China Economy: News & Discussion

[SANITY]

China tense about Trump's "complex game" of mending fences with Russia

BEIJING: China is getting increasingly worried about the possibility of a thaw in the relationship between the United States and Russia after president-elect Donald Trumptakes office next month. Any improvement in the relationship would seriously hurt Beijing's foreign policy goals including its ability to deal with neighbors like Japan and India, experts said.

"There is a lot of anxiety in Beijing that Russians who have all along taken an anti-US stance may start to think differently," Stephen Blank, Senior Fellow for Russia at the American Foreign Policy Council told TNN. "If the US and Russia come closer, it implies that China-Russia relationship would be affected," he said.

Beijing's concerns were recently reflected in the People's Daily, the official mouthpiece of the Chinese Communist Party, which published a long commentary acclaiming Beijing's close relationship with Moscow before ending with an ominous paragraph, which said,"Looking into the next year, the international situation may become even more complicated, thus posing greater challenges for the development of both China and Russia".

Trump has publicly expressed his admiration for Vladimir Putin, the Russian president. He enhanced his charm offensive by recently naming Exxon Mobil Corp. CEO Rex Tillerson, who has a personal relationship with Putin, as secretary of state last week.

Russian commentators including Dmitri Trenin, director of the Carnegie Moscow Center, have said there is a strong possibility of US and Russia mending fences during the Trump presidency. The next US president might lift economic sanctions against Russia, which has been in dire financial condition since the sharp fall in the prices of oil, its major export.

Chinese concerns were reflected by Wang Yi, the country's foreign minister who said he expected a "shake-up in global governance" while asserting that China will manage the situation well. "We will lead the way amid a shake-up in global governance, we will take hold of the situation amid international chaos, we will protect our interests amid intense and complex games," he said in an interview to the Peoiple's Daily. "Only if China and the United States respect each and give consideration to other's core interests and key concerns can there be long-term, stable cooperation, and effect win-win mutual benefit," he said.

An important issue is how will these developments play out for India.

Blank pointed out that any changes in this relationship is of great importance to New Delhi because Russia is a major source of military equipment for India. "India is gradually and steadily moving away from Russia, and getting closer to the US. This is a matter of concern for both Russia and China," he said.

Analysts say Moscow would try to preserve its arms market in India even if means irritating China, which is an important economic partner. On its part, China is trying to find ways to compensate Russia's future losses by introducing the arms market in Pakistan. Beijing has invited Russia to participate in the China-Pakistan Economic Corridor. Chinese officials are also taking Pakistani leaders with them in meetings with Russian officials in recent weeks.

Chinese analysts are pointing out that Trump has done what is unusual for a US politician, which is publicly confess his admiration for Russian president Vladimir Putin. "It is expected that bilateral ties will see signs of relief at the start of Trump's term of office," the government controlled Global Times of Beijing said in an analysis.

Not just Trump, even friend Putin caused some serious unease in Beijing when he flew to Japan to meet Prime Minister Shinzo Abe in a resort. The two leaders inked $300 billion worth of business deals although there was no headway in their border negotations. This is the first time that a Russian president visited Japan for bilateral talks in 11 years. Japan is capable of offering sufficient business to Russia to reduce its reliance on China, experts said.

China is still trying to come to terms with Trump, who is seen in Beijing as a disrupter of the basic ideas and themes on which China-US relationship is based. Trump recently challenged the one-China policy concerning Taiwan although Washington has accepted it over the past decades.


Initially, Beijing saw Trump as a major opponent of China's global expansion in trade and investment. He was expected to focus on the business side of the relationship and do what he can to stop China from "stealing American jobs". But the president-elect sent shock waves through the Chinese leadership when he challenged their one-China policy. China regards Taiwan as its own territory, and cannot tolerate anyone questioning this "one-China" policy.


"Trump's game is a game of nerve which relies on uncertainty and unpredictability," said People's Daily in another commentary. "His game of nerve is not only dangerous for China-US relations, but dangerous for world peace and prosperity," it said adding that, "Trump's us-versus-them view is simplistic, outdated, and dangerous".


Chinese experts also point out that differences between Washington and Moscow are far too big and complex to be resolved easily.



"In the first place, Washington and Moscow may thaw their frosty antagonism in the intractable Syrian issue as both Trump and Putin have the same will to strike against the Islamic State. But they can hardly compromise with each other when it comes to the distribution of power within Syria in the post-war period," the Global Times said.

