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Macroeconomics

06
Aug

The Top 7 Threats to China’s Economic Growth

Right off the bat, it’s important to make it clear that a “threat” in the true sense of the word is not something that might bring about let’s say a growth rate decrease from 10% to 6.5% but rather an event/phenomenon so dramatic that it might even generate a recession. Believe it or not, even

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01
Aug

(Anything but) Worrying China-Related Energy Consumption and Production Trends?

A recurring theme here on ChinaFund.com is represented by the idea that being stuck in the past is in no way conducive to wise investment decisions. In other words, the economy of China mustn’t be viewed in a linear manner, a manner which revolves around the assumption that the nature and pace of China’s economic

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31
Jul

China’s (Grossly Misunderstood) Mining Sector

It’s quite remarkable how slow to adapt even sophisticated analysts can be when it comes to China. As ironic as it may seem, some of the same people who grossly underestimated Chinese demand for various mining-related products and services for decades are now just as eager to be overly optimistic when it comes to present

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29
Jul

China’s Tourism Dimension: From Stereotypes to Economic Impact

Whenever the topic of Chinese tourism arises, it’s hard to resist the temptation of making a tongue in cheek reference to the various stereotypes involving Chinese tourists who obsessively take pictures of various landmarks. Behind those stereotypes, however, lie numbers which paint a remarkably clear picture: there is a tremendous amount of money on the

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28
Jul

(Why) Do China and Pakistan Have a Strong Relationship?

Right from the beginning of China’s post-1949 journey, Pakistan was among the first batch of nations who ended their diplomatic relationships with the Republic of China and, instead, established a new relationship with the People’s Republic of China (for more information, read our article about the China – Taiwan relationship). Since then, China has been

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27
Jul

China and North Korea: Pragmatism vs. Alliance?

Scenarios abound when it comes to the politico-economic relationship between China and North Korea. Right from the beginning, it’s worth noting that a relationship of SOME nature is inevitable in light of the fact that the two nations share border that exceeds 1,400 kilometers. Even between neighbors with less than peaceful coexistence track records (not

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22
Jul

Is China One Huge Economic Bubble?

Whenever one comes across headlines such as those about China consuming more cement in two years than the United States throughout the entire 20th century, there’s a natural tendency to raise an eyebrow and wonder how sustainable China’s growth can be considered or even more so, if the entire construction isn’t actually just one huge

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22
Jul

China’s Puzzling Contrast: Poverty Reduction vs. Inequality Increase

It goes without saying that China’s impressive post-1978 economic growth came with a more than significant poverty reduction. As inflation-adjusted income went up, the percentage of individuals living under the $1.9 per day poverty threshold plummeted, from almost 90% in the early 80s to low single digits today. However, a distinction needs to made between

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21
Jul

China’s Retail Sales, Disposable Personal Income and Consumer Spending – Metrics for a Transitioning Economy

Perhaps the number one mistake analysts tend to make when trying to understand China’s economy pertains to simply acknowledging certain facts in a superficial, quasi-axiomatic manner. They read the right charts, draw the right conclusions but don’t internalize the importance of the mega-trends they’ve just been exposed to. If you ask them about China’s infrastructure,

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21
Jul

The Cold War from a Chinese Perspective?

Words cannot begin to describe how important the difference between “getting” and “not getting” China is for an investor or potential investor. The difference between a superficial headline-based perspective on China which revolves around “facts” that are either incorrect or dated and a perspective based on a meaningful understanding of China’s past and present. And,

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