Good heavens, what happened? Why is the growth so high?
Chinese Economics Thread
- Thread starter Norfolk
- Start date
People need more cheap Chinese goods during economic downturn.
Looking at the trade data for January and February, it's striking how imports from Malaysia have dropped sharply, while those from Singapore have seen a massive surge.
So I did some more research and found China is promoting low protein feed for livestocks to reduce dependence on soymeals. The idea is to decrease soymeal and supplement only those limiting amino acids that are in short supply relative to an animals requirement. This works because China happens to be the largest industrial producer of all three major limiting amino acids: lys, met and thr.
apart from world need more Chinese goods there is also huge surge in high value exports like semiconductor , auto , ships and other industrial products.
China’s chip exports surge 73% as AI demand fuels semiconductor growth
Integrated circuit (IC) exports reached US$43.3 billion in January and February, an increase of 72.6 per cent from a year earlierCar exports up by 67.1%. Ship exports up by 52.8%
Basically every high-tech good is up double digits except smartphones (down 8.3% by value but actually up 3% by volume)
China's metals trade data is also out. Rare earth import and export are up. Copper export down and iron ore is up. The latter seems to indicate an expansion in construction sector.
keep in mind the actual unit count was up only 13% YoY. The $ amount when up because the entire chip sector is priced higher vs last year. The import was also up big time. I think the trade deficit on IC is higher than last year.
In the case of Singapore and Malaysia, that's probably suggest shift of AI chip transshipment from Malaysia back to Singapore.
Kind of expected in a way since the consumer electronics product (both Chinese & foreign ones) produced in China often use foreign memory chips and such.
I have a long thread here on sulfur, sulfuric acid, phosphate and the Chinese role in this as well as interruption from Gulf Of Hormuz blockade.