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Fojar38
Sep 2, 2011


Sorry I meant to say I hope that the police use maximum force and kill or maim a bunch of innocent people, thus paving a way for a proletarian uprising and socialist utopia


also here's a stupid take
---------------------------->

Accretionist posted:

And while this is being presented as a serious proposal, should it be taken seriously?

I wouldn't, particularly since it offers no tangible benefit over flying. At first I thought that it was supposed to be a prestige project but even that wouldn't really be true if this thing was built unless the entire thing was built by Chinese laborers under the control of the Chinese government and good luck getting anyone to agree to that.

I'd lump it in with that super-subway Elon Musk idea that was floating around the internet a few months ago. A neat idea but it'll remain an idea.

Adventure Pigeon posted:

They need huge infrastructure projects to keep their GDP flying high, and this would be a hell of a lot more useful to them economically and politically than another empty city.

"Rest of the world please help us keep an unsustainably high rate of GDP growth in order to keep the CCP in power by letting us build useless crap that nobody will use in your countries too."

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Nintendo Kid
Aug 4, 2011

by Smythe
And having the Bering Strait rail crossing be to China solves the typical issue with proposed Bering Strait connections - typical ones are just links to Russia, and Russia uses a different track gauge, meaning lengthy waits on one side or the other changing over to other gauges before things can go on their way. Meanwhile a China-funded route would safely stay standard gauge all the way through.

Fojar38 posted:

I wouldn't, particularly since it offers no tangible benefit over flying.

Freight from Chinese factories arriving in the Americas faster ships, but still significantly cheaper than air freight isn't exactly insignificant. Sure they talk up the passenger stuff, but fast freight would be pretty major.

This will never happen without China dumping masses of money into building the thing, but once it was in place it would be pretty heavily used.

Nintendo Kid fucked around with this message at 22:39 on May 11, 2014

Accretionist
Nov 7, 2012
I BELIEVE IN STUPID CONSPIRACY THEORIES
I'm unfamiliar with rail infrastructure. Should I interpret expanded high-speed rail capacity/networks as implying increased shipping capacity, too? Could I interpret this as reflecting increasing economic integration across central Asia?

Also, if the Arctic Circle is going to be as big a deal as I've seen suggested, could this project be thought of as less connecting china to the world than connecting Arctic-adjacent Sino-Russian rail infrastructure to the world?

Accretionist fucked around with this message at 22:45 on May 11, 2014

Fojar38
Sep 2, 2011


Sorry I meant to say I hope that the police use maximum force and kill or maim a bunch of innocent people, thus paving a way for a proletarian uprising and socialist utopia


also here's a stupid take
---------------------------->

Install Windows posted:

Freight from Chinese factories arriving in the Americas faster ships, but still significantly cheaper than air freight isn't exactly insignificant. Sure they talk up the passenger stuff, but fast freight would be pretty major.

This will never happen without China dumping masses of money into building the thing, but once it was in place it would be pretty heavily used.

True, I didn't consider freight. That still seems to presume that China will have a manufacturing-based economy forever though, and I can't see anyone allowing China exclusive control over such a massive project, particularly one that crosses multiple national borders. That of course presents a problem, because if other nations get heavily involved it ceases to become a "Chinese rail" and hence lowers the prestige associated with building it.

etalian
Mar 20, 2006

Accretionist posted:

I'm unfamiliar with rail infrastructure. Should I interpret expanded high-speed rail capacity/networks as implying increased shipping capacity, too? Could I interpret this as reflecting increasing economic integration across central Asia?

Also, if the Arctic Circle is going to be as big a deal as I've seen suggested, could this project be thought of as less connecting china to the world than connecting Arctic-adjacent Sino-Russian rail infrastructure to the world?

It's more because China is doing insane amount of infrastructure upgrade to avoid a mass of angry workers.

Fojar38
Sep 2, 2011


Sorry I meant to say I hope that the police use maximum force and kill or maim a bunch of innocent people, thus paving a way for a proletarian uprising and socialist utopia


also here's a stupid take
---------------------------->
I also just noticed that judging by its lack of mention in the article the ideal Chinese international rail system is one that completely bypasses Japan.

