China Economy Forum

[Fahad Khan 2]

 

[banvanaxl]

In our media we only focus on our own performance versus our performance of last year, last month and our target.
Hardly another nation is mentioned for a comparison

Sound lame doesn't it

Well mate thats one of the advantages you have living in a country with state owned media. In India you have 87236728647285675 news papers,magazines, news channels and radio networks e-papers .. blah blah and blah .. all vying for the same piece of the pie.

You can't sell without creating sensation or controversy .. and thats exactly why you have stuff like the above written piece.

Like I said .. bloody lame .. but there you have it. :/

 

[shuttler]

Sound lame doesn't it

Well mate thats one of the advantages you have living in a country with state owned media. In India you have 87236728647285675 new papers, news channels and radio networks all vying for the same piece of the pie.

You can't sell without creating sensation or controversy .. and thats exactly why you have stuff like the above written piece.

Like I said .. bloody lame .. but there you have it. :/

I dont think that is the main issue
We have our own self to beat, for better or worse we deal with it
Our media hardly mention anything about our neigbour's economic performance. Not even that was high on our agenda on internet forums. Only on very contentious issues like what we are dealing with japan over the territorial claims then we have a random comparison. On normal periodic reporting we never single one country out for comparison

 

[banvanaxl]

I dont think that is the main issue
We have our own self to beat, for better or worse we deal with it
Our media hardly mention anything about our neigbour's economic performance. Not even that was high on our agenda on internet forums. Only on very contentious issues like what we are dealing with japan over the territorial claims then we have a random comparison. On normal periodic reporting we never single one country out for comparison

But you do see why .. right ?

News sells, controversial/uncomplimentary news sells way more than regular news.
As somebody living outside India I'd say its stupid to sensationalise an article just to attract more clicks/readers but as an Indian I'd say .. alright atleast we've got free press

Its all very screwed up ..

 

[shuttler]

I may draw this as the perpectives of how China and india look at matters differently

Last week the first major badminton tournaments kicked off in the new year in South Korea
It was a regret for Team China!

We only have these results:

tournamentsoftware.com - Victor Korea Open 2014 - Matches

Check our by dating back the performance of indian players

and I remembered very well in one or 2 tournaments of last year or earlier where indian players beat our top ranked players randomly in a game or 2 and immediately the huge eruption of euphoria around your towns!

 

[banvanaxl]

Well either model has it's pros and cons.
While you may not be getting the whole picture from your news agencies, We get a very biased picture. Either it is painted in a way so awesome you are like .. "Omg we are so uber" or written in a way that makes you go "I feel like my granny just died".

If you think that is bad you should watch some of our news channels viz Zee News or news 24.. all the anchors speak with a faux baritone. They maybe reading out a news bit about a tuppeny burglary but their tone will have you imagine somebody just nuked Delhi ...

 

[shuttler]

China saves Volvo and makes it profitable!

Volvo chief says company returned to profitability in 2013| Reuters

Samuelsson attributed the turnaround to Volvo's successful restructuring of its distribution network in China, which led to a 46 percent boost last year in volume in that country to 61,146 vehicles, as well as to an overhauling of its cost structure globally.

 

[BoQ77]

Each China use China phone, then Huawei has steady huge sale of their smartphone.
Btw, my brother in law using Huawei ...

My current trust in Sony smartphone, because as I checked by myself, Samsung smartphone is not good enough.

For Flatscreen TV, it's Sharp not Samsung, LG, Chinese brand, ... is the good quality TV.

So as a consumer, at this moment, I tend to change my like back to Japan brand !!!
Quality over the Quantity ... ( so bestselling is not what make sure the good ).

 

[cirr]

Tuesday, January 14, 2014 - 21:31

China 2013 FX Reserves Rise A Record $508 Bln To $3.82 Tln

BEIJING (MNI) - China's pile of foreign exchange reserves rose a record $508 billion in 2013 to $3.82 trillion, People's Bank of China data released Wednesday suggested.

Reserves rose $157.3 billion in the fourth quarter alone, according to MNI calculations of PBOC full-year data.

That compares with $166 billion during the third quarter, while 2013's full-year rise dwarfed the previous year's $130.44 billion and was greater than the previous record, set in 2007, of $462 billion.

In a sharp reversal of 2012's difficult conditions, including an unprecedented spate of outflows, Chinese authorities last year were grappling with a sizeable influx of capital which had been stirred by a combination of wavering over tightening at the Federal Reserve and China's relatively high interest rates and currency appreciation.

People's Bank of China Vice-Governor Yi Gang said recently that the costs of foreign exchange reserve accumulation now outweigh the benefits. His comments indicate that Beijing's appetite for market interventions to hold down the yuan is fading, though analysts are sceptical.

Despite background noise about outflow risks associated with Fed tapering and Beijing's ambitious capital account reform plans, Capital Economics in London has forecast another $500 billion rise in foreign exchange reserves this year.

The yuan was trading at 6.0439 shortly after Wednesday's data release, off Tuesday's record post-reform closing high of 6.0412.

MNI | China 2013 FX Reserves Rise A Record $508 Bln To $3.82 Tln

 

[cirr]

Villagers from Jianshe Village in a remote corner of Sichuan province distributing year-end cash bonus：

All 100 yuan ($16.55) bills.

The fund is out of the village's Farming Cooperative。

 

[my2cents]

Tuesday, January 14, 2014 - 21:31

China 2013 FX Reserves Rise A Record $508 Bln To $3.82 Tln

BEIJING (MNI) - China's pile of foreign exchange reserves rose a record $508 billion in 2013 to $3.82 trillion, People's Bank of China data released Wednesday suggested.

