China's economy is very sick. What to prepare for?

[DrBeer]

Another blow to China's economy.
“The European Union imposed anti-dumping duties on Chinese electric cars on July 4, as expected. To be more precise: the EU turned on the meter. From July 5 until November, the protective duties will accrue, but importers will not have to pay them, only guarantee that they will remit the full amount accrued if Brussels and Beijing fail to find a mutually acceptable compromise by then. An intensive search for such a compromise has been underway since June 22 and will continue after the current conditional imposition of duties, both sides immediately emphasized. So this is not yet a full-scale trade war with hard-to-predict economic and political consequences, but only a preparation for it. A warning shot.”

What does that mean ? It means that China will incur additional costs, for one of the largest sectors of the economy, as China's auto industry is a purely subsidized segment, which Beijing has been supporting, for “comfortable expansion” in the world market. As the real estate market continues to collapse, it looks like China's auto industry will follow. And this is overproduction, production freeze, unemployment, burden on the budget, growth of expenditures....

[DrBeer]

Interesting observations from China:
China is losing money at a record pace and on its way to an even bigger collapse.
Foreign investors withdrew a record amount of money from China in the last quarter. This is most likely their reaction to pessimistic forecasts for the world's second economy. Just between April and June 2024, China's direct investment liabilities in its balance of payments fell by nearly $15 billion dollars. This is evidenced by data from the State Administration of Foreign Exchange Control, which was released last Friday. At the same time, the figure decreased by 5 billion dollars in the first 6 months. According to preliminary data from the Ministry of Commerce, new direct investment in China from foreigners during the first half of the year was the lowest since the pandemic began in 2020.

[0t3p0t]

Interesting observations from China:
China is losing money at a record pace and on its way to an even bigger collapse.
Foreign investors withdrew a record amount of money from China in the last quarter. This is most likely their reaction to pessimistic forecasts for the world's second economy. Just between April and June 2024, China's direct investment liabilities in its balance of payments fell by nearly $15 billion dollars. This is evidenced by data from the State Administration of Foreign Exchange Control, which was released last Friday. At the same time, the figure decreased by 5 billion dollars in the first 6 months. According to preliminary data from the Ministry of Commerce, new direct investment in China from foreigners during the first half of the year was the lowest since the pandemic began in 2020.

Is this the reason why they are now more vocal about BRICS? Datas like that are interesting as we can rarely see records or news about the status of China's economy dwindling from their local news outlet maybe because of propaganda's or maybe I am wrong here but seems China is too clever for this kind of game.
This is just my observation because in WPS they are too agressive and hostile but they are using some sort of reverse psychology and hypocrisy that is why they are not reliable when it comes to information because it has been natural to them to have staged act or publication.

[DrBeer]

Interesting observations from China:
China is losing money at a record pace and on its way to an even bigger collapse.
Foreign investors withdrew a record amount of money from China in the last quarter. This is most likely their reaction to pessimistic forecasts for the world's second economy. Just between April and June 2024, China's direct investment liabilities in its balance of payments fell by nearly $15 billion dollars. This is evidenced by data from the State Administration of Foreign Exchange Control, which was released last Friday. At the same time, the figure decreased by 5 billion dollars in the first 6 months. According to preliminary data from the Ministry of Commerce, new direct investment in China from foreigners during the first half of the year was the lowest since the pandemic began in 2020.

Is this the reason why they are now more vocal about BRICS? Datas like that are interesting as we can rarely see records or news about the status of China's economy dwindling from their local news outlet maybe because of propaganda's or maybe I am wrong here but seems China is too clever for this kind of game.
This is just my observation because in WPS they are too agressive and hostile but they are using some sort of reverse psychology and hypocrisy that is why they are not reliable when it comes to information because it has been natural to them to have staged act or publication.

Let's start with the BRICS. I don't know about others, but for some reason I have noticed a decline in information on “Brics is the new pole of the world”, “BRICS de-dollarizes the world”, etc. headlines that have been very active since the spring of this year. Back then, news about BRICS was pouring out of all sockets. And then it abruptly stopped. This surprisingly coincided with China's failure to impose its yuan on the BRICS as a “perfect substitute for the dollar.
Regarding China's economy and official figures. This is precisely the most manipulative body - official statistics. Didn't you notice the “surprising adjustment of indicators” of economic growth after economists said that China needs GDP growth of at least 5% ? And somehow the 3.5% figure suddenly became 5.5%
The same is true for all other indicators - they are talked about but cannot be verified, because most economic indicators are closed for free access or classified at all, such as ZVR of the National Bank of China.

[DrBeer]

China is trying its last-ditch effort to save the economy... And the methods can hardly be called “saving”, it is more like “postponing the problem”, or postponing the problem to a future period.

“China is considering next week approving the issuance of more than 10 trillion yuan ($1.4 trillion) of additional debt over the next few years to revive its fragile economy, Reuters reports"

https://www.reuters.com/world/china/reaction-reuters-report-chinas-stimulus-plans-2024-10-29/

What do you think - what can the increase in government debt lead to, against the backdrop of huge corporate debt of Chinese companies, and huge debts of Chinese households ?

[Agbe]

It's no secret that after the Kovid pandemic, China's economy has been hit pretty hard. Further problems were a continuation of the economic confrontation with the U.S., which was not a smart move on China's part, as overestimating its strength is the biggest mistake.
Then there was (and now the problem continues) Evergrande and in general the real estate market and related sectors of the economy....

I don't know motives the person who created this thread but looking at it I can tell your having some affiliation with the west and America because the truth of the matter is that there's nothing wrong with the Chinese economy all these are propaganda being fueled by the west and their allies in making sure that china is seem as a week country that is struggling to the outside environment because they know that china is a direct threat to them in the world events so they will do everything possible to make sure that china is seen as week country

[rachael9385]

Sometimes great countries face these challenges and overcoming such shows the level of understanding and strength the economy and it's citizens has. I'm not a Chinese but I trust china to be back to their feet soon.
Asking about how it affects global economy? There are some countries whom highly import their goods from china maybe their products are very cheap and affordable for them but since the tragedy has hit the china market those business men won't relent and may aim to go elsewhere then buy it costly and that already has affected the actual price whereby adding another hike to the price of goods in that country.
Then talking about how it affects crypto world? I don't think it has any effect on crypto world cause the Chinese government bans the activities of crypto in their country, so there is no effect on crypto world.

[DrBeer]

Sometimes great countries face these challenges and overcoming such shows the level of understanding and strength the economy and it's citizens has. I'm not a Chinese but I trust china to be back to their feet soon.
Asking about how it affects global economy? There are some countries whom highly import their goods from china maybe their products are very cheap and affordable for them but since the tragedy has hit the china market those business men won't relent and may aim to go elsewhere then buy it costly and that already has affected the actual price whereby adding another hike to the price of goods in that country.
Then talking about how it affects crypto world? I don't think it has any effect on crypto world cause the Chinese government bans the activities of crypto in their country, so there is no effect on crypto world.

When it comes to the Chinese themselves, they are a people worthy of respect and a good life. And they are not the problem. The problem is the government and its attempts to turn towards totalitarianism with the pressure on economic freedoms. You can read about the reasons why, for example, the Evergrande problem arose, and who initiated and “sponsored” the construction of ghost towns just to show “economic growth”. I am afraid that with the current vector of China, set by the CCP, the problems will only worsen, which is what we are seeing in the next 2-3 years.