China Archives - Page 8 of 54

China Straddles Menacing Superpower and Economic Saviour

The Janus-faced nature of Xi Jinping’s China was again on show in 2015. In September, a dour-looking Xi reviewed soldiers and ballistic missiles at a military parade in Beijing to celebrate the 70th anniversary of Victory Day, which marks China’s victory over Japanese aggression in World War II. A month later, a grinning Xi rode beside Queen Elizabeth in the royal carriage as Prime Minister David Cameron talked up Chinese investment in the United Kingdom.

China’s Global Leadership Litmus Test

The sixth Forum on China–Africa Cooperation (FOCAC), held on 4–5 December 2015, set in motion a deeper pattern of exchanges with its partners that could drive economic transformation across the continent. In ‘scaling-up’ measures to ease African bottlenecks in infrastructure, skills and finance, China’s efforts are also a litmus test of its legitimacy in global leadership.

Are Chinese Monopolies Merging to be Competitive?

China’s state monopolies survive alongside a cutthroat private sector.

China’s Wuzhen Summit (World Internet Conference) is on Deck

The second World Internet Conference (WIC), also known as the Wuzhen Summit, will take place Dec 16 -18, in Wuzhen, Zhejiang. Chinese President Xi Jinping will attend the conference and address the opening ceremony. It takes place amid dramatic expansion of Chinese e-commerce, thanks to great market potential and government’s supportive policies.

China Mergers and Acquisitions to Heat Up in 2016

In an effort to combat sluggish growth and a collapsing stock market, the Chinese government will turn to merger and acquisition activity next year.

That represents the assessment of analysts at Standard Chartered, a London-based bank that has a substantial presence in Hong Kong. The Standard Chartered report noted that most of the activity will revolve around commodity firms, and will involve state-owned enterprises (SOEs) that have already begun to privatize through equity offerings in recent years.

China’s Yuan Tactics Seem to Take Cues from the Fed

The US dollar continues its mixed performance. The fragile stability of commodity prices today is not lending much support to the Australian and New Zealand dollars though the Canadian dollar is flat after yesterday’s slide.

The euro has pushed above $1.09 for the first time this week. We had suggested a $1.08-$1.10 range would likely dominate this week. Technically, it appears poised to test the upper end of that range. Stops above the $1.1010 retracement objective could carry the euro toward $1.11.

China’s Migrants Show Great Economic Potential

China’s economy has entered a ‘new normal’, slower growth pattern. In addition, consumption is touted to play a more significant role in boosting economic development. The potential is large. However, if it has to be achieved, the Chinese government needs to focus on unlocking the consumption potential of migrant workers who are a major driver of structural change and urbanisation in the Chinese economy.

When $87 Billion is not a lot of Money

Economists expected China’s reserves to fall by around $33 bln in November. Instead, they fell by a little more than $87 bln. This is the third largest decline it has recorded, and a little below the $94 bln drop reported in August.

China’s reserves peaked in June 2014 near $3.993 trillion. At the end of November, they were just above $3.438 trillion, which is essentially where they stood in October 2014. What happened in November?

Looking In on China’s ‘Going Out Policy’

Chinese firms have invested in natural resources in low- and middle-income countries on a global scale. These include mining operations and large hydropower dams. Often these projects have environmental and social implications.

There are a range of reasons for these investments. Most have been made since the Chinese government issued its ‘Going Out Policy’ to encourage firms to invest overseas.

The main reasons include:

* rapid growth depleting scarce domestic natural resources;

China’s ‘Society of Strangers’

China has a problem.

No, not Donald Trump trying to savage it any time he comes within three feet of a microphone. It’s that enormous social shifts in recent years – like the forcible relocation of 250 million people from rural areas to urban environments – have transformed the country, in the words of its Academy of Social Sciences, from “a society of acquaintances into a society of strangers.”