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China Posts A Surprise Trade Deficit As Exports Slow

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http://www.bbc.co.uk/news/business-12688877

China has reported a surprise trade deficit in February after exports slowed.

Shipments grew at a weaker-than-expected 2.4% in February from the same month a year ago, latest figures show.

Imports on the other hand increased by 19.4%, resulting in a trade deficit of $7.3bn (£4.5bn).

The news comes at a time when China has been facing criticism over its export-led growth policy.

Easing pressure

The US has led criticism of China, claiming it keeps the value of its currency, the yuan, artificially low so that it can boost foreign sales.

A weaker currency makes Chinese goods more affordable, giving the country's exporters an advantage over many competitors.

Cost of importing raw materials starting to hurt China? Or is the Chinese consumer getting addicted to Western tat?

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http://www.bbc.co.uk/news/business-12688877

Cost of importing raw materials starting to hurt China? Or is the Chinese consumer getting addicted to Western tat?

Or China selling stuff for less than the cost of raw materials and covering the difference with borrowing on a gargantuan scale covering the difference, via a multitude of internal loans..

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Commodity prices skyrocket , China has trade deficit as people won't pay much more for the garbage they make but their input costs are skyrocketing.

No real surprise here.

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Whilst this is presumably a temporary blip, it may well presage and era where the Chinese do go into permanent deficit and see economic collapse ensue unless they can get their consumers to borrow up to the hilt which should give a decade's grace.

Clearly as the economy is structured at present, you can't be an export led nation with a sustained trade deficit, as that would imply your industry had negative net value add.

Of course, if Chinese loans are being used to support non viable Chinese businesses, then it is possible for them to have negative net value add, but not for long.

That said, somewhere in the mix I am sure the Chinese consumer is just simply dying to load up on credit.

Edited by Mikhail Liebenstein

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Commodity prices skyrocket , China has trade deficit as people won't pay much more for the garbage they make but their input costs are skyrocketing.

No real surprise here.

Yup those ipod and pad thingies they make are a pile of sh*te aren't they.

As for those laptops and all the clothes and toys and stuff - its so bad I,m surprised they have managed to run up any surplus at all.

Can't believe they've managed to export anything over the last few years.:)

China bashing is all very well and good and seems to be an increasingly popular sport round here, but lets not forget they are doing the best for themselves.

Maybe we should elect some enlightened politicians ourselves.

Oh thats right when you elect people they tend to be liars and cheats who have bribed the elctorate with more jam today.

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That said, somewhere in the mix I am sure the Chinese consumer is just simply dying to load up on credit.

Also the rest of Asia, Africa and South America. Whats that 4-5 billion people.

Its this constant assumption that the rest of the world still needs us they really don't.

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Yup those ipod and pad thingies they make are a pile of sh*te aren't they.

Can't say as i have never owned either , most of my audio gear is Japanese made from the late 80s to early 90s.

Listening to tinny mp3s through overpriced ipod 'buds' that sound worse than $2 ones from the bargain bin isn't my cup of tea.

As for those laptops and all the clothes and toys and stuff - its so bad I,m surprised they have managed to run up any surplus at all.

Toys? the ones with lead paint you mean?

I buy most of my clothes from the USA manufacturers now , you can tell the difference in quality like most things.

China = doesn't take any pride in it's manufactured goods , how else could you explain the melamine in the milk or poisoned dog food?

We should have all started boycotting Chinese crap 20 years ago.

Edited by Ruffneck

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Yup those ipod and pad thingies they make are a pile of sh*te aren't they.

As for those laptops and all the clothes and toys and stuff - its so bad I,m surprised they have managed to run up any surplus at all.

Can't believe they've managed to export anything over the last few years.:)

China bashing is all very well and good and seems to be an increasingly popular sport round here, but lets not forget they are doing the best for themselves.

Maybe we should elect some enlightened politicians ourselves.

Oh thats right when you elect people they tend to be liars and cheats who have bribed the elctorate with more jam today.

Goods at the top end of the market are on-par with the West and Japan because they use the same processes/standards etc and are monitored by their Western "parent" company.

The stuff they make and sell in the middle to bottom end of the market really is poor (I was going to say "crap", but that would be cruel...). The only redeeming feature of the tat they sell is it is CHEAP. Dirt cheap compared to most of what the West can produce. Mainly due to dirt cheap labour costs.

Personal recent anecdotes:

Bought a high-powered "karcher" copy. Lasted 2 cleans then caught fire. Took back to shop and got money back.

Wife bought dry mixed-fruit as nibbles for a BBQ. Ate 2 packs. Left another in cupboard. 2 weeks later, little insects and a moth were alive and kicking in the sealed pack !! Still was 2 months before end of sell-by date. No doubt the hygiene standards officer in Shanghai doesn't check for eggs... :o

The Chinese economic miracle will not last forever. History shows that. We've had near 30 yrs of this giant country cranking up it's economic output. Maybe the next 10 yrs will be different from the last 10?

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They made the numbers up.

They make all the numbers up.

They're an oppressive one party communist state.

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They made the numbers up.

They make all the numbers up.

They're an oppressive one party communist state.

Do you mean England, the USA or China there as the above could easily describe each of those countries.

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Can't say as i have never owned either , most of my audio gear is Japanese made from the late 80s to early 90s.

Listening to tinny mp3s through overpriced ipod 'buds' that sound worse than $2 ones from the bargain bin isn't my cup of tea.

I'll give you the comment about the ear buds. But MP3s and all digital (non physical media) sound quality is amazing. I bet you would not be able to tell the differece between a correctly encoded MP3 over a CD version played through tge same amp/speaker combo

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Commodity prices skyrocket , China has trade deficit as people won't pay much more for the garbage they make but their input costs are skyrocketing.

no they'll carry on, there is nowhere else that the crap can be built, its western companies that'll take the hit, chinese companies will produce the same for a cheaper price and elevate the costs for western companies. Its game over for western companies as off now, they cannot pay the wages for their operations staff so its all about cuting wages now.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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