China Economy: News & Discussion

Gordon Chang is a good author just because you don't like what he is saying don't discredit him, he is giving concrete evidence evidence for his views.

forget it...

MR. Chang is just the most successful spy of China........

He succeeded in persuading west people that China wouldl collapse and west people needed not be wary to the emergence of CHina at all.

Seen from hisorical perspective, Mr.Chang succeed in managing necesary time and room for Chinese emergence....he will be a hero to Chinese....:dfi-1:

nice job by Mr Gordon Chang if your theory is true but how does a Chinese economic collapse make him a hero??

China raises gasoline, diesel prices

China will raise gasoline and diesel prices both by 480 yuan (US$70.28) per tonne from Tuesday, the National Development and Reform Commission (NDRC) announced on its website Monday.

The benchmark price of gasoline will be 7,100 yuan a tonne and that of diesel 6,360 yuan a tonne, according to the NDRC.The retail price of gasoline will climb by 0.36 yuan per liter and that of diesel will rise by 0.41 yuan per liter.The country adopted a new fuel pricing mechanism, which took effect on Jan. 1.

Under the pricing mechanism, the NDRC will consider changing the benchmark retail prices of oil products when the international crude price changes more than four percent over 22 straight work days."Margins of price fluctuations are within expectation. The price hike can help relieve domestic refiners' pressure from soaring oil refining cost," said Wang Jing, an analyst on petrochemical sector with Orient Securities Company Limited.

The price hike was aimed to protect oil refiners' interests, ensure market supply and help lead rational consumption to promote energy-saving and emission reduction, the NDRC said.The NDRC would take active measures to help reduce pressure brought to sectors like transportation, the NDRC said.International crude oil price might continue to rise within this year as demand would continue to grow amid global economic recovery, Wang said.

China raises gasoline, diesel prices - China.org.cn

China has now become the biggest risk to the world economy

Far from taking over as the engine of growth from an exhausted West, China is making matters worse. Its "beggar-thy-neighbour" policies continue to play havoc with global trade and risk tipping the world into a second leg of the Great Recession.

By Ambrose Evans-Pritchard
Published: 6:21PM GMT 15 Nov 2009

President Obama said before going to China this week that Asia can no longer live by shipping goods to Americans already in debt to their ears Photo: AP
"The inherent problems of the international economic system have not been fully addressed," said China's president Hu Jintao. Indeed not. China is still exporting overcapacity to the rest of us on a grand scale, with deflationary consequences.

While some fret about liquidity-driven inflation, Justin Lin, World Bank chief economist, said the greater danger is that record levels of idle plant almost everywhere will feed a downward spiral of job cuts and corporate busts. "I'm more worried about deflation," he said.

By holding the yuan to 6.83 to the dollar to boost exports, Beijing is dumping its unemployment abroad – "stealing American jobs", says Nobel laureate Paul Krugman. As long as China does it, other tigers must do it too.

Western capitalists are complicit, of course. They rent cheap workers and cheap plant in Guangdong, then lobby Capitol Hill to prevent Congress doing anything about it. This is labour arbitrage.

At some point, American workers will rebel. US unemployment is already 17.5pc under the broad "U6" gauge followed by Barack Obama. Realty Track said that 332,000 properties were foreclosed in October alone. More Americans have lost their homes this year than during the entire decade of the Great Depression. A backlog of 7m homes is awaiting likely seizure by lenders. If you are not paying attention to this political time-bomb, perhaps you should.

President Obama said before going to China this week that Asia can no longer live by shipping goods to Americans already in debt to their ears. "We have reached one of those rare inflection points in history where we have the opportunity to take a different path," he said. Failure to take that path will "put enormous strains" on America's ties to China. Is that a threat?
It is fashionable to talk of America as the supplicant. That misreads the strategic balance. Washington can bring China to its knees at any time by shutting markets. There is no symmetry here. Any move by Beijing to liquidate its holdings of US Treasuries could be neutralized – in extremis – by capital controls. Well-armed sovereign states can do whatever they want.

If provoked, the US has the economic depth to retreat into near autarky (with NAFTA) and retool its industries behind tariff walls – as Britain did in the 1930s under Imperial Preference. In such circumstances, China would collapse. Mao statues would be toppled by street riots.

Mr Hu sounded conciliatory last week. China is taking "vigorous" steps to cut reliance on exports, still 39pc of GDP. "We want to increase people's ability to spend," he said.

Beijing is indeed boosting pensions and extending health insurance to the countryside so that people feel less need to save, but cultural revolutions take time. All we have seen so far are "baby steps", says Morgan Stanley's Stephen Roach.

