BIZ >> Expert assessment

China pursues economic transformation while heading off possible global recession

Warning signals are flashing. In the US, the yield on the benchmark US 10-year Treasury note fell below the two-year rate, a bond market phenomenon that has historically heralded a brewing economic recession. And the US is not the only major economy facing a possible recession. Germany, the UK and Brazil are all seeing signs of trouble. Germany, the world's fifth-largest economy, just reported that its GDP shrank by 0.1 percent in the second quarter.
Source: Global Times | 2019/8/21 17:58:40

Key move in China's interest rate reform doesn't mark opening of floodgates

The People's Bank of China (PBC), China's central bank, has decided to improve the formation mechanism of the loan prime rate (LPR), which was launched in 2013. The rate reforms aim to lower the financing cost for businesses and promote a market-oriented interest rate. Many have painted it as another monetary easing measure under a different name.
Source: Global Times | 2019/8/20 21:03:41

West right to abandon bias of China's development assistance model

China has been providing foreign assistance to Africa for almost 70 years, and seven decades ago, the newly founded People's Republic of China did not hesitate in its selfless support of newly independent African countries in their desire to make their nations stronger.
Source: Global Times | 2019/8/19 20:28:39

China could play mediator role to help resolve Japan-South Korea trade friction

Tensions between Japan and South Korea have been escalating since July 1. Japan has since placed restrictions on three chemicals critical to South Korea's tech industry. Uncertainty exists within ongoing negotiations for the Regional Comprehensive Economic Partnership (RCEP), and the China-Japan-South Korea free trade agreement (FTA).
Source: Global Times | 2019/8/18 19:02:21

Wise companies in Hong Kong ought to draw a clear line against violent protests

A group of violent protesters in Hong Kong organized a series of illegal rallies and violent protests that have had devastating effects on the local economy and people's well-being.
Source: Global Times | 2019/8/15 20:43:41

Trade conflict will prompt China to develop a more independent monetary system

The China-US trade war began over a year ago, the US' economic bullying has since spread to the financial and currency sectors as the US has designated China as a currency manipulator.
Source: Global Times | 2019/8/14 20:48:40

China must focus on own development as Washington sets trade war fire in financial sector

Against the backdrop of the escalating China-US trade war, the yuan dropped below 7 – an important psychological level – against the US dollar on August 5. The US Department of the Treasury later designated China a currency manipulator in a move that further escalated the trade row. The exchange rate clash between China and the US has been widely interpreted as a trade war upgraded to a currency war or financial war. Some market analysts have even made predictions for the China-US financial war.
Source: Global Times | 2019/8/13 20:23:41

Financial defense important in US-China trade war

On March 22, 2018, US President Donald Trump signed a presidential memorandum imposing large-scale tariffs on Chinese goods, a decision which prompted speculation in the global financial market until now. In fact, the US-China trade war has already spread to the global financial market. In early August, when the US once again unilaterally declared new tariffs and officially named China a “currency manipulator,” the yuan's exchange rate against the dollar weakened for several consecutive trading days in the foreign exchange market, intensifying trade war tensions.
Source: Global Times | 2019/8/12 18:18:40

A new world economy on the horizon with BRI serving as an opening alternative

All world economic indicators, international agencies, and major economic blocs point to the same conclusion: There is slow economic growth, free trade is under pressure and investment is less likely.
Source: Global Times | 2019/8/11 20:03:40

US out of line labeling China a currency manipulator

The US Treasury surprised the markets with its designation of China as a “currency manipulator” on Monday, after the yuan breached the 7 mark against the greenback for the first in more than a decade. In an exclusive interview with Global Times (GT) reporter Li Tianyang following the US' capricious move, Yu Yongding, an academician and senior fellow of the Chinese Academy of Social Sciences, shared his input on the accusation of manipulation.
Source: Global Times | 2019/8/8 19:03:40

China should not pursue 'de-dollarization' while global economy roils in turmoil

All in all, since the US dollar still has a dominant position in the international economy, China should not “de-dollarize” its foreign exchange reserves simply from the perspectives of investment and value preservation. In the context of growing global economic volatility, authorities should consider the need to guard against financial crisis and currency risk for its foreign exchange reserves management, so as to maintain the stability of the Chinese economy.
Source: Global Times | 2019/8/7 20:18:40

Is there room for future monetary easing in China amid global economic uncertainty?

Amid increasing external uncertainty, slowing global economic growth, the Fed's interest rate cut and continuing downward pressure on the Chinese economy, the market is looking to see China further ease its monetary policy. How much room is there for monetary easing in China?
Source: Global Times | 2019/8/6 18:38:42

New transaction channel with Iran bypassing US sanctions has bright prospects

The new EU-initiated settlement system with Iran, the Instrument in Support of Trade Exchanges (INSTEX), has officially completed its first transaction.
Source: Global Times | 2019/8/5 21:28:40

White House's practice of extreme trade coercion prompts reflections on history

US President Donald Trump on Thursday suddenly announced on Twitter that starting from September 1, the US will impose an additional 10 percent tariff on the remaining $300 billion worth of Chinese exports to the US. It means that all Chinese exports to the US will be subject to additional tariffs. The move came just as the latest round of US-China trade talks had ended in Shanghai and both parties agreed to resume negotiations in September.
Source: Global Times | 2019/8/4 19:52:42

Do South Korean companies still have opportunities in the Chinese market?

The news that South Korean conglomerate LG Group is seeking to sell off its Beijing headquarters building, LG Twin Towers, has made headlines recently. This marks another big move by LG after its withdrawal from the Chinese smartphone market. The sale of such high-quality assets as the LG Twin Towers underscores its inability to win back the Chinese market.
Source: Global Times | 2019/8/1 21:13:41

China's financial opening-up has righteous motives despite Western skepticism, distortion

Recently, China announced a slew of measures to further open its financial market. The 11 new measures encourage overseas financial institutions to participate in the establishment of, and invest in, asset management subsidiaries of commercial banks. They also allow them to set up and invest in pension management companies. Investment restrictions of overseas personal insurance companies will be completely scrapped in 2020. Those measures serve as a milestone, marking a new stage of China's financial opening-up.
Source: Global Times | 2019/7/31 22:10:35

Washington ties with pro-Brexit group could limit mutually beneficial UK-China relations

Two days after Boris Johnson became the UK's prime minister, the Financial Times noted that British Brexit Party leader Nigel Farage held a major New York fundraising event for a new lobbying body W4B (World4Brexit) to campaign for the UK to leave the European Union (EU). Farage added that he met with President Donald Trump at the White House on July 24, the day Johnson became prime minister, when Trump urged him to join forces with Johnson to “realign” British politics.
Source: Global Times | 2019/7/30 21:58:40

Partial agreements expected in China-US trade talks despite major differences

The China-US trade row has seen many ups and downs. It has allowed people to witness the capriciousness of the real world and the nature of economics and trade issues.
Source: Global Times | 2019/7/29 21:32:46