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  1. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    Give me a break. People have been discussing China's SOEs for 40 years. They don't go bankrupt and the debt doesn't matter. China's SOEs (such as steel manufacturers) are national companies designed to provide jobs. The Chinese government is flush with cash (e.g. $550 billion annual trade...
  2. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    No. You do not understand the concept of a government owing money to itself. Let me explain it in simple terms. Assume you create a company. Let's call it Steel Inc. You loan $1,000 to Steel Inc. Steel Inc. now has $1,000 of debt and it uses the money to create a steel business by buying...
  3. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    No. You are the one who clearly does not understand that deficit means an incurred debt. A foreign trade deficit means that India OWES MONEY to other countries in US dollars. A deficit is a debt that must be paid. Thus, India's trade deficit is a main reason for its almost-junk-level credit...
  4. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    Many countries owe their debt in foreign currency. Thus, they have a very poor credit rating. For example, India's credit rating is BBB- (which is only one step above junk level). The reason is that India has a huge trade deficit of about $100 billion annually, which is denominated in US...
  5. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    I've already said that China's exports as a percent of GDP was about 20%. Your cited figure of 24% is not that different from my own calculation. I don't think it's worth arguing over 4%. However, your original claim that China's exports were 40% of GDP is still completely wrong. ----------...
  6. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    You are completely wrong. China's 2016 nominal GDP was $11.2 trillion. China's exports are about $2 trillion. That's less than 20%. Not the 40% that you are claiming. A more accurate view is to look at China's trade surplus. Since Chinese exports (machine tools, electrical equipment, etc.)...
  7. Martian

    China's (US$8,480) nominal per-capita GDP surpasses Mexico (US$7,993)

    This year is coming to a close. So what's new in economic news? Well, China's US$8,480 nominal per-capita GDP has moved beyond Mexico's US$7,993 (see IMF citation below). This is interesting for a variety of reasons. Mexico joined NAFTA in 1994. Mexico had 23 years to develop its industries...
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