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Macroeconomics

28
Feb

Stagflation Risks in China (and Elsewhere)

Under normal circumstances, whether we are referring to nations that can be considered highly developed based on nominal as well as per capita metrics (the United States and Germany, for example), under-developed nations or countries such as China that lie somewhere in-between (developed in nominal terms, under-developed based on per capita metrics), the relationship between

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27
Feb

Inflation vs. Deflation: Implications for China

Time and time again, those in charge of monetary as well as fiscal policy try to find the right balance between avoiding deflation and not bringing about an inflationary spiral. The more let’s say vulnerable a nation is, the more it can be considered at risk from this perspective. To put it differently, things are

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20
Feb

China and the Eurasian Customs Union (EACU) / Eurasian Economic Union (EEU): From Rhetoric to Substance?

Before reading this article, we would recommend heading over to our post about the economic relationship between Russia and China, a post you can read by clicking HERE. Without reiterating what was already stated in the post in question, an important statement needs to be internalized so as to understand the true nature of the

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18
Feb

(How Much) Would Economic Sanctions Hurt China?

To avoid misunderstandings and make things perfectly clear right from the beginning, this article pertains exclusively to Russia-style sanctions aimed at potentially isolating the Chinese economy. It does not refer to more or less “tit for tat” trade war measures, such as those initiated by trading partners such as the United States and covered extensively

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07
Feb

Understanding the Politburo (and Standing Committee) of the Communist Party of China

Those who believe political leadership structures “sound” too bureaucratic in the West should perhaps sit down before reading up on how things work in China, because the “first contact” moment might be quite shocking. On the other hand, those who grew up in communist or formerly communist nations (yours truly, for example, who grew up

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06
Feb

What Investors Should Know About Li Keqiang, the Premier of the State Council

While we have frequently referred to Xi Jinping, the President of the People’s Republic of China and its de facto paramount leader, we need to understand that there are other key individuals who deserve our attention. Perhaps a textbook example to that effect is represented by Zhou Enlai, a character who has played a very

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30
Jan

Overseas Chinese and Their Economic Impact: Weaponizing China’s Diaspora?

Everything’s big in… not Texas, but rather China. Here on ChinaFund.com, we have referred to more than enough metrics which indicate just that, whether it’s China’s roughly 1.4 billion population, its GDP (#2 worldwide in nominal terms), its dominance with respect to a wide range of industries/dimensions, from “usual suspects” such as infrastructure spending to

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15
Jan

Is “Bad Debt” (Only) Piling Up in China?

After the (in)famous Great Recession of 2007-2008, the average observer started paying more and more attention to the banking system. Why? Simply because the Great Recession made it clear that there are visible cracks in the financial system, anything from a quasi-incestuous relationship between the financial system and the banking system to issues pertaining to

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14
Jan

(Why) Does China Devalue Its Currency?

It is difficult to think of a field more affected by hypocrisy than economics and in the spirit of just that, we are convinced most readers are well aware of the fact that China tends to be portrayed as the “monetary bad guy” for devaluing its currency, with many Western counterparts (from government officials to

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13
Jan

Financial Panic(s) in China: Systemic Risk or Tradeable Opportunity?

Whether we are referring to “maturing” jurisdictions such as China or mature ones such as various Western jurisdictions, it is a quasi-axiomatic statement that one cannot have a man-made financial system without occasional financial panics. From bank depositors who are standing in line in a desperate attempt to withdraw while they still can to investors

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