China Tightens Monetary Policy by Raising Money Market Rates

Bloomberg
China’s central bank tightened monetary policy by raising the interest rates it charges in open-market operations and on funds lent via its Standing Lending Facility as it shifts to reining in asset prices and inflation.

Viewpoint

02.02.17

The Art of a China Deal

James McGregor
By his own admission, President Donald J. Trump is a brilliant businessman, a master negotiator, an exceptional deal maker, somebody who always wins. When it comes to China, he is prepared to do just that—win. “I’ve read hundreds of books about...

As Trump Sows Tensions with Mexico, Beijing May Reap Rewards

Nyshka Chandran
CNBC
As President Donald Trump wages a public and bellicose battle with the Mexican government, China may emerge as the victor.

China Labor Unrest Spreads to ‘New Economy’

Hudson Lockett
Financial Times
Retail and logistics sectors hit by strikes and protests once focused on industry

China’s ‘Silk Road’ Push Stirs Resentment, Protest in Sri Lanka

Voice of America
China signed a deal with Sri Lanka late last year to further develop the strategic port of Hambantota and build a huge industrial zone nearby, a key part of Beijing’s ambitions to create a modern-day “Silk Road” across Asia.

Books

02.01.17

Unlikely Partners

Julian Gewirtz
Unlikely Partners recounts the story of how Chinese politicians and intellectuals looked beyond their country’s borders for economic guidance at a key crossroads in the nation’s tumultuous 20th century. Julian Gewirtz offers a dramatic tale of competition for influence between reformers and hardline conservatives during the Deng Xiaoping era, bringing to light China’s productive exchanges with the West.When Mao Zedong died in 1976, his successors seized the opportunity to reassess the wisdom of China’s rigid commitment to Marxist doctrine. With Deng Xiaoping’s blessing, China’s economic gurus scoured the globe for fresh ideas that would put China on the path to domestic prosperity and ultimately global economic power. Leading foreign economists accepted invitations to visit China to share their expertise, while Chinese delegations traveled to the United States, Hungary, Great Britain, West Germany, Brazil, and other countries to examine new ideas. Chinese economists partnered with an array of brilliant thinkers, including Nobel Prize winners, World Bank officials, battle-scarred veterans of Eastern Europe’s economic struggles, and blunt-speaking free-market fundamentalists.Nevertheless, the push from China’s senior leadership to implement economic reforms did not go unchallenged, nor has the Chinese government been eager to publicize its engagement with Western-style innovations. Even today, Chinese Communists decry dangerous Western influences and officially maintain that China’s economic reinvention was the Chinese Communist Party’s achievement alone. Unlikely Partners sets forth the truer story, which has continuing relevance for China’s complex and far-reaching relationship with the West. —Harvard University Press{chop}

Yuan’s Gain Has Surprised Trump, Incoming Ambassador Branstad Says

Mario Parker
Bloomberg
Donald Trump probably hasn’t followed through on campaign pledges to label China a currency manipulator because the yuan’s been stronger than he anticipated, the U.S. President’s pick as ambassador to China said Tuesday.

China Is Facing a Catch-22 Dilemma

Jacob Shapiro
Business Insider
A subsidiary of the Industrial and Commercial Bank of China (ICBC) has recently reached deals with seven Chinese state-owned enterprises to convert about 60 billion yuan ($8.7 billion) of unpaid loans into equity shares.

Make China Great Again

David Leonhardt
New York Times
America’s rivals and enemies have enjoyed a very good 10 days.

Asia Pacific Nations Are Tilting Closer toward China as Trump Declares ‘America First’

Evelyn Cheng
CNBC
There are strong signs that countries in Asia and the Pacific region are turning away from the United States and tilting toward China as the Trump administration emphasizes “America First.”

For China, a Rethink on Donald Trump

Andrew Browne
Wall Street Journal
Beijing initially welcomed a tough negotiator—then came the Mexico episode

How China Can Win as America Turns Inward

Newsweek
As the U.S. was backing away from a major international agreement, China continued its push to strike pacts with other nations.

Billionaire Is Reported Seized from Hong Kong Hotel and Taken into China

Michael Forsythe
New York Times
A Chinese-born billionaire who has forged financial ties with some of the country’s most powerful families was taken by the Chinese police from his apartment at the Four Seasons Hotel in Hong Kong late last week and spirited across the border

U.S.-China War Increasingly a ‘Reality,’ Chinese Army Official Says

Evelyn Cheng
CNBC
China is preparing for a potential military clash with the United States, according to an article on the Chinese army’s website.

