“Recently, many experts in mainland China believe that the mainland is leading the rise in prices and allowing the United States to use high-priced raw materials in expanding infrastructure. Inflation will drive the U.S. economy into a dead end and kill the U.S. economy.” But Xie Jinhe, chairman of Caixin Media, said In the face of rising prices, the mainland has won several consecutive gold medals, including prohibiting arbitrary price hikes or hoarding for profit. It seems that China’s pressure on inflation is much greater than that of the United States.
Xie Jinhe posted on Facebook that the United States announced the latest data. In April, personal consumption expenditure increased by 0.6% month-on-month and 3.6% year-on-year, while the core PCE price index increased by 0.6% month-on-month and 3.1% year-on-year, which has exceeded the inflation target. The upper limit of 2% means that the US stocks may fall due to the negative impact, but the major indexes did not expect to rise.
Facing this phenomenon of rising inflation, the economic guru Kluman said it was not a problem, like a car slipping on the highway for a while, he thought it was only a short-term phenomenon. And Bharat Ramamuati, deputy director of the White House Council of Economic Advisers, also jumped out and said: Rising inflation is a good thing, reflecting that economic growth is accelerating and the US economy is moving towards normalization.
Xie Jinhe said that in contrast, China is facing rising prices and has won several consecutive gold medals, restricting various prices from arbitrarily driving up or hoarding for profit. Five ministries from Li Keqiang to the State-owned Assets Supervision and Administration Commission and the Ministry of Industry and Information Technology have fully attacked and managed prices. Li Keqiang said: The rising prices of raw materials have put a lot of pressure on the operation of production undertakings, and the whole country must work together to resist imported inflation. Judging from this phenomenon, China seems to face much greater pressure on inflation than the United States.
He mentioned that in the past six months, many economists in China have said that China has guided price increases and allowed the United States to use high-priced raw materials in expanding infrastructure. Inflation will drive the U.S. economy into a dead end and kill the U.S. economy. if so? The United States should be in desperation now. Why is China more nervous than the United States?
“Goldman Sachs recently said that China has lost the right to price goods. Goldman Sachs believes that China’s benefits from the comparative benefits of low-cost labor and global trade are no longer what it used to be, and the cost advantage has weakened. This also means that price elasticity has weakened and upstream raw material prices have risen. , The downstream is unable to pass on costs, and the most representative one is China’s paper industry.”
Xie Jinhe gave an example. The stock prices of China’s top 10 listed paper companies are far from the high point. Paper prices have soared. China’s paper mills have closed more and more. What’s the problem? Since the beginning of this year, the price of paper in China has risen in waves. First, paper towels have risen three times a month, cultural paper has risen to 200 yuan per ton, and white paper cards have risen to 1,000 yuan per ton. People have begun to joke about paper. Everyone said that Luoyang paper was expensive in the past. , Now the price of paper is almost equal to the price of pork!
He finally emphasized that since March, Chinese paper companies have announced shutdowns for maintenance, and some have directly closed their doors. The reason is that the price of pulp has risen, and downstream players cannot afford it. This phenomenon is like a surge in flour, bakery closures, and downstream can’t afford it. Inflation. This problem is not only about the industry, it is the same in all walks of life. Li Keqiang’s 100,000 fires are pressing prices, and the core problem is here!
(Zhongshi News Network)