China Economy Forum

[ChineseTiger1986]

the fastest growing economies around the world are manufacturing based economies and not service driven economies.

Many manufacturing sectors of Shanghai have been moved to the inland areas, maybe they are trying hard to promote the new free trade zone.

 

[StarCraft_ZT]

the fastest growing economies around the world are manufacturing based economies and not service driven economies.

Well, it's true. But China's manufacturing output is already the No.1 in the world. All the developed countries are at least 70% service sector of GDP. It's the result of industry subdivision. For example, financial service industry is also service sector. A strong financial industry will support manufacturing growth.

 

[S10]

Manufacturing is the engine of growth. I'm always on the fence about service sector, especially financial business. You can only play with numbers so much on the books. Eventually it will come back to bite you. Once you lose your manufacturing base, the decline will begin.

 

[StarCraft_ZT]

Manufacturing is the engine of growth. I'm always on the fence about service sector, especially financial business. You can only play with numbers so much on the books. Eventually it will come back to bite you. Once you lose your manufacturing base, the decline will begin.

I partly agree with you, however....... For financial industry

1),Without financial services like auditing, tax planing and preparation, F/S compilation, consulting and other attest services, can any business be alive? Even KMPG has customer like ICBC ( Industrial and Commercial Bank of China ), China Unicom and PetroChina. Ernst & Young has customer like China Bank and China Life Insurance. Also tax avoidance is most essential to any kind of business.

2),Without long-term installment loans, can most people afford their housing expenses? LoL...only few people can make the down payment with lump sum. More and more people nowadays are making financing terms.

3),Without financial innovation and e-commerce, can you schedule a quick online transfer with less than 1 day, and thus to cut short the operating cycle, to increase the current ratio and improve the liquidity? BTW, for our consumers, you can also think about TaoBao and Alibaba, which brings so many convenience to customers and so many job opportunities.

4) Supply chain management. It's also service factor. It is highly associated with the manufacturing process. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It's a comprehensive management process, to enhance business effectiveness and efficiency.

5) Insurance.....I won't talk about the importance of insurance, earth people all know.

Okay, let's review on service industry. It includes education, IT, social security, medical system, tourist, entertainment......A highly developed service industry is needed. For example, in many remote and poor area in South China, the scenery is awesome but the basis of manufacturing is weak, we can develop tourism to make local people richer.

第三产业 - 维基百科，自由的百科全书

China never lose competence in manufacturing. We are just adjusting the structure of economy by cutting down some over capacity and high energy consumed industry, such as coal, electrolytic aluminium, cement, sheet glass and other totally 19 industries. We are just upgrading our economy, that's all. We can move our highly polluted industry to other countries, to save labor cost and our environment. That's the way developed countries ever did to us.

2013年19个工业行业淘汰落后产能企业名单（第一批）（工业和信息化部公告2013年第35号）

Look at US, only 19% industrial production of GDP equals to 45% that of China's GDP, who is more efficient? That's the targeting we are getting close to. China's industrial production is No.1 but we need to improve it too.

 

[bolo]

I partly agree with you, however....... For financial industry

1),Without financial services like auditing, tax planing and preparation, F/S compilation, consulting and other attest services, can any business be alive? Even KMPG has customer like ICBC ( Industrial and Commercial Bank of China ), China Unicom and PetroChina. Ernst & Young has customer like China Bank and China Life Insurance. Also tax avoidance is most essential to any kind of business.

2),Without long-term installment loans, can most people afford their housing expenses? LoL...only few people can make the down payment with lump sum. More and more people nowadays are making financing terms.

3),Without financial innovation and e-commerce, can you schedule a quick online transfer with less than 1 day, and thus to cut short the operating cycle, to increase the current ratio and improve the liquidity? BTW, for our consumers, you can also think about TaoBao and Alibaba, which brings so many convenience to customers and so many job opportunities.

4) Supply chain management. It's also service factor. It is highly associated with the manufacturing process. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It's a comprehensive management process, to enhance business effectiveness and efficiency.

5) Insurance.....I won't talk about the importance of insurance, earth people all know.

Okay, let's review on service industry. It includes education, IT, social security, medical system, tourist, entertainment......A highly developed service industry is needed. For example, in many remote and poor area in South China, the scenery is awesome but the basis of manufacturing is weak, we can develop tourism to make local people richer.

