 |
 |
 |
 |
 |
 |
 |
Earlier this week Standard and Poor’s released a headline-grabbing report on global corporate borrowing. The report estimates that there will be $53 trillion in new corporate borrowing between now and 2017. Of that $53 trillion, Chinese corporations will account for a whopping $17.6 trillion, 33 percent of the total. When you dig into the details you [...]
The People’s Bank of China recently released full year 2012 data on the nation’s Balance of Payments (BOP) and International Investment Position (IIP), which shows how the nation’s external balance sheet evolved in the course of the last year. China’s balance of payments shows a dramatic change in cross-border capital flows in 2012. The financial [...]
Hearing on China’s New Leadership and Implications for the United States - February 7, 2013 Economic Rebalancing in China: For the past several years China’s top leadership has repeatedly described the country’s current economic model as “uncoordinated, unsteady, imbalanced, and unsustainable.” This language is in sharp contrast to what has been a decade of apparent success: [...]
Michael Pettis’ new volume, The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy, is an important new take on the ramifications of global imbalances, in particular for China and the United States. The book sketches the familiar outlines of Chinese domestic and external imbalances, a sky-high investment share of GDP, [...]
2012 was a record year for Chinese investment in the United States. Chinese firms completed U.S. deals worth $6.5 billion, a 12 percent increase from the previous record of $5.8 billion in 2010. This new record reflects both the growing determination of Chinese firms to expand overseas and the attractiveness of U.S. markets and assets [...]
Many China analysts do not look fondly upon the Hu Jintao-Wen Jiabao administration. Coming from the high of state-owned enterprise and banking reforms in the Zhu Rongji era, the past ten years of gradual reform under Hu and Wen has been disappointing. However, the slowdown in the pace of economic reform does not mean that [...]
China’s capital-intensive firms struggle to manage the new world of slower growth There is much debate over the implications of rebalancing on China’s industrial sector. Over the past 11 years, the profit growth of industrial companies – one of the main benefactors of China’s investment growth model – averaged 33.3 percent compared with only an [...]
Private investors continue to lead the state despite slower growth In the midst of the noise surrounding financing for private companies and state-led stimulus to combat weaker growth this year, it may come as somewhat of a shock that investment by private companies is a major driver of the current recovery in fixed investment growth [...]
The third quarter GDP number for China was released today, showing a decline in growth to 7.4 percent (compared to 9.1 percent a year ago). Instead of a long post reiterating all the factors at play, sometimes a chart or two can sum things up succinctly. Here are the two most important graphs for understanding the [...]
The bright spot in a slowing dragon Sticky consumption may be a bright spot in the gloomy China slowdown dialog, but will consumers remain optimistic without manufacturing and real estate? Over the most recent Chinese national holiday households were not able to deliver the same pace of sales growth bucking last year’s trend as retail [...]