Nintendo Kid
Aug 4, 2011

by Smythe
There would be much more significant issues building rail from China to Japan than across the Bering Strait. It would be relatively short between South Korea and Japan, but you'd need to go through North Korea or engage in truly massive crossings from China to South Korea across the Yellow Sea.

You'd need about 240 miles of sea crossing for the shortest route between China and South Korea that doesn't enter North Korean territory, and then another 50 miles of sea crossing between South Korea and Japan. The Bering Sea crossing is "only" 120 miles total of sea crossing.

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.

Accretionist posted:

And while this is being presented as a serious proposal, should it be taken seriously?

No.

I'm sure it'll be in Popular Mechanic though.

Bip Roberts
Mar 29, 2005

FrozenVent posted:

No.

I'm sure it'll be in Popular Mechanic though.

Not to mention Lyndon Larouche.

computer parts
Nov 18, 2010

PLEASE CLAP
Note that while rail transport will be faster than ships the vast majority of freight will still go by ships because they're really loving big.

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.

computer parts posted:

Note that while rail transport will be faster than ships the vast majority of freight will still go by ships because they're really loving big.

Bingo.

An 8000 TEU ship can carry 8000 twenty feet containers, or 4000 forty feet containers. Realistically, it's going to be in the middle if it's fully loaded; and it can haul all that poo poo at 21 knots, or 24 MPH. That's a lotsa ton-miles per day.

Your train is going to carry, realistically, 2 forty feet containers per car. That's 2000 cars to carry the equivalent of a single container ship; now those cars have to go up North to Russia, across to Alaska, down the coast through the Rockies... And you have to recover the cost of all the infrastructure that implies, which is going to be significant to say the least. Further, you have to have Russia, Canada and the US on board. All the time. Borders are really easy to close.

Accretionist posted:

Also, if the Arctic Circle is going to be as big a deal as I've seen suggested, could this project be thought of as less connecting china to the world than connecting Arctic-adjacent Sino-Russian rail infrastructure to the world?

The Arctic circle is not going to be as big a deal as you've heard; it's entirely a bunch of consultants and policy science people circlejerking via interposed articles.

The Arctic is an ocean; there's resources to be pulled out of there - assuming their price justifies the technical challenges and the environmental headaches - and they're going to come out by ship to wherever they're going to be processed. Once they're processed, they'll just piggy back onto the existing transportation network.

If you enjoy watching overschooled bulllshitters eat their socks, watch your favorite "THE ARCTIC IS THE WAY OF THE FUTURE!" and "THE NORTH WEST PASSAGE IS GOING TO BE THE WORLD'S HIGHWAY!" writer this summer. They'll probably be pretty quiet, because a cold winter and a slow spring... The ice cover up there is going to be far from 2012.

I was gonna segue into a rant about how the North West and North East passages won't be economically viable sea routes any time soon, but that's getting off topic and I think the issue's been covered well enough in the technical press.

Nintendo Kid
Aug 4, 2011

by Smythe

FrozenVent posted:

Bingo.

An 8000 TEU ship can carry 8000 twenty feet containers, or 4000 forty feet containers. Realistically, it's going to be in the middle if it's fully loaded; and it can haul all that poo poo at 21 knots, or 24 MPH. That's a lotsa ton-miles per day.

Your train is going to carry, realistically, 2 forty feet containers per car. That's 2000 cars to carry the equivalent of a single container ship; now those cars have to go up North to Russia, across to Alaska, down the coast through the Rockies... And you have to recover the cost of all the infrastructure that implies, which is going to be significant to say the least. Further, you have to have Russia, Canada and the US on board. All the time. Borders are really easy to close.

Yeah but air cargo is even worse for price and ability to carry but it still gets used. Freight rail would be a middle ground in terms of price and speed. And China doesn't really have to actually recover the costs of building it, it's the kind of out-there prestige project where they're just building something to employ people if it ever actually happened.

Also, acting like Canada and the US are ever going to really disagree is a bit silly. And if China actually built the thing Russia would have a major opening to sell the fuel or electricity to run trains on the thousands of miles through its territory, a sort of thing where Russia would get too much out of it to do more than threaten closing it when they get pissy.

