Chinese Economy Watch


View: https://www.youtube.com/watch?v=VCMFkDta5Us
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I’m 37 years old. Life has been hard, and I have no other choice. My child is sick, and my child needs to eat. My child isn’t in daycare, so I have to stay home to take care of them. I can’t leave the house to work. My child doesn’t have a father, and I don’t have any family. So, I take clients. Call me. Whether you’re just looking for someone to sleep with or if you want to help me out and give me some money, I’ll accept. Call me.
 

View: https://twitter.com/svembu/status/1875396290462564586?s=19

My point in posting comparisons with China is to show that Chinese companies have overcome so many challenges, from corruption to red tape. That is a source of inspiration for me; whenever I am tempted to complain, I think about Chinese entrepreneurs.

Here is an article that mentions protectionism and other trade barriers *between regions of China*.

Chinese entrepreneurs focus on exports so much, perhaps because it is simply far easier to export than to sell within China! In other words exports may be a workaround, a survival tactic for Chinese entrepreneurs, not a sign of strength.

Quote:
"China’s local protectionism has become increasingly sophisticated, with municipal and provincial governments setting up barriers to protect regional interests and ensure growth within their own jurisdictions. This approach hinders outside companies in competing with local firms."

["Outside firms" here means Chinese firms from outside the region]

scmp.com/opinion/china-…

This is what competition within China's like. They don't even spare Chinese companies from other regions.
 

China achieves breakthrough in BCI clinical trials, enabling patient to convert thoughts into text for communication​

(Global Times) 09:35, January 06, 2025
This BCI technology breakthrough enables the patient to convert their thoughts into Chinese texts on computer for communication. Photo: Science and Technology Daily

This BCI technology breakthrough enables the patient to convert their thoughts into Chinese texts on a computer for communication. (Photo/Science and Technology Daily)

A Chinese research team made a breakthrough in brain-computer interface (BCI) development using domestically developed, invasive flexible BCI systems, which demonstrated high-precision, real-time movement intention, and language decoding in clinical trials. This achievement enabled patients to control smart devices with their brains, converting their thoughts into Chinese texts on computers for communication.

A brain injury patient at Huashan Hospital affiliated with Fudan University conceived the phrase "2025 Happy New Year" in their mind, and it was decoded by a computer. The system then sent commands to a robotic arm, which made a heart-shaped gesture, marking the world's first-ever New Year's greeting conveyed via thought, according to the Science and Technology Daily on Sunday.

This marks a major advancement in a collaborative project between NeuroXess, Huashan Hospital, and the Tianqiao and Chrissy Chen Institute, signaling that China reached world-class standards in the field of BCI.

In December 2024, NeuroXess, in collaboration with Huashan Hospital, initiated the country's first clinical trial involving high-throughput implantable flexible BCI systems for real-time synthesis of the Chinese language.

The patient, a 43-year-old with a language-related brain tumor and epilepsy, underwent surgery in which a domestically designed electronic film was implanted for tumor localization and to protect crucial areas of the brain related to language.

Just two days after the surgery, the patient began training and, within seven days, attained a 71 percent accuracy in decoding 142 commonly used Chinese syllables, and demonstrated a delay of under 100 milliseconds for single-character decoding.

"With the invasive BCI technology of Neuralink as a representative, decoding movement intention has seen remarkable advancements in the US, Europe, and Asia, such as enabling paralyzed patients to use robotic arms with their thoughts for drinking water, operate a mouse to play video games, or control exoskeletons to walk. The next anticipated breakthrough is 'language decoding'," said several international scientists at the BCI Society &Chen Institute Joint BCI Meeting held in Shanghai in December 2024, reported the Science and Technology Daily.

Earlier, the team made significant progress in movement intention decoding as well. In August 2024, NeuroXess and Huashan Hospital completed a clinical trial assisting patients with motor disabilities in regaining motor function through brain-controlled smart devices.

NeuroXess told the Science and Technology Daily that this language decoding clinical trial represented a one-month short-term in vivo experiment. The team plans to gradually initiate long-term in vivo clinical trials, with the goal of achieving multi-center registration for three categories of medical devices.

China's partially invasive BCI technology is also developing. In December 2024, Hong Bo, a professor from the School of Medicine with Tsinghua University, told the Global Times thattheir partially invasive BCI device, NEO, would begin large-scale clinical trials in 2025, with intends to recruit 30-50 spinal injury patients for implantation. After completing these surgeries, the team plans to seek regulatory approval for market launch.
 

Chinese electric model tops Israel's car sales in 2024​

(Xinhua) 10:54, January 03, 2025
JERUSALEM, Jan. 2 (Xinhua) -- The Atto 3, an electric subcompact crossover from the Chinese carmaker BYD Auto, was the top-selling car in Israel in 2024, according to data released by the Israel Vehicle Importers Association on Thursday.

A total of 10,607 units of the Atto 3 were sold throughout the year, outpacing all other gasoline-powered and electric models.

The Skoda Octavia, a Czech-made petrol-powered small family car, was the second bestseller in Israel in 2024, with 7,461 units sold.

Chinese brands led overall car sales in Israel, with 63,489 units sold in 2024. South Korea ranked second with 45,805 units, followed by Japan, which sold 43,730 units.

In the electric vehicle (EV) market, BYD Auto secured the top position by selling 16,690 units across six models. Tesla, the American EV maker, followed with 8,202 units sold, while Chinese manufacturer MG Motor took the third spot with 6,276 units sold.