 

[Indx TechStyle]

Image Credit: Wikimedia Commons/ Ermell
China's GDP Growth: Slow and Slower?
China’s official figures show slowing growth – and the real picture may be worse.

China has slumped to its slowest annual growth rate since 1990. With the yuan diving and a new Trump administration to contend with, Beijing has its hands full keeping Asia’s biggest economy on track in 2017.

On Friday, Beijing reported a 6.8 percent rise in gross domestic product (GDP) for the December quarter, slightly higher than the 6.7 percent median estimate predicted by a Bloomberg survey. For 2016, the world’s second-largest economy reported GDP growth of 6.7 percent, right in the middle of the official target of 6.5 to 7 percent and virtually in line with Chinese President Xi Jinping’s recent forecast.

The official data pointed to stronger retail sales, rising by 10.9 percent in December, while industrial production weakened to 6 percent growth. Fixed asset investment grew by 8.1 percent over the year, weaker than the 10.7 percent reported in the first three months of the year, although the services sector picked up speed, posting a 7.8 percent rise compared to manufacturing’s 6.1 percent.

For the year, consumption contributed nearly 65 percent of growth, indicating the much-touted switch to consumption-driven growth may be building momentum.

Nevertheless, Bloomberg economist surveys are tipping only 6.4 percent GDP growth in 2017, compared to the 6.5 percent expansion forecast by both the International Monetary Fund and the World Bank. Both figures would represent a further slowing in the growth rate from the double-digit pace seen just a few years ago.

“Once the impact of past policy easing wanes, we think the economy will likely slow again,” Capital Economics’ China economist Liu Chang

told the Australian Financial Review.

“There are already signs that the property market is starting to cool. Credit growth has peaked. A sharp drop-off in activity is not likely. But growth is likely to slow in 2017.”

Among the difficulties for policymakers are the recent slump in the currency, with the yuan posting its biggest annual fall in two decades of 7 percent, and increasing capital flight pressures amid a rising U.S. dollar.

Beijing sold some $66 billion worth of U.S. Treasuries in November, its largest monthly fall since 2011, and while it still holds more than $1 trillion worth of U.S. government debt it is now the second-largest holder behind Japan.

Meanwhile, policymakers face the growing prospects of a trade war with the United States. U.S. Treasury Secretary nominee Steven Mnuchin said during a confirmation hearing he was ready to label Beijing a currency manipulator, while Commerce nominee Wilbur Ross has called China the “most protectionist” nation among the major economies.

China’s seemingly stable expansion in 2016 came on the back of 15 percent loan growth, with outstanding credit rising to an estimated 264 percent of GDP. This helped fuel a rally in property prices, adding to concerns of a new asset bubble.

“China’s economy ended 2016 with short-term growth firmly on track, but long-term sustainability veering further off it,” Bloomberg Intelligence economists Tom Orlik and Fielding Chen said.

‘Fake GDP’

Adding to concerns over the state of China’s economy are reports of exaggerated economic data from the provinces. In 2012, the sum of all provincial GDP was 5.76 trillion yuan ($837 billion) more than the national figure, sparking speculation that the regions have been over-inflating numbers to gain Beijing’s favor.

According to the Australian Financial Review, Liaoning Governor Chen Quifa recently admitted to the local legislature that the province faked growth data between 2011 and 2014, with fiscal revenue overhyped by as much as 20 percent in some years.

With China’s GDP reportedly growing by exactly 6.7 percent in the first three quarters of 2016, and 6.8 percent in the last quarter, China bears have had plenty of reasons to be suspicious amid slumping global trade, fluctuating oil prices, and sharemarket volatility that impacted every other major economy.

Capital Economics’ “China Activity Proxy” based on credit demand, domestic freight, electricity production, floor space under construction, passenger traffic, and seaborne cargo presents a different view of the official data.

The London-based consultancy’s survey showed China’s GDP slumping from 6 percent at the end of 2014 to around 4 percent, only rising back up toward 6 percent following last year’s massive credit stimulus. It believes GDP will fluctuate between 4.5 and 5 percent in 2017.

“If the data is not credible, it affects how investors look at China’s policies in general. The lack of credibility also makes it much harder for China’s policymakers to do their job,” Capital Economics’ Mark Williams told the Australian financial daily.

Is China faking it until it makes it? Asia will be hoping that Beijing can get a better grip on its economy in 2017, amid growing challenges to its ambitions, both internal and external.

 

[ezsasa]

Image Credit: Wikimedia Commons/ Ermell
China's GDP Growth: Slow and Slower?
China’s official figures show slowing growth – and the real picture may be worse.‘Fake GDP’

If Americans take "make American, buy American" trump slogan seriously, it's only downhill for china from now on.

