What's new

China’s Trade Surplus Surges to $31.5 Billion as Exports Exceed Estimates

If you are the Master race ,then why are you making Ipod and Iphones for the American masters.

sweat3.jpg


Factory floors covered in fence.

article-1285980-09FFD94F000005DC-523_636x359.jpg

Instead of faking american accent... they make stuff and are paid for it... nothing is free... its buisness!

Why no stop trolling?

bharti!
 
china has low taxes on starting up or setting up a business, wealth producing sectors such as manufacturig is a free sector compared to any other country. taxing on retail business is a way to spur manufacturing and industrial growth and avoid service sector growth such as retail businesses at the expense of manufacturing. china has easy access to capital for vast majority of businesses, for startups its very easy to get bank loans and venture capital and private equity money is plenty. transportation costs have gone up in every country due to high commodity prices, and china's inflation is due to food prices, the core cpi is low.
inflation is not due to transportation costs, u have a lack of understanding on what inflation is.

india has done no family planning, their population is rising so fast they are becoming like african countries. overpopulation is a massive problem for any country, india should dramatically slow its population growth, they have too many people in a small land with little to no resources. how are they going to feed their population with no natural resources. they will have to import massive amount of resoures which will drain their financial wealth.

if u have ever studied economics, u would know export is not measured as a % of gdp, NET EXPORTS is what matters, and that is around 10-15%. and china has the fastest rate of consumption increase, the consumption as a % of gdp is irrelevant, japan has a 60% consumption as a % of gdp but consumption dont contribute anything to their current growth as their rate of consumption is low even though their share of consumption as a % of gdp is high. these are basic economics.

it doesnt matter where u are in the development cycle regarding currency. u dont understand the basic difference between manufacturing and exporting. they are completely different. china has a manufacturing economy, china can retool its economy anytime it wants to the domestic market, the higher the currency gets, the higher the rate of consumption becomes and u have seen that as china's currency has risen 30% but china's manufacturing competitiveness has not been hurt with that massive currency revaluation. the higher currency means the chinese manufacturing will sell more of its products to chinese consumers as chines have more purchasing power.

japan has a business friendly environment, thats why it still has a vibrant manufacturing sector. all this nonsense that economies are run based on weak currency are keynesian propaganda. if u have weak currecies, that increases the cost of raw materials to make a product, buying machines and equipment becomes more expensive. in ur way of thinking, zimbabwe should be a manufacturing superpower, but the problem is as currencies get weaker, low end manufacturers cant afford the higher raw material costs. china is now moving up the value chain to make not just low end goods but more and more high end goods.

as china's currency rises, chinese purchasing power increases and chinese consumers will buy more of the share of the chinese manufacturing, china will still be a massive exporter. american dollar has been getting weaker and weaker over the last 10 years but has lost manufacturing jobs, thats because they are over regulated. amount of regulations is one of the keys to having a vibrant manufacturing sector.


lastly, india is a total ponzi scheme economy. india is running a service sector economy based on consumption. how do they run a consumption based economy with no manufacturing and with a per capita gdp of $1000? by going into debt.
when ur growing, ur debt should be coming down as ur wealth is increasing, when ur gdp is rising aswell as ur debt, that means the reason india is growing is because its going into debt. thats a ponzi scheme. indian debt to gdp is higher than what they are reporting, its around 70% federal debt. its deficit is close to 10% every year. their debt is growing faster than its gdp. that means they are living beyond their means. if india tried to live within their means, their debt would not rise but their gdp growth would collapse.

india has no manufacturing base, so how do they get that goods to consume they dont have? buy running massive trade deficits.
how do the indian people consume those goods with money they dont have? buy going into debt.
india is a classic ponzi scheme economy as jim rogers has said.

china's economy is based on very sound fundamentals, india is a debt based ponzi scheme.
if u dont understand that, u need to go study basic economics.

First, thanks for your reply and inputs.

After read your post, I still have few questions

1) You said taxes on manufacturing sector is low in China, exactly how low? The number I found on the World Bank website suggest its 63.5% of profit... not low at all comparing to US 46.3%

2) When you say "core CPI", what do you mean? As I understand, food accounts 32% of CPI weighting in China since Feb. 2011, which still is the largest part of CPI.

3) As for causes for food price rise, this article suggest its rent and management fee:
??? ???
What's your opinion on this issue?

4) Can you give few examples of high end goods that China produces? Out of my head, I can think two: automobile and renewable energy industry.

5) Your mentioned over regulation is one of the cause for decline of US manufacturing capability, but how come this does not apply to Japan? Japanese regulation is not loose by any mean.
 
