Doom and Gloom of China's Economy

Discussion in 'China' started by Daredevil, Oct 4, 2011.

  1. Daredevil

    Daredevil On Vacation! Administrator

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    The Doom and Gloom of China's Economy that is being increasingly predicted by Economists. Instead of scattered posting of news and discussion on this topic, this thread should be used for the purpose of proper discussion and context of this topic.
     
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  3. Daredevil

    Daredevil On Vacation! Administrator

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    Small Companies Teeter as Beijing Tightens Lending

    By LINGLING WEI

    BEIJING—Troubles among small manufacturers in the bellwether Chinese city of Wenzhou are putting a cloud over a key part of China's economy, further shaking investor confidence and underscoring the stakes as Beijing tries to strike a balance between fostering growth and containing inflation.

    More than two-dozen small, private businesses in the eastern city known for its entrepreneurial success have gone belly up in recent days because they couldn't repay maturing bank loans, according to state media reports. Wenzhou officials on Thursday urged banks to limit lending rates and make more funds available to small businesses amid worries about a credit crunch.


    One of the businesses that closed this week was Zhejiang Xiang Yuan Steel Industry Co., state media said. A sales representative there who gave only his surname, Li, attributed the closure to pulled bank credit. He said the company had more than 100 employees, but he declined to comment further.

    Others expressed worry over the business environment in Wenzhou. "The government has promised support for private businesses for years, and I've heard enough of it," said Qu Guoning, who runs one of the hundreds of small makers of electric wires and cables in the city and is fretting about how he will fund a planned business expansion.

    The reports have added to downward pressure in China's stock and currency markets because Wenzhou was one of the first places to boom when China began to embrace private enterprise three decades ago and is considered the cradle of private-business ownership.

    "Numerous reports of debt distress in Wenzhou have contributed to the latest iteration of China hard-landing anxiety," said Tim Condon, Singapore-based chief Asia economist with ING Groep NV. "The fear is that Wenzhou is the tip of an iceberg."

    Further adding to worries over the small manufacturing sector, the HSBC China Manufacturing Purchasing Managers Index on Friday suggested manufacturing activity in September declined for the third straight time. The index is considered to be a gauge of the private sector's performance because it includes small companies. Analysts estimate the small- and medium-sized businesses in the private sector account for 80% of the country's jobs and more than half of economic output.

    Damaged also by broader global market turmoil, China's benchmark Shanghai Composite Index fell 6.12 points, or 0.3%, to 2359.22 points Friday, its lowest close since April 2009. In currency markets, traders sent the yuan lower against the U.S. dollar even as China's central bank guided the currency higher. The move tested the trading limits Beijing uses to quell currency volatility for the third straight day.

    China is constraining lending as part of its effort to tame inflation, which was spurred in part by its massive investment stimulus during the global financial crisis. But its clampdown on bank credit has put pressure on the private sector, leading to growing fears of a sharp slowdown of the economy that so far has served as a counterweight to weakened economies in the U.S. and Europe.

    Wenzhou, a city of more than 1.9 million people, rose to prominence over the years for making cigarette lighters but is now known for its heavy concentrations of everything from sophisticated electronics manufacturing to property development. Its 360,000 small- and medium-sized enterprises account for more than 90% of the city's industrial output, which amounted to 271.5 billion yuan ($42.4 billion) in the first eight months of this year, according to government estimates.

    But financial woes of its small manufacturers have intensified since last year, when China moved to rein in bank lending. Private companies—"which China's state banks have traditionally underserved in favor of lending to massive state-owned enterprises—have found financing increasingly hard to come by. In the first seven months of the year, Wenzhou enterprises posted a total of 640 million yuan (about $100 million) in losses, 220 million yuan more than a year earlier, according to local government data.

    Zhou Dewen, head of the Wenzhou Small- and Medium-sized Enterprises Promotion Association, a trade group, said "banks are lending at usurious rates" in some cases. A number of the businesses that have closed their doors in recent weeks are members of his group, Mr. Zhou said, though he declined to elaborate.

    Chinese officials have said repeatedly they don't anticipate a wave of small-company bankruptcies and have suggested ways to help the sector. In August, for instance, the National Development and the National Development and Reform Commission, China's top economic planning agency, unveiled new rules to encourage private companies to invest in what it calls "new strategic industries" including alternative energy, biotechnology and advanced equipment manufacturing, pledging that qualified private companies will be allowed to raise money by issuing bonds and stocks.

