China Archives - Page 22 of 54

The Stock Connect Link Between China and Hong Kong

A direct link has been established between Hong Kong and Shanghai’s stock exchanges. The so-called Stock Connect means investors in Hong Kong can now buy shares listed on the Shanghai Stock Exchange via their local brokers and vice versa. This is a milestone moment for China as it further opens the door to investors, liberalises its capital market and promotes the internationalisation of its currency, the RMB, through the two-way share dealings of investors in both markets.

China’s Growth Rate Slowed, But Not Dramatically

The global economy breathed a sigh of relief last month with the release of China’s third quarter growth numbers. The result of 7.3 percent was down from 7.5 percent in the previous quarter but came in a touch above consensus forecasts. The result was sufficiently robust for worries about a hard landing to retreat significantly.

Chinese Profitability Rising on Pivot to Domestic Consumers

Steady consumer price inflation and a consistent fall in prices for producers could make Chinese companies more profitable as the nation pivots from export-driven to a domestic demand-focused economy.

Chinese firms have seen their cost of raw materials fall every month for the last 32 months. Producer prices fell 2.2% in October, nearly the highest rate of price declines in 2014 although nowhere near the -3.8% decline in prices seen in 2012.

Will Embracing the ‘China Model’ Threaten Jinping’s Diplomatic and Economic Goals?

Xi Jinping has tackled serious domestic and foreign policy challenges since he assumed leadership in November 2012. He has put great effort into an astonishingly large-scale domestic anti-corruption campaign and has invested diplomatically in enhancing China’s image as a major country and leader in the region.

How Important to China is the WTO Ruling on Rare Earths?

In August, the Appellate Body of the WTO ruled that China’s export duties, quotas, and administration of rare earths, tungsten and molybdenum products violated various provisions of the GATT and the Accession Protocol that China promised to implement when it joined the WTO in 2001. Ruling in favour of the US, the EU and Japan, who had filed a joint complaint in March 2012,the WTO asked China to remove its export tariffs and quotas within a reasonable amount of time or face punitive retaliatory tariff measures.

China’s Xi Jinping’s ‘man of the people’ Leadership of the World’s Largest Consumer Market

When Xi Jinping ascended to the Chinese presidency, he, Premier Li Keqiang and their streamlined seven-person Politburo Standing Committee faced serious economic challenges at home as well as increasingly complex issues to manage abroad.

Domestically, the Bo Xilai affair hovered over the leadership transition ominously, underlining the need to deal with disquiet among the Chinese public over corruption and the relationship between the state and economic power.

China is Coming Out on Top in the Global Economy

Economic Overview

China is the second largest Asian country and for some time now, boasts the world’s second largest economy, which has grown rapidly since the government reforms in 1978. China is one of the biggest exporters and importers of manufactured goods, and is a major player in global financial investment. Agriculture continues to be a major force on the country’s economy, with China leading the world in the production of rice, soybeans, tea, and cotton.

How Resilient is China’s Economy?

At the moment, there is some confusion about the health of the Chinese economy. Some believe that it is beginning to stagnate, while others suggest that the economy is flowing better than ever before. Currently, the official data being released is largely distrusted (kind of sounds like what many Americans believe when it comes to the IRS, EPA, and White House), and a developing database of alternative indicators are beginning to offer new ways of understanding the development of the second largest economy in the world.

Has China’s Appetite for Coal Finally Peaked?

A recent report from Greenpeace found that China’s coal consumption declined in the first half of this year and new Chinese government data suggests that the country’s coal imports have dropped. Estimates indicate that by the end of the year, China’s coal imports could be 8 percent below 2013 levels.

China imported 18.86 million tonnes of coal in August, the lowest level since September 2012.

Blowing the lid off food safety in China

In July, Shanghai’s Dragon TV exposed illegal food handling practices by Shanghai Husi Food Co., a major meat supplier to multinational corporations such as McDonald’s and KFC. The story, which was the result of months of undercover investigative journalism and concealed video recording, showed footage of numerous violations including mixing expired meat with usable product as well as deliberately deceiving a regular inspection group from McDonald’s. Six Husi staff members were swiftly arrested.