The Big Ideas

by Malcolm Riddell

Part 1 | 'Is China exporting inflation?'

The New York Times

CHINADebate

|

Keith Bradsher | The New York Times
&

by
|
|
&
June 17, 2021
Part 1 | 'Is China exporting inflation?'
Part 1 | 'Is China exporting inflation?'
No items found.

Heading

Keith Bradsher | The New York Times

BIG IDEA | ‘Beijing is moving swiftly to protect its factories and workplaces from rising costs.’
‘Still, rising prices in China, by far the world’s biggest manufacturer and exporter, could be felt around the world.’

Prices are jumping in the United States and around the world, prompting growing warnings that a wave of inflation could threaten the global economy if it persists.’

  • ‘In China, its statistical agency announced on Wednesday morning that prices charged by factories, farmers and other producers had soared 9 percent in May compared to a year earlier, when the pandemic was holding down their costs.’
  • ‘It was the biggest increase since September 2008.’

‘Beijing is moving swiftly to protect its factories and workplaces from rising costs.’

  • ‘It has discouraged steel makers and coal producers from raising prices.'
  • ‘It has vowed to investigate price-gouging and hoarding.’
  • ‘And it has allowed its currency to rise in value to a level unseen in years, giving it a more valuable and powerful tool for buying up the world’s grain, meat, petroleum, minerals and other essentials.’

‘But for now, Chinese manufacturers, rather than consumers, are feeling the price increases.’

  • ‘Costlier iron ore from Australia and corn from the United States account for much of the rise.’

‘So far, price increases don’t appear to be trickling down to China’s consumers.’

  • ‘China’s consumer price index was only 1.3 percent higher in May than a year earlier.’

‘One reason is that the Chinese domestic economy has not yet fully recovered from the pandemic.’

  • ‘Lackluster consumer spending means fewer households are bidding up the prices of goods like pork chops, which have become a little cheaper lately, and even men’s underwear, for which prices have not changed.’

‘China’s consumers are also protected by the country’s surplus of factories that make essentials like clothing and household appliances.’

  • ‘The overcapacity ensures that shoppers have plenty of competitors to choose among.’
  • ‘That makes it hard for manufacturers to pass along price increases to buyers.’
  • ‘ “Along the supply chain, whoever has less negotiating power will bear more cost,” said Wang Dan, the chief economist at Hang Seng Bank China. In China, the companies at earlier stages of supply chains tend to have less bargaining power than retailers and consumers.’

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

'Are you tired of losing yet, America?'

As I write this, Taliban forces have entered Kabul and are reportedly occupying the Presidential Palace.
8/15/2021

Bloomberg

CHINADebate

|

|
&
|

'China Signals More Regulation for Businesses in Coming Years'

‘The State Council’s statement provides a guiding context to interpret current regulatory thrusts. The blueprint as an attempt by Chinese authorities to help investors understand the motives behind the regulatory push.’
8/15/2021

The Wall Street Journal

CHINADebate

|

George Soros
|
&
|

'Xi’s Dictatorship Threatens the Chinese State'

‘Mr. Xi is determined to bring the creators of wealth under the control of the one-party state.’
8/15/2021

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

Don't Say Xi Jinping Didn't Warn You

‘Global investors are shocked to have discovered that China is run by Communists.’
8/5/2021

Bloomberg

CHINADebate

|

Matthew Brooker | Bloomberg
|
&
|

‘Global investors shocked to have discovered that China is run by Communists.’

‘Global investors are shocked to have discovered that China is run by Communists.’
8/5/2021

Bloomberg

CHINADebate

|

|
&
|

'Shocked Investors Scour Xi’s Old Speeches to Find Next Target'

‘While China’s policy moves can feel ad hoc particularly to foreign investors, the changes are quite targeted on certain sectors.’
8/5/2021

The Wall Street Journal

CHINADebate

|

Greg Ip | The Wall Street Journal
|
&
|

'China Wants Manufacturing—Not the Internet—to Lead the Economy'

‘Social media, e-commerce and other consumer internet companies are nice to have. But in his view national greatness doesn’t depend on having the world’s finest group chats or ride-sharing.’
8/5/2021

Bloomberg

CHINADebate

|

|
&
|

'China Plans to Exempt H.K. IPOs From Cybersecurity Reviews'

‘China plans to exempt companies going public in Hong Kong from first seeking the approval of the country’s cybersecurity regulator, removing one hurdle for businesses that list in the Asian financial hub instead of the U.S.’
7/18/2021

The Wall Street Journal

CHINADebate

|

The Editorial Board | The Wall Street Journal
|
&
|

'Biden’s Warning on Hong Kong'

‘The pretense of Chinese and Hong Kong authorities is that their crackdown on the rule of law and dissent will have no effect on Hong Kong’s viability as an international center for trade and finance.’
7/18/2021

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

Why the U.S. Lacks Leverage over China

During the celebration of the Chinese Communist Party’s Centennial celebration, Mr. Xi stood in the same place on the balcony facing Tiananmen Square where Mao Zedong stood when he announced the founding of the PRC; Mr. Xi wore a gray Mao suit, among a sea of blue western suits; and he centered himself right above the portrait of Mao, who is similarly attired.
7/18/2021

Foreign Affairs

CHINADebate

|

Kurt Tong | Asia Group
|
&
|

Hong Kong and the Limits of Decoupling

‘The United States’ inability to make China regret—much less reverse—its transgressions in Hong Kong suggests that financial separation, sanctions, and economic barriers are less reliable tools than many in Washington believe.’
7/18/2021

Nikkei Asia

CHINADebate

|

|
&
|

'I will aim for Mao's Status.'

‘There on the gate was Xi Jinping, Chinese president and party general secretary, in a gray Mao suit. Just below his feet was the portrait of Mao Zedong, also dressed in a gray Mao suit.’
7/18/2021

Financial Times

CHINADebate

|

|
&
|

'US warns companies of risk of doing business in Hong Kong'

“In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.”
7/18/2021

CHINADebate

CHINADebate

Malcolm Riddell
|

CHINADebate

|
&
|

The Chinese Point of View

Here are a few of my thoughts on the importance of Wang Jisi’s ‘The Plot Against China.’ Yuen Yuen Ang’s ‘The Evolution of Chinese Corruption’ speaks for itself - but note especially how Mr. Xi's anti-corruption campaign could hurt China's economy. I have now lived long enough that when a friend complains about his or her spouse, I say to myself, ‘There are no doubt two sides to this story.’
7/4/2021

Foreign Affairs

CHINADebate

|

Wang Jisi | President of the Institute of International and Strategic Studies at Peking University
|
&
|

'How Beijing Sees U.S.-China Relations'

‘In Chinese eyes, the most significant threat to China’s sovereignty and national security has long been U.S. interference in its internal affairs aimed at changing the country’s political system and undermining the CCP.’
7/4/2021

Foreign Affairs

CHINADebate

|

Yuen Yuen Ang | University of Michigan
|
&
|

'How Corruption Powers China's Economy'

‘China has managed to sustain four decades of economic growth despite levels of corruption that even Xi has described as “grave” and “shocking.” Why does it seem to have bucked the trend?’
7/4/2021

Harvard Magazine

CHINADebate

|

Ed Steinfeld | Brown University
Tony Saich
|
Harvard Kennedy School of Government
&
|

'From Rebel to Ruler': Tony Saich on Chinese Communism at 100

‘At so many points during its century-long existence, the CCP appeared to be in its death throes, whether as a result of external attack or self-inflicted internal strife.’
7/1/2021