Author: delucam17

On April 2, the Chinese government announced that three major internet companies had been investigated and fined for having pornographic content on their internet platforms. The three companies include massive internet search engine Baidu, news website NetEase, and Alibaba-backed dating site Momo whose recent IPO raised  $216 million. These actions are in line with the government’s… Continue reading Sweep out porn, strike at rumors →

Chinese officials recently announced that savings deposits will be guaranteed up to $81,000 starting May 1. This is similar to the US’s savings guarantee and may negatively affect China’s banking system. It is estimated that this policy will cover 99.6% of bank deposits, but the remaining uncovered 0.4% will make up nearly half the value… Continue reading China’s new FDIC →

As China’s population continues to grow and move from the village to the city, they are becoming increasingly reliant on food imports. This trend has the potential to negatively affect not only China, but also the countries that provide these imports. In China, grain production has increased fivefold, lifting many people out of poverty. However, its… Continue reading Global side effects of Chinese growth →

The potential for healthy Chinese GDP increase will be reliant upon several key factors. Among them are increase consumer demand, low oil prices, energy subsidy reform, increased privatization, and increased welfare provision. Above all, China will need to foster a domestic increase in demand to make up for diminishing investment and exports, the former drivers… Continue reading Hukou reforms crucial, among others →

China’s mens soccer team is currently ranked 81 in the world, but President Xi has plans to change that. Beijing’s State-Council recently announced a plan to construct tens of thousands of fields to guarantee that 50,000 schools across the country offer soccer instruction. In addition, China will bid to host the next available World Cup. All… Continue reading Unconventional stimulus →

Evidence of the problems with China’s economy exist across different industries. This is especially true of the housing, rail, and steel industries. As housing prices decrease, so does demand for construction inputs such as steel, which decreases the price. To keep factories running, producers are turning to foreign markets to sell their steel. As a result, China’s… Continue reading Chinese steel prices a steal →

China’s economy is characterized by three main things that form a vicious cycle that will continue to deteriorate the nation’s economy. First, there is excessive debt. Real estate sales have dropped 15.8%, meaning that many will find it increasingly more difficult to pay back loans. Coupled with China’s debt-to-GDP ration, which is now the highest… Continue reading China’s vicious cycle →

One side effect of trying to boost a nation’s economy is currency depreciation. However, in China they must do so without allowing the yuan’s value on the foreign exchange market to change. Especially after exports unexpectedly fell 3.3 percent in January, China cannot afford to allow its currency to appreciate. This would have two negative effects on… Continue reading PBoC Walking a Tightrope →

As Chinese leaders attempt to counter slowing GDP growth, Premier Li Keqiang emphasizes the importance of agricultural modernization. In the most recent issue of the Chinese Communist Party’s journal Qiushi, Li points out that by increasing income of rural farmers through the promotion of larger family farms, consumption could be increased. However, it remains to be seen… Continue reading Potentially Harmful Effects of Agricultural Modernization →