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High savings rate rather than ultra-low interest rate a blessing to Chinese economy

The topic of China's high national savings rate has recently again attracted public attention. The country's gross savings rate reached 45.7 percent at the end of 2018, still ranking first in the world.
Source: Global Times | 2019/11/20 20:10:29

Slack without a team would likely be overwhelmed in a war of capital attrition

Slack Technologies is on the wrong end of the network effect. Shares in the work-messaging firm fell about 10 percent on Tuesday as its chief rival, Microsoft's Teams, announced it has almost twice as many users, based on latest reported numbers.
Source: Global Times | 2019/11/20 18:53:40

China's job market will go on thriving amid trade row

Prolonged trade anxiety and its resultant impact on global economic activity have yet to, and will likely not, deal a big blow to China's job market. The trade woes have at the most led to a labor market shift toward the services sector, notably internet-based flexible work options.
Source: Global Times | 2019/11/20 18:43:40

Alibaba HK listing shows trade war's market impact

E-commerce giant Alibaba is making headlines again, this time in the Washington Post, which asks “Why now, and why Hong Kong, for Alibaba's share sale?” The newspaper asks a good question, but it doesn't offer a good answer.
Source: Global Times | 2019/11/19 23:08:40

Diversified investment of reserve assets may provide ammunition for potential financial war with US

Through various investment instruments under the Belt and Road Initiative (BRI) framework, China is upgrading the yuan's internationalization and controlling more diversified, non-foreign-reserve assets despite declining foreign exchange reserves. These non-foreign-reserve assets provide more ammo if the US tries to wage a financial war that will hurt both sides.
Source: Global Times | 2019/11/19 19:23:41

Why is US inequality higher than Europe's?

Europe's political forces are divided between those who regard the EU as promoting unfair, inefficient neoliberal economic policies, and those who see the bloc as key to preserving the relatively equitable and inclusive “European social model.” Yet the recent European Parliament election featured little debate about this model, and generated few ideas for what policymakers should do to tackle income inequality across the continent.
Source: Global Times | 2019/11/19 18:58:40

SoftBank, Naver face uphill climb to create WeChat-like Japanese super app

A Japanese super-app sounds super-cool but it will be super-hard to create. SoftBank and South Korea's Naver want to merge Yahoo Japan and Line in a complex, multi-step, $30 billion deal that portends an all-in-one mobile service combining payments, messaging and more. Investors are excited about the idea, but there are a great many hurdles to success.
Source: Global Times | 2019/11/19 17:33:40

China's factories excel in quality, low in branding

Chinese police recently destroyed a transnational industry chain that produced fake luxury bags bearing the labels of Louis Vuitton, Hermes and Chanel in Guangzhou, South China's Guangdong Province. These were sold in the domestic and overseas markets, with the amount involved in the cases put at 1.7 billion yuan ($242 million).
Source: Global Times | 2019/11/18 23:18:40

Trade war resolution necessary for US amid decreasing employment figures

The ongoing trade war between China and the US is already having an impact on the US job market.
Source: Global Times | 2019/11/18 19:48:39

S.Korea's faltering economy serves as global warning

In a World Economic Outlook report released in October, the IMF slashed South Korea's economic growth outlook for this year to 2 percent from the previous 2.4 percent. OECD also cut the country's expected GDP growth in 2019 to 2.1 percent. Investment banks all followed suit, lowering their outlooks for the South Korean economy.
Source: Global Times | 2019/11/18 19:43:40

UK Labour's nationalized broadband election bid is seemingly free of logic

“British Broadband” is a catchy alliterative title, but that's about all. The opposition Labour party on Thursday announced it wants to nationalize telecoms provider BT's network in order to give everyone speedy fiber connections. State ownership might fix the country's lagging communications infrastructure, but the promise of free web surfing risks condemning the idea to previous failed experiments in public ownership like British Coal or carmaker British Leyland.
Source: Global Times | 2019/11/18 19:38:39

Boeing puts pressure on FAA in disturbing bid for 737 Max return

The disturbing news broke over the weekend that Boeing Corp has been pressuring the US' Federal Aviation Administration (FAA) to clear the problematic 737 Max and allow it to resume flight, after it has been grounded for the last 7 months due to serious safety issues which led to two fatal crashes.
Source: Global Times | 2019/11/18 18:27:32

India's GDP slowdown won't soon be reversed

There is a downturn in India's economy, but will it become a protracted one? More specifically, will economic growth fall below 5 percent?
Source: Global Times | 2019/11/17 21:14:08

Lessons from past Asian financial crisis should be reminders for today's Hong Kong

There has been much talk of the risk of a rising financial crisis in Hong Kong over the past few months. Indeed, the city's economy is flashing worrying signs of vulnerability. The Hong Kong economy entered its first recession in a decade in the third quarter of this year and a severe housing bubble has made the city known as the least affordable property market in the world. The Hong Kong Monetary Authority (HKMA) had to spend more of its large reserves in recent months to support its distinctive exchange rate system.
Source: Global Times | 2019/11/17 21:14:00

Yahoo-Line merger that benefits SoftBank would be Japan's e-payment energizer

Japan is overdue a digital-payments pickup: Its ageing population still settles four out of five purchases in cash. SoftBank Group's restless 62-year-old founder Masayoshi Son is doing his bit, with a potential merger of his indirect holding in the operator of search engine Yahoo Japan and the controlling stake in Line, the country's leading messaging and payments app.
Source: Global Times | 2019/11/17 19:12:25

Domestic spending sets China's economy ablaze

Like the US, China's economy today is primarily driven by domestic consumption, thanks to the rapidly rising disposable incomes of the country's working-age population. The central government in Beijing could work out more policy tools to increase average wage levels while reducing their financial burdens.
Source: Global Times | 2019/11/17 18:58:39

US needs to answer China's concerns over technology

Chinese telecom giant Huawei is the focal point for the ongoing trade row between China and the US. If the US side wants to end the trade war as soon as possible, Washington should immediately issue licenses allowing US companies to resume supplies to the Chinese giant.
Source: Global Times | 2019/11/14 22:31:22

Complementary economic relationship sets a strong foundation for trade takeoff

With increasing awareness of the European economy's dependence on the Chinese market and its value chain, the China-EU relationship is expected to gain complexity in the foreseeable future.
Source: Global Times | 2019/11/14 22:31:09