jamwal wrote:A friend is going to attend Canton fair and will spend 1-2 days in Hong Kong as well. Anything worth buying there ?
Mangkok and Stanley will be interesting for him in hong kong... Ask him to bargain hard.
jamwal wrote:A friend is going to attend Canton fair and will spend 1-2 days in Hong Kong as well. Anything worth buying there ?
The national debt of China is at acceptable level. Such a statement was made today by the ex-Minister of Finance of the People's Republic of China Sheung Huaychen at an economic forum in Boao.
Now the volume of the Chinese national debt consists of about 30 trillion Yuans/4.83 trillion dollars/. “However about 95 percent of this amount is borrowed in the domestic market”, reports Xinhua agency quoting the statement of the ex-minister.
“Low level of interest rates and use by the government of China of the principle of stability when granting new loans allow the state to fulfill obligations in time”, Sheung Huaychen noted.
According to him, in 2012 the size of national debt made 40 percent of the country’s gross domestic product which last year increased to 8.28 trillion dollars. However, estimates of the western experts show this indicator as being much higher levels.
Yes Yes, we have heard the same argument before on this forum that borrowing from self does not lead to any default crisis. One has to wonder what the Japanese are smoking when exactly under similar conditions they state that such *internal* borrowing is unsustainable.Austin wrote:The national debt of the People's Republic of China is at acceptable level
Now the volume of the Chinese national debt consists of about 30 trillion Yuans/4.83 trillion dollars/. “However about 95 percent of this amount is borrowed in the domestic market”, reports Xinhua agency quoting the statement of the ex-minister.
The figure quoted by Satyajit Das was 150% of GDP.According to him, in 2012 the size of national debt made 40 percent of the country’s gross domestic product which last year increased to 8.28 trillion dollars. However, estimates of the western experts show this indicator as being much higher levels.
wong wrote:^^^^
The big difference between China and Japan is that Japan's economy has been deflationary for 10 to 20 years now. Deflation makes debt servicing twice as difficult. What the Japanese have decided to do now (finally!) is print massive amounts of money and devalue the Yen. That should solve the problem, because you really can't go bankrupt owing money to yourself.
pankajs wrote:All it means is when such a crisis hits China the haircut will be fully borne by the ordinary Chinese who will have to bail-out their Government and in the process see much of their deposits evaporate. In Greece and other such places such haircuts was shared by lenders from outside.
No No friend...I am not talking of Shanghai stats at all. The comrade explicitly stated the *Chinese national debt* figures. Anyone who is not familiar with the local politics and procedures will get the false impression and it is not the comrades fault.wong wrote:To Das and the other non-believers who think it's all Shanghai stats and there's no real wealth being created in China. I spent the last two weeks helping get a family friend's kid into American boarding school. They are all completely full and turning away mainland Chinese students. These schools are $50,000+ per year with zero financial aid for international students. On campus visits, I saw Chinese and South Korean kids everywhere and zero South Asians. If that's fake wealth, I'll take that over your 'real' super-duper service economy wealth any day.
why this craze for american boarding schools even in Soko
wong wrote:^^^^
The big difference between China and Japan is that Japan's economy has been deflationary for 10 to 20 years now. Deflation makes debt servicing twice as difficult. What the Japanese have decided to do now (finally!) is print massive amounts of money and devalue the Yen. That should solve the problem, because you really can't go bankrupt owing money to yourself.
To Das and the other non-believers who think it's all Shanghai stats and there's no real wealth being created in China. I spent the last two weeks helping get a family friend's kid into American boarding school. They are all completely full and turning away mainland Chinese students. These schools are $50,000+ per year with zero financial aid for international students. On campus visits, I saw Chinese and South Korean kids everywhere and zero South Asians. If that's fake wealth, I'll take that over your 'real' super-duper service economy wealth any day.
pankajs wrote:The figure quoted by Satyajit Das was 150% of GDP.
ArmenT wrote:Corporate China's Black Hole of Debt
PS: I don't think there is much of a craze for American boarding type education in India
The Obama administration said on Friday that China's currency remained "significantly undervalued," but again stopped short of labeling the world's second-biggest economy a currency manipulator.
