The Chinese economy is on the path of a sharp slowdown in the coming years as Beijing wrestles with the Evergrande debt crisis, an economic analyst warned, adding that the coming slump should serve as an awakening to the other parts of the globe. The country’s shrinking economy, however, may not immediately be made apparent, said Leland
The debt crisis plaguing China Evergrande Group is “controllable” and unlikely to spill over, the country’s central bank said on Oct. 15 amid growing fears that its potential collapse could trigger a global domino effect. With over $300 billion worth of liabilities, Evergrande is the world’s most indebted real estate developer. The company has missed
The Federal Reserve and the European Central Bank are likely to keep policy settings too loose while the Bank of England will probably err on the hawkish side, most respondents told an October market sentiment survey conducted by Deutsche Bank. The Fed has been moving closer to rolling back its $120 billion in monthly asset purchases but the pace
News Analysis Global supply chain interruptions are exacerbated by China’s lock on chemical processing. In 1987, former Chinese leader Deng Xiaoping said, “The Middle East has oil, China has rare earths.” It seems that decades ago, the Chinese Communist Party (CCP) had already recognized the importance of controlling raw materials. Beyond mining and extraction, China’s efforts to hold
Commentary Although China appears to have had an impressive first half of 2021, appearances, as we all know, are incredibly deceptive. After all, if the country’s economy is as impressive as we have been led to believe, then why is it failing hundreds of millions of its citizens? If I were to ask you the best way to
News Analysis The financial woes of Evergrande have rippled through global financial markets, while investors are bracing for more volatility as Evergrande’s situation unfolds. So, what is Evergrande, why is it in the news, what went wrong, and what might happen next? What is Evergrande? Evergrande is a behemoth of a property developer in China.
We look at the biggest trade showdown in Asia. Both China and Taiwan want to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). China applied to join the partnership to be alongside free-market economies like Japan and Canada. But Taiwan applied days later to compete with China. I ask economist and author Clyde Prestowitz
News Analysis While the Securities and Exchange Commission (SEC) continues to signal tighter audit standards for Chinese companies listed in the United States, the Chinese Communist Party (CCP) has been meeting privately with Wall Street firms to launch wholly-owned mutual funds in the Chinese capital market. Experts believe Wall Street will remain as a middleman between China and the
Several industry groups have warned world leaders of a worldwide supply-chain “system collapse” due to pandemic restrictions, coming as Federal Reserve Chairman Jerome Powell suggested that the current period of higher inflation will last until 2022. The International Chamber of Shipping, a coalition of truck drivers, seafarers, and airline workers, has warned in a letter to
The two authorities across the Taiwan Straits applied to join a trans-Pacific trade agreement. The Beijing side tried to obstruct Taiwan’s application, while Taipei defended its right to be included in the regional pact. On Sept. 22, the Chinese regime sent 24 warplanes to Taiwan Air Defense Identification Zone (ADIZ), which was understood as a
Commentary The potential bankruptcy of the Chinese real estate company Evergrande is much more than a “Chinese Lehman.” Lehman Brothers was much more diversified than Evergrande and better capitalized. In fact, the total assets of Evergrande outnumber the entire subprime bubble of the United States. The problem with Evergrande is that it’s not an anecdote, but a symptom
The World Bank said on Monday that the COVID-19 Delta variant is holding back the recovery in East Asia and Pacific (EAP) countries, which would give rise to economic recession and inequality in the long term. Testing, tracking, and isolation among the public have been less effective against the more infectious Delta variant, partly driving
European stocks edged up and Wall Street futures pointed to early gains as investors digested the outcome of the election in Germany, with apparent relief that the far-left Linke party failed to secure enough votes to enter Parliament and so boosting the likelihood of a more centrist ruling coalition. Germany’s blue-chip DAX was up 137.10
Facebook Chief Technology Officer Mike Schroepfer has made the “difficult decision” to step down from his role, he announced Wednesday. Schroepfer, who has worked for the social network for 13 years and oversees its work in artificial intelligence (AI), virtual reality, and the blockchain, said he will transition to a new part time role as Facebook’s first senior
General Motors President Mark Reuss said Tuesday that he expects the global supply of semiconductors to stabilize but at lower levels than automakers need to rebuild their inventories. Reuss made the remarks at a conference hosted by the Detroit Regional Chamber in Michigan on Sept. 21, where he discussed GM’s plans for battery-powered car and
Evergrande—the second-largest real estate developer in China—is causing so much trouble for the Chinese regime, and its presence in the economy could also affect U.S. investors. Will it cause a global ripple through the interconnected financial system? The Chinese communist regime must decide if they want to bear the heavy weight of $300 billion in
The Chinese version of TikTok, called Douyin, on Sept. 18 announced that it had placed limits on youth usage of the app of up to 40 minutes a day. Douyin said in a statement that all authorized users under 14 years old will now access the app in a “youth mode.” The move is part of a
Japanese electronics giant Toshiba is closing its factory in Dalian City after entering the Chinese market 30 years ago. There are also online rumors that Toshiba will completely withdraw from China by closing 33 factories and R&D facilities in 24 Chinese cities by the end of this year. Takagi, head of Toshiba’s media division in Japan, told
Thousands of disgruntled investors besieged the headquarters of the world’s most indebted property developer in China to demand repayment of loans and financial products on Sept. 13. Evergrande first warned in August of liquidity and default risks if it fails to raise cash and resume construction. On Sept. 8, investors found the company had suspended payments to
Nearly 20 years after China was admitted to the World Trade Organization, China has not become more democratic or free. And Western capital has ultimately only strengthened China’s communist regime. “We were fooling ourselves,” says Clyde Prestowitz. Prestowitz was a leader in the first U.S. trade mission to China in 1982, and he’s served as an adviser to
