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China's economy will open up like never before says Chinese President Xi Jinping

Discussion in 'China & Asia Pacific' started by WhyCry, Mar 8, 2017.

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Which country will be the favorite FDI destination?

Poll closed Mar 18, 2017.
  1. India

    95.8%
  2. China

    0 vote(s)
    0.0%
  3. USA

    4.2%
  4. Brazil

    0 vote(s)
    0.0%
  5. Pakistan... No Kidding... Lol

    0 vote(s)
    0.0%
  1. WhyCry

    WhyCry Reaper Love IDF NewBie

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    [​IMG]

    President Xi Jinping has vowed to open up China like never before as the world's second-largest economy faces dwindling foreign exchange reserves and rising competition from countries like India for foreign investment.

    China has been trying several measures to keep the economy floating and struggling to keep the growth rate steady. It has moderated its economic growth forecast for 2017 to "around 6.5 per cent" from the 6.7-7 per cent it had targeted last year.

    This year's target is below expectations and signals China is likely to embrace risk-control over short-term growth. Last year, however, it achieved a full-year growth of 6.7 per cent. That figure was the weakest since the 1990s.

    Xi, who has emerged as China's most powerful leader in recent years and who is nearing the end of his first term in office, told lawmakers yesterday that China's opening door will not close, vowing that the country will continue to open up on all fronts and continue to liberalize, state-run Xinhua news agency reported today. His remarks - made during a panel discussion with lawmakers from Shanghai at the annual session of the National People's Congress (NPC) - assume significance as China has been loosening its grip on foreign capital inflows and reducing restrictive measures and opening more sectors.

    Yesterday, Premier Li Keqiang delivering a government work report detailed "unprecedented" opening-up measures to the outside world under its flagship 'Made in China' initiative. "Foreign firms will be treated the same as domestic firms when it comes to licences applications, standard setting, government procurement and will enjoy same preferential policies under Made in China 2025 initiative," Li said. Foreign firms will be able to get listed on China's stock markets and issue bonds. They will be allowed to participate in national science and technology projects, he said.

    Significant improvements will be made in the environment for foreign investment. Service industries, manufacturing and mining will be more open to foreign investment, he added.
    Local governments in China can, within the scope of the powers granted them by law, adopt preferential policies to attract foreign investment.

    With the renewed focus for FDI, China is expected to aggressively vie with India for investments abroad. Its forex reserves - the world's largest - dipped below $3 trillion, sparking concerns among the Chinese policymakers.

    In the past few years, India has become a major destination for FDI under the 'Make In India' program. According to a Financial Times report, "In 2015, India was for the first time the leading country ($63 billion) in the world for FDI, overtaking the US (which had $59.6 billion of greenfield FDI) and China (USD 56.6 billion)."

    Source: http://economictimes.indiatimes.com...president-xi-jinping/articleshow/57495995.cms

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  2. A_poster

    A_poster Captain FULL MEMBER

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    Without a major reform, China is expected to go bankrupt before the end of the year. We are going to see opening up and a major devaluation of Yuan this year.
     
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  3. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    The decelerating GDP and decreasing reserves is an excuse ... the real intention is to obstruct India's growth at every cost.

    The FDI is intentionally squeezed out of China when all profits were taken by the investors by dumping the Shanghai stock exchange from 5k+ to ~2.6k, that is when the Chinese government stepped in to limit the free fall at max of 7% per day.

    China has amassed massive dormant assets - ghost cities - these amount to some estimates of around 60 million vacant houses sometime in 2015 based on the past six month electric bill of zero yuan. Over capacity, massive bad corporate and municipal debts. Just to get an understanding of what it would be like in case of another global downturn, during the previous one, china brought around 300 million workers from mainland to the coastal hubs from 1987 to 2007, and in the last recession alone 30 million workers had to return back to mainland.

    Further, no one wants to deal with a bully anymore - with a massive appetite to profit from others and then use the same to threaten them; as well as its reputation of the Chief-in-Thief of the world's IPs; maybe the world may collectively decide to starve the monster to its death
     
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  4. SR-91

    SR-91 2nd Lieutant FULL MEMBER

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    Xi will find out the hard way, it's a little too late in the game. Very few investors will be interested in his new policy. Infact IMO, it will very hard for him to attract new investors.

    Look at China's GDP since 2008, it was at a healthy 12% and since then it has continue to decline year over year, now at 6.7%. True numbers are lower than stated. Which is another issue daunting China, people are tired of manipulations and corruption. China manipulates it's currency at will.
    China has also kept its cost of capital artificially depressed to help exporters generate jobs. That has fuelled a wave of bad lending, notably to local governments and the real estate sector.
    Their real estate is in trouble, their stock market is in trouble, china has pumped more than 500 BILLION DOLLARS to bail out their stock market recently.

