Coronavirus: China’s risky plan to revive the economy

Beijing is targeting a second-quarter rebound but the crisis has exposed the limitations of the system under Xi Jinping. Chinese leaders used to worry about when economic growth might slip below the level of 6 per cent to avoid job losses and social unrest. But now, as they face the prospect of the first quarter of zero or negative growth since the chaos of Mao Zedong’s cultural revolution, they … https://on.ft.com/333Zxmu

Britain considers bringing China on board with HS2

In the past decade China has built 25,000km of high-speed railway, more than all the fast train lines in the rest of the world. Now it has its sights on helping to deliver HS2, the UK’s over budget and long delayed high speed rail line, which earlier this month received the go-ahead for the first phase of construction. Last week it emerged that China Railway Construction Corporation (CRCC) had … https://on.ft.com/329pwIT

For the US and China, interdependence is a double-edged sword

Economic exchange can produce welfare gains, but it can also be used as a weapon. With the coronavirus outbreak, nature has reminded us how much the US and China are economically entangled. But politics is also involved as some in Washington form strategies for a second cold war and economic decoupling. Economic exchange can produce welfare gains for both sides, but it can also be used as a … https://on.ft.com/2UsPR2O

Investors need to position for a US-China clash of civilisations

A ‘great decoupling’ is under way between the incumbent superpower and its challenger. Financial markets welcomed last month’s truce in the long-running trade war between Washington and Beijing. But the “phase one” deal should fool no one. By parking core US complaints, including China’s weak intellectual property protection, forced technology transfer and pervasive state subsidies, the ceasefire … https://on.ft.com/3bbT3pp

Chinese government faces peer-to-peer lending scandals dilemma

In late 2015, investors in one of China’s largest peer-to-peer lending companies, Ezubao, found themselves unable to retrieve their deposits. By September the next year, 26 Ezubao employees had been sentenced for effectively running a Ponzi scheme and failing to repay as much as Rmb38bn ($5.5bn) to investors. It was one of the biggest and most brazen cases where a Chi … https://on.ft.com/2DBZ5SB