News Update

News Update

Chuang posts a news update blog about once a week.

 

 

“China Is One of the Most Unequal Countries in the World, IMF Paper Says,” By IAN TALLEY, The Wall Street Journal, March 26, 2015, http://blogs.wsj.com/economics/2015/03/26/china-is-one-of-most-unequal-countries-in-the-world-imf-paper-says/

According to the IMF, inequality in China has continued to rise and China now stands as one of the most unequal societies in the world. “The top quintile of earners now pull in nearly half of total income while the poorest quintile of earners account for under 5%.” The report also questions how this increasing inequality will effect continued economic growth.

“The devil, or Mr Wang,” The Economist, March 28, 2015, http://www.economist.com/news/china/21647295-chinas-second-most-powerful-leader-admired-and-feared-devil-or-mr-wang

This article profiles Wang Qishan, who has headed the the party’s Central Commission for Discipline Inspection, responsible for investigating corruption, since late 2012. The Economist argues that, while Wang is sixth in party hierarchy, he is second only to Xi Jinping in power. The anti-corruption campaign that Wang has lead has particularly targeted those in the coal and petroleum industries, sectors that formed powerful factions within the party. Provinces like Shanxi, hit especially hard because of its large coal industry, is apparently having a hard time refilling positions.

 

“Beijing extends steel sector consolidation by 10 years,” by ERIC NG, SCMP, March 22, 2015, http://www.scmp.com/business/commodities/article/1744825/beijing-pushes-chinas-steel-sector-consolidation-target-forward

“The goal, to have the nation’s top 10 steel producers occupy at least 60 per cent of the market by the end of this year, did not go anywhere with the industry having in fact fragmented even more. Beijing now wants to achieve the goal by 2025.” This failure calls into question the power of the central government to push through these reforms. Local governments fear the loss of jobs and taxes. Massive over-capacity remains a key problem in the steal sector.

 

“Iron ore slump set to shrink China’s mining capacity,” By DAVID STANWAY, Reuters, March 27, 2015, http://www.reuters.com/article/2015/03/27/china-ironore-idUSL3N0WT18J20150327

About 75 pct of China iron ore mining capacity loss-making; utilisation rate at small mines as low as 20 pct last year.

 

“China’s big banks double their write-offs,” Dow Jones Newswires, March 28, 2015, http://www.heraldsun.com.au/business/breaking-news/chinas-big-banks-double-their-write-offs/story-fnn9c0hb-1227282116050

“Faced with growing numbers of bad loans, China’s biggest banks are ramping up efforts to get rid of them.”

“China’s yuan may join elite money club this year,” By MICHAEL KITCHEN, Market Watch, March 26, 2015, http://www.marketwatch.com/story/chinas-yuan-may-join-elite-money-club-this-year-2015-03-25

“In what would be a huge milestone in China’s emergence as a major world financial power, the International Monetary Fund looks likely to adopt the country’s currency into the basket that makes up its global forex benchmark.”

 

“How China used more cement in 3 years than the U.S. did in the entire 20th Century,” By ANNA SWANSON, The Washington Post, March 24, 2015, http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/24/how-china-used-more-cement-in-3-years-than-the-u-s-did-in-the-entire-20th-century/?postshare=471427292589402

“China used more cement between 2011 and 2013 than the U.S. used in the entire 20th Century.”

 

“Beijing to Shut All Major Coal Power Plants to Cut Pollution,” by Bloomberg News, March 23, 2015, http://www.bloomberg.com/news/articles/2015-03-24/beijing-to-close-all-major-coal-power-plants-to-curb-pollution

Facing internal and external pressure, the Chinese state moves to curb pollution around Beijing.

Image source: http://www.scmp.com/business/commodities/article/1744825/beijing-pushes-chinas-steel-sector-consolidation-target-forward

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