Happening in China - May 2016

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The Economy

  • China province falls into negative growth — FT.com: "Regional discrepancies were “very extreme” last year as service sectors performed well while heavy industry-dependent regions were “effectively in recession”, said Andrew Batson, economist at Gavekal Dragonomics in Beijing."
  • China vows to boost private investment, house leasing | South China Morning Post
  • The 15-year hitch | The Economist: "When China joined the WTO all those years ago, it appeared bound on a course of market-oriented reform. So the present debate was not foreseen. Yet later, in 2008, a European Commission assessment deemed China to have failed to meet four out of five criteria that the EU sets for winning market status. Since then, despite the Communist Party’s decision in 2013 to let market forces play a “decisive” role, and despite the continued growth of the private sector in China, there has been no fundamental transformation of its economic structure. In 2014 a body set up by America’s Congress to monitor the security implications of economic relations with China noted that many witnesses had told it that “China is not currently a market economy and is not on the path to become one in the near future.”"

China and the rest of the world

Society & Public Health

Opinions

Yu Yongding: China’s Incomplete Growth Strategy: "In the short term, when overcapacity and deflation are the main obstacles, infrastructure investment boosts growth through the economy’s demand side. In the long run, it operates through the supply side to boost productivity and thus raise growth potential. China can fund such investment with fiscal deficits, given strong demand for government bonds. And, with China’s major banks still state-owned, and capital controls still in place, the risk of an imminent financial crisis is very low."

Cultural Revolution ‘won’t’ recur - Global Times


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