    Mr. Qu, owner of the company that makes wires and cables, said he is planning to expand his business into making household appliances, a line of business that promises greater profitability, but which would need "tens of millions" of yuan in investment. Financing, he said, is difficult to get.

    Mr. Qu said he is thinking about borrowing against the property he owns. "But the government's harsh crackdown on real estate has limited my ability to borrow using property as collateral," he said.
     
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  4. nimo_cn

    nimo_cn Senior Member Senior Member

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    what a great thread!
     
  5. Dovah

    Dovah Untermensch Senior Member

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    @CIr: While we appreciate Chinese progress, this is not the correct thread for it.
     
  6. agentperry

    agentperry Senior Member Senior Member

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    dear cir,
    the gloom is bought by big companies bringing in big changes and improvement. the articles, if you had read highlighted about the apathy of small and medium size companies. what all you are showing or posting is only showing big company's big performance and achievement or in 1-2 cases the human development index activities.
    this articles is written with SME in mind. not big companies like huawei or zte or geely or lenovo.
     
  7. Daredevil

    Daredevil On Vacation! Administrator

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    It seems the thread has riled up some Chinese members.

    Anyways, the purpose of the thread is for the analysis of Chinese economy failures as reported in the news.

    Please post all other Chinese economy related (positive or otherwise) in the existing China Economy Thread

    Cir, I have moved all your non-relevant posts to the China Economy Thread. So, please stay on topic. You can refute the points in the news but don't try to divert the topic with your overwhelming irrelevant posts.
     
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  8. Daredevil

    Daredevil On Vacation! Administrator

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    China Banks Shunned as Investors Eye 2003 Low in Credit Bust

    Sept. 27 (Bloomberg) -- The cheapest Chinese bank stocks since 2004 may drop further as the three-year credit boom that created the world's most profitable lenders shows signs of turning into a bust.

    The MSCI China Financials Index sank 24 percent this month, falling more than benchmark bank gauges for Europe, the U.S., Japan and emerging markets. Valuations in China dropped below levels reached during the global financial crisis for the first time last week, even after Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. said first-half profits hit a record and analysts raised forecasts for next year.

    While banks in the MSCI index reported $104 billion of earnings in the past 12 months, bad loans to local governments, a fading real estate boom and slower economic growth are making some of the most successful investors bearish. Jim Chanos, the short seller who predicted Enron Corp.'s collapse, says Chinese banks will fall below the value of their net assets for the first time since December 2003, from an average premium of about 20 percent. Fund managers at Vontobel Asset Management Inc. and International Value Advisers LLC who beat 99 percent of peers this year are avoiding the stocks.

    Five Times Faster

    “China's economy is very distorted, and the banks, as ever, are at the epicenter of the distortions,” Edward Chancellor, who helps oversee about $106 billion as a strategist at Grantham Mayo Van Otterloo & Co. in Boston and warned of a “sucker's rally” in Chinese stocks three days before the benchmark index peaked in August 2009, said in an interview. “If China runs into problems with the banking system, which I think it will, I cannot see a situation in which foreign investors are the main priority of Beijing.”

    The tumble in Chinese bank shares has surprised equity analysts, who have more positive recommendations on the Asian country's financial stocks than in any of the world's other 10 biggest markets. It contrasts with a Chinese economy that's expanding more than five times as fast as Europe and the U.S.

    Bad debts may cut China's growth rate to near zero from 9.5 percent, hurting a global economy that's already weighed down by Europe's sovereign debt crisis and a stagnant U.S. job market, according to Chanos, founder of New York-based hedge fund Kynikos Associates LP.

    ‘Not Touching' Banks

    China has led the recovery from the worst recession since the 1940s, contributing more than 30 percent to global growth last year, after the central government ordered state-owned banks to increase lending and encouraged local governments to boost spending on infrastructure and housing. New loans in China since September 2008 totaled $3.8 trillion, while fixed-asset investment surged at an average pace of 28 percent during the period. Property prices have climbed about 60 percent since the end of 2006, according to the International Monetary Fund.

    “The main concern we have, and the reason we're not touching the banks, is we're not sure that the Chinese economy is sustainable as it is,” said Charles de Lardemelle, whose $2.3 billion IVA International Fund slipped 5 percent this year through Sept. 23, compared with an 18 percent average drop for peers, according to data compiled by Bloomberg. Similar surges in credit and investment in Japan, Thailand and South Korea all ended with a collapse in economic growth, he said in a phone interview from New York.

