More than 75 nations participate in China’s Belt and Road Initiative, launched in 2013 to develop trade and connect Asia, Africa, the Middle East and Europe with ports, roads and railways. But some countries worry about adding to already heavy debt burdens, and some projects have become an issue in local politics. Among the most […]
The continent is an important part of Xi’s Belt and Road initiative – a plan to bolster a network of infrastructure connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe, and Africa. China has pledged $126bn for the plan, which has been praised by its supporters as a source of vital […]
Pakistan’s freshly minted Prime Minister Imran Khan has an unusual opportunity. If he plays his cards right, he can keep his rivals, including his controversial predecessor Nawaz Sharif, tied in knots for a long time. Or he can duck the bouncer, and play the game as it has been played, ensuring that Pakistan remains a […]
In what has become somewhat of a ritual, Pakistan is back at the doorsteps of international creditors. The PML-N government has left national coffers empty, just like the PPP and the Musharraf-led PML-Q governments before it. Like clockwork, Pakistan goes to the IMF after every election: 2008, 2013 and now 2018. This time the request […]
Some in Pakistan have speculated that China may oppose an IMF program out of concerns that it would compel China to release the financing terms of many CPEC projects. But outside of situations where external debt restructuring is required, it would be exceedingly unusual for the IMF to make such a demand. Instead, the IMF […]
Thanks to US President Donald Trump and his “America first” policy, the global economic and trade outlook perhaps has never been so uncertain. Nowhere are these economic and policy shock waves being felt more than in China. And, Beijing is responding the same way it does every time it anticipates trouble – by pumping cash into its […]
Thanks to the dollar’s outsize global role, the first casualties of a somewhat irresponsible U.S. fiscal policy are likely to be emerging economies that have used the dollar to denominate their debts, not the United States itself. A stronger dollar and rising U.S. interest rates are increasing the burden of paying all dollar-denominated debts around the world. […]
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
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
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 – […]
looking beyond borders 