The new AIIB reflects China’s opportunity to assist the developing world, but how China cooperates with India, and U.S. interests in the Asia Pacific, will determine the effectiveness of the new Bank.
The key legal framework for the China-initiated regional multilateral institution – the Asian Infrastructure Investment Bank (AIIB) – was inked by representatives of the bank’s 57 founding members in Beijing last Monday. For China and the U.S., the AIIB is not about win-lose. A win-win result can be achieved if both sides are more open-minded.
As the focus of the West was fixed in Greece and Iran, the 7th BRICS Summit began a massive shift from a dialogue to an economic partnership – one whose full impact will be witnessed in the coming years.
The government’s aggressive response in stabilizing “Uncle Xi’s bull market,” has highlighted the political nature and disconnect between the stock market and overall economic health. The government must decide whether to continue its efforts to open the capital account and liberalize the exchange rate.
The A-share market has been undergoing an unprecedented plunge since mid-June, with the benchmark Shanghai Composite Index having declined about 30% and the capitalization of listed companies having shrunk by about 20 trillion yuan (about $3.23 trillion).
The rapid development of China-U.S. e-commerce is challenging traditional assumptions about how international business is conducted, but there still is a lack of understanding among foreign brands and retailers about what cross-border e-commerce is and how they can leverage it to sell their products to Chinese consumers.
“China-bashing” rhetoric has for years dominated U.S. national elections cycles, however, can a rapidly increasing and geographically diverse Chinese foreign direct investment in the United States temper this typical national anti-China dialogue?
The Asian Infrastructure Investment Bank (AIIB) will help finance billions in infrastructure projects around Asia, and also challenge the existing financial institutions. Curtis S. Chin suggests ways how the new institution could be efficient, environmentally stringent, and respectful of local rights.
The past two years witnessed the Chinese leadership enunciating a “Chinese Dream” visions for the nation and offering to share the prospects of prosperity and stability with the entire Asia Pacific region and beyond.
China has become one of the world’s most important investors and capital exporters, stepping into a new phrase of “GNP” from “GDP” and reversing the mechanism of capital-free flow. So it is imperative to speed up the opening of its capital account.
There is no denying that elements of competition exist in China-U.S. relations, but strengthening bilateral cooperation still forms the heart of the two countries’ policies towards each other.
After heated discussions, even confronting debates, the 7th S&ED has still achieved more than 190 results, which clearly illustrates the solid base for bilateral relations.
The China-Pakistan Economic Corridor plans connect China to the Persian Gulf through the quickest route. This huge investment can be transformational for South and Central Asia if Pakistan can improve upon its lackluster performance in FDI absorption and transparent governance.
SDR inclusion will mean an endorsement of the renminbi as an international reserve currency, and at the same time, the Chinese government will have the power and capacity to steer and manage the renminbi exchange rate.
Not so long ago, China’s A-share index lingered around 2,000. Before last week’s plunge, it closed at 5,200. In the short-term, the market will remain volatile, but just as China’s economy hasn’t emulated typical market fluctuations, its potential should prevail in the long term.