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Leveling the playing fields for domestic and overseas companies sets China's reform road map

The world has been closely watching the latest round of high-level trade negotiations between the US and China, which took place in Beijing on Thursday and Friday, for clues as to whether a trade resolution will be reached before the March 1 deadline.
Source: Global Times | 2019/2/17 20:48:40

Jumbo reality check frees Airbus to churn out greener, nimbler two-engine planes

European politicians, as well as passengers who appreciate more leg room, will lament Airbus sounding the death-knell of the A380. Few others will shed a tear for the gas-guzzling behemoth. As with the supersonic Concorde, another engineering marvel, the superjumbo owed more to regional political ambition than commercial logic. The aerospace group can now focus on closing its valuation gap with US rival Boeing by churning out more of the nimbler, greener two-engine jets that airlines want to fly.
Source: Global Times | 2019/2/17 17:23:39

New pension system will mobilize Chinese economy

High quality development requires lower pension plan expenses. If pension reform is carried out correctly, it would provide the Chinese economy with a real opportunity.
Source: Global Times | 2019/2/17 17:18:39

Firms should adapt, not abandon changing China

China's economic slowdown is a fact. Some foreign companies are said to be considering a withdrawal from the Chinese market, while others are making the choice to stay. Nobody can say that all foreign companies can succeed amid the nation's economic restructuring, but it's very likely that the ones who remain calm can emerge as winners in the market of more than 1.3 billion consumers.
Source: Global Times | 2019/2/14 21:23:41

With many Chinese not having traveled abroad yet, raising income ought to be top priority

According to the latest data released by the State Administration of Foreign Exchange, China's tourism trade deficit reached $237.4 billion in 2018, an increase of $21.4 billion over the previous year. While the record high figure reflects the growing scale of outbound tourism consumption by domestic residents, it remains questionable whether the domestic demand is so strong that it even caused the record outbound tourism consumption.
Source: Global Times | 2019/2/14 21:23:40

Banks resisting credit cards max-out might be negative for economic stimulus but prudent

Chinese banks are wise to resist maxing out their credit cards. Lenders have issued hundreds of millions of them to local consumers, facilitating debt-fuelled shopping sprees. It's a lucrative but risky supplement to other types of lending, and some banks now appear to be pulling back.
Source: Global Times | 2019/2/14 18:53:40

Four economic problems that China needs to carefully manage

There are four key problems facing the Chinese economy in 2019 in the areas of real estate, micro, small and medium-sized enterprises (MSMEs), financial markets and zombie enterprises. The country is probably at a quandary regarding addressing these four key problems.
Source: Global Times | 2019/2/14 18:48:40

If trade war flips balance, China gains more say

The US trade deficit with China will reverse in the long term, Alibaba co-founder Joseph Tsai was quoted by US-based financial network CNBC as saying on Wednesday. The forecast may be beyond some economists' expectations, but it is entirely possible that his words become a reality.
Source: Global Times | 2019/2/13 22:30:37

What are the implications for China resulting from Trump's World Bank presidential nominee?

Former World Bank president Jim Yong Kim suddenly announced his resignation on January 7, with the resignation taking effect as of February 1. Since then, speculation has been swirling as to who will take over Kim's post.
Source: Global Times | 2019/2/13 22:23:40

China, US need to build rapport in space programs

After Chang'e-4 lunar probe successfully landed on the far side of the Moon, there has been considerable discussion among the US scientific community as to whether the US should embark upon a new cooperation with China for space exploration.
Source: Global Times | 2019/2/13 17:03:05

Pinduoduo's moment for calm may be short-lived, facing fiercer competition from Alibaba

Pinduoduo's search for calm will go on. Even by Chinese tech company standards, the $31 billion e-commerce outfit, which pushes group discounts on everything from fresh produce to clothes, has had a volatile start, since it went public in July. A further $1 billion equity, raised on Friday, is a welcome step toward easing wild price swings, but ballooning losses, competition with Alibaba, and legal woes will continue to complicate matters.
Source: Global Times | 2019/2/13 16:58:40

Huawei shows Chinese firms can defend interests

China's Huawei has started to fight back.
Source: Global Times | 2019/2/12 22:23:40

Brexit turmoil will continue, but how will it affect UK-China economic relations?

When Britain voted in the 2016 Brexit referendum, there were many in Chinese media who naively thought, “Well, that is a democratic decision. Britain will leave the EU.” However, critical issues in the West, as in other societies, are not decided by formal democratic processes but by power and money and the clash of powerful social forces. Therefore, the referendum did not resolve issues but unleashed the deepest British political crisis since World War II.
Source: Global Times | 2019/2/12 22:18:40

Is it necessary to kill all financial innovation from shadow banking in China?

Frankly speaking, I don't think the rapid decline in China's economic growth that started in the second half of 2018, will easily stop or even slow, although there have been an increasing number of indicators that are confirming an economic slowdown. The harsh deleveraging is believed to be one of the main reasons behind the cooling economy. It is of course, totally justified for the government officials to be worried about high leverage. The debt-to-asset ratio of state-owned enterprises (SOEs) is hovering around 60 percent, but the real problem with SOEs' high leverage is that there are too many zombie enterprises that live on borrowed money but make no contribution to the overall economic development.
Source: Global Times | 2019/2/12 15:58:39

Sputtering Societe Generale, undone by its own complacency, transforms to grow

Frédéric Oudéa needs a new name for his strategic plan, Transform to Grow. Given the Société Générale chief executive's admission that the French bank must restructure to stand still on shareholder returns, “transform to woe” may be more appropriate. Planned cuts to SocGen's misfiring trading hub will only go so far. A capital shortfall is a potentially bigger concern.
Source: Global Times | 2019/2/12 15:53:39

'Make in India' campaign may wilt under US pressure

US President Donald Trump's trade policy won't only affect China while leaving India unaffected. After sinking into the trade conflict with China, the US is reportedly considering a possible withdrawal of zero tariffs for India.
Source: Global Times | 2019/2/11 22:05:27

China's central bank bill swap different from Federal Reserve's quantitative easing

The People's Bank of China (PBC), the country's central bank, announced last month the creation of the central bank bills swap (CBS) aimed at supporting commercial lenders' perpetual bond sales. Primary dealers on the open market can swap perpetual bonds issued by qualified banks with central bank bills. Perpetual bonds with AA ratings and above can be used as collateral for medium-term, targeted, and standing lending facilities, and re-lending purposes.
Source: Global Times | 2019/2/11 22:04:59

Sony's record share buyback misses the big picture as smartphone business worsens

Sony's blockbuster share splurge misses the big picture. On Friday, Japan's $55-billion electronics giant said it would repurchase 100 billion yen ($911 million) worth of its shares. This announcement was just days after disappointing earnings, and that's a strong sign of confidence from new(ish) boss Kenichiro Yoshida. To boost longer-term returns, though, he needs to convince investors a much-needed and deeper overhaul of the video games-to-movies conglomerate is also underway.
Source: Global Times | 2019/2/11 15:35:35