Chinese Economy: General News, Updates and Discussions

[muhammed45]

Every country can print money, not every country can produce goods, without goods, money is meaningless.

True that every country can print money out of thin air. But not every country can export the inflation of that printed money to every country around the world through global transaction mechnisms such as SWIFT etc. When you make dollar your reserve currency, you actually buy that inflation.

For example imagine Iran prints 2X of existing money, what can we do with its eventual inflation?

USA has enslaved all of us, even Chinese hardworking workers are working in the same direction of enabling dollar dominance. Its an economical chain around our necks that we willingly accepted.

The only solution to Your propoosal is dropping the dollar based system.

 

[Beijingwalker]

True that every country can print money out of thin air. But not every country can export the inflation of that printed money to every country around the world through global transaction mechnisms such as SWIFT etc. When you make dollar your reserve currency, you actually buy that inflation.

For example imagine Iran prints 2X of existing money, what can we do with its eventual inflation?

USA has enslaved all of us, even Chinese hardworking workers are working in the same direction of enabling dollar dominance. Its an economical chain around our necks that we willingly accepted.

The only solution to Your propoosal is dropping the dollar based system.

Pros and cons, China is also taking advantage of their system to hollow out their industries and decimate their manufacturing capabilities and then comes in for the kill.
Now we can have a free hand to start the process of establishing a new system to replace theirs.

 

[samejjangir]

True that every country can print money out of thin air. But not every country can export the inflation of that printed money to every country around the world through global transaction mechnisms such as SWIFT etc. When you make dollar your reserve currency, you actually buy that inflation.

For example imagine Iran prints 2X of existing money, what can we do with its eventual inflation?

USA has enslaved all of us, even Chinese hardworking workers are working in the same direction of enabling dollar dominance. Its an economical chain around our necks that we willingly accepted.

The only solution to Your propoosal is dropping the dollar based system.

USA can still build up its industry if it decides to cut military spending. But then NATO, EU etc will all fall. China is taking advantage by exporting cheap goods to eliminate USA industries & hence eliminate USA industrial capacity beyond a point of salvation. Once that happens, China can do anything & USA won't be able to do anything

 

[Beijingwalker]

China may leave some cheap manufacturing to the west and only focus on value added high tech products manufacturing like machines, cars, trains, computers, cellphones, ships in the future.

 

[LeGenD]

Speculators up to making claims once again.

Below is data from IMF:

https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec4e62a4

Euro remains at 2nd spot in Foreign Exchange Reserves around the world and no currency is close to surpassing it in this matter.

One nontraditional reserve currency gaining market share is the Chinese renminbi, whose gains match a quarter of the decline in the dollar’s share. The Chinese government has been advancing policies on multiple fronts to promote renminbi internationalization, including the development of a cross-border payment system, the extension of swap lines, and piloting a central bank digital currency. It is thus interesting to note that renminbi internationalization, at least as measured by the currency’s reserve share, shows signs of stalling out. The most recent data do not show a further increase in the renminbi’s currency share: some observers may suspect that depreciation of the renminbi exchange rate in recent quarters has disguised increases in renminbi reserve holdings. However, even adjusting for exchange rate changes confirms that the renminbi share of reserves has declined since 2022.

Dollar Dominance in the International Reserve System: An Update

The US dollar continues to cede ground to nontraditional currencies in global foreign exchange reserves, but it remains the preeminent reserve currency

www.imf.org

 

[j_hungary]

Below is data from IMF:

https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec4e62a4

Euro remains at 2nd spot in Foreign Exchange Reserves around the world and no currency is close to surpassing it in this matter.

One nontraditional reserve currency gaining market share is the Chinese renminbi, whose gains match a quarter of the decline in the dollar’s share. The Chinese government has been advancing policies on multiple fronts to promote renminbi internationalization, including the development of a cross-border payment system, the extension of swap lines, and piloting a central bank digital currency. It is thus interesting to note that renminbi internationalization, at least as measured by the currency’s reserve share, shows signs of stalling out. The most recent data do not show a further increase in the renminbi’s currency share: some observers may suspect that depreciation of the renminbi exchange rate in recent quarters has disguised increases in renminbi reserve holdings. However, even adjusting for exchange rate changes confirms that the renminbi share of reserves has declined since 2022.

Dollar Dominance in the International Reserve System: An Update

The US dollar continues to cede ground to nontraditional currencies in global foreign exchange reserves, but it remains the preeminent reserve currency

www.imf.org

That's because someone ALWAYS forgot that it doesn't matter if trade were conducted in Yuan, as long as those country that have a direct trade deal with China don't use Yuan as legal tender, they will have to exchange it from Yuan to their own currency somehow. That's why Currency Reserve is WAY, WAY more important to settlement currency. Because that's how Forex is for.

 

[LeGenD]

They still have printing machines in their backyards working non stop. Rednecks print dollar out of thin air. Even in Afghanistan they had a printing machine used to print Afghani-dollar.

To remove this colonial cancer from global transactions, a great alliance between countries is needed.

