Chinese Economics Thread

virsuvei

New Member
Registered Member
I would argue exploring multiple avenues of development is in some ways crucial to speed up research and development. A lot of things are about trial and error, and keep running experiments until optimal conditions or configurations are found.

While I am sure putting more money in will not hasten many processes, I am nevertheless certain that things would still move much faster on various fronts. If nothing, you can hire even more Chinese in other countries to come back and contribute. Getting more money in, also helps in talent generation in niche sectors.
Your emphasis on speeding up technology development is, of course, fine. Anyway you fail to see:
1. There's a limit on how fast you can grow. I think it was with the Semiconductor fund 2 where the top manager was finally imprisoned. He had been unable to find sensible use for all the money and so he had invested some of it in construction companies. Maybe he should have tried harder but anyway there may be a problem.
2. In China it's not 'the government' which does those developments. A big majority of investments is done by local governments in cooperation with private companies. Initial breaking of new avenues is the job of national government. This further on leads to a situation where many companies try different approaches, compete fervently and cut the prices. Profits will drop to low levels. This helps their clients but the top government may have to interfere to raise profits to such levels which enables further research. In the US it's nowadays typical for some huge companies to achieve near monopoly positions which permits highly unusual profits. Now it happens that in macro economics we have a formula called Kalecki-Levy profit equation. It states that total profits are a sum of some other items, primarily of total investments. This means that in US the small and medium companies are left with quite little profits whereas in China among players of all sizes some more have reasonable profits while others must be content with very tight margins.
 

Michael90

Junior Member
Registered Member
Huawei has its own FinFet EDA since 2022. most likely SMIC using this already

so you actually think, hundreds of billions require just for EDA ?? bro don't see China with the eyes of America. you guys have every inefficient spending system. you know pretty well that how expensive America is.. so Billions of Yuan are enough money in mainland.
Agree . Is it true that Synopsis,cadence, Siemens EDA and still controls 82% of China’s market?
if so, then domestic companies need to move fast since the us has already banned them once and they will definitely do it again in future . Surprised Chinese companies still choose to rely on them even though China already have alternatives domestically, granted the domestic alternative might not be at par with western ones yet but still they have to start using them so they can improve with time.
 

zbb

Senior Member
Registered Member
Spending increased 15% during the holidays of National Day and Mid-Autumn Festival.
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As reported by Yicai:
China’s Golden Week holiday drove a sharp rebound in domestic tourism, with spending up 15 percent to CNY809 billion (USD114.5 billion), highlighting resilient consumption and growing consumer confidence.​
The number of trips taken in China over the holiday that ended Oct. 8 jumped 16 percent to 888 million, according to figures from the Ministry of Culture and Tourism.​

Now here's how Reuters is reporting on the same data
Chinese holidaymakers' average spending dipped to a three-year low over this year's eight-day Golden Week holiday, dashing hopes that a domestic stock market rally would encourage cautious consumers to open their wallets.​
Average spending per trip during the holiday this year reached 911.04 yuan ($113.52), down 0.55% from the same period last year, according to Reuters calculations based on government data published on Thursday.​

Average spending is down a shocking 0.55% (extra decimal places are so necessary) because number of trips increased by 16% while total spending is up only 15%! Chinese economic collapse confirmed once again!
 

bsdnf

Junior Member
Registered Member
As reported by Yicai:
China’s Golden Week holiday drove a sharp rebound in domestic tourism, with spending up 15 percent to CNY809 billion (USD114.5 billion), highlighting resilient consumption and growing consumer confidence.​
The number of trips taken in China over the holiday that ended Oct. 8 jumped 16 percent to 888 million, according to figures from the Ministry of Culture and Tourism.​

Now here's how Reuters is reporting on the same data
Chinese holidaymakers' average spending dipped to a three-year low over this year's eight-day Golden Week holiday, dashing hopes that a domestic stock market rally would encourage cautious consumers to open their wallets.​
Average spending per trip during the holiday this year reached 911.04 yuan ($113.52), down 0.55% from the same period last year, according to Reuters calculations based on government data published on Thursday.​

Average spending is down a shocking 0.55% (extra decimal places are so necessary) because number of trips increased by 16% while total spending is up only 15%! Chinese economic collapse confirmed once again!
When total consumption increases, they calculate per capita consumption.

When per capita consumption increases, they calculate the rate of increase.

As long as the data is differentiated enough, there will always be a decline one.

If it doesn't work, at what cost
 

GulfLander

Brigadier
Registered Member
As reported by Yicai:
China’s Golden Week holiday drove a sharp rebound in domestic tourism, with spending up 15 percent to CNY809 billion (USD114.5 billion), highlighting resilient consumption and growing consumer confidence.​
The number of trips taken in China over the holiday that ended Oct. 8 jumped 16 percent to 888 million, according to figures from the Ministry of Culture and Tourism.​

Now here's how Reuters is reporting on the same data
Chinese holidaymakers' average spending dipped to a three-year low over this year's eight-day Golden Week holiday, dashing hopes that a domestic stock market rally would encourage cautious consumers to open their wallets.​
Average spending per trip during the holiday this year reached 911.04 yuan ($113.52), down 0.55% from the same period last year, according to Reuters calculations based on government data published on Thursday.​

Average spending is down a shocking 0.55% (extra decimal places are so necessary) because number of trips increased by 16% while total spending is up only 15%! Chinese economic collapse confirmed once again!
Why is reuters looking at spending per trip? Did they also look at carbon emissions per capita?
 

Proton

Junior Member
Registered Member
And considering the potential impact of deflation, this data is quite normal.
-1.9% yoy inflation for transportation, -7.1% yoy inflation for fuel for transportation.
-4.3% yoy inflation for food.

Just happens to be some of the main things people spend money on when they travel. Perhaps why more people are able to travel in the first place?

Another headline could be:
"A crash in fuel prices causes swarms of less affluent people to roam China, the CCP is unable to contain the situation as the locust hordes descend on stocks of cheap pork (-16.1% yoy) and eggs (-12.4% yoy) for sustenance!"
 
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tygyg1111

Captain
Registered Member
-1.9% yoy inflation for transportation, -7.1% yoy inflation for fuel for transportation.
-4.3% yoy inflation for food.

Just happens to be some of the main things people spend money on when they travel. Perhaps why more people are able to travel in the first place?

Another headline could be:
"A crash in fuel prices causes swarms of less affluent people to roam China, the CCP is unable to contain the situation as the locust hordes descend on stocks of cheap pork (-16.1% yoy) and eggs (-12.4% yoy) for sustenance!"
There will probably come a day when we miss these crazy western MSM headlines; Chinese parody news websites will spring up to bring the laughter back
 
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