Made in China 2025

Paul Haenle & Paul Triolo from Carnegie-Tsinghua Center for Global Policy
China’s “Made in China 2025” policy to upgrade its industry plays a central role in the ongoing U.S.-China trade tensions. Paul Haenle sat down with Paul Triolo, practice head of Geo-technology at the Eurasia Group, to discuss how the Chinese...

Books

04.12.18

China’s Great Wall of Debt

Dinny McMahon
Houghton Mifflin Harcourt: Over the course of a decade spent reporting on the ground in China as a financial journalist, Dinny McMahon gradually came to the conclusion that the widely held belief in China’s inevitable economic ascent is dangerously wrong.In this unprecedented deep dive, McMahon shows how, lurking behind the illusion of prosperity, China’s economic growth has been built on a staggering mountain of debt. While stories of newly built but empty cities, white elephant state projects, and a byzantine shadow banking system have all become a regular fixture in the press in recent years, McMahon goes beyond the headlines to explain how such waste has been allowed to flourish, and why one of the most powerful governments in the world has been at a loss to stop it.Through the stories of ordinary Chinese citizens, McMahon tries to make sense of the unique—and often bizarre—mechanics of the Chinese economy, whether it be the state’s addiction to appropriating land from poor farmers, why a Chinese entrepreneur decided it was cheaper to move his yarn factory to South Carolina, why ambitious Chinese mayors build ghost cities, or why the Chinese bureaucracy was able to stare down Beijing’s attempts to break up the state’s pointless monopoly over the distribution of table salt.Debt, entrenched vested interests, a frenzy of speculation, and an aging population are all pushing China toward an economic reckoning. China’s Great Wall of Debt unravels an incredibly complex and opaque economy, one whose fortunes—for better or worse—will shape the globe like never before.{chop}

Hopes Are High for China to Announce Market Access Reforms on Tuesday

Nyshka Chandran
CNBC
Xi’s speech to announce market reforms could help heal U.S.-China trade frictions.

China's Bitcoin Crackdown Has Simply Driven Trade Underground

Business Insider
China's crackdown on bitcoin has simply led to the trading going underground, according to a key player...

Exclusive: China to Name Harvard-Trained Liu He as Vice Premier Overseeing Economy - Sources

Reuters
China is set to name Liu He, a Harvard-trained economist who advises President Xi Jinping, as a vice premier overseeing the economy and financial sector, five sources familiar with the development said.

China's Eight-Year-Long Smartphone Growth Comes to an End

BBC
The decline ends eight years' growth in the world's largest mobile phone market...

‘Globalism with Chinese Characteristics’ Is on Display in Davos. but It's Not Everything It Seems

CNBC
President Xi Jinping wasn't present at this year's World Economic Forum meeting in Davos, Switzerland, but the impact of his speech championing globalization at last year's gathering lingered...

Trump Is 'Determined to Bite Somebody, and China Is the Most Likely Target,' Trade Expert Says

CNBC
A year after President Donald Trump took office, the United States' trade deficit with China looms larger than ever...

China Reports Its Fastest Economic Growth In 7 Years

NPR
China is reporting its fastest economic growth in seven years, saying its gross domestic product grew by 6.9 percent in 2017. 

China's 2017 Exports Rose 7.9% in Dollar Terms — Imports Jumped 15.9%

CNBC
China reported a 7.9 percent jump in exports and 15.9 percent rise in imports — both in dollar terms — for 2017.

Tech Titans Wage War in China's next Internet Revolution

Wall Street Journal
As Alibaba and Tencent do battle for supremacy, companies and consumers will be caught in the crossfire

China Is out of the 2018 Russia World Cup—but Its Businesses Are Not

Quartz
China is not sending a team to the 2018 Russia World Cup, to the dismay of fans. But the country’s businesses are not going to miss the world’s most popular sports event.

What Happened on China's New Silk Road in 2017

Forbes
Year four of China’s Belt and Road Initiative (BRI) is now in the books. 