    Severe Outlook

    Evidence is building that Chinese property developers and local government financing vehicles, used to get around laws prohibiting direct borrowing, are struggling to repay their obligations as the economy slows. About 85 percent of the government financing vehicles in China's Liaoning province, on the border with North Korea, had insufficient income last year to cover debt-servicing payments, according to a July speech by the provincial auditor.

    Chinese developers face an “increasingly severe” credit outlook, which may force them to cut prices and turn to costlier funding sources as sales weaken, Standard & Poor's said in a report today after conducting stress tests of the nation's real estate companies.

    Developers are paying as much as 25 percent interest to borrow from private trust companies as banks withdraw credit, said an official at Beijing-based National Trust in May who asked not to be identified because he isn't authorized to speak to the media.

    Bonds of Guangzhou-based Evergrande Real Estate Group Ltd., China's second-biggest developer by sales, fell to 76 cents on the dollar last week from 109 cents at the start of the year, sending yields to a record 24 percent, according to Bloomberg data.

    ‘Worst Isn't Over'

    A 30 percent decline in sales may leave many developers facing a liquidity squeeze, S&P said. Most developers would be able to “absorb” a 10 percent sales drop next year, the credit rating company said.

    “The worst isn't over for China's real estate developers,” S&P analysts led by Frank Lu wrote in the report. “Developers are bracing themselves for slower sales and lower property prices ahead.”

    A gauge of Chinese manufacturing compiled last week by HSBC Holdings Plc and Markit Economics showed the industry may shrink for a third month in September, the longest contraction since 2009. China's nonperforming loans may rise as high as 30 percent of total debt, Fitch Ratings said in April.

    Falling Valuations

    Tumbling valuations for Chinese bank stocks signal increasing concern that bad debt will erode earnings. ICBC, the world's most-profitable lender and the biggest bank by market value, dropped 17 percent in Hong Kong trading last week to 6 times reported profits, the lowest level on record. The stock trades for 1.3 times book value, or assets minus liabilities, an all-time low, according to Bloomberg data.

    Agricultural Bank of China Ltd., the nation's third-biggest lender by market value, and Bank of China, the fourth-largest, have record low price-to-earnings ratios, the data show. China Construction Bank Corp., the No. 2 lender by market value, and China Merchants Bank Co., the sixth-biggest, trade at the lowest valuations since the global financial crisis. All five banks are state-controlled.

    Regulators have taken steps to curb risks from the nation's record lending boom, and a repeat of the bad debts that led to a $650 billion bailout last decade is “impossible,” China Merchants Bank President Ma Weihua said in a Sept. 14 interview. Press officers for ICBC, China Construction Bank, Agricultural Bank of China and Bank of China declined to comment, as did an official from the China Banking Regulatory Commission.

    Price-to-Book

    The MSCI China Financials Index, which has a 63 percent weighting in bank shares and includes insurers and property companies, dropped to 1.2 times book value last week, the lowest since January 2004, according to Bloomberg data. The index is trading at a discount to the MSCI Emerging Markets Financials Index for the first time since January 2006.

    The China gauge's price-to-book ratio has fallen 47 percent this year, more than the 36 percent decline for Europe's Stoxx 600 Banks Index, which trades at 0.6 times book value. European banks may face a 400 billion-euro ($540 billion) capital shortfall because of losses tied to indebted governments including Greece, according to Nomura International Plc.

    The Stoxx banks index and the Standard & Poor's 500 Financials Index both dropped 11 percent this month, while the MSCI Japan Financials Index lost 6.3 percent and the MSCI Emerging Markets Financials Index declined 20 percent.

    ‘Lot of Headwinds'

    Shares of Chinese banks “can still go a lot lower,” said Chanos, who bet on a decline in Enron shares before the company filed for bankruptcy in 2001. Kynikos is selling short “virtually all of the large banks in China,” he said, without naming specific companies. In a short sale, an investor borrows a security and sells it, expecting to profit from a decline by repurchasing it later at a lower price.

