China

<strong>China struggles to save its international Rare Earth Market</strong>
23Apr By Joe RodriguezNo Comments
China, Market

China struggles to save its international Rare Earth Market

At the time when China is bedevilled by shifting away of supply chains from its shores and imposition of high import tariffs and blacklisting of its companies by US and Western countries, the world’s second-largest economy is staring at a significant drop in its status as the top international exporter of the rare earth materials. Data from China’s General Administration of Customs shows that the country’s exports of the 17 minerals classified as rare earths fell 18.2% in December 2023 from the previous month, to 3,439 tons. In 2022, it exported 48,728 metric tonnes of rare earths, down 0.4% year-on-year. The US Geological Survey report also suggests that China’s share of total rare earth exports dropped from about 90% a decade ago to roughly 70% in 2022. The Chinese Society of Rare...
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<strong>China’s over-capacity and low domestic demand are becoming a problem for the World Economy.</strong>
20Apr By Michael SmithNo Comments
China

China’s over-capacity and low domestic demand are becoming a problem for the World Economy.

The deflationary situations in China are spilling over negative externalities to the rest of the world, building tensions in international economics and diplomacy. More Chinese businesses are intending to dump low-cost goods into the rest of the world. Post-covid recovery in China has been weak due to a lack of demand-driven stimulus in the domestic markets, due to its demographic crisis[1], lower housing investment and weak estate sector[2], and rising youth employment. Local governments are also cutting their spending on routine expenditures like salaries to their employees[3]. There has been no increase in transfers or financial support from the government to households to increase their consumption capacity. As per a recent exchange between China and the US, Treasury Secretary Jane...
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Beijing responds to Fitch Ratings’ lowering of the credit outlook by stating that domestic debt concerns are manageable.
10Apr By Mike TrudellNo Comments
China

Beijing responds to Fitch Ratings’ lowering of the credit outlook by stating that domestic debt concerns are manageable.

A decision by a leading credit rating agency to downgrade China’s sovereign debt outlook failed to foresee the “positive role” of Beijing’s fiscal policy mix in promoting economic growth and stabilising the macro-leverage ratio, the Ministry of Finance said on Wednesday. Fitch Ratings had earlier on Wednesday cited concerns over China’s property and public finance stress, as well as “eroded fiscal buffers” as the result of wide fiscal deficits and rising government debts, as the reasons behind cutting the rating from stable to negative.“It is a pity to see Fitch’s downgrade,” the finance ministry said. “The long-term positive trend of China’s economy has not changed, nor has the Chinese government’s ability and determination to maintain good sovereign credit.” ‘We can’t fall behi...
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A ratings agency downgrades the forecast for China’s debt due to economic uncertainties.
10Apr By Mike TrudellNo Comments
China

A ratings agency downgrades the forecast for China’s debt due to economic uncertainties.

Fitch has downgraded the outlook on China’s debt as it warned of increased risks to the economy while the country moves away from its reliance on growth from the property sector. On Wednesday the US-based agency said it had revised China’s sovereign credit rating from stable to negative, saying this reflected the “increasing risks to China’s public finance outlook” as the country “contends with more uncertain economic prospects”. The downgrade comes amid a prolonged crisis in the country’s property sector that has been running since 2021, when a regulatory crackdown on debt-fuelled construction triggered a liquidity squeeze. The huge Chinese property company Evergrande was ordered to go into liquidation earlier this year, while last week the rival crisis-hit developer Country Gar...
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<strong>Economic hardship for Citizens and businesses alike in China</strong>
6Apr By Michael SmithNo Comments
China

Economic hardship for Citizens and businesses alike in China

The Chinese Communist Party (CCP) has recently implemented a nationwide campaign to promote financial discipline and frugality across all levels of government. The Ministry of Finance issued a notice on their website urging all regions and departments to tighten their belts and maintain strict financial discipline. The notice outlines several key areas where spending needed to be controlled and strictly managed, including strengthening the management of three public expenses: official receptions, vehicles and overseas trips. It also urged on reducing general expenditures and significantly cutting back on forums, festivals, exhibitions and other activities. In response to the central government's directive Provincial-level government Affairs Management Bureaus in various regions such as...
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<strong>China’s Financial Quagmire: Can the Dragon Escape?</strong>
5Apr By Joe RodriguezNo Comments
China

China’s Financial Quagmire: Can the Dragon Escape?

