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Are China and the US Locked-In and Waiting for the Other to Exit?
China and US may be waiting until the other is strong enough to contribute more demand. If so the devil is in the timing and sequencing.
September 18th,2009
Mooncake Coupon Tax: China's Weird Taxation Policy
It is normal for tax growth to be higher than GDP in a growth period, but it works against the stimulus if tax revenue growth is higher than GDP in a downturn.
September 17th,2009
President Hu and Four Summits in US: Protectionism, Climate Change, Economics, and Non-Proliferation
Given the recent Sino-American tire dispute and Chinese anti-dumping investigations on imported US chicken and automotives, one focus in the coming summit will be trade protectionism. Chen Deming, China's Ministry of Commerce says it will firmly oppose trade protectionism at the Pittsburgh summit.
September 16th,2009
China Chooses Chicken, Hoping US Chickens Out on Trade War
But China does want to send a strong message to the US and the world: if China's previous concessions due to trade friction are going to encourage its partners to pursue protectionist ends, it will now resort to sterner countermeasures out of self-protection.
September 15th,2009
A High Price Will Be Paid for the New Economic Imbalances the Stimulus Creates
FDI in China has continuously declined over the past year, while the market dominance by and protection of SOEs are strengthening. With less dependence on international markets and foreign capital, China is feeding an illusory sense of superiority, ignoring the true challenges it faces in a rush to return to an old and failed system.
September 15th,2009
On Obama Tire Export Tariff, China Threatens Retaliation
China can choose to get tough and threaten retaliatory measures, in the trade and financial sectors, against the US, and throw in the EU to boot, but it is China that has the most to lose in any trade war escalation.
September 14th,2009
To catch up with India, Chinese Government Push Multinationals to Outsource Services
Facing a continued decline in the export of its manufactures, China is promoting its outsourcing service industry through a series of preferential policies in financing and direct cooperation with multinational companies. The aim is to catch up with India's vast and successful outsourcing operations.
September 10th,2009
Car Production Surge Unsustainable, says NDRC
China's domestic car sales may top 12 million this year in a hot market, but the government is telling the industry not to trust that market and build too many cars for future sales. The momentum of sales of more than one million cars for six consecutive months cannot last.
car industry, Car Production September 9th,2009
China's Shoe Exporters Facing Pricing Pressures, Losing Money
The price for marketing shoes has been on the rise recently. In Dongguan, selling a pair of shoes costs more than one dollar, but the average price for African export is $0.90/pair, so shoemakers must sell at a loss. Thanks to an increased export tax rebate from 11% to 15% since last year, many low-end manufacturing firms are still earning small profits.
China export, shoe exporters September 9th,2009
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