Chitchat Will China implode in 2017?

[Pinkieslut]

Take South Korea, they began in the 90s when the Japanese economy started to slide and now look where they are now. Look at Taiwan and the Bike industry. They were a manufacturing hubbub now their factories are in China. They hold patents on injection moulding that are highly valued.

Singapore was also a high end manufacturing hub but failed to innovate. We are now too expensive for manufacturing and we are now into casinos and more laundering.

That is why I said Singapore will implode. Probably even faster than Japan. Casino is already dead. Matter of time for money laundering once all the larger Asian powers like China and India squeeze Singapore's balls.

 

[frenchbriefs]

China will continue to grow for years and decades to come as they have the largest and cheapest labour supply in the World. They will continue to be the factory for the World. The 1st World will continue to innovate and get China to build, assemble and ship the finished products back to their consumers and rest of the World. What the 1st world as well as the rest of the World are keen to see is a stable China to ensure that their production lines are not disrupted and there is no better entity than the Chinese Communist Party and its mechanism of control. No other country in the World can provide that level of stability. Its in everyone including the US interest to see the CCP in full control.

There are however some core issues that China faces

China main big issue is that their continued trade surpluses are screwing their currency and they cannot keep it artificially undervalued for so long. It is for this very reason that Chinese businesses and businessmen are constantly sending their wealth abroad both legally and illegally. There are incidents such as in Canada and Australia where low profile commercial properties are bought at twice or three times their valuation even though there is no reason or sight of a competitive bid. It shows a sign of desperation to conclude a deal or any deal where wealth in Chinese currency is converted to a more reliable currency or properties or even luxury items outside China. In essence Chinese nationals do not feel safe leaving their wealth in China. The irony is that even their own Govt feel much safer to hold much of their sovereign wealth in US investments instruments.

China's second issue is that their reputation when it comes to overseas investment and seeding of infrastructure for 3rd World countries is in tatters. The backlash from locals are getting louder and louder and last week they were had to close operations in Mozambique due to locals revolting. Remember we had to ship an entire batch of trains to the factory.

Third big issue is the loss of highly talented young Chinese who have gone to the best schools and colleges in the 1st World country and are no longer prepared to return. They have achieved high academic standards and have been absorbed or attracted into R&D and top businesses in their adopted countries. These are the ones that will help continue the cycle of innovation in the 1st World country which they have been adopted into.

Unless China develops a roadmap like the Japanese who did it in the 50s to innovate locally they will continue to be the factory for the World. Then again it is so much easier to copy and counterfeit and like opium addiction under the British the counterfeit addiction will curtail any motivation to innovate.

By the way one becomes the largest economy in the World not because of brains but because of the sheer size of the population. When 2 people do a commercial transaction such a buying a kg of rice - housewife buying from a corner shop owner, that impacts the economy. Imagine a billion people transacting.

If population is what is behind a country s economy and not brains the world would be ranked by population and not IQ.africa would be one of the richest continent in the world stupid.besides america is the largest white population in the world before China joined the arena.r u saying their size didn't matter.besides China's progress was hampered by two hundred years of fuckery from the west.before that China was the richest civilization for eons

 

[Asterix]

It's not about the rise of China but a return to the natural order of things.

Wow, so many wannabe historians and geo-politicians here arh!

Let me save my saliva and unnecessary research and let the Prime Minister of some kuchink kurak country deliver the speech and the facts for me

https://en.wikipedia.org/wiki/Malcolm_Turnbull

[video=youtube;FothKc-0vG8]https://www.youtube.com/watch?v=FothKc-0vG8[/video]

 

[tanwahtiu]

Hey I did not say that. Didn't u read the whole sentence the last word is 'unlikely'.

Heh sia boh?

You must be brainwashed Japanophile.

No one (especially China) wants to swallow Japan.....

 

[frenchbriefs]

China will continue to grow for years and decades to come as they have the largest and cheapest labour supply in the World. They will continue to be the factory for the World. The 1st World will continue to innovate and get China to build, assemble and ship the finished products back to their consumers and rest of the World. What the 1st world as well as the rest of the World are keen to see is a stable China to ensure that their production lines are not disrupted and there is no better entity than the Chinese Communist Party and its mechanism of control. No other country in the World can provide that level of stability. Its in everyone including the US interest to see the CCP in full control.

There are however some core issues that China faces

China main big issue is that their continued trade surpluses are screwing their currency and they cannot keep it artificially undervalued for so long. It is for this very reason that Chinese businesses and businessmen are constantly sending their wealth abroad both legally and illegally. There are incidents such as in Canada and Australia where low profile commercial properties are bought at twice or three times their valuation even though there is no reason or sight of a competitive bid. It shows a sign of desperation to conclude a deal or any deal where wealth in Chinese currency is converted to a more reliable currency or properties or even luxury items outside China. In essence Chinese nationals do not feel safe leaving their wealth in China. The irony is that even their own Govt feel much safer to hold much of their sovereign wealth in US investments instruments.

