The topic of China's high national savings rate has recently again attracted public attention. The country's gross savings rate reached 45.7 percent at the end of 2018, still ranking first in the world.
Through various investment instruments under the Belt and Road Initiative (BRI) framework, China is upgrading the yuan's internationalization and controlling more diversified, non-foreign-reserve assets despite declining foreign exchange reserves. These non-foreign-reserve assets provide more ammo if the US tries to wage a financial war that will hurt both sides.
The ongoing trade war between China and the US is already having an impact on the US job market.
With increasing awareness of the European economy's dependence on the Chinese market and its value chain, the China-EU relationship is expected to gain complexity in the foreseeable future.
Northeast China, known as the “eldest son of the Republic,” has not fared well amid an economic slowdown at large.
But instead of scouring external factors that might have weighed on the rust-belt region, what we should do to genuinely revive the local economy is pinpoint the problems inherent in the region that used to act as a pivotal growth engine.
The Chinese economy is facing downward pressure, which brings uncertainty to economic policy. Current policy focuses on multiple affairs including the trade war, poverty alleviation, technology and debt. Keeping track of too many issues means policy lacks concentration.
The news that Huawei is giving its employees a bonus of 2 billion yuan ($285 million) has fired up Chinese social media. Many are giving thumbs up to the management of China's leading technology company for doling out due incentives to core scientists, technicians and engineers.
Robert Shiller, Nobel Laureate in economics, once summarized that there are obvious defects in the system construction of the macroeconomic theory which guides today's world economic development. These drawbacks of macroeconomics have encountered great challenges in the past few years. Judgement made based on existing macroeconomic theory have often turned out to be inaccurate.
The liberalization of the yuan, China's currency, is accelerating despite the trade war with the US, and it won't be too long for the currency to become fully convertible on the market as the world's second largest economy keeps expanding and its capital markets are incrementally opened to foreign investors.
The Regional Comprehensive Economic Partnership (RCEP) could guide the way for global trade rule making, contributing its experience to upgrading trade clauses. The route taken by the RCEP could give light to WTO reforms down the road.
China's monetary policy may switch gears in the coming months with the recent interest rate cut of its medium-term lending facility (MLF) signaling a lower loan prime rate (LPR). A Stronger yuan against the US dollar also provides more policy maneuvers for the Chinese monetary authority to follow suit in the new trend of global monetary easing.
A decade after China became the world's top goods exporter, it's now time for the nation to consider claiming yet another crown: No.1 importer globally.
The “unexpected” trade spat between Japan and South Korea revealed that it is the support from Japanese suppliers that has allowed South Korean companies to dominate the semiconductor market for so many years. This begs the question: Has Japan's manufacturing sector, which has been mired in a series of quality scandals in recent years, been undervalued? Has Japan been “hiding” its economic strength and technological innovation strength in all these years? And how can “made in Japan” be viewed objectively?
US stocks jumped across the board on Friday, with the S&P and NASDAQ indexes all closing at record highs. Obviously, the positive mood shown by US President Donald Trump toward clinching an interim trade deal with China is electrifying investors.
The digital currency electronic payment (DCEP) plan, which the People's Bank of China (PBC) is expected to roll out soon, will showcase to the rest of the world what a genuine digital currency looks like. Before sovereign states vanish and the world becomes borderless, currency needs to be issued by a nation's monetary authority. Most so-called digital currencies, including Libra, are merely digital assets or products with a securities nature, but not currencies.
Over the weekend, the UK's Sunday Times leaked information about a fight taking place within the British government over whether or not to allow Huawei to participate in Britain's development of its 5G network.
Behind the skyrocketing passion for blockchain, a buzzword that has penetrated Chinese social media over the past few days, is the nation's strategic vision: striving for a place in the financial world of the future.
After nine consecutive years of growth, Germany's economy is expected to enter a technical recession in the third quarter of 2019. The country's leading economic institutes have already lowered their economic growth forecasts, expecting the economy to grow by 0.5 percent this year and by 1.1 percent next year.