China Economy

Over the last 35 years, the contribution of manufacturing to Australia’s overall economic activity has declined.

In the years since China began its meteoric rise to become the world’s unrivalled manufacturing hyperpower, Beijing has increasingly used trade as a tool to exert pressure on companies or governments.

Back in the day, the iron ore trade was governed by annual contract negotiations between Australian miners and a collection of Chinese steel mills under the aegis of CISA.

Iron is hovering in some restocking episode.

Nobody is allowed to tell the truth about China, but I will.

Ferrous madness continues as steel margins collapse.

Over the last 25 years, China has undergone an absolute meteoric rise as an industrial and economic power, inadvertently dragging Australia along for the ride.

Everybody celebrate!

Since U.S.

Deutsche with a wrap of Chinese data: China’s economy activity slowed in July.

Bloomberg sees an endless Chinese property crash.

The Chinese economy remains mired in a depression.

ANZ is excited. China: reflation kicks off China kicks off a reflation strategy, signalled by a mega hydropower project. The goal is to restore the inflation dynamics via supply-side tightening and creating new demand side. Producer price index (PPI) could turn positive soon due to rising commodity prices.

Goldman with the note. …the Central Commission for Financial and Economic Affairs (CCFEA) meeting chaired by President Xi on July 1 called for building a “unified national market” to discourage local protectionism, as well as regulating disorderly price-cutting and excessive competition among producers.

China is not signalling imminent breakout stimulus.

As China’s property sector continues to deteriorate with each passing day, reports of renewed stimulus for the sector emerge every few months from the Chinese press or policymakers.

Nobody wants to talk about how bad it is because, you know, it’s China.

Let’s call it what it is: a recession.

This economy is not growing at 5% in anybody’s mind except for the CCP’s and its menagerie of grovellers.

Since the issues facing China’s property sector exploded into mainstream view in 2021, it has been a rollercoaster ride of different perspectives and scenarios on how it will all play out.

At the recent World Economic Forum’s (WEF) annual meeting at Tianjin, China, Chinese Premier Li Qiang pledged that China will become a “consumption powerhouse” capable of fuelling domestic and global growth.

Judging by the PMIs, the notion that China is growing at 5% is preposterous.

Three weeks ago, the Chinese government and the Trump administration came to a very rough agreement on trade, tariffs, and the supply of vital materials each side respectively controlled.

It’s the bust that keeps on giving.

ANZ has a good idea.