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Showing posts from October 15, 2018

Chona Economic Review: Daily News update

1. Government planning crackdown to cull China’s P2P industry China’s troubled peer-to-peer (P2P) industry could be on the verge of collapse, say industry leaders, as new regulatory restrictions are set to cut the numbers of operating firms from the thousands to as few as 50 in the next year. Online lending has exploded in China in recent years, with firms taking advantage of an under-regulated environment and millions of Chinese citizens eager to find routes to credit. The industry is now worth about $120 billion, says the  Financial Times . A string of defaults sparked by a government crackdown earlier this year shook confidence in the market, with many investors taking to the streets to protest and some creditors running off with funds. China’s financial regulators plan to cull the number of licensed firms to a few dozen that meet a list of strict criteria. Executives from some of China’s largest P2P platforms think that this process could come in the next 12 months. “The lice

"You tell me"; China’s ambassador in Washington Cuī Tiānkǎi 崔天凯, China’s ambassador in Washington , gave an  interview to Chris Wallace of Fox News . The Chinese embassy  published a transcript  of the interview “including contents not being broadcasted.” Wallace opened with a question about U.S. Vice President Mike Pence’s allegation  in his October 4 speech  that China is  meddling  in American elections. Much of the Chinese state media coverage of the interview focused on Cui’s denial of this — in my opinion, laughable — allegation. Wallace also pressed Cui on trade issues, intellectual property, espionage, North Korea, and China and America’s behavior in the South China Sea, but not the  Xinjiang re-education / concentration camps  that the government calls “vocational centers.” Cui dismissed, denied, and defended China against all accusations. He comes off as a competent diplomat, but his performance is unlikely to win any converts to the Party’s cause.  Perhaps the only amusing exchange of the interview: Wall

Is China to blame for Pakistan’s economic woes?

Despite Prime Minister Imran Khan’s calls for financial self-sufficiency, Pakistan has been forced to seek a bailout from the IMF as the country’s economic situation continues to deteriorate. If approved, the bailout would be Pakistan’s 13th since 1980 and potentially the largest; between $6 and $12 billion is currently being sought. We argued in July that Pakistan’s rapidly expanding current account deficit combined with plummeting foreign reserves would likely lead to the country having no choice but to go to the IMF. The past week proves that hypothesis, but the question remains as to why Pakistan’s current account deficit and competitiveness has deteriorated to this extent despite multiple warnings. The US is blaming China, and has firmly said that it will veto any IMF bailout that would help to repay loans to China. But is China really to blame for Pakistan’s economic woes? Pakistan’s Prime Minister Imran Khan has been forced to go to the IMF for emergency funding Source: Liv

Report: Defusing the South China Sea Disputes: A Regional Blueprint

CSIS’s expert working group on the South China Sea, which was launched in mid-2017, brings together prominent experts on maritime law, international relations, and the marine environment. The members seek consensus on realistic, actionable steps that claimant states and interested parties could take to boost cooperation and manage tensions at sea. The group has met three times since launching to tackle issues that it considers necessary for the successful management of the South China Sea disputes and produce blueprints for a path forward on each. The members believe the three proposed agreements below add up to a robust model for managing the South China Sea disputes, one which would be both legally and politically feasible for all parties. The agreements are published here in the expert working group’s first report,  Defusing the South China Sea Disputes: A Regional Blueprint . The working group is chaired by AMTI director Gregory Poling and includes a diverse set of experts from c

CHINA:  Party Watch Weekly Report

 Party Watch Weekly Report 2|2 2.6.2018-2.12.2018 By David Gitter, Julia Bowie, Nathanael Callan, Brock Erdahl, and Sandy Lu Highlights Party propaganda focused on countering US President Donald Trump and Vice President Mike Pence’s recent criticisms of China and highlighting China’s contributions to the international order and economic globalization (see Propaganda Work section).The Catholic Church in China published a five-year sinicization work plan (see United Front Work section).The National Supervision Commission placed Interpol President Ministry of Public Security Deputy Head Meng Hongwei under investigation for receiving bribes and violating the law (see Party Discipline section).The Central Committee General Office released a notice on making an overall plan for regulating supervision, inspection, and evaluation work meant to “further improve work style and resolutely overcome formalism and bureaucratism” (see Party Discipline section).International Department Minister So


TRIVIUM CHINA: THE TIP SHEET , know China better HEARD IN BEIJING "[We will] consider treating state-owned enterprises with the principle of 'competitive neutrality.'" - Yi Gang , PBoC governor Some context:  Yi said that over the weekend in Bali. It's a sign that China is increasingly worried about its SOEs facing market access restrictions abroad. More in the Tip Sheet below. There are no restrictions on forwarding the Tip Sheet, so send it on to friends and colleagues who can  click here to subscribe. And let us know what you think – your feedback is always appreciated. THE TIP SHEET FINANCE & ECONOMICS 1. Yi Gang’s weekend media blitz "Nothing to see here." That was the essence of PBoC Governor Yi Gang’s statements to media  over the weekend. Yi made the comments while attending the G20 Meeting of Finance Ministers and Central Bank Governors and IMF fall meetings in Bali.  Yi tried to convey a sense of confidence and calm,  despite a

China Economic Review: Daily News Update

Daily News Update The day's top China business headlines Today's briefs AUTOS  1. Chinese car sales take biggest hit in seven years China’s auto sales contracted for the third consecutive month in September, the  Wall Street Journal reports, as the world’s largest auto market skids towards its first annual decline in decades. Year-on-year sales dropped 11.6% to 2.39 million vehicles last month, according to the state-backed China Association of Automobile Manufacturers. Passenger cars fared particularly poorly, with sales 12% down y/y to 2.06 million, adding to a Q3 decline of 7.6%. Economic headaches such as trade tensions with the US and a gloomier macro outlook are weighing on consumers’ car-buying behaviour, say analysts. “We underestimated the impact” of the slowdown, said the association’s assistant secretary-general Xu Haidong, who believes that previous estimates for 3% growth in 2018 are out of reach. The drop off is considerably larger than in the past tw