Macroeconomics

29
May

China – UAE (United Arab Emirates) Relations Under the Microscope

Established back in 1984, it should come as any surprise to those familiar with let’s call them geopolitical realities that China – UAE relations have developed in a straightforward and positive manner, with the two pillars of this evolution being represented by the fact that: The trade dimension makes sense, with China for example being

28
May

China and Canada: Human Rights vs. Trade?

Trade with China has represented enough of an interest for Canada that even back in 1961, Canada’s prime minister at that point (John Diefenbaker) granted Canadian farmers access to China’s significant market despite the fact that diplomatic relations had not yet been established. As was the case with pretty much every other nation, diplomatic relations

27
May

The China – Mexico – United States Triangular Relationship: 1/5 of Worldwide Commerce and the Story Behind It

From many perspectives, China and Mexico can be considered competitors, especially when it comes to their goal of securing as much in terms of US market share for their exports as possible. Needless to say, it would be a “bit” of an understatement to point out that Mexico is highly dependent on the United States,

24
May

China and Thailand: A Pillar of ASEAN Stability?

For a very extended period of time, Siam/Thailand managed to figure out ways to effectively preserve its independence, primarily by appeasing the strongest powers of the time. Up until the 1850s, this strategy revolved around appeasing China due to it most definitely being the elephant in the room. As of that point and until the

14
May

Trying to Understand China’s Ever-Enigmatic Local Government Debt (LGD) and Local Government Financing Vehicles (LGFV)

Few topics generate more confusion than the local government debt (or) LGD one, in light of the fact that bookkeeping has been horrendous to such a degree that… well, pretty much nobody can clearly state how much debt we are even talking about, with estimates ranging from 35% to 60% of China’s GDP. At its

13
May

Household Debt in China: A Misunderstood and Underestimated Risk Factor?

We have dedicated an article to explaining what the three main types of debt are when it comes to China, an article to the elephant in the room which is the corporate debt dimension and another article to public debt, which is a boogeyman for countries such as Japan (with its public debt to GDP

12
May

Chinese Assets and Trading Volume: Volatility-Facilitated Opportunities or Recipes for Disaster?

One of the main mistakes made by retail investors revolves around limiting themselves to analyzing price action and assuming that is all there is to it. For example, they see an asset (Chinese or otherwise) which went up continuously for 4 months and assume that this price action is extraordinarily bullish, with FOMO (Fear Of

11
May

Does China Have a Government (Public/National) Debt Problem?

Before continuing, we want to make it clear that this article only refers to government debt, also called public debt or national debt. As such: Household debt is not included Corporate debt is not included For more information on the types of debt that are relevant when analyzing a country, we would strongly recommend reading

10
May

China’s Corporate Debt and Recent Default Fears: From Chinese to Global Threat

As mentioned in another article, there are three main types of debt we need to keep in mind when analyzing a country: household debt (mortgages, personal loans, etc.), corporate debt (corporate loans/bonds) and government debt. Ask the average observer what type of debt he/she is least familiar with and, of course, corporate debt will most

09
May

Is China More Indebted Than Western Nations? (Broad) Types of Debt Explained

You might hear one expert state that China is less indebted than Western nations and then a few minutes later, flip the channel and come across another expert who just as confidently states that China is more indebted than Western nations, with the average observer left scratching his head and assuming this issue is just