Bank of Jiujiang, a mid-level loan specialist from a southern Chinese river town, conferred some terrible news on 19th March. In a rare divulgence, it informed that financial backers dividends for 2023 could fall by 30%, in light of ineffectively performing credits. This is only the kind of data Chinese banks are ordinarily hesitant to uncover. For sure, they frequently take incredible measures to abstain from doing as such. Normally, the trick fills in as follows: the bank loans to a resource, the Asset Management Company (AMC), that consequently buys its toxic credits. The agreements drawn up between the two gatherings incorporate expectations that empower the AMC to stay away from the credit dangers of the terrible advances they are purchasing. Privacy statements hold these game pla...
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20 Nations with the Highest Debt to China
5Apr By Michael SmithNo Comments
China

20 Nations with the Highest Debt to China

In this article, we look at 20 countries most in debt to China. If you want to skip our detailed analysis, you can go directly to the 5 Countries Most in Debt to China. The Situation of International External DebtThe external debt situation for low and middle-income countries (LMICs) has changed drastically over the last decade and is out-pacing the economic growth of these countries, thereby raising serious concerns. The situation is even worse for poor countries where external debt stocks have risen at the fastest pace as compared to other LMICs. Moreover, the debt vulnerabilities exacerbated in many low-income countries eligible for International Development Association (IDA) resources. The debt accumulation in these countries has increased to the extent that more than 60% of IDA-el...
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<strong>China monopolizing EV battery market to its own advantage</strong>
29Mar By Michael SmithNo Comments
China

China monopolizing EV battery market to its own advantage

As the top nations in world scramble for their own electric vehicle (EV) market share, China is silently capturing the EV battery market, the basic unit, or fuel, on which these green vehicles run. It is scary and evident that China would very soon be using its EV battery dominance as a bargain chip to manipulate other nations, pretty much what the Gulf nations are doing with their fuel, and the world needs to step up tostop the Dragon.   China is secretly monopolizing the EV battery market for its own advantage. As per the list released for the top EV battery manufacturers in the world in 2023, Contemporary Amperex Technology Co. Limited (CATL, China) leads with 36.8% share, BYD (China) has 15.8%, LG (South Korea) has 13.6%, Panasonic (Japan) has 6.4%, and remaining global m...
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China Will Lead Global Economic Recovery, According to a Senior Communist Official
28Mar By Walter ParezNo Comments
China, World

China Will Lead Global Economic Recovery, According to a Senior Communist Official

Brushing off domestic economic headwinds, a top Communist Party official said Thursday that China aims to drive the world’s recovery this year by pushing forward reforms and making tech innovation a new point of growth. The remarks from Zhao Leji, who chairs the Standing Committee of the National People's Congress, come as foreign investment in the country is falling and it grapples with issues that include high youth unemployment, ballooning debt and a crisis in the property market. Speaking to businesspeople and other leaders at the Boao Forum for Asia, Zhao said China welcomes "all countries to board the express train of China's development." Zhao said tech innovation, particularly through green technologies, would be a key point of economic growth. He also said that China ...
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<strong>China’s Internal Turmoil: Escalating Tensions Amidst Dissent and Repression</strong>
22Mar By Joe RodriguezNo Comments
China

China’s Internal Turmoil: Escalating Tensions Amidst Dissent and Repression

In recent times, the internal state of China has witnessed a significant deterioration, triggering widespread discontent across various societal segments. Citizens are increasingly vocal about their opposition to the Communist Party, attributing their dissatisfaction to the government’s ineffective policies. However, the response from the Chinese Communist Party (CCP) has been marked by repressive measures, effectively quashing any form of dissent. As a result, tensions have intensified, leading to confrontations between law enforcement and civilians in multiple Chinese cities. The situation remains highly volatile, fraught with conflict, and demands close attention. Incidents of confrontation between law enforcement agencies and citizens have become alarmingly frequent, spanning both ...
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