Iris Mir | China starts a new round of economic experimentation. Shanghai is set to become the new engine of growth with a China’s first Free Trade Zone (FTZ). The goal is to attract foreign investment by testing new deregulation rules that should give foreign companies greater flexibility. But urgent reforms in other areas are a must in order to transform the rise of the income of Chinese households into real purchasing power.
BEIJING | By Andy Xie via Caixin Magazine | India and China, the elephant and the dragon, are entering a new chapter, and the main question they both face is whether they will reform before a crisis or after.
BEIJING | By Andy Xie via Caixin Magazine | As the U.S. continues to normalize interest rates, emerging economies become vulnerable. Brazil and India are at the eye of the storm, but China with its huge property bubble should be wary.
BEIJING | Calls to reform China’s one-child policy are growing, and the government should respond by considering the range of options available, Chinese economic magazine Caixin states. That would boost the economy by reshaping the demographic structure to support sustained growth.
BRATISLAVA | By Andrej Matisak | “Corruption is rampant. Giving bribes is not unusual. Do in Rome as Romans do. So many foreign companies have also followed the practice in China.”
BARCELONA | By CaixaBank research team | The credit provided by China’s financial system has grown at a very fast rate over the last few years, particularly in its so-called shadow banking system.
BEIJING | For Chinese economic magazine Caixin, well-managed sovereign investment companies are a trend China would do well to follow, given the size of the country’s foreign exchange reserves.
BEIJING | By Xia Huihan, via Caixin magazine | Chinese state-owned companies or SOEs should stop gaining muscle for the sake of the country’s economic health.
Iris Mir | By mid-June the National Audit Office of China released a report unexpectedly detailing the debts of 36 local governments. It unveiled the chilling figure of 3.3 trillion dollar in debt, by the end of 2012. A 13% higher than in 2010. Furthermore, the lack of stimulus investment plans is fuelling scepticism among those who expected the Asian dragon to keep the world economy afloat. Mostly because the priority for China now is to reorient its model of growth with ambitious programs like the new Co2 emissions exchange.
Keep in mind a new concept: Lionomics. An acronym that gives name to the ambitious process of economic reform the new Chinese Prime Minister Li Keqiang must bring forward.