China Shrugs off Debt Worries as Xi Takes Firmer Economic Grip

New York Times
It’s Xi Jinping’s economy now, and he isn’t too worried about debt.

Latin America Needs a China Strategy

Bloomberg
To judge by the pomp and shuttle diplomacy, Latin America and China are best of friends.

Google Plans Big AI Push in China

Fortune
Google is expanding its artificial intelligence, or AI research to China.

What to Do about China's "Sharp Power"

Economist
WHEN a rising power challenges an incumbent one, war often follows.

Why China's GDP Growth Rate Tells Us Nothing about Its Economy

Fortune
China clocked in GDP growth of 6.9% in the first three quarters of 2017, and is set to end the year at 6.8%. But Peking University finance professor Michael Pettis believes that the figure is no indication of the actual state of the Chinese economy.

Chinese Manufacturing Expanded More Than Expected in November

Yen Nee Lee
CNBC
China reported on Thursday that factory activity expanded at a quicker pace in November, with the official manufacturing Purchasing Managers' Index coming in at 51.8 — topping expectations...

Early China Indicators Signal That Economy Cooled This Month

Bloomberg News
Bloomberg
Confidence among China’s sales managers and steel producers waned in November, matching the mood among international investors, while sentiment among small businesses improved, according to the earliest available indicators.

Victoria's Secret Meets China's Security

Christopher Balding
Bloomberg
At one point, it must‘ve seemed like a good idea. Victoria‘s Secret, the American lingerie brand, was making a major push to expand its business globally.

China's $38 Trillion Off-Balance Sheet Binge Poses Little Risk: UBS

Bloomberg
The Chinese finance sector’s 253 trillion yuan ($38 trillion) of off-balance sheet items pose little risk because more than two-thirds of them are relatively harmless components such as custodial funds and untapped credit-card limits, said UBS Group...

'It's a Mistake to Underestimate China'

Atlantic
At the recent APEC CEO Summit in Vietnam, President Donald Trump said the United States would refocus its existing development efforts in Asia toward infrastructure investment that promotes economic growth.

Behind the Scenes, Communist Strategist Presses China’s Rise

Jane Perlez
New York Times
He was a brilliant student during the dark days of China’s Cultural Revolution. He visited America, and left unimpressed with democracy. Plucked from academia, he climbed the ladder of Beijing’s brutal politics.

China’s Three New Economic Challenges for the U.S.

Roselyn Hsueh
Washington Post
President Donald Trump is scheduled to attend the Nov. 13-14 East Asia Summit, the last stop on a lengthy Asia trip. This year’s meeting brings together the leaders of 16 Asia-Pacific countries, the United States, Canada and Russia for a discussion...

While We Obsess over Trump, China Is Making History

Fareed Zakaria
Washington Post
While news and analysis in the United States continue to be obsessed with President Trump’s daily antics and insults, halfway around the world, something truly historic just happened

Bitcoin Proves Hard to Kill in China

Gabriel Wildau
Financial Times
Chinese investors are still trading bitcoin and buying initial coin offerings, suggesting authorities in Beijing are struggling to clamp down on cryptocurrencies just weeks after announcing that public exchanges would be shut down.

Ex-Spy on What His CIA Experience Taught Him about China

Steve Inskeep
NPR
Randy Phillips spent 28 years with the CIA, most recently serving as the chief CIA representative in China. He talks about what leverage the U.S. has when it comes to managing China's ambitions...

China Harnesses Big Data to Buttress the Power of the State

James Kynge
Financial Times
The sinologist Simon Leys has described consuming China’s communist literature as akin to “munching rhinoceros sausages”. But amid the leathery verbiage generated by the 19th Communist party congress there were also some extraordinarily piquant...

China’s Global Ambitions Could Split the World Economy

Michael Schuman
Bloomberg
After the fall of the Berlin Wall, many economists and policymakers assumed the world would become one happy, prosperous economy. Aided by the spread of capitalism and technology, countries would be increasingly knit together by trade, finance, and...

