Don't look now, but one of the chief justifications for the TPP may have just evaporated`

[markpkessinger]

The supposed juggernaut of a Chinese economy has been cited as one of the biggest reasons why the TPP is a necessary deal. Well . . . not so fast. From the CNNMoney:

[font size=5]Nearly 25% of Chinese stocks have stopped trading[/font]

Over 700 Chinese companies have halted trading to "self preserve," according to the state media. That means about a quarter of the companies listed on China's two big exchanges -- the Shanghai and Shenzhen -- are no longer trading.

China's stock markets are in trouble. The Shanghai Composite Index has fallen over 25% since mid-June. The Shenzhen, which has more tech companies and is often compared to America's Nasdaq Index, is down even more.

The government has taken extraordinary steps to try to prevent further damage. The Chinese central bank made a surprise rate cut at the end of June. Then China's securities regulator stopped initial public offerings on the exchanges.

Over the weekend, over 20 of China's top brokerage firms publicly pledged to buy back stocks and funds in an effort to slow the downfall. The firms expect to spend at least 120 billion yuan (about $19.3 billion).

<. . . . >

[geek tragedy]

1. China's going to have its struggles, but it's still freaking China, the giant of the region

and one of the 2-3 economic giants on the entire planet

[truebluegreen]

3. Yeah, and they're totally gonna buy a whole buncha stuff from us...

like raw materials.

[markpkessinger]

5. 'Struggles' is putting it mildly

China is facing enormous structural problems in its economy, the biggest one being that it decades-long one-child policy has produced an enormous elderly popukation, with nor nearly enough people of working age to be able to support them. That fact, along with the horrendous levels of environmental despoliation, will be increasing hindrances to thie growth of its economy for years to come.

[geek tragedy]

6. It's still the #1 or #2 economy on the planet nt

[jeff47]

9. #3.

If you treat the EU as one economy. #2 if you count the EU countries separately

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29

[geek tragedy]

11. I don't think anyone's counting the EU as one integrated economy these days. nt

[jeff47]

10. They have an even bigger problem than that

They created a middle class. Middle classes can concern themselves with more than mere survival.

To placate them, the government promised a better life if people did things like got college degrees. And was able to deliver for a generation. But now they don't have enough well-paying "college required" jobs to continue delivering that better life.

So you've got people who busted their ass in school to get a masters degree because of their great prospects, who are now working the electronics assembly lines. They were promised more, and got shit. That's going to be a problem going forward.

[lostnfound]

2. Maybe the PTB view Chinese economy as "too big to fail"?

[Betty Karlson]

4. TPP is like the early 2000s:

very depressing, and lingering on long after anyone wants anything to do with it.

Like most things from the early 2000s, it should not be continued.

[GoneFishin]

7. Since it was merely an excuse, TPP peddlers will pretend it was not really an important factor after

all. Some other factor will be cited as the urgent reason why we must hand over our legislative system to profit voracious multinationals in return for some vague allusion of betterment of some ... thing ... or stuff, or something.

[CharlotteVale]

8. +1