China Business & Economy

Reflecting on Deng Xiaoping’s ‘Cat Theory’ of Economic Reform

Deng Xiaoping’s ‘cat theory,’ parodied by the political cartoonist Rebel Pepper. (Rebel Pepper)
Deng Xiaoping’s ‘cat theory,’ parodied by the political cartoonist Rebel Pepper. (Rebel Pepper)

Editor’s note: China’s rapid economic growth over the past three decades began with a privatization process pushed forward by former Chinese Communist Party leader Deng...

  • Customers and real estate agents look at several building models at a real estate exhibition in Jiashan, Zhejiang Province on Oct. 19, 2012. (AFP/AFP/Getty Images)

    China’s Ponzi Real Estate Market

    China’s real estate market is akin to a Ponzi scheme with the government acting as the dealer, referee, and big player. The market is entirely... Read more

  • A Bank of China branch in the City of London May 13, 2016. Bank of China is one of a number of Chinese banks looking to expand their presence abroad. (Dan Kitwood/Getty Images)

    Follow the Money: Chinese Banks on Course for Global Expansion

    In an effort to curb runaway real estate prices, major banks in Australia—a popular destination for Chinese real estate investors—have stopped lending to foreign property... Read more

  • A group of potential real estate buyers look at an estate plan by a local developer at a property exhibition in Shanghai on March 19, 2006. (Mark Ralston/AFP/Getty Images)

    Why China’s Real Estate Bubble Is Still Going Strong

    Editor’s note: For a number of years, both Chinese and Western economists have commented on China’s out-of-control real estate bubble. According to all indications, the... Read more

  • Customers and real estate agents look at several building models at a real estate exhibition in Jiashan, Zhejiang province, in a file photo. (AFP/AFP/Getty Images)

    Bubble Watch: Experts Sound Alarm on Chinese Real Estate

    When China’s richest man and its most successful real estate developer calls the country’s overheating property market “the biggest bubble in history,” it’s probably not... Read more

  • People work at an offshore oil engineering platform in Qingdao, China, July 1, 2016.  According to the independent China Beige Book survey, the economy has stabilized, but this improvement comes at a price.
(STR/AFP/Getty Images)

    China: Forget About Rebalancing

    Nobody believes the official Chinese economic data, but people still have to use it in their analysis because there aren’t many good alternatives.  The official data... Read more

  • Pedestrians walk past the People's Bank of China on July 8, 2015. The central bank on Sept. 23 approved interbank trading of credit default swaps. (Greg Baker/AFP/Getty Images)

    China Calls on Credit Default Swaps to Spread the Pain

    News Analysis China has a debt problem, and it’s desperate enough to employ drastic—and dangerous—means to counter it. Chinese regulators on Sept. 23 approved trading... Read more

  • People walk by a McDonald's restaurant  on July 28, 2014 in Shanghai. McDonald's is finalizing a sale of the rights to run its Chinese restaurants. (Johannes Eisele/AFP/Getty Images)

    McDonald’s Follows Yum Brands, Prepares China Exit

    McDonald’s is finalizing a sale of the right to operate its China and Hong Kong restaurants. Prompted by stagnating market share and an increasingly challenging... Read more

  • A street sign in front of an illuminated logo of German automaker Volkswagen in Hanover, Germany. (Julian Stratenschulte/AFP/Getty Images)

    VW Pivots to China as Emissions Scandal Cools Global Outlook

    Volkswagen AG formed a partnership with a Chinese state-run company to jointly develop electric cars. The embattled German automaker is making a decision to double... Read more

  • Baidu's booth is seen at the International Technology Fair in Shanghai on April 21.
(STR/AFP/Getty Images)

    Baidu Faces Headwinds as Regulatory, Competitor Pressures Mount

      Baidu Inc.’s standing amongst China’s elite internet triumvirate is on shaky ground as the company battles slowing sales growth, regulatory uncertainty, and an ongoing... Read more

  • World leaders have gathered in Brisbane, Australia, for the annual G20 Summit. (Andrew Taylor/G20 Australia via Getty Images)

    Why the G-20 Agenda Misses the Point

    News Analysis Inclusive growth, green energy, more trade, and a move away from financial crisis management to long-term planning—those are the official goals of the... Read more

  • In this file photo, COSCO freighter Zhen He is docked at Conley Terminal in South Boston, Mass. (Darren McCollester/Getty Images)

    China Cosco Suffers Record Loss Even as Dry Bulk Shipping Stabilizes

    Asia’s biggest shipping firm, China Cosco Holdings, suffered the biggest interim net loss of a mainland-listed company ever despite a stabilizing global shipping market. The... Read more

  • Chinese yuan notes at a branch of the Industrial and Commercial Bank of China (ICBC), on March 14, 2011 in Huaibei, China. The Chinese government is now spending up to 15 percent of GDP on fiscal stimulus. (ChinaFotoPress/Getty Images)

    How China Pulls Off Running Double-Digit Deficits

    For years the world has marveled at China’s foreign exchange reserves ($4 trillion at their peak in 2014) and low government debt, 21 percent of... Read more

  • Chinese worker assembles toy cars at a factory in Jinjiang, Fujian Province on July 1, 2016. (STR/AFP/Getty Images)

    China’s New Venture Capital Fund Unlikely to Change State-Owned ‘Zombie’ Enterprises

    Beijing announced formation of a new $30 billion venture capital fund to support ailing state-owned enterprises, but given the political realities that constrain policy and... Read more

  • Workers distribute packs at S.F. Express in Shenzhen, China, on Nov. 11, 2013. Private companies in China have stopped to invest in further expansion in 2016. (ChinaFotoPress/ChinaFotoPress via Getty Images)

    Why Have Private Chinese Companies Stopped Investing Altogether?

    Previously the engine of relatively efficient growth, it looks like the private sector has given up in China. Investment by private companies went negative in... Read more

  • Vice Premier Li Keqiang of China (R) meets International Monetary Fund (IMF), Managing Director Christine Lagarde (L) inside the Great Hall of the People in Beijing on March 23, 2015 in Beijing, China. (Lintao Zhang/Getty Images)

    What China’s SDR Bond Issue Really Means

    They promised, they delivered. The World Bank will issue a $2.8 billion SDR bond, or Special Drawing Rights bond, in China in August. Separately, the... Read more

  • A general view of buildings in the abandoned Qingquan Steel plant which closed in 2014 and became one of several so-called 'zombie factories' in Tangshan on Jan. 26, 2016. (Kevin Frayer/Getty Images)

    Capitalism With Chinese Characteristics: Why the Communist Party Has Abandoned Marxism in Deeds But Not In Words

    This is the final of a four part series. Parts one, two, and three were published previously. Since Marx created his communist theory, China’s has... Read more

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