China’s economy is hurting and a trade deal can’t come a moment too soon for Beijing

SCMP ^ | 3 Apr, 2019 | Cary Huang

[Rabin]

The trade row halved China’s industrial profit growth, from 21 per cent in 2017 to 10.3 per cent in 2018. Some sectors were hit harder than others. Automobile industry profit fell 42 per cent in the first two months of the year, as vehicle sales dropped for eight straight months up to February.

[Rabin]

Deal or no deal, the ongoing US-China trade war has already taken its toll on the Chinese economy.

[dp0622]

Shh!!

Don’t tell anyone.

It’s supposed to be hurting us more.

[PGR88]

China is stalling for time.

The real changes that need to be made are structural changes to China’s governance and economic planning - such changes would greatly change the Communist Party’s ability to centrally-plan its economy, and the CCP doesn’t want to do it.

They are hoping an economic and stock-market downturn will force Trump into a weak agreement for political considerations.

[SunkenCiv]

Thanks Rabin.

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[granada]

China government has abandoned the old fashioned cental-planned economy model for decades.

[granada]

China government has abandoned the old fashioned central-planned economy model for decades.

[PGR88]

China government has abandoned the old fashioned central-planned economy model for decades.

That is incorrect. Yes, China no longer has rationed food or gasoline like under Mao, but the government has indirect control and manipulation of every single sector of the economy. The more "strategic" it is, the more likely it will be a state-run monopoly.

[Svartalfiar]

China is stalling for time.

Yup, but this time is different. Chinese culture is used to looking at things generations ahead, but this time it needs to be fixed much sooner than that. If this goes on, there's gonna be a major revolt in China and that could have terrible consequences for the parties in charge right now. It's not something they can look at decades away, it's the here and now (in a couple years)...