Macroeconomics

17
Jul

China’s Military Sector: From Modernization to Tackling Corruption

For an extended period of time, before Deng Xiaoping’s post-1978 reforms started kicking in, the Chinese military industry was best described by insiders as being in a “golden rice bowl” situation or in other words, receiving a significant percentage of China’s GDP but always somehow needing more and asking for more. Deng Xiaoping decided it

14
Jul

What the Gross Domestic Product Does and Doesn’t Tell Us About China

China’s GDP, with its projected value for 2019 at around $14.2 trillion according to the International Monetary Fund’s World Economic Outlook, makes it clear we’re dealing with an economic superpower. According to the same source, China’s GDP is expected to grow by over $1 trillion each year until 2023 and most likely beyond. While it

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

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

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,

08
Jul

Could China Win a Trade War Against the United States?

In light of the (relatively) recent concerns surrounding the possibility of trade tensions between China and the United State escalating in a dramatic manner, a lot of observers are undoubtedly asking themselves whether or not a trade war can actually be won. So, could China win a trade war against the United States? Yes. Could

06
Jul

China – India Relations: From Common Economic Goals to Geostrategic Concerns

China, with its population that exceeds 1.4 billion and India, with a population that exceeds 1.3 billion and is getting close to the 1.4 billion milestone, represent the world’s #1 and #2 nations by population and at the same time, countries that have grown tremendously from a GDP perspective and are poised to maintain their

05
Jul

China and Taiwan: Economic Strength vs. Geopolitical Vulnerabilities

As an analyst, one cannot help but be prudent when describing the relationship between China and Taiwan… or, to be more precise, relationships (plural) because, frankly, it’s very difficult as well as sub-optimal to treat the Chinese-Taiwanese status quo in a uni-dimensional matter. The most straightforward approach, in this author’s view at least, is seeing

04
Jul

Hu Jintao’s Conservative Balance-Oriented Leadership of China

Jiang Zemin left behind a China of contradictions in many respects. On the one hand, a nation that had experienced impressive economic growth but on the other hand, the frequently unsustainable nature of that economic growth came with its own set of problems, from externalities such as pollution to ideological inconsistencies (with many members of