Chinese Economics Thread

[Deleted member 24525]

what's so ridiculous about Russian output being comparable to Germany'

Aside from nuclear weapons/energy and aerospace, Russia has no meaningful independent technological capabilities to speak of, and is dependent on fossil fuel extraction for its national income. Germany is an absolute powerhouse in basically everything mechanical, from CNCs to vehicles to high performance bearings and heavy duty gas turbines, also optics and metallurgy.

I mean Australia has an far less technologically complex economy than Russia's

This link clearly shows Austria's economic complexity index being much higher than Russia's

 

[coolgod]

This link clearly shows Austria's economic complexity index being much higher than Russia's

Australia, not Austria.

 

[Deleted member 24525]

Australia, not Austria.

Oh my bad

 

[Arij Javaid]

Aside from nuclear weapons/energy and aerospace, Russia has no meaningful independent technological capabilities to speak of, and is dependent on fossil fuel extraction for its national income. Germany is an absolute powerhouse in basically everything mechanical, from CNCs to vehicles to high performance bearings and heavy duty gas turbines, also optics and metallurgy.

This link clearly shows Austria's economic complexity index being much higher than Russia's

PPP is a better metric to judge the economic strength if a country is producing and consuming most of the stuff it produces. The nominal rates doesn't take into account the inflation. For example. If a good costs $5 in China and china produces 5000 of those goods. China will add $25000 nominal value to it's GDP. If the same good costs $10 in the US and the US produces 300 of those goods, US would add $30000 nominal value to it's GDP. If China decides to pump all it's reserves to boost the value of yuan which boosts yuan's value by 20-25%, China's nominal GDP will shoot past the US. Does that inherently mean China's economy is more productive than the US?? Not necessarily. Infact a strong yuan would tank China's exports and reduce the trade surpluses it runs with other countries. The value of dollar going up or down doesn't indicate what china is producing and consuming. What matters is imports and exports, productivity, manufacturing output and a strong domestic consumption and savings. China is ahead of US in all those metrics.

 

[BlackWindMnt]

Aside from nuclear weapons/energy and aerospace, Russia has no meaningful independent technological capabilities to speak of, and is dependent on fossil fuel extraction for its national income. Germany is an absolute powerhouse in basically everything mechanical, from CNCs to vehicles to high performance bearings and heavy duty gas turbines, also optics and metallurgy.

This link clearly shows Austria's economic complexity index being much higher than Russia's

To be fair its not a small task for a nation to be able to do those things. You already need to have an impressive industrial base to create nuclear weapons/energy/icebreakers, civilian air liners, jet fighters, dependable and now proven war machines, hyper sonics missiles etc.

If you ask me in 15~20 years we will be talking of a Germany that once was and not the Germany that is an industrial powerhouse in the world. Especially when you are bleeding hundreds of billions each year to subsidise energy costs and trillion plus as an economic block(EU).

Edit: We can look back historically what happened to China and India during the colonial era when they were forced to take certain deals.. I wouldn't be surprised if the EU ended up in a worse state then India and China in the 1940s. They have a smaller internal market, the continent is resource poor especially if they can't normalise relationships with Russia soonish or take back control in Africa.

 

[ACuriousPLAFan]

PPP is a better metric to judge the economic strength if a country is producing and consuming most of the stuff it produces. The nominal rates doesn't take into account the inflation. For example. If a good costs $5 in China and china produces 5000 of those goods. China will add $25000 nominal value to it's GDP. If the same good costs $10 in the US and the US produces 3000 of those goods, US would add $30000 nominal value to it's GDP. If China decides to pump all it's reserves to boost the value of yuan which boosts yuan's value by 20-25%, China's nominal GDP will shoot past the US. Does that inherently mean China's economy is more productive than the US?? Not necessarily. Infact a strong yuan would tank China's exports and reduce the trade surpluses it runs with other countries. The value of dollar going up or down doesn't indicate what china is producing and consuming. What matters is imports and exports, productivity, manufacturing output and a strong domestic consumption and savings. China is ahead of US in all those metrics.

FTFY.

 

[Gogurt4ever]

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Letter from the Ministry of Commerce regarding the unreasonable and differential treatment of domestic and foreign investment

Solid thread with a summary of the unfair practices listed:

https://twitter.com/i/web/status/1722533113757376813

I wonder to what extent these issues will be resolved, and whether it will produce meaningful change in European policy towards China. It seems sensible to me to tackle these issues in close coordination with the EU -- to signal that there are meaningful changes being made, but also that further anti-competitive EU policy would be unreasonable and subject to retaliation/policy reversal.

 

[ZeEa5KPul]

China's economy relative to the US is certainly bigger than nominal measurements would suggest, but it is very likely that the PPP measure goes too far in compensating for this.

No. If anything, PPP adjustment understates the size of China's economy. I can count on one hand the number of technologies/industries the US has and China doesn't, while there are innumerably many industries China has the US doesn't or has lost. To take one example, compare the recent offerings of Chinese NEVs across the price spectrum. A comparable vehicle in the US would be 2-3x the price or would be completely unavailable.

Your objection about PPP is applicable to a country like India, not China.

 

[FairAndUnbiased]

Aside from nuclear weapons/energy and aerospace, Russia has no meaningful independent technological capabilities to speak of, and is dependent on fossil fuel extraction for its national income. Germany is an absolute powerhouse in basically everything mechanical, from CNCs to vehicles to high performance bearings and heavy duty gas turbines, also optics and metallurgy.

This link clearly shows Austria's economic complexity index being much higher than Russia's

????? You OK? Austria?

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Is Austria particularly known for a comparable economy with Russia or something?

Australia is. Mining, farming, resources. But without ANY of the value added industries like aerospace and not even that much oil. Yet 50k+ GDP per capita.

Everything you said applies 100x more to Australia.

 

[Petrolicious88]

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Xi meeting with US investors in San Francisco. "As the guest of honor, Xi will deliver a major speech at a gala dinner co-hosted by the National Committee on US-China Relations and the US-China Business Council.

Each participant will have to pay US$2,000 to attend the event. Eight VIPs will be able to sit around a table with Xi at a cost of US$40,000 each."

Loll, are they meeting Xi or are they meeting Warren Buffett. Can't believe the government agreed to this.