Faced with many difficulties, China's economy may decelerate sharply

[xizhimen]

How does China keep track of their unemployed people ?

Welfare system, and 街道 （neighborhood committee）

中文名 最低生活保障制度 外文名 Subsistence Security System

 

[Viva_vietnamm]

His income being slashed? so if someone's income increased 400% in China, you believe China's average income increased 400%? if you have a brain, use it.

How many Cnese among 800 million workforces got their income increased ??

while still having 600 million people whose monthly income is barely 1,000 yuan (USD 140) and their lives have further been affected by the coronavirus pandemic,

 

[Saithan]

Shouldn't the welfare system not be enough. I assume that all born and living in China is registered in this system, and whether they work and such. Why do you need the neighborhood committee ?

 

[xizhimen]

2019年，我国城乡低保标准稳步提高。截至去年11月底，全国城市低保月人均标准为617元，农村低保年人均标准为5247元，同比分别增长7.4%和10.4%，累计支出低保金达1433.8亿元。

 

[xizhimen]

Shouldn't the welfare system not be enough. I assume that all born and living in China is registered in this system, and whether they work and such. Why do you need the neighborhood committee ?

If you have no income at all, in my city, you get 1100 yuan (200USD) per month from the government, houses will be provided by the government, 廉租房, you only need to pay a token rent. Different cities and provinces have different standard based largely on the local cost of living, for details, check the chart.

 

[Saithan]

If you have no income at all, in my city, you get 1100 yuan (200USD) per month from the government, houses will be provided by the government, 公租房, you only need to pay a token rent. Different cities and provinces have different standard based largely on the local cost of living, for details, check the chart.

does government support require the receiver to be actively searching for a job ? and you got a jobcenter that helps people find job ?

 

[xizhimen]

does government support require the receiver to be actively searching for a job ? and you got a jobcenter that helps people find job ?

I've never been on welfare, but I personally know some tricky people getting the welfare from the government every month while secretly working some other jobs, this system does have loopholes.

 

[xizhimen]

China has a very strange policy, every business has to pay taxes for "disabled people", but if your business hired one disable person, you don't have to pay this tax, if you hire more than one, you get handsome subsidies from the government, so all business are fighting for disabled people, a disabled person doesn't have to go to work, they just registered with several businesses showing they are employed by them, and get tens of thousands every month at home.

Many say the best meal ticket one can possibly get is 残疾人证 （government issued card for disabled people）

 

[Viva_vietnamm]

does government support require the receiver to be actively searching for a job ? and you got a jobcenter that helps people find job ?

Its very hard to find good job that pay u enough to survive in CN now (abt 1000 usd per month) while factories jobs only pay u from 500usd to 750 usd per month and u have to work very hard but still not enough to survive, let alone rasing kids .

Thats why CN's birth rate keep dropping

 

[xizhimen]

Its very hard to find good job that pay u enough to survive in CN now (abt 1000 usd per month) while factories jobs only pay u from 500usd to 750 usd per month and u have to work evry hard but still not enough to survive .

Are you crazy? How long have you lived in China? Do you have the faintest idea on what you are talking about?

 

[Viva_vietnamm]

Are you crazy? How long have you lived in China? Do you have the faintest idea on what you are talking about?

Stop talking nonsense anymore, bro. When ask abt jobs earning 1000 usd per month in CN, u only mention abt Food delivery job

pls Tell me what else can CNese do to get 1000 usd per month ?? and how many CNese, among 800 million workforces, can get those jobs ??

 

[xizhimen]

Stop talking nonsense anymore, bro. When ask abt jobs earning 1000 usd per month in CN, u only mention abt Food delivery job

pls Tell me what else can CNese do to get 1000 usd per month ?? and how many CNese, among 800 million workforces, can get those jobs ??

Almost every job, how long have you lived in China?

 

[xizhimen]

China first overtook US in the size of the middle class population in 2015 and McKinsey analysis predicts it could reach 550 million in three years — that’s more than one-and-a-half times the entire U.S. population today.

