China

China’s BRI problem: From builder to debt collector
25Jun mmBy Joe RodriguezNo Comments
Asia, China

China’s BRI problem: From builder to debt collector

China has embarked on very rapid and massive overseas lending since 2013, when it launched the Belt and Road Initiative (BRI). But it has now become the world’s largest debt collector for developing countries’ debt repayments. EAI senior research fellow Yu Hong assesses whether China’s shifting role in global lending will undercut the BRI. The Belt and Road Initiative (BRI), launched in 2013, has positioned China as a central player in global infrastructure financing and development. According to a 2022 report by the World Economic Forum, Chinese enterprises and banking institutions have announced their participation in about 3,800 overseas projects under the BRI since 2013, involving a total investment of US$4.3 trillion towards building roads, railroads, seaports, energy plants a...
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Indian ULBs Can Learn from China’s Massive Local Government Debt
25Jun mmBy Joe RodriguezNo Comments
China

Indian ULBs Can Learn from China’s Massive Local Government Debt

China’s ULB debt crisis reveals what Indian cities must avoid while building infrastructure and chasing growth. This is the 172nd in the China Chronicles seriesA key element of China’s spectacular economic growth was the immense infrastructural push country’s local governments—comprising provincial governments and urban local bodies (ULBs). This was enabled by fiscal policy support from the Chinese government and an investment environment that allowed local governments (LGs) to use debt instruments to finance infrastructure and propel local economic growth. However, the debt-driven strategy led to asymmetry: economically weaker LGs, in regions with lower Gross Domestic Product (GDP) growth, often borrowed more heavily than those in relatively prosperous economies. Nonetheless,...
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<strong>In crisis, Xi Jinping falls back on Deng Xiaoping’s model of economic growth</strong>
25Jun mmBy Joe RodriguezNo Comments
China

In crisis, Xi Jinping falls back on Deng Xiaoping’s model of economic growth

In the face of plummeting growth rates, President of China Xi Jinping seems to have abandoned his “dual circulation” strategy of boosting domestic consumption demand to revive the economy and fallen back on the model of former supreme leader Deng Xiaoping of export-driven growth. According to a Xinhua report from Tianjin in northern China in late October last year, Xi had emphasized on the importance of state-level Economic and Technological Development Zones of China. Describing these development zones as important for Chinese advancement of reform and opening up of the economy, he emphasized for stimulation in innovation in these zones. The Economic and Technological Development Zones (ETDZ) of China are comparable with export processing zones in other countries. These designa...
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<strong>China’s Electric Vehicle Mirage: Beneath the Shine, a Crisis of Safety and Trust</strong>
23Jun mmBy Brian ThompsonNo Comments
Asia, China

China’s Electric Vehicle Mirage: Beneath the Shine, a Crisis of Safety and Trust

In the global rush toward electrification, China has positioned itself as a leader—touting breakthrough innovation, soaring EV exports, and world-class manufacturing capacity. Yet beneath this polished narrative lies a growing unease. Over recent months, a troubling pattern has emerged: mounting cases of mechanical failures, safety hazards, and consumer dissatisfaction surrounding Chinese-manufactured electric vehicles. These incidents not only challenge the supposed quality of China’s EV industry but expose deeper systemic problems rooted in design, regulation, and market pressures. Chinese electric vehicles, often showcased as cutting-edge alternatives to their Western counterparts, are increasingly falling short of their promises. In one viral incident from March 2025, a Beijing...
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In a covert message to Trump, Xi and Putin put up a united front against the Israel-Iran conflict.
21Jun mmBy Joe RodriguezNo Comments
China

In a covert message to Trump, Xi and Putin put up a united front against the Israel-Iran conflict.