Donald Trump Is Handing China the World

David Axe
Daily Beast
While Trump focuses on building up the U.S. Navy to counter China, Beijing is gobbling up the other segments of global relations that used to be dominated by the U.S.

With Pen Plan, China Etches Nationalist Economic Policy

Chuin-Wei Yap
Wall Street Journal
New ability to manufacture pen nibs gives China ability to produce whole pen—and a point of pride

Conversation

01.27.17

TPP is Dead, Now What?

David Dollar, Charlene Barshefsky & more
On Monday, on his first full working day as president, Donald Trump officially withdrew the United States from the Trans-Pacific Partnership (TPP), a 12-nation trade pact that did not include China and did not have the votes to...

As Trump Stresses ‘America First,’ China Plays the World Leader

Ben Blanchard
Reuters
China is calmly mapping out global leadership aspirations from trade to climate change, drawing distinctions between President Xi Jinping’s steady hand and new U.S. President Donald Trump

Look out China, Mexico, Japan and Germany: How Trade Shapes Trump’s Worldview

Simon Denyer
Washington Post
In a nutshell, John Robb argues that trade—rather than national security—dominates Trump’s foreign policy thinking, inverting decades of U.S. practice.

China Likely to Stick to a Two-Child Policy

Wall Street Journal
Government plan cites demographic challenges, with country’s population seen peaking at 1.45 billion in 2030

Donald Trump Could Be Starting a New Cold War With China. But He Has Little Chance of Winning

Charlie Campbell
Time
The new U.S. administration has been testing Beijing with provocative stances on trade, Taiwan and the South China Sea. But starting up a Cold War with China is a highly risky strategy

A U.S.-China Role Switch: Who’s the Globalist Now?

Andrew Browne
Wall Street Journal
Xi Jinping sees a window as Donald Trump stirs masses with slogans

Books

01.23.17

China as an Innovation Nation

Edited by Yu Zhou, William Lazonick, and Yifei Sun
This volume assesses China’s transition to innovation-nation status in terms of social conditions, industry characteristics, and economic impacts over the past three decades, also providing insights into future developments.Defining innovation as the process that generates a higher quality, lower cost product than was previously available, the introductory chapter conceptualizes the theory of an innovation nation and the lessons from Japan and the United States. It outlines the key governance, employment, and investment institutions that China must build for such transition to occur, and examines China’s challenges and strategies to innovate in the era of global production systems. Two succeeding chapters explain the evolving roles of the Chinese state in innovation, and the new landscape of venture capital finance. The remaining chapters provide studies of major industries, which contain analyses of the evolving roles of investment by government agencies and business interests in the process. Included in these studies are traditional industries such as mechanical engineering, railroads, and automobiles; rapidly evolving and internationally highly integrated industries such as information-and-communication-technology (ICT); and newly emerging sectors such as wind and solar energy.Written by leading academics in the field, studies in this volume reveal Chinese innovation as diverse across industries and enterprises and fluid over time. In each sector, we observe continued co-evolution of state policy, market demand, and technology development. The strategies and structures of individual companies and industrial ecosystems are changing rapidly. The sum total of the studies is a great step forward in our understanding of the industrial foundations of China’s attempt to become an innovation nation. —Oxford University Press{chop}

Diplomat Says China Would Assume World Leadership If Needed

Reuters
China does not want world leadership but could be forced to assume that role if others step back from that position, a senior Chinese diplomat said on Monday

China’s Economy Grows Strongly, Yet Central Bank Eases Policy

Keith Bradsher
New York Times
China’s economy firmly hit its growth target last year, but this is China, where figures are sometimes doubted and where economists look for signs of strain underneath the numbers.

Asian Shares Mixed as Investors Eye Trump’s Inauguration

Aza Wee Sile
CNBC
Asian markets were a mixed bag on Friday after China’s latest set of economic data suggest the economy is recovering, even as risk sentiment sours ahead of Donald Trump’s inauguration

A Communist Party Man at Davos

Atlantic
Xi Jinping tries to charm the capitalist elite

U.S. Commerce Nominee Ross Calls China ‘Most Protectionist’ Country

David Lawder
Reuters
Billionaire investor Wilbur Ross, U.S. President-elect Donald Trump’s choice for commerce secretary, voiced sharp criticism of China’s trade practices on Wednesday

China Is America’s “Vendor,” and Needs to Treat Its Biggest Customer Better, Trump’s Commerce Pick Says

Heather Timmons
Quartz
China loomed large in the US senate’s confirmation hearing today of Wilbur Ross for commerce secretary.