"The middle class in China now amounts to 109 million people, putting it ahead of the US – where they number 92 million - for the very first time, according to the Credit Suisse report, which equates middle-class wealth to holding assets (mostly financial and real estate) in the region of US$50,000 to US$500,000."

 

[Anastasius]

China has a very strange policy, every business has to pay taxes for "disabled people", but if your business hired one disable person, you don't have to pay this tax, if you hire more than one, you get handsome subsidies from the government, so all business are fighting for disabled people, a disabled person doesn't have to go to work, they just registered with several businesses showing they are employed by them, and get tens of thousands every month at home.

Many say the best meal ticket one can possibly get is 残疾人证 （government issued card for disabled people）
View attachment 34618

Sounds like every NEET's dream.

 

[Viva_vietnamm]

Almost every job, how long have you lived in China?

View attachment 34623

Almost every job ?? what else after food delivery that will not hire Cnese over 35 year old ??

 

[xizhimen]

Almost every job ?? what else after food delivery that will not hire Cnese over 35 year old ??

35？China produces the world most young billionaires, this is about the same age for this job.

 

[Viva_vietnamm]

China’s Modern Land defaults on bond payment; property shares drop​

By Donny Kwok and Andrew Galbraith
HONG KONG/SHANGHAI (Reuters) -Modern Land defaulted on a bond payment, the latest Chinese property developer to do so, adding to worries about the wider impact of the debt crisis at behemoth China Evergrande Group, and weighing on shares in the sector.
Modern Land (China) Co Ltd said in a filing on Tuesday that it had not repaid principal and interest on its 12.85% senior notes that matured on Monday due to “unexpected liquidity issues”. The bond has outstanding principal of $250 million.

Separately, China’s state planner said it and the foreign exchange regulator met with companies in “key sectors”, which a source said included property firms, over their foreign debt holdings, asking them to “optimise” offshore debt structures and prepare to repay interest and principal on foreign bonds.

Modern Land’s missed payment comes days after the company, a smaller developer, scrapped plans to seek investor consent to extend the maturity date of the bond by three months, saying doing so was not in the best interests of it and its stakeholders.

Ratings agency Fitch earlier this month cut Modern Land’s rating to “C” from “B” over the attempt to change bond terms, saying it considered the move a distressed debt exchange. The debt default prompted ratings downgrades by Fitch and Moody’s.

Developers are defaulting “one by one”, said an investor with exposure to Chinese high-yield debt, who asked not to be identified as he is not authorised to speak to media.

“The question is always, who’s next?”
REGULATORS WEIGH IN
After weeks of near-silence as investor worries over Evergrande and other developers mounted, Chinese regulators including the central nL1N2RB0PHbank have become increasingly vocal.
Late on Tuesday, China’s National Development and Reform Commission said that it and the State Administration for Foreign Exchange had met with foreign debt issuers, telling them to use funds for approved purposes and “jointly maintain their own reputations and the overall order of the market”.

This month, Fantasia Holdings Group defaulted on a maturing dollar bond that heightened concerns in international debt markets, already roiled by worries over whether Evergrande would meet its obligations.
Evergrande, which narrowly averted a costly default https://www.reuters.com/world/china...tee-bond-coupon-due-sept-23-source-2021-10-22 last week, is reeling under more than $300 billion in liabilities and has a major payment deadline on Friday.

The company said on Tuesday it would deliver 31 real estate projects under construction in China’s Pearl River Delta region by the end of 2021. That number will rise to 40 by the end of June 2022, Evergrande said in comments to Reuters.
Evergrande had said on Sunday it had resumed work on more than 10 projects in six cities, including Shenzhen in southern China, after earlier halting them because it was unable to pay contractors. The developer has some 1,300 real estate projects across China in total.