China’s Skewed Sex Ratio Makes President Xi’s Job a Lot Harder

Quartz
As odd as it sounds, China’s economic policy is being held hostage by its heavily skewed sex ratio.

Which Industries Will China Set up in Xiongan, the President's Dream City?

South China Morning Post
Appointment of banking regulator to key role would boost confidence that the shrinking reform camp will still be able to influence policy

Chinese Property Boom Props up Xi’s Hopes for the Economy

Tom Hancock
Financial Times
Ocean Flower Island is a vision of luxury, Chinese-style. A man-made archipelago off the coast of the tropical island of Hainan in the South China Sea, it will boast thousands of apartments, 28 museums and 58 hotels including one which is “7-star...

China’s Reform Hopefuls Watch for Names. Only One May Matter.

Keith Bradsher
New York Times
A decade ago, this city in southeastern China had a reputation as one of the country’s grimmest, with smoggy skies, chronic traffic jams and streams so foul that they had to be paved over to contain the stench.

Move over, America. China Now Presents Itself as the Model ‘Blazing a New Trail’ for the World.

Simon Denyer
Washington Post
American presidents are fond of describing their nation as a “city on a hill” — a shining example for other nations to follow. But China is now officially in the business of styling itself as another polestar for the world, with a very different...

China Is Quietly Reshaping the World

Anja Manuel
Atlantic
The Pakistani town of Gwadar was until recently filled with the dust-colored cinderblock houses of about 50,000 fishermen. Ringed by cliffs, desert, and the Arabian Sea, it was at the forgotten edge of the earth. Now it’s one centerpiece of China’s...

How China's Financial Cracks Could Spread

Aaron Back
Wall Street Journal
Can financial turmoil in China play havoc with the rest of the world? It has already happened.

China Treats Its Foreign Aid Like a State Secret. New Research Aims to Reveal It.

Adam Taylor
Washington Post
Since the turn of the century, China has become an unavoidable global provider of foreign assistance, funding everything from opera houses in Algeria to tobacco farms in Zimbabwe.

China to Debtors: Pay up or Be Shamed

Keith Bradsher and Ailin Tang
New York Times
Troubled by huge debts run up by big state companies and politically connected local governments, China is taking steps instead to go after the little guys.

What We Know about China’s 19th Party Congress and the Possible Economic Fallout

Sara Hsu
Forbes
On October 18, China will hold its 19th National Party Congress, which will provide broad indications for economic policy in the coming years. While it has been projected that there will be significant changes among the top party members, President...

In China, Cryptocurrency Sales Persist in the Shadows

Chuin-Wei Yap
Wall Street Journal
Three days after Chinese regulators outlawed cryptocurrency fundraising in early September, a woman met with half a dozen individuals at a Beijing golf club to pitch a digital-currency investment opportunity.

Books

09.27.17

Cracking the China Conundrum

Yukon Huang
China’s rise is altering global power relations, reshaping economic debates, and commanding tremendous public attention. Despite extensive media and academic scrutiny, the conventional wisdom about China’s economy is often wrong. Cracking the China Conundrum provides a holistic and contrarian view of China’s major economic, political, and foreign policy issues.Yukon Huang trenchantly addresses widely accepted yet misguided views in the analysis of China’s economy. He examines arguments about the causes and effects of China’s possible debt and property market bubbles, trade and investment relations with the West, the links between corruption and political liberalization in a growing economy, and Beijing’s more assertive foreign policies. Huang explains that such misconceptions arise in part because China’s economic system is unprecedented in many ways—namely because it’s driven by both the market and state—which complicates the task of designing accurate and adaptable analysis and research. Further, China’s size, regional diversity, and uniquely decentralized administrative system pose difficulties for making generalizations and comparisons from micro to macro levels when trying to interpret China’s economic state accurately.This book not only interprets the ideologies that experts continue building misguided theories upon, but also examines the contributing factors to this puzzle. Cracking the China Conundrum provides an enlightening and corrective viewpoint on several major economic and political foreign policy concerns currently shaping China’s economic environment. —Oxford University Press{chop}Related Reading:“What the West Gets Wrong About China’s Economy,” Yukon Huang, Foreign Affairs, September 14, 2017“Challenging Conventional Wisdom,” Chen Weihua, China Daily, April 28, 2017“Cracking China’s Debt Conundrum,” Yukon Huang, Financial Times, December 6, 2016“Despite Slower Growth, China’s Economy Is Undergoing Major Changes,” NPR Interview with Yukon Huang, January 19, 2016

