Chinese Economics Thread

[broadsword]

Now that is an overstatement on your part.
Japan has very little trade barrier outside of agricultural products with no barriers in the manufacturing sector, PRC has many. No where near a pot calling the kettle situation.

Regardless of the sector, Japan is still practising protectionist policies. It is still the pot calling the kettle black until Japan clean themselves up.

 

[Equation]

Regardless of the sector, Japan is still practising protectionist policies. It is still the pot calling the kettle black until Japan clean themselves up.

They will never clean themselves up. They will use the western media as their tool to call the kettle black so that the world could turn their attention away from Japan's trade barriers and closed market for awhile.

 

[Blackstone]

Converting to a consumption/service economy to escape middle-income trap is a red herring. There are plenty of consumption and services in many third world countries, i.e. India. Don's see them become rich because of the consumption. The key is to move up the value chain to make more money. Get more GDP per person is the only way to escape the middle-income trap. Chinese leaders know this, that why they have the China 2025 program

China moving up the value chain goes hand in hand with economic reforms, especially its SOEs. That's why the CCP leadership continuously push for supply-side reforms with market-based policies. China is trying to transform itself from a manufacturing/export-based economy to a service/consumption-based one, and reforms in SOEs, private companies, and wealth transfers to the consumers are key parts of it.

 

[Blackstone]

Then you need to take SOE performance as a whole, not just one company or one sector. And definitely over more than a year or two.

I agree we should take China's SOE reforms as a whole, but they don't all have the same weighted average in importance. That's why the CCP published key reform targets recently, and there's clear focus on the heavy industries with massive overcapacity and industries with high environmental concerns. Non SOEs are also on the list, but it's fair to say CCP's main targets are SOEs.

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The State Council on April 18 issued a guideline on China’s economic reform in 2017, which regards supply-side structural reform as key.

The guideline vows to continue cutting excessive capacity in steel, coal, coal power, and other industries, and reduce inventory in the real estate market.

Leverage ratios in enterprises, especially in state-owned ones, were asked to be cut, and meanwhile multiple measures should be in place to help lower business costs, including taxes and administrative fees.

According to the guideline, the government will cut more administrative permits and licenses for businesses and ease market access. Government’s supervision in the market will be enhanced to build a better social credit system.

Pricing reform will continue for electricity, gas, agricultural irrigation, railway transportation and aviation.

Meanwhile, reform of state-owned enterprises will be enhanced.

An effective and balanced corporate governance structure will be promoted in central SOEs with the setting up of boards of directors and diversified ownership structure. Non-state-owned investment will be allowed in some SOEs to build a mixed ownership pattern.

In particular, SOE reform in the electricity, petroleum, gas and salt production industries will be accelerated.

The guideline urged more policies to protect intellectual property rights and encourage more quality public services.

Fiscal duties of central and local governments will be clarified and streamlined, and value-added tax reform will be optimized into a briefer structure.

Finance reform will continue with efforts to form market-oriented interest and exchange rates, and improve financial institutions and supervision, as well as the capital and insurance market.

Banks will be encouraged to develop inclusive finance, offering more capital to small and medium companies and agriculture.

 

[Blackstone]

You can stop inventing words and that I didn't say.

I quoted you exactly in your post #7133 where you said:

Skeptics and doubts does NOT equal to "problems"

I then pointed out to you Xi Jinping himself said "vested interests" are resisting and causing problems for the reforms. So, there are indeed problems with China's economic reforms.

You anti-CPC fan bois just couldn't handle the truth that the CPC is by far the most productive government in history. It has uplifted hundreds of millions out of poverty and another hundreds of millions more into middle class.

Yet another outburst with little basis in facts. I'm balanced in my views on CCP's governance and I have pointed both positives and negatives of the regime. You, on the other hand, is a China fanboi who has shown very little balance on CCP's track record. Got news for you fanbio, CCP performance isn't all or even mostly good, and it's reasonable to point out both positives and negatives.

By the way, you left out an important part of CCP governance. Not only is it by far the most productive government in history, CCP is also the most competent government in the world too.

 

[Blackstone]

No it means PRC is a closed market operating protectionism that can't assure fair trade to foreign corporations while enjoying fair trade in other nations.

