Xi’s Plan to Fix China’s Economy Explained (and why it won’t work)
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- Опубліковано 31 тра 2024
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For the past few years, China has been in a consistent economy crisis with a substantial trade surplus. In this video, we're going to take a look at China's economic woes, Xi's new plans to fix them, and why it's worrying the Global South.
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1 - www.nytimes.com/2023/07/31/bu...
2 - www.economist.com/finance-and...
3 - www.economist.com/finance-and...
4 - / 1
00:00 - Introduction
00:47 - China's Economic Crisis
03:27 - China's two Possible Responses
05:03 - Why the Global South are Grumpy
07:03 - Sponsored Content
It's an informative video on China but you spent much longer talking about the USA than you did the Global South. I would have expected quotes from leaders of developing countries who are grumpy about the reforms, rather than from Washington.
EDIT: In case anyone is confused about my comment, the original title of the video suggested it was specifically about the Global South. The title has been changed now and fits the content well - well done TLDR for acting quickly on this.
Same
@kicorse And maybe I am more interested in the politics of USA
Hard to find any. Many products like EVs, solar panels and chips are currently not being produced and exported by other countries in the Global South, at least not at scale. The American talking point of "Overcapacity" is also quite questionable, as almost all Chinese made EVs are sold domestically, only less than 6% (if I remembered it correctly) are exported. For Germany it's like more than 15% (again, if I remembered it correctly).
This is a good point to make.
Not that the USA isn’t important, it is debatably most important player on the global stage. However, viewing a wide and varied range of viewpoints on a specific topic is the best way to develop an informed and less biased opinion on a topic.
Slava 🇹🇼
Chinese labor costs are rising faster than its neighbors, their workforce is shrinking, and the youth generation is increasingly disinterested in labor market jobs. Coupled with western protectionism, diplomatic hostility to the free world, and India/Vietnam’s industrial and manufacturing rise, China has a lot more long term obstacles to future growth than it has had for the last 30 years.
Nothing is impossible in an authoritarian regime. Already china is using poor africans to manufacture goods for them and re-export the finished items.
Yes, China is moving upmarket.
Its transferring some of its industries aoverseas, eg Brazil to make EVs, Vietnam for garments, assembly of electronics, etc.
Only western press exaggerates China's problem.
Been doing so for decades.
How true is it ?? U tell me
You've been fooled
China needs to pivot toward stronger local consumption. Export led growth is great in the short term, but it can't be permanent. The gerontocracy doesn't get it.
@@TacticusPrimethat is where you are wrong in capitalism structure, society always produce more goods than it needs especially when the production is backed with good infrastructure and technologu which leads to efficiency. China domestic market is still as strong as ever it is just their manufacturing power is too strong so they planned the BRI decade ago to set up trade agreement with small underdeveloping countries to create healthy business relationship
WadeWest-gd9fz ... You think the children of dock workers and farmers have the same pressures as the children of immigrant professionals?
The cactus on the top shelf is awkwardly placed on the edge, please move it over to the right a little more :c
Unsure whether the cactus is holding the big, blue book, or the book is holding the cactus because its spikes have grown into the book. 🤔
Noticed this.
It triggers me as well 🤣🤣🤣🤣
Yeah, that cactus looks like it will fall off.
Edit: typos...
That isn't a cactus, it's a vase.
China wants power rather than money. While under capitalism they're more or less the same thing, a monopoly gives you much more power than money itself and China is aiming for an everything monopoly.
Dumb as f. Its america that controls the world and its dollar, lets scrap worthless dollar once and for all .
I'm from India this is indeed true.
Our entire Mobile Industry is gone now due to Chinese Imports but now all Chinese phones sold in India are Made in India.
The quality between Made in China and Made in India is very large their main focus with Made in China is killing local competitors with Dumping policy
Wise move, honestly. Global History is full of suckers who picked the short term gains.
Slava TSMC 🇹🇼
@@ChandranPrema123India has the biggest Samsung factory and also makes iPhones now. Everything changes one step at a time
I'm pretty sure that the average consumer is not actively purchasing wind turbines.
Exactly what I thought.
We're all using power. Cheaper turbines results in cheaper power generation
The title is misleading. You literally spent 1 sentence about the global south at the very end and don't substantiate it with any concrete thing or quote
EDIT: Title has changed. Ths=is comment doesn't mean much anymore.
I heard the words "global south" many times
Propaganda
Exactly
"Global South" is a ridiculous term, the map shows Australia and New Zealand as in the "Global North" FFS. And Chile, the wealthiest country in South America (if you discount the tiny Falkland Islands) is not really a poor country anymore. Perhaps a better name might be tropical countries?
@@Dave_Sissonthat term originated from Goldman Sachs alongside BRICs, and has been picked up by self-hating western academics in recent times to push for total de-industrialization in the U.S. and Europe. That’s self-hatred to a whole new level.
Both have been saying they’d surpass the west economically for about 30 years. Well, Goldman stopped around 2014.
You cannot keep biting the hands that are feeding you and still expect them to continue feeding you.
Agreed . That's why china stopped feeding usa c
they're feeding themselves
@@grimaffiliations3671 they do in a sense, but they are heavily reliant on foreign investors to run their economy. Many of their factories are heavily reliant on foreign buyers, but because of the tension building up with the Western countries, they are being forced to shut down or go bankrupt.
there is also tension in the South China Sea and Taiwan, as they are showing hostility and aggressiveness making investors worry about China, especially their new espionage law making it more unpredictable Critics have stated it is very vague, and anyone they suspect could be put on trial.
look at one of their biggest partners the Japanese investors, look at what propaganda they are teaching to their citizens just look on the internet how they are being mocked.
this aggressiveness they are showing how morally declined they are, one example is my country Philippines, their military and fishing vessels have been harassing our fishermen and coast guard for so many years now, and this harassment is also felt in our neighboring countries such as Vietnam and Indonesia, south China sea does not belong to them and their claim on how wide is their EEZ are absurd.
