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China, “workshop to the world,” produces low-priced goods that have overwhelmed the global economy with value… except for some notable exceptions.
Historically, it’s a nation that’s not always held to the same health or safety standards to which US manufacturers, for example, are obligated to uphold. Occasionally it’s resulted in disastrous consequences.
(more...)Forbes has revealed its annual list of top billionaires and big gains have been made in Asia. China, for the first time ever, has the most billionaires outside the US when Hong Kong is included.
Notably, a decline in the number and wealth of US billionaires is continuing. The total number of US billionaires is down to 40 percent from 45 percent last year. Also, this year’s number one, worth $53.5 billion, is Mexican telecom and conglomerate business owner Carlos Slim. Though, as would be expected, Bill Gates and Warren Buffett follow.
(more...)Day after day, China’s heavyweight status becomes more pronounced. We’ve discussed it before, due to its economy, which is in the process of overtaking Japan’s second place in size and its growing influence in Latin America. Today, we take a look at its strengthening influence in Asia… and Japan in particular.
(more...)Providing the world’s reserve currency has its privileges. Not the least of which is the continued willingness of foreigners to soak up the massive amounts of debt issued by the US despite the nation’s continued debasement of the dollar.
Yet, what if the foreign nations stopped buying? We’ve certainly heard of the calamity that should result from China cutting the US off, but perhaps we shouldn’t be so certain that’s the case.
(more...)With over 10 trillion yuan in Chinese bank loans disbursed in 2009, and more trillions on the way, George Soros, chairman of Soros Fund Management, remains concerned China’s economy is overheated. In a recent Hong Kong interview he explains how a hard landing could be in the making.
From MarketWatch:
(more...)China has apparently noticed the tiny $6.4 billion military equipment deal the US recently inked with Taiwan. Unsurprisingly, it’s not happy about it. The Pentagon informed Congress about the transaction knowing full well it would upset the Chinese government and could spur retaliation.
From The Washington Post:
(more...)Edging out Japan, it’s set to soon become the world’s second largest economy. It’s already overtaken Germany as the world’s largest exporter by shipping $1.2 trillion worth of goods in 2009. As a result, China looks destined for strength, as does its currency the yuan. It’s currently pegged to the dollar, but there is a great deal of economic and political pressure building up to break the managed exchange rate.
(more...)China sees a bubble ahead and is trying to avoid it – is that such a bad thing?
Isn’t this what we expect Ben Bernanke and the Federal Reserve to do here at home – take clear and decisive action to drain off excess liquidity in the economy before inflation takes hold?
The People’s Bank of China did just that after it saw that 1.4 trillion yuan ($204 billion) worth of bank loans were issued in January, more than the total loaned in the three previous months combined.
(more...)Given record levels of indebtedness all around the industrialized world, it’s probably an inopportune moment in time for the US to be stirring the political pot with China through weapon sales to Taiwan and other measures. The rising Asian power holds in its arsenal trade restrictions, hackers, and, probably the most significant area of concern, the “debt bomb” that China’s been steadily building.
(more...)China produced over 300 tons gold in 2009, a new world record in output. Already, for the past three years, China has been the world’s largest producer ahead of South Africa, and now the massive nation is also on the verge of becoming the world’s leading gold consumer.
According to Reuters:
(more...)China has quickly become the go-to country for nations in need. With a $2.4 trillion stash of foreign exchange reserves it’s hard for debt-laden countries to not consider asking it for a helping hand. The US relies on China’s Treasury purchases, and it’s no wonder that Greece is now turning there as well.
(more...)Just as Japan’s economy has been slumping over the past two decades, China’s has been vigorously building steam. And, as Bill Emmott points out in an article today, it won’t be long until Japan gets bumped down a notch and China takes its place as the world’s second largest national economy after the US.
(more...)