China Outflow Signals Woes

House of card's. Been predicted.

You had a good run, but it's over. Welcome to the American century.

The American century as you call it is long over. The Asian countries are slowly going to take over. India and China are powerhouses that eventually, even the United States cannot match.

For now the US has better positioning, but should China stop exporting to US, the US would slowly run out of materials and large bankruptcies would ensue. Sure China loses out on profits, but the crippling blow of this is potentially worth it.

India is now a nuclear power. Enough has been said to revoke your argument.

I can understand if your a developer or exporter in China... things are not going to be looking so good for your in the near future...

boonie has not read the latest news

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By Chris Buckley

CHENGDU, China | Mon Nov 21, 2011 12:48pm EST

CHENGDU, China (Reuters)- Chinese Vice-Premier Wang Qishan warned on Monday the global economy is in a grim state and the visiting U.S. commerce secretary said China would spend $1.7 trillion on strategic sectors as Beijing seeks to bolster waning growth.

Wang said an "unbalanced recovery" may be the best option to deal with what he had described on Saturday as a certain chronic global recession, suggesting Beijing would bolster its own economy before it worries about global imbalances at the heart of trade tensions with Washington.

"An unbalanced recovery would be better than a balanced recession," he said at the annual U.S.-China Joint Commission on Commerce and Trade, or JCCT, in the southwest Chinese city of Chengdu.

The comments, echoed by Vice Finance Minister Zhu Guangyao, stopped short of suggesting China would try to boost exports as it had done during the 2008-2009 global financial crisis when it pegged the yuan to the dollar.

Instead, U.S. Commerce Secretary John Bryson told reporters that China had confirmed to U.S. officials that it planned to spend $1.7 trillion on strategic sectors in the next five years.

Beijing has previously said these sectors include alternative energy, biotechnology and advanced equipment manufacturing, underlining its aim to shift the growth engine of the world's No.2 economy to cleaner and high-tech sectors.

The investment amount of 10 trillion yuan ($1.7 trillion) is more than two times bigger than the eye-popping 4 trillion yuan stimulus package launched during the global financial crisis, plans first reported by Reuters a year ago.

"Global economic conditions remain grim, and ensuring economic recovery is the overriding priority," said Wang, the top official steering China's financial and trade policy, at the start of the second day of talks with the Americans.

His comments suggested that Beijing should attend to bolstering China's own growth before it worried about global imbalances. In other words, a strong Chinese economy that brings a continued trade deficit with the United States would be better for the world economy than a slowdown in China itself.

"As major world economies, China and the United States would make a positive contribution to the world through their own steady development," Wang told dozens of trade, investment, energy and agricultural officials from each government seated in a conference hall.

On Saturday, Wang gave the most dire assessment on the world economy from a senior Chinese policymaker to date.

"The one thing that we can be certain of, among all the uncertainties, is that the global economic recession caused by the international financial crisis will be chronic," he was quoted as saying by the official Xinhua news agency.

http://www.reuters.com/article/2011/11/21/us-...

The remarks weighed on Chinese and Hong Kong stocks, while world markets were also weak as investors fretted over the euro zone debt crisis.

China's growth slowed to 9.1 percent in the third quarter from 9.5 percent in the second-quarter and 9.7 percent in the first quarter, but the rate remains in Beijing's comfort zone.

After tightening monetary policy to fight the threat of inflation, the central bank has since loosened its grip on bank credit in a bid to support cash-starved small firms and pledged to fine-tune policy if needed as economic growth slowed down.

"It's clear now that Beijing is ready for policy fine-tuning (to support growth) at a time when the overall domestic and foreign economic situation is not optimistic," said Hua Zhongwei, an economist with Huachuang Securities in Beijing.

ON TRADE, FRICTION AND PROGRESS

U.S. officials said the discussions yielded progress on the question of forced technology transfers to Chinese companies, long a sore point for U.S. businesses, and on other trade irritants involving software, beef and cars.

In particular, China committed not to require foreign automakers to hand their new energy vehicle technology over to Chinese partners, or to establish Chinese brands as a condition for market access, said U.S. Trade Representative Ron Kirk.

"China also confirmed that foreign-invested companies will be eligible on an equal basis for any subsidies or incentive programs for electric vehicles," Kirk said, highlighting an issue that was a top concern for many U.S. lawmakers.

Robert Holleyman, president of the Business Software Alliance, said in Washington he was he was encouraged by a renewed Chinese commitment to ensure government agencies and state-owned companies are using only legal software.

"We are pleased that the State Council, China's chief governing body, has been put directly in charge. We need to see tangible results in the short term and long term, because the scale of piracy in China is enormous," Holleyman said.

Although the JCCT talks do not address exchange rate policies, U.S. officials at the talks warned Wang and his colleagues that they could not ignore rising American impatience with China's trade policies and investment barriers.

U.S. gripes about China's trade-boosting policies spilled into President Barack Obama's meeting with Chinese Premier Wen Jiabao on Saturday in Bali, when Obama raised China's exchange rate policies, which many in Washington say keep the yuan cheap against the dollar in order to help Chinese exports.

