Chinese Economics Thread

[zbb]

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To celebrate Tesla’s US$788 billion market cap in comparison to BYD’s $93 billion is to confuse incentives with outcomes. Both companies receive generous tax breaks and other government goodies. That Tesla is far more profitable than BYD while EVs have far less market penetration in the US is evidence of policy failure, not Elon Musk’s brilliance. Tesla pocketed the incentives while BYD (and competitors) delivered outcomes.

Similarly, America’s First Solar recently became the most valuable photovoltaic company as cutthroat competition in China destroyed margins. First Solar’s superior valuation in a tariff-protected market should not be grounds for celebration.

Despite hand-wringing by The Economist, the fact that China’s photovoltaic companies are slaughtering each other by flooding the world with cheap solar panels is prima facie evidence of stunning policy success and value creation.

To be unable to comprehend this crucial point is to never have properly understood Adam Smith. “The Wealth of Nations” was never about the pursuit of profits.

The entire point of enlightened self-interest was supposed to be the secondary/tertiary effects that improve outcomes for all.

 

[FairAndUnbiased]

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T s(ocialist) ; d r

 

[supercat]

It seems that the number of inbound tourists from Europe exceeded pre-COVID-19 level.

Flight bookings from Europe to China surged 663 percent last year from the previous one and 29 percent from 2019, according to data from Chinese online travel agency Trip.Com. The United Kingdom and Germany ranked in the top 10 departure points, while Shanghai, Beijing, Guangzhou, and Shenzhen were the most popular destinations.

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In the first half of 2024, vehicle sales increased 6.1% year-over-year to 14.047 million. NEV penetration rate was 35.2%.

https://twitter.com/i/web/status/1810923444244205862

 

[gelgoog]

 

[PikeCowboy]

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I have to re-iterate this for all the people who complain that Chinese manufacturers "cabbagize" everything from photo-votiacs to generators and turbines. The primary benefit should be in the build up of renewable energy across the country to improve quality of life and the enviroment. The point is not to build big photo-voltaic companies.

 

[Dolcevita]

China is doing just fine.​

​

China’s exports jump 8.6% in June, surpassing expectations​

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By

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11:26AM Fri July 12, 2024

12th July 2024 – (Beijing) China’s export performance has significantly bolstered its economic growth in the first half of the year, despite facing a backdrop of rising geopolitical tensions that may pose challenges ahead. Official data released on Friday showed a robust 6.1 per cent year-on-year growth in total goods imports and exports in yuan terms for the first half of the year.

In June alone, exports surged by 8.6 per cent year-on-year to reach US$307.85 billion, surpassing expectations. Analysts had anticipated a rise of 7.44 percent, based on forecasts from Chinese financial data provider Wind. This growth marked an acceleration from the 7.6 per cent increase recorded in May, indicating a strong upward momentum in China’s trade activities.

However, the picture was less positive on the import front, where there was a decline of 2.3 percent compared to the same period last year. This drop in imports contrasted with the 1.8 per cent growth observed in May, suggesting a shift in domestic demand dynamics and possibly reflecting broader economic uncertainties.

The robust export figures contributed to a substantial increase in China’s trade surplus, which stood at US$99.05 billion in June, up from US$82.6 billion in the previous month. This significant surplus underscores the current strength of China’s export sector, which has been a critical pillar of the country’s economic resilience.

 

[didklmyself]

Are European and American exports to ASEAN declining?
If not how is China able to accumulate 10%+ growth with ASEAN?

 

[Hitomi]

Are European and American exports to ASEAN declining?
If not how is China able to accumulate 10%+ growth with ASEAN?

The demand from ASEAN is growing overall.

Chinese companies are exporting subcomponents for assembly in ASEAN countries to bypass tariffs.

The cost of American and European products have become staggering with insane lead times for certain parts. (The lead time part is anecdotal based on where I work though)

The image and attractiveness of Chinese products have improved overall.

 

[SanWenYu]

China railways have moved almost 2.1 billion passengers in the first half of 2024, 18.4% more YoY, a new historic high.

Yeah sure the economy must be in big trouble for Chinese to have to travel this much.

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据中国国家铁路集团有限公司（下称国铁集团）提供给观察者网的数据，今年上半年，全国铁路累计发送旅客20.96亿人次，旅客周转量完成7779.52亿人公里，同比分别增长18.4%、14.1%，均创历史同期新高。目前，我国铁路旅客发送量和周转量等指标稳居世界首位。

 

[ismellcopium]

T s(ocialist) ; d r

+10 Fico