Friday, March 22, 2019

China Accuses US of Militarizing South China Sea

BEIJING -- China on Friday accused the US of militarizing the South China Sea, just days after it was revealed that Beijing had deployed surface-to-air missiles on an island in the hotly disputed area. Chinese Foreign Ministry spokesman Hong Lei told reporters that patrols by US military aircraft and Navy...

Joblessness Rising in China as Economy Slows

BEIJING - A state-owned Chinese coal company recently announced layoffs for 100,000 workers over the next three months, the biggest single job cut in China in years. But the layoff, despite its size, is just a snapshot of the emerging problem of joblessness that China faces as the world's...

Chinese exports plunge 25% in February

Chinese exports have seen their sharpest drop in almost seven years, adding to concerns over the health of the world's second largest economy. Exports dropped sharply by 25.4% from a year earlier, while imports fell 13.8%. The weak data comes on the heels of Beijing registering the slowest economic growth in...

ICBC Agrees to Buy Control of Standard Bank Trading Unit

Industrial & Commercial Bank of China Ltd., the world’s most profitable lender, agreed to buy control of Standard Bank Group Ltd.’s markets unit to expand in trading spanning commodities and interest rates to currencies. Standard Bank, based in Johannesburg, sold 60 percent of the London-based business to ICBC for about...

China Is About to Get Serious With Bad Debt

China's banks, which dialed down fundraising efforts this year even as bad debts swelled, are making up for lost time. Both lenders and the companies set up to acquire their delinquent assets are bolstering their finances. China Citic Bank Corp. last month announced plans to raise as much as 40...

China’s exports tumble again in May as global demand stays weak

May's soggy Chinese trade data offered the latest sign that the world's second-largest economy was still a long way off from full health. Exports in dollar-denominated terms tanked 4.1 percent on-year, more than double April's 1.8 percent fall and slightly worse than estimates for a 3.6 percent decline, Reuters said...

China, Vietnam pledge peaceful resolution for sea dispute

(Reuters) - China and Vietnam have pledged to look for a peaceful resolution to their dispute in the South China Sea via talks, following a meeting between China's president and the head of Vietnam's Communist Party, state news agency Xinhua said on Wednesday. A joint communique carried by Xinhua said...

China Trade Balance Plunges To 11-Month Lows As Exports Crash Over 25%

Worse than expected is an understatement. Things are not getting better in China as Exports crashed 25.4% YoY (the 3rd largest drop in history), almost double the 14.5% expectation and Imports tumbled 13.8%, the 16th month of YoY decline - the longest ever. Altogether this sent the trade surplus down...

Malaysia-China sign historic 14 agreements worth RM144b

PM Najib Razak says it is the biggest ever recorded with his official visit overseas and a historic achievement for both countries. Malaysian and Chinese companies made history today with the signing of 14 agreements worth RM144 billion. Prime Minister Najib Razak said the amount was the biggest ever recorded in...

China economy: Workers of the world’s factory protest against wage cuts and layoffs

In China's industrial heartland, the Communist Party controls the unions – but workers who feel mistreated refuse to be silenced. In the “world’s factory”, the workers are angry and disillusioned. Strikes and other labour protests have spiked across the country as Chinese manufacturing plants lay off workers and reduce wages in...

How China’s Currency Manipulation Enhances the Global Role of the U.S. Dollar

But it's not quite that simple. In fact, Beijing benefits from the dollar’s dominance. On April 16, Zhou Xiaochuan, the governor of China’s central bank, the People’s Bank of China, once again set off alarm bells during a speech at the International Monetary Fund (IMF). “Starting from this April,” he...

How One Belt, One Road will give China’s developing neighbours easier access to Chinese-made...

China has experienced unprecedented growth, going from an inward-looking agricultural country to a global manufacturing powerhouse. ‘One Belt, One Road’ creates a land and maritime link to China’s developing neighbours and beyond and their demand for Chinese-made products and materials. By Dennis Wong, Sidney Leng and Moritz Rudolf

ICBC buys Barclays’ US$80bn London gold vault

ICBC Standard Bank is buying Barclays' London precious metals vault, giving the Chinese bank the capacity to store gold worth more than US$80bn in the secret location. The vault is one of the largest in Europe, with a capacity to hold 2,000 tonnes of gold, silver, platinum and palladium. It...

China’s Army of Global Homebuyers Is Suddenly Short on Cash

China's escalating crackdown on capital outflows is sending shudders through property markets around the world. In London, Chinese citizens who clamored to purchase flats at the city’s tallest apartment tower three months ago are now struggling to transfer their down payments. In Silicon Valley, Keller Williams Realty says inquiries from...

