Newsletters

China In Touch, 5 June 2019, Issue 254

We need to look beyond the outrage and indignation created by President Trumps Executive order effectively banning US companies from doing business with Huawei. If we focus only on indignation about Huawei, then we allow a leaf to obscure the view of Mount Tai as the saying goes. Important as Huawei is, there are much bigger issues at stake for Chinas trade and investment. The Executive order follows the precedent set when President Trump used vague security grounds to unilaterally impose tariffs on steel.

 

China In Touch, 22 May 2019, Issue 253

President Trumps pressure has enabled Premier Li Keqiang to progress a number of opening-up measures that had been previously blocked or slowed by hardliners. It has also speeded up modification and implementation of the Belt and Road Initiatives. What does this have to so with the Northern Territory? Quite a lot as it turns out. This is seen most clearly in market substitution. Australian wheat exports have collapsed 50% as they have been supplanted by wheat from the far side of Central Asia. Improved agricultural techniques coupled with access to BRI fast rail means this wheat is delivered faster and cheaper than Australian wheat. Where you can grow wheat, you can also grow soybeans so there is no absolute need to increase imports from the US.

 

 

China In Touch, 8 May 2019, Issue 252

The Belt and Road Initiative captures a number of policies initiatives. Amongst others, they include infrastructure builds, social objectives, poverty alleviation, trade facilitation, capital market reform and the development of IT and AI.  The BRI represents the transformation of China from a regional into a global power. The initiatives in the areas of finance, currency, trade and security are meant to provide China with alternatives and so reduce its dependency on the current order without reducing its support for the current order.  

 

China In Touch, 24 April 2019, Issue 251

Where do I allocate my long-term investment capital to maximise growth? Globalisation offered many opportunities and a means to diversify risk. It made sense to allocate funds to US markets and to the fast-rising Chinese markets. I, like many others, allocated investment capital to companies that did business with China, to companies that depended on China production for their success, to Chinese companies that were moving into international markets and to companies that befitted from Chinese growth. Some may argue that many investors are overweight China and that is now potentially a problem.

 

 

China In Touch, 10 April 2019, Issue 250

It is often suggested that the Opium wars continue to shape Chinas view of the current world. After an eye-roll, many dismiss this as evidence that China needs to move on from the ‘Century of humiliation’ and deal with the real world of the 21st century.The Opium wars took place in 1839-1860. The period of opening up the West in the United States took place around 1865-85. This period, more than any others, plays a central part in American myth making and is glorified in countless Westerns in TV and film. The image of the sheriff meting out rough justice, and gun driven violence, is as closely bound to the American psyche as the Declaration of Independence produced in 1776.