The stat that I soemtimes use when talking about purchasing parity is the Big Mac Index:
According to this, the RMB is 39% undervalued compared to the USD.
Chinese Economics Thread
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According to this, the RMB is 39% undervalued compared to the USD.
I am pretty sure Chile, Venezuela, Colombia and Paraguay are undervalued comparing to USA. Yet I find China is cheaper. It is really complicated to use a single number to measure PPP.
The closer a product is to the manufacturer, the cheaper it should be.
lcloo
Captain
Having spend some time in Chongqing and XI'an, China, I actually find that the cost of food in China is very affordable. In my country just 3 years ago I can buy a meal for say $5, 3 years later the same meal now cost me $10. Yet our wages hardly keep up with inflation. I found meals in Chongqing and Xi'an much cheaper than Malaysia, and I was there spending as a tourist.
The low inflation in China means even if you have a "low growth rate" of 4%, you will still enjoy a good afforable lives. However, given cash subsidies to encourage spendings is only good in short term and not effective to stimulate the overall economy.
China's medical and education expenses are way too expensive. As a socialist country China should do better in subsiding these. Free medical expenses in government hospitals and free educations can help many citizens in saving their monthly incomes and also encourage them to spend more on other consumables. This is way better than giving out cash.
Also the government should take the opportunity to implement public housing with affordable rentals similar to Singapore. And I do agree that let those housing developers go with slow pace of bankcruptcies to lessen disruption in economies and employments.
The low inflation in China means even if you have a "low growth rate" of 4%, you will still enjoy a good afforable lives. However, given cash subsidies to encourage spendings is only good in short term and not effective to stimulate the overall economy.
China's medical and education expenses are way too expensive. As a socialist country China should do better in subsiding these. Free medical expenses in government hospitals and free educations can help many citizens in saving their monthly incomes and also encourage them to spend more on other consumables. This is way better than giving out cash.
Also the government should take the opportunity to implement public housing with affordable rentals similar to Singapore. And I do agree that let those housing developers go with slow pace of bankcruptcies to lessen disruption in economies and employments.
I wonder what else is coming after this. This so far is pretty mild, looks like just a couple of hundred million in import
I kind of like this metric it's like a weird measurement of energy, agri and real-estate costs.
But I would bet the big Mac index is a bit skewed cheaper in asia given the competition from street food stalls and hole in the wall food shops.
It's just a gentle warning to BTFO. Knowing the tards targeted by the anti-dumping probe though, I expect them to escalate.
Isn't that because you are a foreigner and don't have insurance in China?
's foreign trade recorded a new high in April, with trade with traditional and new emerging markets such as the EU, the US, and Belt and Road Initiative (BRI) partner countries all showing a growth trajectory, according to China's Ministry of Commerce..
China's trade with traditional markets reversed from decline to growth in April. Exports to EU and US jumped 3.3% and 6.2%. Regarding emerging markets, trade with members of ASEAN and BRI partner countries grew by 14.4% and 9%, respectively, surpassing the overall average..
China's trade with traditional markets reversed from decline to growth in April. Exports to EU and US jumped 3.3% and 6.2%. Regarding emerging markets, trade with members of ASEAN and BRI partner countries grew by 14.4% and 9%, respectively, surpassing the overall average..
lcloo
Captain
No, not me, I didn't see any doctor. Tales from Mainland Chinese.
supercat
Major
The answer is, it probably doesn't matter. Here is David P. Goldman's take.