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As well as providing fresh news reports every day, AmericanEconomicAlert.org offers a uniques news rating system. Each news item below has been given a rating from 1 to 5 stars, depending on its importance and relevance to U.S. international economic and trade policy.
 

Friday, November 21, 2014
NSA Says Chinese Cyber Attacks Could Shut Down U.S. Infrastructure
Time

• Comment: "At a hearing of the House intelligence committee, Rogers said U.S. adversaries are performing electronic “reconnaissance” on a regular basis so that they can be in a position to disrupt the industrial control systems that run everything from chemical facilities to water treatment plants."

Thursday, November 20, 2014
Panel predicts China will keep confronting US
Fox News

• Comment: "Shea said the trip improved the atmospherics between the U.S. and China, but fundamental problems remain. He cited continuing Chinese state-sponsored cyberespionage; an increasingly hostile environment for U.S. business in China; and Chinese military modernization aimed at least in part at countering the U.S. military in the Pacific."
U.S. Congress urged to consider sanctions on Chinese cyber-spies
Reuters

• Comment: "Congress should ask U.S. trade officials to report on whether they had power to sanction companies that benefited from stealing trade secrets, the U.S.-China Economic and Security Review Commission said in its annual report to Congress."

Wednesday, November 19, 2014

Tuesday, November 18, 2014
Beijing crackdown fails to stem inflated invoicing on exports
South China Morning Post

• Comment: "Export growth was somewhat inflated by over-invoicing. [The mainland's] exports to Hong Kong, a segment where over-invoicing is typically most pronounced, rose 24 per cent year on year [last month], following a 34 per cent increase in September," said Shen Jianguang, an economist at Mizuho Securities Asia. "It's most likely related to exports of jewellery and precious metals."

Monday, November 17, 2014

Sunday, November 16, 2014
In veiled message to China, Obama renews commitment to Asia-Pacific pivot
Reuters

• Comment: "Obama, who visited Beijing for an Asia-Pacific summit this week and held talks with President Xi Jinping, sought to show renewed resolve for the U.S. "pivot" to the region, involving military, diplomatic and economic assets. The policy is widely seen as intended to counter China’s rising influence."

Saturday, November 15, 2014

Wednesday, November 12, 2014
China hacks into U.S. weather satellite network
USA Today

• Comment: "The Chinese may not have been trying to acquire specific data in either attack but could have been looking for a way into U.S. computer systems to see how unclassified portions of the U.S. government function, said Edward Ferrara, an analyst with technology research firm Forrester."
Fruitful Visit by Obama Ends With a Lecture From Xi
New York Times

• Comment: "Discarding his standard bromides about the importance of new “major-country” relations between the United States and China, the Chinese leader delivered an old-fashioned lecture. He warned foreign governments not to meddle in the pro-democracy movement in Hong Kong and foreign journalists to obey the law in China."
Why You Should Care About Obscure Asian Trade Pacts
Time

• Comment: "Meanwhile, Washington is advocating a rival trade deal, the Trans-Pacific Partnership (TPP), a 12-nation agreement that includes countries as far-flung as Japan and Chile — but, most importantly, excludes China. The U.S. sees the TPP as a way of redirecting trade towards America, while pressuring China to eventually conform to more market-oriented trade and business practices. Obama on Monday said that he saw “momentum building” towards the completion of the TPP."
Obama, Chinese President Xi downplay disagreements at joint news conference
Fox News

• Comment: "Obama's domestic political weakness, particularly following the Democrats' defeats in last week's midterm elections, has also sparked questions in China about whether the U.S. president can deliver on potential international agreements. In the days leading up to Obama's visit, a newspaper with ties to the Chinese government said the American public had "downgraded" Obama and grown tired of his "banality."
U.S. and China Reach Climate Accord After Months of Talks
New York Times

• Comment: "The landmark agreement, jointly announced here by President Obama and President Xi Jinping, includes new targets for carbon emissions reductions by the United States and a first-ever commitment by China to stop its emissions from growing by 2030."

Tuesday, November 11, 2014
U.S. and China Reach Agreement on Climate After Secret Negotiations
New York Times

• Comment: "The landmark agreement, jointly announced here by President Obama and President Xi Jinping, includes new targets for carbon emissions reductions by the United States and a first-ever commitment by China to stop its emissions from growing by 2030."
Seeking Meaningful U.S./China Trade Reform
Real Clear Markets

• Comment: "In the roughly 15 years since the United States normalized trade relations with China, we have faced a surge of Chinese imports and chronic overcapacity in Chinese industries (like steel); we've watched promises made by China's communist government to remove itself from the business of state-owned enterprises go unfilled (turns out these communists are wonderful capitalists); and we've dutifully (and quietly) noted that appreciation of the still-undervalued renminbi has essentially stalled. Consequentially, we've also watched millions of once-middle class American jobs relocate to Asia."

Monday, November 10, 2014
In Beijing, Obama cautiously confronts a rising China
Christian Science Monitor

• Comment: "Obama, on the other hand, is out to demonstrate that his administration’s “rebalance” of US interests in Asia is on track – including the extension of American values such as political and economic freedoms across the region. The US has tried to do this without feeding China’s suspicions that the “Asia pivot” is really about containing China."
Obama touts new China visa deal as way to create U.S. jobs
USA Today

• Comment: "If South Korean officials shared that apprehension they were able to set it aside Monday, as South Korea's presidential office announced a free trade deal with China to remove tariffs on more than 90% of goods over 20 years."
Obama Arrives in China on Trip With Complex Agenda
New York Times

• Comment: "Later on Monday, Mr. Obama was to speak to business executives from that group, the Asia-Pacific Economic Cooperation forum. He will also meet leaders from 11 countries involved in trying to create the Trans-Pacific Partnership, an ambitious American-led trade pact that would be a central pillar of Mr. Obama’s “strategic pivot” to Asia."

Sunday, November 09, 2014

Saturday, November 08, 2014

Wednesday, October 29, 2014

Tuesday, October 28, 2014
China Fake Invoice Evidence Mounts as Hong Kong Figures Diverge
Bloomberg

• Comment: "China recorded $1.56 of exports to Hong Kong last month for every $1 in imports Hong Kong registered, leading to a $13.5 billion difference, according to government data compiled by Bloomberg. Hong Kong’s imports from China climbed 5.5 percent from a year earlier to $24.1 billion, figures showed yesterday; China’s exports to Hong Kong surged 34 percent to $37.6 billion, according to mainland data on Oct. 13."

Thursday, October 23, 2014

Wednesday, October 22, 2014
China iCloud Attack Could Be State-Sponsored Hacking
Time

• Comment: "GreatFire said the hackers involved with the iCloud breaches used servers accessible by only state-run organizations and Chinese authorities, a sign the attacks had the blessing of such authorities. The hack came just as the iPhone 6 was released in China after a delay over the government’s security firms."

Sunday, October 19, 2014
What China Means by ‘Rule of Law’
New York Times

• Comment: "This is not to say that China is about to abandon its preoccupation with “social stability,” which too often means silencing or imprisoning peaceful dissenters and activists who blow the whistle on some of the country’s many woes, including environmental degradation, abuses of power and needless policies against Tibetans and Uighurs."

Friday, October 17, 2014
Business leaders call for completion of China investment treaty
The Hill

• Comment: "More than 50 business leaders on Wednesday called on President Obama to make the completion of a bilateral investment treaty the focus of meetings next month in China. The 51 U.S. chief executives sent a letter to the White House supporting a bilateral investment treaty (BIT) and asking the president to make such discussions a high priority with China's President Xi Jinping in November."
Crony Communism in China
New York Times

• Comment: "Unscrupulous officials have been stealing more since the early 1990s thanks partly to a large increase in infrastructure spending. Lucrative contracts for roads, ports and railways are opportunities for them to enrich themselves or their cronies. Investment in infrastructure, real estate and other fixed assets rose from an average of 36 percent of G.D.P. during 1980-1991 to more than 41 percent during 1992-2011."

Thursday, October 16, 2014
Inside the Ring: Chinese Company Tried to Beat NSA at Its Own Game
Washington Free Beacon

• Comment: "Chinese telecommunications equipment giant Huawei Technologies sought to gain access to National Security Agency computer networks this year in a failed cyberespionage attack, U.S. officials said."

Wednesday, October 15, 2014
China’s Dangerous Game
The Atlantic

• Comment: "China’s expansion has long been expected. Many observers have said a new cold war, in which a rising China gradually seeks to push the U.S. military out of the western Pacific, is inevitable."

Tuesday, October 14, 2014
U.S. Concerned About Sale of Waldorf Hotel to Chinese Insurance Company
Washington Free Beacon

• Comment: "U.S. officials said Monday they are reviewing the Oct. 6 purchase of the Waldorf by the Beijing-based Anbang Insurance Group, which bought the hotel from Hilton Worldwide for $1.95 billion. Terms of the sale allow Hilton to run the hotel for the next 100 years and call for “a major renovation” that officials say has raised eyebrows in Washington, where fears of Chinese eavesdropping and cyber espionage run high."
Fake Invoice Doubts Revived as China Trade Skyrockets
Bloomberg

• Comment: "A discrepancy between Hong Kong data for imports from China and Chinese figures for exports to the city in the past highlighted the practice of over-invoicing that’s used to disguise capital inflows to bet on China’s rising currency."

Monday, October 13, 2014
Russia signs deals with China to help weather sanctions
Reuters

• Comment: "China, which has 32 percent of its $4 trillion foreign exchange reserves invested in U.S. government debt, would like to cap its vulnerabilities to any fluctuations in the dollar in the near term. Over the longer term, it wants to increase the yuan's clout and turn it into a global reserve currency."

Sunday, October 12, 2014
Foxconn Workers Strike at China Factory
Industry Week

• Comment: "The labor watchdog claimed that Foxconn compelled workers into quitting rather than laying them off and paying severance fees by significantly reducing workers' overtime hours, which generated a large portion of their wages."

