During an investment binge, if investors outnumber entrepreneurs in an industry, it inevitably implicates a situation of excess capital, the most risky form of investment, according to Chen Gong, chief research fellow with Anbound. In this respect, he suggested that China’s policy in guiding investment in the technology sector needs to be more transparent, and to shift toward a more rational and scientific policy system.
The election of Donald Trump as US president caught investors around the world unprepared. The market endured a roller coaster ride as traders scrambled to adjust. Many people are questioning how Trump, a political novice and businessman known for his eyebrow-raising comments, was able to win the presidential election and further, what impact it will have on China’s economy and markets.
After seven years, negotiations for the EU-Canada free trade deal, known as the Comprehensive Economic and Trade Agreement (CETA), were concluded on October 30. Like any free trade agreement (FTA), this one is believed to bring substantial benefits to both sides. In addition, it is of a high standard and will have a greater say in the making of international trade rules in the future. Many Chinese people won’t be paying much attention to the EU-Canada deal, as it is transatlantic, and geographically speaking, unlikely to affect China’s economic strategy in the Asia-Pacific area. But is that really the case?
As the Chinese Embassy in Delhi recently pointed out, China and India have made remarkable progress in the last 15 years, as bilateral trade has grown by a factor of 24 from $2.9 billion to $71.6 billion in 2015. This progress needs to be acknowledged and celebrated. However, the potential is higher still. Both countries should aim for $500 billion in bilateral trade within 10 years, which would require an annual growth rate of more than 20 percent.
As the results come in for the most dramatic election campaign in US history since World War II, uncertainty about the future of Sino-US relations persists.
Hillary Clinton and Donald Trump represent two different concepts of governing a country. Democratic nominee Clinton’s domestic platform focuses on intervention through various social policies. In foreign affairs, she will extend the country’s overseas presence and insist on values-based diplomacy. After all, Clinton is the initiator of the US policy to rebalance Asia and her overseas supporters have benefited from US presence and intervention.
Recently, Chinese economists Justin Lin Yifu and Zhang Weiying held a debate on industrial policy. Upon reading Zhang’s subsequent article “Four Mistakes Justin Lin Yifu Made In Industrial Policy,” I was surprised to find he had misread British and American history and developed an incorrect position on industrial policy.
It is a wrong presentation of economic history to state: “In human history, the real economic growth miracle happened in the US and Britain. Thanks to the Industrial Revolution, Britain developed from a border island into a leader of modern human civilization. The US turned into the world’s largest industrial nation in 1890 from an agricultural country where 80 percent of its population lived in rural areas before the Civil War.”
Citing new security concerns, Germany’s economy ministry announced the withdrawal of approval for China’s Fujian Grand Chip Investment Fund to purchase German semiconductor company Aixtron, casting a shadow on the honeymoon period of Sino-German economic and trade ties.
China is one of the fastest growing economies in the world. However, given its debt problem and soaring property prices, many observers abroad have become more negative about China’s economy. Global Times reporter Liu Jianxi (GT) talked with Yukon Huang (Huang), a senior associate in the Carnegie Asia Program, a leading economist in Asia and former World Bank country director for China, about these issues.
In most countries the pension fund system is divided into two branches–public and private pensions. In China, the public pension includes the national social security fund and local authority pension funds, while private pensions are comprised of enterprise annuities and occupational pension funds. The national social security funds and enterprise annuities are already invested in the capital market, and local authority pension funds and occupational pension schemes are preparing to make the same move.
While China’s banking sector is still suffering from the advance of Internet finance, there seems to be another round of shocks for the banking sector across the globe.