China

Car dealership groups in two provinces have gone out of business since last month in China, both of them BYD Co. retailers, evidence of the tough competition in the nation’s auto market and proof that not even selling the country’s No. 1 brand can shield businesses from financial difficulties. Car dealership groups in two provinces have gone out of business since last month in China, both of them BYD Co. retailers, evidence of the tough competition in the nation’s auto market and proof that not even selling the country’s No. 1 brand can shield businesses from financial difficulties. Xingqi Group outlets in Liaoning province have stopped delivering new cars or providing service for more than 60 customers, according to Liaoning Radio and Television Station, while more than 500 peo...

Reform, global reach and financial stability statecraft Amid developing tensions, the International Monetary Fund’s 2025 Financial Sector Stability Assessment for China arrives at a pivotal juncture. More than a domestic stocktake, it reflects the structural transformation of China’s financial system, marked by increased complexity, persistent contradictions and a steadily expanding global footprint – much of which is mediated by Chinese financial institutions. This year’s assessment invites further scrutiny of the system’s evolving resilience and policy trade-offs. Having contributed to China’s inaugural Financial Sector Assessment Program in 2010, which played a key role in helping China embark on financial reforms in the following years, I recall one main thing...

The European economy grew at around 2 to 3 per cent a year throughout the 1990s and early 2000s. But growth has never fully recovered from the 2008 financial crisis. While Europe continues to rank highly on broader measures of wellbeing, its meagre growth has fallen well behind that of the US. Europe also faces considerable economic headwinds. China is ramping up exports of goods such as cars and machinery, threatening a pillar of the European economy. Europe also lags behind China and the US in technology creation and diffusion, just as a potential artificial intelligence (AI) revolution might unlock new productivity gains. European policy-makers are making trade conditional on other policy aims, like combatting climate change, trying to make supply chains in important goods less dep...

Trump’s tariffs intensify China’s deflation crisis, exposing structural flaws. Real solutions demand wage growth, affordable housing, stronger safety nets and fairer wealth distribution. This pressure may finally force the economic overhaul China needs to escape the “middle-income trap” illusion. Economist Chen Kang looks at the issue. US President Donald Trump’s so-called global “reciprocal tariffs” have severely impacted the system of global trade, disrupted global value and supply chains, and damaged the world economy. In view of this, the International Monetary Fund (IMF) recently lowered its forecast for global economic growth in 2025 from 3.3% to 2.8%. Trump’s tariffs hurt others without any gain for the US. Across-the-board tariff increases have created a supply shock for...