Chinese Economics Thread

[AssassinsMace]

Basically it's a WTO violation.
A nation can have only limited participation in development of items that is going into the market since the private entities that pioneered the item on their own risk.
Nations can provide loans and or tax breaks but funding money without liability to the private entity is seen as unfair trade and will be banned from entering the international market.

You can argue all you want but you would probably make the same defense if you were in the private entity's shoes facing a similar situation.

By the way a US NPO Intellectual Property Owner Association recently announce that the US lost in sum of 600 billion US dollar last year alone through piracy,corporate espionage and illegal usage of intellectual property pointing the blame mostly to the Chinese stating that the PRC government is advocating infringement.

No different from how a subsidy works. The $500 million Obama gave to Solyndra was a subsidy no matter how you spin it. Just like how the US has been charged with subsidizing US agriculture. Again "I can do it but you can't!" despite how WTO rules say otherwise. Like Japan hasn't been accused of violating trade rules...

 

[AssassinsMace]

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This is another reason China wasn't a part of TPP. Under TPP a member country can sue another member if there was evidence of a campaign against another member's products that results in loss of "expected profits." You know how many times China would be able to sue the US for its overt campaign to get Americans to buy nothing Chinese? This article uses the term "blame China" as if there was collusion. They didn't want to bother considering Chinese tastes in order to get Chinese consumers to buy their product... And that's why China is to "blame" and not their own arrogance.

 

[antiterror13]

Basically it's a WTO violation.
A nation can have only limited participation in development of items that is going into the market since the private entities that pioneered the item on their own risk.
Nations can provide loans and or tax breaks but funding money without liability to the private entity is seen as unfair trade and will be banned from entering the international market.

You can argue all you want but you would probably make the same defense if you were in the private entity's shoes facing a similar situation.

By the way a US NPO Intellectual Property Owner Association recently announce that the US lost in sum of 600 billion US dollar last year alone through piracy,corporate espionage and illegal usage of intellectual property pointing the blame mostly to the Chinese stating that the PRC government is advocating infringement.

Luckyly WTO is run by smart people ..... hope you soon join SB

 

[Janiz]

The structure of Chinese economy is changing no more flip flop,trinket or T shirt instead solar panel, cell phone, train, steel etc

What? All of those workers will become engineers and will receive PhD's in math, chemistry, physics and biochemistry for free?

lol, it's not changing from T shirts to solar panels and train. Those areas might make an impact on overall picture, but it won't change China...

 

[broadsword]

What? All of those workers will become engineers and will receive PhD's in math, chemistry, physics and biochemistry for free?

lol, it's not changing from T shirts to solar panels and train. Those areas might make an impact on overall picture, but it won't change China...

Butt hurt much?

 

[Equation]

lol, it's not changing from T shirts to solar panels and train. Those areas might make an impact on overall picture, but it won't change China...

As the #1 economy in the world...AGAIN?

 

[Hendrik_2000]

What? All of those workers will become engineers and will receive PhD's in math, chemistry, physics and biochemistry for free?

lol, it's not changing from T shirts to solar panels and train. Those areas might make an impact on overall picture, but it won't change China...

What do you mean It certainly have huge impact on the people and country as a whole. By going up the economic ladder , you can demand higher wages since there is higher profit margin for high value added product like cellphone, computer or Broadband infrastructure
.
How do you explain the double digit increase in Chinese hourly wages over the years?. It is concerted effort on part of the government to shift the economy to higher value added product while at the same time better people life. Read this
China wages already exceed the wages in most Latin america countries . Soon they will eat the eastern and southern European country lunches. So you can eat your heart out. I can see Janiz waiting table at restaurant in Europe serving rich Chinese tourist

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Average wages in China's manufacturing sector have soared above those in countries such as Brazil and Mexico and are fast catching up with Greece and Portugal after a decade of breakneck growth that has seen Chinese pay packets treble.

Across China's labour force as a whole, hourly incomes now exceed those in every major Latin American state apart from Chile, and are at around 70 per cent of the level in weaker eurozone countries, according to data from Euromonitor International, a research group.

And here's a graph of real wage growth (not PPP-adjusted):

Why is this important? Because year after year, we see China pundits predicting a crash. When it doesn't happen, some people claim the GDP numbers are "fake news". The problem with these arguments is that the Chinese wage numbers (showing real wages growing at 10.5% annually over the past 11 years) are consistent with the reported gains in GDP. So, the Chinese government would have to get its 1.4 billion people to participate in The Great GDP Cover-up, by getting them to also lie to reporters about their wage gains.