First, thanks for your reply and inputs.

After read your post, I still have few questions

1) You said taxes on manufacturing sector is low in China, exactly how low? The number I found on the World Bank website suggest its 63.5% of profit... not low at all comparing to US 46.3%

2) When you say "core CPI", what do you mean? As I understand, food accounts 32% of CPI weighting in China since Feb. 2011, which still is the largest part of CPI.

3) As for causes for food price rise, this article suggest its rent and management fee:
??? ???
What's your opinion on this issue?

4) Can you give few examples of high end goods that China produces? Out of my head, I can think two: automobile and renewable energy industry.

5) Your mentioned over regulation is one of the cause for decline of US manufacturing capability, but how come this does not apply to Japan? Japanese regulation is not loose by any mean.

first of all, u are not chinese, u are an indian or an american pretending to be chinese. so stop the bullsh!t right there bud.

ask any business and they will say china has lower taxes than the US. chinese govenrment gives tax brakes to many businesses to lure them to china. US has corporate taxes are some of the highest in the world. not only that the US has to pay numerous other taxes such as state and local taxes when doing business in the US. these are general knowledge. china had given much lower taxes to foriegn businesses compared to local businesses. these are pro-business tactics.

core cpi is inflaton without food and energy, the core cpi is very low in china. as i said, food is the major cause of inflation in china and not transportation costs like u said.

food prices increases are due to increase in the money supply in china due to QE2 in the US as the yuan is pegged. plus the adverse weather conditions have caused production to slow on certain food products which caused shortages and the supply couldnt keep up with demand.

china is now the biggest manufacturer and exporter of electronics and electrical products in the world, from PCs to smartphones, to tablets, to every electric gadget. u look it up ur self.

japanese regulation is not great, but US is worse, US has environmental protections agency, NLRB with boeing being denied, dodd-frank, long time taken to setup a business to gain approval, healthcare costs, so many more. china dont have these regulations, regulations create extra costs for a business which decreases their margins. regulations, taxes, access to capital, cost of capital, work ethic of the population, infrastructure, educated labour force, etc are all the things that affect a business.
ur point that currency is the only thing is utter garbage.

china has one of the most pro-business environments in the world, not only that, china has the fastest growing consumer market, plus the biggest savings pool.
some businesses can qualify for subsidies from the chinese government if they manufacture their product in china as happened with general motors and SAIC.
china gives tax breaks for businesses.
china has access to rare earth which is need to make high tech goods, china can produce rare earth at a lower cost than in other countries. china also has higher tariffs, so if any firm wants access to the chinese consumer market, u have to manufacture in china to avoid the tariff or ur competitor will win.

all these things put together and many more things make china the powerhouse that it is today. thats why china is growing fast without going into debt, but china will need to go into some debt to create the dim sum bond market to make the yuan a global currency as u need to create liquity in the currency and need to have a deep and liquid bond market.
 
When a guy has 100 dollars, earning extra 20 means his wealth grew 20%. A guy with 500 dollars earned 80 dollars, netting 16% increase. The guy with 120 told the guy with 580 that he is the faster of the two, despite actually earning 60 dollars less.

In just over 50 years, 20% wins over 16%.

Hence, your argument is meaningless ... which is anyway hypothetical.

Converting millions of tons of steel and cement and erecting ghost cities is stupidity.
Imagine how hard it will be re-extract cement or steel from those ghost cities, once they have degenerated from disuse.

Good for common chinese people, that the goverment hasn't made blood donation compulsory .... so far.
Else, someone here would be claiming that China is the largest exporter of blood .... producing 80% of blood supplied to hospitals across the world, earning 582 billion dollars in exports annually.

... And then Americans would produce crocodile tears, that China is manipulating the currency and dumping cheap blood in their country.. making American blood uncompetitive.

Hail China. Hail Capitalism with Chinese characteristics.
 
In just over 50 years, 20% wins over 16%.

Hence, your argument is meaningless ... which is anyway hypothetical.

Converting millions of tons of steel and cement and erecting ghost cities is stupidity.
Imagine how hard it will be re-extract cement or steel from those ghost cities, once they have degenerated from disuse.

Good for common chinese people, that the goverment hasn't made blood donation compulsory .... so far.
Else, someone here would be claiming that China is the largest exporter of blood .... producing 80% of blood supplied to hospitals across the world, earning 582 billion dollars in exports annually.

... And then Americans would produce crocodile tears, that China is manipulating the currency and dumping cheap blood in their country.. making American blood uncompetitive.