It cannot be done just like that. The US provides goods and services that have no substitute in the world and these can only be availed by using USD. China also benefit from these transactions because it is involved in manufacturing of a large number of American goods.

Always study IMF data and reports, these are most reliable. Speculators will continue to make claims for various reasons because they want you to invest in their schemes and scams.

 

[Beijingwalker]

Speculators up to making claims once again.

Below is data from IMF:

https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec4e62a4

Euro remains at 2nd spot in Foreign Exchange Reserves around the world and no currency is close to surpassing it in this matter.

One nontraditional reserve currency gaining market share is the Chinese renminbi, whose gains match a quarter of the decline in the dollar’s share. The Chinese government has been advancing policies on multiple fronts to promote renminbi internationalization, including the development of a cross-border payment system, the extension of swap lines, and piloting a central bank digital currency. It is thus interesting to note that renminbi internationalization, at least as measured by the currency’s reserve share, shows signs of stalling out. The most recent data do not show a further increase in the renminbi’s currency share: some observers may suspect that depreciation of the renminbi exchange rate in recent quarters has disguised increases in renminbi reserve holdings. However, even adjusting for exchange rate changes confirms that the renminbi share of reserves has declined since 2022.

Dollar Dominance in the International Reserve System: An Update

The US dollar continues to cede ground to nontraditional currencies in global foreign exchange reserves, but it remains the preeminent reserve currency

www.imf.org

Also reported by China Daily, the Chinese government mouthpiece

"While the RMB overtook the euro to become the second-largest global currency in the trade finance market in June, with a market share of 5.99 percent, its share further grew to 6 percent in July, helping the Chinese currency retain second place, behind only the US dollar, said SWIFT."

More internationalized yuan a growing reality

global.chinadaily.com.cn

 

[Beijingwalker]

It cannot be done just like that. The US provides goods and services that have no substitute in the world

Like what?

 

[LeGenD]

Also reported by China Daily, the Chinese government mouthpiece

"While the RMB overtook the euro to become the second-largest global currency in the trade finance market in June, with a market share of 5.99 percent, its share further grew to 6 percent in July, helping the Chinese currency retain second place, behind only the US dollar, said SWIFT."

More internationalized yuan a growing reality

global.chinadaily.com.cn

Yes, but IMF has pointed out the bigger picture that I have posted already.

One nontraditional reserve currency gaining market share is the Chinese renminbi, whose gains match a quarter of the decline in the dollar’s share. The Chinese government has been advancing policies on multiple fronts to promote renminbi internationalization, including the development of a cross-border payment system, the extension of swap lines, and piloting a central bank digital currency. It is thus interesting to note that renminbi internationalization, at least as measured by the currency’s reserve share, shows signs of stalling out. The most recent data do not show a further increase in the renminbi’s currency share: some observers may suspect that depreciation of the renminbi exchange rate in recent quarters has disguised increases in renminbi reserve holdings. However, even adjusting for exchange rate changes confirms that the renminbi share of reserves has declined since 2022.

 

[nahtanbob]

They still have printing machines in their backyards working non stop. Rednecks print dollar out of thin air. Even in Afghanistan they had a printing machine used to print Afghani-dollar.

To remove this colonial cancer from global transactions, a great alliance between countries is needed.

you are free to conduct commerce without USD
you can start by accepting Pakistani rupees and Afghanistan Afghani

Let us know how it works out

 

[LeGenD]

Like what?

Take Apple for example. Do you think that only China is benefiting from its sales?

Apple is but one of the American brands in a long list.

 

[Beijingwalker]

Yes, but IMF has pointed out the bigger picture that I have posted already.

One nontraditional reserve currency gaining market share is the Chinese renminbi, whose gains match a quarter of the decline in the dollar’s share. The Chinese government has been advancing policies on multiple fronts to promote renminbi internationalization, including the development of a cross-border payment system, the extension of swap lines, and piloting a central bank digital currency. It is thus interesting to note that renminbi internationalization, at least as measured by the currency’s reserve share, shows signs of stalling out. The most recent data do not show a further increase in the renminbi’s currency share: some observers may suspect that depreciation of the renminbi exchange rate in recent quarters has disguised increases in renminbi reserve holdings. However, even adjusting for exchange rate changes confirms that the renminbi share of reserves has declined since 2022.

China doesn't want to let Yuan fully convertible now, not yet, cause China worries yuan could be manipulated by hostile foreign speculators. for now dollar is still useful for China, but China always has plan B up its sleeve, but China is not in a hurry like Russia,

 

[LeGenD]

China doesn't want to let Yuan full convertible now, not yet, cause China worries yuan could be manipulated by hostile foreign speculators. for now dollar is still useful for China, but China always has plan B up its sleeve, but China is not in a hurry like Russia.

Yes, this is correct. There are pros and cons to global reserve currency market share. China does not want its currency to be used like USD because it does not suit its economic system and considerations.

 

[Beijingwalker]

Take Apple for example. Do you think that only China is benefiting from its sales?

Apple is but one of the American brands in a long list.

Apple is easily replaceable, I mean the product , not the name of the brand.

I actually think US may have more trouble to make Apple products alone than China does.