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 […]

The Coming Revolution of Chinese Robotics

The Coming Revolution of Chinese Robotics

photo: Cory M. Grenier A few years ago, Chinese robotics market was dominated by foreign industry leaders. Today, China is the largest robotics market and about to become the leader in robotics production. The emerging robotics industry is booming in China. The move to advanced technology is aligned with the government plan – ‘Made in China […]

The People’s Verdict on Globalization

The People’s Verdict on Globalization

photo: Nicolas Raymond The similarities in the electoral appeals of businessman Donald Trump and Senator Bernie Sanders have been widely noted (see, for example, here, here and here). Both men attract voters who feel trapped in their economic status, unable to make progress either for themselves or their children. Moreover, both men have assigned the blame for the loss of […]

China’s Downgrade and the Case for Global Ratings Reforms

China’s Downgrade and the Case for Global Ratings Reforms

photo: PID In March, the leading credit agencies cut their outlook for China’s sovereign credit rating from stable to negative. If the decision was warranted, it may also be time to reassess the current ratings of most advanced economies and accelerate global ratings reforms. Standard & Poor’s (S&P) downgrade followed a similar measure earlier in […]

Overcoming the Challenges of China’s Northeast

Overcoming the Challenges of China’s Northeast

photo: Connie Northeast China is under heavy pressure to reduce overcapacity. As the economy is rebalancing, so must “China’s Rustbelt.” But how? In the next five years, China’s steel sector should reduce capacity by 100-150 million metric tons, while the coal mining sector will cut capacity by 500 million tons, with another 500 million tons to […]

How Oil Price Volatility Explains These Uncertain Times

How Oil Price Volatility Explains These Uncertain Times

photo: Geof Wilson The numbers say that these should be the best of times for America. The economy has been growing for five years. Unemployment is low. Inflation is almost nonexistent and gas is cheap. Yet, many Americans feel deeply uneasy about their future prospects. Uncertainty is the catchword of the moment. This uncertainty is contributing […]

The EU Division Over China’s Market Economy Status

The EU Division Over China’s Market Economy Status

photo: AK Rockefeller The dispute over China’s “market economy status” (MES) divides Europe by countries and industries. It stems from China’s 2001 agreement to join the World Trade Organisation (WTO), which Beijing believes required countries to grant MES to China within 15 years – by December this year. Reportedly, EU lawyers reached similar conclusions over year […]

The Great Bipartisan War on Free Trade

The Great Bipartisan War on Free Trade

photo: Dirk Dallas Like most economists, I am strongly inclined toward free trade. I cringe to see the way free trade is under attack, from both parties, during this primary season. The two populist candidates are the worst offenders. Bernie Sanders, whom I support on many other issues [1] [2] [3], goes off the rails when it comes to […]

China’s New GDP Range Target Is a Balancing Act

China’s New GDP Range Target Is a Balancing Act

photo: Thomas sauzedde China’s new growth target of 6.5-7% will ensure more flexibility amid deceleration at home and stagnation in the West. It is a balancing act between reforms and deleveraging.               Last Thursday marked the opening of China’s annual “Two Sessions,” or the annual plenary meetings of the mainland’s […]