Chinese Infrastructure and Energy Sector Megathread

[Hari Sud]

All these mega projects including BRI projects in China will slow down as US is importing less and lesser dollars are going back to China due to Trump imposed import duties. Already 2019 has witnessed 23% reduction in export to US and with devaluation of Yuan, US dollars going back to China are lower by 30%. Those reductions are likely to increase in future years, putting greater pressure on Chinese economy. Other major importers of Chinese goods like Europe will undergo similar changes. There is not a stampede but quite a few American companies are leaving China. The forgoing pressure is going to increase in coming years. The net impact is lesser and lesser cash for all the infrastructure projects which the Chinese would like to talk about. Moreover Chinese capability to copy technology without paying license fee or Royalty has been reduced, hence either China has to pay or the the West and the Russia will not sell them high technology items.

These dramatic changes are bad for Chinese economy. Hence President Clinton era of freedom to take away all consumer goods manufacturing to China is all gone. This has done a major damage to the deep manufacturing knowledge in the West. With all these changes which President Trump has imposed, some manufacturing will return back to the West or move to other countries in Asia. It is already happening in 2019.

 

[xizhimen]

All these mega projects including BRI projects in China will slow down as US is importing less and lesser dollars are going back to China due to Trump imposed import duties. Already 2019 has witnessed 23% reduction in export to US and with devaluation of Yuan, US dollars going back to China are lower by 30%. Those reductions are likely to increase in future years, putting greater pressure on Chinese economy. Other major importers of Chinese goods like Europe will undergo similar changes. There is not a stampede but quite a few American companies are leaving China. The forgoing pressure is going to increase in coming years. The net impact is lesser and lesser cash for all the infrastructure projects which the Chinese would like to talk about. Moreover Chinese capability to copy technology without paying license fee or Royalty has been reduced, hence either China has to pay or the the West and the Russia will not sell them high technology items.

These dramatic changes are bad for Chinese economy. Hence President Clinton era of freedom to take away all consumer goods manufacturing to China is all gone. This has done a major damage to the deep manufacturing knowledge in the West. With all these changes which President Trump has imposed, some manufacturing will return back to the West or move to other countries in Asia. It is already happening in 2019.

Much more mega project slated in 2020 than 2019.

China now is switching more to consumption driven economy, as for foreign money, they still come in in China but China invests more in overseas market, the whole situation had changed, and China's import and export still enjoy healthy growth. China has an increasingly wealthy 1.4 billion people, US doesn't have this luxury, that's why in the end, US will always yield.

China's FDI inflow up 6% in January-November period
https://www.shine.cn/biz/economy/1912137914/

 

[xizhimen]

China installs heated driveway system in Highway