very worrying development for China. But it looks like tax revenue is stabilizing while land sale and non-tax revenue (are SOE revenues included here?) are dropping, a sign of the economy not doing too hot.
Chinese Economics Thread
- Thread starter Norfolk
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I wouldn't put too much stock behind anything Rhodium Group puts out, since they claimed China's GDP growth for 2024 was actually 2.4% (by basically cherry picking data series that looked bad and ignoring data series which looked good). Non-tax revenue actually increased in 2024 rather substantially, by 25%, so I don't know where they got the data which shows a drop:
Ultimately the main issue with China's fiscal revenue is that local governments are cash strapped while the central government collects a disproportionately large amount of the revenue compared to their expenditure, rebalancing this is the more pressing issue (which was already a topic of discussion during the third plenum last year).
Ultimately the main issue with China's fiscal revenue is that local governments are cash strapped while the central government collects a disproportionately large amount of the revenue compared to their expenditure, rebalancing this is the more pressing issue (which was already a topic of discussion during the third plenum last year).
Where did you get those figures please?
Long had my doubts about RHG, a real outlier in their field.
I think the danger to this is that the US perceives China in a certain way and it may not truly appreciate the underlying factors to China's success, and it certainly is in no position to completely adopt the "China model".
"protectionism, constraints on foreign investment" are categorically NOT a part of the China model, the US is learning the wrong lesson here if what the article says is true. ironically the US spent so much time slandering China that it has fallen for its own lies, and now they could be punished for it.
"Nationalist objectives"? Why use "nationalist" adjectiv tho? Isnt it more pf national sec, towards for energy self reliance thing? Shouldnt really affect other countries much really. (Unlike the chip export ban policies or the fees for CN built ships?)
Accdg to google: nationalist mean "a person who strongly identifies with their own nation and supports its interests, especially to the or of the interests of other nations."
They categorically are, and Beijing makes no secret of it. Such measures are gradually removed as domestic industries mature.
And the US is simply relearning its own lesson here. The lesson that the optimal model for leaders and laggards is different.