Ours is 100 billion $ stake, theirs is more than 300 billion $ dependency on American consumers.

 

[Superdefender]

If Americans take "make American, buy American" trump slogan seriously, it's only downhill for china from now on.

Ours is 100 billion $ stake, theirs is more than 300 billion $ dependency on American consumers.

Global investors and pundits are confused as Trump says buy American and make in America where as Xinping urging more globalisation. China's serious market is India, not America.

 

[ezsasa]

Global investors and pundits are confused as Trump says buy American and make in America where as Xinping urging more globalisation. China's serious market is India, not America.

That global investor and pundit sentiments are coming from ongoing Davos summit. Usually davos crowd is usually wrong about everything other than about themselves.

Today I was watching a debate where a firangi was saying Indian corporates are doing great CSR (corporate social responsibility) spending. Fact is they are the worst spenders. That's how wrong the Davos crowd is.

 

[3deffect]

All that glitters is not gold - China

Must Watch Documentry on china

 

[Indx TechStyle]

China’s economy is dangerously close to unraveling
The country’s debt is rising dramatically, while growth in gross domestic product is slowing

Getty Images
The People's Bank of China in Beijing.


It came not with a bang but a whimper.

The January data from China finally confirmed that the country’s foreign-exchange reserves fell by $12.3 billion to $2.998 trillion, which compares with the all-time high of $3.993 trillion in June 2014 (see chart).

A trillion here, a trillion there, and pretty soon we’re talking real money, right?


What the official reserve data do not show is that massive borrowings outside China have accumulated over the past 15 years, bringing net reserves down to about $1.7 trillion, according to statistics prepared by Kynikos Associates.

That much smaller reserve amount is not necessarily large enough to support the yuan exchange rate, particularly if foreign-exchange outflows accelerate again as the Chinese credit bubble has now burst, in my opinion.

An acceleration in borrowing with a slowing economy is the classic definition of a burst credit bubble.
Ivan Martchev​

China has a total debt-to-GDP ratio of close to 400%, if one includes the infamous unregulated shadow banking system that is habitually omitted from official statistics. In 2000, China’s total debt-to-GDP ratio stood near 100%. As Chinese GDP grew from $1.094 trillion at the end of the 20th century to $11.75 trillion at the end of 2016, the country’s total leverage ratio ballooned. China’s economy grew 11-fold, and total credit in the financial system surged by over 40-fold.

As the Chinese economy slows (see chart), the level of borrowing is accelerating, as can be seen here in China’s “total social financing” data.

This credit metric includes off-balance sheet financing outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. If Chinese GDP continues to slow (and there are many observers, myself included, that do not believe the official 2016 GDP growth rate of 6.7%), and total credit in the economy continues to surge, then the Chinese economy will in effect be running as fast as it can just to stand still. An acceleration in borrowing with a slowing economy is the classic definition of a burst credit bubble.

Partially inaccurate statistics

What was most surprising in 2016 is how orderly the situation in China was. There is also evidence of a slight uptick in economic activity, if one looks at the official statistics. But I don’t believe it to be fully accurate, because the Chinese have a history of “smoothing out” their official economic statistics. For example, their 34% devaluation of the yuan in December 1993 was aimed to help China deal with a recession that was never officially acknowledged. Evidence of the recession only showed up in secondary loan-loss data and other “undoctored” metrics.

I am surprised at the current calm in China, as credit bubbles tend to pick up speed and get rather disorderly when they begin to unravel. I don’t know if this unraveling will come in 2017 or later, but I am watching the official forex reserve data for evidence of accelerating outflows, which would be one sign that the unraveling is picking up steam.

Trump to accelerate China’s woes

On top of China’s own epic credit bubble, we have a phenomenon called Donald J. Trump, who has made it a priority to rebalance the U.S. trade deficit. While I fully support the president in his quest, he appears to point the finger at both China and Mexico in the same fashion. However, the Mexican situation is very different from the one with China, where the trade imbalance is running out of control.

Also see: Donald Trump picks the wrong target with his Mexican standoff

In 2016, as this table shows, the Chinese bought $115.775 billion of U.S. goods and services, while the U.S. bought $462.813 billion worth of Chinese goods and services, which makes for a gargantuan $347 billion trade imbalance and accounts for the lion’s share of the total U.S. trade deficit (see chart).

