Tag: Liu He (1952- )

How China’s Property Crisis Is Testing Its Too-Big-to-Fail Banks

Media Library

China’s giant banking system, the world’s largest, is heavily exposed to the real estate crisis: Nearly 40 percent of all bank loans are related to property. And pressure is building on those banks as dozens of real estate developers have defaulted or missed payments on overseas bonds, led by China Evergrande, the world’s most indebted developer. The scale of China’s property problems — enormous levels of debt, an oversupply of apartments and consumers increasingly wary of buying — means the government could be forced in the coming years to spend…

Balloon Incident Highlights Fragile State of U.S.-China Relationship

Chin@Strategy

After years of deepening mistrust and simmering tensions, ties between the United States and China appeared poised for a modest rebound following the meeting of the two nations’ leaders at a summit last November and recent efforts by Beijing to stabilize its relations with the world. A visit by Secretary of State Antony J. Blinken to Beijing this weekend was expected to build on that progress. All it took was a balloon to upend everything. The discovery of what American military officials called a “high-altitude surveillance balloon” over Montana this…

China Returns to Davos With Clear Message: We’re Open for Business

Chin@Strategy

DAVOS, Switzerland — China ventured back on to the global stage Tuesday, sending a delegation to the World Economic Forum to assure foreign investors that after three years in which the pandemic cut off their country from the world, life was back to normal. But the Chinese faced a wary audience at the annual event, attesting to both the dramatically changed geopolitical landscape after Russia’s war on Ukraine, as well as two data points that highlighted a worrisome shift in China’s own fortunes. Hours before a senior Chinese official, Liu…

China Sets Aside Push to Spread Wealth in Pivotal Year for Xi

Chin@Strategy

BEIJING — For much of last year, China’s top leader, Xi Jinping, waged a fierce campaign to rein in private capital and narrow social inequalities. Regulators cracked down on tech giants and wealthy celebrities. Beijing demanded that tycoons give back to society. And the Communist Party promised that a new era of “common prosperity” was on the horizon. Now, the Communist Party is putting its campaign on the back burner. In doing so, Beijing is tacitly acknowledging that Mr. Xi’s push to redistribute wealth has unnerved the private sector —…