China has 2nd largest consumer market in the world

[Hamartia Antidote]

Yes, but an executive in America makes about 500 times more than a common employee. The majority of the people in America make less than the 50000 dollars number. That 50000 dollars number will only work if everybody is making the same from the CEO to the toilet cleaner. And the REAL per capita income ie minus inflation is less than 30000 dollars. The real income of Americans is stuck at where it was in the year 2000.

The number of executives that make 500 times more than their employees is not very large.
Plus every country has executives that make large sums.

 

[BigDaddyWatch]

You do know by service sector, majority of the pie is from FINANCIAL SERVICES, stuff like investing overseas or borrowing money overseas.

Financial services - Wikipedia, the free encyclopedia

How much money currently settle in the market is for goods or physical trade, and how much is for banking? You need me to tell you further??

The main goal of Yuan internationalization is to get away from the USD in trade and other international dealings. As China's economy grows Chinese companies are growing too and are increasingly looking for opportunities abroad. Giving the Yuan an international status would facilitate this tremendously and it means that more of the benefits would flow to China instead of the US. Its about much more than the financial sector. In fact at this point the financial sector plays a secondary role in China's international commercial dealings.

The number of executives that make 500 times more than their employees is not very large.
Plus every country has executives that make large sums.

Yes, in every country the executives make more money than the common employee. But 500 times ? If you don't find that excessive than you must be either an executive or a son of an executive.

 

[Hamartia Antidote]

Yes, in every country the executives make more money than the common employee. But 500 times ? If you don't find that excessive than you must be either an executive or a son of an executive.

I can imagine a company like McDonald's probably pays a very low wage to the average burger flipper on this planet.
If their CEO makes $10M that is 500 times a yearly wage of $2000 for some burger flipper.

But even McDonalds has only 6 guys in their executive team and all of them are under $3M.

This is not a large number of people considering they have almost 2 million employees.

 

[Matrixx]

Me too, 1.3 billion people, less than US, a shame.

nobody nowhere near USA

 

[Edison Chen]

nobody nowhere near USA

Nobody is nowhere near USA. So you mean everyone can beat USA.

 

[Beast]

And nobody wants to consume those real goods, how to deal with it? As I know many chinese prefet deposit.

Are you sure? Then why luxury brand keep opening more and more outlet in China and iphone6 can break record sales in China?
The Europe branded fashion stores are always filled with Chinese tourist.

 

[empirefighter]

For my first sight，I find out the number of China just 32% of its GDP，and other top ten countries is around 60 % of their GDP. For common sense，I doubt the accuracy of this number ，maybe it intentionly deevluate our comsume market. But I donot care it at all，nomatter it is accurate or not，it is just a number.

 

[jhungary]

The main goal of Yuan internationalization is to get away from the USD in trade and other international dealings. As China's economy grows Chinese companies are growing too and are increasingly looking for opportunities abroad. Giving the Yuan an international status would facilitate this tremendously and it means that more of the benefits would flow to China instead of the US. Its about much more than the financial sector. In fact at this point the financial sector plays a secondary role in China's international commercial dealings.

No, you are confused between being international currency status and have a pegged exchange rate.

International Currency only work in Chinese favour when you trade them directly (ie via loan or currency service, e.g. Financial Exchange or stock market). It does not work when you are using the currency to settle a trade. For a simple reason that there are only one country print RMB, and that's China.

Say a Chinese Company selling a cargo container of mobile phone to Canada even when RMB are in the basket currency and the trade between Canada and China uses RMB to settle the account. Where is the RMB the Canadian paying is from? Canada does not use RMB nor have RMB as a legal tender nor do they print RMB, their RMB are bought into their foreign exchange, which since Canada and China does not have a direct exchange rate (fixed or pegged rate) they would have to buy their currency from a country that RMB can trade with, and that's in most country in the world, would be US Dollars.

So no, you do not benefit with international currency status with your trade or vice versa

 

[Matrixx]

Finally India crossed Russia

Nobody is nowhere near USA. So you mean everyone can beat USA.

you understood just opposite...

 

[northeast]

No, you are confused between being international currency status and have a pegged exchange rate.

International Currency only work in Chinese favour when you trade them directly (ie via loan or currency service, e.g. Financial Exchange or stock market). It does not work when you are using the currency to settle a trade. For a simple reason that there are only one country print RMB, and that's China.

Say a Chinese Company selling a cargo container of mobile phone to Canada even when RMB are in the basket currency and the trade between Canada and China uses RMB to settle the account. Where is the RMB the Canadian paying is from? Canada does not use RMB nor have RMB as a legal tender nor do they print RMB, their RMB are bought into their foreign exchange, which since Canada and China does not have a direct exchange rate (fixed or pegged rate) they would have to buy their currency from a country that RMB can trade with, and that's in most country in the world, would be US Dollars.

So no, you do not benefit with international currency status with your trade

The main goal of Yuan internationalization is to make the yuan appreciation.A strong country needs a strong currency.

 

[jhungary]

The main goal of Yuan internationalization is to make the yuan appreciation.A strong country needs a strong currency.

