Tag: Economic Conditions and Trends

In Hungary, Voters Exposed the Limits of China’s Ties to Orban

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The gigantic Chinese lithium battery factory under construction for three years on the edge of Hungary’s second biggest city hasn’t started production yet. But it has already contributed to a political earthquake. As the biggest Chinese investment in Europe, the $8.5 billion project in the eastern city of Debrecen had been hailed by Hungary’s outgoing prime minister, Viktor Orban, as proof of the economic benefits of his close relations with China. Instead, the factory helped bring about his downfall. In the April 12 election, Mr. Orban’s Fidesz party lost all…

Why Countries Are Stocking Up on Gold

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Central banks around the world have bulked up their reserves of gold, a safe but cumbersome investment that has been revived in popularity by intensifying geopolitical tensions and concerns over inflation. This year, the price of gold exceeded $5,000 per troy ounce for the first time in history. One major reason prices have soared — doubling in a year and a half — is the demand from emerging economies: The central banks of Poland, Turkey, India and China have been some of the biggest buyers of gold in the past…

China’s Economy Starts to Show Cracks From Iran War

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Rising oil and natural gas prices from the war in Iran are beginning to weigh on the Chinese economy, further slowing already anemic consumer spending and hurting critical export sectors. Car sales fell in March and plunged further in April. Restaurants and hotels are seeing fewer customers as households turn cautious. In southern China, thousands of toy factory workers protested last week after their employer collapsed under rising plastic costs and ongoing tariffs in the United States. The emerging signs of strain underscore how even China, with vast strategic oil…

War and Sanctions Accelerate China’s Currency Push

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Neat rows of Chinese currency bills sit behind glass at the center of the national security gallery inside Hong Kong’s Museum of History, along with model fighter jets, attack helicopters and vials of rare-earth metals. Set with instruments of war and trade, the display underscores a central idea: The internationalization of its currency, the renminbi, is considered a pillar of China’s national security. Despite its rise as an economic superpower, China remains reliant on a global financial system anchored by the dollar. Turning the renminbi into a globally accepted currency…

Yellen Sees ‘More Work to Do’ as China Talks End With No Breakthrough

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Four days of top-level economic meetings between the United States and China concluded in Beijing on Monday with no major breakthrough, but the world’s two largest economies agreed to hold more discussions to address rising friction over trade, investment and national security. The conversation is poised to become even more difficult, however, as hopes of greater economic cooperation collide with a harsh political reality: It is an election year in the United States, and antipathy toward China is running high. At the same time, Chinese officials appeared unmoved by Treasury…

‘Reglobalization’ to the Rescue?

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Russia, China, Iran and their allies, by contrast, tend to use the term to describe a new world order in which they play a greater role, said Benedikter, who first heard “reglobalization” at a 2017 conference in Russia. Since then, he said, the term has gained traction as the global supply chain has experienced shocks from the pandemic, Russia’s war on Ukraine and attacks by Houthi rebels on commercial ships in the Red Sea. To Harold James, a Princeton economic historian, the term describes the constantly shifting relations in global…

China’s Exports Surge Are Drawing a Global Backlash

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China’s factory exports are powering ahead faster than almost anyone expected, putting jobs around the world in jeopardy and setting off a backlash that is gaining momentum. From steel and cars to consumer electronics and solar panels, Chinese factories are finding more overseas buyers for goods. The world’s appetite for its goods is welcomed by China, which is enduring a severe downturn in what had been the economy’s biggest driver of growth: building and outfitting apartments. But other countries are increasingly concerned that China’s rise is coming partly at their…

China’s Growth Slows but Xi Jinping Keeps to His Vision

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Even with growth faltering in China, Xi Jinping appears imperiously assured that he possesses the right road map to surpass Western rivals. China’s economy has lurched into a slower gear. Its population is shrinking and aging. Its rival, the United States, has built up a lead in artificial intelligence. Mr. Xi’s pronouncement several years ago that the “East is rising and West is declining” — that his country was on the way up while American power shrank — now seems premature, if not outright hubristic. The problems have brought growing…

How China Came to Dominate the World in Solar Energy

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China unleashed the full might of its solar energy industry last year. It installed more solar panels than the United States has in its history. It cut the wholesale price of panels it sells by nearly half. And its exports of fully assembled solar panels climbed 38 percent while its exports of key components almost doubled. Get ready for an even bigger display of China’s solar energy dominance. While the United States and Europe are trying to revive renewable energy production and help companies fend off bankruptcy, China is racing…