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China’s Economic Coercion Backfires: Australia’s Economy Thrive

June 4, 2023 Noah 0 Comments China, Economy

According to a report from the Europe Asia Foundation, China’s attempts at economic coercion have proven ineffective in damaging Australia’s

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China’s Manufacturing Sector: A Surprising Rebound in May

June 2, 2023 Noah 0 Comments China, Economy

China’s factory activity unexpectedly rebounded in May, indicating a shift from previous declines, according to a recent survey conducted by

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Job Market Struggles: China’s Youth Unemployment Peaks at 20.4% in April

May 30, 2023 Noah 0 Comments China, Economy

China is currently dealing with a significant increase in youth unemployment, and as a result, college graduates are facing a

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China Calls on Japan to Cease Chip Export Restrictions

May 29, 2023 Noah 0 Comments China, Economy

Chinese Commerce Minister Wang Wentao has urged Japan to stop its restrictions on semiconductor exports, stating that they infringe upon

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Digital Transformation Sparks Economic Growth in China’s Real Economy

May 28, 2023 Noah 0 Comments China, Economy

The rapid advancement of digital technology in China is emerging as a significant catalyst for the growth of the real

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China’s Industrial Profits Face Downward Trend Due to Weakened Demand

May 27, 2023 Noah 0 Comments China, Economy

Profits of industrial firms in China continued to decline during the first four months of the year, reflecting a decrease

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Positive Outlook: China’s Economy Set to Improve in the Second Half

May 26, 2023 Noah 0 Comments China, Economy

According to the manager of Neuberger Berman’s Chinese fund, China’s economy is poised to experience an upturn in the second

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Russia and China Strengthen Economic Ties Amid Western Backlash

May 25, 2023 Noah 0 Comments China, Economy

During a visit to Beijing, Russia’s Prime Minister, Mikhail Mishustin, signed several agreements with China, highlighting the strength of the

In an article for the Financial Times, Ruchir Sharma, the chairman of Rockefeller International, expressed his belief that the confidence in China's economic rebound from Covid-19 restrictions is not grounded in economic realities. He argued that there are indications of underlying weaknesses in the Chinese economy, but Wall Street analysts are not openly discussing them. Sharma highlighted several indicators to support his claim. For instance, while Wall Street's assumption of 5% GDP growth would suggest corporate revenue growth of 8%, it only rose by 1.5% in the first quarter. In fact, corporate revenue is slower than GDP in 20 out of the country's 28 sectors. The MSCI China stock index has also experienced a decline of 15% from its peak in January. Moreover, Sharma pointed out that imports, which serve as a strong indicator of consumer demand, dropped by 8% in April. Additionally, credit growth in China last month was only half as fast as predicted. He also highlighted the rising youth unemployment rate, which has reached 20%. According to Sharma, these facts shed light on the root cause of the economic deterioration. Since 2008, China's economic model has relied heavily on government stimulus and mounting debt, particularly in the property markets. However, Chinese debt service now accounts for a significant portion of disposable income, excess savings in China are considerably lower compared to the US, and the country's growth potential is limited due to a shrinking population. Sharma argued that a growth model based on stimulus and debt was always unsustainable, and it has now lost momentum. Rather than acting as the main drivers of growth, the property market in China has fallen into a debt crisis. The difficulties in financing this debt have had a ripple effect across various markets, resulting in a faster slowdown in industrial sectors compared to consumer-related firms. Despite these challenges, many Western observers continue to hold onto the belief that China's rebound is still attainable, which Sharma finds detrimental for eager investors. He emphasized that this optimism has already led to significant financial losses in China over the past few months. He also warned that global growth may be weaker than expected in 2023 if the hope of countering a US downturn with a China reopening boom does not materialize. Sharma called for an end to this charade before the consequences worsen.

