What must happen for the world to stack RMB

Karthik Sankaran is a senior research fellow, geoeconomics in the Global South program at the Quincy Institute for Responsible Statecraft. China has precious little of the exorbitant privilege/ burden (delete according to your priors) conferred on reserve currency issuers. Despite China’s economy being the world’s second largest, the renminbi ranks a lowly seventh place in the IMF’s COFER league table of official foreign exchange reserves. But MainFT reported recently that Xi Jinping plans to change this. What even are the requisites for a currency to be truly international? And how…

Beijing warns carmakers: stop killing your profitability hopes by selling below cost

China has banned carmakers from selling new vehicles for less than it costs to make them, including through discounts and subsidies, as regulators continue trying to smother a persistent price war that has sent hopes of profitability up in smoke for most producers. In “pricing guidance” released on Thursday, the State Administration for Market Regulation (SAMR) listed a series of tactics that would result in below-cost pricing for new vehicles, warning that carmakers using any of them would face material legal risks. Under the new requirements, effective immediately, vehicle manufacturers…

Chinese scientists find path for long-distance quantum communications network

In a study published this week in Nature, a team from Peking University said it had developed a prototype networking capacity that could communicate over distances of more than 3,700km (2,300 miles). Quantum key distribution (QKD) is regarded as the gold standard for secure communication – any attempt at eavesdropping inevitably leaves detectable traces, regardless of distance or the number of intermediate devices involved. Advertisement But despite its theoretical promise, QKD has struggled to overcome barriers such as limited range, prohibitive equipment costs or the inability to serve multiple users…

How China is fighting ‘involution’, with Yanmei Xie

China’s export powerhouse is feeding global demand for cheaper electronics, cars, clothing, and plenty more besides. But the supercharged competition driving that trend is causing problems within China itself, including deflation and thin or negative profit margins. China’s government has recognised the problem, but what is it actually doing in response – and how should the country’s trading partners react? Soumaya speaks to Yanmei Xie, senior associate fellow at the Mercator Institute for China Studies, to discuss. Subscribe to Soumaya’s show on Apple, Spotify, Pocket Casts or wherever you listen.…