Four China items: April 15, 2015
1: Li Keqiang praises the institutions that many others increasingly descrive as "losing relevance". From the FT interview:
“We gained advanced experience from working with the World Bank and other institutions and our [World Trade Organisation] membership has also helped Chinese companies gain deeper knowledge about how they can compete with others under international rules. So China has been a beneficiary of the current international system in terms of both peace and development.”
2: A corrollary?
Perhaps the biggest losers in this new era of State Capitalism might be international institutions whose mandates were crafted with the objective of seeking to promote the so called “Washington Consensus”. These institutions are now at risk of being sidelined by this new model where countries support their own national interests by putting government favored business and strategic interests ahead of long held, though perhaps outdated, principles. (Douglas A. Rediker)
3: Keqiang offers a colorful comment on QE:
“When QE is in place, there may be all sorts of players managing to stay afloat in this big ocean. Yet it is difficult to predict now what may come out of it when QE is withdrawn.”
A rising number of Chinese are applying for EB-5 visas, where non-citizens put at least $500,000 into a business in the United States, as they seek to park their wealth offshore - in part to escape the impact of an anti-corruption drive at home.
Australia has a similar scheme for those investing over $4 million, with 90 percent of applicants from China. Australian property has long been popular among Chinese but investment has accelerated since the start of the anti-graft campaign last year.
Related: Chinese students vote with their feet and enroll in American universities in record numbers.