To be fair to Trump, the Chinese have been running a persistent trade surplus with the rest of the world over the past 10 years (see chart), but that surplus has been getting bigger because exports to China are slowing with the decline in Chinese GDP growth.

Trade as a political tool

More importantly, the Chinese have been using trade as a political tool as they habitually run bilateral trade deficits with many of their Asian trade partners to increase their political influence in the region. Such trade strategies are unlikely to influence the Trump administration, which is hell-bent on rebalancing the U.S.-China trade imbalance.

Trump’s clash with China on the trade issue comes at precisely the wrong time for the Chinese as their epic credit bubble is unraveling. While trade frictions and financial issues in China are unrelated events, Trump’s election is like kerosene thrown on an already burning economic fire in China. What I foresee happening here is similar to the Asian crisis in 1997-1998, this time emanating from China, with the caveat that today’s Chinese GDP is much bigger than total Asian GDP in 1997.

To those who may suggest I am merely making observations and not predictions, please see my January 23, 2015, MarketWatch article, “Why 2015 could be rough for China,” which I wrote before the bulk of China’s $1 trillion foreign-exchange outflow materialized. I am not sure if 2017 will be the year when the wheels come off the wagon in China, but I have seen increasing evidence of my credit-bubble theory coming to fruition and the economic repercussions likely to follow.

 

[tharun]

Chinese Debt...............................................

 

[Villager]

China to increase military spending by 7% in 2017


China says it will increase military spending by about 7% this year, just days after Donald Trump outlined a boost to the US defence budget.

BEIJING — China said Saturday that its military budget would rise by about 7 percent this year, apparently the lowest increase in seven years, signaling that its leaders do not plan to engage the United States in an arms race even as President Trump seeks to bolster the Pentagon’s spending.

Addressing reporters before the start of the annual National People’s Congress, Fu Ying, a spokeswoman for the legislature, said the increase would be “about” 7 percent. She said defense spending would amount to roughly 1.3 percent of China’s gross domestic product.

Last year’s proposed increase was 7.6 percent, though China has yet to release final figures indicating how much was actually spent. Those figures, and the exact number of this year’s projected increase, will be revealed in a budget that the government releases on Sunday, when the national legislature starts its annual full session.

Before 2016, the military budget had received double-digit increases for six years, a reflection of China’s then-roaring economy.

Chinese experts said the new budget would keep military spending roughly in line with the government’s usual formula of G.D.P. growth plus inflation.

As China’s economy continues to slow, annual growth in the gross domestic product is expected to be about 6.5 percent. Inflation hovers around 2 percent. And the government must also find more money for health care, education and other increasingly expensive social needs.

Chinese and Western military analysts said it was notable that Mr. Trump’s recent pledge to raise American defense spending by $54 billion had not spurred China to elevate its own spending further.

Ms. Fu said that China wanted good relations with the Trump administration but would respond to any challenges.

“President Xi Jinping and President Trump have had two direct phone calls, and the message was very clear, which is that there must be more cooperation between China and the United States so we become good partners,” Ms. Fu said. But she added that China would watch the effects of Mr. Trump’s global policy changes.

“Of course, everyone hopes that their impact will be positive, but if there are challenges, China will respond calmly,” Ms. Fu said.

The U.S. military is vastly more powerful than China’s, as Ms. Fu noted. “Fundamentally, this is about the United States worrying that China could catch up and surpass the U.S. in its ability,” she said. “But in fact there is a still a huge gap in ability between the U.S. and China, which is still a developing country.”

To emphasize his intent to strengthen the American military, Mr. Trump visited the country’s new aircraft carrier this week. The Gerald R. Ford is a nuclear-powered, 100,000-ton floating fortress due to be commissioned this year and is the first in a new generation of supercarriers.

The United States has 10 Nimitz-class supercarriers. In contrast, China is building its first aircraft carrier, a diesel-propelled vessel, and has one refurbished carrier from Ukraine.

Wang Xiangsui, a retired senior colonel in China’s Air Force who is now director of the Research Center of Strategic Issues at the Beijing University of Aeronautics and Astronautics, said Mr. Trump’s plans to increase military spending were unlikely to prod China into following suit. “I don’t think China will be oversensitive about this,” he said.

“Despite all the aggressive talk, no one wants a war,” Mr. Wang said. While the $54 billion increase sounds like a lot, he added, "the Americans didn’t achieve anything after spending six trillion in Iraq and Afghanistan.”

China’s top diplomat, Yang Jiechi, who visited Washington this week and met briefly with Mr. Trump at the White House, probably had the military budget on his mind as he tried to judge the mood of the new administration, said Dennis J. Blasko, an American expert on the Chinese military.

