Chinese Economics Thread

donjasjit

New Member
Registered Member
When we talk about the Chinese economy, what GDP growth number would be overperformance or underperformance?

Branko Milanovic has taken all growth data after 1952 and found that growth generally beings to decline after $10,000 per capita in PPP terms. China's 2023 number (5% expected growth) is far above what you'd expect given their income level.

View attachment 122283

Of course, China also gets that growth by adding lots of debt. It would be interesting to see the growth rate without that debt accumulation. I suspect it would still overperform, albeit less so obviously.
Thanks for a very interesting chart.

By the way, an article is posted below which shows that China’s export strength is increasing, not decreasing.

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sunnymaxi

Captain
Registered Member
My concern is Apple taking Chinese talent into India, because local talent is insufficient. Then China lose quality human capital to aid hostile country.
come on man. firstly China has abundance of human capital. largest talent pool in the world.

how many people Foxconn or Apple can hire from China ? 100 or 200 or 500. literally zero impact. Chinese people currently working in Chennai plant are on Managerial positions and machine operators. all assembling process done by local people.

i just don't want to spoil the thread but Local government has an eye on this .. so don't worry. if anything serious happen they will take immediate action.
 
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Umut

New Member
Registered Member
No, most developing nations have people who are too poor to afford cars. China has too many people who want to buy cars but we don't let them because it would screw up traffic (which is already a nightmare) and China's roads are already basically the best in the world. This is a population overload.
What I'm saying is this: Western countries have experienced the problems that China has experienced in the past, but they have reached the status of a developed country without decreasing their population. In order to become a developed country, it's not about reducing the population, it's about giving importance to technology and spreading it to the base. China has the resources and productivity to do this with the current population as well.

As I understand it, you are arguing that the population will eventually fall into balance and should not be interfered with. What if it doesn't happen? Can you guarantee that? What if the one-child policy has upset the balance. What if this low trend of marriage and childbearing in society continues. With the low youth population rate that will occur in the future, it will be very difficult to keep even the balance, let alone increase the population. Therefore, the most logical way is for the government to try to increase marriage and birth rates as soon as possible.
 

supersnoop

Major
Registered Member
I do believe Apple should have been banned in China long time ago but not for this. Supply Chains are not so easy to replicate that they can be easily transported to any country. How good a country is industrial development is closely related to that country's politics, culture, education level, infrastructure everything.

Apple can say they want to produce X,Y,Z component in India. But how much, what percentage? If Apple is making 100 million batteries in China and only 1 million in India, then you know this is not a serious relocation. Its just a token political gesture.

Is India even capable of producing these components efficiently, with sufficient quality if Apple did move 100% of production to India? I don't think so. So, Apple is welcome to try to move, but they will shoot them in the foot if they move too much.
Apple's own estimates are for max 25% of iPhones to be made in India by 2025, so it's not like they are making all the batteries in India in the future (just the phones made in India)

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They are always also trying to sell more iPhones (especially in India itself where Android phones are way ahead), so this larger share doesn't represent an overall volume decrease in Chinese manufacturing. This is the part that always seems to be missed.
 