The reality is that much of Beijing's $600bn stimulus has been spent building yet more plant and infrastructure so that China can ship yet more goods, or has leaked into property and stocks.

Credit has exploded. Allocated by Maoist bosses for political purposes, it has become absurd. China is rolling as much steel as the next eight producers combined. It is churning more cement than the rest of the world. Fixed investment is up 53pc this year. Once you know that Hunan authorities have torn down two miles of modern flyway so that they can soak up stimulus by building it again, or that the newly-built city of Ordos is sitting empty in Inner Mongolia, you know what must come next.

Pivot Asset Management said lending has touched 140pc of GDP, "well beyond" levels that have led to crises in the past. With the revolution's 60th birthday out of the way, the central bank has begun to tighten. New yuan loans halved in October. So be careful. Pivot said a hard-landing in China could prove as traumatic for world markets as the US sub-prime crash.

The world economy is still skating on thin ice. The West is sated with debt, the East with plant. The crisis has been contained (or masked) by zero rates and a fiscal blast, trashing sovereign balance sheets. But the core problem remains. The Anglo-sphere and Club Med are tightening belts, yet Asia is not adding enough demand to compensate. It is adding supply.

My view is that markets are still in denial about the structural wreckage of the credit bubble. There are two more boils to lance: China's investment bubble; and Europe's banking cover-up. I fear that only then can we clear the rubble and, very slowly, start a fresh cycle.

it is really amusing to read the such sour grape articles from west.

sometime, they scream that "china is to collaspe"!

suddenly ,they scream that " CHina is to make west collapse"....

are they the men ill of Schizophrenia?

Threat of trade wars is apparent. China won't be willing to concede when their entire economic model is based on cheap exports. If they relent, they collapse. Amerika will be forced to play their hand.

Well, that's the reality. Trade imbalance leads to trade wars. That's a fact.

How US is supposed to grow by depending on China/Japan/other countries lending. It will stop at one or the other time and that time is nearing. China has to buckle up for this occasion otherwise its economy will tank.

China has now become the biggest risk to the world economy

Far from taking over as the engine of growth from an exhausted West, China is making matters worse. Its "beggar-thy-neighbour" policies continue to play havoc with global trade and risk tipping the world into a second leg of the Great Recession.

"The inherent problems of the international economic system have not been fully addressed," said China's president Hu Jintao. Indeed not. China is still exporting overcapacity to the rest of us on a grand scale, with deflationary consequences. While some fret about liquidity-driven inflation, Justin Lin, World Bank chief economist, said the greater danger is that record levels of idle plant almost everywhere will feed a downward spiral of job cuts and corporate busts. "I'm more worried about deflation," he said. Obama: US borrowing will not spiral out of control By holding the yuan to 6.83 to the dollar to boost exports, Beijing is dumping its unemployment abroad – "stealing American jobs", says Nobel laureate Paul Krugman. As long as China does it, other tigers must do it too.

Western capitalists are complicit, of course. They rent cheap workers and cheap plant in Guangdong, then lobby Capitol Hill to prevent Congress doing anything about it. This is labour arbitrage. At some point, American workers will rebel. US unemployment is already 17.5pc under the broad "U6" gauge followed by Barack Obama. Realty Track said that 332,000 properties were foreclosed in October alone. More Americans have lost their homes this year than during the entire decade of the Great Depression. A backlog of 7m homes is awaiting likely seizure by lenders. If you are not paying attention to this political time-bomb, perhaps you should.

President Obama said before going to China this week that Asia can no longer live by shipping goods to Americans already in debt to their ears. "We have reached one of those rare inflection points in history where we have the opportunity to take a different path," he said. Failure to take that path will "put enormous strains" on America's ties to China. Is that a threat? It is fashionable to talk of America as the supplicant. That misreads the strategic balance. Washington can bring China to its knees at any time by shutting markets. There is no symmetry here. Any move by Beijing to liquidate its holdings of US Treasuries could be neutralized – in extremis – by capital controls. Well-armed sovereign states can do whatever they want.

If provoked, the US has the economic depth to retreat into near autarky (with NAFTA) and retool its industries behind tariff walls – as Britain did in the 1930s under Imperial Preference. In such circumstances, China would collapse. Mao statues would be toppled by street riotsMr Hu sounded conciliatory last week. China is taking "vigorous" steps to cut reliance on exports, still 39pc of GDP. "We want to increase people's ability to spend," he said.