Bip Roberts
Mar 29, 2005
Is it actually that much faster? Freight trains don't run that much faster than cargo ships and over a much longer distance.

caberham
Mar 18, 2009

by Smythe
Grimey Drawer
Isn't most of China's high speed rail network mostly for passengers? Do they actually slap freight on it at night?

Throatwarbler
Nov 17, 2008

by vyelkin

caberham posted:

Isn't most of China's high speed rail network mostly for passengers? Do they actually slap freight on it at night?

Putting passengers on HSR frees up the regular rail network for more freight. Supposing that people actually take HSR.

Nintendo Kid
Aug 4, 2011

by Smythe

Dusseldorf posted:

Is it actually that much faster? Freight trains don't run that much faster than cargo ships and over a much longer distance.

Freight trains run pretty fast when you have no stops to make for hundreds of miles and good braking systems. Freight rail runs at 60-70 mph in many places in the US thanks to that.

Edit: and for instance, a route from Shanghai to Seattle by rail through their plan would be about 6000 miles. By sea, it's about 5600 miles. If you run the train at 50 mph that's 120 hours versus about 220 hours for a container ship trundling along at 23 knots. And to say nothing of the common trend of freighters slowing down further because you can recoup major fuel savings.

caberham posted:

Isn't most of China's high speed rail network mostly for passengers? Do they actually slap freight on it at night?

What China's proposing to build is not the same as their current network at all. It's a pie-in-the-sky program and if it was just for passenger rail it'd be sitting idle most of the time.

Nintendo Kid fucked around with this message at 01:28 on May 12, 2014

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.

Install Windows posted:

Yeah but air cargo is even worse for price and ability to carry but it still gets used.

Air cargo gets used for high value or perishable cargo. Light stuff, small stuff, really expensive stuff - We're talking either stuff that gets Fedexed or time-critical spare parts and race horses, that kind of stuff. Air freight is a tiny rear end part of the total cargo carried worldwide, and it's a pretty niche case - Stuff that needs to get there in days or it's going to be more expensive than shipping it by plane.

The middle-of-the-way case for rail isn't there. Rail is a *shitload* more expensive, because it's not as fuel-efficient as shipping, and you have to pay for the tracks. Or in this case, the ridiculous trans-pacific tunnel, that needs to be built and maintained.

A Shanghai to LA container voyage by sea is ballpark 11 days. Obviously I don't have the rail distances and speed for the same trip, and I assume the US logistic hub would shift to the Pacific Northwest in that situation (There's an expense) but say it's a 7 days trip. I don't think that's too ridiculous considering the distances invovled, and note that I'm abstracting other points of friction such as turnaround times. For a cargo of the same value, you can afford a 47% freight rate increase to shift to trains. Seems like a lot?

You're looking at $1200 per container by sea. That means train would have to come in under $1764.

As to the political aspect, I don't doubt that Canada and the US would be onboard... To an extent. You're still going to have to find easements for the tracks, quiet down the environmentalists and locals that are going to lose their poo poo (Canadians don't like trains these days), the port workers and shipping companies that are going to do everything they can to stop the whole thing...

And from a shipper's perspective, you're looking to stabilize your supply chain for years at a time. All it takes is a disagreement over locomotive exhaust emissions, or natives in BC blocking the track, and the system is disrupted - We gotta get 20 000 rail cars a day through this thing, remember?

Now of course if there's a shift to rail, the container ship capacity is going to be reduced. Shipping lines aren't going to keep ships around if they're sitting empty. So now XYZ Logistics has a bunch of containers sitting in Tsingtao that gotta get to LA/LB, there's been a landslide in Alaska and it's going to be a week before the trains can go through again (And then a week before the backlog clears). So now they have to hustle to get space on container ships, which they have to pay a premium for because everyone's trying to do the same thing...

Or they could have just avoided the whole headache by booking on container ships in the first place. The good thing about the marine industry is that if a ship fucks up, you're down a ship. If a train fucks up, you're down a track. Took what, ten months to get the Lac-Megantic spur back in operation? Predictability is extremely valuable in logistics.

Dusseldorf posted:

Is it actually that much faster? Freight trains don't run that much faster than cargo ships and over a much longer distance.

