Rugoz wrote:China's relatively low nominal GDP tells us that China's export sector has still relatively low productivity and mainly competes through cheap labor.
That doesn't mean China is trapped, and of course with 1.4bn people it will be a formidable power even if cannot quite match the West in terms of productivity.
No, what it tells us is that China has more people than north america, south america and europe combined and that it takes time for everyone to catch up. 500 million Chinese still only make $2k a year, 300 million still endeavor to move from countryside into cities. The rapid growth is not ending anytime soon. China also has no privatized finance sector and that's probably for the best given how much utter waste goes into the US stock market. It manufactures the most value added complex goods and services you can manufacture. Wechat and its multi-applet capabilities are years beyond anything in the west.
Us bloats its gdp with the finance sector that it shovels printed dollars at. $7 trillion since the start of 2020 alone. Not a cent went into meaningful infrastructure outside of new nuclear plants being built. Microsoft for example paid 0% taxes on 300 billion in income it derived from Chinese manufacturing and primarily global sales. The majority of apples sales growth which similarly dodges its US tax obligations was in china for 2020-2021. US citizens got nothing out of these companies anymore outside of a few jobs, most of which are now abroad, yet the numbers still get logged on the 'muh gdp' tally. China pumped less than $200 billion into the incinerator in the same period. The other trillions went into railways and metros. Soon the petrodollar will become increasingly irrelevant and this endless printing and pumping of stocks will be impossible to do.
Germany has a lower nominal gdp than the US, yet it is the US committing espionage on German companies trying to steal productivity from where it matters-goods manufacturing.
The writing is on the wall: The global economy is decoupling from...the US.
Wall Street bulls charge into China’s opening marketshttps://asiatimes.com/2021/06/wall-stre ... g-markets/
Deutsche Bank warns of global 'time bomb' coming due to rising inflationhttps://www.cnbc.com/2021/06/07/deutsch ... ation.html
China buys fewer American goods in May; trade surplus grows
China bought $13.11 billion dollars’ worth of goods from the U.S. in May, down from $13.94 billion in April, customs data accessed through Wind Information showed.https://www.cnbc.com/2021/06/07/china-b ... grows.html
While overall Chinese imports from other countries grew at their fastest pace in 10 years — up 51.1% — the pace of growth for imports from the U.S. slowed to 41% in May from a year ago, versus 52% the prior month.
As of Jan 2021:
Goldman grabs a controlling stake in a wealth management partnership with ICBC
JP Morgan applied to take full control of its mainland securities venture.
BlackRock got 50.1% wealth-management stake in China Construction Bank.
Vanguard has shifted its Asia headquarters from Tokyo to Shanghai.
Citigroup is applying to open a new wholly-owned domestic securities business in China.
HSBC is closing its US retail banking business and accelerating its pivot to China.
French asset manager Amundi is upping its presence via relationships with Bank of China.
Germany’s Schroders gained approval for a majority-owned partnership.
Switzerland’s Credit Suisse has detailed ambitious mainland hiring plans.
Morgan Stanley, Nomura Holdings, Standard Chartered and UBS are all expanding in China