Have you also heard about their treatment of the Uyghur population?
Do you also know how they treat their citizen?
how about the misinformation they are spreading to their citizen?
have you also heard their belittling of other nationalities such as Indian, Korean, Japanese, and SEA countries?
how about the failed construction project that they are exporting to other countries, such as the damn in Latin America?
they might accumulate enough wealth to sustain their country, but tracking the new policies they are implementing, it seems likely the wealthy elites are leaving their country bringing a massive load of cash with them, there was a report that Singapore is receiving large amounts of wealthy Chinese purchasing mansions.
This is the best summation of the facts I have ever seen on this discussion! ✨
They're feeding us cheap goods. We just don't want to be dependent on them. So this is more like they're biting the mouth they are feeding.
Essentially, China is trying to export their way out of their self-inflicted economic crisis. There is the famous saying that America exports inflation to others. Seems like China is trying to do a similar thing.
Temu is being used to do it
and it's not working because they're not addressing the main problems in the economy
@danielzhang1916 And it's not going to work because China was already a huge exporter to begin with. China is trying to emulate Japan and Germany's (somewhat) successful export policies of the Noughties to reverse recessions incurred in the 1990s. But Japan (shockingly) exported less than the USA as a percentage of GDP during the height of its boom in 1990, and Germany actually lagged behind most of its neighbors. Both countries were operating from low export baselines, and they lucked out in their timing of the market as the Global South began an export binge in the early 2000s thanks to high oil and commodity prices. China, however, doesn't have the same favorable global economic conditions, and is running into greater geopolitical headwinds as export competitors like Mexico and SE Asia are increasingly contending in the same industries and have lower labor costs than China.
@@petergray2712 True, and they aren't addressing one of the fundamental issues leading to recession: The fact that China's GDP is very heavily dependent on exports, and not reliant nearly enough on domestic consumption. They have hit the ceiling when it comes to exports, and if nations around the world are even a bit smart, they should be able to weather this Chinese export surge through protectionism.
They don't have inflation, they have deflation.
Did you guys just put Janet Yelen's complaints in the mouth of the global south?
Janet Yellen has a point, actually
Yellen is talking about overcapacity now so it won’t be a problem in the future. Why allow millions of cheap products in your market, decimate local industries and jobs and complain afterwards? Some commentators act like they have zero brain cells
I know right. I'm beginning to wonder who funds TLDR.
@@rsybing she might or she might not, the point is that she does not speak for the global south, the video spends 60% covering JY's complaints about the chinese economy and then in half a sentence says "global south would like to export more stuff and BRI loans are not a silver bullet" without citing a single global south representative to back their claim.
Congrats on being more ignorant than TLDR themselves.
The title “Why China is Falling Out with the Global South” is a bit misleading… The global south is only talked about in the end for a few seconds. Most of the video is about chinas unhealthy trade surplus.
UPDATE: The title was changed to better fit the content. Though I still don’t think the title “Xi’s Misguided Plan to Fix China’s Economy Explained” fits the bill well due to it implying that it will surely not work.
UPDATE2: The title was changed to “Xi’s Plan to Fix China’s Economy Explained (and why it won’t work)”. I would honestly remove the “(and why it won’t work)” because the video isn’t about that. The video is about china doubling down.
My suggested title would be “Xi’s Plan to Fix Chinas Failing Export Policy Explained”
Unhealthy... for whom?
Unhealthy for Chinese consumers and for anyone who wants a non-farming job in the global south.
It’s good for the well-connected power brokers of the CCP, though, and that’s all that matters.
The title is reasonable. The video takes you through the creation of the problem by China and the US and Europe’s refusal to allow China to stick them with damage. The conclusion is that the worst effects will be felt by the global south. The vid doesn’t spend a lot of time on the global south, but since the outcome is going to impact them the most, it makes sense to put them in the title.
@@yopyop3241 honestly my previous politics teacher would have told us to constantly mention the position of the global south at least once in a while. If you want to talk about a sub problem you are expected to at least have 30% dedicated to the sub-problem.
@@spookycode The conclusion of the argument pertains to the global south. China started this landslide, the advanced democracies are in the process of dodging out of the way, the global south is going to get flattened. They don’t spend much time detailing what getting flattened entails, but do they really need to? And it runs against a reporter’s instinct to spend time on projections. They’ll talk about it after it happens. The conclusion here is worth more than 30% and makes the title valid in my book. The people who most need to watch the vid are the people of the global south, so it makes sense to have a title that draws their attention.
Victoria 3 taught me that standard is not just lowering the price of goods but also the increasing the wealth of the consumer.
Please tell me you're not using Victoria 3 to describe the real world
been playing vic3 sm these last two months. i feel like its becoming a bad habit
@@Awesomewithaz I mean while I agree on this, he's not wrong on this one point lol
I mean this is why slave are bad. They are do not pay taxes and they are mostly poor so they do not buy a lot of stuff.
@@Awesomewithazyou know how to read right?
I’m beginning to doubt the credibility and objectivity of TLDR
you really should
they’re completely clueless
@@joao-batista stupid liberals back at it. 'I swear China's gonna collapase this time!'
they are pushing western propaganda, not just with china in particular but i'll talk about china specifically here:
-although china is seeing an implosion in its real estate markets, its intentional. the gov wanted to pop the bubble and stop speculators from manipulating the markets bc its pushing prices up and hurting the chinese people (wallstreet mainly was hurt by this bc they got flushed out of their investments and lost money and are pissed)
- real estate investment is currently down by 9.5% which is insane and typically indicates recession levels or worse. however, china's 2024 Q1 gdp report just came out and it had 5.3% growth in gdp, despite the real estate problem which is insane and shows how other sectors of china's economies are growing to still maintain positive growth.
thats about it, china is shifting away from real estate and focusing on high tech manufacturing growth, EV's/solar/wind/semiconductor chips/ AI/robotics/ etc etc.
