Australia, Indonesia and South Korea skipped the launch of a China-backed Asian infrastructure bank on Friday as the United States said it had concerns about the new rival to Western-dominated multilateral lenders.
China’s proposed $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both multilateral lenders that count Washington and its allies as their biggest financial backers.
China, which is keen to extend its influence in the region, has limited voting power over these existing banks despite being the world’s second-largest economy.
The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50 percent.>> Read More
China’s National Bureau of Statistics said Tuesday the country’s gross domestic product rose 7.3% on the year for three months through September, the slowest growth since the first quarter of 2009.
Inflation-adjusted economic growth slowed, quarter-on-quarter, for the time since the January-March period of 2014, and matched the average market estimate in a survey by The Nikkei and Nikkei Quick News
Investment and production were stagnant, largely due to a slowdown in home sales throughout the country. The slowing Chinese economy may, in turn, hamper global growth.>> Read More
For the first time in two years, Japan and China are working to resume discussions on setting up a hotline to avoid accidental collisions between their forces at sea and in the air.
The countries first decided to set up the hotline in April 2007, when Shinzo Abe was serving his first stint as prime minister. In June 2012, an agreement was reached on three broad principles: the hotline would connect their defense chiefs, discussions would be held regularly, and a common language and radio bandwidth would be set up to enable aircraft and ships to contact each other on site.
But discussions broke off when Japan nationalized the Senkaku Islands, which China claims as its own. Last month, the two finally agreed to reopen the talks, but left open the timing. Japanese officials say they have proposed talks at the end of this month and are waiting for a reply from China. Japan aims to gauge China’s true attitude by asking for a resumption two weeks before November’s Asia-Pacific Economic Conference summit, which Beijing will host. As for China appearing to be more flexible on certain issues lately, some still fear that Beijing only wants to boost its appeal internationally by showing that it is working to reduce tensions before the summit.
In fact, even if China assents to the talks, it could end up asking for a delay or drag its feet on a final agreement. “We want to see how China reacts to the proposal,” said a high-ranking Japanese defense official.
Abe told a Diet upper house committee that he wanted “to work this out quickly.” Tensions in the region continue. In May and June, Japanese and Chinese fighter jets came perilously close in the skies above the Senkakus in the East China Sea, for instance.>> Read More
Growth in emerging markets is slowing to its lowest ebb since the aftermath of the financial crisis due to a combination of China’s fading dynamism, a sputtering performance in eastern Europe and Latin America’s slowdown.
Evidence that emerging economies are entering a new era of slower growth will fuel concerns for the global outlook as western countries continue to struggle, the oil price lurches towards a four-year low and eurozone stalwart Germany suffers from declining growth.
Data from 19 large emerging economies collated by research firm Capital Economics show that industrial output in August and consumer spending in the second quarter fell to their lowest levels since 2009. Export growth in August also plunged.
These trends are contributing to a sense that slower growth is becoming a permanent fixture among the world’s most dynamic group of economies. “This is the new normal,” said Neil Shearing, chief emerging markets economist at Capital Economics. “For the rest of the decade this is it. This is as good as it gets.”>> Read More
The strength of China’s long-term economic growth depends on whether it can accomplish two feats at the same time: purging corrupt officials while taking sweeping steps to restructure the economy.
The risk? That the purge blunts the overhaul and the economy falters over time.
A downturn in China would be a blow to the global economy, which counts on the Asian giant to suck in imports and provide opportunities for investment. That’s why the U.S., Europe and others in Asia are watching events in China so closely.
China’s anticorruption drive began in late 2012 as a way to cleanse the ruling Communist Party and convince ordinary Chinese that the system isn’t rigged against them. Investigators are targeting some of China’s most powerful officials and disciplining tens of thousands of lower-echelon officials who party investigators contend got used to padding their salaries.
The worry now is that the headline-grabbing campaign could disrupt plans, which were launched in the same year, to open the financial sector, reduce the role of bureaucrats, give rural residents more rights and limit the power of big state-owned firms, among other changes.>> Read More
China’s central bank governor, Zhou Xiaochuan, left, and China Construction Bank’s Chairman Guo Shuqing. Reuters
Even in China, there are no faceless bureaucrats anymore.
The possible departure of long-serving central bank chief Zhou Xiaochuan, and his potential replacement by former top securities regulator, Guo Shuqing, would be an important transition. Mr. Zhou, an advocate within Beijing’s halls for power for market-oriented financial reforms, has also been a key interlocutor with foreign officials. But his loss may be an opportunity. Empowered with fresh political clout, his successor may be better at achieving change.
Mr. Zhou might yet stay on. He has a nine-lives glow around his career, having reportedly been close to leaving his job several times. Most recently in the run-up to China’s 2012 leadership transition, it became conventional wisdom that his time was done. Instead, Communist Party leaders granted him a waiver from the 65-year-old mandatory retirement age.>> Read More
China will never support or join recently imposed sanctions against Russia, Valentina Matviyenko, the speaker of the Russian parliament’s upper chamber, said on Tuesday following her talks with Chinese President Xi Jinping.
The speaker of the Federation Council quoted the Chinese president as saying, that China will never support sanctions against Russia, no matter how much pressure is exerted on them.
According to Matviyenko, China publicly stated its opinion on the inadmissibility of unilateral sanctions, their illegitimacy and counter-productivity.
Putin kicked out the Rothschild bankers from his country. Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear hugged. The nation spans 12 time zones and is a top supplier of numerous important commodities. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard. The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War is the USDollar Waterloo event. The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world. The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan. When the Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West. The Crash Heard Round the World is coming. The USDollar will be rejected, and replaced by the Gold Trade Standard.