Proselytizing Power: The Party Wants the World to Learn from Its Experiences

In recent years the Chinese Communist Party (CCP) has stepped up its global outreach. Since Xi Jinping became General Secretary in November 2012, the CCP has significantly intensified its efforts to brief foreign political players on key policies and major meetings. It has done so through conferences in China and through sending official delegations to dozens of countries. These briefings have … http://bit.ly/2SrarOs

Macro Outlook: Steady As She Goes on Deleveraging

The recent Politburo meeting on July 31 reaffirmed Beijing’s priority of containing China’s debt, focusing on state sector and local government deleveraging. Beijing will primarily use administrative measures, and to a lesser extent financial regulation, to contain financial risk for the rest of 2018. While monetary policy will continue to be modestly accommodative, the d … http://bit.ly/2Dz6hPD

Why Beijing Won’t Be Stimulating the Chinese Economy Anymore

The Chinese government treats its GDP target as politically sacred. Thus officials at every level are deeply reluctant to ever “miss the target.” In fact, this aversion has been so acute that, for years, Beijing’s response to an economic slowdown was predictable. Policymakers would become nervous about downward pressure on the economy and the impact on social stability, so … http://bit.ly/2NcuHiw

Local Bad Banks Become Major Players in China’s Bad Loan Market

Since 2013, when China’s banking regulator first started approving the establishment of local asset management companies (AMCs) to help clean up the bad loans in China’s financial system, it has been difficult to gauge the extent to which these “bad banks” have contributed toward clean-up efforts. That’s because the local AMCs—which, by our count, numbered 47 at the end of … http://bit.ly/2JD6xjU

Chinese Investment in the US Did Not, In Fact, “Collapse”

The rapid decline of US-bound Chinese direct investment in 2017 has led many to conclude that the wave of Chinese money is subsiding. To be sure, the drop in Chinese direct investment from 2016 to 2017 was nothing short of dramatic, but that is because 2016 was, in fact, a significant aberration and an exceptional year, not because Chinese investments are now disappearing. … http://bit.ly/2Jmyc4f