Tuesday, June 19, 2018

Pentagon weighs sending planes, ships near disputed South China Sea reefs

The Pentagon is considering sending U.S. military aircraft and ships to assert freedom of navigation around rapidly growing Chinese-made artificial islands in the disputed South China Sea, a U.S. official said on Tuesday. Defense Secretary Ash Carter requested options that include sending aircraft and ships within 12 nautical miles (22...

Britain Joins China’s Asian Infrastructure Investment Bank Despite U.S. Concerns

In Face of Interest, Alliance Sometimes Fragile. Despite concerns voiced by its close ally the United States, Britain, a conventional Atlantic force, will become the first major Western economy to join a China proposed financing mechanism, which will explore investment opportunities in, mainly, Asia. Downing Street believes its decision to apply to...

The dragon’s new teeth

At a meeting of South-East Asian nations in 2010, China's foreign minister Yang Jiechi, facing a barrage of complaints about his country's behaviour in the region, blurted out the sort of thing polite leaders usually prefer to leave unsaid. “China is a big country,” he pointed out, “and other...

China Goes Prospecting for World’s Gold Mines

Hunt by Chinese companies for overseas deals could make China an even bigger player in the global gold market. Chinese gold miners are aggressively scouting for overseas acquisitions, encouraged by historically low gold prices that could help them scoop up assets cheaply. Though gold prices have risen by more than 16%...

China: Global Political Shift

I have been to China over the years more than a dozen times. I have spoken with people at all levels of policy-making, and one thing I have come to realize is that when Beijing makes a major policy change, they make it carefully and with great deliberation. And...

Washington’s Nightmare Comes True: The Russian-Chinese Strategic Partnership Goes Global

The Russian-Chinese strategic partnership (RCSP), indoctrinated in 1996, is Eurasia’s geopolitical anchor in the 21st century, shaping its evolution and entrance into the Multipolar World. No other political relationship between the two continents’ actors even comes close, with the RCSP’s only formidable rival being the US via its privileged...

Japan tops China in US govt debt holdings

WASHINGTON — There’s a new king of U.S. government debt. Japan edged China in February as the largest foreign holder of U.S. government securities, the Treasury Department reported late Wednesday. The agency released its monthly report on foreign holdings of U.S. government longer-term debt and it showed that Japan in...

China Readies $46 Billion for Pakistan Trade Route

Beijing plans to pour $46 billion into infrastructure projects, open new trade routes. Chinese President Xi Jinping is set to unveil a $46 billion infrastructure spending plan in Pakistan that is a centerpiece of Beijing’s ambitions to open new trade and transport routes across Asia and challenge the U.S. as the dominant...

In Odyssey for Chinese, Greece Sells Its Fabled Port of Piraeus

With the sale, China’s state-owned COSCO aims to turn a once-sleepy port into the “dragon’s head” of the New Silk Road. Beijing’s ambitions to build a modern-day “Silk Road” connecting China, Central Asia, and Europe took a big step forward Friday when Chinese state-owned shipping giant COSCO finally sealed a...

Japan Says It Could Join China-Led Asian Infrastructure Investment Bank

Australia to decide Monday; concerns about governance, transparency remain. Japan indicated it could join a China-backed development bank, despite territorial and economic rivalry between the two neighbors, and another U.S. ally, Australia, signaled it is ready to join the bank Washington has expressed concerns about. Australia was to decide Monday, and...

Obama just made a quiet nuclear deal with China

It seemed like a typical day for President Obama. He taped a TV interview on trade, hosted the champion NASCAR team on the South Lawn and met with the defense secretary in the Oval Office. Not so typical was something that didn't appear that day on the president's public schedule:...

Australia Caught in Middle of US-China Power Tussle

Canberra could struggle to balance its interests as tensions rise over the AIIB and TPP. Tensions between the United States and China over the Chinese-led Asian Infrastructure Investment Bank (AIIB) are the next embodiment of a hard and soft power battle for economic and political dominance in the Asia-Pacific, and...

China GDP Tumbles To Lowest In 6 Years Amid Quadruple Whammy Of Dismal Data

A month ago we warned "Beijing, you have a big problem," and showed 10 charts to expose the reality hiding behind a stock market rally up over 100% in the last year. Tonight we get confirmation that all is not well - China GDP fell to 7.0% (its lowest in 6 years)...

Greece seals sale of biggest port Piraeus to China COSCO

ATHENS, (Reuters) - Greece is to sell its biggest port Piraeus Port Authority to shipping group China COSCO Shipping Corporation, marking the second major privatization for the country since late last year. The port sale had been halted by the leftist government of Alexis Tsipras when it won elections in...

Japan, Sticking With U.S., Says It Won’t Join China-Led Bank

TOKYO — Japanese leaders indicated on Tuesday that their nation would not become a founding member of a new Chinese-led Asian development bank but instead remain loyal to the United States, which has urged its allies to refrain from joining. The officials cited concerns about the management of the new...