    For Chinese banks, “we don't think valuations are clear- cut, even though they trade on cheap price-to-earnings and price-to-book ratios,” said Amit Mehta, a London-based senior vice president on the emerging-markets equities team at Pacific Investment Management Co., which is “underweight” Chinese bank stocks and oversees about $1.3 trillion worldwide. “There are a lot of headwinds for the earnings outlook,” he said.

    The MSCI China financials index jumped 6.5 percent today amid a rally in global equities as European policy makers increased efforts to contain the region's sovereign-debt crisis.

    Buying Chinese bank shares near current valuations proved profitable in 2008 after Premier Wen Jiabao's government unveiled a stimulus package and increased lending to spur economic growth. The MSCI China Financials Index jumped 96 percent in the 12 months after the plan was announced on Nov. 9 of that year, with shares of Bank of China climbing more than 120 percent.

    Nonperforming Loans

    China's stimulus in any world economic slump is unlikely to be more than half the nation's estimated 9.3 trillion yuan ($1.5 trillion) fiscal and monetary expansion from November 2008 through 2010, according to Ma Jun, a Hong Kong-based economist at Deutsche Bank AG. China has $3.2 trillion of foreign-exchange holdings, the world's biggest hoard, according to data compiled by Bloomberg.

    A growing Chinese economy will help limit the rise in nonperforming loans to between 3 percent and 4 percent of total debt by the end of 2013, up from the current level of 1 percent, said Mike Werner, a bank analyst at Sanford C. Bernstein & Co. in Hong Kong who has “outperform” ratings on ICBC and China Construction Bank. Profits in the MSCI China Financials Index will probably climb 12 percent in the next 12 months, according to analysts' estimates compiled by Bloomberg.

    ‘Soft-Landing Scenario'

    China maintained economic growth of at least 7.6 percent in the late 1990s, even after nonperforming loans jumped to more than 40 percent of the total, according to Bloomberg data and “Red Capitalism” authors Carl E. Walter and Fraser J.T. Howie.

    “The chance of having a banking crisis in China is rather low,” Stanley Li, an analyst at Mirae Asset Securities (HK) Ltd. in Hong Kong, said in an interview. “If nonperforming loans shoot up, profit will fall, but we are likely to see a soft-landing scenario. The government will step in and won't let the system collapse.”

    Some Chinese lenders still have bad loans on their balance sheets from previous banking crises, and the debt the central government is “implicitly” backing through state-owned companies and local government entities has climbed to about 200 percent of China's gross domestic product, on a par with some European nations, Chanos said in an interview.

    The surge in Chinese debt exceeded credit expansions in the U.S. before its financial crisis, in Japan before its stock and property bubbles collapsed in 1990 and in South Korea before the Asian financial crisis of the late 1990s, according to Fitch.

    Loans to Developers

    Chinese lenders are exposed to a potential drop in real estate prices after the government cracked down on speculative purchases and restricted new credit to developers, according to Rajiv Jain, who oversees about $15 billion at New York-based Vontobel Asset Management Inc.

    The CBRC told lenders in July not to extend the maturity of loans to developers and not to grant new credit to help developers repay maturing debt. The regulator is also looking into financing of developers through trust companies as part of a broader evaluation of real estate lending, a person familiar with the matter said last week.

    China's home prices were “basically unchanged” in August from a month earlier, according to SouFun Holdings Ltd., the nation's biggest property website.

    “There's already a very frothy asset market with real estate,” Jain, whose $1.9 billion Virtus Emerging Markets Opportunities Fund outperformed the MSCI Emerging Markets Index by 15 percentage points this year, said in an interview. “They don't have a lot of maneuvering room on the policy side.”

    More Capital

    Chinese banks may have to raise more capital to support their expansion of lending and increase their cushion against bad loans, according to Nicholas Yeo, the Hong Kong-based head of China and Hong Kong equities at Aberdeen Asset Management Plc, which oversees about $298 billion. That will add to the supply of shares and may weigh on prices, he said.

    ICBC's Tier 1 capital ratio, a measure of financial strength, was 9.82 percent as of June, down from 10.8 percent in 2008, according to data compiled by Bloomberg. Bank of China's ratio fell to 10 percent from 10.8 percent.

    Banks' funding costs are rising in the short-term lending markets, with China's seven-day repurchase rate climbing to 3.8 percent yesterday from about 2 percent a year ago. The rate surged to 9 percent in June, the highest level since October 2007, according to Bloomberg data.

    “We'd rather stay away from the big four banks,” said Yeo. “There's still a lot of overhang in the market.”