Although Beijing controls the pace at which the yuan can rise by intervening in foreign exchange markets, the U.S. Treasury said in a congressionally mandated semi-annual report that China did not meet the legal requirements to be deemed a currency manipulator.
The label is largely symbolic, but would require Washington to open discussions with Beijing on adjusting the yuan's value. Many U.S. lawmakers have accused China of deliberately keeping the yuan undervalued to gain a trade advantage.
As in other reports over the last several years, the analysis on China reflected both the administration's desire to maintain good relations with its top creditor and an attempt to keep up pressure for changes in China that could benefit the U.S. economy and mollify domestic critics.
The report, which surveys the foreign exchange practices of major U.S. trading partners, said China had allowed the yuan to rise 16.2 percent against the dollar in inflation-adjusted terms since June 2010, when China moved off its exchange rate peg.
The yuan, also known as the renminbi, hit a record high against the dollar on Friday as China's central bank fixed its official midpoint for the currency at the strongest level yet ahead of a Beijing visit by U.S. Secretary of State John Kerry.
"Nonetheless, the available evidence suggests the renminbi remains significantly undervalued, intervention appears to have resumed, and further appreciation of the renminbi against the dollar is warranted," Treasury said in a statement.
The Treasury also said it was closely monitoring policies in Japan meant to support the growth of domestic demand. Japan's aggressive monetary policy, which has sharply undercut the value of the yen, has refueled a debate about competitive devaluations.
It has been more than 18 years since the U.S. Treasury has designated any country a manipulator. China was labeled a manipulator between 1992 and 1994.
New Study Finds China Manufacturing Costs Rising to US Level
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Published: Thursday, 18 Apr 2013 | 3:14 AM ET
By: Philip LeBeau
CNBC Auto and Airline Industry Reporter
Walk onto the shop floor at Prince Industries in Shanghai, China and it looks like most other manufacturing plants in this country. It's busy running two shifts, cranking out components that will be shipped to major manufacturers like Caterpillar, Siemens, and Honeywell.
But change is in the air.
The cost of manufacturing in China is going up and rising quickly.
"It's something that we anticipated when we went to China, we just didn't know how quick it would happen," said Mark Miller, CEO of Prince Industries.
China is no longer a slam dunk for manufacturers looking for the lowest cost for operations.
In fact, a new study by the consulting firm AlixPartners estimates by 2015 the cost of outsourcing manufacturing to China will be equal to the cost of manufacturing in the U.S.
"The Chinese manufacturing cost advantage has eroded dramatically in the last few years," said Steve Maurer, AlixPartners managing director. "If you go back to 2005, it was pretty common for landed cost from China to be 25 to 30 percent less than the cost of manufacturing in the United States. Based on our analysis, two-thirds of that gap has closed."
Maurer said higher labor wages, the rising value of China's currency, and the cost of shipping goods from China to points around the world have made manufacturing in China more expensive.
"If trends continue, the China cost is going to be on par with U.S. cost in the next four to five years," said Maurer.
Chinese manufacturing is already moving inland to where they can hire migrant farmers at much lower rates than the coastal cities.
There are also 100 million people in Vietnam, just as capable and willing to work for lower wages. Plus 250 million people in Indonesia. There is already small amounts of manufacturing leaving China for those places.
If sub-Saharan Africa ever gets it's political act together, that will be the next hot spot.
Labor intensive manufacturing is not coming back to the US. Wages are high, skills are no better than elsewhere, regulation is over-the-top, and now add ObamaCare as another reason.
Researchers in Japan and the US have analyzed the genes of a new strain of avian (bird) flu that's killed at least 17 people in China in recent weeks, and discovered that some of the new H7N9 viruses have mutated to be more effective and deadlier in humans than they are in birds. The findings "raise concerns regarding their [the virsues'] pandemic potential," according to the researchers, who published their findings in a paper in the journal Eurosurveillance last week.
