Chinese Economics Thread

mossen

mossen

Junior Member
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It's not that productivity growth is unimportant - it's in fact central to progress - just that TFP is a very poor measure. It was created in the 1950s when all we had was either farms or factories. It is not updated to the modern world.

I prefer to look at labour productivity instead, and China is still seeing fast rises since labour growth is either zero or even negative, that means that all GDP growth has to come from productivity gains in labour by default now that the infra boom has ended.

I've long noted that China's industrial prowess is fantastic. It's really the service sector it needs to pay closer attention to. However a comparably weak service sector seems to be a recurring theme among East Asian economies (you see the same thing in Japan, Korea, Taiwan etc). Perhaps it won't matter too much.
 
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didklmyself

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Mexico isn't even a proper nation. The government runs half the country while the other half is run by Bandidos. Anyone who thinks that this broken country can replace or compete with China in anything should be ignored. They haven't got the tech to transition from ICE to EV, they will backtrack on their threats when they start realizing their own incompetence.
 
FriedRiceNSpice

FriedRiceNSpice

Captain
CMP said:
They're certainly not going to be producing more if their tariffs make it inadequately profitable for china to build EVs there.
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Proper tariffs would incentive Chinese automakers to do more of the manufacturing in Mexico. If Mexico wants to boost their manufacturing, then the smart thing to do would be to put tariffs on finished products and don't tariff the intermediate goods required to assemble those products. Over time, Mexico can then try to manufacture a subset of the less complex intermediate goods themselves, and import only the more complex and generally more profitable/higher value add parts from China. Result is sustainable win-win trade relationship for both countries.
 
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didklmyself

Junior Member
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FriedRiceNSpice said:
Proper tariffs would incentive Chinese automakers to do more of the manufacturing in Mexico. If Mexico wants to boost their manufacturing, then the smart thing to do would be to put tariffs on finished products and don't tariff the intermediate goods required to assemble those products. Over time, Mexico can then try to manufacture a subset of the less complex intermediate goods themselves, and import only the more complex and generally more profitable/higher value add parts from China. Result is sustainable win-win trade relationship for both countries.
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The problem that Mexico will face is that their primary exports would be to the US. If the US decides that Chinese companies and components will not be allowed to enter the US market(They are already moving in this direction), then Mexico will have no other option but to stop Chinese expansion and hence result in a laggard automobile sector.
 
I

Index

Junior Member
Registered Member
didklmyself said:
The problem that Mexico will face is that their primary exports would be to the US. If the US decides that Chinese companies and components will not be allowed to enter the US market(They are already moving in this direction), then Mexico will have no other option but to stop Chinese expansion and hence result in a laggard automobile sector.
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Mexico is too close to the US to be an useful direct ally, they're better served being a trojan horse for cartels and drugs to economically ruin America.

America did a huge mistake outsourcing shipbuilding to Japan and SK, countries that would be bombed to oblivion in a war. China would be stupid to do the same mistake but with Mexico. Mexico isn't defendable.

Just keep full sending opiates and as I suspect is already happening, infiltrate triads with MSS assets. Triads can then be used for plausible deniability in strengthening the cartels.

American irrational hatred of Mexicans is a very exploitable weakness. Mexicans fleeing poor conditions in Mexico will not be properly integrated, they'll cause violence, crime and ruined neighborhoods.
 
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