    --With assistance from Stephen Engle, Daryl Loo, Dingmin Zhang and Paul Panckhurst in Beijing, Bonnie Cao in Shanghai, Allen Wan, Leon Lazaroff and Fabiola Moura in New York and Weiyi Lim in Singapore. Editors: Robert Friedman, Stephen Kirkland
     
  9. Daredevil

    Daredevil On Vacation! Administrator

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    Turmoil Stings Yuan Bonds

    By LINGLING WEI in Beijing and CAROL CHAN in Hong Kong

    Turmoil in global financial markets has taken a toll on one unlikely victim: the burgeoning market for Chinese-yuan bonds issued offshore.

    Over the past few days, investors have sold yuan-denominated debt that had been issued in Hong Kong—dubbed dim sum bonds—for the comfort of the U.S. dollar, according to traders and analysts. The selling has introduced some volatility into a nascent market that has been key to Beijing's effort to expand the use of its currency.

    The dim sum bond market previously had been booming, with investors betting on continued appreciation of the Chinese currency, and businesses and government entities raising capital to take advantage of the relatively low borrowing costs there. Any persistent selloff, analysts say, could complicate capital-raising efforts by China's state-owned banks, which have been among the biggest yuan-debt borrowers, at a time when they are planning fresh fund raising.

    "Even the dim sum market, the most resilient by far, has caved into the market contagion," said Becky Liu, a Hong Kong-based strategist at HSBC Holdings PLC who also said the selling has been broad-based.

    Trading volume in the young dim sum market remains thin, making it hard to get reliable valuations for such bonds. But HSBC estimates that total returns on dim sum debt for the year to date—including price and currency changes as well as coupon payments—had fallen to 1.2% in U.S. dollar terms as of late Monday from 4.5% a few weeks ago. Most of that decline came from weakening in the value of the yuan traded in Hong Kong, but analysts say selling pressure also pushed down debt prices.

    The selling has caused some issuers to delay planned dim sum debt issuance, including Khazanah Nasional Bhd., the Malaysian government's investment-holding arm, people familiar with the situation said last week. A Khazanah spokesman declined to comment Tuesday.

    Even bonds issued by China's government have been hit. The three-year dim sum bond sold in August by China's government with a 0.6% coupon is now yielding 0.85%. The bond is now selling for the equivalent of 99.3 cents on the dollar.

    Among the sellers have been some dollar-denominated hedge funds that bought dim sum debt with yuan converted from their dollar holdings, according to several market participants. Those funds typically would hedge their currency risk by trading derivatives that track the value of the yuan. But in the past week, selling pressure on the yuan traded in Hong Kong has made it difficult for those dollar funds to hedge their positions, leading some of them to liquidate their dim sum debt holdings.

    "They're forced to cut their positions as the hedging didn't work anymore," said a Hong Kong-based trader.

    Not surprisingly, debt issued by businesses with weaker credit ratings has especially suffered. Road King Infrastructure Ltd., a Hong Kong-listed operator of toll roads in China that sold 1.3 billion yuan ($203 million) of dim sum debt in February, paid 6% on the bond. Now, the bond is yielding between 13% and 15%, according to traders. Road King's debt is rated below investment-grade by both Standard & Poor's and Moody's Investors Service. Road King Executive Director Derek Zen Wei-peu said the selling of the company's bond was mainly due to investors trying to hold cash amid broader market panic.

    Since last year, a growing number of Chinese and foreign businesses, including banks, property companies and manufacturers, have loaded up on cheap capital denominated in China's currency by tapping the Hong Kong market.

    China's government encouraged the trend as part of its efforts to expand the use of the yuan beyond its borders. Today, dim sum bonds outstanding total about 198 billion yuan, or $31 billion.

    In recent months, Chinese banks, in particular, have flocked to the dim sum market. But the heightened volatility in the market could push up their borrowing costs going forward, analysts say.

    On Wednesday, Industrial Commercial Bank of China Ltd., the nation's largest lender by assets, said it plans to sell up to 70 billion yuan of subordinated, or junior, debt by June 30 to boost its capital base. The bank said it will sell the debt either in the mainland market or in Hong Kong, depending on market conditions. HSBC estimated in June that total new dim sum debt issuance this year would reach between 180 billion yuan and 230 billion yuan, as tight credit controls on the mainland would prod more Chinese companies to borrow offshore.

