Chinese Economics Thread

[PanAsian]

Interesting, I did not know e-cigs are a Chinese invention.

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Lifestyle | Tue Jun 9, 2015 12:46pm EDT Related: HEALTH, CHINA
E-cigs a 'consumer-driven' revolution born from a bad dream
LONDON | BY MARTINNE GELLER

Before Hon Lik invented the e-cigarette, a device now shaking up the Big Tobacco industry, he was a pharmacist in China struggling to quit a two-to-three pack a day smoking habit.

Once in 2002, Hon forgot to remove a nicotine patch from his stomach before bed and had nightmares all night. He traced it to the continuous dose of nicotine and then realized it was precisely that steady release that made patches inadequate for him.

Without the sharp nicotine highs he got from smoking, he found there was no relaxation or stress relief.

Armed with a background in Oriental medicine, knowledge of mechanics and an interest in electronics, Hon set out to make something that would mimic smoking - without the deadly smoke.

His drive was galvanized further when his father, also a smoker, was diagnosed with lung cancer shortly afterwards. He died in 2004.

"I believed that if I could use vapor to simulate cigarette smoke, this could help me," Hon told Reuters on Tuesday.

Thirteen years on from those nightmares, the 59-year-old stopped off in London after participating in a global summit in Warsaw on nicotine as the father of the most disruptive technology the industry has seen. He is also now employed by one of its biggest players, Imperial Tobacco Group, following Imperial's 2013 purchase of Hon's business.

Imperial, the world's fourth-largest tobacco company, will become a major e-cigarette player in the United States following its purchase of the Blu brand in a deal expected to close this week.

E-cigarettes, which heat nicotine-laced liquid into vapor, have ignited a global market for "vaping" products that could top $7 billion this year.

In the absence of definitive studies about the long-term health effects of vaping, they are the subject of great debate.

Tobacco giants including Philip Morris International, British American Tobacco and Japan Tobacco are also racing to enter the market as governments race to control it.

'CLOUD-CHASERS'

Authorities in Wales on Tuesday proposed a new public health law that would ban e-cigarettes in enclosed spaces like offices and restaurants following similar moves in Ireland and elsewhere.

Some regulators fear e-cigarettes could lead non-smokers to vape or even smoke, while proponents say bans discourage smokers from switching.

"E-cigarettes are a consumer-driven revolution," Hon said, noting the array of products now on the market that address the needs of various groups, from people wanting to cut back or quit smoking to a new band of recreational "cloud-chasers" who use nicotine-free vapor to blow the biggest and densest clouds.

"When automotive manufacturers first started out, they were not thinking about a sport to be called Formula One. You always have groups of people who are looking for excitement," Hon said of the cloud-chasing phenomenon.

Although most e-cigarettes are manufactured in China, the market there is very small and tobacco smoking remains high. China is by far the world's biggest tobacco market, and is a virtual monopoly dominated by state-owned firm China National Tobacco. Some estimates peg revenue from tobacco sales as making up as much as 10 percent of the government's coffers.

Yet Hon could soon see more people in his home city of Beijing vaping, due to this month's implementation of strict rules on smoking in public places.

Anyone who violates a ban on smoking in restaurants, hotels, schools, hospitals and in certain outdoor public places must pay a 200 yuan ($32.25) fine. That is 20 times the current, albeit rarely enforced, penalty.

Hon said second and third-tier cities in China could follow Beijing's lead as governments seek to improve public health.

"I understand the market is slowly changing," said Hon, who now only smokes when his job requires him to compare the flavors of various tobaccos and vapes.

"What could happen to the Chinese market could be similar to what's happening here."

(Reporting by Martinne Geller in London; Editing by Pravin Char)

 

[balance]

Extensive information along with maps and pictures. Quite rare from Quartz.

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[Blackstone]

Interesting, I did not know e-cigs are a Chinese invention.

And the best Chinese invention by a country mile is...?

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The first bristle toothbrush, resembling the modern toothbrush, was found in China during the

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(619–907) and used hog bristle.

Lovebirds everywhere thank the Tang Dynasty.

 

[delft]

I've been waiting forever for BYD electric cars to come to the US... still waiting! The crazy thing is despite the long delay it still doesn't appear anyone else is going to build the Model T of the electric car anytime soon.