Freight trains run at 60 MPH in flat, open area; ships run at 25 MPH or so. If you're looking at ton-miles per day, though, the ship probably wins. I can't speak as to handling and turnaround times, though; I'm not familiar enough with rail operations.

caberham posted:

Isn't most of China's high speed rail network mostly for passengers? Do they actually slap freight on it at night?

The time-value of freight isn't enough to justify using HSR; if you have a cargo that's high value enough you're going to want the added flexibility of trucks or you'll use a train. Plus passengers are self-loading; you'd lose a lot of the advantage on turnaround.

No sense having the cargo travel at 500 MPH if it's going to sit in a warehouse for eight hours first.

FrozenVent fucked around with this message at 01:26 on May 12, 2014

caberham
Mar 18, 2009

by Smythe
Grimey Drawer

FrozenVent posted:

The time-value of freight isn't enough to justify using HSR; if you have a cargo that's high value enough you're going to want the added flexibility of trucks or you'll use a train. Plus passengers are self-loading; you'd lose a lot of the advantage on turnaround.

No sense having the cargo travel at 500 MPH if it's going to sit in a warehouse for eight hours first.

That's what I figured. It's mostly container trucks and freight.

Nintendo Kid
Aug 4, 2011

by Smythe
The thing is the whole scenario already assumes China following through on its wacky plan to build a good 4000 miles of new rail and over 120 miles of undersea tunnels. It would be safe to assume that if they're going to go that far their whole prestige project thing is going to mean they're the ones worrying about paying the maintenance expenses, and unlikely to put some ridiculous charges on their new rail system to recover the costs - that'd lead right to it sitting there unused and making them look bad.

You're also not going to have them build this whole project and not have it carefully engineered to avoid as much risk of landslides or whatever breaking it as possible. You don't get to the point of constructing a 120 mile set of undersea tunnels if you're just going to have bare track sitting unprotected on either side.

Also trucks aren't really going to be a valid comparison here, there is definitely not going to be individual vehicle highways constructed instead.

Edit: Again, there is absolutely nothing practical about building it in the first place, and it doesn't make any sense to do it except as an over-the-top national bragging rights thing. But once it was in place it would be reasonably useful.

Nintendo Kid fucked around with this message at 01:42 on May 12, 2014

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.
Do you know of any track anywhere that isn't just sitting unprotected? It's what tracks do; they sit there.

At the end of the day, no matter how over-engineered it is, any rail system is dependent on the infrastructure being intact over a long linear distance. You have a break anywhere, and assuming the system is at full utilization, everything stops.

If they don't pass off the cost of the infrastructure to the customer, then they have to subsidize the ever loving poo poo out of it. I have a feeling Panama, the Marshall Island and Liberia are going to have something to say about that at the WTO, (And they'll suddenly have all sorts of resources to start poo poo over there!) amongst other concerned stakeholders.

The charge would be ridiculous because the cost of the system would be ridiculous. Sea shipping is way cheaper and more flexible (The capacity is more elastic and there's little infrastructure required), there's no way a solution involving a 120 mile undersea tunnel is going to be viable for the foreseeable future.

Nintendo Kid
Aug 4, 2011

by Smythe

FrozenVent posted:

Do you know of any track anywhere that isn't just sitting unprotected? It's what tracks do; they sit there.

At the end of the day, no matter how over-engineered it is, any rail system is dependent on the infrastructure being intact over a long linear distance. You have a break anywhere, and assuming the system is at full utilization, everything stops.

If they don't pass off the cost of the infrastructure to the customer, then they have to subsidize the ever loving poo poo out of it. I have a feeling Panama, the Marshall Island and Liberia are going to have something to say about that at the WTO, (And they'll suddenly have all sorts of resources to start poo poo over there!) amongst other concerned stakeholders.

The charge would be ridiculous because the cost of the system would be ridiculous. Sea shipping is way cheaper and more flexible (The capacity is more elastic and there's little infrastructure required), there's no way a solution involving a 120 mile undersea tunnel is going to be viable for the foreseeable future.

You must have never seen railroads through mountainous areas before to be saying that. You don't just slap some track down and wait for it to have a landslide on a running train.

Breaks are really rather infrequent. Sea ports can get shut down too. You also don't shut down an entire railroad system over one break, nor do you ever have 100% usage of the rails.