US and EU are obviously pissed bc they cant compete with china's cheap high quality products which will take more and more market share around the world.
TLDR is a western propaganda channel and its a waste of time watching them cuz they spread misinformation
@@joao-batistanah they are a propoganda channel of western capitalists.
I'm sure their entire videos are written and paid for by lobbying companies of western corporations.
manipulation of public opinion through hidden propoganda.
I used to think better of this channel, whoever does research for them is very lazy i guess
China's trade surplus as percentage of gdp is only around 2%, way less than the 8% before 2010. On the othe hand, Germany consistently runs above 5% trade surplus as percentage of gdp for the last 10 years
However, this is not the point . Lol
That's true is relative terms, but because China is a much bigger exporter (13.8% of all global exports in 2022) the impact is larger, and the dependency on China is more significant. On top of that, Germany exports more expensive goods that are more easily replaced by its competitors
@@Ramschat I get your point that China's trade surplus is more impactful to other countries. But this video is about fixing China's economy, so from a Chinese perspective the trade surplus is much less of a problem now.
@@luihinwai1 It might be relevant because China's trade partners are more likely to seek alternatives in order to be less dependent than Germany's trade partners are. Which in turn will likely impact Xi's plan to boost exports even further. If trade protection keeps increasing, growing exports is an increasingly difficult task.
@@Ramschat it's still less of a problem to China than what it used to be, which is my point. Even if all the trade surplus is gone now, it's only 2% of gdp, compared to 8% before.
TLDR spreading themselves too thin? Too many subsection video briefings. Lately, many videos end inconclusively and with little of the headline topic covered.
TLDR being overstretched is a real possibility. In their video on the Iran drone and missile attacks on Isreal they mentioned that members of the team had to crunch overtime to get a video out. Part of this can be chalked up to having to keep up with the 24 hour news cycle but also because the last few months have been very eventful in general.
Title is updated. Update your comment.
The news isn’t always conclusive, sometimes all there is to report is “thing has changed, some say good, some say bad, time will tell.” If you have an issue with the fact that life is open ended then I’ve got some bad news for you…
I know y’all have changed the title already, but it’s still a bit misleading- very little of your argument is about how this economic strategy won’t “work” and is much more is about how the rest of the world (I.e. the us) won’t be happy about it- two very different things.
There is no difference..the US holds immense diplomatic, economic and technological power. If they don't like something they can shut it down fast..how about all semiconductor exports to china get cut off? No more technology
The US holds immense diplomatic, economic and technological power. If they don't like something they can shut it down fast. How about no more semiconductors? No more technology for you.
The US wields immense diplomatic, economic and technological power. If they don't like something, they can shut it down fast. They can tell allies like Taiwan to stop selling semiconductors to you. No more tech for you.
And realistically its only the US specifically that isn't happy.
The EU by and large doesn't compete in the same circles as China does. Thus while they were pissed about the US's inflation reduction act (As their is many industries they do compete with the US in), they have made little noise about China's actions.
This of course could change, as the things China exports increase into other markets in the high tech sector, especially if they move into Luxury items. But for now its just another move in the US/China trade war, and BOTH sides in that war are hurting the global South.
I think it's entirely clear that when the video says "won't work", it won't improve the quality of life for most people in China (and the rest of the Chinese empire). That is, it won't do much to create skilled jobs, increase wages, provide a social safety net and so on. You know, the things described in the video.
Of course, also entirely clear but unsaid is that for some regimes, ordinary peoples' welfare is at best a long way down the list of priorities, and some may consider it positively undesirable.
The thumbnail change was so weird esp as the video barely even touches upon the Global South aspect
The original title was “Why the global south is grumpy with China”
in this video i learnt that trade surplus is a bad thing? LOL.
Is that why people in the UK did brexit so we can export less?
The Opium Wars were a result of a massive trade imbalance. So yes, trade surpluses are bad. What's need is balanced trade.
@@Obscuraiyeah and not because west was evil scumbags
@@Obscuraiyou can only have balanced trade between equal economies.
you will always have unbalanced trade between unequal economies.
unless usa willing to help china become its equal? you won't get equal trade.
once china becomes a first world country like usa with wages equal to American wages, the trade imbalance will dissappear.
if you want the trade imbalance to dissappear, help china become the next superpower. or stop moaning
@@Obscuraia trade surplus isn’t a bad thing, it shows that their businesses are extremely productive and leads to an increase in the value of the yen
@@dan15000 Trade surplus is a great thing for the country with the surplus. It's not a great thing for those with trade deficits, and this causes tension that leads to trade wars and even hot wars. So in the long run, excessive trade surpluses are bad. This is regardless of productivity or currency exchange rates. One needs to look beyond just the bottom line.
Great reporting very informative Great job mate 🧨🎇
Apple is moving to Vietnam as we speak 😂
They will go back to China very soon and beg for a second chance just like Germany did
No wmds in iraq
Chinese labor is getting expensive. Also iPhone touch screen, battery, sensor, titanium cover and more are supply by China.
@@johnmaris1582China learns the pain of outsourcing
U guys hv been speaking this same sh1t since decades ago.😂
How China is falling out with global South when it's being criticised primarily by the west? And its not like china is squeezing out global south from electric vehicle exports and solar panel exports
The video didn't do a great job speaking on it, but now that the west is placing heavier sanctions and trade restrictions on China they are now using developing countries in the global south as a place to dump their exports at an extremely low price. This prevents the global south from developing their own industry, and makes them near permanently dependent on the Chinese for things ranging from consumer goods to infrastructure on the extreme end. Even Lula in Brazil, who typically glazes China nonstop, is being forced to begin probes into Chinese export policies because they can no longer ignore the damage it is doing to their long term economic feasibility.