I think the car that lugs large batteries about is a mistake. It makes the vehicle heavy and makes it use more energy. Beside a battery only gives back about halve the energy you put into it. It is much better, at any rate in thickly peopled areas like East China and the coastal areas of US, to provide energy by way of antennae build into the road. That gives an efficiency of about 70% at a much lower weight, and it gives guidance at a much lower price in computer weight, power and cost than the Google way. Put in a pair of gyroscopes to store some energy and to keep a two wheeled car upright and so save even more weight and provide more comfort, enough energy to drive the car 'by hand' over the last kilometers from the main road to a house when there is no guidance but at a speed of no more than 20 km/h or so. Btw if there is guidance to the house/apartment building you might use unmanned taxi's.
I imagine China will be able to invest in such roads but the deficiency of infrastructure maintenance in US probably makes such investment unachievable.

 

[plawolf]

Economic debates in the US are legend, and while each camp fiercely enforces its own, there are ideas galore, beyond Monetarist vs. Keynesian. One debate I've been following is freshwater vs. saltwater, and it's a real barn-burning, Katie-bar-the-door, take no prisoners war. Check it out, it might be enjoyable.

There is never a shortage of brilliantly talented people in America, that is not the problem, the problem are the ideological crusaders who somehow managed to appoint themselves the gatekeepers to all key government posts would not let any one of them anywhere near a position of real import and power where they can use their intellect to affect real meaningful change and benefit America and the world.

They can have all the back room posts they want, but anything where they can affect policy? Heresy!

 

[broadsword]

Interesting, I did not know e-cigs are a Chinese invention.

Goodness!

To me, the most useful modern invention in China for consumers is the electric pressure cooker. It was invented by Midea, which is now the OEM maker for a Canadian brand. To be fair, after the invention, improvements came from America, I can safely assume, and the pot is now into the third or fourth generation. It is so good because it takes the hassle of guessing the cooking time with presets and reliability is not an issue at all, unlike the fans and kettles I bought.

 

[PanAsian]

I think the car that lugs large batteries about is a mistake. It makes the vehicle heavy and makes it use more energy. Beside a battery only gives back about halve the energy you put into it. It is much better, at any rate in thickly peopled areas like East China and the coastal areas of US, to provide energy by way of antennae build into the road. That gives an efficiency of about 70% at a much lower weight, and it gives guidance at a much lower price in computer weight, power and cost than the Google way. Put in a pair of gyroscopes to store some energy and to keep a two wheeled car upright and so save even more weight and provide more comfort, enough energy to drive the car 'by hand' over the last kilometers from the main road to a house when there is no guidance but at a speed of no more than 20 km/h or so. Btw if there is guidance to the house/apartment building you might use unmanned taxi's.
I imagine China will be able to invest in such roads but the deficiency of infrastructure maintenance in US probably makes such investment unachievable.

Back to the future with trolleys and true "light rail"!?

 

[broadsword]

Extensive information along with maps and pictures. Quite rare from Quartz.

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China's international economic ambition hints that it is willing to compromise on its SCS claims as a state of antagonism is not the ideal climate for securing major deals. It had shown it could with its territorial settlement with Kyrgyzstan and Russia.

 

[SamuraiBlue]

China's economy shows more weakness as imports, exports fall
BEIJING — Chinese imports fell for a seventh straight month in May while exports also sank, according to official data, as the world’s second biggest economy shows protracted weakness despite government easing measures.

The disappointing figures, released on Monday, also come as leaders try to transform the economy to one where growth is driven by consumer spending rather than by government investment and exports.

Imports slumped 17.6% year-on-year to $131.26 billion, the General Administration of Customs said in a statement.

The decline was much sharper than the median forecast of a 10% fall in a Bloomberg News poll of economists and followed April’s 16.2% drop.

“The May trade data… suggest both external and domestic demand remain weak,” said Julian Evans-Pritchard, an analyst with research firm Capital Economics, in a note.

Exports dropped for the third consecutive month, falling 2.5% to $190.75 billion, Customs said, although that was better than the median estimate of a four percent fall in the Bloomberg survey..... to read more

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I'll leave it as is.

 

[broadsword]

I'll leave it as is.

Could be worse since China is known to doctor figures.