China and Russia positioning themselves as voices of reason, calling for de-escalation of a conflict the United States is contemplating on entering — these are the optics Xi Jinping and Vladimir Putin sought to project during a phone call on Thursday. As US President Donald Trump weighs joining Israel in attacking Iran, the fast-spiralling conflict between two sworn enemies in the Middle East has presented Beijing and Moscow another opportunity to cast themselves as an alternative to US power. In their call, Putin and Xi strongly condemned Israel’s actions, calling them a breach of the UN Charter and other norms of international law, according to the Kremlin. (The elephant in the room, of course, is Russia’s own violations of international law in its ongoing war against Ukraine ...
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Word is bonds: China’s provinces use special-purpose funds to pay debts
21Jun mmBy Joe RodriguezNo Comments
China

Word is bonds: China’s provinces use special-purpose funds to pay debts

Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from existing investment projects, according to a statement from the province’s department of finance issued last week. The department said the disbursements will be prioritised to help cities and counties across Hunan complete ongoing construction, clear their obligations and reduce fiscal risk....
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A rare earth magnet issue puts EV production at danger, so an Indian auto team travels to China.
17Jun mmBy Joe RodriguezNo Comments
China

A rare earth magnet issue puts EV production at danger, so an Indian auto team travels to China.

In April, China implemented export restrictions on seven rare earth elements and finished magnets, requiring exporters to obtain licenses. However, requests for imports are still awaiting approval from Chinese authorities, and shipments have yet to arrive. A delegation of auto industry representatives is preparing for a visit to China, aiming to speed up the import of rare earth magnets for Indian companies, according to industry sources. Roughly 40 to 50 executives have received visa approvals but are still waiting for the green light from the Chinese commerce ministry to hold discussions on the matter. The domestic auto industry is compelled to take action as the Chinese government imposed restrictions on the export of rare earth elements and related magnets starting April 4. Chi...
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BYD’s $21.5b loss signals crisis in China’s EV price war
9Jun mmBy Joe RodriguezNo Comments
China

BYD’s $21.5b loss signals crisis in China’s EV price war

China’s electric vehicle (EV) sector is experiencing a price war that is affecting share prices and prompting government intervention. Analysts attribute these challenges to weaker demand and overcapacity, which may reduce profits and drive some companies out of the market. BYD, the market leader, has lost US$21.5 billion in market value since May 2024 due to aggressive pricing strategies. The average production capacity use rate in the industry was 49.5% in 2024, according to Gasgoo Automotive Research Institute. Overcapacity remains a major concern, leading some automakers to reduce operations or seek additional funding. 1️⃣ China’s EV industry is transitioning from subsidy-driven growth to market-driven consolidation The current price war represents a predictable ...
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<strong>China Moves in: Indonesia’s EV Strategy Shakes Up Global Battery Politics</strong>
4Jun mmBy Brian ThompsonNo Comments
Asia, China

China Moves in: Indonesia’s EV Strategy Shakes Up Global Battery Politics

Indonesia’s flagship electric vehicle (EV) battery consortium has come under the spotlight of the global community following the removal of South Korea’s LG Energy Solution and the potential entry of Beijing-backed Zhejiang Huayou Cobalt. The development has intensified geopolitical and economic concerns about Beijing’s growing dominance in the global EV supply chain. In fact, Huayou had already expressed its interest in the Titan project as early as last year, and it already had “the technology.” The intention was clear: China has been increasing its influence in neighbouring Indonesia’s burgeoning EV supply chain. The $9.8 billion electric vehicle (EV) battery project, also known as the Titan Project, is part of Indonesia’s plan to climb the value chain in battery manufacturing. ...
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<strong>Global Trade Shift: China Seeks Allies amid U.S. Tariffs</strong>
3Jun mmBy Brian ThompsonNo Comments
Asia, China, USA

Global Trade Shift: China Seeks Allies amid U.S. Tariffs

Chinese President Xi Jinping's diplomatic visit to Vietnam has drawn global attention, particularly in light of the 145% tariff imposed by the United States on Chinese exports. This move has intensified trade tensions between the two economic giants, prompting China to seek stronger alliances with Southeast Asian nations. During his visit, Xi urged Vietnam to stand against unilateral trade restrictions, emphasizing the need for stable global supply chains and economic cooperation. China has been actively working to expand its trade partnerships with countries like Vietnam, Malaysia, and Cambodia, aiming to mitigate the impact of U.S. tariffs. However, despite these efforts, no single country can fully replace the trade volume China previously had with the U.S., which played a cruci...
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