We're talking about a project that might seriously cost over a trillion dollars all told (and honestly would take decades to build). It's pretty much impossible to recover the costs associated from the traffic that would use it in any sort of short-term period, so you can bet your rear end it would effectively massively subsidize transport along it.

namaste friends
Sep 18, 2004

by Smythe
I'm confused. Are you guys suggesting that this proposed HSR is going to carry freight? There isn't an HSR in the world that carries freight. This would be revolutionary and I sure as hell wouldn't want to be on it. As well, HSR track maintenance cycles are crazy frequent compared to conventional rail.

As an example, Taiwan's High Speed Rail has major problems during typhoon season with landslides and just general debris. The track is inspected every night before it's given the ok and allowed to hurtle through at 300km/h.

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.
I was operating under the assumption that the proposed trans-pacific rail system wouldn't be HSR; if the intent was for it to be HSR, I'd like to edit my previous posts in the following manner:

FOR (All text) READ "LOL".

Homura and Sickle
Apr 21, 2013

FrozenVent posted:

I was operating under the assumption that the proposed trans-pacific rail system wouldn't be HSR; if the intent was for it to be HSR, I'd like to edit my previous posts in the following manner:

FOR (All text) READ "LOL".

Yeah the whole thing is a HSR passenger train, but don't edit your posts, they're pretty educational about transcontinental logistics.

http://www.chinadaily.com.cn/business/2014-05/08/content_17493399.htm

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.

Jagchosis posted:

Yeah the whole thing is a HSR passenger train, but don't edit your posts, they're pretty educational about transcontinental logistics.

http://www.chinadaily.com.cn/business/2014-05/08/content_17493399.htm

I for one can't wait to take a four days train voyage instead of a 12 hour plane ride.

Arglebargle III
Feb 21, 2006

This is a really stupid derail.

Rent-A-Cop
Oct 15, 2004

I posted my food for USPOL Thanksgiving!

Arglebargle III posted:

This is a really stupid derail.
That's what everyone will say when the first Chinese hypertrain ends up at the bottom of the Bering Straight.

Nintendo Kid
Aug 4, 2011

by Smythe

Cultural Imperial posted:

I'm confused. Are you guys suggesting that this proposed HSR is going to carry freight? There isn't an HSR in the world that carries freight. This would be revolutionary and I sure as hell wouldn't want to be on it. As well, HSR track maintenance cycles are crazy frequent compared to conventional rail.

As an example, Taiwan's High Speed Rail has major problems during typhoon season with landslides and just general debris. The track is inspected every night before it's given the ok and allowed to hurtle through at 300km/h.

You do understand that you can run slower trains on the same lines? Even in the fantasy world where China manages to build this minimum 6000 mile system between major Chinese cities and the lower 48, you're still not going to have hourly departures for your 2 day passenger service.

namaste friends
Sep 18, 2004

by Smythe

Install Windows posted:

You do understand that you can run slower trains on the same lines? Even in the fantasy world where China manages to build this minimum 6000 mile system between major Chinese cities and the lower 48, you're still not going to have hourly departures for your 2 day passenger service.

I'm not aware of any HSR in the world that does this but it sounds like it'd be quite an engineering feat. The next time I see my dad, I'll ask him. He used to be the director of safety and maintenance of an HSR.

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.
You'd need a second siding just for the HSR trains, or have the HSR slaloming between the freight trains.

Or you schedule your freight trains so the HSR has a clear shot through the line, but then your utilization is going to be atrocious.

Nintendo Kid
Aug 4, 2011

by Smythe

Cultural Imperial posted:

I'm not aware of any HSR in the world that does this but it sounds like it'd be quite an engineering feat. The next time I see my dad, I'll ask him. He used to be the director of safety and maintenance of an HSR.

There's also no HSR in the world that travels through at least 3000 miles or so of no population centers or regular stops or has hundred mile plus long undersea tunnels built into it.

If you were to build such a crazy big system, you'd certainly stick freight trains on because you'd not have both directions of track with full schedules from passenger services, and you'd have plenty of room in your new build to shift the freights out of the way of the high speed passenger trains if you needed to do so.

