Xi Jinping’s Message to America

Taisu Zhang, Graham Webster & more
China’s President Xi Jinping addressed an audience of more than 700 American businesspeople in Seattle on Tuesday evening on the first stop on his first state visit to the United States. Regular ChinaFile Contributors who watched the speech offer...

China Market Rout Doesn't Reflect Economy, Top Diplomat Says

“Some movements on the stock exchange in China should not equal the whole picture of the Chinese economy.”

One Thing China Got Right

Peter Coy
Stocks plunged, monetary policy wavered, but Beijing finally fixed the "fixing."

How My Presidency Would Deal With China

Marco Rubio
Wall Street Journal
Approaching Beijing on the basis of strength and example, not weakness and appeasement.

China’s Complexity Problem

Stephen S. Roach
Project Syndicate
The challenge for Xi Jinping is to prioritize plentiful political will in a way that keeps China on the course of reform and rebalancing.

China Cuts Interest Rates Amid Mounting Concerns Over Economy

Neil Gough, Chris Buckley
New York Times
The cut followed a global stock market rout in which China led with a 7.6 pct plunge Tuesday to its lowest level this year.

US, European Markets Bounce Back, China Crisis Continues

Dominic Rushe
Dow Jones rises more than 300 points in first 2 minutes after opening following 3 days of market losses that erased close to $3 trillion globally.



Is the Bloom Off the Rose of China’s Economic Miracle?

Arthur R. Kroeber, David Schlesinger & more
On Monday, August 24, the Shanghai Composite Index dropped 8.5 percent, its second such steep fall since late July, and its worst since 2007. On Tuesday, stocks fell an additional 7.6 percent. The steep slide translates into more than $4 trillion in...

Why is China’s Stock Market Falling and How Might it Affect the Global Economy?

Katie Allen
Concerns about inflation, shares and interest rates raised after ‘Black Monday’ wiped billions off global markets.

Great Fall of China Sinks World Stocks, Dollar

Sinead Carew
A near 9-percent dive in China shares and a sharp drop in the dollar and major commodities sent investors rushing for the exit.

Caixin Media


How to Solve China’s Currency Parity Puzzle?

Boosting exports, controlling outbound capital flow and supporting the Chinese currency’s bid for Special Drawing Rights (SDR) status are just some of the reasons cited by analysts for the yuan's unexpected devaluation in mid-August.The yuan...

China Shares Brush New Low Since Depth of Selloff

Mark Magnier and Chao Deng
Wall Street Journal
Shanghai Composite closes down 4.3%, a fraction above July 8 low.



How Should the U.S. Conduct the Xi Jinping State Visit?

Evan A. Feigenbaum, Arthur Waldron & more
As tensions increase between China and the United States over the value of the yuan, human rights violations, alleged cyber attacks, and disputed maritime territories, among other issues, how should the Obama administration conduct the upcoming...

China Seeks to Calm Markets as It Devalues Currency for 3rd Consecutive Day

Neil Gough
New York Times
Since Tuesday, the currency, the renminbi, has fallen 4.4 percent, the biggest drop in decades.

Bearish Bets Multiply as China Slows

Henry Sender
Financial Times
A slowdown in China is harder for its trading partners and manufacturing competitors than it is for China itself.

Feeling Valued

The IMF changes its tune on China’s currency.

Spooked by Yuan Drop: China’s Top 1%

Andrew Browne
Wall Street Journal
Fears the megarich will take flight puts a floor under the currency’s slide against dollar.

Is China Preparing for Currency War?

William Pesek
As China grapples with its slowest growth in 24 years, President Xi Jinping is under pressure to stimulate the economy.

Caixin Media


Cai Jinyong: A Chinese Voice at the Top of the IFC

Three top executives serving in recent years at the World Bank and its emerging markets financing arm International Finance Corp. (IFC) have called China home.Economist Cai Jinyong became the fourth in October 2012, when he was named IFC's...

China Manufacturing Gauge Rises to 18-Month High on Stimulus

A Chinese manufacturing gauge rose to an 18-month high in July, bolstering the government’s chances of meeting its 2014 economic-growth target of about 7.5 percent.



The U.S. and China Are At the Table: What’s At Stake?