Beijing is indeed boosting pensions and extending health insurance to the countryside so that people feel less need to save, but cultural revolutions take time. All we have seen so far are "baby steps", says Morgan Stanley's Stephen Roach. The reality is that much of Beijing's $600bn stimulus has been spent building yet more plant and infrastructure so that China can ship yet more goods, or has leaked into property and stocks.



Credit has exploded. Allocated by Maoist bosses for political purposes, it has become absurd. China is rolling as much steel as the next eight producers combined. It is churning more cement than the rest of the world. Fixed investment is up 53pc this year. Once you know that Hunan authorities have torn down two miles of modern flyway so that they can soak up stimulus by building it again, or that the newly-built city of Ordos is sitting empty in Inner Mongolia, you know what must come next. Pivot Asset Management said lending has touched 140pc of GDP, "well beyond" levels that have led to crises in the past. With the revolution's 60th birthday out of the way, the central bank has begun to tighten. New yuan loans halved in October. So be careful. Pivot said a hard-landing in China could prove as traumatic for world markets as the US sub-prime crash.



The world economy is still skating on thin ice. The West is sated with debt, the East with plant. The crisis has been contained (or masked) by zero rates and a fiscal blast, trashing sovereign balance sheets. But the core problem remains. The Anglo-sphere and Club Med are tightening belts, yet Asia is not adding enough demand to compensate. It is adding supply. My view is that markets are still in denial about the structural wreckage of the credit bubble. There are two more boils to lance: China's investment bubble; and Europe's banking cover-up. I fear that only then can we clear the rubble and, very slowly, start a fresh cycle.

China has now become the biggest risk to the world economy - Telegraph

People who get overwhelmed with China's relentless progress should have a look at the working conditions of the people as described in this report. Its downright inhuman.

Great post DD,

China practises modern day slavery!!!

well ,such a case indeed exist very popularly in chinese costal area.

I need not deny it .

however, although it is immoral,but it is inevitalbe during the early stage of industrilazaiton.....

those peasants workers work under strict disciplines ,not only for the better life of their families,but also for the better future of the country.

what they do should be repected .those peasant workers are the backbone of chinese economy miracle.without their devotion, CHinese would not suceed.

unlike your babu-like cold-blooded sarasim ,we are working hard to shorten such a terrible stage and make sure that China can provide a better life for our children.

And badguy2000 gets offencive when you call them labour camps...

China hints at higher purchases from US to please Obama

BEIJING: China has indicated it is ready to buy a lot more goods and services form the United States to help its economic recovery process. The indication came from Chinese premier Wen Jiabao, who told visiting US president Barack Obama on Wednesday that China was not trying to prove its capability to clock trade surpluses. "China does not pursue a trade surplus," Wen was quoted as saying.

"Lively global trade and investment will help to overcome the international financial crisis and accelerate global economic recovery," he said. Wen also said his government wanted to “encourage a steady balancing of bilateral trade".

The statement is seen as a clear hint that China was ready to expand imports from the US. What China wants in return was spelt out by Wen when he advised Obama to "oppose trade and investment protectionism". Chinese president Hu Jintao on Tuesday said the two countries should work to curb protectionism in trade.

Beijing has been opposing several restrictions placed on Chinese exports, the latest being the imposition of high tariffs on China made tires. The decision resulted in angry protests in China but the US is yet to withdraw or dilute the decision.

Wen’s assurance could be seen as a significant outcome of the 3-day visit of the US president, which is otherwise bereft of any specific deals or assurances on issues like the exchange rate of the Chinese currency.

Curiously, Osama stayed away from any discussion of the massive holding of US treasury bonds worth $800 billon by China. Osama the holdings give China some special levers in dealing with the US government.

"The $800 billion never came up in conversation, and the president dealt with every issue on his agenda in a very direct way and pulled no punches," Michael Froman, Obama's deputy national security adviser for international economic affairs, told reporters from his country. Obama told Wen he was pleased by the outcome of the visit as it has resulted in the deepening of relationship between the two nations.

“A relationship that used to be focused just on economic and trade issues is now expanding to deal with a whole host of global issues in which US-China cooperation is critical,” he said.

“We have had very productive discussions over the last two days. I think President Hu and myself agreed in our first meeting that we wanted to try to deepen the strategic partnership and relationship between the United States and China,” he said. Obama also get some assurance from China for co-operation in the efforts to curb the growth of North Korea’s nuclear capabilities and work together on the topic of climate change.

China hints at higher purchases from US to please Obama - China - World - The Times of India