“I’m guessing Yang Jiechi was tasked to make an assessment of the state of the bilateral relationship to see if there may need to be a last-minute adjustment in reaction to the requested increase for the U.S. defense budget,” said Mr. Blasko, a retired army lieutenant colonel and the author of “The Chinese Army Today.”

Mr. Yang probably found the relationship to be on a sound enough footing, Mr. Blasko said. “I don’t think they want to get into a military budget fight with us, not even a rhetorical one.”

Ni Lexiong, a naval expert in Shanghai, said that if China really felt the need to spend more heavily on the military, it would not hesitate to do so.

“If China felt threatened, I don’t think slower economic growth would stop them from spending more on the military,” Mr. Ni said. “You have seen how the Chinese were willing to starve to build an atomic bomb. We do not worry about poverty when we think a larger military is necessary.”

He said the new budget would allow China to keep modernizing its navy and air force, the two services currently getting the most attention. The navy launched 22 warships in 2016 to replace old ones, and the budget would let it keep up that pace this year, he said.

“A chunk of the expenditure will go towards developing and manufacturing the latest weapons for a stronger air force and navy,” he said. “I believe this speed of replacement will continue, because it has been one of China’s long-term growth goals to build a military stronger than America’s one day, in either quality or quantity.”

While China’s future aircraft carriers are likely to be nuclear powered, the Chinese Navy will probably be focused on other, more important areas, said Lyle J. Goldstein, an associate professor at the China Maritime Studies Institute at the U.S. Naval War College in Rhode Island.

“Chinese submarine development and the building of destroyers and frigates are likely more expensive and more consequential for the overall military balance,” he said.

If Mr. Trump were to win his proposed increase of $54 billion, the American defense budget would be $603 billion, about 3 percent higher than under former President Barack Obama’s last budget plan.

The People’s Liberation Army’s official budget was about $146 billion in 2016. Western groups that study the Chinese military say that actual spending is roughly 1.2 to 1.5 times greater than the announced figures.

Using a rough estimate that assumes an average G.D.P. growth in China of 6.5 percent and a U.S. growth rate of 3 percent, China’s military spending would be expected to surpass America’s around 2040, said Bonnie S. Glaser, the director of the China Power Project at the Center for Strategic and International Studies in Washington.

Among the issues that Chinese military planners must deal with is how to handle the retrenchment of 300,000 personnel announced by President Xi Jinping in 2015, part of an effort to streamline the P.L.A. into a modern fighting force. Although most of those leaving the army are mid- to low-level officers and soldiers, the severance costs are expected to be substantial, retired Chinese officers said.

 

[amoy]

Hong Kong-Zhuhai-Macau Bridge near completion

On Feb. 19, construction of an estimated 5,481-meter-long tunnel neared completion following the installation of a sinking pipeline. The tunnel, part of the Hong Kong-Zhuhai-Macau Bridge, will be connected to the bridge once the last 183 meters are finished, according to the contractor, China Communications Construction Company Limited (CMCC), on Feb. 19.

At nearly 55 kilometers in length, including an underwater tunnel and a bridge over the sea, the Hong Kong-Zhuhai-Macau Bridge links Zhuhai in southern China's economic hub of Guangdong with Hong Kong and Macau. The infrastructure project will expedite trips between these regions.

Connected by 33 pipelines, the tunnel is the deepest and only deeply immersed tube tunnel in the world. A curve and non-standard pipe joint, the E-29 sinking pipeline, has been installed near the westernmost end of the bridge. It is 171.2 meters in length and is broken into eight segments.

With installation of the pipeline finished, construction of the bridge has entered its final phase, according to reports.

This is how the E29 underwater tunnel was transferred through the sea. [Photo\ ycwb.com]


Artificial islands were built to help constructing the bridge. [Photo\ ycwb.com]


With a length of 55 kilometers, the bridge is expected to become world's longest sea bridge when finished. It has been hailed by the Guardian newspaper as "one of the seven modern wonders in the world."[Photo\ ycwb.com]


The third “dolphin tower” was being connected to the bridge. [Photo\ ycwb.com]


The main section of the HK-Zhuhai- Macau bridge [Photo\ ycwb.com]

 

[lcafanboy]

China's economy will open up like never before says Chinese President Xi Jinping

President Xi Jinping has vowed to open up China like never before as the world's second-largest economy faces dwindling foreign exchange reserves and rising competition from countries like India for foreign investment.