William Adams & Zha Daojiong
U.S. Secretary of State John Kerry and Treasury Secretary Jack Lew are in Beijing this week for the sixth session of the high level bilateral diplomatic exchange known as the Strategic and Economic Dialogue. We asked contributors what's likely...

China Isn’t Overtaking America

Michael A. Levi
New York Times
Twenty-first century rivalry between the United States and China will be as much about economic might as military power.

Follow the Money, China-Style

Yu Hua
New York Times
The appreciation of the yuan has failed to convince ordinary Chinese people that their money buys more; on the contrary, they feel it’s worth less.



Will China’s Economy Be #1 by Dec. 31? (And Does it Matter?)

William Adams, Damien Ma & more
On April 30, data released by the United Nations International Comparison Program showed China’s estimated 2011 purchasing power parity (PPP) exchange rate was twenty percent higher than was estimated in 2005. What does this mean? China's...

China Gets First Bitcoin ATM, Skirting Bank Crackdown

Pete Sweeney
Strong interest from Chinese speculators drove up global bitcoin prices last year to above $1,000, sparking a crackdown by the People's Bank of China.

Bitcoin’s Status in China Not So Black-and-White

Paul Vigna and Michael J. Casey
Wall Street Journal
The Chinese government has disseminated what amounts to a “confidential” policy governing the digital currency, which has led to uneven enforcement.

China’s Currency Suddenly Reverses Direction, Stuns World Markets

Michael Schuman
Some speculate that the reversal is a prelude to currency reform, yet others think that China is purposely pushing the yuan down in value to give its exports a lift amid the nation’s decelerating growth.

Conspiracy Theories Abound About China’s Gold Purchases

Tom Holland
South China Morning Post
Huge imports of gold have fueled speculation about the mainland’s intentions, including an alleged bid to launch a global monetary system.

Bitcoin in China

Suwatchai Songwanich
Nation (Thailand)
Bitcoin, a virtual stored-value system not regulated by any country or banking authority, has been a huge phenomenon this year and much of the action has been driven out of China.

Six Reasons Why Chinese People Will Drive The Next Bull Market In Bitcoin

Gwynn Guilford
The virtual currency’s decentralized and speculative nature, combined with the country’s experience with online currencies and “gold-mining” in the past are all cited as possible factors contributing to Bitcoin’s future take off in China.



Will China’s Renminbi Replace the Dollar as the World’s Top Currency?

Patrick Chovanec, Damien Ma & more
Patrick Chovanec:This week’s news that Brazil and China have signed a $30 billion currency swap agreement gave a renewed boost to excited chatter over the rising influence of China’s currency, the renminbi (RMB). The belief, in many quarters, is...

Is Capital Flight Taking Place in China?

Tan Shibo and Chen Long
Institute for New Economic Thinking
Some analysts argue that China's tremendous capital outflow implies many people are losing confidence in China’s economy.

U.S. Presidential Debate Sees Candidates Flex China Muscle

Liu Jie
Although the yuan rose nearly 30 percent since 2005, U.S. politicians are still taking jabs at China's currency regime.

American Politics and Chinese Data

Bill Bishop
Deal Book
In the midst of increasingly heated election rhetoric about China, Beijing has released some important economic data as its currency hits record highs. Both Mitt Romney and his running mate, Paul D. Ryancriticized...

Ryan Criticizes Obama Administration China Policy

Thomas Kaplan
New York Times
Romney Republican running mate slams President for delaying report on currency manipulation. 

Romney’s Young ‘China’ Hand

Kenneth Rapoza
Mitt Romney’s old China hand is more young than old, more Taiwan than China.Lanhee Chen, 34, is Romney’s policy wonk and one of Romney’s brains on China policy.  The California born policy director for the Romney campaign said that when it...

Caixin Media


Revamping the Landscape of Forex Flow

Capital flows out of China may be accelerating, a phenomenon commonly associated with waning confidence in a nation’s economy. But the foreign exchange regulator says the change is a step in the right direction.In the first six months of the year,...

Caixin Media


Yearning for the Yuan

London is forging ahead with plans for yuan-based financial services by developing an infrastructure and banking services that match its ambitions for the Chinese currency.On April 18, the city welcomed the first yuan-denominated bond issuance...



