Credit in China is growing at a breakneck pace, raising serious concerns about the level of risk in the financial system. The government now must determine how to balance the economy’s liquidity needs with protecting the system’s solvency.
While China is virtually certain to be the world’s biggest trade nation, Yu Xiang points out four key reasons why the country is yet to be the strongest trade nation and urges for the expansion of the US-China trade relationship.
As news that the United States has become the largest recipient of Chinese investment spreads, many Americans are nervous and wonder where that money is going. Interestingly, the U.S. draws a significant amount of private investment from China, which is distinctly different from the country’s investment patterns in the rest of the world.
Although in 2014, it appears China will be adhering to a “prudent” monetary policy and working to balance its finances, the world’s number two economy will still face considerable challenges, such as rising credit and an appreciating currency.
2013 was an important year for Sino-U.S. relations including many high-level visits and summits. However, in 2014, four ‘events’ may determine future relations. Qian Liwei explains the importance of the APEC Summit, Ambassador Baucus, BIT agreements and territorial disputes.
While China’s refusal of genetically modified corn crops from the United States has gained attention in recent months, Colin A. Carter explains that as China moves from a major corn exporter to importer, it will require more sources of the crop and ultimately approve more biotech corn products.
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