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13 votes
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What would happen if China called in its debt?

You have to understand how international debt works. These are not loans, but bonds. China buys a US bond for, e.g., 98 USD. This bond is a promise by the US Treasury to pay 100 USD one year from now. ...
Tobias's user avatar
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12 votes

Why do some news say China’s economy is bad yet still predicting its 2023 growth to be around 5 per cent?

The only time I read the word bad in the linked news article is refering to The government has set a modest GDP growth target of around 5% for this year after badly missing its 2022 goal. The ...
AKdemy's user avatar
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10 votes
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If Germany is the largest exporter, why do Chinese products pervade the the US market?

Intermediate and capital goods used in the production of other goods are often very expensive and made by Germany. Think fancy manufacturing equipment in chemicals, semiconductors, and metal ...
BKay's user avatar
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5 votes

Does China subsidize its exports?

World Trade Organization (WTO) rules prohibit export subsidies and China joined the WTO almost 15 years ago (in December 2001). As a condition of membership, China had to eliminate export subsidies in ...
emeryville's user avatar
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4 votes

What would happen if China called in its debt?

Also remember that China's holdings of US Treasury's are a manifestation of the fact that they run a current account surplus with the US e.g. they sell more stuff to us than what they buy from us, ...
HookahBoy's user avatar
4 votes

When can we expect China to become a developed country?

Just because a country has a lot of resources (including human capital), it does not necessarily form a path for a developed nation. China is also very involved in military conflicts. It just takes ...
Vraj Shroff's user avatar
4 votes
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Why is the Australian dollar, often viewed by traders as a proxy for the Chinese economy?

China's currency, the yuan (CNY), only partially reflects what goes on in China's economy. It doesn't trade freely; the Chinese government sets an official rate for it every day and only allows it ...
BKay's user avatar
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4 votes

Why do some news say China’s economy is bad yet still predicting its 2023 growth to be around 5 per cent?

China's economy was expected to grow by significantly more than 5%, so growing by 5% is "bad". Per this source, China's economy was expected to grow by 8.8% in 2021. This number has of ...
Allure's user avatar
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3 votes

What were "scissors prices" (China, 1950s)?

Under Mao the Chinese government was a planned economy, prices were set by the party, not by the free market. Procurement prices of agricultural produce, what the government payed to farmers, were ...
Giskard's user avatar
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3 votes

Why does lowering the value of yuan against the USD disadvantage the US and benefit China

The article reflects a consensus view of the trade situation between US and China. Personally I see it differently : China has been willing to make and ship trillions of dollars’ worth of goods to ...
dm63's user avatar
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3 votes

Why is the Australian dollar, often viewed by traders as a proxy for the Chinese economy?

I couldn't read the FT article... but... According to this article here, China imports a lot of raw material from Australia. This means that if Chinese economy is doing well, they import a lot of ...
Art's user avatar
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3 votes

Trade in services between the US and China

Table 2.2 of https://www.bea.gov/scb/pdf/2017/10-October/1017-international-services-tables.pdf suggests US exports of services to China in 2016 worth $\$54$bn and US imports of services from China ...
Henry's user avatar
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3 votes

Why is the Chinese stock market weak while its economy is strong?

Well for one, the stock market doesn't inherently represent the real economy, while they do of course tend to be correlated, it is entirely possible (though usually somewhat unlikely) to have a ...
Dot_plot21's user avatar
3 votes

Why is it a problem if China is exporting "too many clean-energy goods"?

Why is it a problem if China is exporting "too many clean-energy goods"? Even if closing inefficient US EV plant might lead to higher overall US welfare, it is not a pure Pareto improvement ...
1muflon1's user avatar
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3 votes

Why is it a problem if China is exporting "too many clean-energy goods"?

The question assumes it is a problem. But is it really a problem? Even if it is, who’s problem is it? In Janet Yellen’s own words: “Credibility abroad begins with credibility at home.” When the United ...
Ciao Chao's user avatar
2 votes
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How is it possible that shipping of eBay items from China to US is 'free'?

The major reasons that I understand are that: the Chinese government subsidizes shipping. the US Postal Service, eBay China, and Hong Kong Post office have a trilateral agreement called the ePacket ...
Kitsune Cavalry's user avatar
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2 votes
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Confusion regarding debt to GDP ratio

The answer is in the the first line and title of the articles. Not all debt is government debt. One calculation also includes household and corporate debt.
Giskard's user avatar
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2 votes

Why does China buy so much U.S. Treasury debt?

Similar to previous answers but with some additional sources (and possibly simpler?) By investing abroad dollars(or any other currency) are purchased in exchange for Yuan, this reduces the value of ...
Harry de winton's user avatar
2 votes

Chinese tarriffs (pre-tradewar)

First a disclaimer: Trade imbalances are something that we should expect to happen, especially between two massive economies like the US and China. In fact, it will probably be very hard to find a ...
Regio's user avatar
  • 4,188
2 votes
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Are US-branded products manufactured in China considered Chinese?

Short answer, yes, they are considered Chinese imports. Your excellent question speaks to the flaw in using Gross Domestic Product as a measurement of the health of a nation's economy. The flaw is ...
Daniel's user avatar
  • 476
2 votes

Why are imported Chinese products in India cheaper than those locally produced?

Consider an exact same product, say an umbrella, which is both imported from China in India and locally produced. The reason why the Chinese product is cheaper compared to the local one could be ...
emeryville's user avatar
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2 votes
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What are the household holdings of financial products in China?

I do not think there is some dataset that has such an detailed breakdown that you want. However, one of the most widely used datasets on financial assets held by households are the various national ...
1muflon1's user avatar
  • 57.1k
2 votes

Why would governments sell bonds when the economy is in recovery?

The article pretty much answers this: China has issued 100 billion yuan (about 14.1 billion U.S. dollars) of special government bonds for COVID-19 control measures in a bid to support local ...
Brian Romanchuk's user avatar
2 votes
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Why would China's housing be in a bubble?

This issue has been at the fore among China watchers for many years. While bubble classification is often subjective (even the Fed concedes): [The] econometric detection of asset price bubbles cannot ...
Arash Howaida's user avatar
2 votes
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What would happen if China were to suddenly stop all trade with the US?

Have any respectable economists made any predictions about the consequences of such a move for the global economy, including the Chinese and the US economies? As far as I can see there is no ...
1muflon1's user avatar
  • 57.1k
1 vote
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Why does lowering the value of yuan against the USD disadvantage the US and benefit China

For the first question, in order to buy US assets, China sells yuan and buys dollars, which it can then use to purchase US assets (typically Treasuries). That increases the supply of yuan/demand for ...
Amaan M's user avatar
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1 vote
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Who paid the bill for cheap Chinese exports?

The United States was paying the bill. (This has now changed).
hawkeye's user avatar
  • 153
1 vote
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China GDP Data - Base year

In this paper, page 8, it says Quarterly seasonally adjusted nominal GDP and its deflator are constructed by Higgins and Zha (2015). That paper can be found here (google did not help to find ...
luchonacho's user avatar
  • 8,591
1 vote

Where can I find the statistics of import crude oil to China?

I'm not sure how helpful this is but the way the information is displayed is really nice. https://oec.world/en/profile/country/chn/
Ryan JT's user avatar
  • 11

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