Your citation is nearly 20 years old at this point but it’s largely immaterial to my point that on the expensive intensive margin, US healthcare is “better”. You effectively concede the point actually since the U.S. comparison group isn’t a global panel but is one of other wealthy countries
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Does anyone here know why FAI was revised in 2023?
Or maybe the RMB is misused by China. Maybe that explains why the RMB is 15-20% undervalued? Maybe it´s not some smart secret move to sell more plastic toys to Western countries? Another explanation is that the value of RMB reflect the fact that China is a third world country and poorer than Mexico, Saint Lucia, Turkey, Argentina, Malaysia, Russia, Kazakhstan, and Turkmenistan. Argentina and Turkey are in economic crisis. Mexico is a crime-stricken third world country. Russia is at war and Kazakhstan and Turkmenistan are "stans" part of Central Asia. You think about that. China is as of 2024 poorer than Mexico.
I actually pointed out that China is in terms of technology is to some degree a developed country but so is Russia - a country forever trapped in the "middle-income trap" and perpetual poverty and corruption. When it come to the United States I hold little hope. I really hope that China has loftier goals than become another United States.
China GDP PPP $35 trillion 2024
US GDP PPP $27.8 trillion 2024
Now, china has a lot of dollar reserves that it hasn't figured out what to do. Around $3.3 trillion and equally more in shadow reserves.
As long as china remains an export driven country, china will not internationalize the yuan and and make it a standard. China and china cannot develop a robust financial system (although socialist policies is opposed to a US style financial model). In doing so, China will lose its command over the currency where it can undervalue/overvalue depending on the circumstances. Xi Jinping recognizes the problem. This is why he wants to transition china towards a consumption driven economic model. If the transition is successful, China can move towards yuan internationalization which will make the yuan appreciate.
Finally, I forgot to mention the role of technology in 21st century economic race. As long as China keeps on innovating with cutting edge technology, china can leverage the technology with the demand for yuan, which will also make yuan appreciate
In conclusion, China is keeping a right balance right now in how it's handling the yuan since exports remain a key engine of economic growth. China wants to flood the world with its EVs and later legacy chips and advanced semiconductors. So I don't see yuan getting internationalized anytime soon. A BRICS gold backed currency would work fine to bypass the dollar in the short to medium term.
US GDP PPP $27.8 trillion 2024
Now, china has a lot of dollar reserves that it hasn't figured out what to do. Around $3.3 trillion and equally more in shadow reserves.
As long as china remains an export driven country, china will not internationalize the yuan and and make it a standard. China and china cannot develop a robust financial system (although socialist policies is opposed to a US style financial model). In doing so, China will lose its command over the currency where it can undervalue/overvalue depending on the circumstances. Xi Jinping recognizes the problem. This is why he wants to transition china towards a consumption driven economic model. If the transition is successful, China can move towards yuan internationalization which will make the yuan appreciate.
Finally, I forgot to mention the role of technology in 21st century economic race. As long as China keeps on innovating with cutting edge technology, china can leverage the technology with the demand for yuan, which will also make yuan appreciate
In conclusion, China is keeping a right balance right now in how it's handling the yuan since exports remain a key engine of economic growth. China wants to flood the world with its EVs and later legacy chips and advanced semiconductors. So I don't see yuan getting internationalized anytime soon. A BRICS gold backed currency would work fine to bypass the dollar in the short to medium term.
Turkey and Argentina had lower GDP per capita than China last year and grew 30% nominally due to 60%+ inflation.
The United States has many rough cities and neglected areas. Western European countries and in particular Nordic countries do not allow their cities to fall like the United States and to some extent Canada. However, the poor infrastructure, homelessness, drug abuse, crime and aesthetically declining cities in the U.S. stem from poor policy. It do not stem from systemic poverty.
In 2023 the life expectancy was 78.79 in China and 79.74 in the United States.
