This is the second post paying homage to the Pettis explanation of the role of China’s foreign reserves.
The bank of China holds massive foreign reserves. That is agreed. What is far less clear is what these reserves can be spent on. The man in the street might say – “use the money to build hospitals and schools”.
It is my considered opinion that the West is underestimating China on a number of different levels. If we want to talk superpower politics, then China has always been a superpower albeit one that has been slumbering for 60 years. Remember the last 100 years is a very short period in China’s history. In 10,000 […]
The New York Times have an interesting article on China’s break neck rail growth. I have an interest in this article as I recently took the 30 minute Beijing – Tianjin train. It was great. Very fast, relatively cheap (this is a moot point) and similar in comfort to a first class air flight. I should add that the train was full when I travelled – see point in the article below.
Pettis is very good. He is also correct about China’s level of infrastructure relative to its level of development. He should not underestimate the power of a trophy however.
In recent weeks I have read articles in the economist arguing that there is no bubble in Chinese property. I am not in that camp and believe that there is a bubble that is getting to dangerous proportions. At last the FT is taking this issue seriously. I will not repeat the reasons – some […]
The blog post title says it all. These are great pictures that should be seen to be believed. Some make for very depressing viewing and are very far from the hotel in central Beijing that I recently stayed at. Amazing Pictures, Pollution in China [China Hush] Originally published at China Economics Blog and reproduced here […]
The China stimulus package has been something to behold. Massive compared to other countries and a massive distortion. Whilst is may have saved the global economy (in the short term) it is/has stored up a whole lot of trouble. Bubbles in the stock market and property market to name the obvious ones. Actually they are […]
I for one did not realise that the EU tariffs on screws was so high. Why? The FT report (plus this story makes for a good blog title). Anti-dumping legislation is always interesting (at least to me) and the EU are getting more and more trigger happy when it comes to using anti-dumping as a […]
Yes say local commentators. I agree. The China recovery is built on sand – where has the money all gone when trade is still falling, profits are falling and output is falling. Asset bubbles are forming as we speak. Sell China. Risks Emerge as Bank Loans Hit Overdrive [Caijing.com.cn] Record bank lending in China is […]