Our Blog

12
Jul

China’s Service Sector: An Increasingly Important Growth Engine?

As an analyst who is interested in thoroughly covering China, the most frustrating aspect associated with addressing concerns is represented by the various myth one has to inevitably debunk. One of the top myths, perhaps the number one culprit, is that China is overly-dependent on industrial production and in the mind of the average Westerner,

11
Jul

China’s Industry and Manufacturing Sector: Past Performance vs. Current Trends

China’s industry and manufacturing dimension is a textbook example of a sector that has experienced tremendous growth, with output having risen more than 300% over the past 10 years and currently sitting well north of 100 trillion CNY. Despite its impressive size and the fact that it accounts for almost 50% of global manufacturing output

11
Jul

Looking at China Through a BRICS Lens

The initial term “BRIC” was coined by the chief economist of Goldman Sachs (Jim O’Neill) back in 2001 and referred to the world’s four most important emerging markets: Brazil, Russia, India and China. As of 2010, South Africa (the “S” dimension of BRICS) was added to the equation and right off the bat, it’s important

10
Jul

Socialism with Chinese Characteristics?

First and foremost, it’s important to make it clear that no, there’s no such thing as “communism” in China, nor has there ever actually been communism anywhere else according to the definition(s) of Karl Marx, Friedrich Engels et al. because in the equation the thinkers in question envisioned, communism was the final stage… and we

10
Jul

Intellectual Property Rights in China: From International Obligations to Conflict of Interests

One of the most widely used arguments when discussing the various episodes involving trade tensions between the United States and China has been the fact that billions of dollars are lost each year due to IP rights not being respected properly. On the one hand, you have China’s post-2017 commitment to stricter enforcement, with measures

10
Jul

China’s Agriculture Sector: Past, Present and Future

You can say a lot about the development of a nation by analyzing its agriculture sector, more specifically the percentage of its GDP represented by agriculture. In China’s case, the fact that agriculture went from representing roughly 50% of China’s GDP prior to Deng Xiaoping’s 1978 reforms to less than 10% at this point, with

09
Jul

China’s 2015-2016 Stock Market Crash and Its Consequences

On the 5th of June 2015, a severe market crash started from which China has not been able to fully recover. On the contrary, despite a recovery starting as of February of 2016, prices were not able to get anywhere near their pre-crash highs and, in fact, they went to new lows toward the end

09
Jul

What Foreign Investors Should Understand About China’s Political System… But Usually Don’t

There is a world of difference between claiming you understand a principle and actually internalizing the principle in question. The attitude of many foreign investors with respect to how things work in China politically speaking frequently represents an eloquent example to that effect. The difference between talking the talk and walking the walk, if you

09
Jul

Making Sense of China’s Government Debt Sustainability (or Lack Thereof)

According to the most recent IMF data that is available (their April 2019 World Economic Outlook dataset), the general government gross debt of China as a percentage of its GDP is 55.4%, which seems remarkably low if you compare it to many of the world’s most developed nations. In fact, China’s gross debt to GDP

08
Jul

The Great Recession (Global Financial Crisis) of 2007-2008 and Its Effect on China

The Great Recession (or Global Financial Crisis, if you prefer this terminology) of 2007-2008 (in)famously had its origins in the United States. More specifically, everyone went crazy when it came to real estate in the US: the average consumer bought more than he could afford to by taking advantage of the easily available mortgage packages,