FrozenVent posted:

You'd need a second siding just for the HSR trains, or have the HSR slaloming between the freight trains.

Or you schedule your freight trains so the HSR has a clear shot through the line, but then your utilization is going to be atrocious.

It would be unconscionable to build the very long HSR system and not have plenty of places for sidings, or even just building it as 3 or 4 track all the way through.

You end up needing third track enough on short distance medium speed rail.

Nintendo Kid fucked around with this message at 05:27 on May 12, 2014

namaste friends
Sep 18, 2004

by Smythe

FrozenVent posted:

You'd need a second siding just for the HSR trains, or have the HSR slaloming between the freight trains.

Or you schedule your freight trains so the HSR has a clear shot through the line, but then your utilization is going to be atrocious.

So one of the really cool things about an HSR is that the tolerances for the sinking of a section of track are incredibly small. Building an HSR in a seismically active area is a nightmare. So much so that sections of track are built so that they can be literally jacked up if they've sunk too much. I'm no civil engineer, much less a geotech or an expert in rail transportation, but I have a feeling it'd be really expensive to engineer a rail line that can deal with multiple types of payloads.

e: maybe popular science can figure it out for us

Nintendo Kid
Aug 4, 2011

by Smythe

Cultural Imperial posted:

So one of the really cool things about an HSR is that the tolerances for the sinking of a section of track are incredibly small. Building an HSR in a seismically active area is a nightmare. So much so that sections of track are built so that they can be literally jacked up if they've sunk too much. I'm no civil engineer, much less a geotech or an expert in rail transportation, but I have a feeling it'd be really expensive to engineer a rail line that can deal with multiple types of payloads.

e: maybe popular science can figure it out for us

You don't need to do anything special to run freight. There's simply no current rail systems where freight can't just run along parallel trackage. You don't stick freight on bullet train rails because there's 3 parallel routes at hand.

Building this China to America by bering strait line on the other hand, most of the route will have absolutely no alternative path. You just build enough room in your system and it's golden for freight.

Fame Douglas
Nov 20, 2013

by Fluffdaddy

Cultural Imperial posted:

I'm not aware of any HSR in the world that does this but it sounds like it'd be quite an engineering feat. The next time I see my dad, I'll ask him. He used to be the director of safety and maintenance of an HSR.

There are plenty of HSR systems in Europe that share tracks with slower regional and freight trains. This is not a new concept. HSR rails are not fundamentally different from regular rail lines, just built to allow for higher maximum speeds.

namaste friends
Sep 18, 2004

by Smythe
http://www.ft.com/intl/cms/s/0/4f74...t#axzz31f36SKYh

quote:




China’s economy is sputtering as evidence mounts that a nationwide property bubble is on the point of bursting.
Virtually every indicator for economic growth in China turned down in April as the all-important real estate market saw sales fall 7.8 per cent in renminbi terms in the first four months from the same period a year earlier.

Investment in real estate is the single most important driver of the Chinese economy and a crucial factor in global commodity demand and pricing.

But in the first four months newly started construction projects fell 22.1 per cent compared with a year earlier, according to government figures released on Tuesday.

The sustainability of the Chinese real estate market has become a concern for policy makers everywhere as they start to worry that a property crash in the world’s second-largest economy could ripple round the globe.

The scale of China’s building boom and the country’s reliance on infrastructure investment for growth is unprecedented.
In just two years, from 2011 to 2012, China produced more cement than the US did in the entire 20th century, according to historical data from the US Geological Survey and China’s National Bureau of Statistics.

In an indication of just how exposed China’s economy is to a property downturn, Moody’s Analytics estimates that the building, sale and outfitting of apartments accounted for 23 per cent of Chinese gross domestic product last year.
That is higher than in the US, Spain or Ireland at the peaks of their housing bubbles.

Trouble in Chinese property also has implications for the financial system, in particular the shadow banking sector, which has lent huge amounts to developers and relies on highly priced land for collateral.

“Self-fulfilling expectations of falling house prices, financial difficulties among developers on the back of a highly leveraged economy with huge local government debt, and a fragile financial system with a large shadow banking sector, suggest the risks of a disorderly adjustment [in the Chinese economy] are real and rising,” said Barclays’ chief China economist, Jian Chang.

