What China’s Online Shopping Craze Says About Its Bubble Economy

On November 11, China celebrated Singles’ Day, a holiday that in the span of a few short years has become the most important day of the year for Chinese e-commerce. Sales on Alibaba, the leading retailer website at the center of the holiday, are the bellwether for its success. Alibaba first adopted the Singles’ Day name for a sales promotion in 2009 to sell winter coats, … http://bit.ly/2DFHV6Q

Is Europe Finally Pushing Back On Chinese Investments?

The first half of 2018 saw a mixed picture for foreign direct investments in Europe from China. While overall figures for Chinese FDI in Europe were down by almost a third compared to 2017, the value of Europe-bound Chinese investment now dwarfs comparable figures in the United States. Chinese FDI in Europe is now nine times greater than in the United States. The two main … http://bit.ly/2O74xTe

Beijing’s Three Options: Unemployment, Debt, or Wealth Transfers

China’s debt problems have emerged so much more rapidly and severely this year than in the past that, combined with swirling rumors about the country’s leadership, a growing number of analysts believe that this may be the year that China’s economy breaks. As always, I am agnostic. There is no question that China will have a difficult adjustment, but it is likely to take the … http://bit.ly/2Q8MY2j

The U.S. Trade Deficit Isn’t Caused by Low American Savings

A recent article by Joseph Stiglitz suggests that the United States runs a current account deficit because its people save too little to fund domestic investment. In fact, he may have it backwards: Americans may save too little precisely because the United States runs a current account deficit. Economist Joseph Stiglitz recently published an interesting piece in Project … http://ceip.org/2B5S64b

Tariffs and Trade Intervention

Most of the discussions among economists about the impacts of tariffs and trade intervention are more ideological than logical. While tariffs may cause households to pay more for tradable goods, there are many other ways households, and the overall economy, are affected, positively and negatively. What matters are the conditions under which trade intervention policies are … http://ceip.org/2zsbS97