World

China: An Economy 'Too Big To Fail'

Swarajya Staff

Mar 31, 2023, 05:57 PM | Updated Sep 12, 2023, 03:33 PM IST


A Secret Chinese Committee Is Compiling A List Of Replacements For The US Tech
A Secret Chinese Committee Is Compiling A List Of Replacements For The US Tech

August 30: China's Property Giant Evergrande Has Filed For Bankruptcy In NYC

China's Evergrande Group initiated bankruptcy proceedings in New York to safeguard its United States assets from creditors, while it undertakes a restructuring process.

This move reflects mounting concerns about the debt burden carried by Chinese real estate developers and the potential repercussions of their financial struggles on the world's second-largest economy.

August 17: Ahead Of Xi Jinping's India Visit, NSA Ajit Doval And Chinese Diplomat Wang Yi Discuss Early Resolution Of Border Standoff

August 16: India-China Corps Commanders' Talks: Stand-Off Continues In Ladakh As Both Sides Fail To Make Headway

August 8: China's Economy Is Feeling The Heat

China's exports fell 14.5% in July year-on-year, while imports contracted 12.4%, customs data showed on Tuesday, in the biggest decline in outbound shipments from the world's second-largest economy since February 2020.

Economy On Steroids: China’s Double-Digit Decade Of Growth Is Now History

August 3: Buy One Floor, Get Another Floor Free.

Nationwide sales of new housing by floor area dropped 26.8 per cent in 2022, sliding another 2.8 per cent on the year in the first half of 2023, according to official data.

The entire problem, explained here: House Of Cards: China’s Real Estate Problem

July 25: As the U.S. continues to tighten its export controls on semiconductors to China, domestic chip companies are calling upon Beijing for more support and urged the two sides to enhance communication to avoid making the situation even worse, Caixin has reported.

July 21: Chinese President Xi Jinping told Henry Kissinger that "old friends" like him will never be forgotten, striking an easy tone in their meeting in China's capital on Thursday, amid efforts by Beijing and Washington to mend frayed ties.

"Once again, China and the U.S. are at a crossroads of where to go from here, and once again, both sides need to make a choice," Xi told the former U.S. diplomat.

Kissinger played a key diplomatic role in normalising ties between Washington and Beijing in the 1970s when he served as secretary of state and national security advisor in the administrations of Presidents Richard Nixon and Gerald Ford.

July 18: China's Evergrande Has A $81 Billion Hole From The Housing Collapse

Chinese property developer Evergrande has reported losses of $81 billion over a two-year period, revealing the financial impact of its 2021 default that triggered a crisis in China's property sector. Evergrande, which is currently undergoing a restructuring process, disclosed losses of Rmb476 billion ($66 billion) and Rmb106 billion for 2021 and 2022 respectively.

July 17: Mounting Troubles For President Xi: China's Economy Is Not Bouncing Back Post-Pandemic

China's economy experienced a 6.3 per cent expansion in the second quarter compared to the same period last year.

This growth was primarily driven by recoveries in retail sales and the service sector, and it was partly influenced by the low base effect resulting from the COVID-19 lockdowns in 2020.

July 10: The Great Digital Wall Of China...Now For AI

China is to issue rules for generative AI as Beijing seeks to balance encouraging local companies to develop the revolutionary technology against its desire to control content. The Cyberspace Administration of China, the powerful internet watchdog, aims to create a system that will force companies to gain a licence before they can release generative AI systems.

July 7: US Planning Naval Logistics Hubs In India To Challenge China In The Indo-Pacific

The United States and India have entered into a comprehensive defence and economic partnership aimed at transforming India into a key centre for resupplying and maintaining naval vessels in the south Asia region.

July 5: Beijing imposed restrictions on exports of two obscure yet crucial metals — gallium and germanium — in an escalation of the trade war on technology with the US and Europe.

Starting 1 August, the Chinese Ministry of Commerce said Gallium and germanium, along with their chemical compounds, will be subject to export controls, a move it called essential to “protect national security and interests”.

