Chairman Xi has an answer for all of the bad press coverage of China's poor economic performance: scrub the internet. China is reportedly scrubbing the internet of negative coverage of its economy
I tend to think Trump would go in the opposite direction. Instead of scrubbing the internet because he doesn't like some truth contained therein, Trump would tell lies repeatedly until his followers believed him and accepted the lies. He would also verbally attack the people telling the truth, and make casual suggestions to his followers to physically attack the truth-tellers. The Chinese are a lot more subtle than Dimwit Donald. Trump seems to idolize mobsters (and dictators) a little too much for any hope of subtlety.
China has serious structural issues in their economy and the wheels are coming off. Angry Chinese take to US Embassy’s social media account to vent about plunging stock market | CNN Business Hong KongCNN — Tens of thousands of people in China are flocking to an unusual venue to vent their outrage about the continuing meltdown in the country’s stock market. They’ve been posting comments on a Chinese-language social media account of the US Embassy in Beijing expressing anger and frustration with the market rout. Mainland Chinese markets slumped again Monday after their worst week in years. More than 1,800 stocks on the Shanghai and Shenzhen markets, accounting for a third of all stocks listed in China, slumped more than 10%. On Monday, the Shanghai Composite Index dropped for a sixth straight session, down 1% and hitting its lowest close in four years. Last week, the index fell 6.2% in its biggest weekly loss since October 2018.
Getting bad. IMF expects new housing demand in China to drop by around 50% in the next decade BEIJING — Demand for new housing in China is set to drop by around 50% over the next decade, making it harder for Beijing to quickly bolster the country’s overall growth. That’s according to the International Monetary Fund’s latest staff report on China, completed in late December and released Friday. The IMF said it expects “fundamental demand for new housing” in China to fall 35% to 55% due to a decline in new urban households and a large inventory of unfinished or vacant properties. Slowing demand for new housing will make it more difficult to absorb excess inventory, “prolonging the adjustment into the medium term and weighing on growth,” the report said.
will this drag our markets down? China is facing the US financial crisis 'on steroids' as the real estate market collapses, famed hedge fund boss says (msn.com) China's property debt is a worse version of the US' 2008 financial crash, Kyle Bass told CNBC. The country's real estate sector was too debt-reliant, and now every public developer is in default. Just two companies hold a debt of $500 billion. In total, the US banking system lost $800 billion in 2008. China's overreliance on real estate has sent its economy tumbling toward 2008-era financial conditions, Kyle Bass told CNBC on Tuesday. ........................................... "The basic architecture of the Chinese economy is broken," Bass summarized. In fact, virtually every public or listed Chinese developer is currently in default, he said. Two of the biggest, Evergrande and Country Garden, have a collective debt of $500 billion. The former was recently ordered to liquidate by a Hong Kong court, and its collapse is sparking fears of systemic risks to come.
Is this visit a coincidence or high-level talks on helping them come up with a plan to deal with their challenge or was the visit just about trade issues and protecting the electric car industry in the US? US Treasury team heads to China to talk subsidies, economic policies | Reuters The Biden administration has sent five senior U.S. Treasury officials to Beijing this week for economic talks that will include China's "non-market" policies that are adding excess industrial capacity, a Treasury official said on Monday. The delegation, led by Treasury Undersecretary for International Affairs Jay Shambaugh, planned to hold frank conversations on Monday and Tuesday as part of the U.S-China Economic Working Group about Beijing subsidies that the U.S. says encourage overproduction of goods, potentially flooding global markets. Affected industries include electric vehicles, a sector whose development in the United States the Biden administration is trying to boost with its own tax subsidies. ...................... The meeting is the third since Yellen and her Chinese counterpart, Vice Premier He Lifeng, launched the group in September alongside the parallel Financial Working Group. That group met in Beijing in late January, with Treasury officials receiving assurances that Chinese banks were "doing well" despite China's real estate and financial market turmoil, according to Yellen. The group will discuss the U.S. and Chinese economic outlooks, investment screening regimes for national security in both countries, and opportunities to cooperate on climate change and debt relief to poor countries, the Treasury official said.
We dont have any risk from China. They dont buy enough from us to make a difference. Less than 1% of our GDP. We’d benefit from lower prices.
Our debt they have doesnt have to pay until maturity. What could they do? Sell it to someone else who would hold til maturity.
Yes, sell at a discount. Does that crush the dollar if treasury has to raise interest rates to sell debt to fund the deficit?
For First Time in Two Decades, U.S. Buys More From Mexico Than China China's economy is at risk of a brutal 'debt-deflation spiral' https://www.wsj.com/economy/trade/a-china-u-s-decoupling-you-aint-seen-nothing-yet-12c0828e
China replaces head of securities regulator after stock market meltdown (msn.com) China has replaced the head of its securities regulator, as public anger over the meltdown in the stock market grows. Wu Qing, a banking veteran and most recently the deputy party secretary of Shanghai, was named as chairman and party secretary of the China Securities Regulatory Commission (CSRC), replacing Yi Huiman, who assumed the role in January 2019, according to a state news agency Xinhua report on Wednesday. Wu, 59, was also the chairman of the Shanghai Stock Exchange, the largest stock exchange in mainland China, between 2016 and 2018. He had previously worked with financial regulators for two decades, including at the CSRC. Chinese stock markets have stabilised this week but they had a dire 2023 and have been the world’s worst performer this year. By Monday, about $6.1 trillion in market value had been wiped from the Chinese and Hong Kong stock markets since their recent peaks in February 2021.
early on in my career I sat across from a guy who now you will see from time to time on cable finance shows as a guest. Eccentric, smart, he told me once that the biggest threat to the global market bar none would be a loss of confidence in US treasury bonds. The entire bond market would collapse, pun,ic and private. Because if the best bet in the world isn’t safe, what is? The US government would stop spending overnight. That would impact every person on the planet, many people in multiple ways. So back to China, imagine their selling started a trend of dumping our securities out of fear? Where would we be left? Even if it was orderly and China only, for every point rates go up, it’s 300 billion dollars less we have to spend (1 percent of 30 trillion), or farther into debt we have to go. So the market has to soak up the trillion or two China dumps, plus the bonds we are having to sell to cover the losses, plus our expanding debt as is, all against a backdrop of likely falling markets in response to what would be happening, and the ancillary effects, so that rates would be going up while liquidity to buy the bonds on the market went down dramatically. It could be its own death spiral. Not where we would want to be or the risk we want to take. The good news is that China is still an export economy, so crashing the west destroys them too, which is why it’s never even really threatened by China amid all their other over the top bellicosity. It’s also how you know all the other garbage is just talk. They know where the limits are.
Amusing…another “Trump is bad” post with no support. It was the Biden Administration that conspired with social media companies (i.e. Facebook and Twitter) to suppress any thought and speech against their COVID agenda. Didn’t think Trump was usurping the the 1st Amendment. But, feel good about your “Orange Man Bad” post.
Since this was on the topic of the Trump has Biden removed any of those terrible tarifffs Trump put into place on China yet?
You guys are funny. China has already divested itself of half a trillion dollars of US treasuries... anyone notice? In the last two years time the Fed has lowered its balance sheet by $1.3T, which is more than China even owns right now. There are years left of the Feds unwinding. A short pause is all they'd need to absorb. Its a big nothing just like their recession would be a big nothing. Probably just lead to lower priced goods here. No way I am wrong because I have an opinion.