Saturday, October 11, 2014
Getting Real About China
New York Times

• Comment: “We can see your stealth aircraft”; “we have our own GPS and can shoot down yours”; “we know your technologies from all your companies and from NASA, because Chinese scientists work these for you”; “you will not have any military relations with the Philippines unless we allow it, because China provides them $3.5 billion per month in remittances through Hong Kong”; “Chinese shipyards are working 24 hours a day, seven days a week”; “more than 30 ships were launched between October 2012 and April 2013”; “by 2019 China will have four aircraft carriers deployed.”

Friday, October 10, 2014
Not Just The Largest Economy – Here Are 26 Other Ways China Has Surpassed America
Zero Hedge

• Comment: "During 2013, we sold about 121 billion dollars worth of stuff to the Chinese, but they sold about 440 billion dollars worth of stuff to us. That was the largest trade deficit that one nation has had with another nation in the history of the world."

Wednesday, October 08, 2014
Why China will unseat US as world's largest economy by year's end
Christian Science Monitor

• Comment: "China has surpassed the US faster than many forecasters expected – a testament to China's shrewd capitalization on trade opportunities, as well as to the way steady growth in China has contrasted with America’s weak performance after the Great Recession of 2007 to 2009."

Thursday, September 25, 2014
In China, Steel Consumption Drops as Economy Slows
New York Times

• Comment: "The consumption dropped 0.3 percent, to 500 million metric tons, in the first eight months of the year compared with a year ago, Wang Xiaoqi, vice chairman of the China Iron and Steel Association, said during an industry conference Thursday."

Tuesday, September 23, 2014
U.S. lowers final import duties on MSG from China
Reuters

• Comment: "Under the final ruling, MSG imports from China, including from Meihua Holdings Group, face anti-dumping duties of 8.3 percent, revised from a preliminary decision of just over 52 percent. MSG imports from Indonesia face a margin of 6.19 percent, slightly higher than the preliminary decision."

Monday, September 22, 2014

Thursday, September 18, 2014
Chinese Hacked U.S. Military Contractors, Senate Panel Finds
Washington Free Beacon

• Comment: "Hackers associated with the Chinese government have repeatedly infiltrated the computer systems of U.S. airlines, technology companies and other contractors involved in the movement of U.S. troops and military equipment, a U.S. Senate panel has found."

Wednesday, September 17, 2014

Tuesday, September 16, 2014
China Tells Domestic Companies -- Go Make Overseas Acquisitions
Industry Week

• Comment: "China has been actively acquiring foreign assets, particularly energy and resources, to power its economy, with firms encouraged to "go out" and make overseas acquisitions to gain market access and international experience. Officials have said overseas direct investment (ODI) could exceed FDI this year."

Sunday, September 14, 2014

Thursday, September 11, 2014
China Steps Up Defense of Probes as Foreign Businesses Complain
Bloomberg

• Comment: "Pressure has been building on Chinese authorities to respond after probes of global companies drew protests in the past month from European and U.S. trade groups, warning that such scrutiny was undermining the country’s appeal. As the world’s second-largest economy slows, Li sought to counter such concerns this week by pledging to improve conditions for attracting foreign investment."

Tuesday, September 09, 2014
Trial of Chinese Human Rights Campaigner Is to Begin
New York Times

• Comment: "But since last year, Mr. Xi has overseen a concerted drive against organized dissent, and many of Mr. Yang’s allies have already been imprisoned, including Xu Zhiyong, a law lecturer in Beijing who helped organize a so-called New Citizens Movement to demand expanded rights and greater government accountability. The police in Guangzhou detained Mr. Yang last month."

Monday, September 08, 2014
China’s Trade Surplus Hits $49. 8 Billion, But Worry over Import Decline
Industry Week

• Comment: "The surplus surged 77.8% year-on-year to beat the previous all-time high of $47.3 billion set in July and easily pass the median forecast of $42 billion."

Thursday, September 04, 2014

Wednesday, September 03, 2014
Obama adviser will travel to China
USA Today

• Comment: "Rice "will underscore the United States' commitment to building a productive relationship between our two countries in advance of the President's visit to China in November," Hayden said."
Western Companies Appear to Push Back Against Chinese Crackdown
New York Times

• Comment: “For American businesses operating in China, China’s A.M.L. regime is creating more questions than answers,” John Frisbie, the president of the Washington-based council, said in a news release, referring to the antimonopoly law. “Will China use the A.M.L. to protect its domestic industry rather than promote fair competition? Is the Chinese government using the A.M.L. to force lower prices, rather than letting the ‘market play the decisive role’ as enshrined in China’s new economic reform program?”

Sunday, August 31, 2014

Wednesday, August 27, 2014
Gift-Bearing Officials Try to Lure Chinese Factories Inland
New York Times

• Comment: "When some of the executives expressed concern about moving costs, the answer came immediately. “The government in Chongqing said, ‘Don’t worry. If you agree to move your factory to Chongqing, I’ll pay your moving costs,’ ” Mr. Lau said, adding that at least 10 watch factories were already preparing to move."

Thursday, August 14, 2014
China Appears Ready to Dump its U.S. Treasury Bonds
American Thinker

• Comment: "The secret to China’s spectacular growth beginning in the early 1990s was devaluing its currency to the U.S. dollar from 2.8 Chinese yuan to 8.7 yuan. The devaluation cut the cost of Chinese labor by -68% and launched the cheap labor manufacturing boom. Exports as a percent of GDP grew from about 13% in 1994 to 39% of GDP in 2007."

Wednesday, August 13, 2014
China criticizes Obama for 'free riders' comment
USA Today

• Comment: "The editorial criticized the United States for 'brazenly launching a war to topple the Iraqi government' in 2003, a move China opposed, and causing the country to descend into 'chaos' for years to follow. China, on the other hand, has played a peaceful and cooperative role in the country, the article said, citing the humanitarian assistance it has provided over the years."

Tuesday, August 12, 2014
China Probes Threaten to Squeeze Foreign Profits
Bloomberg

• Comment: “We may be seeing a paradigm shift where the rules of the game are changing,” said David Loevinger, former U.S. Treasury Department senior coordinator for China affairs and now an analyst at TCW Group Inc. in Los Angeles. “Until people figure out the new rules it will create a much more uncertain business climate.”

Monday, August 11, 2014
Johnson Controls forms fabrics joint venture in China
Milwaukee Business Journal

• Comment: "Further entrenching itself in China, Johnson Controls Inc., which makes batteries, automotive interiors and HVAC equipment, will form a new fabrics joint venture with Shanghai Yanfeng Industry and Commerce Co. Ltd. and Anhui Yansheng Automotive Trim Co. Ltd."

Sunday, August 10, 2014
China Loosens Monetary Conditions in Test of Credit Power
Bloomberg

• Comment: "Each $1 in new credit added the equivalent of an extra 20 cents in GDP in the first half of 2014, according to data compiled by Bloomberg. That compares with 29 cents in full-year 2012 and 2013 and 83 cents in 2007, when global money markets began to freeze."
China’s Energetic Enforcement of Antitrust Rules Alarms Foreign Firms
New York Times

• Comment: "Chinese regulators appear to be energetically expanding enforcement of the antimonopoly law, and foreign companies fear that they could become easy targets for officials from an array of competing agencies and local governments aiming to impress President Xi Jinping, the Communist Party leader who has promoted visions of patriotic resurgence and technological pre-eminence."

Thursday, August 07, 2014
Peak China
American Thinker

• Comment: "Chinese steel production has risen from 10 million tons per month in 2000 to the current rate of 70 million tons per month. If we use the data in a logistic decline plot, the data since 2006 does plot as a straight line suggesting that it is reflecting depletion of a finite resource "

Sunday, August 03, 2014
The War of Words in China
New York Times

• Comment: "Although there is no proof that the Chinese government was behind my Wikipedia page, the Communist Party is known to employ vast numbers of freelance propagandists who “guide public opinion” through social media or in the online comment sections of articles. Earlier this month, the advocacy group Free Tibet uncovered about 100 bogus Twitter accounts that used purloined photos of white people to tweet syrupy stories about contented Tibetans — ignoring the reality of those who are self-immolating to protest Beijing’s hard-line policies."

Friday, August 01, 2014
Chinese company hires influential Virginia lawmaker, gets sanctions lifted
Fox News

• Comment: "It pays for a Chinese company to hire an influential state lawmaker, and vice-versa. In April 2013, a Chinese company closed a $1.2 million contract with lawyer and state delegate Terry Kilgore to protect its interests in building a Virginia Beach arena and to help lift sanctions imposed on the company by the Bush administration in 2002, according to a contract between the two parties obtained by Watchdog.org"

Wednesday, July 30, 2014
China Investigating Microsoft for ‘Monopolistic Behavior’
New York Times

• Comment: "The Chinese government announced that Microsoft faced investigation for possible violations of antimonopoly laws, and confirmed that officials had conducted surprise visits to the company’s offices across the country, a statement released late Tuesday said."

Monday, July 28, 2014
China Removes Crosses From Two More Churches in Crackdown
New York Times

• Comment: "Church leaders and analysts say the battle in Zhejiang, one of China’s wealthiest provinces, highlights the Chinese leadership’s discomfort with the growing allure of Christianity, whose adherents are said to rival in number the 86 million members of the Communist Party. The crackdown on Christianity in Zhejiang also coincides with a nationwide campaign that has been directed at legal rights defenders, pro-democracy advocates and liberal online commentators."

Thursday, July 24, 2014
China’s Manufacturing Sector Expands at Swifter Pace
New York Times

• Comment: "A subindex measuring new orders, a gauge of demand at home and abroad, hit an 18-month high of 53.7, while the subindex for output also rose to a 16-month high in June. The employment index also improved from May, though it was still slightly under 50, which implies that jobs were still being lost in the manufacturing sector."

Tuesday, July 22, 2014
Insiders worry China's stimulus focus delays reform drive
Reuters

• Comment: "Policy insiders are concerned that China's ambitious reform agenda is being sidelined by a focus on stimulus to meet the government's growth target, delaying the planned overhaul of the world's second-largest economy."
Taking Back America: Here, Finally, Is A Chinese Mega-Blooper -- And A Chance For The U.S. To Turn The Tables
Forbes

• Comment: "What is clear is that universities that have signed on to Beijing’s agenda have much to be ashamed about. For a start there is the fact that contracts establishing Confucius Institutes are almost invariably secret — Beijing insists on it and, in direct contravention of the American spirit of openness, countless U.S. universities have acquiesced."
U.S. trade expert on China: Look for export opportunities, 'watch your back'
Puget Sound Business Journal

• Comment: "In the interview, Reade said there is potential for new markets because of what she called very real signs of change in China’s protection of intellectual property rights. Washington tech companies have avoided China for many years due to lack of enforcement of laws protecting intellectual property."

