There are compelling reasons to assume that the U.S. goals in the trade dispute with China go way beyond just trade. The real goal is likely to slow the economic and technological rise of its main economic rival. With this becoming clearer and with recent escalations, there is no easy way out and the Trump […]
Entries Tagged as 'China'
June 1st, 2019 · Comments Off on Tariff Man Strikes Again
January 2nd, 2019 · Comments Off on What Trade War Are We Having Will Determine What Happens To The Markets
Either President Trump wants to be able to announce a victory, or we are witnessing the first innings of a hegemonic clash between the existing and rising superpower. If the first scenario is correct, we could have a deal pretty soon, which might still arrive in time to revive the markets before the rot sets […]
September 25th, 2018 · Comments Off on The U.S. Is Ignoring The Progress China Has Made
China has a reputation for being a currency manipulator, having mercantilist trade practices, glaring disrespect for IP and depending on exports for growth. While these things were all true in the recent past, today much of this doesn’t hold much water anymore and in other fields there have been real improvements. Denying this progress and […]
September 14th, 2018 · Comments Off on What Does The U.S. Want From China?
The US government wants the Chinese to respect US intellectual property and a lower bilateral trade deficit. Unleashing a trade war isn’t likely to bring these goals closer, in fact it could very well result in the opposite. It risks doing great damage to the US and world economy and denies the considerable progress China […]
July 25th, 2018 · Comments Off on Crisis In China?
The Chinese economy is already slowing down, its stock market is crashing, its currency sinking and authorities are cracking down on leverage. And on top of that the US has imposed tariffs on some Chinese exports and is threatening to greatly escalate this program. Given the capital flight and the stock market crash, one is […]
December 25th, 2017 · Comments Off on A Chinese Lost Decade?
The Chinese economy is facing three secular headwinds that conspire to slow its economic growth considerably. Demographics are turning from a tailwind to a headwind and diminishing returns of the credit led boom have already set in. The necessary deleveraging process isn’t likely to produce a financial implosion, but it will slow growth significantly and […]
November 27th, 2017 · Comments Off on What China Can Teach Us About Economic Growth
After the enactment of US tax cuts supposedly comes infrastructure spending. As experiences go, the latter is likely to be a bigger booster for economic growth. While the US economy actually doesn’t need any kind of stimulus right now, it does need better infrastructure. These plans would have been much better half a decade ago […]
January 24th, 2016 · Comments Off on How To Navigate These Dangerous Markets | Seeking Alpha
The markets are extremely dangerous territory right now. It is all about China: The risks of a substantial yuan devaluation are considerable, but not necessarily imminent. This means that the risks are large, but medium-term. We provide some pointers regarding what to look out for as you navigate the markets. Source: How To Navigate These […]
June 17th, 2013 · Comments Off on Epic Chinese credit bubble
Overall credit has jumped from $9 trillion to $23 trillion since the Lehman crisis. “They have replicated the entire US commercial banking system in five years,” she said. Chinese credit bubble reaching dangerous levels
June 4th, 2013 · Comments Off on Chinese economy rebalancing
These challenges can be distilled into one statistic: household consumption accounts for only around 38 percent of China’s gross domestic product. via Chinese economy rebalancing.