Chinese Economics Thread

supercat

Major
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The problem with this kind of articles is that the authors ignore the fact that China is a developing country, and will have faster growth rate until it becomes a developed nation, by that time its GDP will be several times bigger than America's. Also, China does not follow the diktat of the US, the IMF, and the World Bank, so China will avoid the middle income trap.

It is really an exceptional country that was founded on the ideals of human equality, and, as Antony Blinken said, although it often is imperfect, it tries to improve itself and strive to be good. That is why so many countries from Europe to Japan consent to live under U.S. domination - because they know that, the U.S. is a benevolent power that will not try to hold down their peoples just for wanting a better life.
Some would argue that the US is so exceptional, it's even more exceptional than the British empire.

U.S. Empire Named Most Murderous Killing Machine In History​

New study finds U.S. responsible for nearly 300 million deaths—and counting

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British empire killed 165 million Indians in 40 years: How colonialism inspired fascism​

A scholarly study found that British colonialism caused approximately 165 million deaths in India from 1880 to 1920, while stealing trillions of dollars of wealth. The global capitalist system was founded on European imperial genocides, which inspired Adolf Hitler and led to fascism.
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Under US' benevolent hegemony, millions Russia men died prematurely until Putin's election; the per capita GDP of EU shrink from more than 90% of America's to about 65% currently; and Japan's economy has stagnated for almost 40 years after the Plaza Accord.

China's power consumption in October is the highest ever for the month.
 

Arij Javaid

Junior Member
Registered Member
Nominal GDP is a useless metric for China as China's output is measured by PPP. The value of US dollar fluctuating doesn't have a profound impact on Chinese economy as China runs a massive trade surplus which means that China accumulates dollars. If China decides to pump half of its surplus dollars annually in the market to boost yuan, its nominal GDP can reach much closer to the US but an overvalued yuan would tank Chinese exports. I don't know why most economists and people on this thread too give nominal GDP so much importance. US dollar's relevance is slowly declining around the world so it would be an even more useless statistic in the coming years.

For a country like India, Nominal GDP is a much more accurate way of scaling their economy because India doesn't have local manufacturing unlike China. All of its high tech products and machinery is imported and India doesn't run a massive trade surplus either. PPP is better for the country that has large scale local manufacturing because its output is not defined by US dollar exchange rate.


I think I've said enough and people should stop giving nominal GDP relevance.
 

Arij Javaid

Junior Member
Registered Member
China's GDP % of US economy has declined to 64% this year. Down from 78% in 2021. This is due to overvaluation of US dollar due to interest rate hikes.

Its nominal data as well unadjusted for inflation.

I expect China's yuan to increase in value against US dollar in latter half of 2024. If China sees an inflation rate of 2%, then that would help too.
 

DavidChou

New Member
Registered Member
...Then read this:

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I'm not sure what the point of that second tweet is...is actually suggesting that China would have trouble paying in USD??? Sorry but not sure how to parse that tweet in the context of ehat sounds like a great plan for China to de-risk itself from America!!
 

Maikeru

Captain
Registered Member
I'm not sure what the point of that second tweet is...is actually suggesting that China would have trouble paying in USD??? Sorry but not sure how to parse that tweet in the context of ehat sounds like a great plan for China to de-risk itself from America!!
Did you read the whole thread?
 

bebops

Junior Member
Registered Member
China's GDP % of US economy has declined to 64% this year. Down from 78% in 2021. This is due to overvaluation of US dollar due to interest rate hikes.

Its nominal data as well unadjusted for inflation.

I expect China's yuan to increase in value against US dollar in latter half of 2024. If China sees an inflation rate of 2%, then that would help too.
GDP is the sum of all income earned. U.S basically increased the minimum wage and all other incomes. By doing that, Lifestyle in America is expensive whereas it is cheap if you bring your USD to elsewhere.

You get a better purchasing power in even Europe with your USD than America. It is a global thing.
 

KYli

Brigadier
US has become much more noncompetitive over the years due to both rising inflation rate especially labor costs and stronger dollars. That's why I don't buy the theory that the inflation has been tamed. As the US would increasingly rely upon tariffs and protectionism to protect its industries, prices would rise and labor costs would increase.
 
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