Sunday, July 20, 2014

Friday, July 18, 2014
A not-so-private plan: Virginia Beach taxpayers fund deal with Chinese
Fox News

• Comment: "The 50,000-square-foot facility will cost an estimated $200 million, but that doesn’t include other costs paid by Virginia Beach, an additional $10 million for other costs, or the land the city is contributing to the deal."

Thursday, July 17, 2014

Tuesday, July 15, 2014
Chinese Hackers Extending Reach to Smaller U.S. Agencies, Officials Say
New York Times

• Comment: "It is not clear whether the hackers were operating on behalf of the Chinese government. But the sophisticated nature of the attacks has led some American officials to believe that the government, which often conducts cyberattacks through the military or proxies, played a role."

Monday, July 14, 2014

Saturday, July 12, 2014
Chinese Businessman Is Charged in Plot to Steal U.S. Military Data
New York Times

• Comment: "A Chinese businessman in Canada hacked into Boeing’s computers and stole information about United States military aircraft and weapons, the Justice Department said on Friday, describing a corporate espionage case that is unusual for the huge amount of data involved."

Friday, July 11, 2014
John Kerry In Beijing: Four Good Reasons Why The Chinese View American Leaders As Empty Suits
Forbes

• Comment: "As for U.S. manufacturers, they have long since stopped thinking in national terms. Led by Ford and General Motors, they see no alternative but to cooperate with Beijing’s technology transfer agenda. After all they would get no support from Washington if they were to resist Beijing’s demands. Meanwhile if they go along with Beijing’s demands, they might earn some brownie points with the new superpower."

Thursday, July 10, 2014
U.S., China try to emphasize potential for cooperation
Washington Post

• Comment: "Raising another long-standing bone of contention, Treasury Secretary Jack Lew said it is “crucial” for China to move to a “market-determined exchange rate” as it attempts to rebalance, reform and reinvigorate its economy. The United States has long argued that China’s currency, the yuan, is undervalued, giving Chinese exports an unfair advantage in global markets and exacerbating a trade deficit with the United States."
Kerry says some progress after U.S.-China meeting
USA Today

• Comment: 'Lew said China is also preparing to increase transparency of its currency policy, "which will accelerate moves to a more market-based exchange rate." Such commitments "will help level the playing field," he said Thursday."
U.S.: Chinese hacked federal employee files
USA Today

• Comment: "The Chinese hackers, using military and intelligence resources in Shanghai, downloaded massive amounts of industrial information, including strategic plans, from U.S. businesses, the indictment said. The indictment, out of western Pennsylvania, charges five military "hackers," officers in the Chinese People's Liberation Army, with directing a conspiracy to steal information from six American companies in critical industries, including nuclear power, solar power and metals."
China, U.S. say committed to managing differences
Reuters

• Comment: "Chinese Finance Minister Lou Jiwei defended the country's currency interventions, saying it was difficult to take a hands-off approach when it came to the yuan, given an unsteady economy and abnormal capital inflows."

Wednesday, July 09, 2014
U.S., China begin high-level talks on tough issues
USA Today

• Comment: "China's Communist Party leader Xi Jinping and U.S. Secretary of State John Kerry vowed better economic and security cooperation Wednesday as the two countries held the latest in a series of talks designed to improve their often difficult relationship."
U.S., China ink coal, clean energy deals but climate differences remain
Reuters

• Comment: "The issue remains a major stumbling-block in talks on a new global accord, with the United States and others reluctant to commit funds. Stern, the U.S. climate negotiator, said the United States didn't disagree with China that there should be a differentiation in responsibilities between developing and developed countries, but that using old definitions for those labels established in 1992 was a sticking point."

Tuesday, July 08, 2014
China’s rise and Asian tensions send U.S. relations into downward spiral
Washington Post

• Comment: "Some critics say that the United States should have been more assertive in forging closer economic links with Asia through a Trans-Pacific Partnership trade deal and with China through a bilateral investment treaty."
Is America's China strategy failing?
Fortune

• Comment: "Just as important, American business is now showing signs of souring on China itself. More and more complain openly about stolen business secrets and Chinese policies that blatantly favor local competitors."

Thursday, July 03, 2014
China urges U.S. to be more objective ahead of key meeting
Reuters

• Comment: "Xi, speaking to former U.S. Treasury Secretary Henry Paulson ahead of next week's China-U.S. Strategic and Economic Dialogue, said he hoped both countries could use such gatherings to keep "injecting positive energy" into the relationship."

Tuesday, July 01, 2014
Chinese Manufacturing Expansion Hits 6-Month High
New York Times

• Comment: "The measures have included lowering the reserve requirement for more banks in an attempt to increase lending, raising the scale of relending and bond financing to support smaller companies, and a further reduction in administrative fees for businesses."

Monday, June 30, 2014

Friday, June 27, 2014

Thursday, June 26, 2014
Why Are We Importing Our Own Fish?
New York Times

• Comment: 'The seafood industry, it turns out, is a great example of the swaps, delete-and-replace maneuvers and other mechanisms that define so much of the outsourced American economy; you can find similar, seemingly inefficient phenomena in everything from textiles to technology. The difference with seafood, though, is that we’re talking about the destruction and outsourcing of the very ecological infrastructure that underpins the health of our coasts. Let’s walk through these illogical arrangements, course by course."
U.S. Treasury says reaches foreign tax law pact with China
Reuters

• Comment: "Foreign firms that do not comply face a 30 percent withholding tax on their U.S. investment income and could effectively be frozen out of U.S. capital markets."

Monday, June 23, 2014
China PBOC Injects Net CNY15 Bln; Sixth Injection In A Row
MNI

• Comment: "The People's Bank of China made a net injection of funds for the sixth week in a row, allowing CNY15 billion to flow back into the interbank market."
China Manufacturing Hits 7-Month High
New York Times

• Comment: "Although China’s overall economic growth continues to decelerate to its slowest pace in more than a decade, the new data suggest manufacturing may be a pocket of resilience. The preliminary June survey result was bolstered by gains in the level of production and in new orders — the latter being a sign of stronger growth in the coming weeks and months."

Sunday, June 22, 2014
As LED Industry Evolves, China Elbows Ahead
New York Times

• Comment: "For some in the United States, the Chinese expansion has uncomfortable echoes of the solar panel and wind turbine industries, in which China went from a bit player to global leader through a combination of extensive government subsidies and low-interest loans from state-owned banks."

Saturday, June 21, 2014
Closer Look: Xi's Leadership of Top Economic Group Follows Pattern
Caixin

• Comment: "The news that Xi was atop this group took some people by surprise. As the top figure in the party, Xi already wears multiple hats. He heads the leadership groups for deepening reform, Internet security and information, and the national security commission. The news indicates the man who already enjoys the most political power granted by the constitution also presides over several vital fields, ranging from national security and foreign affairs to social management and economics."
Blasting the Communist Party line in rural China
USA Today

• Comment: "Building socialist core values is everyone's common responsibility," barks a radio broadcast from public loudspeakers installed this spring for a nationwide campaign to blast the party's voice into every rural home.'

Thursday, June 19, 2014
China Clamps Down on Critical Reporting
Businessweek

• Comment: "The journalists have always faced the risk of going to jail for writing a story perceived as challenging party control in any way (32 writers behind bars as of the end of last year, according to the Committee to Protect Journalists). Moreover, Chinese authorities have lately been harassing and locking up the kind of activist rights lawyers who might be willing to represent independent-minded journalists who run afoul of the authorities."
Chinese Government Tightens Constraints on Press Freedom
New York Times

• Comment: "Reporters in China must now seek permission from their employers before undertaking “critical reports” and are barred from setting up their own websites, the State Administration of Press, Publication, Radio, Film and Television announced in new rules Wednesday."

Monday, June 16, 2014
As LED Industry Evolves, China Elbows Ahead
New York Times

• Comment: "Now demand is surging, and the Chinese manufacturers suddenly find their factories running at full tilt, churning out LEDs faster and cheaper than global rivals. With a price war underway, the Chinese are taking share from top players in the United States, Europe and Japan, the industry pioneers that made crucial technological breakthroughs, and from Taiwan and South Korea, previously the leaders in low-priced LEDs".
China's fine-tuning adds up to stimulus by stealth
Reuters

• Comment: "Instead, the People's Bank of China (PBOC) has relied on four low-key adjustments that have added a total of 550 billion yuan ($88 billion) into the banking system, a calculation based on a Reuters poll and information from sources shows. That is equivalent to an economy-wide 50 basis point cut in the reserve requirement ratio (RRR), the level of reserves that banks must hold, a splashier move which would also have released 550 billion yuan in one stroke."
China Surpasses U.S. as Largest Corporate Debt Issuer
New York Times

• Comment: “This means that as much as 10 percent of global corporate debt is exposed to the risk of a contraction in China’s informal banking sector,” the S.&P. analysts wrote in their report. They estimate China’s shadow banking sector debt at $4 trillion to $5 trillion."

Saturday, June 14, 2014
UglyGorilla Hack of U.S. Utility Exposes Cyberwar Threat
Bloomberg

• Comment: “This is as big a national security threat as I have ever seen in the history of this country that we are not prepared for,” said Representative Mike Rogers, a Michigan Republican and chairman of the House intelligence committee, who agreed to talk about the attacks in general terms but declined to discuss specific incidents. “Your palms get a little sweaty thinking about what the outcome of those attacks might have been and how close they actually came.”