However, Zhong Wei, an influential economist at Beijing Normal University, said the benefits to the United States of yuan appreciation "are nearly zero."

"Cheap Chinese goods have been a subsidy for the poor in the U.S., and now the U.S. government wants to eliminate such subsidy while it's having difficulty creating jobs," he said.

At the heart of the trade friction between the two countries is a U.S. trade deficit with China that swelled in 2010 to a record $273.1 billion from about $226.9 billion in 2009.

http://www.reuters.com/article/2011/11/21/us-...

It actually signals that the export market is shrinking, while the import or rather domestic consumption in China is picking up.

to be honest things like this are always gonna be happening.. its not exactly suprisin gis it.

to be honest the whole world is a mess and some might say its meant to be like that. i cant really see the point of having the world run like this. .. but i cant see the point of lots of energy being wasted by stabilising the life of many things..

Jeremiah wrote:

The American century as you call it is long over. The Asian countries are slowly going to take over. India and China are powerhouses that eventually, even the United States cannot match.
For now the US has better positioning, but should China stop exporting to US, the US would slowly run out of materials and large bankruptcies would ensue. Sure China loses out on profits, but the crippling blow of this is potentially worth it.
India is now a nuclear power. Enough has been said to revoke your argument.

Ironic, isn't it, that such crap comes out from a place called Waterloo?

Hilarious.

Zsari wrote:

It actually signals that the export market is shrinking, while the import or rather domestic consumption in China is picking up.

Hee, Hee. So who is going to support that growing domestic market? So much of what you are reading about China's economy right now is purely propaganda to calm the jittery nerves of investors. China is in trouble in spite of all the happy chit-chat on Chinese media blogs and news services. Reading between the lines is very important.

Washington Post: http://tinyurl.com/76ocfc4

"Thousands of workers clashed with police on Thursday at a footwear factory in the city of Dongguan after 18 workers were reportedly laid off and overtime was cut. A thousand workers went on strike on Tuesday at the Shenzhen factory of a Taiwanese electronics company. A day earlier, hundreds reportedly struck at a Shenzhen company that makes underwear and lingerie.

On October 28, hundreds of employees of a Dongguan furniture company protested in the streets after the factory boss disappeared without paying them three months' salary.

The wave of strikes recalls an outbreak of labour unrest in the spring and summer last year. But that was widely attributed to China's growing wealth gap and to the frustrations of young, urbanised and more digitally wired workers, many of them migrants from the countryside, who have become more conscious of their rights and less willing to tolerate the old "sweatshop" conditions their parents endured."

~~~~~~~~~~

The Epoch Times: http://www.theepochtimes.com/n2/china-news/ch...

"Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. He coined the phrase:“In China, every province is a Greece.”

In the unusual, closed-door lecture, Lang gave a frank analysis of the Chinese economy and the censorship that is placed on intellectuals and public figures.“What I’m about to say is all true. But under this system, we are not allowed to speak the truth,” he said."

~~~~~~~~~~

Over 10,000 workers besiege shoe factory in massive strike in Dongguan: http://shanghaiist.com/2011/11/18/shoe-factor...

"Southern Metropolitan Daily added that the factory cancelled all extra working hours, which means a significant decline in worker wages.

A female worker tells the press that she and her husband used to work extra hours even on weekends and each could earn 1,800 to 1,900 yuan per month. Without extra work and incentive bonuses, they each could only earn around 1,100, which is barely enough to feed the family."

~~~~~~~~~~

Reuters: http://www.reuters.com/article/2011/11/08/us-...

"Up to a third of Hong Kong's 50,000 or so factories in China could downsize or shut by the end of the year..."

~~~~~~~~~~

The domestic market is going to save them? Stay tuned for more propaganda:>

Jeremiah wrote:

The American century as you call it is long over. The Asian countries are slowly going to take over. India and China are powerhouses that eventually, even the United States cannot match.
For now the US has better positioning, but should China stop exporting to US, the US would slowly run out of materials and large bankruptcies would ensue. Sure China loses out on profits, but the crippling blow of this is potentially worth it.
India is now a nuclear power. Enough has been said to revoke your argument.

You make a good point,however that won't get many investors back in the game...look at the logistics from an investment point of view,who can recover more quickly,300 million or 1 billion 300 million,would you trust your investments to a communist govt.with unpredictable regulations,lets be realistic! china is growing a field of "bubbles" that will hit the fan really hard within 6 years,I'll take my chances with the u.s.,the worst thing that will happen is that ows will camp on my doorstep....by the way,have you ever heard of the hyper inflation theory....I didn't think so!...its quite a weapon according to vitts.

