Here we have another “deflation is ravaging China’s economy” headline. Buried in the data has CPI actually rising slightly over the period. I’ll just comment once again that what it is you are seeing from the Chinese data is what you should expect when the world’s second largest economy makes the policy decisions to deleverage on a system wide basis. China’s producer prices see worst drop in nearly two years
CNBC
China’s producer prices fall 3.6% in June, biggest drop in nearly two years as deflation deepens
The deflation in producer prices came worse than the expected 3.2% drop in a Reuters poll, marking the biggest fall since July 2023, according to L...
What’s Next for TikTok? The Chinese aren’t just threading the needle, they are – to mix metaphors – finding a solution whereby they get their cake and eat it as well. A sale to a consortium of American investors will likely occur later this year. It is now rather clear that a host of parties are working diligently in the background to acquire the American TikTok platform. The operative work there is “American”. The sale will not be for the entire international TikTok platform, at least in my estimation. The ex-American platform is simply too valuable. Moreover, there is now credible evidence that Bytedance is working overtime to create a standalone app which tailored for the American market. Fun fact. This is exactly what China did itself with Douyin available in China and TikTok available in all other market. What should be expected though is that this new American-only app will end up dramatically underperforming. The “special sauce” that is the current TikTok algorithm will be fully ripped out. There will clearly be a period of integration and there won’t be much of a difference, again at the earliest of stages. Fast forward out a year after a deal is completed and TikTok America is live and I am expecting that overall user engagement will fall off a cliff. With a poor performing TikTok America platform, I then wonder if we will – once again – witness a deluge of “refuges” flooding back to RedNote. That would be the ironies of all ironies.
Los Angeles Times
TikTok reportedly prepping new app in the U.S. as potential sale looms
TikTok is planning to release a new app in the U.S., according to media reports. President Trump has said a deal is near.
China Morning Missive Will fully admit, China going full “visa on arrival” was something I never expected. Then again, it has been a brilliant move. Tourists from all over are making their way to the Mainland. Shanghai is essentially fully back to the pre-Covid days of foreigners roaming the streets. What has been interesting to watch are the reactions. So far this year I’ve had a half dozen friends and/or family travel through and each – to the man and woman – have left completely flabbergasted. The make the point of there being an obvious disconnect between what was expected and reality. Again, everyone made the point that China isn’t at all how it is presented in the American or European media. Most will also comment that China feels like living in the future. Suspect that is more a case of a massive lack of investment by American and Europe. None of this is a surprise to me, but I am very thankful that more and more people are making their way to China and getting a first hand look for themselves. Highly recommend a trip for all of you out there. And if you do make it to Shanghai, be sure to let me know.
AP News
Citizens of more than 70 countries can now visit China without a visa
China now allows citizens from 74 countries to enter visa-free for up to 30 days. This policy aims to boost tourism, the economy, and China's globa...
For the longest time, I’ve made the point that all critiques of #China are warranted. At the same time though, it has also been obvious that those critiques have been woefully incomplete. Selective in how they are presented. What has been far more evident to me is a G7 leadership that is increasingly feeling cornered. Debt is weighing down the system all over. If the only way out is through, then NATO sees that the only way through as WAR. As an act of screaming into the void here I am making the point that when the head of NATO publicly states that his outlook isn’t just for Russia to expand farther with its aggression and directly attack Europe but that this will be done at the behest of China. The quote below comes from Mark Rutte, the current head of NATO. “There’s an increasing realization, and let’s not be naive about this: If Xi Jinping would attack Taiwan, he would first make sure that he makes a call to his very junior partner in all of this, Vladimir Vladimirovich Putin, residing in Moscow, and telling him, ‘Hey, I’m going to do this, and I need you to keep them busy in Europe by attacking NATO territory,'” Rutte told the New York Times Again, this is the Secretary General of NATO going on the record expecting war. #madness.
NATO chief predicts how China could set off World War III: 'Let's not be naive about this' | New York Post