China has been trying several measures to keep the economy floating and struggling to keep the growth rate steady. It has moderated its economic growth forecast for 2017 to "around 6.5 per cent" from the 6.7-7 per cent it had targeted last year.

This year's target is below expectations and signals China is likely to embrace risk-control over short-term growth. Last year, however, it achieved a full-year growth of 6.7 per cent. That figure was the weakest since the 1990s.

Xi, who has emerged as China's most powerful leader in recent years and who is nearing the end of his first term in office, told lawmakers yesterday that China's opening door will not close, vowing that the country will continue to open up on all fronts and continue to liberalize, state-run Xinhua news agency reported today. His remarks - made during a panel discussion with lawmakers from Shanghai at the annual session of the National People's Congress (NPC) - assume significance as China has been loosening its grip on foreign capital inflows and reducing restrictive measures and opening more sectors.

Yesterday, Premier Li Keqiang delivering a government work report detailed "unprecedented" opening-up measures to the outside world under its flagship 'Made in China' initiative. "Foreign firms will be treated the same as domestic firms when it comes to licences applications, standard setting, government procurement and will enjoy same preferential policies under Made in China 2025 initiative," Li said. Foreign firms will be able to get listed on China's stock markets and issue bonds. They will be allowed to participate in national science and technology projects, he said.

Significant improvements will be made in the environment for foreign investment. Service industries, manufacturing and mining will be more open to foreign investment, he added.
Local governments in China can, within the scope of the powers granted them by law, adopt preferential policies to attract foreign investment.

With the renewed focus for FDI, China is expected to aggressively vie with India for investments abroad. Its forex reserves - the world's largest - dipped below $3 trillion, sparking concerns among the Chinese policymakers.

In the past few years, India has become a major destination for FDI under the 'Make In India' program. According to a Financial Times report, "In 2015, India was for the first time the leading country ($63 billion) in the world for FDI, overtaking the US (which had $59.6 billion of greenfield FDI) and China (USD 56.6 billion)."

Source: http://economictimes.indiatimes.com...president-xi-jinping/articleshow/57495995.cms

 

[lcafanboy]

China sees first monthly trade deficit in three years

• 8 March 2017

Image copyrightEPA
China has reported its first monthly trade deficit in three years, after imports surged and a slowdown during the Lunar New Year holidays hit output.

Higher commodity prices and domestic demand were credited with pushing February's imports up 38.1% on a year earlier.

But exports unexpectedly fell 1.3%, giving a trade deficit of $9.2bn for the month.

China's monthly imports last exceeded exports in February 2014.

Analysts polled by Reuters had forecast China would have a monthly trade surplus of $25.8bn.

Import slowdown likely
The country's economic data from January and February can be distorted by the long holidays, which see businesses slowing down and often cutting back operations or closing completely.

And most analysts agree that the latest data is just a blip, with a surplus inevitable again once the impact of the holidays tails off.

"The latest trade data suggest that, seasonal distortions aside, both exports and imports strengthened at the start of 2017," said Julian Evans-Pritchard of Capital Economics.

"However we doubt that the current pace of import growth can be sustained. It is only a matter of time before we see a slowdown in domestic demand."

Rebalancing
With the Chinese economy expanding at its slowest pace in 26 years in 2016, Beijing is likely to be heartened by the latest import figures, as it looks for signs of improvement.

Leaders are trying to rebalance the economy, reducing reliance on state investment and exports, and growing more through domestic consumption.

At the weekend, Premier Li Keqiang used his speech at the country's rubber-stamp parliament, the National People's Congress (NPC) to cut China's annual growth target to 6.5%.

Carrie Gracie: Could China's Trump tactics actually be working?

China's trade balance was thrust back into the spotlight by Donald Trump during the US presidential election campaign.

He ramped up his protectionist rhetoric accusing Beijing of not giving US firms access to key Chinese markets, and of making it impossible for US firms to compete with Chinese imports because the value of the Chinese currency was kept artificially low.

However, since coming to office, Mr Trump has held off officially calling China a currency manipulator.

http://www.bbc.com/news/business-39191200

China is big Bubble Gum about to explode. But it will be painful to everyone on the planet as it would lehman brothers X 100 times. China expanded its economy by constructing Homes, 1000 cities but no one to live these are ghost cities. 11,000 kms of bullet trains but tickets are expensive than Airlines so they move empty, they have steel Factories which can supply entire world and still there will be surplus, all these thing were made by taking debts which now stands at 400% of its GDP. Their share market and economy tanked on 2/1/2016 when chinese share markets crashed over 40 % in just 2-3days as several debt repayments were about to default so they simply rolled over that debt which amounted more than a $1.2 trillion to stabilize the market. Now even that leeway is not available with trade deficit coming to haunt them.

