Chinese Economics Thread

[Michael90]

There were some interesting discussion from the Guanqi gang on the Houthis targeting of commercial ships in the red sea. They claimed the US doesn't actually want to stop the Houthis cause they actually harm China more. The west use the Houthis' actions to justify a blanket increase in insurance rates which ultimately damage Chinese businesses. I think there are some elements of truth to this.

If that was the case, then China would have put pressure on Iran and its Houthi proxies to stop those attacks no?

 

[Michael90]

smartest thing they've done in the past year is to allow visa free travel for a whole bunch of countries

Yeah mostly countries in European and East Asian countries. Giving same access to poorer developing/underdeveloped countries will not be a good idea, good reason Chinese leaders didn't involve those poor countries.

 

[Jiang ZeminFanboy]

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This btw is what happens when China doesn’t react to American sanctions. Everyone that thinks china is hurting certain local industry will put tariffs on China for that industry under the pretense of over capacity

The grifter who started the narrative still happily posts his 3 tweets daily quota from Beijing for the last 15 years about overcapacity. Yes, I am talking about you Pettis.

https://twitter.com/i/web/status/1797472890159575394

 

[_killuminati_]

And to think this all started a decade ago when Obama was embarrassed by a Chinese crane...

And so after a decade now they've managed to come up with tariffs, but still no cranes....

A peculiar observation pointed out in the yt comments

 

[tphuang]

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one interesting aspect to buildout of Chinese data center is just how many of them are located in remote areas where renewable power is abundant and expanding. Like in this case, 13 new data center worth 61.3B RMB is signed for Inner Mongolia.

 

[dingyibvs]

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one interesting aspect to buildout of Chinese data center is just how many of them are located in remote areas where renewable power is abundant and expanding. Like in this case, 13 new data center worth 61.3B RMB is signed for Inner Mongolia.

That's the way to go. It's a lot easier to build out data transmission than power transmission.

 

[Randomuser]

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BEIJING, July 1 (Reuters) - China Construction Bank Corp (CCB)

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, the nation's second-largest commercial bank by assets, has asked employees at its headquarters to take a pay cut of at least 10%, two sources with knowledge of the matter said on Monday.
Higher-ranking officials will take a steeper cut in salaries, one of the sources said. Both sources declined to be named as the information is confidential.
Salary cuts at most of CCB's subsidiaries have been deeper than those taken by the staff at its headquarters, however, some of its better-performing businesses have restricted the pay cut to a single-digit percentage, the source said.
CCB did not immediately reply to a Reuters request for comments.
The belt-tightening at CCB underscores the challenges Chinese financial firms are facing in a slowing economy. Chinese banks are under rising

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as they are nudged to provide cheaper loans to stimulate the faltering economy, while loan demand remains weak.
China has also pushed ahead with its "

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" drive, with the nation's top graft-busting watchdog vowing to eliminate ideas of a Western-style "financial elite".
That has spurred many financial firms, both state-owned and private sector, to take measures such as cutting salaries and bonuses, and asking staff not to wear expensive clothes and watches to work.
Bank of China Ltd (601988.SS), opens new tab launched a countrywide exercise to reduce the salary gaps among its employees and mid- and high-level managers, Reuters reported in August 2023.



Is the rumor true ? or a new scam by Reuter?

This is another one of those China in isolation tactics the west does a lot. Like they say something bad about China and make it look like only China has it.

In this case banking is kinda in the crapper at the moment. Banks like Goldman Sachs or Morgan Stanley just flat out laid off staff this year. And there will be more to come later this year with firms like JP Morgan.

Now why didn't they provide that benchmark for comparison? Or add it in context? Because suddenly taking a pay cut seems a lot better than being laid off.

This is what they do all the time. Just like with low birthrates which seems to be a thing in a majority of countries now.

 

[FriedRiceNSpice]

This is another one of those China in isolation tactics the west does a lot. Like they say something bad about China and make it look like only China has it.

In this case banking is kinda in the crapper at the moment. Banks like Goldman Sachs or Morgan Stanley just flat out laid off staff this year. And there will be more to come later this year with firms like JP Morgan.

Now why didn't they provide that benchmark for comparison? Or add it in context? Because suddenly taking a pay cut seems a lot better than being laid off.

This is what they do all the time. Just like with low birthrates which seems to be a thing in a majority of countries now.

Western banks can also just cut back on bonuses, which are just de facto pay cuts.

 

[tphuang]

https://twitter.com/i/web/status/1809886842784809347

Cheap Chinese smart phones have taken hold of many global markets, while medium priced phone sales have gone down. Likely, Xiaomi & Transsion replacing Samsung

 

[curiouscat]

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IMO this is a critical priority reform for China. The current interprovincial trade barriers severely weaken China’s internal market and economy. I’m not sure if they’ll be able to get this reform through since there’s a lot of resistance from existing interests.