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looking beyond borders

foreign policy and global economy

Archive for the tag “debt”

The Belt And Road: The Good, The Bad, And The Mixed

Much of the narrative on China’s Belt and Road Initiative (BRI) has been polarised…Neither of these polarised narratives seems to fully account for the complex and heterogeneous variety of activities in the BRI.

Read Here – The Diplomat

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‘China’s Manhattan’ Borrowed Heavily. The People Have Yet To Arrive.

Chinese local governments are swimming in debt. By official accounts, that debt totals $4.5 trillion. By unofficial estimates, it could be as large as $10 trillion…China has long borrowed heavily to build and then counted on breakneck economic growth to pay it back. The script: Sell vast amounts of land to developers, borrow to subsidise construction, and jobs and new cities will result. It was a model that helped China build its skyscrapers and high-speed rail lines and ushered in an era of prosperity.

Read Here – The New York Times

Saudi Crown Prince Oversees $20 bln Of Deals With Pakistan

Crown Prince Mohammed bin Salman told Pakistani Prime Minister Imran Khan to consider him the “ambassador of Pakistan” in Saudi Arabia moments after the two countries signed key memorandums of understanding (MoUs) worth $20 billion on Sunday in the fields of energy, petrochemicals, minerals, agriculture and food processing.

Read Here – Arab News

Exposing China’s Overseas Lending

Over the past 15 years, China has fueled one of the most dramatic and geographically far-reaching surges in official peacetime lending in history. More than one hundred predominantly low-income countries have taken out Chinese loans to finance infrastructure projects, expand their productive capacity in mining or other primary commodities, or support government spending in general.

Read Here – Project Syndicate

The U.S. Economy Is Great, Really, For Now

Trump haters may be tempted to conclude from all this that he is about to lead America into a sudden decline, but that is not the point. This American decade started under President Obama, continued under Mr. Trump and survived congressional gridlock throughout, showing that the economy often rises above politics. The economy is driven less by ideology than by its own internal cycles, and this cycle has been turning in America’s favor for so long that it is unlikely to last much longer.

Read Here – New York Times

China’s Coming Financial Crisis And The National Security Connection

The biggest national security issues, however, arise from the unpredictable political impact of a recession in China. We learned this, or should have, during the 1997 to 1998 Asian crisis. China may have had a disguised recession or near recession in 1998, but it was in a much smaller economy. Apart from that one episode there is no collective memory of recession and how to deal with it. As such, China is now psychologically unprepared to deal with the challenges of a recession.

Read Here – War On The Rocks

The 8 Major Forces Shaping The Future Of The Global Economy

The world is changing faster than ever before. With billions of people hyper-connected to each other in an unprecedented global network, it allows for an almost instantaneous and frictionless spread of new ideas and innovations. Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty, and exponential advances in technology, and it’s clear the next decade is setting up to be one of historic transformation. But where do all of these big picture trends intersect, and how can we make sense of a world engulfed in complexity and nuance? Furthermore, how do we set our sails to take advantage of the opportunities presented by this sea of change?

Read Here – VisualCapitalist

The China Backlash

The fact is that China has grown strong and rich by flouting international trade rules. But now its chickens are coming home to roost, with a growing number of countries imposing antidumping or punitive duties on Chinese goods. And as countries worry about China bending them to its will by luring them into debt traps, it is no longer smooth sailing for the BRI.

Read Here – Project Syndicate

China Urges Pakistan To Help Maintain Trust After New Government Hints At Rethink Over CPEC

China has urged Pakistan to help maintain mutual trust and ensure the smooth development of the China-Pakistan Economic Corridor, a project that has been criticised in the South Asian nation for the levels of debt it has incurred as a result.

Read Here – South China Morning Post

Three Myths About China’s Investment In Africa And Why They Need To Be Dispelled

Three common misconceptions in Western media and policy circles about the nature of China’s involvement in Africa interferes with US policymakers’ ability to craft and implement an effective Africa strategy. Debunking these myths will foster a more constructive understanding of Beijing’s interactions with the continent and allow the United States to focus on areas of competitive advantage.

Read Here – World Economic Forum

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