Thursday, June 12, 2014
Is a Declining U.S. Good for China?
China File

• Comment: "Among the risks for China is the thinking that—beginning with the conclusion that the U.S. is on a path of decline—the time has come for China to design domestic political and economic policies in a purportedly unique Chinese way. China’s top leadership is correct to remind the country that reform is a never-ending process. As to how to reform, China can benefit from learning from the United States. What can come across as American pressure or seemingly excessive demands ought not be dismissed as unwanted intrusion. Chinese analysts can do their country better service by admitting publicly that policy ideas from the United States—not just finance or export opportunities—have contributed positively to China’s current prosperity."
Missing Collateral a Sign of Weakness in China’s Financing Chains
New York Times

• Comment: "Imaginary collateral, though, is a deeper problem. Steel traders also backed multiple loans with the same piles of metal in 2012. In a different riff on the same theme, the timber company Sino-Forest came under attack in 2011 from short-sellers for fabricating the trees that made up its main asset. Foreign banks can find themselves exposed because cargo owners use collateral to obtain cheaper overseas loans, and invest at higher returns in China. The problems in Qingdao suggest the banks have failed to learn their lesson."
Banks Fear Missing Collateral In China
New York Times

• Comment: "The case could have broad repercussions for the commodities market and the Chinese economy. Banks have funneled billions of dollars into the Chinese economy through these murky transactions, and commodities prices have been falling over concerns that the lending will dry up."

Tuesday, June 10, 2014
Chinese firm reportedly cost California taxpayers millions extra for spotty bridge work
Fox News

• Comment: "The Sacramento Bee reported Saturday that based on its review of more than 100,000 pages of construction records, Zhenhua Port Machinery not only lacked experience but was unable to make key decisions that led to millions of dollars being wasted on the project. The company also reportedly delivered a bridge replete with cracked welds."

Monday, June 09, 2014
Bay Bridge’s troubled China connection
Sacremento Bee

• Comment: "But Caltrans’ decision to hire an inexperienced Chinese company, unaccustomed to the rigor of American construction rules, to fabricate the suspension span’s signature tower and roadway partly explains why costs ballooned to $6.5 billion and misgivings persist about the quality of the bridge. Caltrans continued to bet on ZPMC by relaxing U.S. standards when the firm couldn’t finish fast enough."
China’s Export Gains to Cushion Growth as Imports Slump
Bloomberg

• Comment: "China’s exports rose more than analysts estimated in May, helping to cushion the world’s second-biggest economy from a deeper slowdown as an unexpected slump in imports highlighted risks to growth."
2nd China Army Unit Implicated in Online Spying
New York Times

• Comment: "The report, parts of which The New York Times was able to corroborate independently, ties attacks against dozens of public and private sector organizations back to a group of Shanghai-based hackers whom CrowdStrike called Putter Panda because they often targeted golf-playing conference attendees. The National Security Agency and its partners have identified the hackers as Unit 61486, according to interviews with a half-dozen current and former American officials."
The True Cost of China’s Fakes
New York Times

• Comment: "The ubiquity of counterfeits points to a serious problem in China today: an absence of good faith. In a society where people lack confidence in the integrity of others, a key factor behind Taobao’s rapid expansion was Alibaba’s introduction of the Alipay online payment service in 2004."

Sunday, June 08, 2014
Regan: The NSA and dangers of a trade war with China
USA Today

• Comment: "The conflict has gone into high gear since the Department of Justice indicted five members of the Chinese army on charges of cyberespionage against companies such as Westinghouse and U.S. Steel. China responded by accusing Cisco of aiding American cyberspying, banning the use of Microsoft's Windows 8 operating system and lobbing accusations that Apple, Google and Facebook cooperated in a secret U.S program to monitor China."
China Trade Figures Point to Weaker Domestic Demand
New York Times

• Comment: “We do not think the May trade data will change the policy stance significantly,” Louis Kuijs, an RBS economist in Hong Kong, said in a note. “While the export data is reasonably positive, the weakness of domestic demand implied by the import data may keep the pressure up for initiatives to support growth.”

Saturday, June 07, 2014
Writing China: Matthew Crabbe, ‘Myth-Busting China’s Numbers’
Wall Street Journal

• Comment: "Third, you have to look at the reason why any piece of information is produced, whether by governments or trade associations or companies — they all have a political motive. You have to read between the lines. You can’t take any number at face value."
China's Xi says fiscal reform urgent but needs planning: Xinhua
Reuters

• Comment: "China's President Xi Jinping said on Friday that fiscal reforms were pressing but careful planning was needed, the official Xinhua news agency said, as top leaders met to discuss detailed reform plans."

Friday, June 06, 2014
World Bank Says China’s Growth Is on Track
New York Times

• Comment: "China is likely to meet its economic growth target of 7.5 percent this year, the World Bank said on Friday, but must persevere with fiscal and financial overhauls to deal with the cause of its debt problems."

Wednesday, June 04, 2014
Blind political dissident to US officials: Demand human rights in China
Fox News

• Comment: "Chen, known as "the barefoot lawyer" because of his village upbringing, is self-taught in the law. Despite being totally blind since childhood, he rose to prominence as a critic of the communist government. Chen's success story is especially noteworthy because of the rigid class structure in his home country; opportunity is limited for those without party connections, a fact Chen notes bitterly."

Tuesday, June 03, 2014
Without Drastic Changes, China Could Become Japan
Real Clear Markets

• Comment: "The economy has been weakening and may continue to weaken. Natural resources are inadequate, the population is aging, and the country is starting to sink into debt. China in 2014? Yes, also Japan in 1994. The conclusion many observers drew then was that Japan had to sharply boost innovation to renew economic expansion. Unfortunately, it hasn't happened yet."

Monday, June 02, 2014
Making Solar Panels in China Takes Lots of Dirty Energy
Businessweek

• Comment: "The primary differences, the researchers found, are the less stringent enforcement of environmental regulations in China coupled with the country’s more coal-dependent power sector. “It takes a lot of energy to extract and process solar-grade silicon,” says co-author Seth Darling. “And in China, that energy tends to come from dirtier and less efficient energy sources than it does in Europe.”

Saturday, May 31, 2014
China Accuses U.S. and Japan of Incitement
New York Times

• Comment: "Speaking to reporters at a conference here of senior military officials from around the region, Lt. Gen. Wang Guanzhong, the deputy chief of staff of the People’s Liberation Army, characterized a speech on Saturday morning by Mr. Hagel, which followed one by Mr. Abe on Friday night, as “full of threats and intimidating language,” according to Chinese news media outlets."

Friday, May 30, 2014
Chuck Hagel: China territorial claims destabilize region
Politico

• Comment: "Lt. Gen. Wang Guanzhong, deputy chief of the General Staff, told Hagel, "You were very candid this morning and, to be frank, more than our expectation." He added, "although I do think that those criticisms are groundless, I do appreciate your candor."
Chinese Blogger Reportedly Arrested After Meeting With John Kerry
Washington Free Beacon

• Comment: "According to the question asked by a reporter, the blogger also made “critical remarks about Chinese propaganda laws and censorship.”

Thursday, May 29, 2014
China Knows Something You Don't: U.S. Economists Are History's Biggest Patsies
Forbes

• Comment: "Thus, in Feldstein’s view, China’s strenuous efforts since the 1980s to boost its trade surpluses count for nothing. He mentioned in particular a policy of keeping its yuan massively undervalued. Supposedly Chinese leaders are just wasting their time."

Tuesday, May 27, 2014
IBM Faces Further Trouble in China
Businessweek

• Comment: "China is supposed to be one of the company’s most important growth markets, but revenue there has fallen 20 percent or more in the last two quarters. The biggest declines have come in hardware—a magnified version of the problem facing IBM worldwide, as startups and large corporations alike shun expensive servers and mainframes in favor of cheaper cloud computing solutions. Changing hardware needs are affecting IBM’s software business and the services division that knits everything together."

Monday, May 26, 2014
China Pulls Cisco Into Dispute on Cyberspying
New York Times

• Comment: "Cisco “carries on intimately with the U.S. government and military, exploiting its market advantage in the Chinese information networks, playing a disgraceful role and becoming an important weapon in the U.S. exploiting its power over the Internet,” said the article, which was published on the website of China Youth Daily, a state-run newspaper. The article was widely reposted on Chinese news sites Tuesday."

Sunday, May 25, 2014
Xi Jinping shows support for Shanghai free-trade zone in whistle-stop visit
South China Morning Post

• Comment: "Yesterday Xi "highly praised the work that has been done so far in the Shanghai free trade zone", one source at the site said, who declined to be named as he was not authorised to speak to the media. "Everybody is so happy and Xi apparently is in a very good mood after the summit," said the source, referring to the regional security meeting."
Striving for Wealth and Truth in China, in Face of Monolithic Government
New York Times

• Comment: "Consumption and corruption go hand in hand: The majority of email spam advertises the sale of counterfeit expense receipts, while Communist Party malfeasance is typified by the Shanxi official with four wives and 10 children and by the statistic that, since 1990, 18,000 corrupt officials have fled the country, with $120 billion."

Saturday, May 24, 2014
China’s Leader, Seeking to Build Its Muscle, Pushes Overhaul of the Military
New York Times

• Comment: “Military reform is part of the larger program that Xi Jinping is putting in place to put his imprimatur on the Chinese party-state,” said David M. Finkelstein, vice president and director of China studies at CNA Corporation, a research organization in Alexandria, Va., concentrating on security and military affairs."
US to rev up hacking fight against China
Fox News

• Comment: "If China doesn't begin to acknowledge and curb its corporate cyberespionage, the U.S. plans to start selecting from a range of retaliatory options, other officials said.They include releasing additional evidence about how the hackers allegedly conducted their operations, and imposing visa, business and financial restrictions on those indicted or people or organizations associated with them."

Friday, May 23, 2014

Thursday, May 22, 2014
Will Manufacturing Reverse China’s Economic Slump?
Businessweek

• Comment: "A deeper look into the numbers shows a recovery in output and new orders, as well as overseas purchases. All three measures came in above 50, and so indicate expansion. The bad news: Employment weakened from a month earlier, suggesting factory managers are worried about the still-cooling economy and its impact on business."
China Plans Security Checks for Tech Firms After U.S. Indictments
New York Times

• Comment: "The companies affected could include Cisco Systems, IBM and Microsoft, suggested a commentary about the new policy on the website of China Daily, a state-run newspaper. The new procedures may oblige such companies to share sensitive data and technology, like encryption processes, a demand that has been a source of trade and commercial friction with China in the past, said Mr. Clark."
Hacking Charges Threaten Further Damage to Chinese-American Relations
New York Times

• Comment: "While administration officials said the relationship with China has proved resilient to other blows — arms sales to Taiwan, for example, or Mr. Obama’s meetings with the Dalai Lama — they acknowledged that bringing indictments against members of the Liberation Army is different, particularly given the military’s influential role with Mr. Xi, a relatively new Chinese leader."