Partly as a result of slumping real estate investment, growth in China’s industrial production, a measure that correlates closely with gross domestic product, slowed marginally to 8.7 per cent from a year earlier in April.
Retail sales growth also slowed from 12.2 per cent expansion in March to 11.9 per cent in April.

In a worrying sign for western luxury brands that have become more reliant on Chinese demand in recent years, gold, silver and jewellery sales plummeted 30 per cent in April from a year earlier.

Electricity production, a closely watched proxy for economic activity in China, grew at its slowest pace in nearly a year in April, up 4.4 per cent from a year earlier, compared with 6.2 per cent growth in March.

In spite of much discussion of a “mini-stimulus” for China’s economy, Beijing has so far been reluctant to take strong actions to prop up growth.



:stare:

namaste friends
Sep 18, 2004

by Smythe
Here's another one from the FT China twitter feed:

http://www.ft.com/intl/cms/s/0/0993...t#axzz31f36SKYh

quote:

When New Century Real Estate cut its housing prices by 15 per cent two months ago, the Chinese developer, far from panicking, was in a triumphant mood. It believed the discount was a deft move to get ahead of the market and sell its unsold backlog of apartments.

Chinese property companies have reduced prices on only the rarest of occasions over the past decade, during which time average property values have more than doubled. New Century calculated that its cut – at the Mingjun residential complex in the eastern city of Hangzhou – would attract a flood of interest. It was right, at first.

The number of people viewing properties quintupled overnight, according to Luo Chengwu, an operations manager. Media from state broadcaster China Central Television to the local press covered the news – attention that New Century lavished in, trumpeting the reports on its website. “One-time only, rush to buy now!” its advertisements screamed.
Yet by the first week of May, the initial excitement had subsided. Other developers around the city of Hangzhou had also lowered their asking prices and New Century’s offer was no longer so unique.

“Yes, we attracted a lot of customers when we made the announcement. But since then, it’s just been OK, not crazy. We’ve not been able to sell everything out,” said a saleswoman in the Mingjun showroom, pointing to the dozens of homes still available in a model of the 14-tower complex.

Mingjun is located on the margins of Hangzhou in its distant suburbs, but its fate is a central concern for the Chinese economy.

For several months it has been clear that housing markets in smaller, less-developed cities were beginning to suffer downturns. However, the government and analysts long believed that bigger, wealthier cities were better insulated from the pressures.

Hangzhou has shaken that belief. Capital of Zhejiang province, it has a population of nearly 9m and is one of China’s richest cities. If its property market is in trouble, it is an ominous sign for the country as a whole.
“Not long ago, some looked at Hangzhou as a top-tier property market. Now, oversupply is apparent even there,” said Du Jinsong, an analyst with Credit Suisse, who has taken investors on tours of the city in recent months to survey its challenges.

In the first four months of the year property sales across the country fell 7.8 per cent in value terms from the same period a year earlier, according to the latest government figures, which were released on Tuesday. That has already hurt sentiment among property developers, who cut investment in new projects, pushing newly started floor space in China down by 22.1 per cent in the first four months, compared with a year earlier.

Property investment directly accounts for nearly a fifth of Chinese gross domestic product, so if bulging inventories lead to slower construction, as they should, the consequences for economic growth will be unpleasant.

Observers could be forgiven for thinking that China has been here before. The housing market briefly wobbled in 2008 and 2011, only to rebound with great vigour. But on both those occasions, the slowdowns occurred because the government had deployed a battery of tightening measures to try to rein in runaway prices. This time, it is market forces leading the way. “This downturn is almost entirely because of the oversupply,” Mr Du says.

At the current pace of home sales in Hangzhou, it will take buyers about 25 months to digest the existing supply of property in the city, according to data from China Real Estate Index System. That is well above the average 10-month inventory of recent years.

A similar pattern is playing out across China. The worst laggards are still what are often referred to as third and fourth-tier cities, which have populations of roughly 1m-3m people. Their housing inventories have climbed to more than 30 months’ worth of sales from 25 at the start of 2012, according to UBS.

