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Crackdown on shadow lending working but overreliance on banks becoming a risk

Chinese firms are running low on funding options. A regulatory crackdown on a surge in shadow lending is starting to bear fruit, central bank data shows. Yet corporate bond issuance has also plummeted, and regulators are slowing IPO approvals. Once again the economy risks overdependence on bank lending.
Source: Global Times | 2017/6/18 18:38:39

India and Pakistan membership a challenge for SCO

China has taken over the rotating presidency of the Shanghai Cooperation Organization (SCO), and is scheduled to host the next summit in June 2018 in China. Earlier this month, the addition of India and Pakistan as full members increased this organization’s reach to South Asia from Eurasia and Central Asia for the first time.
Source: Global Times | 2017/6/17 15:12:10

US labor laws to blame, not Fuyao management

Chinese company Fuyao Glass Industry Group is facing industrial action by the United Automobile Workers union at its plant in Ohio, US, according to a recent report by The New York Times. I’m not surprised to hear the news. No matter whether it concerns foreign direct investment or simple exports of goods or engineering contracting, labor disputes have long been one of the biggest challenges facing Chinese companies in overseas markets, regardless of whether they are in developed countries like the US or in developing countries like Peru, Zambia or Cambodia.
Source: Global Times | 2017/6/15 22:38:39

China must prepare for potential social issues resulting from increasing use of robots

China should be well prepared for the large-scale use of robots as the diminishing demographic dividend, rising labor costs and the country’s transition toward a high-end manufacturing power offer substantial grounds for machines replacing human workers.
Source: Global Times | 2017/6/15 22:23:39

Cooling home market offers chance to clinch a deal

The surge in home prices in China’s mega cities, Beijing and Shenzhen in particular, has paused, following a sharp rise last year, and this offers a brief window for would-be homeowners and property investors to clinch a deal.
Source: Global Times | 2017/6/15 20:48:39

EU derivatives row reveals limits of UK’s ability to take control following Brexit

A cross-Channel tug-of-war over derivatives regulation demonstrates the limits of Brexit. The European Commission has backed away from forcing trading in euro derivatives to leave London. But its alternative solution will require UK-based clearing houses to follow EU rules – or lose out.
Source: Global Times | 2017/6/15 20:43:39

Can big data help to resurrect the planned economy?

While it is generally believed that the planned economy doesn’t work, Alibaba founder Jack Ma Yun has expressed his confidence in the recovery of the planned economy with the help of new technologies. This opinion provoked debate, and prominent Chinese economists Wu Jinglian, Qian Yingyi and Zhang Weiying have all refuted the view on different occasions since late last year. Here are some extracts of their viewpoints.
Source: Global Times | 2017/6/14 22:33:39

ECB move to add yuan to reserve currencies shows internationalization progress

China’s efforts to internationalize the yuan received a boost from the European Central Bank (ECB) on Tuesday, as the ECB announced that it had added the Chinese currency into its foreign exchange reserves by cutting a small portion of its US holdings.
Source: Global Times | 2017/6/14 22:23:39

China and India can use B&R to defend globalization

The 1st Belt and Road International Forum for Co-operation, held in Beijing in mid-May is considered to have been a historic event for Eurasia. But now there is another hot topic on Chinese social media.
Source: Global Times | 2017/6/14 22:18:39

Mainland biotech firm’s hugely successful IPO rejuvenates Hong Kong market

Chinese mainland biotech has revitalized Hong Kong’s IPO market. Shares in WuXi Biologics popped as much as 39 percent on their debut on Tuesday. High earnings growth and a lack of exciting initial public offerings led to strong demand for the $511 million deal. This is good news for a bourse keen to attract a new breed of entrepreneurs.
Source: Global Times | 2017/6/14 22:13:39

Lancang River dams prove more beneficial than critical Western voices expected

Despite the persistent concerns expressed about China’s exploitation of the Lancang River in the upper reaches of the Mekong River in Southeast Asia, China’s dams have proved to have no detrimental impact on water security in the downstream countries. China will continue its efforts to enhance coordination with Southeast Asian countries, and regional cooperation along the river could be taken as a reference for other countries, India and Bangladesh included, to resolve disputes with China over water-resource exploitation.
Source: Global Times | 2017/6/13 22:08:39

Agriculture cooperation can ease Sino-US tension

China is likely to have a temporary honeymoon period with the US at a time when US President Donald Trump is facing political turmoil at home.
Source: Global Times | 2017/6/13 22:08:39

China needs real AI innovation, not profit-seeking

Some bizarrely embarrassing mistakes spotted in a high-profile artificial intelligence (AI) presentation by Baidu last week might have thrown some much-needed cold water on China’s AI fever, amid concerns of an investment bubble in the sector. China’s huge online population seems to have become giddy with excitement about AI, but the growing number of companies investing in AI should be foresighted yet cool-minded when placing bets on the trendy tech.
Source: Global Times | 2017/6/13 19:23:39

Sterling’s post-election blues will be slow to lift, with uncertainty set to continue

British voters are their currency’s worst enemy. An election that produced no clear winner has knocked sterling lower, nearly a year after it was pummeled by a UK vote to leave the European Union. A brutal EU exit and a second Scottish independence referendum may now be a little less likely. But that is not a good enough reason to stock up on pounds anytime soon.
Source: Global Times | 2017/6/13 19:23:39

Trump has it all wrong on climate change and China

More than six years have passed. The Chinese government has made persistent efforts to tackle climate change. Yet the US government is once again using China, India and other developing countries as an excuse for its own inaction. So it is time to set the record straight and debunk Trump’s excuses and false accusations.
Source: Global Times | 2017/6/12 22:33:39

Concerns that CPEC will result in colonialism in Pakistan by China are not new and still wrong

People often use warnings from history, but those warnings can sometimes be misplaced. The allegation that the China Pakistan Economic Corridor (CPEC) – a flagship project under the Belt and Road (B&R) initiative – would be a new form of colonialism seems to be an obvious example of the deceptive use of history.
Source: Global Times | 2017/6/12 22:28:39

Brazilian spending cap is not a sustainable solution

Brazil’s economy has been in free fall, a casualty of years of economic mismanagement and the vast corruption scandal that has engulfed the country’s political and business establishment, and which now threatens to bring down the second president in as many years. It may seem hard to focus on policy developments amid the political and economic turmoil, but the fact remains that Brazil must overcome fundamental challenges if it is to lay the groundwork for sustainable growth. Few loom as large as the country’s fiscal woes.
Source: Global Times | 2017/6/12 20:48:39

Startling Alibaba growth forecasts suggest Jack Ma’s data ambitions are on the right track

Jack Ma Yun’s big data ambitions have gotten a stamp of approval from investors. Shares in Alibaba rocketed up 13 percent on Thursday – the group’s biggest daily rise since going public – after the company revealed startlingly optimistic revenue growth forecasts during its annual investor conference. It’s a powerful vindication of Ma’s forays into AI and cloud technology.
Source: Global Times | 2017/6/12 20:48:39