180
China is merging hundreds of small banks to fend off financial stress
(www.businessinsider.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 05 Feb 2024
180 points (98.4% liked)
World News
39026 readers
1255 users here now
A community for discussing events around the World
Rules:
-
Rule 1: posts have the following requirements:
- Post news articles only
- Video links are NOT articles and will be removed.
- Title must match the article headline
- Not United States Internal News
- Recent (Past 30 Days)
- Screenshots/links to other social media sites (Twitter/X/Facebook/Youtube/reddit, etc.) are explicitly forbidden, as are link shorteners.
-
Rule 2: Do not copy the entire article into your post. The key points in 1-2 paragraphs is allowed (even encouraged!), but large segments of articles posted in the body will result in the post being removed. If you have to stop and think "Is this fair use?", it probably isn't. Archive links, especially the ones created on link submission, are absolutely allowed but those that avoid paywalls are not.
-
Rule 3: Opinions articles, or Articles based on misinformation/propaganda may be removed. Sources that have a Low or Very Low factual reporting rating or MBFC Credibility Rating may be removed.
-
Rule 4: Posts or comments that are homophobic, transphobic, racist, sexist, anti-religious, or ableist will be removed. “Ironic” prejudice is just prejudiced.
-
Posts and comments must abide by the lemmy.world terms of service UPDATED AS OF 10/19
-
Rule 5: Keep it civil. It's OK to say the subject of an article is behaving like a (pejorative, pejorative). It's NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.
-
Rule 6: Memes, spam, other low effort posting, reposts, misinformation, advocating violence, off-topic, trolling, offensive, regarding the moderators or meta in content may be removed at any time.
-
Rule 7: We didn't USED to need a rule about how many posts one could make in a day, then someone posted NINETEEN articles in a single day. Not comments, FULL ARTICLES. If you're posting more than say, 10 or so, consider going outside and touching grass. We reserve the right to limit over-posting so a single user does not dominate the front page.
We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.
All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.
Lemmy World Partners
News !news@lemmy.world
Politics !politics@lemmy.world
World Politics !globalpolitics@lemmy.world
Recommendations
For Firefox users, there is media bias / propaganda / fact check plugin.
https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/
- Consider including the article’s mediabiasfactcheck.com/ link
founded 1 year ago
MODERATORS
They're trying to authoritarian their way out of a massive speculation bubble.
I don't think it will work, unless you can will away a black hole. Debt is a kind of gravity.
You mean if you can pick up enough speed in the transverse direction you can circle around it and never hit it?
Use the debt’s gravity well to slingshot into the stratosphere!
If they're external creditors, it makes it a lot easier for them to go "nope, not paying that, what are you going to do?" when they're one massive state-backed monolith.
"Give Taiwan nukes", if the Dark Brandon memes are any indication.
Taiwan could develop nukes on their own, if necessary. They had a secret nuclear weapons program until the late 1980s:
https://en.wikipedia.org/wiki/Taiwan_and_weapons_of_mass_destruction
They are in the same club as countries like Japan, South Korea, Germany, Italy, etc. - highly developed nations that are fully capable of developing nuclear weapons, but chose not to (or were forced not to).
I think if they started working towards it, China would feel forced to step up their reunification efforts. If a nuclear deterrent is going to be a viable path back to a stable status quo, it will have to be a fait accompli with external help.
I could imagine a return to what Taiwan had until the early '70s, American tactical nuclear bombs stored on the island, in a similar nuclear sharing arrangement like several European nations that don't have nuclear weapons of their own, but train pilots to drop them.
It would have to be done very carefully and quickly, so that there is no chance for brinkmanship.
Can I help you?
Might be an idea to brush up on the cold war, while you're at it. We're still in it.
Sovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.
that depends on who the creditors are and how they demand payment. a pound of flesh or a dove feather. evergrande went bust at the same time china became the world biggest auto exporter. i think china participation in the global economy demands new economic theories, considering the promiscuity between the public sector and the "private" sector.
China became one of the world’s largest exporters of electric cars because their domestic market for vehicles has crashed. Now their industry is dumping cars in foreign markets to try and stay solvent.
