EconAir

  New Chinese Nuclear Power Plant   Development of new technology is the key strategy for domestic economic growth and increasing exports. China leads the world in the production of EVs, batteries, solar panels, other renewable energy technologies, rare earth metals, robotics and automated production,  and  many other areas. They see global competition with the United States as much as a geoeconomic and technological struggle as a geopolitical competition.   While exports continue to be a part of China's development and growth strategy, two other past strategies are less important now. Domestic investment in housing and construction was an important driver of growth in the past. Housing construction has fallen. Now, digital services generates more revenue. Another past driver, foreign investment in China, has turned negative. In addition, exports to the United States has fallen from 22% of total exports in 2017 to 10% in 2024.  Chinese exports to the rest o...

                                            Chinese (BYD) Dancing Car Video link in text This is a case study of one country’s relationship with private companies in a major industry.   The central government has made the production of EVs a national priority with massive subsidies. The provincial, county, and local governments compete to attract an EV assembly plant. All levels of government entice new companies with a wide range of incentives and subsidies. The result is that in a short period of time about 100 new plants have been built; a few new ones are planned. The industry may have a total capacity of around 25-30 million cars.    Production was 12.4 million cars in 2024 and 16.5 million in 2025. Growth rates in the future will probably be lowered than in the past; exports will account for more of the growth.   This is a common pat...

The Wall Street Journal recently published an article on how China has  stopped publishing important economic statistics. The article also implies that some economic statistics are manipulated.  Getting reliable figures has always been a problem. Years ago I read a thorough analysis of Chinese figures that indicated China was overestimating its real GDP growth rate by 2% a year. I still use that correction. In recent years, it may be even larger. If 2% is a reasonable correction, it means that China's real economic growth rates in 2024 and 2025 were around 3%, not the reported 5%. Many estimates come from private or non-government sources, as illustrated in this article. Some numbers have been almost impossible to get. Much of China's macro economy occurs and is reported at the provincial and local level. Local officials have always fudged the figures since their careers depend on their figures being equal to or greater than the quotas and financial goals given to them by...

FIND POSTS BY CATEGORY The Beginning of the Industrial Revolution The theme of the following four sections of the blog is that innovation, not price competition, is the basis for understanding economic growth, competition, and analysis. Basic Concepts and Theory Market Behavior and Structure Market Dynamics and Information:  How Markets Work Economic Theory and Markets Corporate Strategies There is beginning a historic change in future populations and their demographics. This will interact with other variables and have a serious, maybe profound, effect on future economic growth. Demographics and Economics China Geopolitics and the Global Economy American Economic History Management The world seems to be in the midst of radical political and social change. Where are we going? Can studying past periods and countries facing disrupting change help us navigate our times? Maybe. History American History World War I:  The Beginning of the 20th Century The Roman Republic and Amer...