China’s CSI 300 Real Estate Index fell 2.8%, and the Hang Seng Mainland Properties Index dropped 4.3%. The broader Hang Seng index edged down 0.4% while China’s CSI300 index slipped 0.3%.
The prospect of contagion and more defaults have weighed on the sector in a major setback for investors.
Chinese Estates Holdings Ltd said it would book a loss of HK$288.37 million ($2.24 billion) this fiscal year from its latest sale of bonds issued by Chinese property developer Kaisa Group Holdings Ltd.
Modern Land’s 11.8% February 2022 bond was down 1.6% at a discount of over 80% from its face value, yielding about 1,183%, according to data provider Duration Finance.
Evergrande shares ended the day down more than 4%. Shares in its electric vehicle (EV) unit closed down 6.75% after earlier rising as much as 5.8%.

China’s Modern Land defaults on bond payment; property shares drop

Get the latest updates on Modern Land's default on bond payment amid China Evergrande Group's debt crisis, affecting shares in the property sector.

www.globalbankingandfinance.com

 

[xizhimen]

“The question is always, who’s next?”

Lol, western politicians and media has been asking this question for 4 decades, I think China had already answered them.

 

[Viva_vietnamm]

TECH

China is pushing to develop its own chips — but the country can’t do without foreign tech​

PUBLISHED SUN, OCT 24 20219:03 PM EDTUPDATED MON, OCT 25 20214:25 AM EDT

China’s reliance on foreign tech is still a challenge for its chip industry

GUANGZHOU, China — China’s technology giants have been pushing to develop their own semiconductors or chips, a move seen as progress toward China’s goal to become self-reliant in the critical technology.
In reality, China is still a long way off even if it’s one step closer to self-sufficiency, according to one expert, adding that the country is still heavily dependent on foreign technology and lagging in the so-called leading edge part of the chip market.

Semiconductors are key components in everything from smartphones to modern refrigerators to cars. They’ve also become a key focus of the broader technology battle between the U.S. and China.

The world’s second-largest economy has for years invested heavily into boosting its domestic chip industry, but it has struggled to catch up with rivals in the U.S. and other parts of Asia. Increasingly, semiconductors are seen as key to national security for many countries and a sign of technological prowess.
There’s been a slew of announcements from major Chinese technology companies this year regarding chips made in China.
In August, Baidu launched Kunlun 2, its second-generation artificial intelligence chip. This week, Alibaba released a chip designed for servers and cloud computing. Smartphone maker Oppo is also developing its own high-end processors for its handsets, the Nikkei reported on Wednesday.

This is a step in becoming more self-sufficient in semiconductors but a small one.
Peter Hanbury
PARTNER, BAIN & COMPANY

While these companies are designing their own chips, they might still have to rely on foreign tools to do so. But when it comes to manufacturing and the broader supply chain, China’s internet giants are still heavily dependent on foreign companies.

“This is a step in becoming more self-sufficient in semiconductors but a small one,” Peter Hanbury, a partner at Bain & Company, told CNBC by email. “Specifically, these are examples of locally designed chips but a lot of the IP [intellectual property], manufacturing, equipment and materials are still sourced internationally.”
The reason these companies are designing their own chips is because they can create semiconductors for specific applications so as to differentiate from their competitors.

Foreign-dominated supply chain​

A closer look at the specifics of the silicon being designed shows China’s reliance on foreign companies.
Take Alibaba’s new Yitian 710 chip. That is based on architecture from British semiconductor firm Arm. It will also be built upon the so-called 5-nanometer process, the most advanced chip technology at the moment.
Baidu’s Kunlun 2 chip is based on the 7-nanometer process. Oppo meanwhile is reportedly working on a 3-nanometer chip.

This is where the challenge lies for China.
The country does not have a company capable of manufacturing these leading edge semiconductors at these sizes. They will have to rely on just three companies — Intel from the U.S., TSMC from Taiwan and Samsung in South Korea.
China’s largest chip manufacturer SMIC is still years behind its companies in terms of manufacturing technology.
But it’s not just manufacturing. Even companies like TSMC and Intel rely on equipment and tools for the manufacturing process from other companies.

