The hidden debt of China’s local governments, which is held by entities called Local Government Financing Vehicles (LGFVs), has rattled financial markets. Now some worry that it could threaten the entire economy. While there is no official data, one estimate of LGFVs debt puts it at 59 trillion yuan (US$8.25 trillion) at the end of … more
As dusk cast dark shadows along the narrow alleyways of Guangzhou’s garment district in the southeast corner of the city, Mrs. Wong packaged the last of the folded garments into flat cellophane bags. She remained silent, despite feeling exhaustion, anger, and resentment toward her husband after another bitter argument had exploded earlier that day. Moments … more
Under what conditions does China terminate politically motivated barriers to trade? In August 2023, China announced it would remove tariffs on Australian barley that were imposed amid bilateral tensions in May 2020. The removal was widely celebrated for enabling the resumption of a trade that had been worth up to US$1 billion annually. Barley was one … more
Informal economic sanctions reinforced by state-sponsored consumer boycotts have made the Chinese market volatile for multinational corporations (MNCs) over the past decade. MNCs must be careful not to offend Beijing and nationalists in the People’s Republic of China (PRC). Nonetheless, a definition of what it means to ‘offend China’ 辱華 is rather elusive. Examples range … more
Innovation in science and technology has become the main battleground of the global strategic contest.[1] — Xi Jinping, 28 May 2021 Realising the complete reunification of the Motherland is the shared longing of all Chinese sons and daughters and represents the essence of National Rejuvenation.[2] — Xi Jinping, 13 March 2023 Introduction At the Two … more
It is no coincidence that Desmond Shum’s Red Roulette has been one of the most popular books among China watchers to come out in recent years. For many of us, his lurid descriptions of the drama and debauchery taking place among the great and gilded in Beijing are as thrilling as The Godfather, a real-life … more
On 4 February 2022, the opening day of the Winter Olympics in Beijing and only twenty days before Russia’s invasion of Ukraine, China and Russia declared a ‘no limits’ partnership that ‘surpasses an alliance.’ Given China’s and Russia’s geopolitical ambitions and boundaries, a tighter alignment between the two countries could significantly change the power structure … more
It is an understatement to say that 2022 has not been a great year for the Chinese economy – and the world has taken note. With GDP growth projections ‘slashed’ by the World Bank in June, and again in September to 2.8 percent, there is no doubt that the Chinese government will fail to reach … more
In June 2022, the Chinese Ministry of Ecology and Environment and sixteen other government departments jointly released their ‘National Climate Change Adaptation Strategy’. The document outlined plans for the People’s Republic of China (PRC) to become a ‘climate-resilient society’ by 2035. It emphasised the need for adaptation and mitigation, namely, reducing emissions through new technologies … more