Good thing we in our country are regularly on the lookout for Chang's dumping practices and increase import taxes substantially wherever needed.
@@swapneelbehera260 Where is that?
@@foregone_rouletteas opposed to how west turned Africa into a first world continent with their model 😂😂
where is the African car and African ev and African solar company?
at least china is giving something back to these countries, infrastructure and consumer goods. something west never did.
@@zenastronomy I'm saying they aren't. The Chinese companies being built in Africa are exclusively managed by the Chinese. Native Africans are used almost exclusively as low level laborers, and many countries have had to sell rights to the infrastructure the Chinese "generously" built for them using exorbitant loan rates. Sri Lanka, for example, had a port seized by the Chinese for 99 years after falling into a debt trap. Nice whataboutism though, it might work on people who are less informed
The real question is what the markets where those exports are directed will accept them or protect their economies and reject them, because in both cases, the consecuences are brutal.
You barely talked about the Global South in this video.
Title is updated. Update or delete your comment.
...but still gave us that repetitive whiney voice inflection we've all come to love!
@@marknunya3107why don't u
@@user-xp7nk9dw8d no need to
Hey TDLR, I have a suggestion. At the start of the video you mention that while economists do not fully agree, you’ve picked the most sensible consensus. It would be nice to (potentially) get a short 60 seconds on an alternate theory that if true would justify the CCPs actions better, but specifically focusing on how the theory fits, not it’s actual ramifications. This could also apply for future videos, with any major actor.
I ask because to me it would be interesting to explore if the CCP is secretly hoping for a different scenario.
TLDR routinely just accepts whatever the Establishment consensus is on anything, they're very poor at fairly representing minority or unfashionable viewpoints.
The problem with this idea of the "Global South" is that this is a grouping of developing countries who only share the fact that they are developing. However, a random Latin American country will most certainly differ from a random Arab, or a random African or Southeast Asian country, in terms of culture, religion, governance, etc. Even in economy, as countries like China, Argentina and Somalia are all "Global South", but they couldn't be more different economically.
The West could unite because alongside of being rich, they also share similar cultures, style of governance and "values" (I'm not going to praise "Western democracy" here, as it has its fair share of issues, but you can't deny that in terms of governance, Germany, Australia and the USA are much closer than countries like the Philippines, Saudi Arabia and Venezuela).
You would be surprised how common in terms of problems developing countries are.
@@pulipakasrikiran9307Argentina ≠ Nigeria.
@@spaghettiisyummy.3623 yes but one thing they have in common is richer countries exploiting them.Why do you thing they like china so much?So there can be competition to the west.
@@pulipakasrikiran9307 I see! :0
@@pulipakasrikiran9307 Who said that they like China? Your claims are false.
It's ridiculously funny how this channel is so confident they are right about the future economy of the world.
I live in the global south and there is no falling out with China. If anything, people are becoming more and more skeptical of the west
@teoengchin Ok , go all-in with China
That's bcoz china is providing all of your needs. Its like a marketing strategy, a company gives you everyything and when you are trapped you cant complain anymore.
Ok wumao
Is that because the west wouldn't give your country loans you can't pay back but China does? Don't worry, China will find a way to extort you, like practically overtaking ports, that sort of stuff.
Those people you are referring to are generally the older generations. Younger generations are more accepting of the west to the point I have to warn many of them from being too accepting and learn how to critically think
The idea that chinese consumers are not buying enough is so ridiculous. China is biggest automobile market despite having biggest HSR network, biggest renewables market. One of the biggest smartphone market, biggest real estate market.
Chinese system is more efficient and chinese people don't have to overpay for tution, healthcare and transportation - that's why it seems like they aren't spending money.
The issue is that *they arent spending their already too limited money*
@@KomenJolokia-cd4np why is it issue? It's upto them whether they want to spend or not.
@@dreadfulbodyguard7288 they arent spending them as much as the gov needs them (insufficent domestic consumption)
From a common guy who born and live in china for 20 years🥲: Our estate price now is going to hell, but it's still too high, don't think that's good, it's count into you daily expenses with growing water, electricity and gas.
It's true that we have big market of phone and car, but we don't need to change a car per 3 years, and even we want, we(commen people) don't have enough income for it, china's industry did efficient thank for low salary of our worker, but if there's no orders from the wealthy country, we still got unemployment.
We don't have expensive tution, but what I can only say about our education is that it's destructive for a integral humanity.
@@enibels5765 My outsider's perspective is that China's education is doing pretty good considering China's recent advancements in technology.
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“News media to impress your friends with” what a tag line.
This video was published. China’s GDP has grown by 5%.
IMF WEO just dropped; 4.6% growth projected this year. Not since the video was published, though.
The problem with exports of manufactured goods is that A.I. and robotics is on the horizon, then throw in security concerns on China, it's probably not a smart move for China to double down on exports at a time that they need to rebalance the economy to a mix economy that puts more focus on consumerism.
To make it worse for China, as the economy developers, there cheap labour isn't what it used to be, other alternatives like India are popping up, and then we have A.I. and robotics that's going to reduce the cost of labour a lot over the coming decades, once you throw in security concerns that manufacturing can be brought home, that puts China in a difficult position unless they do major reforms to the economy, in other words, moving away from manufacturing to a mixed based economy.