Donald Trump and China’s Year of the Hawk

Melinda Liu
Politico
A brash new U.S. president is on a collision course with a Chinese leader bent on consolidating power. ...

China Builds World’s Biggest Solar Farm in Journey to Become Green Superpower

Tom Phillips
Guardian
Vast plant in Qinghai province is part of China’s determination to transform itself from climate change villain to a green energy colossus

Viewpoint

01.19.17

Do We Want to Live in China’s World?

Robert Daly
Each weekday morning, I cross D.C.’s National Mall and pass a sign on Constitution Avenue bearing an epigram by the U.S. architect Daniel Burnham: Make No Little Plans. And every morning, these words make me think not of Burnham’s 20th century...

Conversation

01.18.17

U.S.-China Flashpoints in the Age of Trump

Zha Daojiong, Isaac Stone Fish & more
Over the past year, Donald Trump has vowed to “utterly destroy” ISIS, considered lifting sanctions on Russia, promised to cancel the Paris climate agreement and “dismantle” the Iran nuclear deal. But many of his most inflammatory statements are...

China’s Top Economic Official Braces for Possible Trade War

Chris Buckley and Keith Bradsher
New York Times
Liu He has struggled to overcome resistance to a program of measured economic liberalization and more open markets that he argues is critical to China’s long-term economic health

First Freight Train from China to Britain Arrives in London

Ritvik Carvalho
Reuters
The first China-to-Britain freight train arrived in London on Wednesday after a 7,500-mile journey, marking a milestone in China’s push to build commercial links across Europe and Asia.

China Cancels 103 Coal Plants, Mindful of Smog and Wasted Capacity

Michael Forsythe
New York Times
China is canceling plans to build more than 100 coal-fired power plants, seeking to rein in runaway, wasteful investment in the sector while moving the country away from one of the dirtiest forms of electricity generation

The Chinese Government Finally Admitted That Its Economic Data Was Made Up

Zheping Huang
Quartz
For many who have long believed that China’s economic growth figures seemed too good—and tidy—to be true, they now have official confirmation of that skepticism.

In Davos, Xi Makes Case for Chinese Leadership Role

Noah Barkin and Elizabeth Piper
Reuters
Chinese President Xi Jinping offered a vigorous defense of free trade at the World Economic Forum in Davos on Tuesday in a speech that underscored Beijing’s desire to play a greater global role

New U.S.-China Rivalry Risks Lethal Confrontation

Andrew Browne
Wall Street Journal
Provocations by President-elect Trump over trade and territory could escalate into armed conflict

China’s Oil Collapse Is Unintentionally Helping OPEC

Bloomberg
OPEC’s campaign to prop up oil prices is getting unlikely support from its biggest customer.

Welcome to an Emerging Asia: India and China Stop Feigning Friendship while Russia Plays All Sides

Harsh V Pant
Quartz
After a few timid signs of warming, Sino-Indian relations seem to be headed for the freezer.

China’s Xi Set for Star Turn at Davos Gathering

Tom Mitchell and Charles Clover
Financial Times
President aims to show he is one of the few responsible adults left on the global stage

China Overseas Investment Spree Set to Run Out of Steam

Lingling Wei
Wall Street Journal
A government think tank predicts China’s direct investment overseas, after years of robust gains, is likely to decline in 2017

Ambassador to China Shares Lessons Learned with the Next Administration

NPR
Democrat Max Baucus, the U.S. ambassador to China since 2014, is preparing to hand over the post to his successor. He discusses the future of the U.S.-China relationship.

Japan And China Are Competing To Win Over The Philippines

Ralph Jennings
Forbes
Philippine President Rodrigo Duterte is pushing away the United States in favor of its geopolitical rival China. But the man in office still likes Japan.

