Chinese Economics Thread

horse

Colonel
Registered Member


I watch this video the other day, did not really think too much about the contents, other than that one point that was very intriguing that Mr. Gave made about the oil price and gold price at the end.

Now think I should post it, because it was not a bad talk. He went over the basics. This was not like his usual talks, as this time the interviewer was just some 21 year old kid. He was Duke student in the United States, apparently Mr. Gave was an alumni so this interview was granted.

It is one hour long, but it still went over the most important points of recent years for the China economic story.

:D



One point in the video, that I do not agree with, is that Mr. Gave points out that the situation is that with India making up with China, potentially there is the world's lowest cost producer of raw materials in Russia, then the largest advanced factory in the world which is China, and the largest country with the cheapest labour which is India. Put those three together, and we can have a boom of epic proportions.

That I do not really expect.

To make a long story short, the question really is how to utilize that cheap labour? Does that means India exports labour as workers to other countries? That would be no, because if they come to Canada, the Indian-foreign worker is paid a Canada wage, so that labour is no longer cheap. Therefore, the idea that India has the cheapest labour between those three countries, means the capital and factories have to appear in India and that the cheap raw materials will arrive from Russia.

So really we just back to the same Indian story as before in their development economics. To utilize that cheap labour, going to need conditions conductive for business. That the Indian government must provide before anything goes forward.

:oops:

Of course, some people probably already thinking, automation in China and with cheap raw materials from Russia, could be a real boom in the making!

:p
 

GulfLander

Brigadier
Registered Member

China freezes BHP iron ore cargoes amid pricing dispute​

China has ordered its steelmakers and traders to suspend purchases of dollar-denominated seaborne iron ore from BHP (ASX: BHP) as annual price talks stall.
The directive from China Mineral Resources Group (CMRG), the state-run buyer created in 2020 to strengthen Beijing’s hand in global negotiations, blocks new contracts, even for cargoes already en route from Australia, Bloomberg News reported.
Talks between BHP and CMRG have so far failed to produce an agreement, with the dispute believed to centre on discounts applied to BHP’s medium-grade ore. BHP, the world’s largest mining company, is China’s third-biggest iron ore supplier after Rio Tinto (ASX: RIO) and Vale (NYSE: VALE).
The company declined to confirm the order but said shipments from Western Australia’s Port Hedland remain uninterrupted. Analysts suggested the suspension is a bargaining tactic. “We view this ‘ban’ as more of a negotiating strategy, most likely an effort to secure lower long-term prices,” RBC wrote in a note Tuesday.
Market tensions
Analysts also said diverting purchases to rivals Rio Tinto, Vale or Fortescue (ASX: FMG) could prove costlier and strengthen miners’ pricing power as mills compete for supply.
Tom Price of Panmure Liberum noted the move reflects Beijing’s growing confidence: “Would China have done this a decade ago, when it heavily depended on imports? No way.”
The timing is expected to have minimal short-term impact on Chinese mills, which have built up inventories ahead of national holidays. Still, the standoff underscores tensions in the global iron ore market as slowing demand weighs on prices.
BHP reported in August its lowest annual profit in five years and cut exploration spending, as slowing Chinese demand weighed on iron ore prices.
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Aaa

Banned Idiot
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One of the reasons why Iron Ore prices hover at around 100 USD per ton instead of going back down to pre-2020 levels is due to China's venture in Guinea, the Simandou Iron Ore project being massively compromised by the coup in 2021

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Due to that coup, China no longer has as much leverage against iron ore exporters globally.
 

tphuang

General
Staff member
Super Moderator
VIP Professional
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One of the reasons why Iron Ore prices hover at around 100 USD per ton instead of going back down to pre-2020 levels is due to China's venture in Guinea, the Simandou Iron Ore project being massively compromised by the coup in 2021

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Due to that coup, China no longer has as much leverage against iron ore exporters globally.

Alright, clearly people did not get my earlier message because there continues to be trolls like this guy showing up. Banned for one week.
 
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