The US has closed its markets to Chinese cars with high tariffs. That has left the EU as a dumping ground for Chinese high end EVs and the rest of the 3rd world for everything else. This is not sustainable, the EU will eventually block Chinese imports to protect their own industry. The third world can only absorb so much inventory especially with flagging economies.
of course adjustments will be made. but one can't really say that chinese economy is going to crash when no examples of a 1.5 billion people economic power existed before.
and lets not forget that when demand rises for ev's in western economies, considering the production capacity of the chinese market even high tariffs won't make a dent on their exports. the eu is not ready to supply demand of ev's by 2035. unless the state invests directly into car manufacturers just like the chinese gov is doing.
also another thing no one expects is the opening of the 1.5 billion consumer market as a bargaining chip by the chinese gov as a way to consolidate their position on the global market.
imho, the chinese gov has a lot of market solutions they haven't used but that can be activated and negotiated in record time.
edit: just to add their increased car exports are to russia, which is not that good of a consumer market with everything going on there, but it could teach them a lesson on how to corner non western markets. the complexity of the global economy favours the chinese at this point in time. they have more options than the western world.
China has been dangling their consumer market to Western companies for the last 20 years as a way to encourage investment. It hasn’t turned out well for them and many companies are leaving China. Suddenly reopening already “open markets” is not something the West is going to buy. You only get to pull that trick once.
The Demographics in China are also terrible. They are no longer the most populous nation on Earth. They are also the fastest aging due to the effects of the 1 child policy. The problem today isn’t that they aren’t running out of babies, they did that 20years ago. The problem is they are running out of 20 something’s to replace the older generations.
Add this to the issues with debt and the property market implosion and I don’t see China making it through the 2030s without some kind of fundamental government change.
https://en.wikipedia.org/wiki/Demographics_of_China
oh we'll buy it. we'll buy it because we are desperate for good consumer markets and china is that. also demographics is way worse in the west.
see this post about raising the retirement age to 71 in the uk. https://slrpnk.net/post/6418235
No. China has a fertility rate of 1.2 right now. That's worse than the West. EU sits at 1.53, USA 1.64. What's worse is that this rate has been low for a very long time due to Mao's One Child Policy.
yeah but our demographics is helped by immigration theirs isn't. they still have that window open to use. we don't.
They won't use it. China is going full-on ethnonationalist right now and is considerably less open to immigration than even in the past.
Exactly. China is extremely unfriendly to immigrants.
being a autocratic state, the party will enact whatever policies it deems necessary. see the one child policy for an example. state propaganda will do what is needed. in fact, a huge class of people without citizenship, some class to be opressed, could even be a boon to maintain the party in power.
like i said before, china has options. the west doesn't. and because china has options they can maneuver better the chaotic future that awaits all of us.
You are operating under the assumption that the party is rational. The grotesquely inept reaction to COVID-19 however has shown that it's anything but. Not to mention, even if the state suddenly decides to reverse decades of Han-supremacy policies, which is extremely unlikely, this does not mean that immigrants will suddenly flock into China in anywhere close to sufficient numbers. I doubt this is even possible, given how huge China still is. Where are these people supposed to come from?
indeed you are correct. i'm giving the party way too much credit. but i do that for every gov in power.
mostly bordering countries, just like the us. laos, cambodia, vietnam would be the origins of said immigrants.
Uh... no. If you pay attention to history, debt can and is wiped away without repercussion.
Debt is more of a threat, than anything else. If China fails to pay their debts, does the world just stop doing business with China?
The reason why there's so much unpaid debt is because the ruling class has convinced workers to sell themselves out. That's all. It doesn't actually need to be paid just like college loans. The world would in fact be a better place if it wasn't paid. The only people who get screwed are investors with more money than you.
Sure, to some of that - but China's real estate market is simply vast, at one estimate over 50 trillion dollars' worth - and individual wealth in China is heavily tied to RE. If that bubble pops, it's not just the investors who will be up in arms.
Can you provide some examples where debt was waived away without repercussions?