Author: Christian von Hassell

American Ford Motor Co. and its Chinese partner corporation – according to the Wall Street Journal – plan to invest 6.6 billion yuan to purchase and revamp a struggling Chinese car factory. This ties directly into our class discussions about the automobile industry in China and suggests that domestic Chinese car makers still lag behind… Continue reading Amid Chinese Frustration with Domestic Manufacturers, Ford to Invest 6.6b Yuan in Chinese Manufacturing Plant →

In May, China will begin a deposit insurance system for the nation’s 100 trillion yuan in bank accounts. It is part of a move to create a more market driven deposit rate. The deposit insurance system is needed to protect weaker banks from runs were the central bank to liberalize the deposit market. If China… Continue reading China to Begin FDIC-esque Protection of Deposits →

  In class on Friday, we talked about the limits of satellite imaging in context of learning more about North Korean industry and agriculture. Of course, there is no real substitute for intelligence gathered at the ground. However, a recent flurry of satellite imaging and data analysis startups at least suggests that many are not… Continue reading Might Better Satellite Imaging Analytics Reveal More About North Korea? →

After struggling with China’s technology practices that favor Chinese tech firms and pose risks to data security, IBM has agreed to share its technology with Chinese firms. In 2013, after Snowden’s revelations, IBM’s China sales plummeted—add on numerous other problems facing the company, and it is pretty clear IBM needs to pursue every possible avenue… Continue reading IBM Agrees to Share Technology with China →

Goldman Sachs recently reported the yuan is involved in over 80% of bitcoin-to-traditional currency transactions. In a Bloomberg article, William Pesek suggests that China might crack down on its citizens use of the crypto-currency.  While speculation accounts for a sizable portion of Chinese bitcoin activity, Pesek suggests that remittances and money laundering are driving factors… Continue reading China Dominates Bitcoin Activity →

The data for February suggested a rapid 48.3% uptick of Chinese exports, marking one of the few positive economic headlines for the nation in recent weeks. That figure beat the market’s far more timid expectation 13% export growth. On the heels of a marginal decline in January, this turn of events – while perhaps temporary… Continue reading China’s Exports Surprise as Imports Continue Slide →

Chinese Premier Li Keqiang recently suggested a lower growth target for the nation, revising the previous 7.5% figure down to 7% percent. Compared to the growth rates of developed nations, that might not seem too big of a deal. “Its still 7%!” some might think. Nonetheless, the downward revision arrives on the heels of a number… Continue reading Is 7% the New Normal? →

The HSBC PMI reached a seven month high this past February, as manufacturing activity continued to grow in China. However, export orders and deflation still lag behind, two persisting issues which recently spurred the central bank to cut interest rates. As China transitions to a more consumption driven economy, we might expect some divergence between export… Continue reading Chinese Manufacturing Up; Exports and Inflation Lag →

Whereas the US has proven relatively discrete about its relationships with American tech firms, China is more than forthright about wanting to access companies’ data. The central government is currently weighing a draft law that would require both domestic and international tech firms with operations in China to provide a wealth of access to authorities. Among other items,… Continue reading China’s Surveillance Rules Could Hurt its Tech Exports →

Once characterized by the prolonged appreciation of house prices, China’s real estate market has stumbled over the past year. According to recent data, it does not seem to be recovering yet. In January,  new-home prices rose in only 1 city out of 70 cities tracked by the Chinese government. I wonder what effect this post-bubble… Continue reading China’s Real Estate Market Continues to Sputter →

We have talked in class about agricultural labor markets in developing countries. In many places in China, technological advances have really stifled the marginal product of additional agricultural laborers for a given area. While the economy benefits from these workers changing sectors, that shift carries fairly significant transaction costs. While such a transition is inevitable… Continue reading Distributed Infrastructure Investments Could Boost Demand for “Agricultural” Labor →

Because of China’s strict capital controls, foreigners interested in investing in many Chinese companies must do so through a variable interest entity. In the simplest terms, a variable interest entity (or, VIE) is an offshore holding company that has a contractual right to the income of a Chinese company. The linked Wall Street Journal article provides a… Continue reading China Takes Baby-Step on VIEs; Still Fails to Ensure Credible Commitments →