 

[Superdefender]

First time in 3 years, imports outstripped exports. hmm.....

 

[aditya10r]

First time in 3 years, imports outstripped exports. hmm.....

It's a rogue economy at first.
I have never seen an economy with that many useless housing projects.

 

[Indx TechStyle]

It's a rogue economy at first.
I have never seen an economy with that many useless housing projects.

Not really useless.
When you have to urbanize the country at exponential rates, this is one of few steps you need to take.
Indian Government had been planning similar with land acquisition bill.

 

[aditya10r]

Not really useless.
When you have to urbanize the country at exponential rates, this is one of few steps you need to take.
Indian Government had been planning similar with land acquisition bill.

But we are not planning ghost cities like the commies.
They are nothing but burden to a country

 

[Indx TechStyle]

But we are not planning ghost cities like the commies.
They are nothing but burden to a country

Everything has a success or failure.
If we haven't ghost cities, we aren't having developed cities like Shanghai either.

Chinese actually acquired land in cities, invited foreign companies for short term investment to create jobs (big or small) to attract millions to cities.

Later, those labourers were given the ownership of land or slums, they were living in.
Hence, China converted poor peasents into landlords overnight.
City planning as per company's requirement. You have to face a rule in China that if you are going to set up an industry there, you have to take a local partner with you.
As a result, Chinese companies inherited lot of western & Japanese technology whichever was unclassified at least for establishments.
This is besides that 1966-99 scam; the leak for US critical technologies to China which resulted the rapid development long March rockets and accuracy of modern Chinese ballistic missiles.

China's economic rise & open market simply opened it's doors for acquiring high end technologies.

 

[shiphone]

LOL...dear....what a good stroy writer....

but I'm affraid none of your statement is true....come on, you could do better...

-----------------------
so called 'tech leak' was an 'excuse' not the 'cause '...lol...
1966-99 scam---what's that? ....lol

 

[Indx TechStyle]

but I'm affraid none of your statement is true....come on, you could do better...

Regarding Chinese way of urbanization, not doing my own way but quoting Jonathan Woetzel. I have noticed that Chinese Urbanization has taken place way faster than any other country in world and it can't be natural just because of economic boom.

It's just deliberate.

so called 'tech leak' was an 'excuse' not the 'cause '...lol...
1966-99 scam---what's that? ....lol

My bad, it's for 1996-99 not 1966-99.

Well, let's get on track.
Chinese are also downplaying that their benefactor Bill Clinton as the Massa president was highly generous in signing wavers that allowed critical space related tech to be transferred to China between 1996-1999, despite the reservations of the intel and security agencies.

The cap on tech transfer was lifted after the first of the Long March rockets exploded in 1996.

This link has all the details

http://www.whiteoutpress.com/timeless/how-china-conquered-america746/

February 15, 1996. A Chinese Long March 3B carrying a $200 million Loral satellite explodes 22 seconds after lilftoff.

March 14, 1996. President Clinton shifts control over regulating the export of communications satellites from the State Dept. which was primarily concerned with national security aspects of such exports, to the Commerce Dept., which is concerned with the economic benefits.

May 10, 1996. The Loral-led review commission investigating the February rocket explosion completes and passes on to Chinese officials its report, which according to the April 13, 1998 New York Times, discusses “sensitive aspects of the rocket’s guidance and control systems, which is an area of weakness in China’s missile programs.” The New York Times says that a Pentagon report concludes that, as a result of this technology transfer, “United States national security has been harmed”.

May 23, 1996. President Clinton calls for renewal of MFN for China, saying that renewal would not be “a referendum on all China’s policies,” but “a vote for America’s interests.”

June 8, 1996. China conducts an underground nuclear test.

July 21, 1996. Johnny Chung, according to the New York Times, brings Liu Chao-ying to two DNC fundraisers, including a $25,000 per couple dinner. Liu Chao-ying is a Lieutenant Colonel in the People’s Liberation Army and an executive at China Aerospace, which owns the Great Wall Industry Corp. that makes Long March rockets. Her father is the top commander of Chinese military forces. The New York Times says that Chung has told the Justice Dept. that Liu gave him the better part of $100,000 he contributed to the DNC in the latter part of 1996, and that the source of the money was the PLA.

July 29, 1996. China declares a moratorium on nuclear testing after conducting another nuclear test.

