EU Member States Export Performance, China Imports of Dutch Photolithography, Obscure Jargon and More
Issue 136, Wednesday 3rd January 2024
Enjoy the first SOAPBOX of the year, this time exceptionally on a Wednesday.
Happy new year, folks!
EU Member States Export Performance
China's E-Car Exports to Surpass $35 Billion in 2023
According to China Customs, 40% of exports by value are targeted at the EU, while only 1% is destined for the U.S.
FWIW we struggle to match China's reported exports to the EU with the EU's own EUROSTAT import data for this category
See, for example
or, if you prefer a different view with same raw data
China Imports of Dutch Photolithography Machinery Soar by 153% in 2023
The staggering increase in imports starkly reflects China's apprehension about staying on par with the West in advanced semiconductors before the looming impact of restrictions taking effect on January 1, 2024
The 80% increase in value per unit reveals China's urgent need to access top-of-the-line semiconductor machinery
In 2023, photolithography machinery was confirmed as the top export from the Netherlands to China.
For the Second Month in a Row, Russia Not in the Top-15 RMB Offshore Economies
China´s Monthly Exports to Russia since Invasion of Ukraine
We believe this stems from the purported unlimited friendship declared in a written statement following the Xi and Putin meeting in Beijing in February 2022, just a few days before Russia initiated its outrageous invasion of Ukraine.
Instead of joining the sanctions imposed by the EU and U.S., China boosted its exports of cars, excavators, and trucks, reaching billions in sales to Russia when it had essentially exported nothing in these categories prior to the invasion.
EU Imports of Graphite From China to Drop Nearly 50% in 2023
Since December 1, 2023, China requires special permits for exporting various graphite materials
Houthi Attacks Make the Shanghai Freight Index Soar 22% in One Week
Shippers accusing carriers of price gouging
Obscure Jargon Leaves Messages Unintelligible
One problem hindering increased confidence in China's economy is that while the U.S. Fed clearly signals its intentions regarding interest rates, the jargon ((先立后破?) emanating from China's economic conference is as abstruse as Joyce's tangents in 'Ulysses.' They seem immersed in their own vibe.
Welfare state? It's neither here nor expected
The Chinese are working, on average, 2% more hours a week. Coupled with sluggish consumption (by Chinese standards) and a lack of crystal-clear figures on unemployment, the foreseeable 5% GDP growth in 2023 seems to confirm it's simply an old recipe:
an export-led economy, while maintaining the supply side at full throttle
A government concerned with unemployment keeps the supply side well-fed by subsidies, risking overcapacity. It appears to place trust in a sort of belief, the existence of an inexorable demand elsewhere, whether from advanced countries, the global south, or even Mars!
Total Factor of Productivity Now a Core Concept in China
According to the news, the recently held China's economic conference
takes the Total Factor Productivity or TFP as a core concept
It´s about time, because since 2014, the TFP in China has been going down the hill as per FRED data
China's Coal Output and Imports Reach All-Time High in 2023
China's coal output reaches a staggering figure of 13 million tons a day. To put this into perspective, imagine a typical two-axle lorry with a maximum load of 18 tons. China's coal mining pace is equivalent to about 8 of these trucks being filled every second. To calculate the total coal needs of China, you would need to add one more truck every second, reaching up to 9 to account for the additional coal imports.
China's Sole Interest in Zambia Lies in Copper
For over a decade, Zambia has functioned solely as an offshore copper production site for China.
In September 2023, Chinese state-owned CNMC, specialized in non-ferrous metals, announced a plan to invest $1.3 billion in Zambia. This country struggles with its debt, and, as Tom Hancock from Bloomberg report
the standoff between Beijing and global bond investors over Zambian debt is dampening the African nation’s efforts to emerge from default.
Brazil Seizes a Whopping 40% Market Share in China's Corn Imports in Year One
China's Contracted Projects Abroad
That's all folks, see you next week!
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