Reserves rose $157.3 billion in the fourth quarter alone, according to MNI calculations of PBOC full-year data.

That compares with $166 billion during the third quarter, while 2013's full-year rise dwarfed the previous year's $130.44 billion and was greater than the previous record, set in 2007, of $462 billion.

In a sharp reversal of 2012's difficult conditions, including an unprecedented spate of outflows, Chinese authorities last year were grappling with a sizeable influx of capital which had been stirred by a combination of wavering over tightening at the Federal Reserve and China's relatively high interest rates and currency appreciation.

People's Bank of China Vice-Governor Yi Gang said recently that the costs of foreign exchange reserve accumulation now outweigh the benefits. His comments indicate that Beijing's appetite for market interventions to hold down the yuan is fading, though analysts are sceptical.

Despite background noise about outflow risks associated with Fed tapering and Beijing's ambitious capital account reform plans, Capital Economics in London has forecast another $500 billion rise in foreign exchange reserves this year.

The yuan was trading at 6.0439 shortly after Wednesday's data release, off Tuesday's record post-reform closing high of 6.0412.

MNI | China 2013 FX Reserves Rise A Record $508 Bln To $3.82 Tln

It is growing by leaps and bounds but What good will it do?? Why hold so much reserves which doesn't bring any returns??

Especially for China (exports>imports) anything beyond six months worth of import needs is way too conservative and cautious approach.

The day United States devalues its currency then all the world reserves get devalued because the reserves are skewed in favor of dollars. This hoarding of dollars by China and other countries of the world is the reason what keeps the dollars value steady.
Dollar does have intrinsic value but it is overvalued in my opinion.

It is double whammy for China because they have not only accumulated huge dollar reserves but have financed United States debt to a tune of 1.3 trillion dollars by buying their bonds and treasuries. What if US decides to devalue their currency because of their growing debt burden???

 

[shuttler]

Inspur 浪潮 is all ready to challenge the dominant positions of IOH (IBM, Oracle, HP) in the servers segment launching its 天梭 Tiansuo TSKI servers:

Credit：server.51cto.com

天梭 Tiansuo TS-KI server
Credit：server.zol.com.cn

Here a vid：
浪潮

also on here：

Related news：
天梭K1：中国主机产业的第一面红旗-搜狐滚动

 

[Fattyacids]

It is growing by leaps and bounds but What good will it do?? Why hold so much reserves which doesn't bring any returns??

Especially for China (exports>imports) anything beyond six months worth of import needs is way too conservative and cautious approach.

The day United States devalues its currency then all the world reserves get devalued because the reserves are skewed in favor of dollars. This hoarding of dollars by China and other countries of the world is the reason what keeps the dollars value steady.
Dollar does have intrinsic value but it is overvalued in my opinion.

It is double whammy for China because they have not only accumulated huge dollar reserves but have financed United States debt to a tune of 1.3 trillion dollars by buying their bonds and treasuries. What if US decides to devalue their currency because of their growing debt burden???

What good will it do? A country's foreign reserve is akin to a person's bank account balance. It's money for the country to spend.

No, the effect is exactly the opposite. When the Fed devalue the dollar, indirectly it inflates all other currencies and asset class. The intrinsic value of US dollar is its $16 trillion economy, still the largest in the world.

International trade are mostly denominated in USD. If you have a big trade surplus, you will end up with chunks of USD. What do you do with it? Spend some and save the rest. How do save it? Buy US treasury bills, it's the benchmark of a risk free asset. What if the US decides to devalue? Fed had already devalued the dollar a few years back, it is now scaling back. Weak USD, higher asset prices, vice versa. But nothing changes coz you were already in USD from the start and international trade is still in USD.

 

[shuttler]

It is growing by leaps and bounds but What good will it do?? Why hold so much reserves which doesn't bring any returns??

Especially for China (exports>imports) anything beyond six months worth of import needs is way too conservative and cautious approach.

The day United States devalues its currency then all the world reserves get devalued because the reserves are skewed in favor of dollars. This hoarding of dollars by China and other countries of the world is the reason what keeps the dollars value steady.
Dollar does have intrinsic value but it is overvalued in my opinion.

It is double whammy for China because they have not only accumulated huge dollar reserves but have financed United States debt to a tune of 1.3 trillion dollars by buying their bonds and treasuries. What if US decides to devalue their currency because of their growing debt burden???

when the Fed devalues their currency by QE it hurts everyone holding USD demoninated assets in which we are not the majority holder, usa and foreign corporations, sovereignty funds, usa citizens, persioners + pension and trust funds , japan all together suffer more than China's assets in usd

Buying into the usa treasury securities has pros and cons. It channels a huge chunk of us dollars back into the us economy through our trade surpluses whereby the liquidity of the us dollar help avoid the Fed printing more money with the effect of further devaluation so in a way keeping RMB against the dollar away from appreciating any further

Meantime the trade surplus help us forage into mergers and acquistions of not just US but global companies with potentials / real estates on the cheap foreign currencies and strong RMB

*****************************
Raise the bar of poverty subsidies! More subdised housing, scholarships please!
Give a handsome raise to our researchers engineers scientists teachers/professors soldiers people working in the medical profession
and
bring our good scientists and engineers back!

 

[my2cents]

Thanks for the reply guys...appreciate your positive outlook.

I know I am portraying a doomsday picture but United States still has lot of tricks upon its sleeves... so better to watch out.

No country would like to devalue their currency artificially and put their public at risk. But don't you think it is a dangerous loop to keep sustaining their spending spree like there is no tomorrow and look at the impasse over their spending limit. I believe your credit agency reduced united states economic outlook a notch. Does it mean you will buy less of their bonds and treasuries??