The reason for the sharp drop in life expectancy came from poor American Covid-19 policy.
So bascially, China has gone from leading the U.S. with a 15% larger GDP (PPP) to a 20% larger GDP (PPP).
This is a great post! I´m not saying that China is not improving. I´m just saying that China´s GDP (nominal) per capita is falling behind other high-level developing countries.
I have to ask you. What is the latest numbers of the China´s GDP (PPP) per capita ?
Your data is inaccurate. The data it claims to source is a projection. There is more accurate measured data from US CDC and the World Bank.
US CDC puts the life expectancy at 77.5.
World Bank has US at lower life expectancy than China as well. Thats 2 consistent data sets that agree with me and disagree with you.
If people died to COVID then they're still dead. Failure to manage COVID is still a failure.
But to address that we can look at 65 year survivorship rates. If US life expectancy decline is only due to COVID killing old people then the US cohort survival rate to 65 years should be high.
Yet that is not what the data says. China is higher than the US on those too.
China still has a long way to go. You're right about that. However, the data at the beginning of your post shows that China's GDP more than doubled in 10 years. Last year, China's GDP grew by 5.2% and it is expected to grow by around 5% this year. At this rate, it should double in another 14 years. What makes you say that China has already failed given that it is still growing at a more than reasonable pace?
In the last three years, China's GDP per capita in US dollar terms has indeed stagnated, but given China's increasing technological sophistication would it not be better to measure China's progress using the Chinese yuan? An increasing percentage of China's commodity imports are purchased using the Chinese yuan. The only industries that China lags behind the West in are semiconductors and jet engines, but they're rapidly catching up. China is drastically reducing its dependence on the US dollar and it seems to be doing fine, so would it not be wiser to assess China's progress through the lens of the Chinese Yuan?
AssassinsMace
Lieutenant General
The West likes to waste their time over nonsense. It doesn't matter who wanted to decouple first. They declared that they wanted it. The right of the West have been calling for breaking off with China (aka decoupling) as long as when Nixon went to China. Yeah the West never wanted to decouple with China. They wanted to enslave China. Decoupling now is an admission they will never take over China like they wish. Decoupling is their last measure to make themselves think they're the ones in control. The Republicans are the original sinners when it comes to political correctness. I can remember when you couldn't dare say anything negative about the US. Don't call it what it is and it isn't it. Just because they put a name to it, it's something new? They wanted to protect their own ears from hearing things they don't want to hear that's as plain as day because they're too sensitive to hear the truth. That's political correctness. Look at how Republicans are trying to spin slavery out to be a good thing that happened.
It is the West where something gets up in their craw... The itch they can't scratch that someone does anything without their permission that drives them into eventually madness. Look at how the US was upset that China conducted a space walk from its own space station without their permission. China just existing upsets them because China shows there's an alternative and not how their way is the only way. Americans talk about freedom like it's their being but they're only talking about their freedom not anyone else's. Hear they go again trying to redefine words making themselves the embodiment of them like freedom when they want to deny them to everyone else. There was something I read recently in this forum where the US State Department stated that eliminating China's ability to defend itself was a part of the US's mission on freedom. A part of how the US sees freedom is eliminating everyone else's. You're a threat to their freedom if you try to deny them from killing you. That's what they're saying.
The West likes to play these words games. Why? Just so they they can claim like a child they didn't start it? Writing an entire article just to spin how the US and the West didn't start with decoupling... China did!!! They can go right on back to decoupling and not de-risking if they want to. The fact is just as they're obsessed with the meaning of words, it is they that regret their choice of them. They're the ones going through this song and dance routine. If they were in control like they think, they wouldn't have to worry how their words comes across. It's like their spin they're going through over the Red Sea attacks. They say China better do something about it because it'll affect their business if the Chinese don't. No, it'll primarily affect European/Western business. They don't even mention that part. Or how about this whole fiasco is a result of their foreign policy? See how much they will outright lie to get what they want...?