Wednesday, May 21, 2014
Indictment of China Military Hackers Reveals New Details of Cyber Attack Methods
Washington Free Beacon

• Comment: "The hackers then methodically stole key commercial secrets, such as technical design details for Westinghouse nuclear reactor sales and solar panel technology. Internal communications containing valuable economic data were also stolen and provided by the PLA to Chinese state-run competitors."

Tuesday, May 20, 2014
Frank Wolf: Chinese Cyber Espionage ‘Like A Mafia Operation’
Washington Free Beacon

• Comment: "Wolf said, “America made a mistake when we gave most favored nation’s status to China. You’ve got a lot of lawyers in this city who are working for the Chinese. No law firm in this city would work for the Russians during Ronald Reagan’s time.” Wolf went on to say, “Fundamentally, the Chinese government is a corrupt government."
Retaliatory Attacks, Online
New York Times

• Comment: "Two large American steel makers, United States Steel and Allegheny Technologies, each lost confidential files in online attacks. The largest solar panel manufacturer in the United States, SolarWorld, lost technological secrets, production cost data, cash flow projections and details of its legal strategy. The United Steelworkers union lost computer records containing trade policy strategies and discussions about rare earth metals and auto parts. All four had something in common besides the data thefts: Each was publicly pushing back against China’s trade policies by seeking help from the World Trade Organization or the Commerce Department."
China hacking charges: Symbolism or deterrent?
Politico

• Comment: “There isn’t a snowball’s chance in hell that those guys are ever going to stand trial in the United States, that’s just not going to happen,” said attorney Peter Toren, a former prosecutor and deputy assistant chief in the Justice Department’s computer crime and IP division. “Certainly this is a shot across the bow; whether it’s going to be more than that depends on what steps the United States takes in conjunction with this.”
Angry China retaliates against USA over cyberspying
USA Today

• Comment: "The suspension of cybersecurity cooperation is no big deal, "as those talks were not headed anywhere," said James McGregor, Greater China chairman of U.S. advisory firm APCO China, and an expert on foreign business in China. But Beijing could take retaliatory measures, he warned. "China is feeling very muscular and put upon at the same time, so American companies need to be concerned," said McGregor."
China summons US envoy, warns that cyberspying charges could harm ties
Fox News

• Comment: "China has warned the U.S. that it is jeopardizing its military ties with Beijing and demanded that Washington withdraw an indictment brought by the Justice Department against five Chinese military officials accused of hacking into U.S. companies to steal trade secrets."
China Publishes Data Claiming US Is World's Largest Cyber Attacker
Zero Hedge

• Comment: "From 3/19 to 5/18, they claim to have found 135 host computers in the US carrying 563 phishing pages targeting Chinese sites that directly controlled 1.18 million computers. But Jay Carney said earlier that "the US does not engage in economic espionage."

Monday, May 19, 2014
China accuses U.S. of hacking
USA Today

• Comment: "China often describes itself as a victim of foreign cyber-attacks, sometimes from the United States. Whistle-blower Edward Snowden's revelations about NSA activities have proved very useful in countering Washington's critiques of China. The U.S. government's cyber-espionage activities abroad "are known to all," Qin said."
China's theft of business secrets is beyond espionage
USA Today

• Comment: "We gave them plenty of opportunities to scale back these activities," said Richard Bejtlich, the chief security strategist at FireEye, a cyberdefense company. Bejtlich was the chief security officer at Mandiant, which produced an extensive report on China cyber spying."
U.S. accuses China of cyber spying on American companies
Reuters

• Comment: "Federal prosecutors said the suspects targeted companies including Alcoa Inc, Allegheny Technologies Inc, United States Steel Corp, Toshiba Corp unit Westinghouse Electric Co, the U.S. subsidiaries of SolarWorld AG, and a steel workers' union."
5 in CHINA Army FACE U.S. CHARGES OF CYBERATTACKS
New York Times

• Comment: "The indictment named members of Unit 61398, which was publicly identified last year as the Shanghai-based cyberunit of the People’s Liberation Army, including its best-known hackers known online by the noms de guerre “UglyGorilla” and “KandyGoo.” The F.B.I. and American intelligence agencies electronically tracked the activities of the hackers, one official said, and “put them inside the Datong Road headquarters” of the cyberunit, a heavily guarded 12-floor military tower near the Shanghai airport."

Saturday, May 17, 2014
The America Versus China Century
Washington Free Beacon

• Comment: "Ultimately, for Dyer, it is in a grand array of concerns that America’s 21st century contest with China now takes place. Against those who say the future belongs to the dragon, the author offers an alternative theory. As he puts it, “The U.S. holds its fate in its hands.”

Wednesday, May 14, 2014
How Small U.S. Businesses Can Court Customers in China
Businessweek

• Comment: "The main obstacle to selling online in China is the pervasive fear of being cheated or of buying a pirated product. “You need to find the best way of making a Chinese customer in front of a computer comfortable with the fact that you really have a brick-and-mortar company on American soil,” Chan says."

Tuesday, May 13, 2014
China Isn’t Overtaking America
New York Times

• Comment: "The need to maintain political stability and the Communist Party’s grip on power constrains what the Chinese government can do to capitalize on the country’s economic heft."

Monday, May 12, 2014
President tells China to get used to slower growth
USA Today

• Comment: "Other leaders have ruled out more stimulus, but unexpectedly weak demand for Chinese exports has forced Beijing to backtrack and launch mini-stimulus efforts last year and in March. Official plans call for annual trade growth of 7.5% but so far this year total imports and exports are down by 0.5%."

Sunday, May 11, 2014
Follow the Money, China-Style
New York Times

• Comment: "Corrupt officials generally do not spend the huge sums they acquire from kickbacks, and are loath to deposit their money in banks for fear it will be discovered. So they hide their money instead. The professor estimates that as much as 50 percent of the surplus money supply may have been taken out of circulation for this reason."

Thursday, May 08, 2014

Tuesday, May 06, 2014
China's Young Men Act Out in Factories
Businessweek

• Comment: "As China’s first generation of migrant workers reaches retirement age, their children are taking over factory jobs. In a marked shift from an earlier era when women dominated many production lines, more of these workers are young men. Many are creating new challenges on the factory floor, including increased impatience with rote work and higher turnover rates."

Monday, May 05, 2014
China Further Restricts Foreign Dairy Brands
New York Times

• Comment: "Some foreign officials said the investigation and fines were an attempt to protect the domestic milk powder industry. When the government announced the investigation and said it would ensure stricter standards, Chinese state-run newspapers ran editorials saying they hoped the new standards would bolster the domestic milk power industry."

Saturday, May 03, 2014

Friday, May 02, 2014
Report backs Chinese drywall health complaints
USA Today

• Comment: "Chinese-made drywall used in more than 20,000 homes in the United States could have caused nosebleeds, headaches, difficulty breathing and asthma attacks in tens of thousands of Americans exposed to it, the federal government said in a long-awaited report released Friday."

Thursday, May 01, 2014
New Realities in the US-China Investment Relationship
Rhodium Group

• Comment: "In light of the data trend, leaders must correctly diagnose the threats to two-way investment growth. These risks include the possibility that the US investment screening process could be stretched beyond protecting solely national security, and that China’s steps to open its foreign investment regime could occur too slowly and half-heartedly to forestall investment protectionism abroad."
Activity at China’s Factories Increases Slightly
New York Times

• Comment: "The data came a day after Prime Minister Li Keqiang pledged to step up support for the trade sector, adding to measures taken over the past month amid concern that the economy might be losing momentum more quickly than expected."

Wednesday, April 30, 2014
Crowning the dragon
The Economist

Tuesday, April 29, 2014

Monday, April 28, 2014
China's Economic Rise Mocks a Fraudulent Economics Profession
Real Clear Markets

• Comment: "In June of 2013, former Bush administration Treasury Secretary Henry Paulson wrote in a Wall Street Journal op-ed that "China saves too much, produces too much, sells too much to Americans and consumes too little." Rarely has such a short sentence been so pregnant with falsehoods."

Saturday, April 26, 2014
On a Trip That Avoids Beijing, Obama Keeps His Eye on China
New York Times

• Comment: "In Tokyo on Thursday, Mr. Obama vowed to defend Japan in a territorial dispute with China, but urged the Japanese to show restraint and insisted that he wanted solid relations with Beijing. The next day in Seoul, the South Korean capital, he pledged to defend South Korea from the renegade North, a Chinese ally, but went out of his way to enlist Beijing in that effort."

Thursday, April 24, 2014
In Japan, Obama Has a Message for China: Back Off
Businessweek

• Comment: "The Chinese are angry, which means the Japanese are happy. The question now is, what if anything will the president get from Shinzo Abe in exchange for berating China. Maybe Abe could ease up on his demands in the stalled Trans-Pacific Partnership free-trade talks? In the Tokyo press conference, Obama said the two sides had made “important progress” in their TPP talks."

Wednesday, April 23, 2014
Chinese Labor Activists Detained
Washington Free Beacon

• Comment: "Both Zhang and Lin were previously forced to leave Dongguan but returned to assist workers at Yue Yuen Industrial Holdings Ltd, which makes shoes for large U.S. companies such as Adidas and Nike. As many as 30,000 workers have joined the strike to protest unpaid social insurance and other benefits."

Tuesday, April 22, 2014

Monday, April 21, 2014
In His First Year, China's Xi Puts Unprecedented Focus on Africa
Businessweek

• Comment: "China is also deepening direct economic ties. Over the past year, Beijing has granted $10 billion in direct loans to African governments. And the focus of Chinese investments is evolving. “One striking feature of these loans lies in China’s new priority in financing infrastructure, agricultural, and manufacturing industries in Africa,” writes Sun, “a strategy that shifts away from its traditional heavy investment in Africa’s extractive industries.”

