Biggest cost has always been housing and Xi has and is continue to manage that.
Significant yearly decline of sale prices + yearly increase of wages, will provide plenty of consumption opportunities for the general public
Chinese Economics Thread
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Significant yearly decline of sale prices + yearly increase of wages, will provide plenty of consumption opportunities for the general public
FriedRiceNSpice
Major
As factory of world, China produces things using labor and resources in exchange for US dollars, most of which go into the hands of a very small minority of the population which then park the dollars in the Anglo-American financial system, generating more dollars for the Anglo-American financial capitalist class. Don't you think the Chinese people deserve an increased share of this wealth?
This is a complex economic problem. You can't have strict labor law regulations, high employment rates, and high wage levels at the same time.
Measures to rob the rich and help the poor are necessary, but it must be done slowly, especially considering that the rich can flee to Western countries with assets and technology
Because of the employment rate.
Labor rights in some developed countries are rising year by year, but the labor group is gradually shrinking. Adjusting from a macro level is a very complex operation that requires gradual progress and a high degree of caution
"Racing to the bottom" is just geopolitical term against competition. It is neo-liberal BS.
Competition is what provides the Chinese consumer with all his needs without the state depleting its resources as a welfare state.
"China has introduced legal measures to halt businesses’ race to the bottom, as it continues to crack down on price-cutting practices that are hurting the economy.
The country’s top legislative body on June 27 passed amendments to a law against “unfair competition”, including one that prohibits platform operators from compelling their vendors to sell items at below cost price."
The country’s top legislative body on June 27 passed amendments to a law against “unfair competition”, including one that prohibits platform operators from compelling their vendors to sell items at below cost price."
Yes, "platform operators from compelling their vendors to sell items at below cost price." That's commerce platforms forcing producers to sell below cost. That should be regulated.
If producers build products that sell at a razor thin margin and survive then that is good for competition and the economy. If vending platforms forces producers to sell at a loss then that is not good for the economy and the government should stop it.
The "race to the bottom" phase that is coming from the West is highly entangled with the "overcapacity" narrative. Don't fall for it.
supercat
Colonel
In July, vehicle sales jumped 14.7% to 2.593 million units (an annualized rate of 31 million) YoY, while NEV sales expanded 27.4% to 1.262 million units, a penetration rate of more than 48%. From January to July, NEV sales soared 38.5% YoY.
Professor Sun Zhongwei from South China Normal University has remarked:
"At its peak, around 2008–2009 (just before and after the global financial crisis), China’s manufacturing sector employed about 200 million people. By 2015–2016, that number had dropped to around 150 million. Now, we’re down to about 120 or even 100 million. So, over the past decade, about 70 to 80 million people have left manufacturing. Where did they go? Mainly into the service sector."
Presently there is quite a lot of unemployment, especially among the young people. For the services to expand further on the people need more money. Likely the industrial sector is strong enough to sustain further increases in wages.
Wage increases? When there are high employment? Hell no, that is a chance to lower wage further. Basic demand and supply. That's how a business will think.