Obama Takes Parting Shot at China with WTO Aluminium Case

Shawn Donnan
Financial Times
U.S. is challenging Beijing’s financing of its industries with low-cost loans

China Banks Extend Record 12.65 Trillion Yuan in Loans in 2016 as Debt Worries Mount

Sue-Lin Wong and Lusha Zhang
Reuters
China’s banks extended a record 12.56 trillion yuan ($1.82 trillion) of loans in 2016 as the government encouraged more credit-fueled stimulus to meet its economic growth target

Books

01.11.17

Taiwan’s China Dilemma

Syaru Shirley Lin
China and Taiwan share one of the world’s most complex international relationships. Although similar cultures and economic interests have promoted an explosion of economic ties between them since the late 1980s, these ties have not led to an improved political relationship, let alone progress toward the unification that both governments once claimed to seek. In addition, Taiwan’s recent Sunflower Movement succeeded in obstructing deeper economic ties with China. Why has Taiwan’s policy toward China been so inconsistent?Taiwan’s China Dilemma explains the divergence between the development of economic and political relations across the Taiwan Strait through the interplay of national identity and economic interests. Using primary sources, opinion surveys, and interviews with Taiwanese opinion leaders, Syaru Shirley Lin paints a vivid picture of one of the most unsettled and dangerous relationships in the contemporary world, and illustrates the growing backlash against economic liberalization and regional economic integration around the world. —Stanford University Press{chop}

China Delegation Reportedly Open to Meeting Trump’s Team at Davos

Gemma Acton
CNBC
China’s President Xi Jinping’s delegation to the World Economic Forum to be held in Davos next week is open to a meeting with President-elect Donald Trump’s team

China’s Money, China’s Blue Helmets for Africa

Deutsche Welle
It’s not just about raw materials anymore. China’s expanding influence in Africa poses risks to European interests, but it offers opportunities as well.

How China’s Pink Economy Is Leading the Country’s Battle for LGBT Rights

Charlie Campbell
Fortune
China’s burgeoning LGBT community—estimated at some 70 million people—is a free-spending sector that few businesses can afford to ignore.

2016 China-Africa Year in Review

Eric Olander & Cobus van Staden
After years of relatively trouble-free development, 2016 marked a turning point in the China-Africa relationship, amid turbulent changes in the global economic and political order. China increased its deployment of combat troops to the continent,...

Conversation

01.10.17

Can Beijing’s Ivory Ban Save the Elephants?

Eric Olander, Peter J. Li & more
On New Year’s Eve, Beijing announced it will ban the ivory trade in China, potentially shutting down the world’s biggest ivory market. Why did Beijing decide to curb the ivory trade? Will it put enough muscle behind it to enforce the decision? What...

China Probes Bitcoin Exchanges amid Capital Flight Fears

Gabriel Wildau
Financial Times
Investors in the cryptocurrency say they doubt it is being used to transfer large amounts of cash out of China.

China’s Elite Bodyguards Are Struggling to Find Enough Rich People to Protect

Charlie Campbell
Time
Training bodyguards has been big business in China for years. Now, however, a slowing economy and an anti-corruption drive are putting the brakes on the private security industry

China’s New Silk Road Is Getting Muddy

Joshua Eisenman and Devin T. Stewart
Foreign Policy
With the future of U.S.-China relations an open question for the incoming Donald Trump administration, many have focused on whether the president-elect’s promise to withdraw from negotiations over the Trans-Pacific Partnership (TPP) will enhance...

McDonald’s China Operations to Be Sold to Locally Led Consortium

Amie Tsang and Sui-Lee Wee
New York Times
McDonald’s said on Monday that it would sell its businesses in mainland China and Hong Kong for $2.08 billion to Citic, a state-owned conglomerate, and the Carlyle Group, a private equity firm.

China to Plow $361 Billion into Renewable Fuel by 2020

Josephine Mason
Reuters
China will plow 2.5 trillion yuan ($361 billion) into renewable power generation by 2020, the country's energy agency said on Thursday, as the world's largest energy market continues to shift away from dirty coal power towards cleaner...

How a China Crackdown Caused Bitcoin’s Price to Plunge

Geoffrey Smith
Fortune
The value of the cryptocurrency bitcoin is melting down Thursday, having dropped 20% against the dollar by midday Eastern Time in only two hours of frantic trading.

China, Seeking to Stop Weakening of Currency, Issues Restrictions

Neil Gough
New York Times
China’s financial regulators appear to have grown increasingly concerned in recent weeks about the pace of the renminbi’s depreciation