This is very interesting. While the United Sanctions of America closes commercially, China opens commercially.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Not really, just another example of the well-established pattern.
The dominant economy favors free trade, while the lagging economy favors protectionism. The US was heavily protectionist during the 1800s, for example, when the British were dominant. After WWII, the US became dominant and so obviously pushed for free trade, until recently. Likewise, China was heavily protectionist during much of the same period, until recently. Everyone always acts in their own self-interest.
either Chinese market is panicking or foreign money is really bull on China
GDP (PPP) per capita currently at US$26k.
GDP (PPP) per capita currently at US$26k.
GDP can be calculated with perfect accuracy and still not reflect the reality on the ground. It just means that GDP is not the magical measurement of everything important which many people like to treat it as. A national economy is far too complex to be distilled down to a single "power level" but that doesn't stop smoothbrains from trying.
China's gdp is nerfed because they don't have much ultra rich.
GDP (PPP) per capita currently at US$26k.
As a person gets richer, they become more useful to society, but the relationship between increased wealth and usefulness is logarithmic. Furthermore, a person with networth of many billions do in reality not have that much money. The vast majority of their money is in majority shares in fluctuating assets, which if they tried to take out the money would result in the asset prices dropping like a rock.
The actual metric that judges "economic power" (what a population is capable of achieving economically) is median income normalised for inflation * the population size. China's median income is $46200, while US' is $60700.
Because median income takers are more reflective of people who contribute to society (as a group) than the ultra rich, this stat pretty much explains why China has about 3-5 times the productivity, wealth and innovation of US in most sectors. US actually has a scientific output that outstrips their expected level by a lot, which can be chalked up to having an advantage in international fame.
Apple sales in China are down quite a bit in Q4 vs last year.