China

<strong>Economic Impact of Chinese invasion of Taiwan</strong>
23Dec mmBy Mike TrudellNo Comments
Asia, China

Economic Impact of Chinese invasion of Taiwan

A recent tweet on Chinese strategy with regard to Taiwan is quite revelatory. A book titled “If China Attacks” being sold in Taipei was purchased by a NG activist named Cynthia Iuun. Sometime after she had purchased the book she started receiving calls from anonymous callers, obviously Chinese asking what she thought of the book. Clearly, a Chinese intelligence psychological warfare operation ahead of the Presidential Elections in Taiwan, the narrative also indicates the larger Chinese strategy for eventually reunited Taiwan with the Chinese mainland. The very task of estimating an eventual takeover by China is challenging to say the least. In this context, it is worth citing Derek Grossman who recently tweeted that, "Chinese President Xi Jinping bluntly told President Joe Biden during th...
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After a rocky recovery, China’s economy will confront significant challenges in 2024.
22Dec mmBy Brian ThompsonNo Comments
China, World

After a rocky recovery, China’s economy will confront significant challenges in 2024.

The world’s second-largest economy is heading into 2024 on a precarious footing amid deep-seated structural issues. The Chinese economy’s precarious footing looks set to continue into 2024, as deep-seated structural issues and Chinese President Xi Jinping’s consolidation of political control threaten to dampen growth. China’s reopening after the lifting of its harsh “zero-COVID” restrictions in January coincided with challenging economic conditions overseas, as soaring inflation made consumers less inclined to buy Chinese goods. At home, Chinese consumers were wary to start spending again after nearly two years of lockdowns and border closures. In July, China bucked the global trend and entered a period of deflation, which it struggled to exit in the second half of the year. ...
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In uncertain economic times, China’s young compete for solid government positions.
16Dec mmBy Brian ThompsonNo Comments
China, World

In uncertain economic times, China’s young compete for solid government positions.

The number of candidates taking China’s civil service exam reaches a record high as graduates seek secure jobs. But only a lucky few will land employment in the government. A good result on China’s annual national civil service exam is a requirement for any Chinese candidate who wants to be considered for the tens of thousands of vacant civil service jobs that the government seeks to fill every year. When 22-year-old recent graduate Du Xin sat down for the exam in December last year at a test centre in the city of Shijiazhuang in China’s Hebei province, she had been studying vigorously for six months. Some applicants even hire tutors to prepare them for the exam. Candidates are tested broadly on their general knowledge and analytical skills while in more recent years they have...
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Aiming for a rebound in 2024, China promises to increase domestic demand.
12Dec mmBy Joe RodriguezNo Comments
China, World

Aiming for a rebound in 2024, China promises to increase domestic demand.

China’s leaders pledged to continue proactive fiscal policies and prudent monetary policies.Policy language stresses on stability and “moderately strengthening” fiscal policy are similar to a Politburo statement last Friday.China’s leaders commit to nine-point plan to revive the economy with a focus on high-quality development, including measures to boost domestic demand and tackle the spiraling real estate crisis in the world’s second-largest economy. China’s leaders vowed to boost domestic demand, prioritize the development of strategic sectors and tackle the country’s real estate crisis, following a key meeting that laid out economic priorities for the new year. Under a new slogan pledging to achieve stability through economic progress, Chinese leaders said it’s necessary to over...
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China instructs state-run businesses to monitor their finances as risk becomes a buzzword in the economy.
6Dec mmBy Joe RodriguezNo Comments
China, World

China instructs state-run businesses to monitor their finances as risk becomes a buzzword in the economy.