The question is no longer if or when, but rather how much China’s structurally oversupplied property market will correct
- Zhang Zhiwei, Nomura

However, the headwinds are now also reaching China’s biggest cities. Housing sales in the country’s four massive metropolises – Beijing, Shanghai, Shenzhen and Guangzhou – fell 20 per cent on average in April from a month earlier, a steeper decline than in most smaller cities.

“The question is no longer if or when, but rather how much China’s structurally oversupplied property market will correct,” Zhang Zhiwei, an economist with Nomura, wrote in a note last week.

In Hangzhou, local media have reported that the municipal government wants to help developers by capping the upfront payments required to buy new land, a move that would ease their cash flow pressures. But it is also a measure that is designed to encourage them to buy more land – a critical source of fiscal revenues for the government – and therefore to build yet more homes.

In the fields next to New Century’s Mingjun complex, Mr Wu, an old man in a straw hat and rolled-up trousers, tends his corn. In spite of New Century’s struggles, he says the land that he is working is already zoned for development and it is only a matter of time before bulldozers roll in.

“The government should have limited the land for housing according to the size of the population, but they didn’t,” he said. “They have done lots of zoning. But that’s not the same as planning.”





:staredog:

namaste friends
Sep 18, 2004

by Smythe
Wow, the Chinese central bank went and told mortgage lenders to hurry up with approvals.

http://on.ft.com/1mWh9EN

quote:

Asian investors are waiting for corporate earnings, after a subdued session on Wall Street offered little direction, while China's property developers see demand after comments from the central bank. .

Tokyo's Nikkei 255: -0.4%
Hong Kong's Hang Seng: +0.2%
Hang Seng China Enterprises: +0.4%
Shanghai Composite: -0.1%
Within the modest moves, the Shanghai Stock Exchange Property Index rose 0.3 per cent, after the People's Bank of China told 15 banks to "give timely approval" to qualified buyers of property.

China policymakers are concerned that that property boom could turn to bust, leading to a downturn in the economy.

Analysts at Barclays suggest a 5 per cent decline in Chinese property investment growth could shave half a point off of China's GDP growth.

The key question on the Chinese property market is bursting or merely deflating, they wrote on Tuesday.

Self-fulfilling expectations of falling house prices, developers rising financial difficulties, on the back of a highly leveraged economy with huge local government debt, and a fragile financial system with a large shadow banking sector, suggest the risks of a disorderly adjustment are rising.
The PBoC's recent stress tests found that banks could withstand bad loans quintupling. Investors have questioned the results, but nonethelees support from the central bank could help stave off the sort of downturn envisaged in the Barclays report.

Among Wednesday's gainers are Tianjin Reality Development Group, up 4 per cent, and Poly Real Estate Group, up 2.3 per cent.

More broadly, a clearer direction in Asian stocks could be found late in the day, once earnings come out from Sony and three mega banks in Japan: Sumitomo Mitsui, Mizuho and Mitsubishi UFJ.


Sheng-Ji Yang
Mar 5, 2014


drat. This is going to be bad.

paragon1
Nov 22, 2010

FULL COMMUNISM NOW
If they're going to go full stupid with train proposals they might as well suggest building an undersea tunnel in a straight line to LA or whatever.

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suck my woke dick
Oct 10, 2012

:siren:I CANNOT EJACULATE WITHOUT SEEING NATIVE AMERICANS BRUTALISED!:siren:

Put this cum-loving slave on ignore immediately!

Accretionist posted:

Article: Beijing to the US by train: China outlines plans to connect world by high speed rail network
From: Times of India



This seemed pretty interesting. I've repeatedly come across the idea that how mountainous and desertified China's west is results in the east being kind of like an island. With that in mind, should I assume it's a safe bet we'll see a lot of wonderful infrastructure projects coming out of China to mitigate that geographic challenge?

And while this is being presented as a serious proposal, should it be taken seriously?

Let's pretend this is economically feasible - it sounds like a good idea till they hire a geologist who goes "what the gently caress, have you idiots never heard of sea quakes around subduction zones and poo poo" (there's a lot of faults around all of Asia). No, scratch that, it'd sound like a good idea, get implemented, and then demonstrate the existence of sea quakes as segments of the thing have to be rebuilt whenever one happens.

suck my woke dick fucked around with this message at 21:10 on May 14, 2014

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