China, Pursuing Strategic Interests, Builds Presence in Antarctica

HOBART, Tasmania — Few places seem out of reach for China’s leader, Xi Jinping, who has traveled from European capitals to obscure Pacific and Caribbean islands in pursuit of his nation’s strategic interests. So perhaps it was not surprising when he turned up last fall in this city on the...

China’s Renminbi Is Approved by IMF as a Main World Currency

HONG KONG — The Chinese renminbi was anointed as one of the world’s elite currencies on Monday, a milestone decision by the International Monetary Fund that underscores the country’s rising financial and economic heft. The move will help pave the way for broader use of the renminbi in trade and...

China’s investment/GDP ratio soars to a totally unsustainable 54.4%. Be afraid.

“Once upon a time, Western opinion leaders found themselves both impressed and frightened by the extraordinary growth rates achieved by a set of Eastern economies. Although those economies were still substantially poorer and smaller than those of the West, the speed with which they had transformed themselves from peasant...

US anger at Britain joining Chinese-led Investment Bank AIIB

US statement says of UK membership that it is ‘worried about a trend of constant accommodation’ of China, in a rare public breach in the special relationship. The White House has issued a pointed statement declaring it hopes and expects the UK will use its influence to ensure that high...

Obama, Republicans push anti-China trade pact

Both the US Senate and House of Representatives have begun action on legislation to grant President Obama Trade Promotion Authority, also known as “fast-track” authority, which would enable the US government to finalize the Trans-Pacific Partnership, a trade agreement with 11 other countries in Asia and the Americas. The Senate...

The IMF just approved the Chinese yuan as a major world currency

What comes next is political. Monday afternoon, the International Monetary Fund’s (IMF) Executive Board voted in favor of allowing China’s currency — the yuan (or renminbi) — to join the ranks of the world’s most elite monies. On Oct. 1, 2016, the yuan will officially be added to the IMF’s Special...

Behind China’s Infrastructure Bank

The world is awash with money yet in most places economic growth is decelerating and deflation threatens. It’s a confusing time for investors, with both global equity and bond markets looking overpriced, as all of that demand for a return overwhelms the supply of true earnings growth. Yet there is one...

Why the US Is Trying to Squash China’s New Asian Infrastructure Investment Bank

The U.S. has been lobbying Asian nations to persuade them to reject China’s Asian Infrastructure Investment Bank. The U.S. has been working behind the scenes to kill a Chinese proposal for a regional infrastructure bank in Asia, according to the New York Times. As The Diplomat has reported in the past,...

China’s Offering a World Bank Alternative – and U.S. Allies Are Signing Up

Beijing is only too happy to offer an alternative to Western-dominated international finance. What's more surprising is that leading Western economies are signing up. “With friends like this, who needs enemies?” This must be what Washington policymakers muttered to themselves following the decision by their allies in London, Paris, Rome, and...

China’s Yuan May Draw $1 Trillion on Getting IMF Reserve Status

At least $1 trillion of global reserves will switch into Chinese assets if the International Monetary Fund endorses the yuan as a reserve currency this year, according to Standard Chartered Plc and AXA Investment Managers. People’s Bank of China officials have called for the IMF to include the yuan in...

China’s Shadow Banking Grinds To A Halt As Bad Debt Surges Most In A...

It is probably not a coincidence that just as we learn that "China’s bad loans jumped by the most since 2005 in the third quarter, fueling concern that a cooling economy will be further weakened as banks limit lending to avoid credit risks" that we also learn that in...

Apec summit backs Beijing roadmap to vast Asia-Pacific free trade area

China’s Xi Jinping calls Apec endorsement of US-backed Trans-Pacific Partnership a 'historic step'. The Apec summit has endorsed a Beijing-backed route towards a vast free trade area in the region, its host Xi Jinping said on Tuesday, calling it a “historic” step. The Asia-Pacific Economic Cooperation meeting also saw a flurry...

China’s Defiance Before the IMF: Incorporate the Yuan into the Special Drawing Rights

China is ready to counterbalance the dominance of the dollar in the International Monetary System through the yuan. In 2009, Zhou Xiaochuan, the governor of the People’s Bank of China, called for a transformation in the global reserve system; the violent fluctuations of the dollar demanded more stability and...

IMF’s Executive Board Completes Review of SDR Basket, Includes Chinese Renminbi

The Executive Board of the International Monetary Fund (IMF) today completed the regular five-yearly review of the basket of currencies that make up the Special Drawing Right (SDR). A key focus of the Board review was whether the Chinese renminbi (RMB) met the existing criteria to be included in...

Chinese Commodity Crash Continues, But Pigs Are Flying

When it comes to keeping track of China's economy, one can listen, and ignore, the official goalseeked and made-up-on-the-fly data released by the government, or one can simply observe the price dynamics of the all-important Chinese commodities sector (because with fixed investment accounting for well over 50% of GDP,...

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