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China’s stagnation in one picture.
728 sats \ 10 comments \ @zuspotirko 28 May econ
https://pbs.twimg.com/media/GOiFcOiWQAAytGm?format=jpg&name=large
That's what the middle income trap looks like. Timeline coincides with China shallowing losses from a real estate bubble of huge ghost towns and a population pyramid crisis.
China is currently planning on solving this by - you guessed it - more central planning. A whole EV industry out of nothing that is bad news for e.g. Tesla and Germany - but China will shallow the cost of pivoting a whole country of a billion people. It's bonkers honestly.
Counter argument is that the divergence looks different if adjusted for PPP:
https://pbs.twimg.com/media/GOrjO5AWgAA676f?format=png&name=large
That means China is currently getting more competitive again. Which is a smart move to kick the can of the middle income trap down the road. And a smart position to be in to buy the vast resources of raw materials they're currently stockpiling. And smart if they soon want to sell all those EVs to the world.
Conclusion: idk man, we'll see
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15 sats \ 0 replies \ @0xtr 29 May
Conclusion: idk man, we'll see
😂
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5 sats \ 0 replies \ @freebookspls 28 May freebie
Last year Xi Jinping started a new campaign telling people to "just endure", or "embrace hardship".
It's not a good look when state Propaganda tells you things are going to get bad.
https://www.thinkchina.sg/society/xi-jinping-calls-young-chinese-embrace-hardship
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10 sats \ 2 replies \ @Undisciplined 28 May
China’s been going through intense deflationary pressures while America is going through strong inflationary pressures.
It’s making for quite the murky picture.
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21 sats \ 1 reply \ @Satosora 29 May
But who would you want to be? US or china....I know where I would rather be.
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0 sats \ 0 replies \ @Undisciplined 29 May
Regardless of which graph is more accurate, the US is still far more free and prosperous than China.
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0 sats \ 0 replies \ @02bcd3eeb0 30 May
The other part of the counterargument is that US nominal GDP increased a lot over the last few years due to money printing, inflation and government spending. It's not real or useful growth, just a garbage metric they can manipulate.
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0 sats \ 2 replies \ @Satosora 29 May
They are trying to push their brics currency, too. Wonder how that will work out.
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110 sats \ 1 reply \ @zuspotirko OP 29 May
"brics" doesn't exsist. It's just China & India that are growing, a bunch of stagnating backwaters and all of them hate each other.
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10 sats \ 0 replies \ @Satosora 29 May
haha
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0 sats \ 0 replies \ @Malachi17 28 May
They are sorta hoping that the world economy still wants to buy what they have, aren't they?
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