    There is no momentum, human rights violations, political corruption, IP rights violation, cyber espionage, quality issues, political issues, trade imbalance issues, south china sea issues, artificial island is another issue, China boundry line issues with many nations, china one -child policy which will create work force issues in future, pollution issues and many more. china has wayyyy too many issues on hand.

    Their GDP growth is declining
    Their for-ex has declined by 40%.
    Their debt is all time high.
    Uncertainty in all sectors including banking.
    And biggest one of all, there is a high risk of a war with china than any country in the world.
    China is on it's way down and no-one wants go get on a drowing ship.
     
    Last edited: Mar 8, 2017
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  5. Sathya

    Sathya Lieutenant FULL MEMBER

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    there is someone.. :tongue: :dumbhorse:
     
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  6. SR-91

    SR-91 2nd Lieutant FULL MEMBER

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    Lol.

    First of all they are a katora in the hand country..... Begging for money from everyone.

    2Nd, It's not a country anymore, it's more like a CHINA COLONY. :wonttroll:
     
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  7. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    India is already world's largest FDI destination.
     
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  8. randomradio

    randomradio Colonel Technical Analyst

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  9. randomradio

    randomradio Colonel Technical Analyst

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    We are ahead when it comes to greenfield investments, basically new investments. Total FDI, we are not even close to the US and China.
     
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  10. lca-fan

    lca-fan Major SENIOR MEMBER

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    China sees first monthly trade deficit in three years

    • 8 March 2017


    [​IMG]Image copyrightEPA
    China has reported its first monthly trade deficit in three years, after imports surged and a slowdown during the Lunar New Year holidays hit output.

    Higher commodity prices and domestic demand were credited with pushing February's imports up 38.1% on a year earlier.

    But exports unexpectedly fell 1.3%, giving a trade deficit of $9.2bn for the month.

    China's monthly imports last exceeded exports in February 2014.

    Analysts polled by Reuters had forecast China would have a monthly trade surplus of $25.8bn.

    Import slowdown likely
    The country's economic data from January and February can be distorted by the long holidays, which see businesses slowing down and often cutting back operations or closing completely.

    And most analysts agree that the latest data is just a blip, with a surplus inevitable again once the impact of the holidays tails off.

    "The latest trade data suggest that, seasonal distortions aside, both exports and imports strengthened at the start of 2017," said Julian Evans-Pritchard of Capital Economics.

    "However we doubt that the current pace of import growth can be sustained. It is only a matter of time before we see a slowdown in domestic demand."

    Rebalancing
    With the Chinese economy expanding at its slowest pace in 26 years in 2016, Beijing is likely to be heartened by the latest import figures, as it looks for signs of improvement.

    Leaders are trying to rebalance the economy, reducing reliance on state investment and exports, and growing more through domestic consumption.

    At the weekend, Premier Li Keqiang used his speech at the country's rubber-stamp parliament, the National People's Congress (NPC) to cut China's annual growth target to 6.5%.

    Carrie Gracie: Could China's Trump tactics actually be working?

    China's trade balance was thrust back into the spotlight by Donald Trump during the US presidential election campaign.

    He ramped up his protectionist rhetoric accusing Beijing of not giving US firms access to key Chinese markets, and of making it impossible for US firms to compete with Chinese imports because the value of the Chinese currency was kept artificially low.

    However, since coming to office, Mr Trump has held off officially calling China a currency manipulator.

    http://www.bbc.com/news/business-39191200

    China is big Bubble Gum about to explode. But it will be painful to everyone on the planet as it would lehman brothers X 100 times. China expanded its economy by constructing Homes, 1000 cities but no one to live these are ghost cities. 11,000 kms of bullet trains but tickets are expensive than Airlines so they move empty, they have steel Factories which can supply entire world and still there will be surplus, all these thing were made by taking debts which now stands at 400% of its GDP. Their share market and economy tanked on 2/1/2016 when chinese share markets crashed over 40 % in just 2-3days as several debt repayments were about to default so they simply rolled over that debt which amounted more than a $1.2 trillion to stabilize the market. Now even that leeway is not available with trade deficit coming to haunt them.

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  11. AbRaj

    AbRaj Captain FULL MEMBER

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    Fcuking with every neighboring country is going to cost them dearly.
    Its South Korea effects happening now IMO
     
    Last edited: Mar 8, 2017
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  12. Marqueur

    Marqueur Peaceful Silence ELITE MEMBER

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    Chinese economy is ticking time bomb ... the picture will be clear by year end
     
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  13. PeegooFeng41

    PeegooFeng41 2nd Lieutant FULL MEMBER

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    Nah there is much simple force behind it. Riches of China have found a new way to move money out of China. Imports. Someone might be selling some trinkets outside China and then buying back for HUGE price.
     
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  14. lca-fan

    lca-fan Major SENIOR MEMBER

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    But that same method is used by rich Indians too. Ambanis were pioneer of this method.
     
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  15. PeegooFeng41

    PeegooFeng41 2nd Lieutant FULL MEMBER

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    No one accused of Chinese for being original.
     
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