第三产业 - 维基百科，自由的百科全书

China never lose competence in manufacturing. We are just adjusting the structure of economy by cutting down some over capacity and high energy consumed industry, such as coal, electrolytic aluminium, cement, sheet glass and other totally 19 industries. We are just upgrading our economy, that's all. We can move our highly polluted industry to other countries, to save labor cost and our environment. That's the way developed countries ever did to us.

2013年19个工业行业淘汰落后产能企业名单（第一批）（工业和信息化部公告2013年第35号）

Look at US, only 19% industrial production of GDP equals to 45% that of China's GDP, who is more efficient? That's the targeting we are getting close to. China's industrial production is No.1 but we need to improve it too.

View attachment 14824

Well, I guess Chinese people will find out sooner or later financial services for the most part are fraudulent. I don't know how it works in China but I'm thinking it's similiar to the US. Financial services is just another name for a Ponzi scheme. No real weath is being produced other than using fractional reserves to create wealth due to inflation--in a nutshell "creating money out of air".

This is killing the US economy and I'm not sure why the Chinese leaders do not understand it. Manufacturing is the king of GDP growth and real indication of the wealth of a country. Remember when China was *** backwards--foreigners were referring to the fact that Chinese can't manufacture anything. Why would you want to go that route again?

Manufacturing is the engine of growth. I'm always on the fence about service sector, especially financial business. You can only play with numbers so much on the books. Eventually it will come back to bite you. Once you lose your manufacturing base, the decline will begin.

Not only that, it's very easy for competitors to compete against you in a service sector, but hard to nearly impossible in manufacturing in some cases.

What Chinese gov't should do is put more in defense manufacturing. It's recession proof and you can't outsource these jobs.

 

[StarCraft_ZT]

Well, I guess Chinese people will find out sooner or later financial services for the most part are fraudulent. I don't know how it works in China but I'm thinking it's similiar to the US. Financial services is just another name for a Ponzi scheme. No real weath is being produced other than using fractional reserves to create wealth due to inflation--in a nutshell "creating money out of air".

This is killing the US economy and I'm not sure why the Chinese leaders do not understand it. Manufacturing is the king of GDP growth and real indication of the wealth of a country. Remember when China was *** backwards--foreigners were referring to the fact that Chinese can't manufacture anything. Why would you want to go that route again?

I've stated that the decreased proportion of manufacturing does not mean the decrease of competence and total output of manufacturing.

It's not the same thing. It's not who want go that way. It's the market economy's self reconstruction.The proportion is decreasing but the total output is increasing.

 

[StarCraft_ZT]

Manufacturing Output by Country - Greyhill Advisors

China is always been increasing the industrial output. This data is a little bit old, now we have surpassed US. But the manufacturing only accounts for 19% of its GDP, in China, it's 45%. Don't you think it's China's way to catch up with the current US?

 

[Hypersonicmissiles]

The day China loses the manufacturing capacity is the day China will begin the decline as a country.

 

[northeast]

The day China loses the manufacturing capacity is the day China will begin the decline as a country.

Why？the weight of chinese industry sector is clearly too big.If the total economy goes well，China won't decline.

Manufacturing is the engine of growth. I'm always on the fence about service sector, especially financial business. You can only play with numbers so much on the books. Eventually it will come back to bite you. Once you lose your manufacturing base, the decline will begin.

Japan didn't lose it，but it suffered from the last economy crisis worse than most of devoloped countries.

 

[Hypersonicmissiles]

Why？the weight of chinese industry sector is clearly too big.If the total economy goes well，China won't decline.


Japan didn't lose it，but it suffered from the last economy crisis worse than most of devoloped countries.

Manufacturing base is a prerequisite for a powerful country.

 

[ChineseTiger1986]

Manufacturing base is a prerequisite for a powerful country.

China's manufacturing base won't decline, it remains as a larger version of Germany.

But the environment protection is also important, since Xi Jinping has promised to increase the overall living standard for all Chinese people.

 

[S10]

I partly agree with you, however....... For financial industry

1),Without financial services like auditing, tax planing and preparation, F/S compilation, consulting and other attest services, can any business be alive? Even KMPG has customer like ICBC ( Industrial and Commercial Bank of China ), China Unicom and PetroChina. Ernst & Young has customer like China Bank and China Life Insurance. Also tax avoidance is most essential to any kind of business.

