Category Archives: economy

China inflated its credit bubble, again – Victor Shih

In its fight against an economic slowdown, China has opened the bank vaults again and pumped more credit into its financial systems, again, says political analyst Victor Shih, author of Factions and Finance in China: Elite Conflict and Inflation to the New York Times. It is an old solution in a country where debts are already at dangerous levels, he says.

Is shadow banking back in grace? – Sara Hsu

After a lengthy crackdown on shadow banking, this risky financial tool seems to be back in grace as China’s economy is slowing down. It is the pragmatic way China’s financial authorities deal with the economy, financial analyst Sara Hsu says. Shadow banking will be allowed, as long as it works, she writes in China Focus.

Why the trade talks help foreign companies in China only marginally – Mark Schaub

US President Donald Trump describes the upcoming deal between China and the US to end the trade war as “comprehensive”. China veteran Mark Schaub sees only marginal changes and certainly disagrees with a report in Bloomberg saying that most foreign companies can now work without joint ventures. Most companies can and do so since the 1980s, he tells at the BBC. And he assumes that in industries where foreign investments are tough, like publishing, telecom, and education, changes will not be sensational, he tells at the BBC.

New optimism hits China’s economy – Ashley Dudarenok

China veteran Ashley Dudarenok notices an upswing in the mood about China’s economy, she tells in her daily vlog. Prospects for the trade agreement between China and the US look good. Financial reforms, including a reduction of the VAT is in the pipeline, and president Xi Jinping supports more than ever private companies. 

Harry Broadman joins Berkeley Research Group

Harry Broadman has joined the global consulting Berkeley Research Group as a managing director and will be leading the new Emerging Marketing Practise. He will remain in Washington DC.

Labor market is down, and consumer market follows – Shaun Rein

Shaun Rein, Shanghai-based author of the bestseller, The War for China’s Wallet: Profiting from the New World Order, has for a long time been a bull on China’s economy. But now he sees the labor market going downhill, and consumer appetite following suit, he tells in Forbes.

Foreign investments law: what is going to change? – Mark Schaub

Some analysts see in the new Foreign Investment Law a way for China to placate the US, but China veteran Mark Schaub sees here no quick fix triggered off by the trade war. It is the first new foreign investment law since the Berlin Wall came down, he says to the BBC News Service.

China has most real estate billionaires – Rupert Hoogewerf

The Hurun Global Real Estate Rich List, released last week, shows that China has the most real estate billionaires, followed by the US. The country’s building boom caused by massive urbanization explains the top position, says Rupert Hoogewerf, chief researcher of the Hurun rich list to Barron’s.

Foreign investment law: no big changes – Victor Shih

China brought the newly adopted foreign investment law with some fanfare, but political analyst Victor Shih does not expect the law will be a game changer, as some hope, he tells at the Deutsche Welle. A level playing field for foreign and domestic companies in China might be far away.

China women lack leverage in both politics and salaries – Zhang Lijia

Women in China might be regaining some tracking in the economy, they are still lacking political leverage and earn on average less than men, says author Zhang Lijia at Wion. “According to Zhang, if China wants to improve the lives of women, it will first need to accord them equal status in society and politics.”