By Stephen Roach Increasingly reliant on each other for sustainable economic growth, the United States and China have fallen into a classic codependency trap, bristling at changes in the rules of engagement. The symptoms of this insidious pathology were on clear display during Chinese President Xi Jinping’s recent visit to America. Little was accomplished, and the … Continue reading
By Lee Jong-Wha Pundits love debating the Chinese economy’s growth prospects, and nowadays the pessimists are gaining the upper hand. But many are basing their predictions on other economies’ experiences, whereas China has been breaking the mold on economic growth for the last three decades. So, are China’s economic prospects as bad as prevailing wisdom … Continue reading
China is moving to a “new normal” of slower yet safer and more sustainable growth. This involves giving the market a more decisive role in the economy, says the IMF in its annual assessment of the economy. China’s growth is expected to be 6.8 percent in 2015, down from 7.4 percent last year. This slowdown, … Continue reading
By Oliver Rui Don’t bet more than you can afford. Don’t borrow to play. Don’t chase your losses. Quit while you’re ahead. If only Chinese stock market investors had followed these basic gambling rules. Seduced by dreams of getting rich quick, millions of inexperienced Chinese investors have lately been treating China’s stock market like a casino. … Continue reading
By Ross Garnaut China’s old model of growth produced the strongest, most resource-intensive economic growth the world has ever seen. But the period in which China’s growth dominated world demand for energy and metals and lifted global commodities prices to unprecedented levels has come to an end. This is most decisive for commodities like coal, … Continue reading
By Michael Spence The world’s two largest economies, the United States and China, seem to be enduring secular slowdowns. But there remains considerable uncertainty about their growth trajectory, with significant implications for asset prices, risk, and economic policy. The US seems to be settling into annual real (inflation-adjusted) growth rates of around 2%, though whether … Continue reading
China’s Central Bank, the People’s Bank of China (PBOC), on Sunday cut the amount of cash that banks must hold as reserves by the most since the global financial crisis just days after a government report showed that economic growth slowed to the lowest level in six years. The move by the PBOC was the second industry-wide cut … Continue reading
By Saibal Dasgupta China is trying to connect more than 20 countries along the ancient Silk Road under a grandiose program christened “One Belt, One Road.” But the more than $140 billion program is facing challenges in many places over wars, territorial disputes and domestic unrest. The plan involves expanding China’s economic influence by establishing two … Continue reading
China’s economic growth in the first quarter (Q1) of 2015 has reached the slowest quarterly pace in six years as it has been dragged down by a combination of an industrial slowdown and a weak housing market, the Chinese government announced on Wednesday. Gross domestic product (GDP) in China during Q1 2015 rose 7 percent from a year earlier, … Continue reading
By Peter Drysdale Around a quarter of China’s remarkable economic growth over the past three decades or so was delivered by the dividend from its demographic structure, with a young population augmenting the workforce and lifting output in new jobs. A large proportion of the population were of working age; the proportion of the young … Continue reading