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Outside the Box Reforms for China’s SOEs

SOEs contribute to 23.4 percent of industrial revenue and 21.6 percent of profits — a significant drop from more than 80 percent of both industrial revenue and profits at the start of the reform and opening up in the late 1970s. In 2014, 88 Chinese SOEs were included in Fortune Global 500, Fortune magazine’s annual list of the top 500 corporations worldwide by revenue.

SOEs now make up just 4.9 percent of firms in China’s mining, manufacturing and utilities sectors. However, there are still a few long-term problems that must be resolved.

The Mess In Malaysia May Have Been Mahathir’s, But Now It Is Razak’s

At least embattled Malaysian Prime Minister Najib Razak is right about one thing. The current mess in Malaysian politics is the making of his greatest nemesis, Mahathir Mohamad, who led the Southeast Asian nation with an iron fist from 1981–2003.

British Economy Making Comeback but Challenges Loom

British GDP shot up 0.7 percent in the second quarter, improving upon 0.4-percent growth seen in the first quarter. Factory output faltered during the second quarter, and a stronger currency is hurting the export sector.

Data from the Office for National Statistics further showed that Britain is increasingly relying on domestic demand to sustain the economy. Analysts also expect domestic demand to remain strong, as wage increases allow more people to pour money into the economy. Inflation is also down, and more firms show a willingness to invest again.

The Implications of Defining China as a Market Economy

There is a potential mega-battle brewing over trade rules and the provision of market economy status for China that could reach the World Trade Organization (WTO) in 2016.

Whether particular countries grant China market economy status has important implications for the adjudication of anti-dumping cases. In international trade, dumping occurs when a country exports a product at a price below the normal cost of production or price paid in the exporting country.

China anti-dumping case

Cooperating with China on Their Terms

In late October 2013, the Chinese Communist Party Central Committee held a conference of Diplomatic Work with Neighbouring Countries in Beijing, where it unveiled new priorities under its New Neighbourhood Diplomacy guidelines. The new approach makes China’s neighbourhood, covering both continental and maritime Asia, the top strategic priority for the first time. The key message of the conference was to reassure to the region that China will step up its proactive engagement with its neighbours.

IMF Warns that Indian Companies Most at Risk with a Strong Dollar

The International Monetary Fund (IMF) recently conducted stress tests to model what effect an appreciation in the value of the US dollar would have on economies around the world. In a somewhat surprising turn, those who fared worst in a world with a more valuable dollar were not exporters of goods to America or countries dependent on US goods, but rather, Indian businesses.

The reason, according to the report, was a possible worsening of borrowing costs and earnings. Troubling news for Indian businesses, as the dollar has been on a sustained track of appreciation.

A Preview of the Emerging Markets

EM assets start the week on a softer footing. The China situation remains unsettled, with stocks on Monday posting their biggest one-day loss in eight years. More support measures seem likely if the rout continues. The calm in China equity markets from last week has been shattered, and is having reverberations across EM as MSCI EM breaks down to multi-year lows. Indeed, the June 2013 low is approaching, and a break below would target the 2011 low.

IMF Warns Japan about Spiraling Debt

Japan has one of the highest levels of debt of any nation in the world, and it is only growing. According to a recent report by the International Monetary Fund (IMF), Japan’s national debt will be three times the size of its economy by 2030 unless the government takes action now to control its spending.

Recent Inroads for Women in India’s Parliament

The parliament of a representative democracy is essentially a mirror of the democracy’s society. Naturally, societies still entrenched in patriarchal constructs have male-dominated legislatures. While there is still a global underrepresentation by women in decision-making roles, the Indian Parliament in particular continues to rank among the lowest in the world in women’s representation.

How The Philippines’ Education System Makes the Grade

While the Philippines has had robust economic growth since 2010, even despite a weak global economy, it has had little progress in reducing income poverty. Recognising that growth processes leave out some segments of society, the Philippine government has made inclusive growth the cornerstone of its most recent Philippine Development Plan.