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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMichael Pettis explains why debt is not the problem, but the symptoms of China's economic woesMichael Pettis of Carnegie China says we are beginning to see the impact of China's high debt-to-GDP levels and the country will need another source of real growth if the "rapid expansion" of infrastructure comes to an end.
Persons: Michael Pettis Organizations: Carnegie Locations: Carnegie China
Why China hates the new president of Taiwan
  + stars: | 2024-01-15 | by ( Huileng Tan | ) www.businessinsider.com   time to read: +5 min
"Lai Ching-te clings stubbornly to the separatist position for 'Taiwan independence.' A matter of Taiwan's independenceIn 2017, while he was premier, Lai referred to himself as a "pragmatic worker for 'Taiwan independence.'" AdvertisementLai has pledged to maintain status quo and stability in Taiwan, but China isn't backing down on its stance either. "I think China hates him, really hates him," Wu Xinbo, an international relations professor at Shanghai's Fudan University, told Reuters, referring to Lai. "It is because if he is elected as the leader of Taiwan, he may come to advance his goal of Taiwan independence, which will provoke a crisis across the Taiwan Strait," added Wu.
Persons: William Lai Ching, Taiwan's, Lai, , Wiliam Lai Ching, Lai Ching, Xi Jinping, Wu Xinbo, Wu, Wang Yi, Jeremy Mark, William Lai, Chong Ja Ian, Chong, Tsai Ing Organizations: Democratic Progressive Party, Service, China's Taiwan Affairs Office, Chinese Communist Party, Shanghai's Fudan University, Reuters, Analysts, Lai's, Atlantic Council, Eurasia Group, KMT, National University of Singapore, Carnegie China, Channel News Asia Locations: China, Beijing, Taiwan, South America, Taiwan Strait, Taiwan's
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email2024 Taiwanese presidential election: There will likely be four candidates, academic saysJa Ian Chong, a non-resident fellow at Carnegie China, says it's unlikely that independent candidate Terry Gou will drop out of the race at this point.
Persons: Ja Ian Chong, Terry Gou Organizations: Carnegie China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's economic weakness: Confidence is not the biggest problem, analyst saysMichael Pettis of Carnegie China lack of confidence in the country's economy is a "consequence of the deeper problems."
Persons: Michael Pettis Organizations: Carnegie Locations: Carnegie China
Many economists have called on China to boost its social safety net to rebalance the economy. Yao was unswayed and would prefer consumer vouchers, which some local governments in China have issued, but in amounts too small to matter at a macro level. Local governments, while cash poor, are asset rich. Michael Pettis, senior fellow at Carnegie China, estimates that if Beijing forces local governments to transfer 1-1.5% of GDP to households, China could maintain current growth. "One of the really big conflicts is likely to be between Beijing and the local governments over how to allocate the various adjustment costs.
Persons: Erin Yao, Juan Orts, Orts, Tokyo's, Yao, joblessness, Jens Eskelund, Wang Jiliu, Wang, Michael Pettis, Laurie Chen, Kripa Jayaram, Marius Zaharia, Sam Holmes Organizations: Fathom Consulting, Communist Party, Reuters Graphics, European Chamber of Commerce, Carnegie China, Thomson Locations: BEIJING, HONG KONG, China, Beijing, United States, Hainan
SINGAPORE, April 27 (Reuters) - China's yuan currency is slowly but surely being adopted for more international payments, which analysts say could lay foundations for a trade system running parallel to the dominant U.S. dollar. True global yuan adoption is unlikely, given expectations that Beijing will want to keep a tight grip on the currency. "Their cooperation could draw other countries to renminbi payments over time and cumulatively, this group could lift the renminbi at the expense of the dollar," he said. "This kind of renminbi internationalisation may achieve Beijing's goals, including reducing China’s exposure to exchange rate fluctuations and mitigating China’s vulnerabilities to U.S. financial sanctions." "Therefore, if exporters want to use yuan to settle trades, they must persuade foreign importers to pay in yuan, which often takes a long time."
Bloomberg | Getty ImagesAt its peak, China's Belt and Road Initiative was seen as the centerpiece of Beijing's engagement with the world. According to the report, China issued 128 emergency rescue loans worth $240 billion to 22 countries — including Pakistan, Sri Lanka and Turkey, among others. 'Trying to salvage Belt and Road'Chinese efforts to revamp Belt and Road have been underway since 2020, according to one observer. "A nod to the concern that many Belt and Road projects were not economically viable to begin with. "The increased indebtedness in many Belt and Road countries is a direct consequence of Beijing's overshooting in the pre-2020 phase," said Zhong.
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