Chinese Economics Thread
- Thread starter Norfolk
- Start date
If US government buys a lot of CNH in the open market, it will be no problem. Btw, right now CNH is kept artificially low because all these Chinese banks are trying to earn the extra interests in America and are not bringing their export surplus in USD.
It's not a good thing for CNY to be this cheap. China's cost advantage is like 3 to 4x in many industries. a 25% appreciation on RMB won't hurt their competitiveness all that much
supercat
Major
Forget about the "China has peaked" meme. The newest data from World Economics (not World Bank) indicates that on the PPP basis, China has pulled further ahead of the US and will grow almost 3 times faster from 2024-2030.
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AssassinsMace
Lieutenant General
The world is not suffering from China’s overcapacity. Only the West. Who else in the world manufactures? All I see are countries that think they are a better alternative than China. We’ll show that prowess yet China still wins.
What happened to how they gleefully spun deflation is worse than inflation to make it like China was in worse position than the West? Now they want China to stop making things to help their economies.
This is what decoupling does, America. They’re not even trying to hide what they’re doing. They’re admitting they’re trying to stop China from gaining anything from them while expecting China to do what they want. They’re hoping on hope white supremacy means something still. Everything is still supposed to be in their favor because they’re white. Them being white soothes the savage beast.
What happened to how they gleefully spun deflation is worse than inflation to make it like China was in worse position than the West? Now they want China to stop making things to help their economies.
This is what decoupling does, America. They’re not even trying to hide what they’re doing. They’re admitting they’re trying to stop China from gaining anything from them while expecting China to do what they want. They’re hoping on hope white supremacy means something still. Everything is still supposed to be in their favor because they’re white. Them being white soothes the savage beast.
The reason why the USD is so strong against not just the CNY but also against other global currencies is the fact that the US at the moment has the highest interest rate of all the major economies. The US has higher rates than either China, Eurozone or Japan at this time. Once the US begins easing you are going to see the USD start to weaken. And other currencies including the CNY start to gain in value.
This could be a double edged sword as the hot speculative money inflows could create and reinflate bubbles in the economy like for instance the housing market. We will see how China will deal with this.
Instead, the hot speculative money inflows could create and reinflate bubbles in the Japanese, Korean and South East Asian economy. China is much bigger to be affected by US interest rates.
Politics trumps economics anyday.
supercat
Major
Crony capitalism tramples the so-called "free market" any day.
According to the 2024 Kearney FDI Confidence Index, China is back to the top 3 as a destination for FDI, after only the US and Canada.