China's second issue is that their reputation when it comes to overseas investment and seeding of infrastructure for 3rd World countries is in tatters. The backlash from locals are getting louder and louder and last week they were had to close operations in Mozambique due to locals revolting. Remember we had to ship an entire batch of trains to the factory.

Third big issue is the loss of highly talented young Chinese who have gone to the best schools and colleges in the 1st World country and are no longer prepared to return. They have achieved high academic standards and have been absorbed or attracted into R&D and top businesses in their adopted countries. These are the ones that will help continue the cycle of innovation in the 1st World country which they have been adopted into.

Unless China develops a roadmap like the Japanese who did it in the 50s to innovate locally they will continue to be the factory for the World. Then again it is so much easier to copy and counterfeit and like opium addiction under the British the counterfeit addiction will curtail any motivation to innovate.

By the way one becomes the largest economy in the World not because of brains but because of the sheer size of the population. When 2 people do a commercial transaction such a buying a kg of rice - housewife buying from a corner shop owner, that impacts the economy. Imagine a billion people transacting.

Whatever talents China loses let them go,they like the first generations of sinkieland and mudland and overseas Chinese are fucktards and will become obsolete over time.china will continue to produce generations of super tiongs.from t 800 to t 1000 cybernetic organism,the only hope of America catching up is adopting as many Chinese babies as they can.

 

[Pinkieslut]

Whatever talents China loses let them go,they like the first generations of sinkieland and mudland and overseas Chinese are fucktards and will become obsolete over time.china will continue to produce generations of super tiongs.from t 800 to t 1000 cybernetic organism,the only hope of America catching up is adopting as many Chinese babies as they can.

Anyway China impode or not is not immediate concern. I think Singapore imploding is our BIGGEST WORRY. However we still have a leader who say EVERYTHING IS GOOD! Unfortunately there are many Sinkies still buying it (my anecdotal experience). Including those who are already losing out (kenna replaced by FTs). I am not joking. I have not seen such kind of suicidal race. LOL.

 

[kryonlight]

Is Trump Responsible For China's Cash Squeeze?

China, like a desperate prostitute, is opening up her legs wider and wider for foreign penetration. But no one wants her smelly cunt! LOL!

Friday, the National Development and Reform Commission said Beijing will liberalize foreign investment rules for banking, securities, fund management, futures, and insurance. Beijing will also ease regulations relating to production of shale gas.

The NDRC said services will be opened up too, with investment permitted in accounting, auditing, architecture, and financial ratings.

Foreign access will be widened for infrastructure.

The NDRC announcement followed a Thursday statement from the State Council, issued after a meeting chaired by Premier Li Keqiang, that foreigners will be allowed greater access to the manufacturing sector, particularly the transportation equipment, motorbike, ethanol, and edible fats and oils areas.

Beijing until recently has been resistant to opening up areas to foreign investment, something evident in the stalled negotiations with the Obama administration over China’s “negative list” to be incorporated in the proposed Bilateral Investment Treaty.

The sharp turnaround in Beijing’s attitude comes amid a falloff in foreign direct investment into China. China’s Commerce Ministry on Monday said it expected FDI to hit 785 billion yuan for 2016, marginally up from 2015’s 781.4 billion yuan. In dollar terms, however, investment declined sharply as the Chinese currency fell 6.95% against the greenback last year.

It appears that FDI faltered in the final months of 2016. This trend would be a natural consequence of not only slowing growth and a deteriorating environment for foreign business but also recent efforts to restrict outbound payments by foreign corporates.

Beijing is now bracing itself for steeper declines in FDI this year. And although Chinese leaders have no one to blame but themselves, they are beginning to identify a scapegoat.

 

[kryonlight]

Chinese state media last week previewed a narrative—the U.S. is responsible for China’s economic problems—when the Global Times tabloid said President-elect Donald Trump will hamper China’s efforts to attract foreign direct investment.

China’s charge, of course, is ludicrous, but declining FDI aggravates a critical problem. The reduction of investment into China means net capital outflow in 2016 will approach the preceding year’s recording-breaking amount.

Beijing-based J Capital Research estimated net capital outflow to be $910.9 billion in 2015. Bloomberg calculated $1 trillion.

Analysts are waiting to see how much outflow there will be this month. Today, January 1, the annual quota for an individual’s conversion of renminbi into foreign currency—$50,000—resets.

Many, therefore, expect China’s 1.4 billion people to convert as much yuan as they can to avoid a further diminution in wealth, thereby causing a cash squeeze.

There may not be that much renminbi converted, however. China International Capital Corp., an investment bank controlled by Beijing, thinks the Chinese central government might “throw sand in the gears” of purchases of foreign currency.