Either way, I suspect if China doesn't allow wages to rise, other countries around the world are likely going to use more protectionist measures on a sector by sector bases as they adapt overtime, with maybe the exception to green tech as there's an urgency for that tech, but a lot of other sectors are likely in the firing line as other countries will want to build their own manufacturing base because of the security base, and thanks to A.I. and robotics, that's going to become much easier to do whiles getting a lot of the same benefits of cheap labour.
Basically, for any modern countries that want to move a lot more manufacturing back home, advancing robotics is likely the key.
Didn't know that Janet Yellen changed her job to become US Trade Secretary😂😂😂
Saddling poor countries with unsustainable debt through the Belts and Roads Initiative doesn't really endear you to most people and taking over control over the means of production (like in Tajikistan where China took over their largest silver mine in exchange for Tajikistan's toxic debt) is a recipe for political disaster.
Isn't china the only coutry willing to lend money to them? Other countries will adk for high interest rate or outright refuse loans because of perceived risks
I beg to differ. If you've ever talked to someone from the global south old enough to remember a time they took an IMF loan or a world bank one, you'd know they will take Chinese ones 1000 times before they'd go for an IMF one again.
There is a need for infrastructure in the global south, especially in Africa. And while china is no friend of anyone, they'd be willing to do business in good faith. That is not true for western countries who alternate between neo-colonialism and exploitation through their multinationals and guilt-led ineffective aid programs.
Yes, some Chinese-led infrastructure projects turned out to be disasters, lots didn't.
@@painchessthe chinese deals have secrecy clauses so ur average african won't know if the conditions in them are better or worst than imf or world bank. Lack of transparency means we don't know or have a factual base to make a good or bad judgement about it.
@@painchess lending money for more sound fiscal policy = neo-colonialism. bribing politician to accept construction project and lending money in exchange for rights on all natural resources + all construction done by Chinese firms instead of local = not neo-colonialism.
China has bought or gained ownership of all the national news companies in a lot of these countries, so they just blame it all on America even if it makes no sense
Polymatter videos are leaking.
Thought that exact same thing!
This video is very misleading because now China exports more high-tech products such as electric vehicles. Low tech products such as clothing and slippers are more dominated by countries such as Vietnam and Africa. So China's new policies will not cause trouble for the global south, on the contrary, they are direct competition to developed countries.
@lianghao7128 how so? the fact youve cited high tech products are even more relevant as there's only so many rich ppl and organizations abel to buy those things. Again, the issue is china suppressing domestic wages noy allowing its own economy to evolve lol
@@ginesjoshdave4406 In the past year, the countries that purchased the most electric vehicles from China were global South, with Russia's purchase of Chinese cars increasing by something like 500%. Previously, the global South purchased cars from developed countries, but now they buy Chinese cars. They do not have automobile brands or solar panels themselves anyway, so buying Chinese cars is no different from buying Western cars. On the contrary, if Chinese cars are of good quality and affordable, why shouldn't they? This has improved their quality of life. Their biggest trading partner already is China anyway.
@@ginesjoshdave4406 In the past year, the countries that purchased the most electric vehicles from China were global South, with Russia's purchase of Chinese cars increasing by something like 500%. Previously, the global South purchased cars from developed countries, but now they buy Chinese cars. They don't have car brands or solar panels themselves, so buying Chinese cars is no different from buying Western cars for them. On the contrary, if Chinese cars are of good quality and affordable, why don't they? Their biggest trading partner is China anyway.
Misleading title. You claim this about the global South but no mention of what business or political leaders from Brazil, South Africa, or India have to say.
India is against China and South Africa is collapsing.
Dude, I swear I've heard this channel talk about China's economy failing for the past 4 years and somehow it has still not collapsed yet, a broken clock can be right twice a day.
All of the things wrong with China 4 years ago have gotten steadily worse over time. Never construct timelines based on video titles.
@@accountnumber1234567 Western colonials have been publishing new articles and news videos since the fcking 50's that Chinas economy was going to collapse meanwhile imposing unfair trade embargos and sanctions for no reason than selfpreservation.
After 75 years of the same shite, you can absolutely make a timeline on published propaganda. Wake up and start reading Holmes.
You think this after 150 years of colonialism, war and famines this is a challenge for the Chinese?
I think they should hire you guys to run their country
I feel like this video muddles things around the core problem which is state sponsored dumping that China practices on a monumental scale. The core issue is that Chinese state subsidizes oversupply - manufacturing far, far above what the demand is in China or in the world - at a price that is significantly below the break-even price where you actually make money per unit sold. As the demand in China is already weak, China then dumps those products on the global market depressing the prices below any possible profitability driving western manufacturers, who have to obey market forces and can't lose money for years on end, out of business ensuring Chinese dominance of 90%+ of manufacturing. That's been a true and tested Chinese strategy for 20 years now.
Yeah that’s a good title!
As an American living in Chicago I can tell you we are NOT experiencing record purchasing power….. our economy may be growing, but only the major corporations feel that. The middle class is in a constant chokehold
No one cares.The rich in America are enough to run the world economy.
Feeling is always relative- you can feel as choked as you want but that doesn’t mean we dont have more purchasing power than anywhere else in the world
@@bmckelvy5717 if I take my dollars to another country, yes my purchasing power is elevated. However domestically that’s not the case. Our dollar loses more and more value at home every passing day
I preferred "Why the global south is grumpy with China"
Me too.
Slava 🇹🇼
If Global south nations could come together in a trade pact, they could easily win against China.
The ceramic cactus in the back is about to fall down, please move it.
5:09 Janet Yellen is not the “trade secretary”-no one is, bc that’s not a position. Yellen is the Treasury Secretary. The Trade Representative is Katherine Tai.
I would give this video a different titles. perhaps i would name it: The Chinese Green transition and the de-dollarization of the global economy.
It’s kind of biased, when you look at exports in the twentieth century, the west is exporting loads of goods to other countries, and during japan’s rise the US also used taxes and protectionism against Japanese exports. The same is happening to China.
