Joint efforts can clean breeding grounds for bad debt in China
China's banking regulator has announced it would adjust the provision coverage ratio for commercial banks from 150 percent to a range of 120-150 percent and the loan provision ratio from 2.5 percent to a range of 1.5-2.5 percent. The notification also said the ratios will be adjusted on a case-by-case basis within these ranges. These steps show China is moving forward with curbing bad debts.
Training, e-commerce can unlock growth in Africa
Since the 21st century began, Africa has achieved rapid expansion and become a new pole of world economic growth. However, problems still exist, such as structural contradictions in Africa's economy.
Solving China's water shortage key to ensuring growth
Recently, some observers have warned that China's current water crisis is imminent, and if the problem cannot be solved effectively, it will limit China's implementation of the next step of its economic plans.
Geely deal shows overseas investment backs economy
When Li Shufu, chairman of Chinese carmaker Geely, bought nearly 10 percent of Daimler, the parent company of Mercedes-Benz, becoming the largest single shareholder, there was much talk at home and abroad. Pressure and excitement came together with jealousy and fear.
China in race to catch up with US in AI revolution
Artificial intelligence (AI) is coming into full bloom, with the potential to bring dramatic change to our interaction with technology and related internet, computing processing products and services.
Trump's trade tariff moves buck global trend
Most countries in the world, notably China and Germany – currently the dominant economic powers in Asia and Europe – hold a strong belief that only free trade can help inspire dynamic economies and foster healthy economic growth.
Giving credit where due can help cut systemic risks in China
A critical gap in China's financial landscape, which is being transformed by the internet, is set to be filled with the central bank's recent issue of the nation's first personal credit-scoring license.
Modi's reforms will help India avoid risk of debt crisis
India's banking system has restructured more than 6 trillion rupees ($92.34 billion) in bad debts over the past three years. The recent $2 billion Punjab (PNB)-Nirav Modi fraud has made it worse.
Voluntary Trade Zones can be China's answer to global protectionism
During the past 40 years, the concept of free trade areas (FTAs) has been frequently mentioned, and FTAs have become a symbol of globalization. Developed nations in the West have tried to use FTAs as bridges to gain access to resources and the commercial advantages of free trade. Most developing countries have used FTAs to learn about international business operations and make connections with foreign companies.
Seizing opportunities can ensure new era of growth for China
The new US Federal Reserve Board Chairman Jerome Powell shared his bullish outlook on the US economy in his first Congressional testimony last week. Though it is not clear how many times he will raise interest rates, recent market turmoil will not stop the pace of US monetary normalization. But there are observers who wonder whether the next crisis is approaching.
Accountability can help Chinese dairies regain trust
French dairy giant Lactalis recently admitted that some of its milk sources may have been contaminated for more than 10 years, following a milk powder scandal involving the company in December. As soon as the news broke, heated debate developed among Chinese consumers, as most new parents in China prefer imported milk powder to domestic brands.
Sino-US policy coordination vital for both countries
Liu He, a member of the Political Bureau of the Central Committee of the Communist Party of China and director of the General Office of the Central Leading Group for Financial and Economic Affairs, is visiting the US this week. Ahead of China's annual meetings of the National People's Congress (NPC) and the National Committee of Chinese People's Political Consultative Conference (CPPCC), known as the “two sessions,” Liu's visit has attracted public attention. Since it is connected with tense bilateral trade relations, this trip is of extraordinary significance.
China should be prepared to avert trade war with US
With the rise of trade protectionism in the US, the possibility of a trade war between China and the US has increased. The US also blocked various Chinese products and capital from entering its market, on the grounds of national security.
Slowing investment obscures larger picture of China's growth
There's long been a controversy over whether Chinese economic growth is over- or understated. The contribution of investment to GDP growth reached a 17-year low in 2017, which is divergent from the strong performance suggested by high-frequency economic data. The gap suggests the possibility of GDP underestimation.
Economic data last year exceeded expectations and ended a downward trend that began in 2010. GDP growth rebounded to 6.9 percent in 2017 from 6.7 percent in 2016 driven by investment, consumption and net exports. In particular, the net export contribution reversed from negative 0.7 percent to a gain of 0.6 percent.
Bay Area can be driving force for B&R development
The Belt and Road (B&R) initiative was created as a Chinese comprehensive national policy for global development. It should be a guiding principle that the Guangdong-Hong Kong-Macao Bay Area (GHKMBA) needs to work with, while relying on the GHKMBA as a development model.
China-Latin American ties prove US criticism wrong
On January 22, the Second Ministerial Meeting of the Forum of China and the Community of Latin American and Caribbean States was held in Santiago, Chile. The meeting concluded with a series of framework documents to promote long-term cooperation.
Trump has misunderstood reasons for US deficit with China
US President Donald Trump has claimed numerous times that China is taking advantage of the US with unfair trade practices. The Trump administration has also taken a series of protectionist measures that have pushed the two countries to the brink of a trade war.
Gearing up for China's economy in new era
China has made extraordinary progress in a relatively short period of time. As its economy has grown and the base of economic activity has broadened, its reform challenge has become exceedingly complex. Once again, it is important to stress that financial engineering is not a substitute for the heavy lifting of reforms. There are no shortcuts on the road to China's new era.