Comments on: The China files, Part 2: Brave new economic model http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: JoeAlpha100 http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-8972 Wed, 07 Mar 2012 02:53:58 +0000 http://blogs.reuters.com/columns/?p=5939#comment-8972 Let me add something here:

The significant increasement of nominal income was observed in some major cities (not only Beijing) and the country-side areas nearby. It is not everywhere of China, but we could still see the trend.

If we deduct the inflation, the real term income is still a significant increasing. (Chinese official inflation rate indicator CPI, which is about 4-6% in most time of last year, doesn’t include the real estate prices.)

The retired also got pension payments from the government increased in last year. (This group is complex: some of them receive only from government pension programs, some also have a company pension program, while some younger generation holds commercial annuity which is not matured yet.)

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By: JoeAlpha100 http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-8971 Wed, 07 Mar 2012 02:30:36 +0000 http://blogs.reuters.com/columns/?p=5939#comment-8971 @Jzyehoshua:

I highly doubt about your comment:

+++ ” … Furthermore, China needs its minimum wage low to maintain a devalued, impotent lower caste who cannot fight back against its tyranny, just as it needs its strict controls over the media. ” +++

Based on what I have eye-witnessed and experienced by myself in China, the truth is really not as what you have described.

My recent trip to China (Beijing) was last month (Feb 2012). Compared it with my last trip there in 2009, I amazingly learnt from my friends that:

1- The minimum wage standard (stipulated by the government) is increased by 57% in 2012 compared with in 2009; (compared with the number in China, the Min. Wage at many places in N.A. have been kept unchanged for quite a few years.)

2- Those above-average-salary guys, such as managers in companies, IT engineers, bankers, got an at least 50% increase in compensation compared with 3 years ago;

3- Low-income groups, such as courier-man, restaurant waiters, baby-sitters … got an wage increase well above 50%, some even doubled; construction workers got an increase of 30-50%;

More interestingly:

1- Some of my businessmen friends complaints to me about the rising labour cost, added that “the local district government officials held seminars for the enterprise owners to educate them about the social meaning and tax benefits of INCREASE THE INCOME OF THEIR EMPLOYEES !”;

2- In the sub-urban of Beijing, the local government leaders publicly call on the farmers to “try all means to leverage the central government’s policies to enhance the income … “.

From above numbers and facts we could see that both the minimum and average salaries (at least nominal salary) there in China has recorded a significant growth in the past 3 years. As for before 2009, we saw the same trend but I don’t have exact numbers readily in my hand now.

Research analysts should base their conclusion on the facts, numbers and logic rather than on air, and be responsible for the clients and audiences.

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By: NewGlobes http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-7748 Sat, 11 Jun 2011 05:36:56 +0000 http://blogs.reuters.com/columns/?p=5939#comment-7748 Have to say they are good pointes;

Meanwhile,just want to mention that both economic theory and history realities shows, when a major economy is in trouble, the main course and main improving directions can not be outside factors.

Like when China facing risks, they can not says this is not caused by the actually very powerful force of the printing of green notes, which certainlly have cause global inflation and exchange rated unstable, and hurt all major economies and peoples wealth outside of America.

So does when America Economy melt down due to accumulated factors in many main elements of the economy, it’s not a good balanced view to say it’s because the other nations done, and that in order to improve the situation, the main changes need to be made in other nations economies instead of looking at way to change the infrustucture of America’s own.

After all, America’s GDP is about 25% of globles and it’s influential to other economies are much larger in general than vice verse.

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By: Jzyehoshua http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-7395 Wed, 11 May 2011 18:30:28 +0000 http://blogs.reuters.com/columns/?p=5939#comment-7395 Kudos to Dixon for recognizing the possibility of a wage hike in China, as well as its effects on competitiveness. I think what Dixon is somewhat slyly pointing to with both this and his second point (exchange rate appreciation), is that these are keys to how China has taken advantage of the U.S. and other countries, and it would not wish to change them for fear of undermining what has resulted in its vast power-grab up to this point.

Ultimately, changing both of these is unlikely since China seems to prefer its underhanded sniping at other country’s economies so long as they refuse to stand up for themselves, and going off of the assumption that they will remain stupid and unconfrontational for as long as possible.

Furthermore, China needs its minimum wage low to maintain a devalued, impotent lower caste who cannot fight back against its tyranny, just as it needs its strict controls over the media. While it may make a few cosmetic changes like increased public housing to minimize public dissent, do not expect it to do anything that would endanger its grip of control on the people.

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By: Radis http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-7371 Tue, 10 May 2011 22:50:20 +0000 http://blogs.reuters.com/columns/?p=5939#comment-7371 I welcome our new Overlords.

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By: teu http://blogs.reuters.com/breakingviews/2011/05/10/the-china-files-part-2-brave-new-economic-model/comment-page-1/#comment-7366 Tue, 10 May 2011 20:38:37 +0000 http://blogs.reuters.com/columns/?p=5939#comment-7366 some very interesting points in this article, bravo Hugo

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