Sunday, April 20, 2014

Friday, April 18, 2014
White House announces itinerary for Obama’s Asia trip
Washington Post

• Comment: "The White House had hoped to be able to announce major progress on the Trans-Pacific Partnership, a 12-nation Pacific free trade pact that stands at the core of the Obama administration's bid to ramp up U.S. economic engagement in the region. But U.S. and Japanese negotiators failed to make a breakthough during two days of talks that concluded in Washington, D.C. on Friday."

Thursday, April 17, 2014
Workers Continue to Strike at Nike and Adidas Supplier in Southern China
Businessweek

• Comment: "But with suppliers under increasing pressure to keep costs low as migrant worker wages rise 14 percent annually, cutting corners by not fully funding social welfare benefits has become more routine. “Loopholes in the social insurance system have long been a hidden problem, and the practice of making less than full payments is common among manufacturers,” as English-language newspaper China Daily noted on Thursday."
Growth Rose 7.4% in First Quarter, China Reports
New York Times

• Comment: "Weak exports and a plunge in housing starts, down 27.2 percent from the first quarter of last year, were powerful brakes on growth in the first quarter. A credit squeeze has hurt many developers, as well as smaller exporters that struggle to borrow enough money to finance purchases of raw materials and sales of finished goods."
Beijing's Facts, and Fictions
New York Times

• Comment: "Corrupt officials themselves don’t even trust the system. Many have become “naked officials,” a term to describe corrupt leaders whose spouses, children or relatives emigrate overseas. It’s interesting to note that officials who flee to foreign countries with illicit gains tend to be lower in seniority than ever before: Ill-gotten wealth is expanding to all levels of the government."

Monday, April 14, 2014

Thursday, April 10, 2014
China's U.S. ambassador plays down tensions after Hagel trip
Reuters

• Comment: "China's ambassador to the United States on Thursday played down the tense exchange this week in Beijing between Defense Secretary Chuck Hagel and his Chinese counterpart and praised the frank talk between the two countries."
What's Behind China Disappointing Exports and Imports?
Businessweek

• Comment: "China’s customs administration later last year said the surge was likely due to companies exaggerating their exports to bring capital into China and take advantage of a rising yuan. Customs then launched a crackdown on fraudulent invoicing, much of it in trade with Hong Kong. “From May onward, Chinese exports to Hong Kong will rebound significantly to push up overall exports and trade growth,” customs spokesman Zheng Yuesheng said in a statement today."
Chinese Exports and Imports Unexpectedly Fell in March
New York Times

• Comment: "By contrast, the People’s Bank of China, the country’s central bank, pushed the value of the renminbi down 2.5 percent with heavy purchases of dollars and by telling state-controlled banks to buy dollars. The central bank’s initiative, designed to discourage speculation on further appreciation of the renminbi, removed the incentive for overinvoicing."

Wednesday, April 09, 2014
What Drives China's Protest Boom? Labor Disputes and Land Grabs
Businessweek

• Comment: "As China’s leaders push for faster urbanization, with plans to convert hundreds of millions more farmers into city dwellers, land disputes are a growing problem likely to get even bigger. “In land acquisitions and forced demolitions, for example, many officials often overlook public interest,” Shan Guangnai of the Chinese Academy of Social Sciences told the official newspaper."

Tuesday, April 08, 2014
U.S. defense chief gets earful as China visit exposes tensions
Reuters

• Comment: "Hagel was sharply questioned by Chinese officers at the National Defense University. One of them told Hagel he was concerned that the United States was stirring up trouble in the East and South China Sea because it feared someday "China will be too big a challenge for the United States to cope with."
U.S., China air differences over disputed islands
USA Today

• Comment: "Washington says it takes no side on the sovereignty issue of the islands but will defend Japan and the Philippines. But it also has refused to recognize the air defense zone or follow China's demands that its aircraft file flight plans with Beijing's Defense Ministry and heed Chinese instructions."
Hagel squares off with Chinese defense minister over dispute with Japan over islands
Fox News

• Comment: "The defense chiefs of China and the U.S. faced off Tuesday over Beijing's escalating territorial disputes in the region, as Defense Secretary Chuck Hagel, wagging his finger, said China doesn't have the right to unilaterally establish an air defense zone over disputed islands with no consultation."

Monday, April 07, 2014
Concession Offered, Taiwan Group to End Protest of China Trade Pact
New York Times

• Comment: "It has long claimed Taiwan as a part of its territory, and that has made many Taiwanese suspicious of efforts to quickly approve a service trade pact, which would open up dozens of industries to cross-straits investment. Resistance to the deal in Taiwan signals that China’s strategy of wooing the island through strengthening economic ties may be reaching its limits."

Sunday, April 06, 2014
In a Test of Wills With China, U.S. Sticks Up for Japan
New York Times

• Comment: "But “this sort of tit-for-tat shows how the U.S. is being drawn into the escalating row over history that China and Japan have been engaging in,” said Andrew Oros, a specialist on East Asia and an associate professor of political science at Washington College in Maryland. “It may seem irrelevant, but it exposes how surface-level issues illustrate serious underlying problems between the two largest economies in Asia, and the second- and third-largest economies in the world.”

Friday, April 04, 2014
Why China Needs Such Rapid GDP Growth: More Jobs
Businessweek

• Comment: "China needs high levels of growth—at least 7 percent, says Li—to ensure enough jobs for 7.2 million college grads and 10 million people flooding cities from the countryside every year. China’s leaders have set a target of producing at least 10 million jobs this year, and a record-high 13.1 million urban jobs were added last year. “Employment is the basis of people’s well-being,” Li said in the work report. “We will steadfastly implement the strategy of giving top priority to employment.”

Thursday, April 03, 2014
China Extends Tax Break Program to Spur Economy
New York Times

• Comment: "The State Council, China’s cabinet, decided at a meeting to extend tax breaks for small and very small enterprises through 2016 and said it was considering a significant broadening of those breaks."
China Leans Toward More Stimulus Measures
New York Times

• Comment: "Yet the government’s promise of support drew a lukewarm welcome in the Shanghai stock market Thursday. Share prices edged up in the morning, only to slump in the afternoon, for a loss of 0.7 percent for the day, dragged down by the stocks of banks and real estate developers."

Wednesday, April 02, 2014
Ruling against China on trade is another victory for the US
Vindy

• Comment: "The WTO ruling is significant because rare earth elements and other metals that are mostly found in China are essential for high-technology manufacturing. By restricting their export, China not only has artificially boosted the cost, but also has given domestic manufacturers an unfair advantage."
A Free Pass for China
New York Times

• Comment: "The strategy worked. Chinese manufacturers in several industries relying on rare earths, such as wind turbines and chemicals, made formidable inroads against their foreign competitors. Foreign companies making products relying on rare earths, such as camera lenses and touchscreen glass, shifted some production to China. Although the W.T.O. panel ruled against China, it did not require China to pay compensation."
China Extends Tax Break Program to Spur Economy
New York Times

• Comment: "China also intervened in currency markets on a huge scale in late February, issuing torrents of renminbi so as to buy up dollars. That had the effect of temporarily driving down the value of the renminbi, which helps make Chinese exports more competitive in foreign markets. The extra renminbi moving through the economy also brought down short-term interest rates, making it easier for troubled real estate developers and other large borrowers to continue borrowing."

Monday, March 31, 2014

Sunday, March 30, 2014
Thousands in Taiwan protest China trade deal
USA Today

• Comment: "The action was sparked by the decision by a lawmaker from Ma's ruling Nationalist Party to renege on a promised clause-by-clause review of the trade deal, which was signed by both sides last year but is awaiting ratification by Taiwan's Parliament.On Saturday, Ma gave into students' demands to increase scrutiny of future pacts signed with China, but refused to withdraw the pact in question, saying it would deeply harm Taiwan's interests."

Thursday, March 27, 2014
China Vows to Tackle Overcapacity as Industries Suffer
Businessweek

• Comment: "Ownership of businesses mattered. China’s state-owned enterprises’ profits were down 0.2 percent, year on year, to 216.9 billion yuan ($35 billion). Private companies, by contrast, increased profits 16.4 percent, to 260.3 billion yuan. Foreign-invested and companies from Hong Kong, Taiwan and Macao, also managed well; their profits grew 14.5 percent, to 181.5 billion yuan."

Wednesday, March 26, 2014
Where Is China’s Debt Bomb Hiding?
Businessweek

• Comment: "Other top Chinese cities also showed high levels of debt, with Beijing at 135 percent and Shanghai at 123 percent. Still, they didn’t come close to matching some of their global peers, such as the city of Osaka, Japan (181 percent), or the province of Ontario, Canada (226 percent), notes a recent Moody’s Investors Services (MCO) report on China’s provincial debt burdens."
Michelle Obama in China: first ladies and panda diplomacy (+video)
Christian Science Monitor

• Comment: "Panda diplomacy is a major outreach tool of the Chinese government of course, and has been for centuries. Mao Zedong, the country’s first communist leader, was thus acting in line with his nation’s heritage when he used the black-and-white and adorable creatures as a means to ease the opening of relations with the United States."

Monday, March 24, 2014
Why China's Manufacturing Sector Has Hit a Wall
Businessweek

• Comment: "China’s slowing economy may mean a more gradual implementation of the sweeping market opening, proposed at the Third Plenum, a key party meeting held last November. While some reforms may support growth (such as opening more space for private capital), others, such as pushing enterprises to deleverage and reducing excess inventories, are expected to have a dampening effect on GDP."
China Contracts
Zero Hedge

• Comment: "The USA doesn’t produce all of its own flags (the US imports $3.2-million worth of them from China). There are no televisions that are manufactured in the USA (since 2004 when Five Rivers Electronic Innovations went bust). Levi’s Jeans are manufactured (except for one single line of jeans) outside of the USA. Even the USA’s 2012 Olympic uniforms were made in China."
In China, Greater Risks on Debts
New York Times

• Comment: "While companies contacted by Reuters were confident they could obtain credit, Chinese rating agencies have stepped up the pace of downgrades. There were 77 companies downgraded in 2013, more than triple the tally of 2012, according to China Chengxin, a credit rating agency."
China Factory Activity Shrinks for Fifth Straight Month
New York Times

• Comment: "Also Monday, the renminbi closed at 6.1888 per dollar, up 0.6 percent from Friday’s close of 6.2250, the biggest jump since October 2011. It hit 6.1882 in afternoon trade. The Chinese currency fell to a 13-month low last week with a 1.2 percent weekly loss, its biggest weekly drop, as investors fretted over the outlook of the economy."

