President Xi Jinping’s recent trip to Latin America underscored four aspects of China’s outreach efforts to Latin America. To expand South-South cooperation, to promote multi-polarity, to hedge against risks and challenges to future development by enhancing BRICS and Latin American cooperation, and to improve the provision of international public goods.
No sooner had the dust settled from the World Cup than Brazil played host to the five leaders of the BRICS countries—Brazil, Russia, India, China, and South Africa. An immediate outcome of the Fortaleza summit was the formation of the New Development Bank, a development finance institution to rival the World Bank. The group also announced a currency reserve pool as an alternative to the IMF. Done right, both initiatives could change the institutional landscape for multilateral development financing.
As China seeks to deepen ties with Israel it also needs to balance inherent contradictions of the relationship. While the defence industry was once the cornerstone of Sino-Israeli relations, Washington’s objections have limited relations. Still, commercial and trade links are set to expand between Israel and China, raising interesting policy implications for China, Israel, and the US.
By initiating the AIIB, China demonstrates its willingness and capability to provide more public goods to the international community, writes Wu Zhenglong.
Qi Jingmei reports that China’s economy is expected to continue grow in the second half of the year, possibility reaching the full year GDP target of 7.5%. Jingmei remarks on the “favorable factors” of economic growth- citing global economic recovery and central government policies, as two ways to stabilize and promote Chinese economy.
In the wake of the news that China’s economy grew 7.5% in Q2, Gordon Chang throws up the warning flags and argues that there exists a very real threat of a “Minsky moment” for China. Additionally, Chang states that the Chinese economy will more than likely continue to expand in the future, but this is not a positive sign.
After the 6th S&ED, both China and the Unites States are striving to intensify the Bilateral Investment Treaty negotiations. He Weiwen discusses the urgency for both sides to agree on the core issues and articles by the end of 2014 in order to promote consumer welfare and economic efficiency.
Since the start of the global financial crisis and the emergence of regional trade alliances in the global economy, “a currency swap network” has emerged in financial and monetary fields.
After the Renminbi depreciated for five consecutive months, the market has again seen signs of a pick-up. Some analysts believe the unusual change in RMB exchange rate means the RMB has stopped depreciating and begun returning onto the track of appreciation.
As the Chinese government has given up its large-scale economic stimulus, China’s economy and demand will not grow rapidly, writes Ding Yifan.
It is extraordinarily important, according to Dan Redford, to permanently extend the EB-5 visa program. Redford argues that this program helps build a healthier U.S. economy, as well as strengthens the United States’ role as the world’s leading economic innovator.
While recent investments by Chinese firms looking to make inroads in the American automobile market, and particularly Detroit, could appear as an indication of China reaping the benefits of an economically depressed U.S. auto industry, there is also evidence that these developments are of mutual benefit to everyone involved.
The decision of China’s central bank to pursue “directional drop quasi” means a reduction of the reserve requirement ratio, support will be given to the development of agriculture and small businesses, and there will be more regulation of China’s financial market. However, this quantitative policy instrument will be limited in its ability to enhance services for the real economy.
Mexico has enormous economic potential and could play a significant role in labor-intensive production, but the cost of doing business there remains high. In breaking with the past, Mexico has opened up its economy. However, a large informal sector, low levels of commercial lending, and a lack of competition offset the benefits of Mexico’s low-cost labor.
Is the U.S. turning the World Trade Organization into an “empty house”? Zhou Shijian answers this question as he analyzes the current progress of the Trans-Pacific Partnership Agreement and U.S. trade with the Asia-Pacific.