looking beyond borders

foreign policy and global economy

Archive for the tag “economic diplomacy”

The Limits Of China’s Charm Offensive

Photo by chuttersnap on Unsplash

Facing escalating geopolitical competition with the US, China is scrambling to win friends in East Asia. But while China’s neighbours will undoubtedly welcome any respite from Chinese belligerence, they will not be fooled by sweet talk – or even sweet trade deals.

Read Here – Project Syndicate

Forget Yuan Devaluation, What If Donald Trump Weaponises The US Dollar?

Economic fundamentals have been kind to dollar bulls since early spring, but there is no guarantee of the rally’s life expectancy, especially if “crazy town” politics gain ground in Washington. Beijing had better be prepared to ride the coming storm as it might provide a valuable opportunity.

Read Here – South China Morning Post

BRICS New Development Bank Launched In Shanghai

The five BRICS countries are home to 42.6 percent of the global population, 21 percent of the world’s economy and nearly half of the world’s forex reserves, but have been marginalized in the global financial landscape. For example, in the World Bank, the five have a total of only 13 percent of voting rights, while the United States alone holds 15 percent. A similar picture can be seen at the International Monetary Fund (IMF).

Read Here – Global Times

Who Won the Iraq War? China

Put simply, then, China won the battle by choosing not to fight it. But this isn’t quite the whole story. In addition to avoiding the grave costs of the war, China capitalized by offering developing countries an attractive alternative to the United States: ideologically-blind economic engagement. And, as a result, Beijing was able to expand its “soft power” at the expense of an increasingly unpopular Washington.


Clash of the Balance Sheets

China and the United States are on a collision course — over accounting. Last week, the U.S. Securities and Exchange Commission (SEC) charged the Chinese affiliates of the world’s top five accounting firms with violating securities laws for refusing to hand over information on suspect Chinese companies to investigators. The move is the latest, most dramatic step in an escalating standoff that could easily lead to a financial version of Armageddon: the forcible (and unprecedented) delisting of all Chinese shares currently traded on U.S. exchanges, including big-name stocks like Baidu, Sinopec, and China Mobile — causing losses of billions of dollars and damaging the perception that the United States is friendly to Chinese businesses.


Read Here – Foreign Policy


A Chinese Lesson

When nations become strong and their companies begin to spread business to other countries, interests are bound to either collide or come together.

For decades, it was the turn of the Western multinationals to face political wrath in faraway countries. Remember India threw out Coca Cola and IBM? Now it is the turn of Chinese and Indian companies to battle complex politics in markets they either don’t know at all or don’t understand well.

Chinese telecom companies have been under tremendous pressure not only in the United States, but in other countries too. India woke to its own shock last week when the tiny, neighbouring Maldives decided to scrap a $500 million airport deal with an Indian firm. The degree of indignation over the development was surprising.

Read Here – Businessworld

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