Hail China. Hail Capitalism with Chinese characteristics.
LOL! That's assuming that 20% increase holds true for 50 years. In any case you can make the case of tiny African countries surpassing China economically because they sometimes have astonishing rates, but we all know how idiotic that is. If the guy with 1000 bucks continues making 20 a year while the guy with 500 keeps on making 80, you do the math. Chinese have better infrastructure, education and arguably better work ethics. Good luck trying to outcompete that.

Do you know that there are currently 800 million Chinese residing in rural areas while 500 million resides in urban areas? In 10 years time, the numbers will swap, meaning 300 million will move into the cities. That's 300 million people, roughly the population of United States, that require urban housing. Unless you think Chinese people like to live in slums like Indians, they're going to need to buy places to live. I think the so called "ghost" cities show foresight by the central govnerment, otherwise they would have been shut down by now.

For the matter of blood, if there is a market demand, someone will step in to fill the supplies. Are you really so ignorant that the concept of free market flew over your head? If someone is making a profit and is willing to do so, I am all for it. You should be thankful that Chinese are willing to sell blood supplies more cheaply. I think you may need transfusion due to lack of blood in your brain from your post.
 
Having a lots of money is good but don't waste it! Saving is always the good solution to secure your national budget during crisis times! China must use these money wisely and make it benefit you the most!
 
LOL! That's assuming that 20% increase holds true for 50 years. In any case you can make the case of tiny African countries surpassing China economically because they sometimes have astonishing rates, but we all know how idiotic that is. If the guy with 1000 bucks continues making 20 a year while the guy with 500 keeps on making 80, you do the math. Chinese have better infrastructure, education and arguably better work ethics. Good luck trying to outcompete that.

So, China has now started to compare itself with Africa ... Atleast they realize the importance of choosing the right benchmarks.

Anyway, sorry to end your gleeing, but Africa (as a whole) is three times the size of China.
And a population greater than 1 billion.

Seeing the potential, I say, you may have to eat your words on this count too.
 
So you finally confessed to us that India manipulated its currency in last 3 months to depreciate 7%? Then why whining against China?

Please tell us which country doesn’t manipulate currency in this world!

But the major problem is in your logic that: GDP (via export) can be increased simply by manipulating currency without hard working. That is a joke!

According to you magic, African countries don’t have to work, just depreciating their currency and their GDP will be enormous.

If majority of Indians' "lesson of Economy" is to follow western thinking instead of independent thinking, of course India’s future is much bleaker.

That’s a no-brainer.

Wow dude u amaze me let me explain when u invest in any country u have to buy there currency to make that investment making there currency stronger ..... recently due to all economic turmoil ppl are are deleveraging and going back into dollar as it is reserve currency ...
now to do that u have to sell ur investment in that particular country in their currency and buy dollar making dollar strong and that currency visa vis weak

i hope u get my point

now for ur african country comment i said having a weak currency is both a boon and a curse if u have export base and manufacturing sector like india and china it is a boon coz it make export cheaper and import costlier

now africa they hardly have any manufacturing and with that a weak currency is a double curse coz they are dependent on import which is making their life hell....

And pls we don't follow western economics our economics is run by our house finance minister thats every women in the house, she takes care of our finance and we don't have luxury of going bankrupt after spending way out of our means .we don't go shopping just to make our self feel good....

global imbalance.part1.mp4 - YouTube

hope this will clear some of your doubt.. this is a explanation for a layman
 
So, China has now started to compare itself with Africa ... Atleast they realize the importance of choosing the right benchmarks.

Anyway, sorry to end your gleeing, but Africa (as a whole) is three times the size of China.
And a population greater than 1 billion.

Seeing the potential, I say, you may have to eat your words on this count too.
China's benchmark has always been that of United States, since the formation of PRC. In fact, the motto for Great Leap Forward was "Surpass Britain, Catch up with America". We've done just that.

I demonstrated that comparing growth rates are quite meaningless without looking at the actual numbers. There are instance in the past where some African countries doubled their GDP within the year. Qatar also has higher GDP growth rate than China. I guess they don't teach you to analyze the numbers in India. In substantial terms, China's growth is much greater than that of India. The sooner you wake up from your dream, the sooner your country improves.

Africa is a continent, not a single unified political entity. That means it's not a country, not even a loose association. It cannot pool its human/natural/financial resources together and countries in that continent constantly clash with each other. Sorry that you're blind to the cultural, ethnic, geographic and monetary divisions. Africa is moving nowhere fast.
 
Back
Top Bottom