Other Chinese manufacturers, including XPeng Motors, Chery Automobile, and Geely Auto Group, also performed strongly. Overall, Chinese automakers captured 68.69 percent of Israel's EV market in 2024, with a total of 46,137 units sold.
 

Chinese electric model tops Israel's car sales in 2024​

(Xinhua) 10:54, January 03, 2025
JERUSALEM, Jan. 2 (Xinhua) -- The Atto 3, an electric subcompact crossover from the Chinese carmaker BYD Auto, was the top-selling car in Israel in 2024, according to data released by the Israel Vehicle Importers Association on Thursday.

A total of 10,607 units of the Atto 3 were sold throughout the year, outpacing all other gasoline-powered and electric models.

The Skoda Octavia, a Czech-made petrol-powered small family car, was the second bestseller in Israel in 2024, with 7,461 units sold.

Chinese brands led overall car sales in Israel, with 63,489 units sold in 2024. South Korea ranked second with 45,805 units, followed by Japan, which sold 43,730 units.

In the electric vehicle (EV) market, BYD Auto secured the top position by selling 16,690 units across six models. Tesla, the American EV maker, followed with 8,202 units sold, while Chinese manufacturer MG Motor took the third spot with 6,276 units sold.

Other Chinese manufacturers, including XPeng Motors, Chery Automobile, and Geely Auto Group, also performed strongly. Overall, Chinese automakers captured 68.69 percent of Israel's EV market in 2024, with a total of 46,137 units sold.


View: https://x.com/bozzie_t/status/1876306894534627802?t=PreMwR9j0Sk3BpATKPjI4g&s=19


View: https://x.com/luo_yuehan/status/1877017525071876485?t=Cyw8qWAA-kokOZXVZ3howw&s=19


View: https://x.com/tphuang/status/1876621253970428149?t=N-JuU91bVLABFLf2K-RCQQ&s=19
 
MEXICO CITY, Jan 13 (Reuters) - Mexican President Claudia Sheinbaum on Monday rolled out an economic plan aimed at curbing imports from China in an apparent nod to U.S. President-elect Donald Trump and his allegations that Mexico is a back door for Chinese goods entering the United States.
Sheinbaum also used her speech to defend the U.S.-Mexico-Canada (USMCA) trade pact, which she said was the only way to compete with China. The deal is up for review in 2026.
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The plan includes boosting local sourcing for industries reliant on Chinese imports, like textiles and autos, as well as helping Mexican steel producers, who have long accused China of undercutting the market.
Sheinbaum also plans to bump investments up to 28% of GDP, adding 1.5 million manufacturing jobs by boosting local production and cutting red tape.
The business-friendly agenda represents a shift in tone from Sheinbaum's predecessor and mentor, President Andres Manuel Lopez Obrador, who left office in October and often tussled with private firms.

 
US Tariff Man Trump and U.S.-China Tensions

Who wouldn’t be concerned upon learning that China recorded a trillion-dollar trade surplus last year? This alarming imbalance is undoubtedly a pressing issue. If the newly elected U.S. President, Donald Trump, enforces a 25% tariff on Chinese imports, it could be considered a necessary response to address the disproportionate trade dynamic created by China’s massive exports and minimal imports from the rest of the world.

If the U.S. moves forward with these tariffs, it’s likely that Europe and other nations will follow suit. Such collective action could curb China’s ambitions of leveraging trade as a tool for global dominance. The U.S., preoccupied with the ongoing war in Ukraine, has seemingly overlooked the economic dimension of its challenges: Currently, the U.S. and other nations are financing these trade deficits through borrowing, but this approach is unsustainable.

Why is this happening?

The root cause lies in decisions made decades ago. In the 1990s, instead of investing in modernization to enhance productivity, American and European manufacturers opted to relocate large-scale manufacturing to China, drawn by its cheap labor. To support Chinese manufacturing, Western companies provided technology and foreign direct investment (FDI). Additionally, the exchange rate between the U.S. Dollar and the Chinese Yuan was kept artificially low, ensuring that Chinese products remained inexpensive in global markets.

This arrangement allowed Western consumers to enjoy cheap, disposable products, fueling a culture of consumption. However, while Chinese factories thrived, China imported little beyond manufacturing machinery and technology. By the early 2000s, China’s trade surplus began to grow, and by the mid-2010s, it soared as Western companies outsourced their supply chains to China for cost-efficiency. Despite knowing that Chinese goods were often of inferior quality, corporations prioritized short-term savings over long-term consequences.

The Case for Tariffs

Given this context, imposing tariffs is not entirely unexpected. No other world leader would dare to take such bold action except Donald Trump, who will be inaugurated on January 20th. Known for his audacity, Trump imposed 10-20% tariffs on select Chinese imports during his previous term. While these measures had some impact, they weren’t sufficient to significantly slow China’s export juggernaut. This time, a blanket 25% tariff on all Chinese imports appears to be the right move. China may protest loudly, but they understand the rationale behind these measures.

Potential Impacts of Tariffs

One positive outcome of these tariffs could be the diversification of manufacturing away from China. Countries with cheap labor and friendly governments, such as India, Malaysia, and Vietnam, are likely beneficiaries. Additionally, some manufacturing might return to the U.S., boosting domestic industries.

Relocating manufacturing will require significant financial resources, which can be sourced from internal funds, FDI, and external borrowing. However, the primary driver of such a shift will be political will and leadership. Strong leaders with a clear vision and the backing of robust economic and military power will need to spearhead this effort.

In conclusion, the tariffs proposed by President Trump may not be a perfect solution, but they are a bold and necessary step to address decades of economic imbalance and over-reliance on China.
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