In that area, power is concentrated in the hands of a few: ASML, a company from the Netherlands, is the only company in the world capable of making a machine that chip manufacturers need to make the most advanced chips.


“The semiconductor ecosystem is large and complex, so building self-sufficiency is very difficult across such a broad range of technologies and capabilities,” Hanbury said.
“In general, the most challenging area to build self-sufficiency will be the leading edge. Here, the challenge is you need both investment dollars, but you also need to overcome the massive requirements around technical expertise and accumulated experience.”

Geopolitical vulnerabilities​

The reliance on foreign companies leaves Chinese firms vulnerable to any geopolitical tensions — as was the case with both Huawei and SMIC.
Huawei designed its own smartphone processors called Kirin. The chips were usually based on the latest technology and helped the Chinese smartphone giant become one of the biggest smartphone players in the world.
However, the U.S. put Huawei on a trade blacklist called the Entity List in 2019 which cut off the Chinese company from certain U.S. technology. Last year, Washington introduced a rule which requires foreign manufacturers using American chipmaking equipment to get a license before they’re able to sell semiconductors to Huawei.

Read more about China from CNBC Pro​

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Huawei’s chips were manufactured by TSMC. But when the U.S. rule was introduced, TSMC could no longer make semiconductors for Huawei. That crippled its smartphone business globally.
SMIC is also on the U.S. blacklist which restricts its access to American technology.
These sanctions could be a concern for Chinese companies now developing their own chips.
“For example, if there was an effort to block the shipment of smart phone processors then Oppo, for example, would have a domestically designed source of chips,” Hanbury said. “However, most of these chips are still manufactured using international technology so they could still lose access to their chips if the manufacturing partner for these chips were blocked from manufacturing.”

Supply chain concerns​

Governments around the world now see semiconductors as extremely strategic and important technology.
U.S. President Joe Biden has called for a $50 billion investment in semiconductor manufacturing and research and has looked for chipmakers to invest in the country. In March, Intel announced plans to spend $20 billion to build two new chip factories, called fabs, in the U.S.
“This is about out-competing China,” Commerce Secretary Gina Raimondo told CNBC in March.

VIDEO08:07
US Commerce Sec Gina Raimondo discusses Biden’s $2 trillion infrastructure plan

Washington has looked to bring semiconductor manufacturing back to the U.S., seeing it as key for national security, given the supply chain is very concentrated in Asia.
But like-minded nations are also trying to work together to ensure their semiconductor supply chains are secure.
Leaders of the the United States, India, Japan and Australia, a group known as the Quad, announced plans in September to establish a semiconductor supply chain initiative aimed at identifying vulnerabilities and securing access to semiconductors and their vital components.

A lot of the recent discussion on semiconductor supply chains was sparked by a global chip shortage that has hit industries from autos to consumer electronics, and worried leaders about their countries’ ability to secure semiconductors when required.

So where is China now?​

China may be ahead of its peers in some areas of chip development, but it will find difficulty catching up with cutting-edge technology, at least in the short term.
For example, SMIC can manufacture 28-nanometer chips on a large scale. These could be used in TVs or even autos — an area China could do well in, particularly with the current shortage of semiconductors.

However, to put things in perspective, TSMC is already working on 3 nanometer technology. SMIC would have to master the manufacturing processes that TSMC has been doing for years before being able to catch up.
“So even moving quickly forward across these existing technologies would not be enough to catch up and reduce reliance at the leading edge because the leading edge is constantly moving forward,” Hanbury said.
“It’s like running a race to catch a really fast runner while that runner is quickly running away from you.”

China is pushing to develop its own chips — but the country can't do without foreign tech

China's reliance on foreign firms in the semiconductor supply chain could make domestic giants vulnerable to geopolitical issues as was the case with Huawei.

www.cnbc.com

 

[Viva_vietnamm]

What caused China's economy to grow only 4.9% in the third quarter?
An Huy -

China's gross domestic product (GDP) grew 4.9% in the third quarter, due to weaker-than-expected industrial output growth and other reasons. This growth rate of the world's second largest economy disappointed observers...

