Internal Affairs

15
Jul

China’s Legal System: From Legislative, Executive and Judicial Functions to… the CPC

When referring to the politico-economic system of China here on ChinaFund.com (and pretty much everywhere, for that matter), the term “socialism with Chinese characteristics” is frequently used. The “with Chinese characteristics” dimension is crucial when it comes to our brief analysis of China’s legal system because the more research you conduct on China-related topics, the

15
Jul

China’s “Emerging” Middle Class?

The average Western investor tends to raise an eyebrow when analysts use terms such as “emerging” to describe China’s middle class. How can the middle class of the world’s #2 nation by nominal GDP be… emerging? The answer is straightforward and lies in simply understanding what the Gross Domestic Product actually measures. Without going into

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

07
Jul

China’s (Un)Employment Situation: Past Performance, Current Numbers and Future Challenges

As the structure of China’s economy changes, moving toward Western trends that are indicative of a maturing market, the labor dynamics inevitably go through changes as well and as someone who is either holding Chinese assets or interested in gaining some exposure, it’s important to stay on top of these developments. First and foremost, one

07
Jul

China’s Banking System: Past, Present and Future

We’ve covered various concerns pertaining to China’s shadow banking system in a previous article, so it makes sense to also pay attention to… well, its “actual” banking system. And, right off the bat, let’s just say the “Past” dimension of this article will be very brief, for the simple fact that there isn’t really all

06
Jul

Shadow Banking in China: Is Enough Being Done?

In 2019, we can confirm the first full-year decline in terms of Chinese shadow banking volume in over 10 years (2018 compared to 2017), after the authorities started paying serious attention to this dimension of the financial sector as of 2017. Still, we’re looking at a whopping $9.1 trillion in outstanding shadow banking loans, which

05
Jul

(How) Is China Combating Bureaucracy and Administrative Inefficiency?

In China and pretty much everywhere else in the world, the administrative apparatus tends to be (in)famous for excessive bureaucracy, inefficient spending and… well, generally speaking, being disconnected from the proverbial real world. This tends to be a problem because not only is money being lost as a result of various combinations between incompetence and

03
Jul

The (Surprising) Rule of Jiang Zemin

The term of Jiang Zemin, the let’s say successor of Deng Xiaoping, is fascinating to observe not because he has a similar legacy to put on the table (hint: he doesn’t) but rather because he was someone who was able to make the most of the cards he was dealt politically and as such, his