Day: August 20, 2023

China Cuts Key Interest Rate to Support Economy

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China’s central bank on Monday cut a key interest rate in an attempt to counter the post-COVID growth slowdown in the world’s second-largest economy. The one-year loan prime rate, which serves as a benchmark for corporate loans, was reduced from 3.55% to 3.45%, the People’s Bank of China said in a statement, while the five-year LPR, which is used to price mortgages, was held at 4.2%. Closely followed by the markets, the two rates are now at historic lows, after previous reductions in June. The decision is intended to encourage…

China surprisingly holds mortgage rate, underwhelming move raises easing outlook concerns

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Wen Bin, chief economist at China Minsheng Bank, believed the move is set to provide room for Beijing’s policymakers to adjust mortgage policies. “The rate cut of existing mortgage loans is already in the pipeline,” Wen said. Advertisement In a key de-risking meeting on Friday, China’s central bank, as well as banking and securities regulators, pledged to intensify policy coordination to address risks of local government debt and optimise credit policy for the real estate sector. Hopes for a stimulus-led turnaround in economic activity largely depend on the prospect of…

Chinese video games are on the rise, but I wish they got more respect

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One of the most popular video games in the world today is Chinese. Not that everyone would be aware of the fact, or would care, but that game is Genshin Impact and it was created by Shanghai-based miHoYo. Its style and characters are greatly influenced by anime, and many players might have thought Genshin was Japanese-developed; it is telling that miHoYo is inspired by that country’s culture. Despite being the world’s biggest video games market, China still remains relatively minor as an international cultural force in games. Video games are…

Japan PM Says No Decision on Fukushima Water Release Date

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Tomioka, Japan —  Japanese Premier Fumio Kishida said Sunday his government has not yet decided when to begin releasing treated water from the crippled Fukushima nuclear plant into the Pacific Ocean. Media reports suggest that the discharge of some of the 1.34 million tons of water, which Japan insists is safe, could begin as soon as this month, despite anger from China and concern elsewhere. Speaking at the Fukushima site, wrecked by a tsunami in 2011 in one of the world’s worst atomic accidents, Kishida said he would first meet…

FirstFT: China pushes Brics to become geopolitical rival to G7

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Receive free China updates We’ll send you a myFT Daily Digest email rounding up the latest China news every morning. Good morning. We begin today with a scoop that China will push the Brics bloc of emerging markets to become a full-scale rival to the G7 this week, as leaders from across the developing world gather to debate the forum’s biggest expansion in more than a decade. South Africa’s President Cyril Ramaphosa has invited more than 60 heads of state and government to a summit in Johannesburg from Wednesday when…

How a submerged Spratlys reef is emerging as a South China Sea flashpoint for China, the Philippines and US

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Some context is needed. In January 2013, the Philippines filed a complaint against China’s claims in the South China Sea under the dispute settlement mechanism of the UN Convention on the Law of the Sea (UNCLOS). On July 12, 2016, the international arbitration panel ruled, among other things, that Second Thomas Shoal in the Spratly Islands is part of the Philippine continental shelf and within its exclusive economic zone. Therefore, the Philippines has exclusive sovereign rights to its resources there – including a navy vessel it grounded on the shoal…

Chinese students join rat race to study abroad as job prospects dim amid slowing economy

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But Zhan dislikes the ideological and political education classes and conferences that are mandatory at Chinese universities. “I feel like my time is not being respected,” she added. “Homogenisation and formalism in domestic education are serious.” Advertisement This is despite Beijing’s strong support and investment in attracting talent and research development to compete internationally amid geopolitical tensions. Since the reform and opening up in 1978 to the end of 2021, around 8 million Chinese students have studied abroad, according to the Ministry of Education, with applications soaring by 23.4 per…

Suu Kyi’s son urges young Burmese to ‘never give up’ on democracy

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Radio Free Asia’s Soe San Aung spoke with Kim Aris, the son of former State Counselor Aung San Suu Kyi, last week.  Suu Kyi served as Myanmar’s de facto leader following national elections in 2015, which her National League of Democracy won by a landslide. The party also won the 2020 national elections, but the military seized power from the democratically elected government on Feb. 1, 2021.  The army immediately arrested civilian leaders, including Suu Kyi, who were in Naypyidaw for the convening of the newly elected lower house of…

German minister proposes tougher rules on Chinese foreign direct investment

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Receive free German economy updates We’ll send you a myFT Daily Digest email rounding up the latest German economy news every morning. Germany’s deputy chancellor has set out proposals to increase scrutiny of Chinese investments as Europe’s largest economy grapples with increased geopolitical risks surrounding its biggest trading partner. The measures put forward by Robert Habeck, a Green who also serves as economy minister, would toughen restrictions on foreign direct investment in Germany in critical sectors such as semiconductors and artificial intelligence, and come just weeks after Berlin warned that…