Nevertheless, there’s an emerging trend that Chinese companies are posing challenges to their South Korean counterparts in home appliances products and smartphones, which is reminiscent of the rout of Japanese home appliances companies as a result of the rise of South Korean brands.
Looking at China’s economic fundamentals, its economy is drawing an “L-shaped” growth. China is a major economy with a relatively strong growth and a surplus in its current accounts, which are beneficial to maintaining a comparatively stable yuan exchange rate.
After all, economics and politics are indivisible. By improving governance, African countries can attract more investment, which will help create a positive cycle of development.
At a forum held by China’s Quantum University in Hangzhou – a platform for spreading knowledge to entrepreneurs, legendary investor Jim Rogers (R) shared his insight on global uncertainties and ties between the US and China with Global Times (GT) reporter Wang Wei in an exclusive interview on February 17.
According to recent media reports, the European Union (EU) is investigating a China-funded rail project which aims to link the Serbian capital of Belgrade with Hungary’s capital,Budapest. China will undoubtedly integrate cooperation with the Central and Eastern European Countries (CEECs) into the broader framework of China-EU infrastructure ties and comply with EU regulations. But we also hope that the EU will handle the issue fairly and remain farsighted. They should put the interests of the people first and seek cooperation with China that will bring tangible benefits to Hungarians and other Europeans instead of following bureaucratic instincts. China and the EU should also work together to find a model for infrastructure cooperation acceptable to both sides and avoid sowing distrust in the future.
The Financial Times reported on Monday that the EU was assessing the financial viability of the railway and looking into whether the project would breach the EU laws that require public tenders for large transport projects. The $2.89 billion project to modernize the Budapest-Belgrade railway was announced in 2013 and will serve as a European example of China’s One Belt, One Road initiative and will link both EU member countries and non-EU countries. Both Serbia and Hungary have been ready for construction to commence.
While many are paying attention to US President Donald Trump’s slew of executive orders and tweets, we also need to remain aware of the hidden dangers from Europe, especially regarding the Greek debt problem or even a fresh outbreak of Greece debt crisis, which could impact countries across the globe, including China. The yield on two-year notes in Greece inched close to 10 percent recently, the highest level since last June. On February 7 the IMF warned that “Greece cannot be expected to grow out of its debt problem, even with full implementation of reforms,” and projected that the country’s debt and gross financing needs will “reach around 160 and 20 percent of GDP by 2030, respectively, but become explosive thereafter.” In addition, according to a Bloomberg report on February 8, “German Finance Minister Wolfgang Schaeuble ruled out a debt cut for Greece as a violation of European rules, saying the country would have to leave the euro area to do so.”
While Pakistan’s fast growing economy has made it a darling for foreign investment, the surge in the country’s fiscal deficit and public debts has increasingly become a source of concern for international investors and has led to doubts about its capability to repay its debts. Given the massive investment that China has made in the country as part of the China-Pakistan Economic Corridor (CPEC), China has a vested interest to ensure that the rising fiscal deficit in Pakistan not snowball into a major financial crisis. China should work closely with Pakistan to make sure that the projects it has invested in can generate tangible growth in Pakistan’s real economy, help the country properly manage its deficit level and put it on a sustainable growth path.
Cross-border e-commerce is key to China’s drive to upgrade its foreign trade companies. Africa has increasingly become an emerging market for global cross-border e-commerce given its growing Internet access, rising number of cell phone users and consumers’ increased interest in online shopping. But the barriers to the African market cannot be ignored.
Since US President Donald Trump was sworn into office, the pressure of trade disputes between China and the US has grown, but new opportunities are also rising. Even if the disputes escalate into a massive lose-lose trade war, China is confident that it can maintain and improve its position in international trade.
Following a wave of executive orders, including the withdrawal from the Trans-Pacific Partnership (TPP), signed by US President Donald Trump since he took office on January 20, the whole world as well as the US is processing the new style and way of doing things Trump has introduced. Although Sino-US bilateral relations and interactions on the surface remain calm, both sides are keeping a close eye on the other. Sustaining and advancing exchanges in trade and culture aligns with the fundamental interests for both China and the US, and it is believed that with communication to establish the right fit, both nations will achieve a win-win situation via cooperation.
Even though economic development across the globe lacks momentum and even though Donald Trump has proposed to adopt a slew of policies that would boost and protect the US economy, a report released by the United Nations Conference on Trade and Investment (UNCTAD) on February 1 showed that global capital is being directed in rather interesting directions in huge volumes.
China’s e-commerce giant Alibaba Group opened its Australian and New Zealand headquarters in Melbourne in early February, and Jack Ma, Alibaba’s founder and executive chairman, believes the company will “help Australian and New Zealand businesses share their world-famous products with billions of customers around the world.”
Following US President Donald Trump’s letter to Chinese President Xi Jinping on Wednesday, wishing the Chinese people a prosperous Year of the Rooster, the two leaders held a lengthy phone conversation on Thursday night, Washington time. During the call, Trump agreed to honor the one-China policy and expressed confidence that bilateral relations could reach new levels through joint efforts. The White House described the call as extremely cordial, with both leaders expressing their best wishes to the other’s peoples.
On reading the Global Times article “Chinese firms should start exporting managerial experience as well as technology” in late January I smiled in sympathy. What the article said is indeed true but there is no magic bullet to cure the issue. Instead time, perseverance and trust-building are needed. To an extent China’s extensive geographic spread is an issue, as is its growing middle class who look to buy “Made in China” goods. Thus the managers of Chinese firms, who may have a sufficiently large bank balance to buy firms overseas, choose to remain Chinese and serve the local market. They are not to be derided, but herein I wish to add my comments upon firms who venture abroad.
The world’s major economies have entered into a new race. The race will mainly take place between four major economic powers: the US, China, the EU and Russia. These four powers will be competing in numerous aspects in the years to come.
After Donald Trump was sworn in as the 45th President of the United States, various analyses on how his economic policy may impact the international market are sending mixed messages. Given his nature as a businessman, there will be intense uncertainty about his economic policies. His first three months will also bear close scrutiny on changes to US fiscal and monetary policies.
China’s aid to Africa has long focused on engineering construction projects. Over the past six decades, China had funded and built many big infrastructure projects in the continent, some of which have become local landmarks like the African Union Conference Center and Office Complex in Addis Ababa, Ethiopia and the Tazara Railway linking Tanzania and Zambia. Along with China’s growing strength, the country’s foreign policy has gradually shifted from being benefits and ascendancy oriented to being based on benefits and value. Against this backdrop, Sino-African cooperation has also gradually transitioned toward global governance from South-South cooperation.
Now that Donald Trump has been sworn in as the 45th US President, many of his rhetorical stances are expected to become policy, among which include his plan to wrestle manufacturing away from Mexico.