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China’s Economy Exposed: The Hidden Truth Behind the Reopening Boom

May 23, 2023 Noah 0 Comments China, Economy

In an article for the Financial Times, Ruchir Sharma, the chairman of Rockefeller International, expressed his belief that the confidence

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G-7 Nations Forge a Common Path to ‘De-Risk’ from China

May 22, 2023 Noah 0 Comments China, Economy

During a meeting in Hiroshima, Japan, the leaders of the Group of Seven (G-7) nations have reached a consensus that

The recent G7 summit held in Hiroshima not only aimed to send a strong message to Russia but also highlighted concerns about China. British Prime Minister Rishi Sunak, among others, stated that China presented the "greatest challenge of our age" in terms of global security and prosperity, noting its increasing authoritarianism both at home and abroad. In their statements, the leaders of the world's wealthiest democracies made their stance on contentious issues such as the Indo-Pacific and Taiwan clear to Beijing. However, the focal point of their message revolved around what they referred to as "economic coercion." For the G7 nations, this poses a delicate balancing act. Their economies have become deeply intertwined with China through trade, but the competition with Beijing has intensified, and they disagree on numerous issues, including human rights. Yet, the G7 leaders worry that they are being held hostage. In recent years, Beijing has not hesitated to impose trade sanctions on countries that have displeased them. South Korea experienced this when Seoul installed a US missile defense system, and Australia faced similar repercussions during a period of strained relations. The European Union was particularly alarmed when China blocked Lithuanian exports after the Baltic country allowed Taiwan to establish a de facto embassy. It is, therefore, unsurprising that the G7 would condemn what they perceive as a "disturbing rise" in the "weaponization of economic vulnerabilities." The G7 leaders called for "de-risking," a policy championed by European Commission President Ursula von der Leyen. This approach represents a more moderate version of the US concept of "decoupling" from China. It entails adopting a tougher diplomatic stance, diversifying trade sources, and safeguarding trade and technology. Furthermore, they launched a "coordination platform" to counter economic coercion and collaborate with emerging economies. Although the specifics of this platform remain vague, it is likely to involve countries assisting one another by increasing trade or providing funding to overcome any barriers imposed by China. The G7 also intends to strengthen supply chains for crucial goods like minerals and semiconductors while bolstering digital infrastructure to prevent hacking and technology theft. Their most significant measure, however, is multilateral export controls. This entails working together to ensure that their technologies, especially those used in military and intelligence sectors, do not end up in the hands of "malicious actors." The US has already implemented such controls by banning the export of chips and chip technology to China, a move joined by Japan and the Netherlands. The G7 made it clear that these efforts would not only continue but intensify, despite Beijing's protests. Additionally, they expressed their commitment to cracking down on "inappropriate transfers" of technology facilitated through research activities. Many countries, including the US, have expressed concerns about industrial espionage and have prosecuted individuals accused of stealing tech secrets for China. Simultaneously, the G7 leaders were careful not to sever ties with China. Much of their language regarding economic coercion did not explicitly name China, seemingly attempting to avoid directly pointing a finger at Beijing. When discussing China, they took a nuanced approach while standing their ground. They sought to appease Beijing by asserting that their policies were not designed to harm China, nor were they seeking to impede its economic progress and development. They clarified that they were not pursuing decoupling or turning inward. However, they also exerted pressure on China to cooperate, emphasizing that a "growing China that plays by international rules would be of global interest." They also advocated for "candid" engagement, indicating their willingness to maintain open lines of communication despite the tense atmosphere, allowing them to express their concerns directly to China.

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G7 Nations United: Confronting China’s Economic Coercion

May 21, 2023 Noah 0 Comments China, Economy

The recent G7 summit held in Hiroshima not only aimed to send a strong message to Russia but also highlighted

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G7 Emphasizes ‘De-risking’ China Links as Priority

May 19, 2023 Noah 0 Comments China, Economy

As the G7 summit in Hiroshima approached, the United States, European Union, and Japan took a cautious stance and formed

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