China’s former model of growth is not sustainable and balanced. China has to shift its growth model to one that is quality-based, environment-friendly, and consumption-driven, writes He Weiwen.
Last year, trade between China and Africa hit a record high of $200 billion with a 44% increase in Chinese direct investment to the continent. While United States trade with the continent pales in comparison, amounting to less than $100 billion in trade annually, Sino-African trade is expected to increase as the Chinese economy and Africa’s development become further intertwined.
China’s long-standing advantage in cheap labor, land, resources and the environment cannot last, let alone lead to great achievements, writes Zhang Monan.
Asia Pacific economic cooperation is an essential part of today’s globalization process, however the process is at a crossroads with both TPP and RCEP under negotiation, write Tang Guoqiang and Wang Zhenyu.
Tom Watkins explores the incredible growth of China’s rail system and argues that America would be right to build reliable rail system of its own.
Recent fluctuations in the Chinese yuan have given way to far-flung fears that the Chinese economy is faltering. However, Michael Justin Lee explains that the yuan’s fall against the U.S. Dollar was engineered by the People’s Bank of China and was necessary to reduce hot money the Chinese economy slows.
Hugh Stephens discusses the rationale behind Canada’s recent decision to eliminate its immigrant investor and entrepreneur program, and the impact that it might have on similar US programs. The Canadian government review concluded that the investor immigrant program did not provide a good ROI for Canada. This decision, along with tighter citizenship qualification policies, will likely dampen enthusiasm for future Chinese investor immigration to Canada although other channels remain open. The termination of the Canadian program will cause increased interest in the US EB-5 visa program although absolute numbers of visas granted is unlikely to increase significantly.
Stephen Roach states that China’s slowing GDP growth is a natural result of a rebalancing of the Chinese economy. However, China’s recent economic growth has lead to an unbalanced codependency of China and the US. Thus, Roach believes that the US should adopt a new growth strategy, based on saving and investing in people, infrastructure, and capacity.
In Beijing, many observers regard the TPP as the economic counterpart of U.S. rebalancing in Asia to contain China’s rise. On the other hand, if Beijing would participate in the talks, it could conceivable influence both the process and the future shape of the proposed trade pact.
Shao analyzes the US’ “New Silk Road Initiative” and China’s “Silk Road Economic Belt,”and concludes that though having differences, they go in the same direction: acceleration of regional economic cooperation.