Chinese Economics Thread

[henrik]

https://twitter.com/i/web/status/2037442072505188809

The Chinese navy should be escorting the Chinese commercial fleet.

 

[henrik]

One of the factors I found is that Samsung and SK Hynix exported a large number of memory from their factories in China.

We all know that memory prices have skyrocketed.

The US has imposed 200% tariffs on all Chinese products. So these are for local markets, not for the US markets.

 

[temporary1]

Is this due to the government's drive to reduce hyper-competition? or some sort of accounting gimmick? what is the cause here?

Someone would have to dig in deep into the data, but it is a fact that government has gotten deeply involved to sort out involution (so called "rat race") in various industries.

My guess would be that the profitability increases is big part due to that government effort

 

[Wrought]

Another step from India on unwinding import restrictions from 2020. Progress has been slow but steady.

NEW DELHI, March 27 (Reuters) - India authorised some state firms including Bharat Heavy Electricals

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and Steel Authority of India

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on Friday to procure critical equipment from ‌China, according to a government source and document, after easing restrictions. Reuters

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last month that India would relax restrictions on buying Chinese equipment imposed after a deadly 2020 border clash, allowing state-run power and coal companies to start limited imports as shortages and project delays mounted. India has since then also ⁠eased investment curbs on China.

Under the relaxation of the rules, India's largest state-run power equipment maker Bharat Heavy Electricals can procure 21 types of critical equipment from China, the government order said. A similar authorisation has been given to Steel Authority of India for certain critical components, and for sourcing of coal-gasification equipment by other state-run firms, a government source said.

The government order issued this month, seen ⁠by Reuters, exempts Chinese bidders participating in state contracts from registration with a government committee to obtain political and security clearances. Earlier this month, New Delhi also

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on Chinese investments in select sectors to help ease a capital squeeze, marking a significant reset of economic ties.

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[madhusudan.tim]

What you dont know is, these are limited time purchases, out of acute necessity. Once they are in better position, they will absolutely introduce curbs. China does not has any leverage whatsoever to enfore the rational behaviour.

 

[sunnymaxi]

One of the factors I found is that Samsung and SK Hynix exported a large number of memory from their factories in China.

We all know that memory prices have skyrocketed.

SK Hynix and Samsung are investing 1.5 Trillion SKW in all three Wuxi , Xian and Dalian plants to further expand the capacity.

35% of Samsung's NAND & 20% of Hynix NAND capacity is in China also 40% of Hynix's DRAM capacity is in China.

 

[PiSigma]

Another step from India on unwinding import restrictions from 2020. Progress has been slow but steady.

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Just because India now allow themselves to buy doesn't mean chinese will sell. And even if sell, it will be marked up and cash only up front in yuan, no rupees allowed.

 

[Michael90]

Just because India now allow themselves to buy doesn't mean chinese will sell. And even if sell, it will be marked up and cash only up front in yuan, no rupees allowed.

Where did you get that information? lol China is a mercantilist power. They are there for business and they sell to anyone who’s ready to pay. There’s no such conditions in normal business transactions

 

[vincent]

Another step from India on unwinding import restrictions from 2020. Progress has been slow but steady.

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Not a good thing. indians should continue to buy overpriced equipment from the West and continue to pay high maintenance costs.

A similar authorisation has been given to Steel Authority of India for certain critical components, and for sourcing of coal-gasification equipment by other state-run firms

I hope the Chinese government bans the export.

 

[PiSigma]

Where did you get that information? lol China is a mercantilist power. They are there for business and they sell to anyone who’s ready to pay. There’s no such conditions in normal business transactions

You haven't heard about all those things China refuse to sell to Japan? Merchants are the lowest classes in a confusion society for a reason. India is incompetent, so they can have a bit more, since they can't do much with it anyway. But if India crosses China, even if they beg, they will get nothing.