Chinese Economics Thread

Wrought

Wrought

Junior Member
Registered Member
Over the past five years, EU-China linkages continued to grow as US-China ones shrank.

Despite efforts by the Biden administration to convince the European Union to wean itself off Chinese imports, the opposite is happening. Europe has grown more dependent on China in recent years as the United States has become less so. This increasing divergence in US and European economic interests may make it harder for them to agree in the future on national security and technology policies involving Chinese imports. Washington and Brussels encountered such difficulties previously over the US push to block sales of Huawei products and Chinese 5G systems in Europe on national security grounds. Similar clashes could lie ahead if recent import concentration trends continue.
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G

gelgoog

Lieutenant General
Registered Member
Enestori said:
The guy who produced those charts got it completely wrong on the biggest economic story of the decade: inflation. Here are some gems.
...
At this point, inflation was 7.5% and he was STILL saying it was a “supply constraints in a handful of sectors” and to "keep watching motor vehicles(!)"

You cannot get more wrong than this. No, inflation was not about motor vehicles. No, it was not "a handful of sectors." It was systemic and it was getting worse and it lasted for all of Biden's presidency.
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The inflation was due to the incessant money printing the US committed to towards and after the COVID period. As usual, the inflation only shows up a couple years after the money was issued, as the money percolates down the system.
 
proelite

proelite

Junior Member
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So the 500 billion USD that Chinese firms have parked overseas is most likely the low end estimate. The total amount might be as high as 2 trillion.

Even 7 trillion yuan back into the Chinese economy is a huge bazooka. Best of all it's one without moral hazards. No wonder the central government isn't make big moves.

Yuan will depreciate but the government can buy few hundred billion usds to counteract it.
 
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