VIRUSES "RAISE CONCERNS REGARDING...PANDEMIC POTENTIAL"
Specifically, the researchers examined genes from four infected people in China and found that in all cases, the viruses in their bodies lacked certain genes of H7N9 in birds and that "this deletion is associated with increased virulence in mammals," or increased ability to cause illness, and eventually death. By contrast, in birds, the illness caused by these viruses is only relatively mild. Other mutations found from the human virus samples indicated that they preferred to bind with human genes. The research didn't reveal that virus was capable of transmitting between humans directly, which would be major cause for alarm, since avian flu usually only passes from infected birds directly to humans who handle or are in close contact with them. But in China, up to 40 percent of the people infected so far had no direct contact with birds, worrying the World Health Organization.Still, it's too early to say whether the new viruses will lead to a pandemic, according to the US National Institute of Allergy and Infectious Diseases (NIAID), which funded the new research. “The H7N9 influenza virus is a new concern that the public health and scientific communities will continue to track closely, including watching for any genetic mutations that might enable the virus to become transmissible from person to person or to cause more severe disease,” said NIAID Director Anthony Fauci, M.D. in a statement published online today.
"THE H7N9 INFLUENZA VIRUS IS A NEW CONCERN."
No human cases of the H7N9 bird flu strain have been reported outside of China yet, according to the World Health Organization. Nonetheless, the US Centers for Disease Control and Prevention has ordered a vaccine that's now in development, and several other countries are reported to be making preparations to produce their own, including China and Taiwan, though no official production has begun.
Acharya wrote:http://www.cnbc.com/id/100651692New Study Finds China Manufacturing Costs Rising to US Level
Text Size
Published: Thursday, 18 Apr 2013 | 3:14 AM ET
By: Philip LeBeau
CNBC Auto and Airline Industry Reporter
Walk onto the shop floor at Prince Industries in Shanghai, China and it looks like most other manufacturing plants in this country. It's busy running two shifts, cranking out components that will be shipped to major manufacturers like Caterpillar, Siemens, and Honeywell.
But change is in the air.
The cost of manufacturing in China is going up and rising quickly.
"It's something that we anticipated when we went to China, we just didn't know how quick it would happen," said Mark Miller, CEO of Prince Industries.
China is no longer a slam dunk for manufacturers looking for the lowest cost for operations.
In fact, a new study by the consulting firm AlixPartners estimates by 2015 the cost of outsourcing manufacturing to China will be equal to the cost of manufacturing in the U.S.
"The Chinese manufacturing cost advantage has eroded dramatically in the last few years," said Steve Maurer, AlixPartners managing director. "If you go back to 2005, it was pretty common for landed cost from China to be 25 to 30 percent less than the cost of manufacturing in the United States. Based on our analysis, two-thirds of that gap has closed."
Maurer said higher labor wages, the rising value of China's currency, and the cost of shipping goods from China to points around the world have made manufacturing in China more expensive.
"If trends continue, the China cost is going to be on par with U.S. cost in the next four to five years," said Maurer.Chinese manufacturing is already moving inland to where they can hire migrant farmers at much lower rates than the coastal cities.
There are also 100 million people in Vietnam, just as capable and willing to work for lower wages. Plus 250 million people in Indonesia. There is already small amounts of manufacturing leaving China for those places.
If sub-Saharan Africa ever gets it's political act together, that will be the next hot spot.
Labor intensive manufacturing is not coming back to the US. Wages are high, skills are no better than elsewhere, regulation is over-the-top, and now add ObamaCare as another reason.
heech wrote:- next time you're in Beijing, Shanghai, or any of the other first-tier cities... realize that many (most?) of the people you see walking down the street, including blue-collar workers / taxi drivers, are millionaires in US dollar terms, on paper at least. That's quite simply what their homes are worth.
Theo_Fidel wrote:Or perhaps it indicates a lack of green card.....
sanjaykumar wrote:I do live in the west and have worked in the US. Next time you are in China, please hold up a placard for me- let it read something simplistic like 'one man one vote'. To make it fairer, do so on the bullet train. You don't have to say anything.
Then post here.
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