The US and others seem to believe that China’s currency is the biggest obstacle to the global recovery. That is highly debatable, as I argued on VoxEU. In any case, the Chinese renminbi is up 3.1% against the dollar over the past 12 months. And since inflation is 4.4% in China and only 1.1% in [...]
VoxEU, 2 November 2010. While the debate over global imbalances often focuses on China, this column argues that the biggest threat to the world economy comes from the other side of the seesaw – the US.
Check out my new article on VoxEU.org.
Twenty years ago, the main goal of many migrant workers in city factories was to send money home to struggling village families. Now they see the factory as part of a personal project, a first step towards an urban life. Internet access has made them more worldly and since a labour law passed in 2008 [...]
Interesting piece by Nayan Chanda
Amid all the worries about cheap Chinese exports undercutting Western products and costing Americans and Europeans their jobs, people often forget that China’s explosive growth also creates huge new opportunities for Westerners. A decade ago, Chinese tourists were rare birds. Now, they are the world’s fourth-biggest spenders. They spent $43.7 billion last year, 21% more [...]
China’s latest trade figures show that its imports soared by 66% over the past 12 months, while exports grew by 24%. As a result, China recorded its first monthly trade deficit in 6 years. Contrary to those who accuse China of being a drag on the global economy, it is a leading engine of growth.
The United States imported $2.7bn worth of the steel pipe used in oil and natural gas production in 2008, making it the highest-value US trade injury case on record. But because of slumping demand and US duties already imposed in the case, imports of the product from China fell last year to about $1.1bn. Now [...]
Excellent article by Avinash Persaud on Vox Highlights: The notion that the world was suffering from a savings glut, that would have pulled us all into recession were it not for America’s selfless consumption, is also as deficient in arithmetic as it is self-serving. You cannot save yourself into boom… But all it would take [...]
A truly excellent article. Excerpts On currency manipulation: The US treasury has been charged by Congress to assess whether China is a “currency manipulator”. Although President Barack Obama has now delayed for some months when the treasury secretary, Timothy Geithner, must issue his report, the very concept of “currency manipulation” itself is flawed: all governments [...]
Eight years after China’s WTO accession, many US industries complain that they face significant non-tariff barriers to trade… These barriers include, for example, regulations that set high thresholds for entry into service sectors such as banking, insurance and telecommunications . . . and the use of questionable sanitary and phytosanitary measures to control import volumes. Sounds a lot like [...]
China’s biggest private car maker, Geely, is not only taking Sweden’s Volvo off Ford’s hands. It is also buying Manganese Bronze, the company that makes London’s famous black cabs. Bad news? Hardly. With Geely’s help, Manganese Bronze is more likely to crack the huge Chinese market, now the world’s biggest.
Private consumption is 7% up on pre-crisis levels in the 10 largest Asian economies (excluding stagnant Japan) http://bit.ly/9hxgPW
In recent years, Western governments have voiced concerns about Asian governments’ vast sovereign wealth funds (SWFs) investing in Western companies. Some called this "investment protectionism" But as Western banks faced collapse, they were delighted to receive capital injections from Asian SWFs – and Western governments didn’t object. In a crisis, needs must. Now, though, Asia’s [...]
For years, the US has lectured China on how it should run its economy. Now, the tables are turned. US Treasury Secretary Hank Paulson went to Beijing to urge the Chinese government not to let its currency weaken. The Chinese hit back in style. Zhou Xiaochuan, governor of the Chinese central bank, urged the US [...]
I’m just back from the Adelaide Festival of Ideas, which was great. The 24-hour flight and 8 1/2-hour time difference are still killers though. I participated in a discussion about the future of India and China on my first evening at the festival, which was rebroadcast on ABC’s programme The National Interest. I also gave [...]
In a comment on my recent post on the contribution of trade liberalisation to Asia’s success, Jim takes issue with my contention that China and India are very powerful examples of the benefits of liberalisation: before they started their reforms, growth was slow, but as they have opened up their economies, growth has accelerated. He [...]
The AFL-CIO, America’s biggest trade-union federation, is petitioning the Bush administration to impose economic sanctions against China for violations of workers’ rights. The unions claim that the exploitation of Chinese workers is not only morally repugnant, but also economically damaging, alleging that it has cost 1.2 million US workers their jobs. They say this amounts [...]