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China's economic fine-tuning needs to move counterclockwise

China's economy expanded at 6.5 percent year-on-year in the third quarter, for the first time falling beyond the 6.7-6.9 percent growth range of the previous 12 quarters. This indicates growing downward pressure on the economy. In response to the downward pressure, for the remainder of the year and running into early next year, it is necessary for the country's macroeconomic fine-tuning to seek the right moment for moderate counterclockwise moves.
Source: Global Times | 2018/10/22 19:08:40

Italy's budget gamble is already backfiring as promises to boost spending spark clash with EU

Italy's government is trying a risky gamble. Its promise to boost spending has triggered a clash with the European Commission. Lengthy procedures mean the spat could drag on until European Parliament elections in May. With radical parties gaining ground, the next Commission may be more lenient or weaker. But intense market pressure could spoil the plan.
Source: Global Times | 2018/10/22 19:08:39

Revived Beijing-Tokyo currency swap could be key to ending US dollar's domination

A currency swap line between China and Japan, which may be agreed on during Japanese Prime Minister Shinzo Abe's visit to Beijing later this week, would be a much-needed move to ensure that trade between Asia's two biggest economies remains intact despite the US' xenophobic approach to trade policy.
Source: Global Times | 2018/10/21 20:18:40

China-India cooperation can be global yardstick

India, as one of the key emerging economies along the route of the Belt and Road initiative (BRI), is a partner that China cannot ignore as it seeks to diversify its international trade. China and India are the world's two most populated countries, as well as two crucial Asian economies. The cooperation between them is expected to become a yardstick of South-South cooperation.
Source: Global Times | 2018/10/21 20:18:40

Supply chains become next competitive advantage

Western countries have been excited, though hesitant, to embrace a new drive from China with an Asian perspective on the global economy and integrated communities into one shared destiny.
Source: Global Times | 2018/10/21 18:28:39

Despite bickering, financial ties and mutual dependence make Apple and Google forced friends

Apple founder Steve Jobs once wanted “to go to thermonuclear war” against Google for – he said – copying the software that powers the iPhone. Now his company and Alphabet, which owns the giant search engine, are bound by tight financial ties. Payments from Google may account for over 10 percent of Apple's profit, a figure that is likely to rise.
Source: Global Times | 2018/10/21 18:23:40

Bilateral FTAs can be Beijing's opportunity in new era of multipolar trade world

US trade policy is at a crossroads as the Trump administration shifts its focus to advancing bilateral free trade agreements (FTAs). This can be a good chance for Beijing to foster a high-standard global free trade network, and China must seize this opportunity.
Source: Global Times | 2018/10/18 22:13:40

CPEC won't be derailed by misleading reports

Not long ago, I did field research along the China-Pakistan Economic Corridor (CPEC) route and was very impressed by the progress of infrastructure construction. Here are just a few observations.
Source: Global Times | 2018/10/18 22:03:42

WTO ought to be defended from unilateralism

Since World War II's end, trade has grown 50 percent faster than global GDP, owing largely to successive rounds of liberalization under the auspices of the World Trade Organization (previously the General Agreement on Tariffs and Trade, or GATT). But now, US President Donald Trump's latest dose of import tariffs could push the world into a full-blown trade war, undoing much of that progress.
Source: Global Times | 2018/10/18 18:48:40

When it comes to online video, Netflix has scale of Walmart and pricing power of Tiffany

Netflix has managed to pull off the double axel of retail. The $145 billion streaming-video company has both the scale of shopping giant Walmart and the pricing power of luxury-jewelry outfit Tiffany. Chief Executive Reed Hastings' next trick is to work out how to maintain both labels.
Source: Global Times | 2018/10/18 18:33:40

Problems of Japan-backed railway in India can provide lessons for BRI-related projects

Infrastructure is a major driver of the development of the Indian economy. The country's infrastructure spending is expected to accelerate between 2018 and 2022, making the sector a giant cake for global infrastructure companies, especially those from China.
Source: Global Times | 2018/10/17 21:48:41

Divergences rise in macro-policy amid trade battle

With the recent cut to banks' reserve requirement ratio, China seems to have de-pegged its monetary policy from that of the US. Central banks of the two countries are now giving more emphasis to their policy independence instead of coordination.
Source: Global Times | 2018/10/17 21:48:40

BOA punches above Wells Fargo's weight as bosses work to put banks' past behind them

Bank of America (BOA) is punching above Wells Fargo's weight. The Charlotte-based bank earned $6.7 billion for its common shareholders in the third quarter, or an 11 percent annualized return on equity. In other words, it lagged its West Coast rival's performance, as it typically does – this time by a percentage point. Yet the two now trade at the same multiple of 1.65 times tangible book value, an implicit valuation premium for BOA. Boss Brian Moynihan's turnaround has taken shape over years. Tim Sloan at Wells may close the gap again before long.
Source: Global Times | 2018/10/17 19:13:40

Chinese initiative to support Africa's development

At the 2018 Forum on China-Africa Cooperation (FOCAC) in Beijing, China announced that it will launch eight major initiatives, including a trade facilitation initiative to push forward China-Africa economic and trade cooperation, connect more deeply with the Belt and Road initiative and build an even stronger China-Africa community.
Source: Global Times | 2018/10/17 19:08:40

US may prefer blitzkrieg strategy, but China will prepare for long conflict

The US government's big budget deficit is a fiscal iceberg that carries an ever-increasing risk of economic uncertainty, and it signals that Washington's deficit spending and economic policies are unsustainable.
Source: Global Times | 2018/10/16 22:38:40

Progress on BCIM may change India's attitude

While the Bangladesh-China-India-Myanmar Economic Corridor (BCIM) has seen significant progress under the impetus of the Belt and Road initiative (BRI) since 2013, its construction has been held back by misunderstandings and misjudgment on the Indian side.
Source: Global Times | 2018/10/16 22:28:40

Dollar bonds show confidence in Chinese economy

On Thursday, China successfully issued $3 billion in sovereign dollar bonds, attracting the attention of the international financial market. The Chinese Ministry of Finance issued $1.5 billion worth of five-year notes with nominal interest rate at 3.25 percent, $1 billion in 10-year notes at 3.5 percent, and $500 million in 30-year bonds at 4 percent in the Hong Kong Special Administrative Region.
Source: Global Times | 2018/10/16 21:53:42

Markets are finally getting back to basics as blind faith gives way to facts on the ground

Blind faith in US stocks may be giving way to the facts on the ground. A slump overnight slowed on Thursday, partly thanks to a tame US inflation report. Yet American equity valuations are high, trade tensions and interest rates are rising, and earnings season is under way. There's plenty for investors to react to.
Source: Global Times | 2018/10/16 18:53:40