• nekandro@lemmy.mlOP
    294·
    8 months ago

    China, producing cheaper goods that allow consumers to get the same quality of product for less money, thus leaving more money in people’s pockets.

    The Financial Times.

        • sik0fewl
          46·
          8 months ago

          I don’t think you were talking about me, but even if you were that’s not very nice.

          The original commenter was suggesting that this is great for the US and maybe other western states, but I was noting that any benefit to the west will be at the cost of the Chinese.

          I’m not upset that the west will benefit (I’m from Canada), but it’s pretty cunty to reduce a global economics story down to how it will benefit just one nation.

          Edit: I should add - deflation is probably bad for China and Chinese people. It’s not driven by growth, but by lack of spending.

            • sik0fewl
              33·
              8 months ago

              You’re right that I’m not an expert in economics. Can you explain why this is good for China? I’m honestly interested and willing to learn.

              • carl_marks[use name]@lemmy.ml
                8·
                8 months ago

                For the Chinese economy, it signifies, as other commenters have noted and as pointed out in the article, the presence of a highly efficient Chinese industrial base capable of meeting not only domestic demand but also exporting increasingly sophisticated manufactured goods. While oversupply might trigger deflation domestically, the (planned) inflation target of around 3% for 2024, as suggested (and confirmed) by the article, indicates that China is successfully boosting exports instead. This indicates their ability to acquire capital for reinvestment, further enhancing their economy.

                Internationally, for consumers, this is positive news, especially in the post-COVID and Ukraine conflict period where inflation has pushed up prices, making goods more expensive. The availability of competitively priced Chinese goods, as the article terms it, “exporting deflation,” therefore benefits consumers worldwide.

                However, on an international scale, this trend could potentially pose challenges for other nations trying to develop competitive domestic economies. It creates significant pressure within the capitalist mode of production, potentially making it difficult for other economies to compete effectively. Hopefully forcing them change the mode of production, realistically they will likely go the protectionist route.

  • davel [he/him]@lemmy.mlEnglish
    328·
    8 months ago

    At the same time, cheaper Chinese exports will intensify complaints among western manufacturers about unfair competition.

    Sucks to suck 🤷 Maybe try central planning, state banking, and state-controlled means of production, thus lowering the cost of manufacturing. Maybe don’t let the Finance, Insurance, and Real Estate (FIRE) sectors strip the copper out of the walls (PDF).

    “China spent 20 years destroying emerging-market competitors in the manufacturing space, or at least squeezing them out of global markets. Now it’s threatening to do the same to advanced economies’ manufacturers,” added Robertson.

    Nobody put a gun to Global North capitalists’ heads and made them offshore their manufacturing and de-industrialize their own countries.