Skip to main content

Posts

Showing posts with the label chinese Economy

China’s contracting economy expands people’s wrath against the CCP regime (Credits- TFI Global)

Is the Chinese economy moving for a crash?

Image credits- Wikimedia Commons / Author- Christophe Meneboeuf China is heading for a massive economic crash. Due to the growing credit problems, is the Chinese economy going for a massive crash. The National Interest has dealt the subject in an extensive article. Toread the same, click here

China and India Aren't Afraid to Use Money as a Weapon ( Source- The National Interest / Author- Rishika Chauhan)

Chinese Yaun ( Image credits- Wikimedia Commons) Source- The National Interest Author- Rishika Chauhan “Major powers have to work with each other even if their interests diverge on some issues,” India’s Foreign Secretary S. Jaishankar stressed at the recently concluded India China Think-Tanks Forum in New Delhi. However, within the next few days, two articles in significant Indian and Chinese dailies seemed to have dampened the spirit of cooperation. Talking about a Chinese consignment worth $2.8 million dispatched to Nepal, a widely circulated Indian newspaper said that the shipment “will severely hit Indian businesses.” A reporter at the Chinese state-run Global Times was quick to respond, insisting the move did not mean that “Chinese goods will push Indian products out of the country.” Impassioned media debates ensued. While reports of competition between the two rising states is common, such discussions have been frequent since September of last year. Accusing Ind

These 5 Countries Will Dominate the Global Economy in 2030 ( Source- The National Interest / Author- Samuel Rines)

Bombay   Stock Exchange  ( Image credits- Wikimedia Commons / Elroy Serrao)  Source- The National Interest Author- Samuel Rines Will today’s five largest economies—China, the United States, India, Japan and Germany—maintain their places between now and 2030? Or will see a reshuffling? China has already passed the United States in terms of Purchasing Power Parity Gross Domestic Product (PPP GDP)—a method of measuring the relative purchasing power of a nation used throughout this piece. Granted, this is only one measure of wealth, and much of China remains poor, but it illustrates that measurement matters. By other measures, such as current dollar GDP, the United States is still the largest economy, and it is likely that U.S. economic dominance will continue. The United States has a few advantages in remaining a top economic power. Unlike China, the United States has already pivoted from manufacturing toward services, thereby reducing its reliance on exports for

China Risks Rise With Shadow Bank Loans – Analysis ( Source- Eurasia Review / Author- Michael Lelyveld)

Image credits- Wikimedia Commons Source- Eurasia Review Author- Michael Lelyveld China’s growing debt levels have continued to raise doubts about the country’s financial management after warnings that shadowy lending practices are putting banks and investors at risk. The government has waged a publicity campaign to calm financial concerns since March, when two international bond rating agencies lowered outlooks for China to “negative” from “stable,” citing slow reforms and faster loan growth. The findings by Standard & Poor’s Ratings Services (S&P’s) and Moody’s Investors Service were followed by a warning from Fitch Ratings in April that debt levels had become “a mounting source of systemic vulnerability.” The government dismissed the reports last month after announcing that China’s gross domestic product rose at a 6.7-percent rate in the first quarter, keeping within the official target range. The results proved that the rating agency “pessimism”

China’s Coming Mass Layoffs: Past as Prologue? ( Source- The Diplomat / Author- Shannon Tiezzi)

Image credits- VOA / Author Source- The Diplomat Author- Shannon Tiezzi China’s minister for human resources and social security has said that China will lay off 1.8 million workers in the coal and steel sectors, part of an overall plan to reduce overcapacity and streamline state-owned enterprises. Reuters, citing anonymous sources close to China’s leadership, puts the figure much higher, at 5 to 6 million in layoffs over the next two years. Beijing is aware of the risks such massive layoffs pose for social stability, and it’s already moving to control to damage. A Chinese official recently announced that the national government will set aside 100 billion renminbi ($15.3 billion) to help find new employment for those who lose their jobs to the restructuring. On Wednesday, a spokesperson for the National Committee of the Chinese People’s Political Consultative Conference, which begins its annual session tomorrow, assured journalists that the job losses would be “te

Will 2016 Bring the Collapse of China’s Economy? ( Source- The National Interest / Author- Gordon G. Chang)

Image credits- Wikimedia Commons Source- The National Interest Author- Gordon G. Chang Last Monday, at the conclusion of China’s closed-door Central Economic Work Conference, Beijing’s public relations machine went into high gear to show that the country’s leaders had come up with a viable plan to rescue the economy. Unfortunately, they do not now have such a plan. In reality, they decided to continue strategies that both created China’s current predicament and failed this year to restart growth. The severity of China’s economic problems—and the inability to implement long-term solutions—mean almost all geopolitical assumptions about tomorrow are wrong. Virtually everyone today sees China as a major power in the future. Yet the country’s extraordinary economic difficulties will result in a collapse or a long-term decline, and either outcome suggests China will return to the ranks of weak states. As an initial matter, China’s current situation is far worse tha

The Rise and Fall of Shadow Banking in China( Source- The Diplomat / Author- Sara Hsu)

Shanghai stock exchange ( Image credits- Wikimedia Commons / Heurik) Source- The Diplomat Author- Sara Hsu The conditions that gave rise to shadow banking in China before the bursting of the real estate bubble were unique; a finance-fueled stimulus package, coupled with moral hazard, under changing financial regulations, produced a shadow banking system that fomented institutional risk and threatened to bring about systemic risk. This was tightly managed by the Chinese government, which monitored developments, allowing some freedom while reining in the shadow banking sector when its costs outstripped its benefits. Shadow banking, which rose after the global crisis hit, appeared to be a matter of political expediency rather than careful planning, and its decline was absorbed into the greater concept of the “New Normal.” Shadow banking lost its luster and converted from a lending boom into a debt debacle that was absorbed under the umbrella of restructuring. As a br

China's Potential Pitfalls #2: The Limitations of China’s Political and Economic Models ( Source- The Diplomat / Author- Xue Li)

Image credits- Wikimedia Commons / Author Source- The Diplomat Author- Xue Li After enjoying rapid development for nearly 40 years, China is at a turning point in terms of both economic growth and social development. In this series, Dr. Xue Li examines the five most critical challenges and potential pitfalls China faces today. See the first piece here. More than 30 years have passed since China began its reform and opening up, but it has yet to create a political and social model for sustainable development. On the economic side, by and large the market economy has taken the leading role, but there are some serious shortcomings. The government still intervenes too much in the economy. This problem of improper intervention in the economy has not been solved. To cite just two examples: First, the stock market bears clear signs of being a policy-driven market. The recent classic example is the government’s violent intervention to rescue the market Regrettably, n