China’s e-Commerce Explosion Will Shake the World

As China seeks to further boost the e-commerce sector, it is likely to attract new capital and create new jobs and entrepreneurs. Recently, the State Council, China’s cabinet, announced that it will boost the development of e-commerce by cutting red tape and liberalizing investment regulation in the sector. Reportedly, the new measures include a tax […]

The Saudi Re-engineering of the Global Corporate Oil Board

Something interesting is happening now. Energy insiders and OPEC officials are saying publicly and privately that the days of OPEC managing the market is over, and it certainly seems that OPEC’s cohesion is breaking down. In truth, OPEC may already be a thing of the path, and Saudi Arabia appears to be in the midst of creating […]

China Has a History of Not Trusting Microsoft on Cybersecurity

Reports of China investigating Microsoft for possible violations of anti-monopoly laws have tied the action to continuing tensions over cybersecurity. In response to the Department of Justice’s indictment of five alleged PLA hackers, as well as revelations in some of the documents released by Edward Snowden that appear to expose the NSA hacking into Chinese targets, Beijing has increased focus on […]

Major Economic Themes for 2014

This time last year, the majority of financial commentators held a downbeat outlook for the global economy in 2013. The potential for instability was seemingly high, but in reality it turned out that the greatest shock was a lack of any major shocks. In the United States, the Federal Reserve reduced its monetary stimulus measures […]

The IMF on overinvestment

The IMF’s Il Houng Lee, Murtaza Syed, and Liu Xueyan have published a very interesting and widely noticed study called “Is China Over-Investing and Does it Matter?” In it they argue that there is strong evidence that China is overinvesting significantly. According to the abstract: Now close to 50 percent of GDP, this paper assesses the appropriateness […]

Aging Workforce Threatens China’s Low-Value Production Status

Labor-intensive industries will be forced to move upscale or automate facilities to sustain operations. With first-generation migrant laborers nearing retirement age, what propelled China to its status as the primary hub for low-cost production is now pushing the country out of this very position. Labor-intensive industries such as toys, footwear, caps and textile products are […]