My wife recently mentioned that her mother was now paying 35 yuan/hour (i.e., $5/hour) to her maid - a sum that her mother found completely mindboggling. So what's the theory? Is my mother-in-law participating in the cover-up, lying to her daughter? Or maybe my wife is fabricating Chinese wage numbers to make her homeland look good. Perhaps I married someone in the Chinese propaganda ministry.

Hmmm... that would explain...

Seriously, it's time for people to face reality. China is not a bubble; it's a very successful developing country. The GDP data is real, even if it's nominal. China may well have a debt crisis at some point in the next decade or two, but like South Korea, it will recover and move into the high income category.

If anything, the wage data suggests that the country may be understating its GDP growth, as China's reported GDP (PPP-adjusted) is still well below the levels of Mexico and Argentina.

 

[Franklin]

Before reading this article I have never heard of this guy or his company.

Rags to riches: Delivery man now China’s third-richest billionaire

Show me the money! A humble delivery man has now become China's third-richest billionaire.

Wang Wei, chairman of SF Holding — the FedEx of China — has seen his fortune grow to around $27 billion, according to a Forbes estimate. Wang has knocked out Tencent founder Pony Ma for the third spot, but is still a few billion dollars behind China's richest man, property tycoon Wang Jianlin, based on a ranking by the Hurun Report.

China's economy has boomed over the years, and so have the pockets of some savvy individuals. The world's second-largest economy now creates one new billionaire nearly every week, according to PricewaterhouseCoopers.

Logistics firms like SF are also riding China's e-commerce boom, as shopping sites run by Alibaba and JD.com have grown in popularity among consumers.

Shares of SF have soared as much as 40 percent after the company completed a backdoor listing last Friday in Shenzhen. Wang, 46, merged his company with one that was already trading — a quicker route to a public debut.

Since then, the stock has spiked by the 10 percent daily trading limit every day. But shares pulled back 3 percent today, after official state media reports said the huge rise was a matter of "idle speculation." Still, the company's market cap is hovering around 285 billion yuan ($41 billion).

The Chinese government has been keen to rein in frenzied stock trading — those efforts are seeking to avoid a repeat of the 2015 stock market crash.

Wang started his company in 1993 with about $13,000, sending packages himself along with a handful of other couriers and one delivery van, according to state media reports. Now, SF has 15,000 vehicles and a network that covers 200 countries and regions globally.

Other Chinese delivery firms have also listed recently — YTO Express in Shanghai, and ZTO Express in the U.S.

ZTO's New York IPO was the largest in the U.S. last year.

SF Holding didn't immediately respond to a request for comment.

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[vesicles]

What? All of those workers will become engineers and will receive PhD's in math, chemistry, physics and biochemistry for free?

lol, it's not changing from T shirts to solar panels and train. Those areas might make an impact on overall picture, but it won't change China...

So you are saying those workers can't get PhD's in math, physics, chemistry and biochemistry? My dad has a PhD in chemistry and he is a son of a coal miner. He got most of his education for free. Otherwise, I can't imagine how he could ever afford education with his dad's miner wages.

China has been undergoing economic growth for the past 30 years. The first generation workers might not have changed their ways of life. However, with better financial conditions, they can afford to send their children to schools and get education. Then you see a drastic shift in demographics. And what you are seeing now is how the second and third generation Chinese live and work since the economic growth started in the 80's and 90's.

This is indeed what's happening to majority of Asian immigrants in the US. Vast majority of first generation Asian immigrants coming to the US hold poorly paid jobs like working in the kitchen of a restaurant or as a janitor. Yet, they save up money to send their kids to Ivy League schools and these kids become doctors and lawyers.

This kind of drastic shift happens most evidently among Vietnamese immigrants in the US. Most of the first gen immigrants came the the US in the mid 70's and 80's after the Vietnam war. And in Texas, most of them became fishermen and shrimpers. Yet, vast majority of their kids grew up to become doctors and lawyers. So you see this almost 180 deg turn of family demographics within 20-30 years.

China is doing the same as we speak.

 

[AssassinsMace]

Basically it's a WTO violation.
A nation can have only limited participation in development of items that is going into the market since the private entities that pioneered the item on their own risk.
Nations can provide loans and or tax breaks but funding money without liability to the private entity is seen as unfair trade and will be banned from entering the international market.

You can argue all you want but you would probably make the same defense if you were in the private entity's shoes facing a similar situation.

By the way a US NPO Intellectual Property Owner Association recently announce that the US lost in sum of 600 billion US dollar last year alone through piracy,corporate espionage and illegal usage of intellectual property pointing the blame mostly to the Chinese stating that the PRC government is advocating infringement.

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Oh, yes. The hypocrisy is thick.