China's Economy Outlook: Impressive and Revolutionary?
Ok Guys, I have to admit it, i am so confused, I have a feeling of despise towards economists. Yes, the same economists that spread the news of the drastic economic collapse of China and finding "seemingly indisputable arguments" to back it up. All at once.
Few months ago, if you Googled the Chinese economy news, all the news you would get are those predicting hard landing and a major catastrophic collapse of the second largest economy in the world.
So why? why all of a sudden did these bright economists decide that the Chinese economy is not only doing just fine, but is also Impressive and Revolutionary.
Here we let me give you some Quotes
"
One of the big stories in the global economy is the Chinese non-hard landing.
Fresh data out out last night exceeded expectations (in terms of power generation, industrial production, and retail sales).
Via Jefferies, this chart of Chinese electric power generation shows how big 2013 is compared to previous years, but also how impressive the recent rise is, given that in past years, August saw a seasonal decline.
"
Read more: This Chart Of Electric Power Generation Shows Just How Impressive The Chinese Economic Recovery Is Looking
Read more: http://www.businessinsider.com/chinese-power-generation-2013-9#ixzz2ebtTsdwj
Another interesting analysis I've recently read is this one:
"
Long after concerns about tightening U.S. monetary policy have faded, a more profound issue will still dog global policymakers: how to handle the second stage of China's economic revolution.
The first phase, industrialization, shook the world. Commodity-producing countries boomed as they fed China's endless appetite for natural resources. Six of the 10 fastest-growing economies last decade were in Africa.
China's flood of keenly priced manufactured goods hollowed out jobs in advanced and emerging nations alike but also helped cap inflation and made an array of consumer goods affordable for tens of millions of people for the first time.
The second stage of China's development promises to be no less momentous.
Consumption will take over the growth baton from investment. Services will grow as a share of the economy, while industry shrinks. Commodity-intensive mass manufacturing based on cheap labor will give way to greener, cleaner ways of making things.
More of the value added by a better-educated, more productive workforce harnessing new technologies will stay in China instead of going to multinational companies.
That's the plan, anyway.
China will remain the most powerful engine of global growth for the next couple of decades, but it will no longer be just processing imported raw materials and components for re-export, said Li Jian with the Chinese Academy of International Trade and Economic Cooperation, the Commerce Ministry's think tank.
"
Read more on: Insight: Changing China set to shake world economy, again
I am not saying I disagree with the above analysis. In fact, I completely agree with it; The Chinese Economy is promising and has achieved astonishing growth in the last 4 decades. China's standards of living and wealth or in other words the Chinese GDP per capita has increased 10 folds in the last 20 years.
What really bugs me is how brainwashed every economists seems when all the economists start barking all at once, all in the same tone, as if they know something that no one else knows; where in fact they are just copying what the first and biggest alfa male dog has written in the first place.
Few months ago, if you Googled the Chinese economy news, all the news you would get are those predicting hard landing and a major catastrophic collapse of the second largest economy in the world.
So why? why all of a sudden did these bright economists decide that the Chinese economy is not only doing just fine, but is also Impressive and Revolutionary.
Here we let me give you some Quotes
"
One of the big stories in the global economy is the Chinese non-hard landing.
Fresh data out out last night exceeded expectations (in terms of power generation, industrial production, and retail sales).
Via Jefferies, this chart of Chinese electric power generation shows how big 2013 is compared to previous years, but also how impressive the recent rise is, given that in past years, August saw a seasonal decline.
"
Read more: This Chart Of Electric Power Generation Shows Just How Impressive The Chinese Economic Recovery Is Looking
Read more: http://www.businessinsider.com/chinese-power-generation-2013-9#ixzz2ebtTsdwj
Another interesting analysis I've recently read is this one:
"
Long after concerns about tightening U.S. monetary policy have faded, a more profound issue will still dog global policymakers: how to handle the second stage of China's economic revolution.
The first phase, industrialization, shook the world. Commodity-producing countries boomed as they fed China's endless appetite for natural resources. Six of the 10 fastest-growing economies last decade were in Africa.
China's flood of keenly priced manufactured goods hollowed out jobs in advanced and emerging nations alike but also helped cap inflation and made an array of consumer goods affordable for tens of millions of people for the first time.
The second stage of China's development promises to be no less momentous.
Consumption will take over the growth baton from investment. Services will grow as a share of the economy, while industry shrinks. Commodity-intensive mass manufacturing based on cheap labor will give way to greener, cleaner ways of making things.
More of the value added by a better-educated, more productive workforce harnessing new technologies will stay in China instead of going to multinational companies.
That's the plan, anyway.
China will remain the most powerful engine of global growth for the next couple of decades, but it will no longer be just processing imported raw materials and components for re-export, said Li Jian with the Chinese Academy of International Trade and Economic Cooperation, the Commerce Ministry's think tank.
"
Read more on: Insight: Changing China set to shake world economy, again
I am not saying I disagree with the above analysis. In fact, I completely agree with it; The Chinese Economy is promising and has achieved astonishing growth in the last 4 decades. China's standards of living and wealth or in other words the Chinese GDP per capita has increased 10 folds in the last 20 years.
What really bugs me is how brainwashed every economists seems when all the economists start barking all at once, all in the same tone, as if they know something that no one else knows; where in fact they are just copying what the first and biggest alfa male dog has written in the first place.