August 8, 1996. According to AP, Clinton meets again with Long Beach officials to advocate turning over the naval base to COSCO.

September 24, 1996. At the UN, President Clinton joins with the foreign ministers of China, France, Russia and Great Britain in signing the Comprehensive Test Ban Treaty forbidding all testing of nuclear weapons.

November 5, 1996. President Clinton wins reelection. According to the Center for Responsive Politics, the single largest Democratic donor during the election cycle was Loral CEO Bernard Schwartz, who gave $632,000 in ‘soft money’ to the Democratic Party between 1995 and 1996. The State Dept. issues regulations shifting responsibility for satellite launching licenses to the Commerce Dept.

January 1997. The Panamanian government awards the contract to operate the Atlantic and Pacific ports of the Panama Canal to a Hong Kong company, Hutchison Whampoa. China takes control of Hong Kong six months later. The United States, which is set to relinquish control of the canal next year, does not protest.

March 25, 1997. While in Beijing for a meeting with Premier Li Peng and President Jiang Zemin, Vice President Gore attends signing ceremonies for Boeing’s $685 million sale of five jetliners to China’s state-owned Civil Aviation Administration as well as a $1.3 billion joint venture between General Motors and China’s state-owned Shanghai Automotive Industry Corp.

May 1997. According to the April 13, 1998 New York Times, a classified Pentagon report reveals that Hughes and Loral scientists “had turned over expertise that significantly improved the reliability of China’s nuclear missiles” following the February 1996 rocket explosion. Hughes and Loral deny the New York Times report when it is published in 1998.

May 19, 1997. President Clinton announces that he will authorize MFN renewal for China.

October 1997. Chinese President Jiang Zemin makes a state visit to the United States. During the trip, he stops at a Hughes site to discuss satellites.

January 15, 1998. After China promises that it will no longer aid Iran’s nuclear program, President Clinton certifies that China is a reliable partner for nuclear technology exchange.

February 19, 1998. Despite opposition from the Justice Dept, President Clinton signs a waiver approving the launch of a Loral satellite from a Chinese rocket and reportedly authorizing the transfer of the same type of technology that the Pentagon said had “harmed” US security and that the Justice Dept. was investigation Loral and Hughes for their illegally transferring in 1996.

The same Bill Clinton was acerbic and vitriolic after our nuke tests in 1998 and put us under heavy sanctions.

Plus, it was about only few techs from US only. Has been a lot about French & Soviet role in Chinese aerospace & TNW, UK inside the semiconductor industry.

 

[amoy]

ZTE settles with US on export violations

ZTE, one of the largest telecom equipment manufacturers in China, announced on Tuesday that it was entering into a global settlement with the US government regarding its conduct relating to US export control and sanctions.

A statement by ZTE on Tuesday said the company agreed to a criminal and civil penalty above $892 million.

A US Commerce Department investigation followed reports in 2012 that ZTE had signed contracts to ship millions of dollars in hardware and software from some of the best-known US technology companies to Iran's largest telecom carrier.

In March 2016, the Shenzhen-based company was placed on a list of entities that US suppliers could not work with without a license. ZTE acted contrary to US national security or foreign policy interests, the Commerce Department said at the time.

The Commerce Department will recommend that ZTE be removed from that list if the company lives up to its deal and a court approves its agreement with the Justice Department, according to Reuters.

"ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company," Zhao Xianming, chairman and CEO of ZTE Corp, said in the statement.

"Instituting new compliance-focused procedures and making significant personnel changes has been a top priority for the company. We have learned many lessons ... and will continue on our path of becoming a model for export compliance and management excellence. We are committed to a new ZTE, compliant, healthy and trustworthy," he said.

Zhao was named chairman and CEO of ZTE Corp in April 2016 with a mandate to lead a new ZTE with a best-in-class export compliance program.

"The agreements we reached will enable us to move forward in a stronger position than ever before," he said.

"ZTE has made tremendous progress in building a world-class compliance program and I look forward to working with others in the company's leadership to further build and improve our operations and processes," said Matt Bell, chief export compliance officer.

"Our global legal and compliance professionals will continue to work together to identify risk across the company and continually improve the effectiveness of our overall compliance program," he said.

The action marks the Treasury's Office of Foreign Assets Control's largest settlement with a non-financial entity, according to Reuters.

The fourth-largest smartphone vendor in the US, ZTE sells handsets to US mobile carriers AT&T Inc, T-Mobile US Inc and Sprint Corp. It relies on US companies including Qualcomm and Intel for components.