manqiangrexue

Brigadier
What I'm saying is this: Western countries have experienced the problems that China has experienced in the past, but they have reached the status of a developed country without decreasing their population.
So which Western country has experienced traffic so bad that you can only drive your car 3 days a week and you have to wait 6 years to buy one at all? Can you give an example? This here shows me that China is overcrowded. Western nations are currently experiencing an issue where young people cannot afford housing and this is causing a drop in birth rate but with much lower population density, the problem is just not as severe as in China.
In order to become a developed country, it's not about reducing the population, it's about giving importance to technology and spreading it to the base. China has the resources and productivity to do this with the current population as well.
It's also not about increasing population. It's about increasing education, increasing the educated elite in STEM, which takes high per capita resources. Total population will be sorted out by the mechanisms of the ecosystem you create.
As I understand it, you are arguing that the population will eventually fall into balance and should not be interfered with.
Not necessarily that it cannot be interfered with but that adjustments have to be made by adjusting the ecosystem itself and that effect will rebalance the population to a higher or lower number. But the most critical point I am making is that maintenance or even near maintenance of the current population numbers is not crucial to China's success and population decline, up to a certain point, which we are well within, is natural in this case and can be more than outweighed by increases to the educated elite, allowing innovation to increase rather than decline with the general population.
What if it doesn't happenCan
Then we panic!! We tell Chinese people we'll all go extinct if we see a little bit of decline! We force women to have as many kids as possible!! LOLOL
you guarantee that?
Yes, I guarantee it. Every system will find a balance. I guarantee it and as a Chinese person, I bet my life and future on my guarantee.
What if the one-child policy has upset the balance. What if this low trend of marriage and childbearing in society continues.
Balances are upset and then reset all the time. If this low trend continues, then it is because the ecosystem is still calling for less. If you want more, then the ecosystem has to be changed and that will naturally cause birth to increase again. What does your what-if question ask? Continues to when, to a population that is what? Because it will continue for the time being and it will not be a problem but it cannot drag out for, say, a century, which will be a problem.
With the low youth population rate that will occur in the future, it will be very difficult to keep even the balance, let alone increase the population.
What is low? It's still basically the highest in the world. You saying that China's low population is in jeopardy sounds funny to every country other than India. What are these countries all going to do with less young people than China? All die out because they can't increase the population because they have fewer youths than China? There are currently many countries with much much fewer young people than China and they can increase the population. China can easily do it too, if the environment is right.
Therefore, the most logical way is for the government to try to increase marriage and birth rates as soon as possible.
There are already policies for that but they don't amount to the panic you seem to have about China's future dependent on the population staying the same or nearly the same as now.
 
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CMP

Senior Member
Registered Member
I suspected this guy was a problem as soon as he made one of his first posts. I advised him to talk less and read more. That advice was clearly ignored. And now he starts a ton of arguments based purely on rhetoric. Little to no facts or analysis. He goes right where he belongs now, on the ignore list.
 

Michaelsinodef

Senior Member
Registered Member
I suspected this guy was a problem as soon as he made one of his first posts. I advised him to talk less and read more. That advice was clearly ignored. And now he starts a ton of arguments based purely on rhetoric. Little to no facts or analysis. He goes right where he belongs now, on the ignore list.
Just report him.
 

Biscuits

Major
Registered Member
I suspected this guy was a problem as soon as he made one of his first posts. I advised him to talk less and read more. That advice was clearly ignored. And now he starts a ton of arguments based purely on rhetoric. Little to no facts or analysis. He goes right where he belongs now, on the ignore list.
But at least surely it's not sleepy. He would have by now not been able to resist posting an elaborate calculation using percentage of percent unit increases in growth to somehow claim US has a bigger economy than China.

And the erori guy would have been unable to contain himself from saying the funny word lol
 

CMP

Senior Member
Registered Member
But at least surely it's not sleepy. He would have by now not been able to resist posting an elaborate calculation using percentage of percent unit increases in growth to somehow claim US has a bigger economy than China.

And the erori guy would have been unable to contain himself from saying the funny word lol
Sleepy is not a person. Sleepy is an archetype. In that sense, there are many Sleepys. One for every star in the sky.
 

supercat

Major
Wow! The FT admits certain facts:

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Here is the archived version of the article:
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From the article:
Measured at PPP, the latest IMF data shows China’s GDP exceeded that in the US around the time Donald Trump was “making America great again”. It is now 22 per cent larger. The figures make sense when you look at corroborating evidence. China’s electricity generation, for example, overtook that in the US in 2010. And during the 2016-22 period when China’s economy was supposedly making no progress compared with the US, its generation grew 45 per cent, while it was broadly flat in America.
This is actually old news we already know, especially if you consider that the calculation of the US GDP includes so-called "imputations". In terms of annual electricity generation, it's 8839 TWh vs 4297 TWh, China is more than 2 times bigger. The claim that China "will never overtake the US on a nominal basis" is just coping.
 
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