June 26: The Chinese Economy Is Facing A Unique Problem

Chinese banks are encountering a new challenge in their earnings as an increasing number of homeowners are paying off their mortgages ahead of schedule.

Beijing wanted to loosen the interest rates to ensure people borrow more. However, the gamble has backfired, and people, instead, are using cheap credit to pay off the previous debt, taken at a higher rate of interest. Not only is this doing nothing to increase the consumer demand, it is now hurting the bank's revenues.

June 24: China Helps Pakistan Build Defence Infrastructure Along Line Of Control

China has been assisting the Pakistan Army in enhancing its defence infrastructure, providing unmanned aerial vehicles, installing communication towers, and laying underground cables along the Line of Control (LoC), according to officials.

Officials state that this is part of China's efforts to strengthen its position as Pakistan's all-weather friend while ensuring the safety of its growing enclaves in Pakistan-occupied Kashmir (PoK).

June 23: An Economic Slowdown In China Could Trigger Crisis In Taiwan

A United States think tank has issued a comprehensive report warning that the sluggish Chinese economy, coupled with President Xi Jinping's potential embrace of nationalism during his unprecedented third term, could escalate the likelihood of a military crisis in the Taiwan Strait.

The report, released by a bipartisan task force convened by the Council on Foreign Relations, covers various aspects of US-Taiwan relations, including politics, diplomacy, economy, and security.

June 21: China blocked a proposal by India and the US at the United Nations on Tuesday (20 June), which aimed to designate Sajid Mir, a terrorist from Pakistan-based Lashkar-e-Taiba, as a global terrorist for his involvement in the 26/11 Mumbai terror attacks.

The proposal, moved by the US and co-designated by India, sought to blacklist Mir under the 1267 Al-Qaeda Sanctions Committee of the UN Security Council as a global terrorist.

June 20: The Chinese Are Unable To Get Their Post-Covid Economy Going

China's central bank took anticipated measures on Tuesday by reducing key lending rates, including a benchmark tied to mortgages. This move aims to stimulate investment and consumption following a slowdown in the country's post-pandemic recovery over the past five months.

After their monthly meeting, the People's Bank of China (PBOC) lowered the one-year loan prime rate by 10 basis points from 3.65% to 3.55 per cent. Simultaneously, they trimmed the five-year rate by 10 basis points from 4.3 per cent to 4.2 per cent. These adjustments will result in reduced borrowing costs for both companies and households.

.June 20: Blinken In China: Are Beijing And Washington Rethinking Their Relationship?

Chinese President Xi Jinping met visiting U.S. Secretary of State Antony Blinken on Monday as the world's two biggest economies seek to patch up ties that have frayed over geopolitical, trade and technology tensions. The meeting was part of a series Blinken held with top Chinese officials on his two-day visit to Beijing.

June 16: After Tim Cook, Bill Gates Is Warming Up To The Chinese

 Xi Jinping called Bill Gates "an old friend" and said he hoped they could carry out activities together beneficial to both China and the United States, in the Chinese president's first meeting with a foreign entrepreneur in years.

Gates' visit came ahead of a long-delayed visit by U.S. Secretary of State Antony Blinken to China aimed at stabilizing relations between the world's two largest economies and strategic rivals.

June 15: China's Post-Covid V-Shaped Recovery Plan Is Not Working

In response to weakening property sales, industrial production, and persistent youth joblessness, China has implemented measures to lower borrowing costs.

The People's Bank of China (PBOC) announced a reduction in the rate on one-year, medium-term lending facility loans to banks worth 237 billion yuan ($33 billion) by 10 basis points, bringing it down to 2.65 per cent from 2.75 per cent.

June 14: Now, China Wants To Broker A Deal Between Israel And Palestine

China has offered to mediate between Palestinian factions and facilitate peace talks with Israel, signaling its intent to expand its diplomatic role in the Middle East.