Books

09.20.17

China’s Great Migration

Bradley Gardner
China’s rise over the past several decades has lifted more than half of its population out of poverty and reshaped the global economy. What has caused this dramatic transformation? In China’s Great Migration: How the Poor Built a Prosperous Nation, author Bradley Gardner looks at one of the most important but least discussed forces pushing China’s economic development: the migration of more than 260 million people from their birthplaces to China’s most economically vibrant cities. By combining an analysis of China’s political economy with current scholarship on the role of migration in economic development, China’s Great Migration shows how the largest economic migration in the history of the world has led to a bottom-up transformation of China.Gardner draws from his experience as a researcher and journalist working in China to investigate why people chose to migrate and the social and political consequences of their decisions. In the aftermath of China’s Cultural Revolution, the collapse of totalitarian government control allowed millions of people to skirt migration restrictions and move to China’s growing cities, where they offered a massive pool of labor that propelled industrial development, foreign investment, and urbanization. Struggling to respond to the demands of these migrants, the Chinese government loosened its grip on the economy, strengthening property rights and allowing migrants to employ themselves and each other, spurring the Chinese economic miracle.More than simply a narrative of economic progress, China’s Great Migration tells the human story of China’s transformation, featuring interviews with the men and women whose way of life has been remade. In its pages, readers will learn about the rebirth of a country and millions of lives changed, hear what migration can tell us about the future of China, and discover what China’s development can teach the rest of the world about the role of market liberalization and economic migration in fighting poverty and creating prosperity. —Independent Institute{chop}

China Is Stumbling Hard at Acquiring the High-Tech Chip Companies It Wants So Badly

Josh Horwitz
Quartz
US president Donald Trump on Wednesday vetoed a Chinese private-equity firm’s proposed $1.3 billion purchase of Lattice Semiconductor, an Oregon-based chip manufacturer.

China to Shut Bitcoin Exchanges

Chao Deng
Wall Street Journal
Chinese authorities are ordering domestic bitcoin exchanges to shut down, delivering a heavy blow to once-thriving trading hubs that helped popularize the virtual currency pushing it to recent record highs.

China Steps up Curbs on Virtual Currency Trading

Peng Qinqin, Wu Yujian and Han Wei
Chinese regulators ordered a halt to all virtual currency trading platforms in the country, acting to further rein in risks related to cryptocurrencies, Caixin learned from a source close to regulators.

China's Export Engine Slows as Imports Maintain Steady Gains

Bloomberg News
Bloomberg
China’s export growth slowed as global demand for the country’s products moderated, while imports remained robust as investment at home aided demand.

Chinese Premier to Discuss Economy with Int'l Institution Chiefs

Xinhua
Xinhua
Chinese Premier Li Keqiang will hold a roundtable meeting with leaders of six major international economic and financial institutions in Beijing next Tuesday, Foreign Ministry spokesperson Geng Shuang said on Wednesday.

China’s War on Smog Shakes up Ports; Tianjin Loses, Rivals Benefit

Meng Meng and Josephine Mason
Reuters
China’s war on smog is shaking up the country’s busiest ports, which handle billions of tonnes of cargo a year, forcing Tianjin to overhaul its business as northern rivals snare a greater share of vast coal and iron ore shipments, results show.