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9 mentions found


Beijing’s Pivot to Growth Comes Very Late
  + stars: | 2022-12-15 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
With the economy teetering and China bracing for a gigantic wave of Covid-19 cases, Beijing is finally sounding the right notes on business and growth. Last week’s Politburo meeting called for “greatly boosting” market confidence, “even greater efforts to attract and use foreign capital” and maintaining an “active” fiscal stance. The question is whether it is too little, too late.
China is finally edging away from the suite of zero-Covid policies that suppressed the virus for much of the past three years. What that will mean for the broader economy remains uncertain, but one thing is for sure: The healthcare industry will need to scramble to adapt. A more permissive stance toward the spread of Covid-19 will create big health sector winners and losers. With a large dollop of luck and an aggressive campaign to vaccinate the elderly and stockpile anti-viral treatments, China may yet escape a wave of fatalities on the scale that most Western countries experienced in 2020 and 2021. But even under the rosiest assumptions, the shift toward living with the virus will entail a sea change in health-related spending from testing and quarantine to vaccination and treatment.
Political Risk Returns to China and Looks Here to Stay
  + stars: | 2022-11-28 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
Shortly after Chinese leader Xi Jinping reaffirmed his position at the pinnacle of Chinese political power, he faces what could be the biggest test of his tenure. The outcome could reshape how foreign multinationals operate in China, the flow of global manufacturing investment, and China’s relations with developed democracies. What is more, several fundamental factors leading to this moment are unlikely to fade for the foreseeable future.
Shortly after Chinese leader Xi Jinping reaffirmed his position at the pinnacle of Chinese political power, he faces what could be the biggest test of his tenure. The outcome could reshape how foreign multinationals operate in China, the flow of global manufacturing investment, and China’s relations with developed democracies. What is more, several fundamental factors leading to this moment are unlikely to fade for the foreseeable future.
Why Hong Kong’s Makeover Will Founder
  + stars: | 2022-11-08 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
Hong Kong, newly reopened to the world, is still plastered with posters celebrating the 25th anniversary of the territory’s handover to China: “A New Era. Opportunity.” The first of those aims has been achieved, at very high cost. The outlook for the other two, particularly the last, remains poor. The city recently held a week of events—including a bankers summit drawing in the likes of Goldman Sachs Chief Executive Officer David Solomon and UBS Group Chairman Colm Kelleher . The events were designed to celebrate the end of its self-imposed isolation and repair reputational damage from years of heavy-handed Covid-19 policies and the government’s decision to crush the political opposition following the antigovernment protests of 2019.
Markets Are Right to Fear Xi’s Dream Team
  + stars: | 2022-10-24 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
Chinese leader Xi Jinping delivered a show of force over the weekend—unveiling a new Chinese leadership team completely devoid of rivals. Markets delivered a harsh verdict on Monday, and unfortunately that may be justified. Mr. Xi’s consolidation of the top leadership caught markets off guard, even after The Wall Street Journal’s report last week predicting his clean sweep of the Politburo Standing Committee, China’s top political body. The release of China’s third-quarter economic figures Monday morning—after an unexplained delay last week—probably wasn’t the key factor driving today’s selloff, particularly since 3.9% growth actually exceeded most economists’ expectations.
Xi’s Contradictory Vision for China
  + stars: | 2022-10-17 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
Chinese leader Xi Jinping ’s big moment is finally here. But as he prepares to begin a third term at the pinnacle of Chinese power, he risks squandering China’s chance to become the world’s top economy in pursuit of an ill-advised bid for self-reliance. Mr. Xi can point to some major achievements. Few would argue that China isn’t now a “moderately prosperous society,” a longtime aspiration enshrined in decades of Party documents. China’s environmental problems remain daunting, but the country has made steady progress.
China’s Yuan Has Further to Fall
  + stars: | 2022-09-27 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
China’s yuan is already at its weakest level against the dollar in over two years. But it might be poised to fall further still: Two major factors holding it up so far in 2022 look likely to reverse. Like most emerging market currencies, the yuan has been pummeled this year by the combination of a hawkish Federal Reserve and worries over slowing global growth. Even so, the yuan’s fall in recent months is striking. On Monday, China’s central bank raised the risk reserve institutions must hold when selling forward currency contracts, making it more expensive to bet against the yuan.
China Will Benefit From Cheap Russian Gas—Eventually
  + stars: | 2022-09-22 | by ( Nathaniel Taplin | ) www.wsj.com   time to read: 1 min
The “limitless” friendship between China and Russia notwithstanding, President Xi Jinping of China appears to be at least somewhat miffed at President Vladimir Putin of Russia. For a hint of why that might be, consider the energy sector. But there is a problem: For now, China is a coal- and oil-powered economy, and the transition to moving toward gas will be long and expensive. In the meantime, Mr. Putin’s war in Ukraine has helped push coal and petroleum prices through the roof. All this comes as China’s economy is already struggling with a punishing property downturn and deeply discouraged consumers.
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