    While the yuan has weakened recently in Hong Kong, its value has remained strong in China's onshore market, which is controlled by the government. The yuan gained against the dollar in Tuesday trading in Shanghai, after the central bank set its daily reference rate just slightly below Monday's record level.
     
  10. Daredevil

    Daredevil On Vacation! Administrator

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    So, investors are shunning Yuan for Dollar denominated bonds. Speaks volumes about the strong-hold of Yuan.
     
  11. Daredevil

    Daredevil On Vacation! Administrator

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    Chinese property boom starts to wobble

    By Robert Cookson in Hong Kong

     
  12. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    As long as they continue to manufacture like that, their economy is going nowhere unless and until their buyers turn poor and force the domestic population to actually increase their spending to compensate for the loss of consumers in western world.
     
  13. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Suicides in Wenzhou link to Chinese defaults

    Leo Lewis, Beijing
    The Times
    October 05, 201

    Chinese shadow banking has been the only thing propping up SMEs. Now we watch the waves as they collapse.
     
  14. Naren1987

    Naren1987 Regular Member

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    I agree, I can't understand the difference between the quality of 'Made in Han PRC' vs the quality of 'Made in Han Singapore' or 'Made in Han Taiwan'
    I'm sure the Chinese are smart enough to realise that More is NOT better.
    PS:
    I give full credit to the PRC for lifting Billions out of poverty, however, they really need to work on this sphere.
     
    Last edited: Oct 4, 2011
  15. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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  16. DMF

    DMF Regular Member

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    Dear friend, for many instances the quality of products have nothing to do with mainland China or Taiwan, or Singapore, the market matters, different market needs different quality. The importing market affect the economy of exporter, not the quality, the USA not complain about quality, they complain about China RMB exchange rate against USD, this matters my dear, this is the real problem with China, you know, the exchange rate not matters, the salary of workers really matter, the USA say China manipulate exchange rate result in their job loses, and will punish China, not because China products are at low quality, if at low qualtily, will lost market, then the problem will not with China you know. But the truth is that even RMB double the value, the job will not return back to USA, but USA like India to take over China’s jobs, because China has money, and refuse to be cut by the wall street bankers, the wall street is now in a turmoil, so the USA needs to feed another sheep fat to kill in near future.

    The USA only have little more than 10million people work in manufacture, finance is their business, the USA sell bonds to print money, sell bonds have to pay interests, but the States in deficit, have to make money by wall street bankers,do you know the financial crisis in south America when Argentina got bankrupt and then the 1997 south east Asia financial crisis? Quality have little to do with economy, believe me
     
  17. huaxia rox

    huaxia rox Senior Member Senior Member

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    my indian friend....i m helping u bump this thread up in case no 1 can find this thread.....anyway i suggest u to define the term of 'Doom and Gloom of China's Economy '......what is doom? economy cant grow? or grow slower? or going down? or the country going to collapse? and the standard should also be applied to other countries.....for example can i make the same statement like ''Doom and Gloom of the US's Economy '' or 'Doom and Gloom of the EU's Economy ' or ''Doom and Gloom of japan's Economy ''???and so on and so forth..............
     
  18. Ray

    Ray The Chairman Defence Professionals Moderator

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    Take three guesses!
     
  19. Ray

    Ray The Chairman Defence Professionals Moderator

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    "Mind Your Language" (1977) - Memorable quotes

    Isn't Chairman Mao and China cute.

    They invented the world!
     
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  20. Ray

    Ray The Chairman Defence Professionals Moderator

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    China is a great nation.

    Watch this!

    Even so, he did great things for China!


    After Chairman Mao, China has become no better than a capitalist roader and a running dog, what they accused others of having become.

    The Communist party leaders and their relatives have become rich capitalists soaking the blood and sweat of the common Chinese, especially the peasants and the workers!

    China is no longer the China that was an example to the workers and peasants of the world!

    They are no good for the oppressed people of the world!
     
    Last edited by a moderator: May 10, 2015
  21. Daredevil

    Daredevil On Vacation! Administrator

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    Please make it.

    Let me help you with doom and gloom with a dictionary definition

    Doom

    1. Inevitable destruction or ruin.
    2. Fate, especially a tragic or ruinous one.

    Gloom


    a. An atmosphere of melancholy or depression:
    b. A state of melancholy or depression; despondency.
     
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