Your claim PRC is a closed market is demonstrably false, and only a person with little economic education or understanding would say such a ridiculous thing. You are, however, correct on China practicing protectionism with some of its trade policies, but so do US, India, ROK, Australia, UK, EU, Japan, and just about every government in the world.

 

[Blackstone]

I find it ironic they say this
The chamber noted the United States and other countries impose few limits on Chinese companies that are on a global buying spree to acquire technology and companies.

Really how about interference with sale of German company
Don't they know what is good for the geese is also good for the gander
US moves to block Chinese purchase of German tech firm Aixtron (Update)
December 2, 2016

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US President Barack Obama on Friday moved to block a Chinese company's purchase of German semiconductor equipment maker Aixtron by rejecting the inclusion of Aixtron's US business in the deal.

The US Treasury Department said a review by the Committee on Foreign Investment in the United States (CFIUS) chaired by Obama found the risks posed by the deal, which could place sensitive technology with potential military applications in Chinese hands, were too great.

"CFIUS and the president assess that the transaction poses a risk to the national security of the United States that cannot be resolved through mitigation," the Treasury said in a statement.

Read more at:

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What of it? WTO rules allow national security-based protectionism.

 

[Equation]

I quoted you exactly in your post #7133 where you said:

I then pointed out to you Xi Jinping himself said "vested interests" are resisting and causing problems for the reforms. So, there are indeed problems with China's economic reforms.

Where is the evidence of his 'vested interests' are resisting and 'causing problems for reforms'? The problem with your view point is that you think there is a problem, therefore Xi is not doing what he promised to do.

Yet another outburst with little basis in facts. I'm balanced in my views on CCP's governance and I have pointed both positives and negatives of the regime. You, on the other hand, is a China fanboi who has shown very little balance on CCP's track record. Got news for you fanbio, CCP performance isn't all or even mostly good, and it's reasonable to point out both positives and negatives.

By the way, you left out an important part of CCP governance. Not only is it by far the most productive government in history, CCP is also the most competent government in the world too.

You fanboi CPC haters always pretend that you are balance on your opinion about China but we all know you aren't so you can stop pretending. If you are balance how come you never complain about your favorite religious institutions and Taiwan regime in a negative light?

 

[Equation]

Looks like China economic reform is coming along fine.

China: How to Cash In On The Rising Middle Class

China has been a world leader in the online commercial retail space as it draws upon its large group domestic consumers and rising middle-income base. Consequently, a China tech-related exchange traded fund has been among the best performers over the past five years and may continue to lead.

Guggenheim China Technology ETF (NYSEArca:

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) has outpaced the other 20 China Region ETFs and all 75 China Region mutual funds Morningstar's universe over the trailing 5-year period by more than 200 basis points on an annualized basis.

Over the past five years, CQQQ has generated an average annualized return of 13.0%, whereas the benchmark MSCI China Index has shown an average return of about 5.0%.

Supporting this growth trend in the Chinese technology segment, China overtook the U.S. to become the largest e-commerce or online commercial retail market in the world based on value and is on track to be worth $840 billion in 2021, or almost double the estimate size of the U.S. e-commerce sales in the same period, according to McKinsey data. The e-commerce growth in China exceeds the U.S.'s rate of growth by about four times.

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[Equation]

China's premier says market confidence in yuan has significantly improved

Chinese Premier Li Keqiang arrives to meet with Serbian President Tomislav Nikolic at the Great Hall of People in Beijing, China March 31, 2017. REUTERS/Lintao Zhang/Pool
BEIJING (Reuters) - Market confidence in China's yuan currency has improved significantly, Premier Li Keqiang said on Tuesday, according to the state news agency, Xinhua.

The yuan has stabilised this year, due to curbs on capital outflows and a reversal of a rally in the dollar, following a fall of 6.5 percent in 2016 - the Chinese currency's biggest annual drop since 1994.

"China's foreign trade grew sharply in the first quarter of this year," Xinhua quoted Li as saying in a post on Weibo, the country's equivalent of social network Twitter.

"A very important reason is that market confidence in the renminbi (yuan) has significantly strengthened."

The outside world has stable expectations for the currency's exchange rate, he added.

Li also reiterated that China would keep the yuan basically stable at a reasonable, balanced level, Xinhua said.

China's 2017 export outlook brightened considerably as it reported forecast-beating trade growth in March and as U.S. President Donald Trump softened his anti-China rhetoric in an abrupt policy shift.

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