Chinese Economics Thread

Wrought

Wrought

Captain
Registered Member
Quick piece on successful industrial policy outcomes as surfaced in the trade data (both exports and imports).

A defining feature of China's recent trade performance is the broad-based nature of its export expansion. As shown in the left panel of Figure 1, China has gained global export market share in nearly all manufacturing sectors over the past decade. These gains span low-value-added consumer goods, such as apparel and textiles, as well as advanced products including automobiles. The expansion in advanced sectors is consistent with broader evidence of rising research and development intensity and innovation capacity in China, as documented in
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. Therefore, contrary to the common view that China would move up the value chain as it gradually exhausted its pool of low-cost labor, it has expanded into higher-value sectors without ceding market share in lower-value industries.

As such, industrial policy does not automatically lead to higher exports or improved trade balances; its effectiveness depends on design, implementation, and market conditions. A notable feature of Chinese industrial policies is their emphasis on domestic competition and export competitiveness. Rather than promoting a few national champions, these policies incentivize a wide set of firms to pursue national priorities, fostering fierce competition that encourages innovation while enhancing exporters' global competitiveness.
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SanWenYu

Major
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According to the Indian government's own data, the trade deficit with China will be more than 100 billion USD for the current fiscal year ending soon on March 31. Since Modi became the PM of the country in 2014, India's annual trade deficit with China has more than doubled.

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据印度商工部数据估算，印度本财年（自去年4月1日起至3月31日）对中国的贸易逆差将首次超过1000亿美元。自2014年莫迪担任印度总理以来，印度对华逆差已翻了一倍多。
 
tphuang

tphuang

General
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Yuan bond issuance by foreign borrowers has surged in mainland China this month, eclipsing the momentum of such fundraising offshore and highlighting the appeal of a vast local market less affected by the Iran war.
So-called panda bonds issued by overseas entities in China’s onshore market have more than tripled on year to 27.8 billion yuan ($4 billion) in March, set for a record for the month, data compiled by Bloomberg show.
The sales boom contrasts with the much slower growth seen in the larger offshore yuan debt market, where issuance plans have been
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worldwide since the Middle East conflict began. The divergence is a reminder of the Chinese onshore bond market’s relative immunity at times of external uncertainties, when overseas financing using the country’s currency is heavily influenced by global conditions.
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Panda bond popularity is increasing.

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Hong Kong's future is likely on the way up as China's financial market profile rises and as money start to leave Middle East.
 
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