^ chicken little...

we already know China is trying to move away from its low end export markets since 2008

we already know that the surplus will be lower this year probably around 100 billion because China is importing more... China not wanting a huge trade surplus anyways...and trying to enhance their consumer markets

and

we already know China is planning to spend 1.7 trillion USD over the next 5 years on other strategic industries

shinningelectr0n wrote:

<quoted text>
Hee, Hee. So who is going to support that growing domestic market? So much of what you are reading about China's economy right now is purely propaganda to calm the jittery nerves of investors. China is in trouble in spite of all the happy chit-chat on Chinese media blogs and news services. Reading between the lines is very important.
Washington Post: http://tinyurl.com/76ocfc4
"Thousands of workers clashed with police on Thursday at a footwear factory in the city of Dongguan after 18 workers were reportedly laid off and overtime was cut. A thousand workers went on strike on Tuesday at the Shenzhen factory of a Taiwanese electronics company. A day earlier, hundreds reportedly struck at a Shenzhen company that makes underwear and lingerie.
On October 28, hundreds of employees of a Dongguan furniture company protested in the streets after the factory boss disappeared without paying them three months' salary.
The wave of strikes recalls an outbreak of labour unrest in the spring and summer last year. But that was widely attributed to China's growing wealth gap and to the frustrations of young, urbanised and more digitally wired workers, many of them migrants from the countryside, who have become more conscious of their rights and less willing to tolerate the old "sweatshop" conditions their parents endured."
~~~~~~~~~~
The Epoch Times: http://www.theepochtimes.com/n2/china-news/ch...
"Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. He coined the phrase:“In China, every province is a Greece.”
In the unusual, closed-door lecture, Lang gave a frank analysis of the Chinese economy and the censorship that is placed on intellectuals and public figures.“What I’m about to say is all true. But under this system, we are not allowed to speak the truth,” he said."
~~~~~~~~~~
Over 10,000 workers besiege shoe factory in massive strike in Dongguan: http://shanghaiist.com/2011/11/18/shoe-factor...
"Southern Metropolitan Daily added that the factory cancelled all extra working hours, which means a significant decline in worker wages.
A female worker tells the press that she and her husband used to work extra hours even on weekends and each could earn 1,800 to 1,900 yuan per month. Without extra work and incentive bonuses, they each could only earn around 1,100, which is barely enough to feed the family."
~~~~~~~~~~
Reuters: http://www.reuters.com/article/2011/11/08/us-...
"Up to a third of Hong Kong's 50,000 or so factories in China could downsize or shut by the end of the year..."
~~~~~~~~~~
The domestic market is going to save them? Stay tuned for more propaganda:>

Ever heard of the term consumer? They are what supports any domestic market. Regurgitating a long resolved protest in Donguan over and over is the best you can do? The export oriented manufactory has been shrinking since 08, and there were reports of mass closure 2 years ago, but that's a small fraction of the Chinese economy.

Funny how one speaks of every Chinese province as greece, for every US state are far bigger than Greece, more like Italy.

Zsari wrote:

<quoted text>
Ever heard of the term consumer? They are what supports any domestic market. Regurgitating a long resolved protest in Donguan over and over is the best you can do? The export oriented manufactory has been shrinking since 08, and there were reports of mass closure 2 years ago, but that's a small fraction of the Chinese economy.
Funny how one speaks of every Chinese province as greece, for every US state are far bigger than Greece, more like Italy.

Consumer-led recoveries can only happen when those consumers have money to spend. The Chinese people have an unusually high savings rate and right now they are losing jobs and pay rates.

Chinese consumers will lead a parade of Mao statues, perhaps?

shinningelectr0n wrote:

<quoted text>
Consumer-led recoveries can only happen when those consumers have money to spend. The Chinese people have an unusually high savings rate and right now they are losing jobs and pay rates.
Chinese consumers will lead a parade of Mao statues, perhaps?

you indian retard, it takes 10 years for China to build a brand new airport in just about every major coast cities, it took 20 years for India to built one airport in New Delhi, if you have tons of time due to your being a loser and have no life, why don't you go fix your own curry smelling problem rather than sticking your dark skinned indian nose into Chinese affairs eh?

The stock markets around the world shot back up, the economy is better than what the doom and gloomers have rpedicted, proving once again they are wrong. I was just being cautious when I sold my China shares after a tremendous run up.

dzhou wrote:

<quoted text>
you indian retard, it takes 10 years for China to build a brand new airport in just about every major coast cities, it took 20 years for India to built one airport in New Delhi, if you have tons of time due to your being a loser and have no life, why don't you go fix your own curry smelling problem rather than sticking your dark skinned indian nose into Chinese affairs eh?

Still shadow-boxing inside your head, eh, penguin?

shinningelectr0n wrote:

<quoted text>
Still shadow-boxing inside your head, eh, penguin?

You should ask a Singaporean Chinese about shadow boxing of indians, who are known for "chasing their own tails", they bullshit all day without being able to do any practical things, you are an perfect example of them. You hop on a foreign country's forum bashing other people but turn a blind eye on your own country's child prostitution and shithole sanitary situation, what do you really expect out of this shittingbooger?

shinningelectr0n wrote:

<quoted text>
Still shadow-boxing inside your head, eh, penguin?

Yer insulting the intelligence of penguins everywhere when you say that.

dzhou wrote:

<quoted text>
You should ask a Singaporean Chinese about shadow boxing of indians, who are known for "chasing their own tails", they bullshit all day without being able to do any practical things, you are an perfect example of them. You hop on a foreign country's forum bashing other people but turn a blind eye on your own country's child prostitution and shithole sanitary situation, what do you really expect out of this shittingbooger?

Do you have your own planet?