China's Housing Bubble Is Finally Here -- As Expected. A man and woman sit on a scooter in front of the residential luxury homes of Guangcai (top) in Beijing’s Chaoyang district on September 29, 2016. (FRED DUFOUR/AFP/Getty Images) China’s housing market is becoming overheated. Some cities are seeing double-digit year-on-year growth in recent months, as investors search for yet another market in which yield is going up. New home prices rose on average 9.2% year-on-year across China’s 70 major cities, according to the National Bureau of Statistics.
Home prices in Shanghai have risen 31.2% year-on-year, while those in second-tier city Xiamen have risen 43.8% in the past year. China New Home Prices, Year on Year Growth Source: Trading Economics, National Bureau of Statistics In response, local governments have sought to quell the excessive bidding up of prices through regulations. Interestingly, this comes after years of loosening restrictions to jumpstart the housing market once the real estate frenzy collapsed. The expected housing bubble. China Real Estate Bubble: Will It Bring Down the Global Economy? While U.S. GDP grew by 2.9% this quarter, trouble is brewing on the other side of the Pacific. Analysts are sounding the alarm about growing Chinese debt loads and a potential real estate bubble that threatens to dramatically slow growth in Asia, and which could be a drag on the entire global economy if it bursts. In September, Ma Jun, the chief economist of the People’s Bank of China’s research bureau, argued that the Chinese government must take action to stamp out real estate speculation. “”Measures should be taken to put a brake on the excessive bubble expansion in the property sector, and we should curb excessive financing into the real estate sector,” Ma said, according to a translation of a Chinese news report by Bloomberg News.
Other Chinese analysts have been even more vehement. “The dangers of overly inflated housing prices are huge,” writes Hu Shuli, chief editor of Caixin Media in Beijing. Zhang recently conducted an analysis of 252 land auctions in 10 Chinese cities. Is Donald Trump Really Good News for China? Some of Trump’s foreign policy pronouncements are music to China’s ears — others are anathema.
On Tuesday, Republican candidate Donald Trump was elected the next president of the United States. The world has been watching the race with interest – as made clear in The Diplomat – and China is no exception. Chinese Foreign Ministry spokesperson Lu Kang was asked repeatedly for China’s thoughts on the future President Trump during Wednesday’s daily press briefing.
Lu stuck mostly to the predictable boilerplate statement that China hopes “that the new U.S. government can make joint efforts with China to present a steady and sound bilateral relationship to people from the two countries and beyond,” a line he repeated with some minor modifications in response to four separate questions. The one issue Lu was willing to expand on a bit was a question about economic policy – specifically, Trump’s repetition of the oft-heard claim that China is ‘stealing’ American jobs. Enjoying this article? Trump Faces China Economy That’s Changed Much in Eight Years. U.S. President-elect Donald Trump will confront a Chinese economy that is vastly bigger and more mature but less of a growth motor than the one faced by the last Republican administration. It’s also dealing with a host of new challenges. Once driven by exports and investment, China’s growth model has shifted to depend more heavily on consumer spending and services.
The government irked America for years by holding down its currency even as capital flooded in, and now it’s trying to cushion the yuan’s decline as capital flees. Gross domestic product has more than doubled over the past eight years, yet it’s now expanding at the slowest pace since 1990 and debt has reached levels some economists find alarming. QuickTake China's Pain Points “China has become a larger, more powerful and a more influential economy,” said Eswar Prasad, a former chief of the International Monetary Fund’s China division and now a professor at Cornell University in Ithaca, New York. China's financial system undergoing transformation- Nikkei Asian Review. China's financial system is one of the biggest concerns for the world economy today.
The anxiety about another potential "China shock," like the ones in the summer of 2015 and in January this year, persists as the economic slowdown continues and markets remain volatile. Increasing debt at the state-owned enterprises, including so-called "zombie" companies, is a another source of worry. At the same time, the internationalization of the yuan, including the currency's adoption into the International Monetary Fund's special drawing rights basket, is increasing, as is China's influence in the global financial system.
There are both positive and negative developments in and around China's financial system and the situation is complicated. About 25 top-level scholars and experts from nine countries and regions discussed the issue at a conference in Tokyo this month. Dual track reform Huang said China's financial reform had experienced a "unique pattern. " The "impossible trinity"
China′s ′New Silk Road′ brings great promise to eastern Europe | Europe | DW.COM | 05.11.2016. In the past 25 years, there have been a number of international platforms focusing on Central, East and Southeast Europe (CESEE). However, few have been as comprehensive and ambitious as the Beijing-led initiative dubbed "16+1," which brings together 16 post-socialist countries, eleven of which are European Union member states and five of which are in different stages of accession.
China is aiming to promote "pragmatic cooperation" across a number of policy areas, with the goal of making the most out of CESEE's untapped economic potential. On November 5, leaders from China and CESEE countries will hold their fifth-annual summit in Riga. The high-level talks are accompanied by business forums, think-tank conferences and other sideline events. New era of cooperation The increased interaction has been an unlikely development.
Chinese policymakers and experts say that in 2016, China-CESEE relations are ready to move beyond the initial phase of rapprochement. Living up to its potential. Is China Already Taking Its Revenge for THAAD? Cultural exchanges have started to become restricted, but can China really give up its addiction to Hallyu? By Jenna Gibson for The Diplomat August 03, 2016 The fight over South Korea’s decision to deploy the Terminal High-Altitude Area Defense (THAAD) system may have just had its first casualty – a chicken and beer festival. Officials from the Chinese city of Qingdao cancelled their appearance at a festival in their sister city of Daegu at the last minute, and asked the mayor of Daegu not to attend a beer festival in Qingdao this month. The exchange between Daegu and Qingdao was meant to spark diplomacy and economic engagement, but instead may become part of the fallout from Seoul’s decision to deploy THAAD. At the beginning of July, the United States and South Korea officially announced they would be deploying the missile defense system near the city of Seongju, drawing immediate ire from Beijing.
Enjoying this article? In fact, the retaliation could already be underway. « La Chine a bien plus à perdre de la montée populisme occidental que du Brexit » LE MONDE IDEES | • Mis à jour le | Par Antoine Bondaz (docteur associé au CERI/Sciences Po) Le 25 juin dernier, un éditorial du Global Times, un des principaux quotidiens chinois au positionnement nationaliste, évoquait « l’état d’esprit de perdant » du Royaume-Uni et le « déclin » de l’Europe au lendemain du référendum britannique sur la sortie de l’Union Européenne (UE).
Dans les cercles de pouvoir à Pékin, les réactions sont plus mesurées et c’est l’attentisme face aux nombreuses incertitudes que le vote britannique et surtout la montée du populisme en Occident font peser sur l’économie mondiale qui prédomine. Brexit : entre danger et opportunité Les économistes et entrepreneurs chinois demeurent ambivalents vis-à-vis du Brexit et sont en cela fidèles à la tradition chinoise considérant toute crise tant comme un danger qu’une opportunité.
Campagne anticorruption/Anti-corruption campaign. US/China relations / Relations Etats-Unis/Chine.