Four China items of the day

Reading Time:

1: Chun Chang, Kaiji Chen, Daniel F. Waggoner, Tao Zha: Trends and cycles in China's macroeconomy:

  • The labor share declined from 53% in 1997 to 47% in 2010.
  • The ratio of capital in heavy (capital-intensive) industries to light (labor-intensive) industries rose from 2.4 in 1997 to 4.0.
  • Many more.

2: Final list of 57 founding members of the AIIB

The list includes

  • Australia
  • Austria
  • Brazil
  • Germany
  • France
  • India
  • Indonesia
  • Iran
  • Israel
  • United Kingdom

and 47 other countries.

2b: Benn Steil and Dinah Walker: Should the United States Encourage Japan to Join the AIIB?

U.S. ally countries – the UK, Germany, France, and other European nations, and Australia and South Korea in the Asia-Pacific – would have only 28% of the vote. With Japan as a member, however, close U.S. allies would have 41% of the vote – more than China’s 35% ... Therefore, even if the United States chooses to remain outside the AIIB, it should, at this point – assuming that it wishes to temper China’s dominance – be encouraging Japan to join.

3: How Do You Keep Your Kids Healthy in Smog-Choked China?

When the oppression lifts — usually when a north wind blasts away the smog — the city sparkles in surreal high-definition. People rush outdoors to gulp in the air, to soak in the sun, to enjoy a freedom so long withheld. On those miraculous days, it’s easy to forgive the city for all the suffering it has inflicted, to half-believe that the worst is over. Then, inevitably, the heavy smog descends again, along with our spirits.

4: China considers ban on infant formula ads

China is considering a ban on advertisements for infant milk formula in a bid to tackle low levels of breast feeding ... The draft would ban adverts in mass media or public places for dairy products, drinks and other foods that "claim to partly or completely substitute mother's milk", Xinhua said.

Less than a third of babies are exclusively breastfed in China and the number is falling despite global health bodies recommending the practice for babies under six months. At the same time, China's infant formula market is set to grow to more than $30 billion by 2017.

Three conversations on the future of Europe

Conversation 1: Jeroen Dijsselbloem, President of the Eurogroup In response to a question from Fred Bergsten about German surpluses, Dijsselbloem said that Northern European countries do...

Nine perspectives on quantitative easing

Global Impact and Challenges of Unconventional Monetary Policies; IMF Policy Paper The paper definies unconventional monetary policies (UMP) of two types: policies to restore market functioning...