Unloading coal from a coal tanker at a seaport in Liaoning on October 14, 2021 - Photo: Getty/CNBC.

Data released by the General Statistics Office of China (NBS) this morning (October 18) showed that the country's GDP increased by 4.9% over the same period last year. Previously, experts polled by Reuters news agency had forecast a 5.2% increase.China's industrial output grew only 3.1% in September, much lower than the 4.5% growth forecast by experts. The slowdown in industrial production is believed to be a major cause of China's GDP growth falling short of expectations.

"Since the start of the third quarter, risks and challenges at home and abroad have increased," NBS spokesman Fu Linghui told a news conference. Mr. Fu said the power shortage had had a "definite effect" on production, but said the economic impact of the power shortage crisis was "controllable".

Many factories in China had to suspend production at the end of September due to soaring coal prices and electricity shortages forcing localities to suddenly cut power. The Chinese government then demanded to increase the mining output of the coal mines and ensure the supply of electricity.

Recently released data also shows that Chinese enterprises are currently hesitant to pour capital into new projects. Fixed asset investment in the first three months of the year in the country increased by 7.3% year-on-year, lower than the forecast for a 7.9% increase.

"Investment activity weakened due to tight credit conditions," said Chaoping Zhu, a strategist at JPMorgan Asset Management.

Zhu estimates that year-on-year, China's fixed-asset investment in September fell 2.5% year-on-year, mainly due to a 3.5% drop in development investment. real estate projects.

Real estate and related industries account for about a quarter of China's GDP, according to estimates by credit rating agency Moody's. Over the past 18 months, Beijing has stepped up efforts to reduce debt in this area.


In such a context, real estate giant Evergrande plunged into a debt crisis, warned of the risk of default and missed interest payments on two lots of USD bonds. On Friday, China's central bank said that Evergrande was an isolated case and that most of the country's other real estate companies remained stable.

Speaking on October 18, Mr. Fu acknowledged that the deceleration of the real estate sector in the third quarter made the industry's contribution to economic growth also decrease. However, the official is optimistic that the impact on overall economic growth will be limited.

China's quarterly GDP growth rate year-on-year.

The latest data shows that Chinese consumers keep spending, despite the impact of anti-Covid restrictions and the country's auto sales have fallen for the fourth straight month. Retail sales in September rose 4.4% year-on-year, far exceeding the 3.3% increase forecast by experts surveyed by Reuters.

China's urban unemployment rate in September was 4.9%. For 16-24 year olds, the unemployment rate is much higher than the general figure, up to 14.6%.

Recently, a series of banks have cut China GDP growth forecasts for 2021 due to power shortages and efforts to reduce debt in the country's real estate industry, in addition to other sources of pressure such as weak consumption.

“China once led the world in economic recovery from the Covid-19 pandemic. Now, that recovery is losing momentum," said China Renaissance expert Bruce Pang, pointing to a number of obstacles to China's economic growth, from sporadic Covid-19 infections to efforts to country to reduce carbon emissions.

“On the issue of supervision regulations, we believe that the authorities will better manage the speed and intensity of the campaign to strengthen supervision, to ensure the achievement of key economic and social development goals. set out for this year and the next 5-10 years,” Mr. Pang told CNBC. “Officials can better communicate with the market about the motives behind policy moves and signal in advance about future surveillance ‘hotspots’. We think so.”

Điều gì khiến kinh tế Trung Quốc chỉ tăng 4,9% trong quý 3?

Tổng sản phẩm trong nước (GDP) của Trung Quốc tăng trưởng 4,9% trong quý 3 vừa qua, do sản lượng công nghiệp tăng yếu hơn dự kiến và một số nguyên nhân khác. Mức tăng trưởng này của nền kinh tế lớn thứ nhì thế giới khiến giới quan sát thất vọng...

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