Chinese Economics Thread
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I really learnt to dislike Evergrande for what they have done. Apart from blowing up the real estate and stock market with their stupidity, they also have ruined Chinese football. They spent so much time buying overpriced mercs that the youth system sucks now and China will somehow lose out to Thailand qualifying for the world cup.
The founder should be publically executed for this. What a coincidence he's from Henan which is known for scammers. And they wonder why people are predjudiced against them.
The founder should be publically executed for this. What a coincidence he's from Henan which is known for scammers. And they wonder why people are predjudiced against them.
All Chinese football team and its associated people needs laogai, not even related to Evergrande.
Zheng He wasted a lot of money giving out gold and silk for free, at least you can say he earned face.
Football team waste a lot of money to embarass the country once a year.
It's not as simple as saying that some things are free so they don't factor in the GDP at all. The fact is that they do in fact factor in, they factor in as government spending. It's like Military spending, even though no one pays for it, but the government does, which is included in GDP statistics.
If a person doesn't pay for some service that is subsidized, their paycheck can now go on to something else, on the other hand the service is factored in as government spending.
GDP is by no means perfect, but it is not useless either. It's a decent first degree metric for judging the economic prowess of a nation.
GDP (nominal in current USD) is perhaps the best metric among everything discussed in this thread for judging overall economic power of a country. (in my opinion)
This not true.
Public roads only count in the GDP when they are built.
Privatized roads count when they are built, when they are privatized and every time a driver pays to go through them. They inflate the GDP in at least a factor of 3. While in reality they weaken the productive economy because they increase cost for all business.
Public doctors count in GDP only when the state pays them salary. Privatized doctors count in the GDP when you pay your medical insurance, when you pay doctors, and when the medical insurance send you back the money.
Again inflating the GDP numbers.
That is why you see economical growth in countries when neoliberals won, but they don't increase their manufacturing, standards or life or nothing in general. It is artificial. You will see it now in Argentina.
GDP nominal is indeed a totally wrong metric to judge the power of a country. And GDP purchasing power also fails, although not so much.
Of course there is some loose correlation with real power. But in many instance it simply fails.
China is more powerful than the US economically. This is without any doubt. Any aspect of the economy you check China produces several times more things than the US, so by definition they are a more powerful economy. The only doubt with China US is who is the stronger military.
With Russia is even more obvious that is economically more powerful than Germany. Germany would not be able to grow like Russia in middle of 14000 sanctions, build the Crimea bridge as fast as Russia did or keep a army like Russia.
In case of Russia the nominal GDP is specially wrong because their currency is artificially depreciated and things are very cheap there.
I mean, the nominal GDP went to the extreme of saying that Spain is almost as powerful as Russia and Italy is more powerful. That is a joke that tells you everything you need to know about nominal GDP
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"The uptick in exports is also partly due to a lower base in the same period last year, when exports declined 7.5%.
In comparison, exports grew by 1.5% in April compared to the same period last year while April imports rose by 8.4%."
Conclusion: Low growth, Balanced Export-Import Ratio
In comparison, exports grew by 1.5% in April compared to the same period last year while April imports rose by 8.4%."
Conclusion: Low growth, Balanced Export-Import Ratio
thread on the import/export breakdown
some good stuff in there from automakers and IC industry
Some analysts suspect China has been stocking up on oil and industrial commodities (iron ore, etc) in addition to gold.