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.
Efforts made by India to deliver reliable electricity are being closely watched by Chinese investors as the nation draws in interest from manufacturers. With concerns expressed by some media over Indian Prime Minister Narendra Modi’s electricity push, China’s ongoing pricing reform in electricity may prove helpful.
With reports saying that power remains inadequate or non-existent for 240 million Indian people, the nation needs to urgently increase its power generation capacity. However, this will not be easy with current problems in India’s electricity sector. According to a recent report by the Financial Times, “utilities in at least four Indian states are months behind on payments” to companies who generate the electricity.
Every country with plentiful mineral resources enjoys a massive windfall when it can export them. Chile and Peru have gained billions of dollars from sending copper to China, allowing for major domestic investments. However, there is growing concern that as these countries become addicted to this method of export, they fail to develop in other ways. One recent example is Venezuela where a dependence on oil revenue has led to a rampant economic crisis. Peru has already suggested that the minerals mined should be processed at home before being sent to China. This would not change the balance of trade significantly and would help China score a real win-win trade situation.
A growing gig economy and tax system that rewards self-employment could hit the UK government’s coffers. Jobs created by the likes of Uber flatter Britain’s unemployment rate, and have helped to smooth out the worst effects of the financial crisis. But the less palatable implications of a surging gig economy are now dawning on Westminster: a potential 3.5 billion pound ($4.36 billion) gap in tax receipts by 2022.
Over the past few days, some people have keenly followed the debate on whether China has lagged behind India in its space race. India’s successful launch of a record-breaking 104 satellites into orbit could serve as a wake-up call for China’s commercial space industry and there are a number of lessons for the country to learn.
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.
Intel’s ambition to continue its dominance over chip technology has largely flopped in the mobile Internet era. However, the US chip giant hasn’t remained stagnant but rather has been proactive in exploring other areas of promises. Its effort of diversifying into the fledgling unmanned aerial vehicle (UAV) market seems likely to make the nearly half-century-old company cool again, as 300 Intel drones danced behind Lady Gaga at her buzz-making Super Bowl performance early this month.
There’s only so much even the most powerful executive can accomplish from behind bars. Samsung Group’s founding family heir Jay Y. Lee has been thrown into jail in an unprecedented corruption case. This kind of scandal could cost company bosses their jobs in other countries, but in South Korea, Lee’s position is probably not at risk. Nevertheless his physical absence will leave Samsung without anyone steering the wheel. The uncertainty threatens to hobble big changes at the group, including the restructuring advocated by activist investors.
In 2016, China’s direct investment to India was six times higher than the year before, according to recent media reports. China may need to adjust its speed and rhythm to avoid overheating the country’s outbound investment to the South Asian country.
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.
Yahoo Chief Executive Marissa Mayer may soon be breathing a sigh of relief. The $40 billion Internet company is on the verge of cutting the price of its core-business sale to Verizon Communications by $250 million to $350 million, less than a 10 percent discount to what was originally agreed, according to media reports. That would be a small price to pay for massive hacks that affected over 1 billion users’ account data.
Recently Chinese President Xi Jinping stressed that China will uphold globalization and free trade. I believe this is in the best interest of the world’s nations, large or small. Happily, President Donald Trump wrote to the Chinese Embassy in Washington to wish it, and by implication, China, “a good Lantern Celebration” and held a telephone conversation with President Xi. Given the importance of Sino-US trade, and the fact that they are the two economically strongest nations globally, I feel this conversation was a tad delayed. But it took place, and apparently with no discord. President Trump agreed to honor the one-China policy, and together the US and China must continue “high level communications.”
China has a relatively low industrial complementarity with India compared with other South Asian countries, resulting in intense competition in the global market for products made in the two nations, according to a recent report published by a Chinese government think tank. As more economic competition is expected, greater uncertainty is likely to be present in future Sino-Indian relations.
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.
Toshiba has opted for drastic action. On Tuesday, the struggling Japanese group unveiled a $6.3 billion writedown, a plunge into negative equity, an end to building new nuclear plants and the resignation of its chairman. The delivery was chaotic but those messages had been well-telegraphed, and Chairman Shigenori Shiga’s involvement with the troublesome nuclear business made his position untenable. The possible sale of a majority of its most valuable unit – the bit that makes flash-memory chips – is new, and reveals the depth of its crisis.
US President Donald Trump’s energy independence policy aims to increase domestic oil production and reduce the country’s dependence on oil imports.
While Myanmar suffers anxiety due to a sharp decline in foreign investment, China is seeing a boom in outbound investment. It is high time for Myanmar to ramp up efforts to rekindle Chinese investors’ appetite in the Southeast Asian country to boost its economy.
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.