China's Modern Economy 中国现代经济 meets TuTh 11:45-1:15 Huntley 230
From Winter 2014 student
China’s manufacturing index in January was 49.6, while in December it was 50.5, portraying that there was no expansion in the past month. Additionally, Asian stocks experienced a loss because the statistical data pointed to a weakening demand for manufacturing. Qu Hongbin, a chief economist in Hong Kong stated that today’s report “implies softening growth… Continue reading China’s Manufacturing Index Signals a Surprising Contraction
Interbank lending rates in China are rising and have been for months. One reason for the increase is market volatility. Back in June rates spiked after a rumor of two mid-size banks defaulting on their loans. In recent months rates have inched up as cash reserves dry up as the PBOC attempts to reduce the… Continue reading Interbank Lending on the Rise
According to a report from The Economist, twelve were killed last Friday (the 24th) in yet another instance of sectarian clash in Xinjiang Province, China. On the 15th, Chinese authorities had arrested Ilham Tohti. Accused of, among other things, “separatist activities,” Mr. Tohti is a professor, economist, and member of the Uighur minority native to… Continue reading Unrest in the Rimlands
According to the front-page story of The Economist this week, “China loses its allure,” China is losing its appeal. In the early 1980s, the then leader of China, Deng Xiaoping, welcomed foreign firms with open arms. The incentives for going to China were irresistible and for the last 30 years this factor has made China… Continue reading The Times They Are a-Changin’
I wanted to follow up on my previous post. In this post, I will discuss China’s 12th “5-year-plan,” a major political indicator and policy-setter. In 2011, China began to implement new economic and industrial policies outlined in its twelth Five Year Plan (2011-2015), which will remain in place until a 13th one is officially adopted… Continue reading China’s 12th 5-Year-Plan
China and Japan, long time rivals who represent the second and third largest economies in the world, are seeing tensions rising. Tensions have been rising for a while now between the two countries caused by an increase in the Japanese military, a rewriting of the Japanese constitution, arguments of islands in the East China Sea,… Continue reading Rising Tension Between China and Japan
The pollution in China has reached a critical level. One-third of the urban population breathes the contaminated air and, as a result, lung cancer is the number one cause of mortality in China. It has also been reported that acid rain falls on one-third of the country. The United Nations Environment Programme (UNEP) reported that… Continue reading Coal Consumption in China
A few months ago, the Chinese government announced that it would ease its policy of allowing families to have only one child. The main reason for this policy change is population aging. According to the United Nations, about 8.5% of the current population is over 65, which will rise to 23.9% by 2050. Concerned with its… Continue reading China’s One-Child Policy Changes
With growing urbanization and a still booming population, China must increasingly deal with the negative externalities of pollution. To combat this, the Chinese government will spend tens of billions of yuan to mitigate the heavy metal and soot contamination of certain farmlands. Arguably, the Chinese government could benefit from economic policy to lessen the effects… Continue reading China Aims for Food Security as Pollution Destroys Crop Land
Three weeks ago, George Soros observed that there are “eerie resemblances” between the global financial crisis of 2008 and China’s credit markets. In a blog post on the 20th, I warned of the dangers of China’s local debt crisis, particularly the “shadow banking” element. Today, a Chinese trust investment worth USD 496 million (RMB 3… Continue reading CNN Hacker Launches Currency Reserve Debate
In the latest Program for International Student Assessment (PISA) test in 2012, an exam administered by the OECD every 3 years to over 500,000 15- and 16-year olds from 65 countries around the world, Shanghai’s students scored highest in critical reading, math and science for the second time in a row. As a result, Shanghai… Continue reading Education in Shanghai
The United States plans to host a conference for African Nations (Those who are in our good graces) in August. Leaders from 47 African nations have been invited by President Obama to the US-Africa summit. The conference is intended to strengthen relations between the US and African counterparts and encourage mutually beneficial economic behavior on… Continue reading US, China Compete for Influence in Africa
The Chinese economy grew only 7.7% in 2013, the slowest rate since 1999 but still in excess of the government’s target of 7.5%. Despite the slowdown, foreign analysts remain optimistic about future growth, framing the slowdown primarily in terms of avoiding a “hard-landing” and, according to Reuters, transitioning to “better quality development.” Ryan Rutkowski (Peterson… Continue reading China’s Growth Slowdown Signifies Sustainability, Realism
Where there is money there are attempts to dodge taxes. This has been true everywhere in the world. Tax shelters are a continual concern in the US and is not uncommon to read about individuals who have successfully or not sheltered millions from the IRS. At the same time companies do this as well, by… Continue reading Human Capital Losses
Many companies like to expand their business to China due to cheap labor. According to CNN, the highest minimum wage in China, in Shenzhen province, workers get $240.49 a month. The minimum wage in Beijing is $2.24 dollars per hour, which is much lower than that of the US’. Although China’s government announced that it… Continue reading The End of Cheap Labor in China?