U.S. companies see record-low profits in China amid geopolitical tensions and slow growth, report says

Xi's efforts to demonize all outsiders has worked. No use in staying there. Saw that Honda is firing lots of Chinese workers in their facilities there due to lack of sales. China's economy is faltering thanks to Xi's poor economic planning. Rather than getting the Chinese economy steaming post-COVID, he decided that managers needed to read some new drivel he'd written and was selling in a book. https://www.asianews.it/news-en/Guangxi:-the-%27little-red-books%27-are-back,-but-with-Xi-Jinping%27s-words-55683.html

China: Here's a heavy rock for you.

USA: Thank you. Oh look, there's my foot.

TheFu:

Companies like Honda and even Tesla are failing because they are not innovating, or are a rip-off. The Chinese economy is doing fine. Outperforming all western economies, and yet it's China which is supposed to be collapsing? Ain't gonna happen. Sorry. But not sorry.

@Pukey2

China's economy is not collapsing. However, everyone, including the CCP itself, knows that things are not as rosy as before the pandamic.

Record high youth unemployment, oversupply of real estates, house prices falling etc.

Do you think if the West is struggling, China, who exports billions of dollars of goods to the West, has no effect? The Chinese used to think that their domestic market is huge enough that they did not need the West. Goods time does not last forever.

Companies like Honda and even Tesla are failing because they are not innovating

Car manufacturers are struggling to find first time buyers in China. Many of their sales are people trading in their older models for a new one. No matter how much innovation they have, when people has no money then they just cannot sell.

The title says it all. China could have a more rich and powerful economy but they care more about being threatening and controlling

Chinese consumers are not going to spend hard earned money on companies from a country that only offers threats, increased sanctions and tariffs that's for sure.

This is a good thing as the US should never have been coupled to this monster in the first place.

Took them long enough - it's about time to no longer depend on China

Invest in domestic and other growing economies

The European Chamber’s report found that for some European companies, the risks of investing in China were beginning to outweigh the returns.

While just over half of U.S. companies expect their revenue to increase over last year, only 37% are expecting growth in China to outpace global growth in the coming three to five years.

A record high of 25% of companies polled cut investment in China in 2023, AmCham’s report found, largely driven by concerns over China’s slowing growth.

China is also grappling with a slowing domestic economy, with lackluster consumer demand and deflationary pressures persisting even post-COVID.

While they're still expecting growth in China, their growth in China is lower than their growth at the rest of the world. Due to China's slowing growth, there the rewards ain't worth the risks no more

The regular Chinese people are struggling - they don't have money to spend anymore. Used to be, their "social security" was their savings they put into real estate - but not now with their real estate industry in big trouble

China's economy is faltering thanks to Xi's poor economic planning.

You post things here we can easily check. Look up the data. It’s easy like looking up the temperature or weather. If it’s 33 degrees in Tokyo, why do you post its 23 degrees?

China’s trade surplus in Aug was $90 billion usd. The US is probably a $70 billion deficit.

Prices are deflationary because China they’re getting oil and commodities at much lower prices.

China’s economy is faltering at 5% growth.

Due to China's slowing growth, there the rewards ain't worth the risks no more

Do you remember RCA? How about Zenith? This is sadly the direction some US companies are heading.

They throw their workers under the bus by outsourcing, make some profits for a few years, become complacent and lose their market share due to the lack of innovations.

The regular Chinese people are struggling - they don't have money to spend anymore. 

Even if we decide to spend our savings, we wouldn’t necessarily buy American. iPhone 16 maybe because it’s a novelty but there is definitely a buy China trend, especially after tariffs were placed by the U.S.

The situation is quite good recently. Before 2022, China was buying oil at $92 a barrel. The world pays around $75 a barrel. We get a nice discount and pay less than $60 a barrel thanks to the U.S. sanctions on Russian oil.

Used to be, their "social security" was their savings they put into real estate - but not now with their real estate industry in big trouble

No, this is actually good. Chinese love good deals. Housing prices have been reduced from 5% to 15%. Affordable prices for homes is a plus. How are your millennials doing?

Consumption has not picked up but manufacturing is doing very well thanks to Russia or shall I say thanks to US policies against Russia.

How are your millennials doing?

They have jobs, unlike millennials in China.

https://www.reuters.com/world/china/rotten-tail-kids-chinas-rising-youth-unemployment-breeds-new-working-class-2024-08-21/

16-24 yr old unemployment rates in China are over 20%

Rising unemployment in China is pushing millions of college graduates into a tough bargain, with some forced to accept low-paying work or even subsist on their parents' pensions, a plight that has created a new working class of "rotten-tail kids".

The phrase has become a social media buzzword this year, drawing parallels to the catchword "rotten-tail buildings" for the tens of millions of unfinished homes that have plagued China's economy since 2021.

All the Chinese who invested in real estate BEFORE the collapse have lost 30-50% of their investment and still don't have a new property to live in because they've been paying the mortgage before building was complete. That's just crazy.

If you are unemployed, hard to buy anything but food, assuming you can sponge off your parents.

In the US, for the same age group, unemployment is 6.9%, which is still high, but 3x less than China.

Additionally, the CCP isn't exactly known for publishing truthful numbers, so the 20% is probably low.

Both are from July 2024. August numbers should be available in a few more weeks.

quercetumSep. 13 11:23 pm JST

China’s economy is faltering at 5% growth.

You're not going to catch the US at that rate before China turns into an old folks home.

No, this is actually good. Chinese love good deals. Housing prices have been reduced from 5% to 15%. Affordable prices for homes is a plus.

Laughable nonsense. It has put existing owners under water on their mortgages, often for homes that are not even built. There have been homeowner revolts at some developments when the builders lowered prices, causing the value of purchased units to fall.

https://www.msn.com/en-us/money/realestate/china-s-property-developers-cut-prices-and-homeowners-are-resisting/ar-AA1jbC2m

China’s trade surplus in Aug was $90 billion usd. The US is probably a $70 billion deficit.

Trade surplus/deficit doesn't mean much to the US economy that doesn't rely on exports (the US economy rely much more on domestic spending)

Do ya know the last time the US had record trade surpluses? 2008-09

Do ya know what's occurring those years? The US was in the midst of The Great Recession

Their economy was in the crapper while they were having record trade surpluses!