Five Signs of China’s Growing Influence in the World Gold Market

As we’ve been reporting for months, China is quietly becoming a dominant player in the world gold market, as the yellow metal shifts from the West to the East. Now the mainstream media is starting to take notice. Not only is China the top consumer of gold in the world,...

Zhou Xiaochuan: Reform the International Monetary System

The outbreak of the current crisis and its spillover in the world have confronted us with a long-existing but still unanswered question,i.e., what kind of international reserve currency do we need to secure global financial stability and facilitate world economic growth, which was one of the purposes for establishing...

China to ease commercial banks’ bad debt burden via equity swaps

China's central bank is preparing regulations that would allow commercial lenders to swap non-performing loans of companies for stakes in those firms, two people with direct knowledge of the new policy told Reuters. The new rules would reduce commercial banks' non-performing loan (NPL) ratios, and free up cash for fresh...

Chinese fund eyes Glencore’s gold mine in Kazakhstan

China's Silk Road Fund, a US$40 billion pool set up to invest along the ancient trade routes with Central Asia, is discussing a joint bid for Glencore Plc’s gold mine in Kazakhstan. The fund is partnering with China National Gold Group Corp on a possible joint offer for the Vasilkovskoye...

Top Chinese carmakers plot major push into India

China's top carmaker SAIC Motor Corp and Great Wall Motor, its biggest maker of SUVs, are spearheading the country's first major push into India, one of the world's fastest growing auto markets, as growth at home stagnates. The entry is late and risky - global carmakers like Volkswagen AG, Ford...

China’s One Belt One Road Initiative: What we know thus far

President Xi Jinping launched China's “One Belt, One Road” (OBOR) initiative in 2013 with the stated aim to connect major Eurasian economies through infrastructure, trade and investment. The initiative was later specified to contain two international trade connections: The land-based "Silk Road Economic Belt" and oceangoing "Maritime Silk Road." The “Belt” is...

China’s Global Ambitions, Cash and Strings Attached

EL CHACO, Ecuador - Where the Andean foothills dip into the Amazon jungle, nearly 1,000 Chinese engineers and workers have been pouring concrete for a dam and a 15-mile underground tunnel. The $2.2 billion project will feed river water to eight giant Chinese turbines designed to produce enough electricity...

China’s Air-Sea Battle Plan for the South China Sea

A PLA researcher says AEW&C and the J-16 will help China achieve sea & air control over the South China Sea. In an interview with state media last week, Senior Colonel Du Wenlong was asked what China’s “trump card” was for establishing sea and air control over the South China Sea....

The China Syndrome: The Coming Global Financial Meltdown

All the phantom wealth piled up in China's boost phase is now melting down, and the China Syndrome will trigger a meltdown in global phantom assets. The 1979 film The China Syndrome took its name from the darkly humorous notion that a nuclear reactor meltdown in the U.S. would burn...

China Just Made Its First Big Move On The Silk Road, In Uranium

Asia’s emerging Silk Road corridor may be one of the biggest developing stories in natural resources. And this week saw one of the first big deals in this space since China announced the initiative earlier this year. That came in Kazakhstan. Where a slate of Chinese companies announced agreements in...

Japanese Deflation Threat Hangs Over China

Political pressure on China not to devalue the yuan could be adding to deflationary pressure, as it once did to Japan. Donald Trump, if elected, says he’ll brand China a currency manipulator and slap steep tariffs on its exports. Such threats have been a staple of American politics for years. What’s...

AIIB outlines 5 core areas for investment

The China-led Asian Infrastructure Investment Bank will invest in five major areas during its initial stages-energy, transportation, rural development, urban development and logistics-a top official said on Thursday. The bank will later expand the investment to other areas such as education and healthcare to promote social development, said Chen Huan,...

China’s Xi Jinping At Davos, World’s Most Powerful Beggar

Xi Jinping will address the World Economic Forum on Tuesday in Davos, the first time a Chinese leader has done so. Chinese state media tells us he will speak strongly in favor of globalization. That message will be difficult to accept, however, as his country is closing off its market,...

Chinese Central Bank Vows to Expand Use of IMF Reserve Currencies

The Chinese yuan was included in the IMF's elite basket of reserve currencies last year. BEIJING—China’s central bank Governor Zhou Xiaochuan said the government will make efforts to expand the use of the International Monetary Fund’s basket of reserve currencies in its domestic economy. Mr. Zhou said China will use both...

Obama’s quiet nuclear deal with China raises proliferation concerns

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: notification to...

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...

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