The Future of International Liquidity and the Role of China

Alan M. Taylor
He Jianan
Council on Foreign Relations
Financial crises in the 1930s and 1970s showed the world that economic instability results when demand for international liquidity allows a small number of countries to run up massive debts in their own currencies. Named for the economist who first...



Historical Precedents for Internationalization of the RMB

Jeffrey Frankel
He Jianan
Council on Foreign Relations
The twentieth century saw the rise of the US dollar, the German mark, and the Japanese yen as international currencies. Now the Chinese renminbi is on a similar course toward reserve currency status, but its path is deviating from those of its...



Internationalizing the Renminbi and China’s Financial Development Model

Robert N. McCauley
He Jianan
Council on Foreign Relations
Internationalization was a spontaneous outcome of the marketplace for the rest of the world’s major currencies, but China is breaking with history by making it official policy to steer the renminbi on a path toward reserve currency status. However,...



China’s Holdings of U.S. Securities: Implications for the U.S. Economy

Wayne M. Morrison, Marc Labonte
Peony Lui
Congressional Research Service
Given its relatively low savings rate, the U.S. economy depends heavily on foreign capital inflows from countries with high savings rates (such as China) to meet its domestic investment needs and to fund the federal budget deficit. The willingness...



The External Impact of China’s Exchange Rate Policy: Evidence from Firm Level Data

Barry Eichengreen and Hui Tong
International Monetary Fund (IMF)
The authors examine the impact of renminbi revaluation on foreign firm valuations, considering two surprise announcements of changes in China’s exchange rate policy in 2005 and 2010 and employing data on some 6,000 firms in forty-four economies...



People’s Republic of China: Spillover Report for the 2011 Article IV Consultation and Selected Issues

International Monetary Fund (IMF)
This report discusses the outward effects of China’s economic policies on the rest of the world. The report does not try to capture the full extent and historical significance of China’s new influence on the world economy. Rather, it focuses on a...



Appreciate This: Chinese Currency Rise Will Have a Negligible Effect on the Trade Deficit

Daniel Ikenson
Cato Institute
This report argues that the Obama administration and Congress should consider whether RMB appreciation would even lead to the outcomes they desire—namely, more balanced trade. The evidence does not support their objective. Although the short-term...



China’s Currency: A Summary of the Economic Issues

Wayne M. Morrison, Marc Labonte
Peony Lui
Congressional Research Service
Some Members of Congress charge that China’s policy of accumulating foreign reserves (especially U.S. dollars) to influence the value of its currency constitutes a form of currency manipulation intended to make its exports cheaper and imports into...



East Asia’s Foreign Exchange Rate Policies

Michael F. Martin
Peony Lui
Congressional Research Service
Financial authorities in East Asia have adopted a variety of foreign exchange rate policies, ranging from Hong Kong’s currency board system which links the Hong Kong dollar to the U.S. dollar, to the “independently floating” exchange rates of Japan...



Yen Bloc or Yuan Bloc: An Analysis of Currency Arrangements in East Asia

Kazuko Shirono
Sara Segal-Williams
International Monetary Fund (IMF)
This paper examines the role of Japan against that of China in the exchange rate regime in East Asia in light of growing interest in forming a currency union in the region. The analysis suggests that currency unions with China tend to generate...



China’s Trade with the United States and the World

Thomas Lum, Dick K. Nanto
Peony Lui
Congressional Research Service
As imports from the People’s Republic of China (PRC) have surged in recent years, posing a threat to some U.S. industries and manufacturing employment, Congress has begun to focus on not only access to the Chinese market and intellectual property...



How Robust Are Estimates of Equilibrium Real Exchange Rates: The Case of China

Steven Dunaway, Lamin Leigh, and Xiangming Li
International Monetary Fund (IMF)
Increased attention is being paid to assessments of the actual values of countries' real exchange rates relative to their "equilibrium" values as suggested by "fundamental" determining factors. This paper assesses the...



China’s Currency: Brief Overview of U.S. Options

Jonathan E. Sanford
Peony Lui
Congressional Research Service
Many are concerned that China’s currency is undervalued and that this injures the U.S. economy. The Chinese authorities say they are not manipulating their currency and they want to move as soon as possible to a market-based yuan. A new exchange...