Every country has an obligation to protect itself. That's how nations work. It will always be biased. Whenever a nation rises with trade surpluses, there will be countries that will call out unfairness. Nothing new here. Competitive advantage is also shifting to other countries like Vietnam and India, so eventually those countries will also be of concern.
"For 2023 as a whole, China's current account surplus totalled US$264bn, down from US$402bn in 2022. That represents 1.5% of China's 2023 GDP - well below the peak of 10.3% of GDP recorded over the four quarters ended Q3 2007"
Very interesting and balanced coverage. Important context that you rarely get on the he said she said analysis of news outlets without caving to authoritarian or unjustified narratives. Thank you!
I guess the second half of the video really saved the first half but I don't know. It's kind of weird to front load the first half of the video with verifiably incorrect nonsense and then debunk most of it in the second half.
Your jab saying this hurts the global south is very misleading. Global south countries are not typically involved in high value added manufacturing. You mention China is reducing lending but you don't mention the outside reasons for that (interest rates) or the global debt trap that is USD denominated debt. The US sets interest rates globally through the Fed and regulates global credit markets through the IMF and global bank. The US is strangling the world with its financialized dictatorship. Pls stop spreading misinformation.
Oh yeah, I almost forgot. The premise of the whole video is also in fundamental tension with the world as it exists.
❤ U
Not many Chinese care what the westerners think about them. They just do their jobs for better lives.
Funny how much propoganda and bots swarm to these videos then.
This reminds me of the British just before the Opium Wars when there was a massive trade imbalance between UK and China
The average Chinese household may not earned as much but do you know that 50% of VW are sold in China not to mentioned Porsche, Merc & BMW. China is a manufacturing powerhouse to produced the most competitive goods. Only the west can’t compete and will raise tariffs so that its citizens will have to pay more. Apart from the G7 countries, other open economies are enjoying cheaper prices than ever before. As for example, some countries are enjoying cheaper EVs rather than to forced into buying expensive German or Japanese brands. In fact, Global South countries are getting a better ‘bang’ for their money (in exchange of their minerals, natural resources and farm products) instead of being pressed by The West to buy their expensive products. That’s why African countries are kicking out their western colonial masters.
Eh you could say the Chinese EV is.. "blowing up" :P
The CCP is losing more and more business aboard thanks to its wolf w@nker diplomacy. Why run the risk of buying subspar products created under dubious health and safety standards (and likely slave/prison labour), when you can buy something - that while being a little more expensive, actually does what its designed to do and lasted longer than its Chinese counterparts?
"Global South" lol
Basically when capitalism doesn't favour your bandits, but favours other bandits its bad.
Maybe start producing cheap but good stuff instead of overpriced crap.
As an American I find it very funny how they mentioned the value of the dollar. In the states people are complaining a lot about inflation and think the economy is doing poorly. It is interesting to see how out of touch the country is from the rest of the world.
I think it's a testament to how rabidly insane the money printing, financialised, kleptocratic West has become, that a country whose economic plan is to invest in future industries, make stuff, and sell said stuff, is considered controversial.
if America says "Hell NO" then that is a good policy,
No policy from non-democracies is a good thing.
I mean, they said the same about ol’ Truss’s economic policy. And that wasn’t good is it?
Xi Jinping doesn’t even like his own citizens who disagree with him. He sent them to jail and never seen again.
Winnie ain't winning huh
China's wage is higher than many Asian developing countries, esp considering GDP/capita.
RE nebula news - if you had local new zealand news as well Id be into it. Maybe do a deal with bernard hickey or something? hes trying to build his own micronews subscription product and it seems symbiotic. Oh and pls get William Spaniel on board! He brings new meaning to "in depth global conflict analysis".
While it is true that Global South (SEA, South American, India etc.) is not happy with China essentially price dumb into their countries to fill in the void (and undercut their local industries). The video should spend more talking about them especifically as they are plenty of news and example of Global South's frustration online.
As a us citizen, I do not have purchasing power rn wth are you talking about. A trip to the grocery store costs 100 bucks for 5 items
Thought it was the US decide not to sell China what they need, like the chips and other things.
second china exports more not because they pay their workers less. India Mexico Indonesia pay their workers less than china does. so why isn't india exporting solar panels?
the truth is, china exports more because it has economies of scale and manufacturing efficiency that no other country can compete with. they can reduce the cost of per unit manufacturing of any item, because they are high tech and very efficient.
not because their workers are paid less. otherwise india would beat China. but they haven't.
Xi Jinpooh, Xi Jinpooh, stubby little tubby all stuffed with fluff,
he's Xi Jinpooh, Xi Jinpooh, a very very silly ol' bear.
@1:48
"If chinese workers are producing lots of stuff but aren't being paid enough to consume it, then it has to be sold elsewhere."
...Or left in city-sized dumping grounds, like when they tried rental e-bikes and e-cars.
It is also true that wages in China have risen greatly over the past few decades. I’d love to see more analysis on this and how it is affecting Chinese consumption. Thanks for the good work….
A trade surplus isn’t an economic crisis
Poor analysis, this channel’s quality has been lacking for a while now
Chinese strategy
Step 1 :- export govt subsidized goods at super cheap rate
Step 2 :- make all other global competition go out of bussiness
Step 3 :- congratulations u have a monopoly now
It gets a bit more complicated when the companies which use the government subsidies are only viable with the subsidies and in plenty of cases will effectively junk the products they are making because the subsidies are the profit. Like the tens of thousands of electric vehicles which somehow (illegally) got license plates and were rotting in giant parking lots or the hundreds microchip/electronic companies which had entirely unsustainable business models that immediately went under the moment subsidies disappeared.
