China Business & Economy

How China Pulls Off Running Double Digit Deficits

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)
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)

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...

  • 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

  • Buick cars are assembled at GM's Wuhan auto plant in Wuhan, Hubei province, in China in January 2015.(STR/AFP/Getty Images)

    China Auto Sales Jump on Tax Incentives, Prior Year Comp

    Chinese passenger car sales increased significantly in July compared to last year—the fastest growth rate in more than three years. The impressive acceleration temporarily heads... Read more

  • A teller counts yuan banknotes in a bank in Lianyungang, east China's Jiangsu province on August 11, 2015. (STR/AFP/Getty Image)

    China Capital Outflows Were as High as $39B in July

    Everything seems to be well in China, maybe except for the rising defaults. The currency is up almost a percent against the dollar for the last... Read more

  • A Chinese steel worker walks past steel rods at a plant on April 6, 2016 in Tangshan, Hebei province, China. (Kevin Frayer/Getty Images)

    Is China’s Corporate Debt Bubble Finally Popping?

    One year after the mini-devaluation of the Chinese currency, China is getting desperate about its corporate debt situation and has given directions to make loans... Read more

  • In a file photo, employees work on a drill well at a Sinopec exploration site in the Longgang gas field in Lishan, Sichuan Province. (Liu Jin/AFP/Getty Images)

    China’s Natural Gas Gamble Won’t Replicate US Shale Success

    News Analysis As part of China’s ambitious goal to wean itself off coal, China Petroleum & Chemical Corp. has announced plans to sell half its... Read more

  • A couple walks on a street at an abandoned industrial area of Houjie town in Donggyuan on Jan. 27, 2016. (Lam Yik Fei/Getty Images)

    Capitalism With Chinese Characteristics: State Enterprise Reform Through Massive Theft

    Parts one and two of this series were published previously. The privatization process of China’s state-owned enterprises (SOEs) has been a process of building a... Read more

  • A worker of an Industrial and Commercial Bank of China Ltd (ICBC) branch counts money as she serves a customer on  September 24, 2014. (JOHANNES EISELE/AFP/Getty Images)

    China Banking Regulator Tells Banks to Evergreen Loans of Troubled Companies

    On the surface, China is talking the reform talk. But is it also walking the walk? There are many examples to demonstrate it isn’t. The most recent... Read more

  • People work at an offshore oil engineering platform in Qingdao, Shandong province, July 1, 2016. Because of too much debt, a Chinese engineering company has recently transformed itself into a bank.  
(STR/AFP/Getty Images)

    Only in China: Companies Become Banks to Solve Financial Difficulties

    China is desperate to solve several problems it has due to its debt to GDP ratio being north of 300 percent. It may have found a... Read more

  • Smartphones show the ride-hailing apps Uber Technology Ltd., left, and Didi Chuxing at a residential compound in Beijing, on  Aug. 1, 2016. (AP Photo/Andy Wong)

    Uber Loses China Battle, Sells Chinese Subsidiary

    San Francisco-based ride-hailing giant Uber Technologies Inc. gave up on competing in China after suffering heavy losses in its attempts to acquire market share in... Read more

  • International Monetary Fund Managing Director Christine Lagarde speaks at the 40th anniversary of the IMFC meeting at the IMF Headquarters in Washington, April 20, 2013. (Stephen Jaffe/IMF via Getty Images)

    China Moves Forward With SDR Issuance in August

    When Bloomberg reported late last year that China founded a working group to explore the use of the supranational Special Drawing Rights (SDR) currency, nobody took... Read more

  • A general view of Qian'an steelworks of Shougang Corporation in Tangshan on Jan. 20, 2016. (Xiaolu Chu/Getty Images)

    How the Fortune 500 List Perfectly Mirrors China’s Distorted Economy

    The annual Fortune 500 list was published on July 20. The number of Chinese companies has increased from 106 in 2015 to 110 this year,... Read more

  • A Vietnamese coast guard ship moves toward a Chinese coast guard vessel near China's oil drilling rig in disputed waters in the South China Sea on May 14, 2014. (Hoang Dinh Nam/AFP/Getty Images)

    China’s Nuclear Power Ambitions Sailing Into Troubled Waters

    BEIJING—China’s ambitions to become a pioneer in nuclear energy are sailing into troubled waters. Two state-owned companies plan to develop floating nuclear reactors, a technology... Read more

  • Travis Kalanick, CEO of the ridesharing service Uber, speaks during a press conference in Beijing Jan. 11. (Wang Zhao/AFP/Getty Images)

    How China’s New Ridesharing Rules Choke Uber and Didi

    Beijing legalized online car hailing apps such as Uber China and its homegrown rival Didi Chuxing nationwide. The move prompted Uber to praise China as... Read more

  • Hulk of Brazil controls the ball during the 2014 FIFA World Cup Brazil Group A match between Cameroon and Brazil at Estadio Nacional on June 23, 2014 in Brasilia, Brazil. (Photo by Stu Forster/Getty Images)

    Just Another Foreign Asset: Why Chinese Buy Up European Soccer Clubs

    News Analysis Yes, China has the official goal of becoming a leading power in world soccer by 2050, according to a policy document issued in March... Read more

  • A man rides a bicycle at an abandoned industrial area of Houjie town in Dongguan on Jan. 27, 2016. (Lam Yik Fei/Getty Images)

    Fan Di: The Chinese People Really Aren’t as Wealthy as they Seem

    After 35 years of rapid economic growth, China’s economy has significantly decelerated in the past couple of years. What used to be double-digit growth has... Read more

  • A man reads a newspaper report that China's central bank announced it will devalue China's tightly controlled currency on Aug. 11, 2015 following a slump in trade, triggering the yuan's biggest one-day decline in a decade. (AP Photo/Andy Wong)

    Global Banks Are Staging a Bank Run in China

    The more debt the merrier, the saying goes, at least until the party stops and the hangover starts. This is true for the debt situation... Read more

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