As Bloomberg reports, the State Administration of Foreign Exchange will require additional documentation for purchases and will instruct banks to more closely watch these transactions.

Moreover, Victor Shih of the University of California at San Diego tells me that Beijing has issued new rules governing the quota. The rules now do not allow individuals to buy foreign exchange for purposes of hedging currency exposure.

 

[kryonlight]

These measures, in a general sense, are a continuation of old tactics. SAFE has been informally restricting individual purchases of forex since at least the fall of 2015.

CICC, as the Chinese investment bank is known, also suggested that Beijing might resort to far more drastic actions, such as repealing the yearly $50,000 individual forex quota altogether.

Such a move would be devastating, and so is the “nuclear option.”

Some Chinese insiders urge a large, sudden devaluation. Beijing on August 11, 2015 lowered its daily reference rate 1.9% from the previous fix, the biggest one-day drop on record.

A large deval, which will undoubtedly be bigger than the last one, looks inevitable because the country’s reserves are now falling fast due to Beijing’s defense of the currency. Yet it’s unlikely Chinese technocrats will move boldly on the eve of President Xi Jinping’s visit to Davos this month, the first time a Chinese leader has attended.

The problem for Beijing, however, is that holders of renminbi might—and should—interpret Xi’s going to Davos as a negative for the currency.

The narrative so far is that his trip to the Swiss resort is another sign of his country’s inexorable rise. As Kerry Brown of King’s College told the Financial Times, his visit “demonstrates just how much ambition China has to the outside world now.”Brown also believes Xi’s “attendance at Davos would be looked at as a sign that China is starting to fill space being potentially vacated by the U.S. under Trump.”

Europe needs to get over the president-elect if it is to understand the motivation for Xi’s participation in the gathering in the Swiss mountains. The Chinese leader surely views his travel out of Beijing to see corporate chieftains as a humiliation. Chinese autocrats, after all, place great significance on which party travels to a meeting. In all probability, Xi is undertaking the journey out of necessity, to reassure a jittery world about China.

In short, Xi is now the country’s salesman-in-chief, looking for your cash to replace the capital now leaving his.

 

[frenchbriefs]

dude u need to stop reading too much right wing crap from breitbart fox news and zerohedge or it will fry ur brain.even though i go there for the economic news i try not to indulge in too much of their delusional fantasies.

 

[kryonlight]

dude u need to stop reading too much right wing crap from breitbart fox news and zerohedge or it will fry ur brain.even though i go there for the economic news i try not to indulge in too much of their delusional fantasies.

How about a prediction from Kryon of Magnetic Service?

http://www.kryon.com/k_channel11_gaithersburg.html

I am Kryon. I've just given you the potentials. "Ah," you say. "But Kryon, right before you leave, you left out the big one. Nobody talks about China." All right. I'll give you still another prediction. China is very interesting, is it not? Suddenly this very old country finds itself in an odd place. They hold the debt for the United States! Some of you would say, "This is not good. This is not going to work." So let me tell you what this is about. Synchronicity has struck, because now China understands that if they're ever going to get paid, they're going to have to ally themselves closer with Western values and help create abundance. Here is the prediction: China will turn North Korea loose soon. The alliance will dissolve, or become stale. There will be political upheaval in China. Not a coup and not a revolution. Within the inner circles of that which you call Chinese politics, there will be a re-evaluation of goals and monetary policy. Eventually, you will see a break with North Korea, allowing still another dictator to fall and unification to occur with the south. How do you like it so far?

 

[scroobal]

The world moved from nationalism and ideology based systems to one that is commercial in nature. Uniqlo can't be bothered if it benefits Japan or the Japanese people or not. The same with the Taiwanese businesses and businesses around the world. It cheaper to use cheap Chinese labour that cannot go on strike.

Uniqlo style business is not going to benefit majority of Japanese or Japan nation. Only the Boss benefit and he will be the 1%. Think about that!

Inditex the Spanish company is also the top 1 or 2 clothing company with brands like Zara. Da Boss is one of the top tycoon in the world. But look at his home town Spain. Totally bankrupt with high unemployment, girls and boys have to prostitute themselves to holiday makers from Europe (sun sand sea and sex the only commodity now useful in Spain). In fact Spain is number 2 in terms of Gross Prostitution Revenue (YES, higher than Thailand or India), numbeer 1 is China (sheer population size compared to Spain).

All these companies manufacture their products in China, or have to use Chinese middle man (HKies, Taiwanese, Chinese) to run their backend manufacturing operations and supply chain.

 

[kryonlight]

HO HO HO! It's coming!

Donald J. Trump ‏@realDonaldTrump

North Korea just stated that it is in the final stages of developing a nuclear weapon capable of reaching parts of the U.S. It won't happen!

China has been taking out massive amounts of money & wealth from the U.S. in totally one-sided trade, but won't help with North Korea. Nice!