Chinese President Xi Jinping and Palestinian Authority (PA) leader Mahmoud Abbas met in Beijing and announced the signing of a strategic partnership. China has been increasing its political presence in the region and hopes to rival the US as a broker, as well as replace Russia's declining influence.

June 13: No Strings Attached

Chinese government has decided not to renew the visas of the last two Indian journalists who were working in China. This decision was apparently made because India took similar action against the two remaining Chinese state media journalists in India this month.

One of the Indian journalists who worked for the Hindustan Times has already left China. His visa had expired and he was unable to get it renewed.

The Press Trust of India has the last remaining reporter in China, and his visa will expire later this month. As a result of the Chinese government's decision, he will have to leave the country as well.

June 12: China's Demographic Problem Is Steadily Getting Worse

China's marriage registrations have reached a record low in 2022, posing challenges for policymakers attempting to address the country's declining birthrate and shrinking population.

From July 2021: CCP's Latest Idea: Let's Make Education Cheaper So People Have More Kids

June 11: China And Russia Are Fast Becoming Leaders In Nuclear Energy As The West Falls Behind

Russia and China have emerged as major players in the field of nuclear power, collectively accounting for nearly 70 per cent of reactors under construction or in the planning stages worldwide.

In contrast, Japan, the United States, and Europe have experienced a slowdown in their nuclear industries following the Fukushima Daiichi nuclear disaster in 2011.

June 9: China's Tech Companies Want To Be A Part Of India's Growth Story

China-linked tech companies are exploring new avenues to re-enter the Indian market, raising hopes among investors that trade tensions between the two countries can be overcome.

June 6: China Has A Local Debt Problem

China is laden with municipal debt — about 156tn yuan of it according to Goldman Sachs, a lot of it held through balance sheets via financing vehicles (local government financing vehicles/“LGFVs”) favoured by local government.

LONGVIEW CHINA:

A New Cold War

Beijing and Washington are now engaged in a trade cold war. What began as many described an unnecessary diplomatic hammering under President Donald Trump is now an accepted bipartisan policy. Starting with semiconductors, the US is turning on the heat against China.

Where is this cold war heading?

India Versus China

The world's third-largest economy and biggest free-market in the making, India is emerging as a key challenger to conventional China, that prided itself on ease of doing business, ushering investments, and being the hub for easy labour. Post-Covid, is it India's time to shine?

The Music Is Slowing Down

For almost a decade after the financial crisis of 2008, it was China that was the global economic hotspot with investments coming in from world over. That party, unfortunately for Xi, is over, as Covid-zero policy coupled with a general slowdown in consumption threatens China's economy.

Troubles In The Taiwan Strait

For China, the question of Taiwan is not political, but civilisational, and one of Xi's primary priorities. Given the West's failure to curb the Russian misadventures in Ukraine, along with that infamous exit from Afghanistan and Iraq, will China go for Taiwan after Hong Kong?

The Ghosts Of China

In the second-half of 2021, authorities in China demolished 15 skyscrapers with 4.6 tonnes of explosives across 85,000 blasting points, all in 45 seconds. The buildings, unoccupied for almost a decade, were described as an eye-sore in the local newspapers. What is the Chinese 'Ghost Story' all about?

Wall Street's Eternal Love For Beijing

It won't be an exaggeration to state that the biggest pro-China lobby in the West Wing is the Wall Street itself, followed by the Silicon Valley. From Apple to Goldman, everyone wants to have a piece of the Chinese pie. In China, however, with great market size, comes great crackdowns.

Xi Versus Rest Of The World

In the 1990s, the Chinese drew critical lessons. One, from the fall of USSR. Two, from the US' quick victory in the Middle East. And three, from the protests at Tiananmen Square. Biding their time, the Chinese are now upping the ante, swiftly infiltrating global institutions.

The Infamous Belt And Road Initiative

Debt-traps, strategic takeovers, and wolf-warrior diplomacy have ushered a troubled phase for Jinping's Belt and Road Initiative. The $2 trillion plan, with key investments in Europe, Africa, and Latin America, is now under scanner from policymakers world over.


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