Yes, the intention of getting Yuan international status is to appreciate their value (Hence you can trade them for more)

However, seems some countrymen of yours does not understand an appreciated Yuan harm export driven business

 

[AUSTERLITZ]

Jhungary ownage.

 

[Beidou2020]

Chinese Consumption by each category with global ranking in brackets:

Household Consumer market (2)
Retail market (2)
E-Commerce market (1)
Energy market (1)
Renewable Energy market (1)
Wind power market (1)
Solar power market (1)
Hydro power market (1)
Industrial Metals market (1)
Precious Metals market (1)
Agriculture market (1)
Agricultural Machinery market (1)
Luxury market (2)
Automobile market (1)
Luxury car market (2)
Truck market (1)
Air travel market (2)
Aircraft market (2)
Air-freight market (2)
Insurance market (4)
Private Equity market (2)
Venture Capital market (?)
Credit Card market (2)
Pharmaceutical market (3)
Medical Equipment market (2)
Advertising market (3)
Search Advertising market (2)
Internet market (1)
Real Estate market (?)
Construction market (1)
Construction Machinery market (1)
Elevator market (1)
Escalator market (1)
Art market (2)
Watch market (1)
Luxury Watch market (1)
Beer market (1)
Wine market (5)
Soft Drink market (4)
IT market (2)
Consumer Electronics market (1)
PC market (1)
Smartphone market (1)
3G market (1)
4G LTE market (2)
Tablet market (2)
LCD TV market (1)
NAND Flash market (1)
DRAM market (1)
Camera market (1)
Home Appliance market (1)
Furniture market (?)
Toy market (3)
Entertainment & Media market (5)
Movie market (2)
Music market (?)
Musical Instrument market (1)
Gaming market (2)
Online Gaming market (1)
Mobile Gaming market (2)
Lottery market (2)
Grocery market (1)
Sportswear market (2)
Apparel market (1)
Footwear market (1)
Glasses market (1)
Jewellery market (2)
Cosmetic market (3)
Seed market (2)
Electricity market (1)
Industrial Robot market (1)
Machine Tool market (1)
Printing market (2)
Fibre Optic market (1)
Business-travel market (2)
Tourist arrivals (4)
Tourism earner (3)
Tourist outbounds (1)
Tourism spender (1)

 

[BigDaddyWatch]

No, you are confused between being international currency status and have a pegged exchange rate.

International Currency only work in Chinese favour when you trade them directly (ie via loan or currency service, e.g. Financial Exchange or stock market). It does not work when you are using the currency to settle a trade. For a simple reason that there are only one country print RMB, and that's China.

Say a Chinese Company selling a cargo container of mobile phone to Canada even when RMB are in the basket currency and the trade between Canada and China uses RMB to settle the account. Where is the RMB the Canadian paying is from? Canada does not use RMB nor have RMB as a legal tender nor do they print RMB, their RMB are bought into their foreign exchange, which since Canada and China does not have a direct exchange rate (fixed or pegged rate) they would have to buy their currency from a country that RMB can trade with, and that's in most country in the world, would be US Dollars.

So no, you do not benefit with international currency status with your trade or vice versa

If a Canadian importer wants to buy a cargo of mobile phones from China. He has to go raise USD with CAD to buy those phones because China doesn't accept CAD. Then when the Chinese manufacturer recieves those USD he has to convert them into Yuans because its the only legal tender in China. So that he can pay his employees and other bills. Equally if a Chinese importer wants to buy Canadian oil or timber he has to raise USD to pay for it. And the Canadian exporter on the otherside has to convert those USD into CAD to pay his employees and other bills.

As trade arounde the world increases so does the demand for USD. And where does one raise more USD ? Of course in America. And the Americans are charging a commission for those USD. Like a bank charges you a commission when you exchange foreign currency with them. The more the world does business in USD the more commissions the US can charge. It gives a whole new meaning to the words license to print money. And because the demande for USD in the world increases it helps to strengthen the US currency.

However if you can cut out the middle man (in this case the US) then you get rid of the commissions. And you also get rid of a layer of dealings to do business.

How does Canada get their Yuans ? Through currency swaps. The two countries central banks come together and agrees a price and the two central banks make an exchange. Now the Canadian importer can raise Chinese Yuans for his phones and the Chinese manufacturer doesn't have to convert dollars into Yuan. It also works vice versa. And no one has to pay the Americans a commission. Internationalizing the Yuan makes it easier for others to get Yuans for their trade.

UPDATE 4-Chinese, Canadian central banks agree to 200 bln yuan currency swap| Reuters

Yes, the intention of getting Yuan international status is to appreciate their value (Hence you can trade them for more)

However, seems some countrymen of yours does not understand an appreciated Yuan harm export driven business

China is trying to move away from the export model and rely more on domestic demands and as China's economy is becoming more services oriented exports becomes less important. In 2007 exports was 35% of GDP last year it was only 25% of GDP and this year it will fall even further. And a strong currency helps to stimulate domestic demand.

 

[jhungary]

Jhungary ownage.

lol.......I don't understand why they don't even understand such trivia knowledge........