Sunday, March 23, 2014
China's Goal for Financial Markets Reaffirmed
New York Times

• Comment: "The Chinese central bank will focus on liberalizing interest rates for bank deposits over the next two years, while loosening its grip on the renminbi to give greater influence to market forces, a vice governor of the People’s Bank of China said on Saturday."

Saturday, March 22, 2014
N.S.A. Breached Chinese Servers Seen as Security Threat
New York Times

• Comment: "One of the goals of the operation, code-named “Shotgiant,” was to find any links between Huawai and the People’s Liberation Army, one 2010 document made clear. But the plans went further: to exploit Huawai’s technology so that when the company sold equipment to other countries — including both allies and nations that avoid buying American products — the N.S.A. could roam through their computer and telephone networks to conduct surveillance and, if ordered by the president, offensive cyberoperations."
In Beijing Talk, Michelle Obama Extols Free Speech
New York Times

• Comment: "Criticism of China’s top leadership is quickly deleted and is considered to be of particular concern to the censors. Obliquely, Mrs. Obama drew attention to this by making a comparison with the situation she and President Obama face in the United States."

Friday, March 21, 2014
Michelle Obama practices 'gentle diplomacy' in China
USA Today

• Comment: "The U.S.-China relationship is often noisy with discord, as the world's two largest economies spar over issues ranging from trade disputes to religious freedom. This week, the White House hopes to promote the value of exchanges between the two countries."
Keeping the Mystery Out of China's Meat
Businessweek

• Comment: "Wal-Mart has learned that lesson repeatedly on the mainland, most recently when authorities earlier this year said meat sold as donkey at its Chinese stores contained fox DNA, triggering a recall by the Bentonville (Ark.)-based retailer. That wasn’t an isolated occurrence. A seemingly endless string of scandals—from melamine-tainted milk that killed six infants and sickened 300,000 others in 2008 to rat meat recently sold as mutton—has made China the Wild West of food safety."

Thursday, March 20, 2014
Bloomberg Hints at Curb On Articles About China
New York Times

• Comment: "But sales of those terminals in China declined after the company published an article in June 2012 on the family wealth of Xi Jinping, at that time the incoming Communist Party chief. After its publication, officials ordered state enterprises not to subscribe to the service. Mr. Grauer did not specifically mention the article about Mr. Xi or any other articles."

Wednesday, March 19, 2014
U.S. businesses battle rising costs, rip-offs in China
USA Today

• Comment: "But most U.S. companies surveyed by a U.S. business association have seen China growth slow in both revenue and profitability, and will scale back expansion plans this year. As labor costs rise, U.S. firms feel targeted by government campaigns, and complain that China still fails to stop local firms copying their intellectual property, the American Chamber of Commerce in China (AmCham China) reported."

Tuesday, March 18, 2014

Monday, March 17, 2014

Friday, March 14, 2014
Is China Rethinking the Dominance of Its State Sector?
Businessweek

• Comment: "But the question remains what the ultimate aim of diversifying ownership is. Is it to give the private sector a real controlling stake in sectors long closed to their participation? Or is the primary purpose to strengthen state companies by providing them with new financing?"

Thursday, March 13, 2014
Stolen F-35 Secrets Now Showing Up in China’s Stealth Fighter
Washington Free Beacon

• Comment: "The Chinese cyber spying against the Lockheed Martin F-35 Lightning II took place in 2007 under what U.S. intelligence agencies codenamed Operation Byzantine Hades, a large-scale, multi-year cyber program that targeted governments and industry. Defense officials said the stolen data was obtained by a Chinese military unit called a Technical Reconnaissance Bureau in the Chengdu province. The data was then passed to the state-run Aviation Industry Corp. of China (AVIC)."
China Is Prepared for Rough Economy Ahead, Li Says
Businessweek

• Comment: “The fairly dramatic slowdown is unusual in Chinese economic history of the last decade” and the figures were “shockingly weak,” said Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong. “It points to a major deceleration of momentum in the beginning of 2014,” wrote Kowalczyk in a research note."

Tuesday, March 11, 2014
Expect China Deposit Rate Liberalization Within Two Years, Says Central Bank Head
Businessweek

• Comment: “Removing controls on deposit rates is the most critical and risky step in interest rate liberalization,” the People’s Bank of China said in a statement released at the time. It would have a “much more profound impact,” the statement added."
China Details Plans to Liberalize Interest Rates and Encourage Private Banks
New York Times

• Comment: "The head of China’s central bank and other top financial regulators offered new details on Tuesday on the country’s steps toward a more market-driven economy, including plans to liberalize interest rates as early as next year and to allow the establishment of the first privately owned official banks."

Monday, March 10, 2014
Market Slips as China’s Exports Take a Spill
New York Times

• Comment: "China’s exports unexpectedly tumbled 18.1 percent in February, against expectations for a 6.8 percent rise, swinging the trade balance into deficit and adding to fears of a slowdown in the world’s second-largest economy."

Saturday, March 08, 2014
In China, FedEx and UPS Wait for Regulators to Renew Permits
Businessweek

• Comment: "Not only have they not opened new branches, but they also have had to seek reapproval for existing operations. After a new law governing the industry was passed in 2009, the State Post Bureau decided that all carriers, local and foreign, needed new licenses."

Friday, March 07, 2014

Thursday, March 06, 2014
Why This Isn’t China’s ‘Bear Stearns Moment’
New York Times

• Comment: "The country’s possible first domestic bond default has prompted comparisons with the sequence of events that led to the bailout of the Wall Street firm. The parallels between China’s predicament and the crisis of 2008 may be tempting, but are flawed. If the analogy has any use, it is as a reminder of which mistakes to avoid."

Wednesday, March 05, 2014
China Announces 12.2% Increase in Military Budget
New York Times

• Comment: "The buildup of the People’s Liberation Army, which also includes navy and air force branches, is considered by many analysts to be consistent with the size of China’s economy — the second largest in the world — and its global political influence. Nevertheless, the military expansion is being closely watched by other nations in the region and by the United States, the supreme military power in the Pacific."

Tuesday, March 04, 2014
Nasty send-off
The Economist

• Comment: "The commentary does its best to discredit Mr Locke’s tenure. In it, the outgoing ambassador is compared to a banana who used his “yellow skin and white heart” to advance American ambitions. “After a while, a banana will inevitably start to rot”, the nasty rebuke continues. It accuses Mr Locke of “inciting evil winds, lighting evil fires” through his visit last year to Tibet, considered by authorities as foreign interference in domestic affairs. China was further angered last month when Barack Obama, America’s president, met the Dalai Lama at the White House."

Saturday, March 01, 2014
AMERICAN EXCESS, CHINESE SUCCESS
American Spectator

• Comment: "If Unbalanced has a weakness, it is a slight tendency towards Friedmanesque I-have-seen-the-future-and-it-works naïvety—seeing the timid, blinkered apparatchiks of the Politburo as meritocratic masters of geo-econo-political strategizing. For example, Roach fears that the Chinese will bite the re-balancing bullet before we do, placing us in a reactive posture."

Friday, February 28, 2014

Thursday, February 27, 2014
Departing U.S. Envoy to China Praises Growing Economic Ties
New York Times

• Comment: "More recently, one focal point in United States-China diplomacy has been Beijing’s increasingly assertive stand on territorial disputes in the East China Sea and South China Sea. Other nations in the region have also taken strong positions in opposition to China, and the United States, the dominant military power in the Pacific, has had to play a growing role in trying to calm the conflicts."
U.S. ambassador urges China to respect human rights
USA Today

• Comment: "The outgoing U.S. ambassador to Beijing has urged China to respect the rights of peaceful political activists and says Washington is deeply concerned about the fate of a minority scholar charged with separatism."

Wednesday, February 26, 2014
American Companies in China Cite Corruption Challenges in Survey
Businessweek

• Comment: "The problem of corruption and fraud is one of the top five challenges for American companies in China, says the “China Business Report 2013-2014,” released Feb. 25 by the American Chamber of Commerce in Shanghai and Control Risks, a business advisory group. Other top challenges include local protectionism, human resources constraints, and rising costs, with the last cited as the biggest concern for the third year in a row, with 89 percent of the companies surveyed calling it a problem."

Tuesday, February 25, 2014
As Rest of Economy Weakens, Chinese Exports Surge
New York Times

• Comment: "The recent history of the old mill underlines two troubles in the Chinese economy: its dependence on construction in recent years and the return, at least temporarily, of a need for exports to help offset weakness in the domestic market."

Monday, February 24, 2014
California Man Gave DuPont Secrets to China, U.S. Says
Bloomberg

• Comment: "Walter Liew, a Malaysian farmer’s son who emigrated to the U.S. in 1980, is charged with conspiracy, economic espionage and trade-secret theft. The engineering consultant stole secret DuPont technology about a manufacturing process for titanium dioxide, a white pigment used in paper, paint and plastics, and gave it to China’s Pangang Group Co. (000629), Assistant U.S. Attorney Peter Axelrod told a federal jury today in San Francisco."
China's Economic Bubble Is Bursting
American Thinker

• Comment: "Markit Research compiles "flash" indicators each month for demand and operating conditions in China's manufacturing sector. The report is based on surveys responses from executives inside approximately 85%-90% of China's most important factories. A Markit flash score above 50 means that activity is expanding and a score below 50 means that activity is contracting. Although the final reports are not published for another two weeks, the Markit flash reports seldom differ from the final reports."

Sunday, February 23, 2014
China Cuts Treasury Holdings Most Since 2011 Amid Taper
Bloomberg

• Comment: "The nation pared its position in U.S. government bonds by $47.8 billion, or 3.6 percent, to $1.27 trillion, the largest decline since December 2011, according to U.S. Treasury Department data released yesterday. At the same time, international investors increased holdings by 1.4 percent, or by $78 billion, in December, pushing foreign holdings to a record $5.79 trillion."
China auto lobby, policymakers collide over foreign investment
Reuters

• Comment: "China's auto lobby has urged Beijing to support local carmakers after the regulator said it was considering further opening up the market to outside investment amid a deepening row between policymakers and state-owned car firms."