China’s state assets supervisor has warned government firms to be mindful of financial risk as smaller banks, property firms report heavy debt loads Cautionary words show concerns over financial health not limited to institutions more local in scope China’s state assets watchdog has identified four areas within enterprises run by the central government worthy of careful monitoring – trust companies, finance subsidiaries, private equity and commercial factoring – indicating a tendency towards risk control running deep throughout the country’s economy. Including state-owned industrial giants in a call for mitigation of systemic shortfalls shows the uncertainty generated by solvency concerns over local government financing vehicles, property firms and smaller banks is not strictly...
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<strong>Rising unemployment troubles Chinese youth</strong>
6Dec mmBy Michael SmithNo Comments
China

Rising unemployment troubles Chinese youth

The rising unemployment rate in China amid the realty crisis-led economic slowdown and the Beijing government's inability to create enough jobs have caused panic among the youth. The competition for limited government posts has become fierce. The young people are compelled to take up menial jobs or to resort to farming jobs.     Against the backdrop of economic slowdown, state interventions and disruptions due to Covid pandemic, China has witnessed shut down of several private companies and the exit of many multinationals.[1][2][3][4] This has led the unemployment to rise, hitting the young graduates and professionals the most. Wang Jun, chief economist at Huatai Asset Management, said "Youth unemployment will stay with us for quite a long time, at least for five-to-10 y...
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<strong>The inhuman ‘996’ work culture of China</strong>
6Dec mmBy Joe RodriguezNo Comments
China

The inhuman ‘996’ work culture of China

Karl Marx would have been turning in his grave to read the AP report from Miami dated November 15, 2023, that China leads the list of labour abusers, akin to slavery, as found on board fishing vessels worldwide. Should be unthinkable in communist China, as Marx had dreamt of a communist society where labour would be free from exploitation. The research, carried out by Washington-based non-profit organization Financial Transparency Coalition that tracks illicit money flows, has detected hazardous, forced working conditions sometimes akin to slavery, on nearly 500 industrial fishing vessels around the world. A quarter of these vessels, suspected to be abusing workers, were flying the flag of the People’s Republic of China. The Chinese distant water fleets dominate fishing in the high ...
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China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability
4Dec mmBy Michael SmithNo Comments
Asia, China, Market

China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability

China's real estate sector is facing a severe crisis, prompting the government to encourage financial institutions to support struggling developers burdened by massive debt. The dilemma for Beijing lies in defusing local government debt risks while propping up the real economy to sustain growth. This critical situation highlights the intricate dance between economic stability and social harmony, as the housing issue is closely tied to both. The government's recent call for support underscores the gravity of the situation, especially with major developers like China Evergrande on the verge of collapse. The future looks bleak for China’s real estate sector. Even government support may not be enough to ameliorate this crisis. 2.         China's prop...
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China received a “C” on its most recent economic data.
1Dec mmBy Michael SmithNo Comments
China, World

China received a “C” on its most recent economic data.

The latest Chinese economic data was underwhelming, so the government may need to stay late to work on a better solution. What does this mean? China’s economy is used to making the world jealous: the country overtook Italy, France, the UK, Germany and Japan’s economies between 2000 and 2010, and it’s held the silver spot behind the US ever since. So it’s understandable that after building up quite the reputation, the Chinese government is less than delighted about the economy’s current pause. November’s data showed that the manufacturing sector was even quieter than the month before, as tentative shoppers – conscious of the economy’s shaky ground – held back from ordering anything they didn’t actually need. And with the services sector also clocking in lower...
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China’s economic development from the divergence of Xi to the vision of Deng
30Nov mmBy Mike TrudellNo Comments
China, World

China’s economic development from the divergence of Xi to the vision of Deng

Had Deng Xiaoping not sought and received advice from Japan and Singapore in his creation of ‘socialism with Japanese and Singaporean characteristics’, China’s economic miracle would have been less miraculous. China’s current economic woes stem largely from Xi Jinping’s abandonment of this paradigm. When Mao Zedong died in 1976, China was the second poorest among 140 countries. Deng Xiaoping proclaimed a remedy of ‘reform and opening up’ to foreign countries, drawing from previous Asian success stories. During an October 1978 trip to Japan, Deng met with business leaders, toured a Nissan auto plant and saw China’s future. ‘We are a backward country, and we need to learn from Japan’, he told a press conference in Tokyo. His first official foreign economic advisor was Saburo Okita, on...
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