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The Evergrande collapse is not China's 'Lehman moment,' but it does complicate an economic recovery, CFR expert said. "Unlike Lehman, Evergrande's insolvency is due to its excessive borrowing and aggressive use of leverage, not over-securitization." This has spurred on the question: is the Evergrande collapse China's "Lehman moment?" One famed hedge-fund boss said China's property crash was like the Great Financial Crisis from 2008 "on steroids." "Unlike Lehman, Evergrande's insolvency is due to its excessive borrowing and aggressive use of leverage, not over-securitization."
Persons: Lehman, , Evergrande, Zoe Liu, Liu Organizations: Service, of Foreign Relations, Lehman Brothers Locations: Hong Kong
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVery important for Xi Jingping to stabilize U.S.-China relations, says CFR's Zoe LiuZongyuan Zoe Liu, Council on Foreign Relations Fellow, discusses President Biden and Xi Jingping's expected meeting at the APEC Summit today.
Persons: Xi Jingping, Zoe Liu Zongyuan Zoe Liu, Biden, Xi Organizations: Foreign Relations, APEC Locations: China
Even so, finding ways to “get back on a normal course” — in the words of Biden — matters hugely to the global economy. He also pointed to some American companies leaving China altogether, such as asset management giant Vanguard. In the third quarter, a measure of foreign direct investment into China turned negative for the first time in 25 years. The country is by far the world’s biggest gallium producer, and a leading global producer of germanium, according to the US Geological Survey. Listed American companies with big business in China, such as Apple (AAPL) and Tesla (TSLA), may face higher scrutiny, too.
Persons: Joe Biden, Xi Jinping, , Biden, , Scott Kennedy, Chenggang Xu, California Justin Sullivan, Xu, Gina Raimondo, Adam Glanzman, Zongyuan Zoe Liu, Donald Trump, Liu, Organizations: Hong Kong CNN —, Economic Cooperation, CNN, Center for Strategic, International Studies, Stanford Center, China’s, Shipping, Port, Association of Southeast Asian Nations, European Union, American Chamber of Commerce, Vanguard, Companies, US, Nvidia, Semiconductor Industry Association, Bloomberg, Getty, Geological Survey, Council, Foreign Relations, Communist Party of China Finances, Capital, Apple, Chinese Communist Party, China Economic, Security, Commission, Biden, CFR Locations: China, Hong Kong, San Francisco, Asia, United States, Mexico, Canada, Port of Oakland, California, Shanghai, Ukraine, Moscow, Washington, Beijing, American, New York, US, Japan, Netherlands, Sequoia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailConfidence and policy-making are in a deflationary status in China, says CFR fellowZongyuan Zoe Liu, Fellow at the Council on Foreign Relations, discusses business activity, economic recovery, and political tensions in China.
Persons: Zoe Liu Organizations: Council, Foreign Relations Locations: China
China's economic recovery is practically doomed, experts from the Council of Foreign Relations said in an op-ed. The Chinese government has launched a plan for consumption-led growth, meaning the nation will shift away from investment. Meanwhile, 43% of China's economy is driven by investment – about double the US's long-run average of 22%. Experts have warned of trouble for China's economy as it sees a so-far disappointing economic rebound. Investors, meanwhile, have pulled their cash out of China at a faster pace as they lose faith in its grand economic reopening.
Persons: , Xi Jinping, Zongyuan Zoe Liu, Benn Steil, Xi, Liu, Steil Organizations: of Foreign Relations, Service, Foreign Affairs, Council, Foreign Relations, Investors Locations: York, Xi's China, Beijing, China
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