China Post Pandemic Economy - Not Good
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https://www.bbc.com/news/business-66506132
China has stopped releasing youth unemployment figures, which were seen by some as a key indication of the country's slowdown.
The decision is due to changes in the world's second largest economy and its society, a government spokesman said.
In June, China's jobless rate for 16 to 24 year olds in urban areas hit a record high of more than 20%. -
That should make the problem go away.
They must have learned that from the anti-standardized test folks here.
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https://www.cnn.com/2023/08/18/investing/china-evergrande-bankruptcy-explained/index.html
Evergrande, one of China's largest real estate developers, filed for Chapter 15 bankruptcy.
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China isn't Japan in the 1990's. How Its Economic Meltdown Is Different.
PS. The article can be read using "reader view"
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Another concern
"China's colossal hidden-debt problem.
This mainly refers to a mountain of liabilities accumulated by the country's local governments, mostly to fund regional infrastructure projects such as building roads and bridges. An analysis by the Chinese media outlet Caixin Global estimated the outstanding obligations of the so-called local government financing vehicles, or LGFVs, at close to a staggering $10 trillion."
"For months, China's local administrations have struggled to turn their financing vehicles profitable – increasing pressure on the national government to prop up the ailing sector via costly interventions.
As risks tied to the sector mount, banks are unwilling to lend more, investors are turning their backs on bonds, and viable projects are harder to come by, according to several anonymous employees interviewed by Bloomberg.
As a result, the local governments have been struggling to generate enough income or raise funding to meet the costs of servicing their debt."
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https://explainingfinance.com/news/plunging-pork-prices-tip-china-back-into-deflation/
Consumer prices in China fell more than expected last month, sliding the country back into deflation and renewing concerns about the strength of the world’s second largest economy.
The country’s National Bureau of Statistics (NBS) said Thursday that the consumer price index (CPI) edged down 0.2% in October compared to the same month a year ago. The decline exceeded the 0.1% fall forecast by a Reuters poll of analysts.
The drop was mainly attributed to falling food prices, particularly pork, which has been sliding for months and is down 30% compared to a year ago, according to Goldman Sachs analysts.
Maybe we should sell them some US beef. LOL
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Always remember, Operation Valkyrie was an act of sedition.
Warning: I post things that interest me. Read and comment at your own discretion. -
@Axtremus said in China Post Pandemic Economy - Not Good:
https://www.cnn.com/2023/08/18/investing/china-evergrande-bankruptcy-explained/index.html
Evergrande, one of China's largest real estate developers, filed for Chapter 15 bankruptcy.
https://www.nytimes.com/2024/01/28/business/china-evergrande.html
Court decision:
Evergrande Will Be Dismantled, a ‘Big Bang’ End to Years of Stumbles
After multiple delays and even a few faint glimmers of hope, a Hong Kong court has sounded the death knell for what was once China’s biggest real estate firm. -
@Axtremus said in China Post Pandemic Economy - Not Good:
Court decision:
Evergrande Will Be Dismantled, a ‘Big Bang’ End to Years of Stumbles
After multiple delays and even a few faint glimmers of hope, a Hong Kong court has sounded the death knell for what was once China’s biggest real estate firm.Saw that earlier. What are the global ramifications?
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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@George-K Just from my opinion, not super major issue. Evergrande was pretty much a domestic only company in China.
But, it may make foreign companies reduce their investment in China if they see concern about the continuing domestic economic problems there.
So, it may "spiral" domestically.
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Some more bad news for China economy. The below article looks at how small/medium size exporters are really hurting.
https://www.reuters.com/world/china/chinas-tumbling-prices-push-some-exporters-brink-2024-02-04/
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They're coming here through Mexico.
https://www.cbsnews.com/news/us-border-mexico-chinese-migrants-60-minutes/
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@taiwan_girl said in China Post Pandemic Economy - Not Good:
https://www.reuters.com/world/china/chinas-tumbling-prices-push-some-exporters-brink-2024-02-04/
From the article:
About 180 million people work in export-related jobs, commerce ministry data from 2022 shows.
That's more than half the size of the US population including children and retirees!
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https://www.cnn.com/2024/02/06/investing/china-stocks-rally-government-stimulus/index.html
Chinese stocks staged their biggest rally in years Tuesday, after the country’s sovereign wealth fund said it would step up buying shares as officials scramble to draw a line under a three-year market rout.
Not surprised that the CCP intervened, it's a matter of time and intensity.
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Deflation in China
China Deflation Alarms Raised by Falling Prices for Food and Cars
In addition to consumer price declines in January, wholesale prices fell last month, and have been down in every month since October 2022. -
@Axtremus said in China Post Pandemic Economy - Not Good:
Deflation in China
China Deflation Alarms Raised by Falling Prices for Food and Cars
In addition to consumer price declines in January, wholesale prices fell last month, and have been down in every month since October 2022.Isn't that good? When talking about Bidenomics there have been constant complaints that lower inflation rates don't equate to lower prices (because apparently that isn't really obvious)
Maybe if we were Communist, we'd get lower prices, and we'd all be happy!
