chinese Economics Thread

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SanWenYu

Captain
Registered Member
tamsen_ikard said:
Considering China's urbanization rate of 65%, they have a huge potential of people who still need to move to cities. So, I don't think that China is overbuilt. There is a problem of people overinvesting in multiple properties instead of investing in stocks. So, China needs a long property downturn to change people's obsession with properties.

But the problem is the lack of stimulus and monetary expansion. China has a huge dollar reserve, they should print more yuan and use the dollar reserve to defend the currency. But they are not doing it. I wonder why they are so hesitant to print more yuan and end the deflationary period.
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I am not an expert but I have kept hearing the following regarding China's ForEx reserve. Businesses in China do not get the USD/euro/JPY etc. paid by their foreign clients/customers. They receive RMB instead from the ForEx admin authority. This means that the People's bank has already printed RMB for the ForEx reserve and those yuans are already in circulation.
 
vincent

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
SanWenYu said:
I am not an expert but I have kept hearing the following regarding China's ForEx reserve. Businesses in China do not get the USD/euro/JPY etc. paid by their foreign clients/customers. They receive RMB instead from the ForEx admin authority. This means that the People's bank has already printed RMB for the ForEx reserve and those yuans are already in circulation.
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Chinese manufacturers can tell their clients to deposit USD in their bank accounts in the Cayman Islands
 
C

Chish

Junior Member
Registered Member
azn_cyniq said:
I agree with you, but I'm glad that most westerners are ignorant about China's economy. China will most likely become the strongest nation in this planet's history within our lifetimes. Why should China announce that to the rest of the world? Articles about the "impending collapse of China" literally do not matter at all because they don't change the fact that China's $19 trillion economy grew more than 6% in the previous quarter. If anything, China is probably behind those stories. Western ignorance is a godsend because by the time the majority of westerners come to terms with China's strength, it will be far too late for them to do anything about it.
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The ignorance is not just about the economy, its also about almost everything about China such as technology, trade, military, environments and the Chinese society . This is due to the perpetual demonizing and spreading of falsehoods by their governments to cover up their own failings in comparison to China.

Their governments do have departments and budgets for such propaganda. These ignorant people are the unwitting victims of their governments' malice. But at least some can see something is just not right and start questioning. Some voted with their feet. Even though more migrants are coming in than moving out of the US and UK, it's mostly the elites and the middle class that are moving out or have plans set up.

A bit of research and you be surprised to know the number and where Americans are having permanent residency. As for the UK, in 2022, more than 1 million migrants moved in but also more than half a million emigrated, many skilled or highly educated.
 
K

KYli

Brigadier
Although Chinese economy is not rosy but it is still recovering and growing.
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On the domestic side, China weekly flights surged 13% above pre-Covid levels in the week ending Aug. 20, according to travel platform Flight Master.

International travel is also picking up. Bookings for overseas group tours during the National Day Holiday in October more than tripled from a month ago as of Aug. 17 — a week after China eased restrictions — according to a statement by online travel agency Trip.com Group Ltd. Searches for overseas flights as of early August already surpassed the same time period in 2019, according to a separate statement. Flights between the US and China are set to double from current levels by the end of October.
 
56860

56860

Senior Member
Registered Member
Bellum_Romanum said:
An interesting if not contrarian take by Andy Xie regarding China's current deflationary situation.

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I don't think you understand. Let me lay it out for you as clearly as possible:

China deflation = bad
China inflation = bad
China population decline = bad
China population increase = bad
China building infrastructure = bad
China tearing down infrastructure = bad
China gdp growth high = bad
China gdp growth low = bad
China inhaling = bad
China exhaling = bad
China going right = bad
China going left = bad
China going up = bad
China going down = bad

Understood?
 
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