Chinese Economics Thread
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Hendrik_2000
Lieutenant General
I don't know what is the fuss over declining Yuan. It is normal due to tightening of credit in China Chinese economy is still robust according to IMF And Yuan is fairly value
The Chinese yuan is 'fairly valued,' says IMF mission chief
Huileng Tan,CNBC Thu, Jul 26 8:10 PM PDT
The Chinese yuan is still "fairly valued" despite recent declines against the dollar, said an International Monetary Fund (IMF) official on Friday.
"The moves haven't been that big by the standards of other emerging markets. It only takes the currency back to where it was at the beginning of the year and on the average of last year," said James Daniel, the IMF mission chief for China
China's currency has been sliding since mid-June amid an escalating trade war between the United States and China, after bumping around at higher levels from February through May. On Friday, USD/CNY was trading around 6.8.
The recent moves in the Chinese yuan are what is to be expected from a flexible exchange rate, Daniel told CNBC's "The Rundown."
"Domestically in China, there's a bit of a slowdown, somewhat of a monetary easing ... [but] the American economy is doing well and there is a tightening bias in America so you'd expect to see this divergent monetary condition reflected in a somewhat weaker exchange rate in China," Daniel explains.
Daniel's comments came on the back of the IMF's annual review of the Chinese economy.
China's economy continues to perform strongly, the IMF said, with growth expected at 6.6 percent this year — slightly slower than last year's 6.9 percent.
The growth estimate was unchanged from the IMF's last forecast made in May. It had raised its estimate for China's 2018 growth in January after the economy unexpectedly accelerated last year.
While the IMF praised China's progress on reducing financial sector risks and in further opening its economy, it said credit growth was still unsustainably high as some aspects of the country's rebalancing had slowed.
"China is at an historic juncture. After decades of high-speed growth, the authorities are now focusing on high-quality growth," the report said.
The IMF added that China's headline inflation is expected to rise gradually to around 2.5 percent, while producer price inflation would moderate.
The U.S. is also closely watching the currency of its top trading partner.
On Thursday, Treasury Secretary Steven Mnuchin told CNBC he's "closely monitoring" the weakening in the Chinese currency.
Jura The idiot
General
Hendrik_2000
Lieutenant General
The western press has a field day with bad news coming from China like this scandal with vaccines
They invariable blame CCP.But government can only do so much. Greed and unbridled materialism cannot be legislated .Even harsh punishment is impotent Good bossiness ethic has to live in the people's conscientiousness and moral. Which again reflect badly on the loss of traditional Chinese value and righteousness during the chaos of 60 and 70's
Parents’ Fears Are the Chinese Communist Party’s Biggest Nightmare
A huge vaccine scandal hits at Beijing's most vulnerable point: children's safety.
BY | JULY 31, 2018, 11:46 AM
A child receives a vaccination shot at a hospital in Huaibei in China's eastern Anhui province on July 26, 2018. (AFP/Getty Images)
The Chinese party-state seemed quick to respond this month after a major pharmaceutical company was found to have sold over 250,000 substandard vaccines for children. The revelations, based partly on a viral social media post that sparked a frenzy among millions of worried Chinese parents, were called “serious and appalling” by Communist Party Chairman Xi Jinping, who on unsavory practices in the industry. Premier Li Keqiang the company’s behavior had “crossed a moral line,” and a normally throttled press was permitted to cover the topic. The China Food and Drug Administration (CFDA) opened an investigation and the firm’s chairwoman, “vaccines queen” Gao Junfang, was along with 14 others.
Click the link for the rest
They invariable blame CCP.But government can only do so much. Greed and unbridled materialism cannot be legislated .Even harsh punishment is impotent Good bossiness ethic has to live in the people's conscientiousness and moral. Which again reflect badly on the loss of traditional Chinese value and righteousness during the chaos of 60 and 70's
Parents’ Fears Are the Chinese Communist Party’s Biggest Nightmare
A huge vaccine scandal hits at Beijing's most vulnerable point: children's safety.
BY | JULY 31, 2018, 11:46 AM
A child receives a vaccination shot at a hospital in Huaibei in China's eastern Anhui province on July 26, 2018. (AFP/Getty Images)
The Chinese party-state seemed quick to respond this month after a major pharmaceutical company was found to have sold over 250,000 substandard vaccines for children. The revelations, based partly on a viral social media post that sparked a frenzy among millions of worried Chinese parents, were called “serious and appalling” by Communist Party Chairman Xi Jinping, who on unsavory practices in the industry. Premier Li Keqiang the company’s behavior had “crossed a moral line,” and a normally throttled press was permitted to cover the topic. The China Food and Drug Administration (CFDA) opened an investigation and the firm’s chairwoman, “vaccines queen” Gao Junfang, was along with 14 others.
Click the link for the rest
solarz
Brigadier
That's silly. Recalls and scandals abound in the West as well.
What China needs is a more structured process for issuing recalls and a more experienced institution overseeing such matters.
Jura The idiot
General
In Poland similar policy helped to increase the fertility rate from 1.29 to 1.42.
The stable population needs 2.1 rate.
In Poland they give 150 $/month/child after the first.
It is very hard to recover the fertility rate.
In the US the 2008 depression decreased the fertility rate from 2.1 to 1.8, and it doesn't show signs of recovery.
The fertility rate is very sensitive for the average social / economical wellbeing of the population, in Russia from 2016 to 2017 it drop from 1.8 to 1.64 due to economic issues.
At the moment in China it is 1.57, simple money handout will increase it maybe to 1.65-1.7 based on the Polish experience., and that is way off from the required 2.1
To push it above to 2 the average level of living has to increase dramatically.
Hendrik_2000
Lieutenant General
Well aside from occasional food poisoning due to salmonella break out in salad or other food, I haven't heard much about any major scandal. The last time it was Thalidomide in the 60's
No China did a lot in streamlining the regulation policy of food and drug administration But this kind of scandal still happened. You wonder why I haven't yet heard any food scandal in Japan or Taiwan for that matter.
As I said legislation alone cannot prevent scandal. The culture of zero failure tolerant must be permeated thru the whole chain of bossiness structure from CEO down to inspector
First of all, we should not run into a competition of who is worse.
That being said, maybe you should update yourself a little bit. Last time I heard of food scandals was in number of small and wealthy western European countries with reputation of being well organized and regulated. Just within the past 5 years, there was salad vegetables contaminated by excessive bacteria and horse meat pretending to be beef. The scare of horse meat was due to the fact that most of the horse meat are from dead racing horses that have high grade of hormone content in their blood for racing. These countries are the size of small provinces in China, you can increase the scale by 30 fold to get the picture.
If you have not heard anything from Taiwan, check these out
or
or
Japan maybe doing better, who knows, but there is no point of continuing finding other's dirty under the carpet.
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