From what I have heard, China is exporting more for less income per unit. At best many companies are treading water, but given the unobscurable fact of an economic downturn I would wager that many are going to be slashing costs (people's jobs) or the execs are going to throw in the towel for a payout and hope the CCP doesn't get angry at them (pay the bribes I guess). If negative news is reaching the West and negative new is being felt in China, then the CCP is NOT happy about it because it means they are not in as much control and capable as they constantly try to make every believe.
@@jasony8480 China reportedly experienced a 5.3% growth in the first quarter this year.
@@Kpop_stole_foids_fromcurrycell I have a hard time believing that number is grounded in reality, especially with the majority of the construction sector imploding with large quantities of Chinese citizen money being evaporated. GDP of 2023 was 5.2%, but only after they conveniently revised 2022 data down. Couldn't move the end numbers higher, so they moved the older (easier to hide) numbers lower. The numbers provided to the world are only loosely based on reality.
The books are cooked so that the CCP is NEVER wrong when they set "target" GPD at the start of the year (no other country does this to my knowledge). Being wrong would make them lose face, which they cannot abide by. The only question is how the books are cooked, what they think the rest of the world will believe, and how to always get to that goal for the year.
@@Kpop_stole_foids_fromcurrycell And 6% increase in energy consumption while getting 9% less real estate. What a terrible economy
@@andresgarciacastro1783 "less real estate" what does that even mean? increase 6% energy consumption or not, it doesnt matter. what matters is the net growth and that 6% increase has been taken into account in the 5.3% growth.
5:54 THIS
This video makes no sense. China surplus is a problem? their per capita is a problem? They have a per capita income similar to mexico, russia etc, If what you say made sense, all exporting countries in the same situation like vietnam, bangladeh, india... would be in the same situation.
No to the moustache. Sorry.
ignore it since it's none of your business
You didn't comment on his makeup or his clothing.
Let me guess no one means "the west" which only represent around 20% of the world countries. I don't blame you, after all your audience are mainly Europeans that need to feel important.
2:22 Corresponding amoun- *imports*
Read this right as I heard it XD
Can china be out in the WTO agreement due its IP theft?
I dont think thats the problem, What has been complained is the huge amount of subsidies which is making their exports wayy to cheap.
nope. they have less subsidies than west does. the difference is, china is willing to abandon ice cars and oil and gas companies for ev and renewables. so they've actually built the infrastructure in china to use these things.
china now gets all its domestic household energy needs from renewable energy, 10 years early. yes that's right. 1.5 billion peoples household energy consumption is now entirely generated from solar wind and other renewable energy. the grid has been adapted. the power stations built etc.
Something western governments refuse as they are beholden to exxon, BP, shell, enron, bmw, ford, vw, etc who don't want the demand for their products to go down.
the west doesn't want china exporting renewable technology because they don't want renewable energy in their own countries or 3rd world.
as it means global independence of nations from western corporations.
It will work and the US will throw tantrum and shout as usual.
Your ads are too long
I've been hearing China falling since last twenty years but in reality China is going strong and I worry about US and western countries.😮
china has a fertility rate of 1.1, that means their population will almost half within a generation and at the same time age rapidly, shrinking workforce from 800 million to 400 million in 2080. how is that not affecting their economy?
One thing I want to emphasize, which this video touched on, is that China heavily subsidizes many of its key industries, such as the electric vehicle, solar panel, and shipbuilding industries. While foreign economists have urged China's leaders to switch to a domestic consumption oriented growth model, what U.S. policymakers are actually concerned about is the subsidies. Anti-Chinese subsidy efforts are rapidly gaining momentum in the U.S. (and the EU) which seek to raise tariffs on Chinese industries which are seen as benefitting unfairly from Chinese government subsidies (rather than simply low labor costs; otherwise, the U.S. would be putting tariffs on every country with cheap labor).
The national security angle is also pretty key from the U.S. perspective, as dependence on China for imports is increasingly seen as a weakness.
President Xi's reluctance to shift China to a consumption-led growth model is very interesting. Given his emphasis on Chinese self-sufficiency for virtually all important industries (both high tech and low tech, from agriculture to shipbuilding to microchips), it seems that Xi is trying to curb Chinese dependence on foreign imports, even if it means the Chinese population remains poorer than they otherwise would be.
The obvious reason Xi would want to keep China minimally dependent on foreign imports is to insulate both the population and the military-industrial complex from outside pressure, such as sanctions or even war should China make a geopolitical move than angers the west (such as invading Taiwan). This does not conclusively prove that Xi will order the invasion of Taiwan, it merely demonstrates that he is trying to keep the option open by making the "hardware" of China's economy as conflict-proof as possible.
like usa Europe doesn't subsidise their own economies. tesla lived off subsidies for decades
also this video is a bunch of lies. xi has not moved away from domestic consumption at all. he's clamped down on real estate bubble. as he wants housing to be affordable for everyone, for social cohesion.
a housing market bubble is socially destabilising. so he deliberately passed laws to deflate it and remove the capitalist profiteering element in it. As he said, houses are to live in, not to profit from. He is still going full blown on consumption in every other high tech real economy sectors like manufacturing of chips, solar, cars, etc.
He just doesn't want stimulus in the fake economy, real estate, stocks, etc. As these are merely rich getting richer and not the country getting high tech.
US janet yellen wanta xi to flood the Chinese economy with money like usa did with quantive easing and destroy the economy. he isn't falling for it.
real superpower status comes from high tech industrial knowledge and china is still going full blown into domestic consumption of that. which is why the global North is upset with china. and not the South.
this video is just lies with no logic or evidence. tldr is a propoganda mouth piece of western lobbying think tanks.
The west does not subsidize their companies, they just give away money to their companies so they can have an unfair advantage over other countries. haha.
