Why Wall Street Backs China Despite Beijing’s Tighter Grip

why wall street backs china despite beijings tighter grip

This year has been unsettling for Chinese business. The ruling Communist Party has gone after the private sector industry by industry. The stock markets have taken a huge hit. The country’s biggest property developer is on the verge of collapse. But for some of the biggest names on Wall Street, China’s economic prospects look rosier than ever. BlackRock, the world’s biggest asset manager, urged investors to increase their exposure to China by as much as three times. “Is China investable?” asked J.P. Morgan, before answering, “We think so.” Goldman Sachs…

U.S. Signals No Thaw in Trade Relations With China

u s signals no thaw in trade relations with china

WASHINGTON — The Biden administration offered its strongest signal yet that the United States’ combative economic approach toward China would continue, with senior administration officials saying that President Biden would not immediately lift tariffs on Chinese goods and that he would hold Beijing accountable for trade commitments agreed to during the Trump administration. Comments on Monday by Katherine Tai, the United States trade representative, and other officials provided one of the first looks at how the Biden administration plans to deal with a rising economic and security threat from China.…

Evergrande’s Struggles Offer a Glimpse of China’s New Financial Future

evergrandes struggles offer a glimpse of chinas new financial future

HONG KONG — Xu Jiayin was China’s richest man, a symbol of the country’s economic rise who helped transform poverty-stricken villages into urbanized metropolises for the fledgling middle class. As his company, China Evergrande Group, became one of the country’s largest property developers, he amassed the trappings of the elite, with trips to Paris to taste rare French wines, a million-dollar yacht, private jets and access to some of the most powerful people in Beijing. “All I have and all that Evergrande Group has achieved were endowed by the party,…

China Power Outages Close Factories and Threaten Growth

china power outages close factories and threaten growth

DONGGUAN, China — Power cuts and even blackouts have slowed or closed factories across China in recent days, adding a new threat to the country’s slowing economy and potentially further snarling global supply chains ahead of the busy Christmas shopping season in the West. The outages have rippled across most of eastern China, where the bulk of the population lives and works. Some building managers have turned off elevators. Some municipal pumping stations have shut down, prompting one town to urge residents to store extra water for the next several…

Australia’s Costs for Its Harder Line on China

australias costs for its harder line on china

CANBERRA, Australia — Four years after declaring that it would “stand up” to China, Australia is wrestling with the economic and political consequences of a sharp turn in policy and tone that has helped send relations with Beijing into their deepest chill in decades. Allies have applauded Australia for showing how the world’s smaller powers can redefine ties with China — a trailblazing push that deepened this month with Australia’s decision to acquire American nuclear-powered submarines. But to increasingly vocal critics, Australia also offers warnings about the risks of losing…

The Economy Looks Solid. But These Are the Big Risks Ahead.

the economy looks solid but these are the big risks ahead

The low-hanging fruit of the pandemic economic recovery has been eaten. As a result, the expansion is entering a new phase — with new risks. For months, the world economy has expanded at a torrid pace, as industries that were shut down in the pandemic reopened. While that process is hardly complete — numerous industries are still functioning below their prepandemic levels — further healing appears likely to be more gradual, and in some ways more difficult. Reopening restaurants and performance arenas is one thing. Fixing extraordinary backups in shipping…

Wonking Out: This Might Be China’s ‘Babaru’ Moment

wonking out this might be chinas babaru moment

OK, who ordered that? You’d think that between Covid-19, climate change and U.S. democracy under siege, we would already have enough crises on our plate. A potential Chinese financial meltdown is the last thing we need. Yet here we are. The story of the moment is Evergrande, a huge, heavily indebted real estate company that appears on the edge of default. The echoes of the global financial crisis 13 years ago are obvious. The conventional wisdom is that Evergrande isn’t another Lehman Brothers, that any fallout from its woes, and…

For India’s Military, a Juggling Act With Pakistan and China

for indias military a juggling act with pakistan and china

CHANDIGARH, India — After the deadliest clashes in half a century with China, India’s military has taken emergency measures to reinforce a 500-mile stretch of the border high in the Himalayas. In the past year, it has tripled the number of troops in the contentious eastern Ladakh region to more than 50,000. It has raced to stock up on food and gear for freezing temperatures and 15,000-foot altitudes before the region is largely cut off for much of the winter. It has announced that an entire strike corps, an offensive…

Business groups are divided as China seeks self-reliance.

business groups are divided as china seeks self reliance

China’s push for self-sufficiency in a wide range of industries is dividing foreign companies, with some welcoming it as another chance to invest there while others worry that it will cause risks to the country’s trading partners and its own economy. Two influential groups of foreign businesses in China issued very different reports on Thursday. They revealed a striking divide on whether international companies support China’s push to replace imports with a self-reliant emphasis on domestic production. China has been heavily subsidizing its manufacturers of semiconductors, commercial aircraft, electric cars…

Beyond Evergrande’s Troubles, a Slowing Chinese Economy

beyond evergrandes troubles a slowing chinese economy

BEIJING — Global markets have watched anxiously as a huge and deeply indebted Chinese property company flirts with default, fearing that any collapse could ripple through the international financial system. China Evergrande Group, the developer, on Wednesday said it reached a deal that might give it some breathing room in the face of a bond payment due the next day. But that murky arrangement doesn’t address the broader threat for Beijing’s top leaders and the global economic outlook: China’s growth is slowing, and the government may have to work harder…

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