2),Without long-term installment loans, can most people afford their housing expenses? LoL...only few people can make the down payment with lump sum. More and more people nowadays are making financing terms.

3),Without financial innovation and e-commerce, can you schedule a quick online transfer with less than 1 day, and thus to cut short the operating cycle, to increase the current ratio and improve the liquidity? BTW, for our consumers, you can also think about TaoBao and Alibaba, which brings so many convenience to customers and so many job opportunities.

4) Supply chain management. It's also service factor. It is highly associated with the manufacturing process. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It's a comprehensive management process, to enhance business effectiveness and efficiency.

5) Insurance.....I won't talk about the importance of insurance, earth people all know.

Okay, let's review on service industry. It includes education, IT, social security, medical system, tourist, entertainment......A highly developed service industry is needed. For example, in many remote and poor area in South China, the scenery is awesome but the basis of manufacturing is weak, we can develop tourism to make local people richer.

第三产业 - 维基百科，自由的百科全书

China never lose competence in manufacturing. We are just adjusting the structure of economy by cutting down some over capacity and high energy consumed industry, such as coal, electrolytic aluminium, cement, sheet glass and other totally 19 industries. We are just upgrading our economy, that's all. We can move our highly polluted industry to other countries, to save labor cost and our environment. That's the way developed countries ever did to us.

2013年19个工业行业淘汰落后产能企业名单（第一批）（工业和信息化部公告2013年第35号）

Look at US, only 19% industrial production of GDP equals to 45% that of China's GDP, who is more efficient? That's the targeting we are getting close to. China's industrial production is No.1 but we need to improve it too.

View attachment 14824

The financial sector is a necessary evil, but you should realize that all financial activities should be serving manufacturing, which is where real growth comes from. Manipulating numbers alone will not get you anywhere in the long term. China did lose some of its manufacturing in the past 5 years. We still have areas of extreme poverty in provinces such as Yunnan, Guizhou and Qinghai. Those are underdeveloped and requires support.

 

[Edison Chen]

First nation to report over 20 million units sold

Jan. 20 – China became the first country to sell in excess of 20 million auto units last year, with nearly 22 million passenger and commercial vehicles being sold in the country over that time. This figure represented a 14 percent increase over 2012, and was double the China Association of Automobile Manufacturers estimate. Of these, 59.7 percent of the market was taken by foreign joint ventures. Volkswagen replaced General Motors as the top China seller for the first time since 2003, while Ford sales grew by 49 percent and Japan’s Toyota enjoyed a record year, despite political problems with China.

China’s auto market still has plenty of growth however. Car ownership is still low in the country, with about 120 million vehicles on the roads in a country of 1.4 billion. That compares to less than 100 cars for every 1,000 people, far lower than markets such as Europe and Japan with penetration of 600 vehicles for every 1,000 people. Eight Chinese cities reported record sales despite curbs being introduced to restrict ownership, with many Chinese just buying anyway to best the restrictions.

“For those working in the auto industry, the only country they should know where sales are still robust is China,” said Hubertus Troska, president of Daimler China.

Auto ownership has become a political issue in China with some factions blaming the increasing pollution in cities on automobile exhaust fumes. Thus, they belive that the problem can in part be explained away due to China’s growth in wealth. Others believe the pollution is caused by inefficient state owned coal and power supply companies, a far more direct criticism of the Government’s management of the country. This latter view has recently been put forward by Beijing’s Mayor who recently announced an “all-out effort” to fight air pollution.

The New Year is shaping up to be another strong year for the Chinese auto market. Luxury car maker Jaguar Land Rover, owned by India’s Tata Group, is about to commence production at its new China factory in Changshu in a joint venture with Chinese car maker, Chery, later in the year.

“China’s market is an opportunity, but not an opportunity for everyone,” said Jia Xinguang, a Beijing-based auto analyst. Companies getting a late start in the Chinese market may find it difficult to catch up to their established peers, he further commented.

Vehicle sales in China are expected to rise a further 10 percent during 2014.

- See more at: China Vehicle Sales Reach 22 million Units in 2013 | China Briefing News

China breaks world record for car sales in 2013 - CBS News

China 2013 vehicle sales up 13.9 pct -industry group| Reuters

 

[northeast]

Ten times of what indian produce.

 

[eazzy]

Hope PSA will sell many cars in China.