Similarly, it is not corruption when rich people and corporations give money to politicians in exchange for favors after they are elected. They call that lobbying or campaign "donation". LOL
What kind of logic is this? During the rise of Japan economy in the 1980s, the USA was doing the same thing as what China is doing. So the USA can do these kinds of policies, but Asian economies can not adapt similar policies. What a hypocrisy.
The problem I have with Pettis' analysis is that he thinks that China today is basically the same as Japan in the 1980s. Obviously there are similarities, but I think that the underlying situation is very different and that similarities we see now are symptoms of economic issues and the results of very different fundamental problems.
Translation: how shoukd China behave in order to appease the rich economies instead of keep increasing its own ecomy strenghts...
The fact remains is that China relies on exporting its products to those rich countries to make most of its capital. If it starts attacking their interests then they can simply stop trading with China and ruin the already struggling country. Besides, the CCP is so obviously domineering, tyrannical and paranoid that most don’t want to associate with them as anything more than business partners. Look at all those rich businessmen they exploited and then backstabbed.
For starters, they shouldn't pump $72 billion into their auto industry to turn European ports into car parks.
They should bring back forcing civil servants to memorize classical Chinese poetry
It won't work, either, but at least it'll be tasteful
"Honey I just got a raise, bless Xi Xin Ping!" "that's great! Now we can finally afford our very own wind turbines!"
A big problem with Chinese wages being kept artificially low isn't that it leads to a trade surplus, it's that it artificially lowers the cost of goods that China produces (along with massive state subsidies further lowering the cost) which permits Chinese manufacturers to dump goods on the international market far below what any other country could produce them at without using similar tactics- except that these tactics are self-destructive in the long term if more countries start copying them.
For regular consumers the Chinese manufacturing politics is great! If the western businesses want to compete they will have to make better products at a better value. As a European I'm tired of overpriced products that are locked down, not possible to repair and have a subscription needed for it to work.
This video is very misleading because now China exports more high-tech products such as electric vehicles. Low tech products such as clothing and slippers are more dominated by countries such as Vietnam and Africa. So China's new policies will not cause trouble for the global south, on the contrary, they are direct competition to developed countries.
China does not deal in high-tech, at best it is medium-tech.
@@martinhawes5647 According to your rating, only semiconductors below 4 nanometers are considered high-tech, as this is the only technology that China has not yet mastered. Huawei's latest pure70 smartphone uses a self-developed 5-nanometer chip.
@@martinhawes5647 you lot are so anti-China that you refuse to see what's in front of you or even reason at all.
Is it news or just subjective commands?
Really dislike how you lead into your sponsors with a fake Segway, instead of just saying “a word from our sponsors”
Another propaganda "china economy is in trouble" video.. we've seen it for years, these sponsored videos basically try to scare investors into investing in china, despite knowing nothing about Chineese inner workings. This video title is highly subjective.
It's always videos criticizing China that get swarmed by comments defending China. Funny.
Did Janet Yellen make this video? You guys got a lot wrong.
Guys your limiter/compressor setting is a bit much, or the attack too long. The first sounds of each sentence come in like a cannonball :P
A bit off topic, but I don't understand why China is considered part of the Global South.
200 years ago they were the most powerful country on Earth. Now they are the second most powerful.
They are geographically far more northern than most countries, and to prove it they have declared themselves a near arctic nation.
They are technologically, industrially, militarily, diplomatically, and culturally powerful, so if you defined the Global South as those countries which are less powerful than the North, China would not be one of them.
China did have a century and a half of a rough spot in their history, but they have essentially bounced back from it, similar to how Russia had its own issues and is still functioning.
If Japan and Russia are part of the Global North, I cannot see why China is part of the Global South.
If I am wrong, please explain.
Funny BS…..
Economic crisis? With an annual growh of 5 % last year? Hahaha you with your 0.1% in the West talk about Chinese Crisis? 🤣
And trade deficits, 100+% debt to gdp, low productivity, high inflation and more 😂
@6:40 Global North vs Global South - yet South Korea is North and North Korea is South...
Please tell us more about the Chinese Gov't subsidies for exports. We must have a more level playing field with them.
CIciPee Using Forced Labors that's why CHEAPer Price for Export Products such as Shein 👀
@@Booz2020 Evidence?What the Americans are doing is seen all over the world by bombs
@@Booz2020
There’s no forced labor in China
@@davidstrelec2000 Sure thing Buddy 😁 Only Educational Camps in Xinjiang for Uighurs 👀
@@Booz2020 Been debunked ages ago. Gotta update the parrot propaganda my friend
Typical western narrator. Thinks he is talking about global south, but become a mouth piece of US. China trying hard to capture high end manufacturing and letting go of the low end manufacturing is somehow bad for the global south? China is challenging dominance of wealther nations by providing affordable price for similar products is somehow bad for the poorer countries? Cheaper green energy will somehow be bad for global south when they are in desprate need for more energy sources thanks to all the wars and price hikes? EV are really expensive and most in developed countries find it expensive to buy but somehow getting them for cheaper will hurt the global south? If the global south countries were manufacturing the same products, I would see why they would be angry but that's not the case. It's too expensive to build these industries and only rich western countries have the excess capital and educated work force to build these new industries. Global South countries are instead reaping the benifits of price war between wealther countries. Getting high tech products that helps to improve productivity of a country of cheap during time of inflation of food and petroleum product is actually a great thing but some how you think otherwise.
Somehow you forgot to mention the inflation is extremely high thanks to US government stimlus programs. Having a global currency has it's perks and one is you can print as much as you want and spread out your inflation to the world. China on the other hand is spreading deflation and let me tell you, most people in global south will be very thankful if things got cheaper. Dollar becoming more expensive is not China's fault either.
Well said. Thank you.