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looking beyond borders

foreign policy and global economy

Archive for the tag “debt”

A Chinese Colony Takes Shape In Cambodia

While Prime Minister Hun Sen often portrays himself as sole protector of Cambodia’s sovereignty, China is at work building a port, airport and virtual city on 45,000 hectares of Cambodian land with the premier’s express permission.

Read Here – Asia Times

Also Read: Myanmar Risks Falling Into China’s Debt Trap

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China’s Looming Financial Crisis

Governor of the Reserve Bank of Australia Philip Lowe’s speech last week highlighting the risks to the Chinese financial system from shadow banks – non-bank financial institutions often operating in more lightly regulated wholesale markets – has once again drawn attention to the major economic risk in China.

Read Here – Lowy Institute

China Tiptoes Toward Massive Retaliation In Trade War

As Cui, China’s man in Washington, suggests, Xi’s team is now “looking at all options.” While Trump doing his worst with tariffs is worrying, the idea of Xi pulling the plug on the dollar is positively terrifying. Trump must remember that even though he runs the biggest economy, Xi holds the deed.

Read Here – Asia Times

The Real China Challenge: Imperial Overstretch

Fortunately for America and contrary to Washington conventional wisdom, the mighty-looking Chinese state is, in reality, particularly vulnerable at this moment. For one thing, its slowing economy is on the verge of a debt crisis. At the same time, Beijing, largely because of the expansive vision of its ruler, Xi Jinping, is overstretched.

Read Here – The National Interest

Will Xi Jinping’s Second Term Bring ‘New Cycle’ For The Economy?

A growing number of economists are joining the chorus forecasting the arrival of a stronger Chinese economy under President Xi Jinping – a stark contrast from a year ago, when China was seen as a source of instability for the world. Although Beijing has delivered scant evidence that it is taming its debt mountain, the optimists are starting to make their voices heard over talk of a hard landing or crisis in China’s growth narrative.

Read Here – South China Morning Post

Trump Must Tread Carefully With His Asian Bankers

As Donald Trump angles to make America’s debt burden great again, he has some finessing to do with his bankers. No, not Russia in this case, but China and Japan, both by far the biggest holders of U.S. Treasuries with a combined $2.3 trillion. South Korea’s $95 billion stockpile also has folks in Seoul curious about President Trump adding at least $1.5 trillion of debt for giant tax cuts America doesn’t need.

Read Here – Asia Times

The Demise Of Dollar Diplomacy?

Pundits have been saying last rites for the dollar’s global dominance since the 1960s – that is, for more than half a century now. But the pundits may finally be right, because the greenback’s dominance has been sustained by geopolitical alliances that are now fraying badly.

Read Here – Project Syndicate

Yes, Nations Can Spend Their Way Out of Recessions. Sometimes.

The case for government spending during economic slowdowns has been hotly debated for decades. John Maynard Keynes went as far as to suggest that during a recession governments should pay people to do meaningless tasks — such as digging holes in the ground and then filling them up.

Read Here – BloombergView

An Economic Fallout Is Coming From All The Asian Military Standoffs

The stakes are high for the U.S. as tensions in Asia ramp up. The country has $1.3 trillion of two-way trade with the region, based on annualised data in the first six months of this year. That’s 52.5 percent of America’s total foreign trade. But that is only part of U.S. linkage with Asian economies. Fixed-asset investments generating those trade flows have also to be taken into account as they directly affect employment and income levels in about one-third of American aggregate demand.

Read Here – CNBC

How One City’s Borrowing Practice Highlights China’s Daunting Financial Risks

China’s finance ministry was technically correct when it reacted to a sovereign debt rating downgrade in May by saying the debts of local government financing vehicles (LGFVs) and state-owned enterprises would not swell the government’s contingent liabilities.

Read Here – South China Morning Post

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