G20: Overcoming Protectionism, Emerging Growth

G20: Overcoming Protectionism, Emerging Growth

  In Hangzhou, China began the push for G20 to overcome protectionism and fuel global growth prospects. That is vital to reverse stagnation in advanced economies and slowdown in emerging nations. On September 4-5, the leaders of the G20 economies met in Hangzhou. The summit had great symbolic importance that was easily understood in emerging […]

Chinese Growth Staying Close to Target, Despite Bleak Global Prospects

Chinese Growth Staying Close to Target, Despite Bleak Global Prospects

  photo: Thomas Depenbusch Assuming no surprises in the second half of the year, China’s growth in 2016 will remain near the target of 6.5 percent reflecting structural transition in the mainland, secular stagnation in the West and post-Brexit tensions globally. In mid-July, China’s second-quarter GDP figures beat estimates with a 6.7 percent expansion, thanks to […]

China’s Devastating Floods: From Adaptation to Mitigation

China’s Devastating Floods: From Adaptation to Mitigation

photo: LanguageTeaching After weeks of torrential rain across central and southern China, the mainland has suffered from a series of devastating floods. As the total price tag has soared, the impact will be felt in economic growth. By mid-July, almost 240 people had lost their lives and nearly 100 were missing, as China’s floods had been […]

Time for Reset and Realism in the South China Sea

Time for Reset and Realism in the South China Sea

photo: U.S. Pacific Fleet After the South China Sea arbitration ruling, uncertainty and friction may increase in the region. However, the economic promise of China’s rise and the Asian century will only materialize with peace and stability in the region. On July 12, the international court in The Hague ruled in the dispute between China and […]

Hong Kong’s Choice Between Hope and Despair

Hong Kong’s Choice Between Hope and Despair

photo: Long CHUNG Today, Hong Kong faces great economic uncertainty and unprecedented market volatility. Recently, Hong Kong’s financial secretary John Tsang Chun-wah warned that the city’s economy is facing its “worst time in 20 years.” In the past half a decade, growth has more than halved close to 2.5 percent. With Brexit chills, analysts expect a […]

Advanced Manufacturing May Change the Rules of Economic Development

Advanced Manufacturing May Change the Rules of Economic Development

photo: Tecnalia As advanced manufacturing is about to accelerate in China, the rules of economic development could change across the world.  About a year ago, China’s State Council unveiled a national plan, “Made in China 2025,” which seeks to upgrade China’s manufacturing base. The ultimate objective is to transform China into the leading global manufacturing power […]

Part 3: Reforming China – Changing the Software

Part 3: Reforming China – Changing the Software

Beyond purely economic and financial objectives, the reform process in China must meet welfare, demographic, environmental and governance challenges.  The People’s Welfare… Increasing consumption requires increases in household income, reduced savings or a combination. This requires increasing wage levels and employment levels.  Increasing consumption will require reform of the welfare system, especially health, education and […]

Understanding China’s Rise: The Role of Captive Savings

Understanding China’s Rise: The Role of Captive Savings

photo: Steve Passlow Key takeaway – Over the last three decades, China’s contribution to global growth tripled. The interplay of three domestic factors enabled a growth acceleration: abundant cheap labour flocked into the industrial sector and accepted the financial repression of its savings, which in turn funded massive investment via subsidized lending to state-owned enterprises (SOEs). […]

Part 2: Financial Reform in China – Don’t Bank It!

Part 2: Financial Reform in China – Don’t Bank It!

photo: David Dennis The Chinese brand of state corporatist model based on credit driven investment is designed to deliver growth. The strategy requires the government to exert significant power over the economy, with the ability to intervene in economic activity and allocate resources. In practice, this is done through the SOEs and especially control of the […]

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