Tag: CHINA
-
Global Economic Outlook 2025: China, Dollar, and Commodities
The global economy is like a vast, intricate orchestra where every country plays a unique role in a symphony of commerce and finance. Since the 2008 financial crisis, the conductors of this ensemble central banks have been guiding the tempo with unprecedented tools. They introduced large-scale quantitative easing and near-zero interest rates, hoping to keep…
-
How Chinese CTAs Use AI to Dominate Gold Futures Trading
Chinese Commodity Trading Advisors (CTAs) have vaulted from niche players to market movers thanks to algorithm-driven strategies that scan reams of data and fire orders in milliseconds. Evidence of their growing weight came when just three Chinese brokers moved about 212,000 lots of gold futures on the Shanghai Futures Exchange—almost rivalling the 240,000-lot daily average…
-
China’s Net Share Sale Restrictions Aim to Stabilize Markets
China has introduced daily restrictions on net share sales by hedge funds and large retail investors in a strategic move to stabilize its financial markets. This development is closely tied to the ongoing trade tensions between China and the United States, a conflict that has significantly impacted global economic dynamics and investor sentiment. These restrictions…
-
China Hikes Tariffs on US Goods to 125%, Hints Trade War May Be Nearing a Resolution
China announced it will raise tariffs on all US goods to 125% starting April 12, escalating its response to Washington’s earlier decision to lift tariffs on Chinese imports to 145%. The move, confirmed by the Ministry of Finance on Friday, marks a significant intensification of the trade dispute but also hints that tensions may have…
-
Can China Lower Labor Costs to Offset U.S. Tariffs?
China’s manufacturing strength has long been anchored in its vast labor force, once able to provide low-cost production at massive scale. With rising U.S. tariffs raising the price of Chinese goods abroad, especially in America, it’s natural to ask: could China simply lower labor costs again to remain competitive? On the surface, the idea appears…
-
Using U.S. Treasury Bonds as a Weapon: Why China and the EU Are Unlikely to Pull the Trigger
The ongoing tensions over trade policies and tariffs have raised questions about whether major U.S. bondholders like China and the European Union (EU) might retaliate by selling their U.S. Treasury holdings. At first glance, this might seem like a powerful economic weapon. But a closer look reveals why this move is less threatening than it…
-
How China’s Hands Are Tied and the U.S. Holds the Leverage
China owes the United States approximately $1 trillion in defaulted debt—a staggering figure rooted in a complex historical and legal web few discuss today. This financial obligation dates back to loans issued by the U.S. and the U.K. to the Republic of China (ROC) before 1949, when the ROC was the internationally recognized government. Following…
-
China’s $6.8 Billion Lifeline to Vanke: A Strategic Move to Stabilize the Real Estate Market
China’s real estate sector has been a pillar of the nation’s economic growth for decades. However, mounting debt, slowing sales, and the ripple effects of the Evergrande crisis have placed unprecedented stress on the industry. In a bid to prevent another major collapse, Beijing is stepping in with a 50 billion yuan ($6.8 billion) financial…
-
Apple vs. China: A Power Struggle That Could Change Everything
Apple’s relationship with China is entering uncertain territory as regulators in Beijing consider a formal probe into the tech giant’s App Store policies. The scrutiny is focused on Apple’s commission fees—reaching up to 30% on in-app purchases—and restrictions on third-party payment systems and alternative app stores. The State Administration for Market Regulation (SAMR) is leading…
-
SHIPS for America Act: Rebuilding U.S. Maritime Power to Rival China’s Fleet
The SHIPS for America Act, introduced on December 19, 2024, aims to revitalize the U.S. shipbuilding and commercial maritime industries. It addresses concerns over the declining U.S. shipbuilding capacity, the shrinking U.S.-flagged commercial fleet, and reduced military support capabilities, particularly in comparison to China’s expanding maritime dominance. A National Maritime Strategy is proposed, featuring the…