Monday, July 11, 2016

East Asia Forum — China's Changing Economy...it will Take a While


Cutting through the hype about China being adrift economically and financially. They have a plan for rebalancing away from investment for export to domestic consumption and expansion of the service sector —  and they are working the plan.

A lot of the nonsense about the Chinese economy coming from the West is based on the same neoclassical economics that is hobbling growth in the West owing to "expansionary fiscal austerity" to bolster confidence. China is not buying into that nonsense. Apparently, morons are not in charge there.

Economy Watch

4 comments:

Matt Franko said...

Then why is everybody trying to get the hell out of there?

Tom Hickey said...

"Everybody"?

Emigration rate in 2010/11

China 0.4%
India also 0.4%
Philippines 4.5%
Poland 8.9%
Portugal 14.2%
Romania 12.5%
Russian Federation 1.6%
US 0.5%

https://www.oecd.org/els/mig/World-Migration-in-Figures.pdf
Annex 2

Gary Hart said...

Is the cause behind the fall in total factor productivity growth because China is investing less in tangible capital assets? Also, a few years ago I read that China was working on a thorium energy program, do you know anything about that?

MRW said...

Matt, where are you getting this horseshit? Seriously, where are you reading it?

Then why is everybody trying to get the hell out of there?

And btw, if you think the Chinese govt broadcasts their real goals beyond the five-year plans and some general economic numbers that anyone could figure based on inflows and outflows that western economists track, you’ve got another thing coming. Over Xmas/January of 1979/80, the Chinese announced to a bunch of foreign journalists in China that its 25-year goal was to take American manufacturing prowess away from the USA. Destroy it. Dismantle it. It was going to take production away from the USA. This was at the the first "Sino-Australian Press Seminar" on behalf of the Australia-China Council and the All-China Journalists’ Association, which was a four-day seminar in Beijing then a 20-day tour of the country.

It did.

Did anyone pay attention then? China was a backwater by our standards. It was laughable, right?

Did the neocons--that bright rising group of meritocratic know-it-alls--pay attention? Did Reagan?

No.