Tag: Economic Conditions and Trends

Did Germany Learn From Its Russia Trouble? The Test May Come in China.

Chin@Strategy

BERLIN — Germany understood the trap of strategic vulnerability that it had laid for itself in relying so heavily on Russian gas only after Moscow invaded Ukraine and turned off the spigot. But whether that lesson has been fully absorbed may be tested elsewhere: China. As Chancellor Olaf Scholz prepares for his first visit to Beijing on Thursday, a planeload of executives in tow, Germany’s intelligence chiefs and allies are warning him against pursuing business as usual with a China that is saber-rattling in the Taiwan Strait. Were tensions to…

China G.D.P. Data Is Unexpectedly Released After Delay

Chin@Strategy

China’s economy began to show faint signs of recovery in the last three months after stalling earlier this year, according to data released on Monday after a six-day delay during the Communist Party’s national congress. The country’s economic output was 3.9 percent higher from July through September than during the same months last year. The modest rebound in activity exceeded the expectations of Western economists, who had estimated growth of a little over 3 percent. The composition of the growth, however, was not entirely what China’s leaders have sought. While…

Xi Jinping Now Holds Near-Absolute Power in China, Creating Risks

Chin@Strategy

When China’s leader, Xi Jinping, led six dark-suited men onto a bright red stage on Sunday, the scale of his victory became clear as one by one he introduced the country’s new ruling inner circle. Each was an acolyte of Mr. Xi, making his grip over China’s future tighter than ever. Mr. Xi’s groundbreaking third term as leader, following a weeklong Communist Party congress, was entirely expected. But even seasoned observers who thought that they had taken the full measure of Mr. Xi have been astonished by how thoroughly he…

China Delays the Release of G.D.P. and Other Economic Data

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China, the world’s second-largest economy, announced without explanation on Monday that it was delaying indefinitely the release of economic data that had been scheduled for Tuesday morning, including closely watched numbers for economic growth from July through September, which had been expected to show continued lackluster performance. The delay by China’s National Bureau of Statistics, which analysts said was highly unusual, comes as the country’s ruling elite gather in Beijing for a weeklong, twice-a-decade national congress of the Communist Party. The authorities have taken elaborate measures to prevent any disruptions…

Three Things Americans Should Learn From Xi’s China

Chin@Strategy

About four decades ago, Chinese Communist Party officials scoured the world for best practices, which they cautiously piloted to create the economic miracle that their country showcases today. These days, though, the Communist Party champions Chinese solutions, and not just for China but also for the rest of the world. Xi Jinping, who just received an unusual third term at the helm of the world’s most populous country, embodies a far more confident China that has begun to portray itself as an alternative to the West. Creating a Chinese version…

In Global Slowdown, China Holds Sway Over Countries’ Fates

Chin@Strategy

BEIJING — When Suriname couldn’t make its debt payments, a Chinese state bank seized the money from one of the South American country’s accounts. As Pakistan has struggled to cope with a devastating flood that has inundated a third of the country, its loan repayments to China have been rising fast. When Kenyans and Angolans went to the polls in presidential elections in August, the countries’ Chinese loans, and how to repay them, were a hot-button political issue. Across much of the developing world, China finds itself in an uncomfortable…

Businesses Brace for Currency Chaos in Asia

Chin@Strategy

Tigun Wibisana and Sandra Kok, who own the SiTigun cafe on Penang Island in Malaysia, are facing an excruciating decision that could make or break their business of 14 years: Can they increase prices to cover rising expenses without driving customers into the arms of their bigger rivals? The cost of the coffee beans that the couple, who are married, buy is spiraling because they are traded globally in U.S. dollars, and the Malaysian ringgit has fallen to a 24-year low. Compound that with an inflationary spike in prices for…

Lockdowns in China, and North Korea, Deal Double Blow to Bridge City

Chin@Strategy

SHENYANG, China — There are plenty of reasons that business has been lousy recently at Steven Wen’s clothing store in Shenyang, the largest city in northeastern China. Local officials locked down the city for one month this spring after detecting just a few dozen coronavirus cases among its nine million people. Residents have guarded their spending closely since the lockdown was lifted. And in a region often referred to as China’s Rust Belt, the local economy had already been shaky for years. Possibly the main problem, though, is that Ms.…

Of Dictators and Trade Surpluses

Chin@Strategy

According to a new NBC News poll, U.S. voters now consider “threats to democracy” the most important issue facing the nation, which is both disturbing and a welcome sign that people are paying attention. It’s also worth noting that this isn’t just an American issue. Democracy is eroding worldwide; according to the latest survey from the Economist Intelligence Unit, there are now 59 fully authoritarian regimes out there, home to 37 percent of the world’s population. Of these 59 regimes, however, only two — China and Russia — are powerful…

Drought Hurts China’s Economy as Central Bank Cuts Rates

Chin@Strategy

HONG KONG — Record-high temperatures and a severe drought in west-central China have crippled hydropower generation and prompted the shutdown of many factories there, in the latest blow to a Chinese economy that already has stagnant consumer spending and a deeply troubled real estate market. Sichuan Province in west-central China, one of China’s most populous and a fast-growing industrial base in recent years, normally generates more than three-quarters of its electricity from huge dams. The summer rainy season usually brings so much water that Sichuan sends much of its hydropower…