Chinese Economics Thread

Nevermore

Nevermore

Junior Member
Registered Member
That said, China's GDP growth potential has been significantly constrained by its real estate challenges and employment issues. Given its massive population and rapid technological progress, an economic growth rate of less than 5% is undoubtedly on the low side.
Of course, we all know that GDP is merely a surface indicator. To resolve the challenges in the real estate sector and employment, we must abandon the GDP-centric approach for a period and reform our development strategy.
 
Wrought

Wrought

Captain
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Interesting to note that Japanese FDI into China rose sharply last year, despite a broader slump. However, the article overlooks the timeline contradiction; Takaichi didn't assume office until Q4, so obviously Q1-Q3 data would not reflect anything about her.

Despite diplomatic relations sinking to a new low,
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show that Japanese foreign direct investment (FDI) into China surged by 55.5% year-on-year in the first three quarters of 2025. This spike stands in stark contrast to China’s broader investment downturn. In 2025, China’s total utilised FDI (that is, foreign investment that has actually been made rather than just planned or promised) fell to 747.77 billion yuan, down 9.5% from the previous year, marking the third consecutive annual decline.
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meedicx

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There are still too many boomers who won't buy EV and stick with ICE. China is going the wrong way reducing EV subsidies. If they want taxes, they should increase taxes on new ICE vehicles. Or close some gas stations and make things more inconvenient for ICE owners. There is plenty of EV manufacturing capacity to absorb the demand shift.

Hopefully this oil/gas shock causes a pivot on EV subsidies.

Also, electric heating and cooking is not pushed for hard enough. Burning imported LNG for uses cases that can be replaced by electricity is not wise.
 
lcloo

lcloo

Major
meedicx said:
There are still too many boomers who won't buy EV and stick with ICE. China is going the wrong way reducing EV subsidies. If they want taxes, they should increase taxes on new ICE vehicles. Or close some gas stations and make things more inconvenient for ICE owners. There is plenty of EV manufacturing capacity to absorb the demand shift.

Hopefully this oil/gas shock causes a pivot on EV subsidies.

Also, electric heating and cooking is not pushed for hard enough. Burning imported LNG for uses cases that can be replaced by electricity is not wise.
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"Hopefully this oil/gas shock causes a pivot on EV subsidies."

The hike in petrol prices actually make car users to rethink whether they should buy ICE or EV. High petrol prices will make driving ICE more costly compares to EV, this will encourage people to move to EV.

Electricity cost in China will be the least affected by petrol or oil prices among Asian countries since crude oil was only 20% of the 2025 total energy consumption, and in particular of electricity generation less than 1% was from oil in 2025, that's right, less than One percentage. Thus any international oil crisis will have practically near zero effect on cost of electricity, and for EV as well.

The cost of driving ICE car would be totally different.

Edit:

Cost Comparison (Typical Mid-Size Car in China, 2025–26)​

  • ICE Car: ~USD 0.12–0.15 per km (fuel only).
  • EV: ~USD 0.05–0.07 per km (electricity).
 
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sunnymaxi

sunnymaxi

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In 2025, China saw an average of 26,000 new enterprises established per day, with a total of 25.74 million new businesses registered nationwide that year, according to the National Bureau of Statistics.

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