China’s Belt and Road Is Buckling
Yuen Yuen Ang, Bloomberg
Beijing boosts influence in state-owned enterprises
BY BEN KWOK
State-owned enterprises are required to establish a Party Committee to support government policies
Are We Witnessing 'Peak China'?
by Charles Hill via The Caravan
Is there anything more to be said about China? If the twentieth century was "The American Century," then this twenty-first century, by general acclamation, has been assigned to The People's Republic of China. What more needs to be said?
A failure of responsibility
Yuval Levin and James C. Capretta | The Weekly Standard
Ignoring the federal deficit and debt problems don’t make them disappear. In fact, it makes them worse. While Washington is distracted, a fiscal crisis is looming over the nation as entailment spending balloons. Viable solutions are possible, but time is quickly running out.
Jeffrey Frankel marvels at the US president's failure to understand what is driving the depreciation of the renminbi.
CHINA WARNS US ABOUT RUSSIAN WAR SALES: PREPARE FOR CONSEQUENCES & WHY US CHINA RELATION NEEDS NEW RULES
AEI DESMOND LACHMAN ON TWO KEY GOALS TRUMP MUST MEET WITH CHINA OVER TRADE & CHINA MOVES TOWARD CONSUMPTION
Desmond Lachman explores US trade with China and argues that the current policy approach will fail to meet two of the administration's key objectives.
If the old US-China game is over, what comes next?
James Pethokoukis | AEIdeas
Here’s What ‘Winning’ at Trade Really Means
Lyman Stone, E21
President Trump wants to “win” at trade—by which he means: the United States should export more than it imports. Economists have rightly criticized this view as antiquated mercantilism. The idea that the country is a business for which net exports are like net revenues is not just wrong, it is economically destructive. It’s no surprise that President Trump’s policies have caused the U.S. trade balance to get worse. His administration’s mismanagement of trade policy is causing an unnecessarily sharp drop in the trade balance, leading to America being a bigger “loser” even under Trump’s own terms. Read more here....
Game Of Survival Of The Fittest Not Sustainable, Says Senior Chinese Official
mentioning Thomas J. Sargent via Straits Times (Taiwan)
In a world facing increasing protectionism, a game of survival of the fittest where the strong wipe out the weak and a zero-sum game may prevail for a short while but will not become mainstream, a senior Chinese official said.
Benny Avni writes: Xi increasingly uses China’s economic prowess to squeeze resistant neighbors and reward those willing to accept Beijing’s dominance. Once successful, China will control regions rich in minerals, rare earths, oil and other resources necessary for China’s economic growth. [...]Beijing will also export its model of controlled capitalism, using economic incentives and punishment as well as military tactics honed in the East and South China Seas. - New York Post
Turkey turns to China as it tries to clean up bad loans
BY ASIA TIMES STAFF
EM-is-bottoming-out debate continues
We ignore risks posed by emerging economies at our own peril
Desmond Lachman | The Hill
CHINA'S CENTRAL BANKER REVEALS REQUIREMENTS TO LIFT ECONOMY & WILL CHINA'S BOND MARKET RESCUE BEIJING'S POLITICAL CLASS
US vs. China: The art of not making a deal
James Pethokoukis | AEIdeas
China’s money growth crashes, again
Derek Scissors | AEIdeas
When does a plunge from 25 percent to 4 percent growth not matter? When it’s official Chinese data. The People’s Bank reported annualized growth in narrow money M1 at 25.3 percent for August 2016. Yesterday, it reported the same figure for August 2018 as 3.9 percent.
China welcomes trade war talks with United States
BY ASIA TIMES STAFF
Treasury Secretary Mnuchin invites senior Chinese officials to discuss ways to end the dispute
NPAs: Building Blocks Of Crisis
quoting Raghuram Rajan via Millennium Post
India’s NPA crisis has resulted from decades of ignorance towards a crumbling system of regulation – today, we need an urgent remedy to tape the glaring loopholes of generic corruption.
Falling, Not Rising, Cronyism Is The Main Cause Of NPAs
quoting Raghuram Rajan via Economic Times (India)
Former RBI chief Raghuram Rajan has dissected the banking crisis in his recent analysis of non-performing assets (NPAs). He implies that cronyism is an important cause. I would say the anti-corruption activism of NGOs, the Comptroller and Auditor General (CAG) and courts — all aimed at reducing cronyism — has played a major role too.
The Long Road To The Resolution Of NPAs
quoting Raghuram Rajan via Livemint.com
As the world marked the 10th anniversary of the fall of Lehman Brothers last weekend, an event which had pushed the global financial system to the verge of collapse, the discussion in the Indian context has shifted to the ongoing non-performing assets (NPA) crisis in the banking system. Indian banks, particularly public sector banks (PSBs), have accumulated a pile of bad debts and are struggling to extend credit.
Lehman Brothers Collapse: Lessons For India On Rising NPA Problem
quoting Raghuram Rajan via Financial Express
It’s going to be ten years since Lehman Brothers collapse hit the US on September 15, 2008, triggering a financial crisis all across the world. Even though India’s GDP growth posted record numbers in April-June quarter, the macros are exerting pressure. The rupee is in a free-fall, and crude oil prices are surging
Pick Of The Day - Highlights From Raghuram Rajan's Note On Non-Performing Assets
interview with Raghuram Rajan via Money Control
Hoover Institution fellow Raghuram Rajan talks about depreciation of the rupee, emerging market scenarios, bad loans, and global trade war concerns.
Ten Years After Lehmans, It's As If We've Learned Nothing From The Crash
quoting Raghuram Rajan via The Guardian
August 2005, and the people who steer the world economy gather in the mountains of Wyoming. Flying in are finance ministers and central bank chiefs. In front of this global elite, the International Monetary Fund’s chief economist will sound the gravest warning of his life. Raghuram Rajan must try to avert a catastrophe, yet as he leaves home he tells his wife, “Either this talk will make me or I’ll look a fool for evermore.”
China is losing the new Cold War
(Asia Nikkei Review) When the Soviet Union imploded in 1991, the Communist Party of China became obsessed with understanding why. The government think tanks entrusted with this task heaped plenty of blame on Mikhail Gorbachev, the reformist leader who was simply not ruthless enough to hold the Soviet Union together. But Chinese leaders also highlighted other important factors, not all of which China's leaders seem to be heeding today.
China is Losing the New Cold War
Minxin Pei points out that the country is repeating two of the key mistakes that helped bring down the Soviet Union.
New tariffs to have limited impact on yuan: Caixin
BY ASIA TIMES STAFF
US$200 billion in Chinese goods could face duties of as high as 25% as soon as this week