Saturday, February 22, 2014
U.S. plays down tension with China, upbeat on military exchanges
Reuters

• Comment: "The United States is optimistic about military exchanges with China and wants deeper ties to help reduce the risk of miscalculation, a top U.S. military officer said on Saturday, playing down tension between the world's two biggest economies."

Friday, February 21, 2014
Obama meets with Dalai Lama despite China's objections
USA Today

• Comment: "But just hours after the White House announced on Thursday that the meeting would take place, China's foreign ministry issued a statement that warned the meeting "will grossly interfere in the internal affairs of China, seriously violate norms governing international relations and severely impair China-U.S. relations."
When China's Economic Priorities Clash
New York Times

• Comment: "The priorities were clearly set out at the Communist Party third plenum in November. First and foremost, the Chinese economy must be restructured away from overdependence on infrastructure investment and exports, toward private businesses that increase the quantity and quality of consumer goods and services."

Thursday, February 20, 2014
Behind China's Labor Unrest: Factory Workers and Taxi Drivers
Businessweek

• Comment: "Meanwhile, the report cites a large number of worker protests “caused by the downsizing, closure, relocation, sale or merger of businesses” spurred by the government’s declared policy of tenglong huanniao, or “changing the birds in the cage.” That’s when Beijing has encouraged the closure of factories engaged in lower-tech businesses, including shoes, textiles, and toys. All together, 57 percent of factory worker protests took place in Guangdong, home to the Pearl River Delta manufacturing region, followed by 9 percent in Jiangsu, home to many export factories in the Yangtze River Delta."

Monday, February 17, 2014
China says Kerry's call for Internet freedom naive
Reuters

• Comment: "China criticized U.S. Secretary of State John Kerry on Monday for his "naive" call for more Internet freedom in the country, and wondered why his discussion with Chinese bloggers had not touched upon Edward Snowden."

Sunday, February 16, 2014
Of Course China Wants To Replace The U.S.
Zero Hedge

• Comment: "The first issue is that even though he discusses the regional balance of power in the piece, his overall argument is that China will not be capable of replacing the United States as the “global hegemon.” Unfortunately, there are many who would claim that America is a global hegemon. However, that argument is preposterous under any reasonable definition of hegemony. It is true that in the post-Cold War (if not earlier) the U.S. has been the only power capable of projecting military power in any region of the world."

Saturday, February 15, 2014
The Case for Swapping Roles With China
New York Times

• Comment: "Mr. Roach suggests that the way for the two nations to prosper is jointly. If China is to build a consumer society and find jobs for millions of peasants flooding into cities looking for work, it must create a robust services sector. The trick for the United States is to build its exports by helping China meet that need, exploiting American expertise in everything from running retail chains to overnight delivery to professional services."
U.S., China agree to work on climate change
Reuters

• Comment: "China and the United States, the world's top emitters of greenhouse gases, pledged on Saturday to work together to attenuate the effects of global climate change."

Friday, February 14, 2014

Thursday, February 13, 2014
China Trade Growth Defies Signs of Slowdown
Bloomberg

• Comment: "China’s export and import growth unexpectedly accelerated in January, defying signs the world’s second-largest economy will slow while fueling speculation that fake shipments are resurfacing."
White House Official Calls for a More Predictable China
The Epoch Times

• Comment: "The Chinese have typically avoided pressing their territorial claims through the existing international legal system. In fact, some Chinese thinkers believe that the current system is merely a product of U.S. hegemony that they are bound to resist."

Wednesday, February 12, 2014
China Trade Report Better Than Expected
New York Times

• Comment: "Chinese exports handily beat expectations in January, rising 10.6 percent from a year earlier, while imports jumped 10 percent, leaving the country with a trade surplus of $31.9 billion for the month. “The trade figures were a bit of a surprise to the market,” said Zhou Hao, an economist at ANZ in Shanghai. “The stronger-than-expected exports data also showed improvement in the global demand momentum.”

Tuesday, February 11, 2014
Gertz: U.S. Will Not Tell The ‘Truth About China’
Washington Free Beacon

• Comment: “The Chinese are looking for some kind of a values system because they have a problem, they export toothpaste with anti-freeze in it. So there’s this kind of kind of rampant commercialism, so they don’t have a good sense of a values system underneath. They’re looking for some transition,” he said."

Sunday, February 09, 2014
Chinese Dissident Lands at Cato Institute With a Caution to Colleges
New York Times

• Comment: "In an interview on Friday, the dissident, Xia Yeliang, warned that American universities should be careful about partnerships with Chinese universities. “They use the reputations of Western universities to cover their own scandals,” he said. “Perhaps Western universities do not realize that Chinese universities do not have the basic value of academic freedom, and try to use Western universities to cover their bad side,” Professor Xia added."

Thursday, February 06, 2014
Senate backs Max Baucus for China ambassador
Politico

• Comment: "The Senate voted 96-0 today to send one of its longest-serving members, Sen. Max Baucus, across the world to be the next U.S. ambassador to China, setting up a dramatic power shift at the top of several key Senate committees."
Senate approves Baucus as ambassador to China
Reuters

• Comment: "Baucus holds one of the most powerful positions in the Senate as chairman of the Senate Finance Committee, which oversees tax and trade policy. He took a firm stance against some of China's trade practices but also led successful U.S. efforts in the 1990s to help China's admission to the World Trade Organization and to begin normal trade relations with Beijing."
Senate approves longtime Sen. Max Baucus as ambassador to China
Fox News

• Comment: "Thursday's 96-0 vote hands the job to the moderate Democrat from Montana. As chairman of the Senate Finance Committee, the 72-year-old Baucus is a veteran of U.S. trade policy, though he has little expertise on military and other issues that have strained relations with Beijing."

Tuesday, February 04, 2014
Senate panel approves Senator Max Baucus as ambassador to China
Reuters

• Comment: "The U.S. Senate Foreign Relations Committee approved on Tuesday the nomination of Senator Max Baucus, a Montana Democrat who has helped steer trade policy with China, to be the next U.S. ambassador to Beijing."

Saturday, February 01, 2014

Tuesday, January 28, 2014
In Global Trade, China Plays by Its Own Rules
The Epoch Times

• Comment: "One way it favors domestic producers is by restraining access to the Chinese market to foreign products. At the same time, it subsidizes its industry far beyond what is acceptable under WTO rules. Lastly, it enacts regulations that benefit its industry only."
Max Baucus nomination set to move forward
Politico

• Comment: "McCain then recommended Baucus consult with former Secretary of State Henry Kissinger on how to deal with China. Baucus said he intends to do so soon and did not push back against the Arizona senator’s comments. “I don’t disagree with you,” Baucus said. “The whole thing in life is hope for the best and assume for the worst.”
U.S. senators urge nominee for Beijing ambassador to be tough on China
Reuters

• Comment: "U.S. lawmakers expressed concern about China's territorial ambitions at a confirmation hearing on Tuesday for the next American ambassador to China, and they urged him to take a tough line with Beijing."

Sunday, January 26, 2014
China Sentences Legal Activist to 4 Years for Role in Protests
New York Times

• Comment: "A Chinese court sentenced a prominent legal activist to four years in prison Sunday in a case widely seen as a demonstration of the Communist Party leadership’s determination to quell any challenges to its hold on power."

Friday, January 24, 2014

Thursday, January 23, 2014
A Manufacturing Slowdown Carries Over to 2014 in China
New York Times

• Comment: "Activity in China’s manufacturing sector contracted in January for the first time in six months as new orders declined, a preliminary private survey showed on Thursday, confirming that a mild slowdown at the end of 2013 has continued into the new year."

Wednesday, January 22, 2014
A Surprisingly Subdued Start to 2014 for China's Manufacturers
Businessweek

• Comment: "Today’s data should help answer the question whether the tightening policy launched in June is slowing the economy, says Zhiwei Zhang, chief China economist in Hong Kong for Nomura (NMR). “The weak PMI reading suggests that this negative effect may have finally started to kick in,” Zhang writes in a note published today after the release of the PMI data."
China crushes anti-corruption movement in trials
USA Today

• Comment: "The two events illustrate that China's leader Xi Jinping is intent on crushing critics who help expose a major flaw in the Communist Party system, even at the risk of being accused by the Chinese public of silencing whistleblowers who expose crimes he vows to stop."
Trying to deleverage China without blowing up the system
Telegraph

• Comment: "The moment the Chinese authorities open up the capital account and make the RMB convertible there will be a rush of money abroad. That will unleash captive funds in property that have nowhere else to go, and could trigger a disorderly fall in real estate prices, and much else besides. So the government will not do it yet."
A Manufacturing Slowdown Carries Over to 2014 in China
New York Times

• Comment: "The flash purchasing managers’ index showed a faster rate of decrease in new export orders and employment in January. The new orders index came in at 49.8, the first contraction in six months."

Monday, January 20, 2014
China Reports Cooling Down of Economy
New York Times

• Comment: "Industrial production and retail sales data for December, also released Monday, also painted a picture of steady, unexciting growth: Industrial output rose 9.7 percent from a year earlier, a touch below the 10 percent pace recorded in November, while retail sales growth, an indicator of domestic consumption, was virtually unchanged, at 13.6 percent."
China's Xi Jinping Wields the Communist Hammer
American Thinker

• Comment: "Over 240 million Chinese are employed in "contract manufacturing", a business with avery low average profit margin of 3.5%. When China devalued its currency by 68%, corporations in developed nations could outsource their manufacturing to China and more than double profits."
For China, a Shift From Exports to Consumption
New York Times

• Comment: "China is in the midst of a major overhaul aimed at weaning its economy off its decades-long reliance on often inefficient state-driven investment and a manufacturing sector that has been highly geared to exporting to the rest of the world."
Slowing GDP Complicates China's Reform Goals
Businessweek

• Comment: "Fixed-asset investment—including into bridges, buildings, rail, and factories—slowed to 19.6 percent last year, below analysts’ expectations of 19.8 percent and down from 20.6 percent in 2012. Meanwhile, industrial production was up 9.7 percent in December from the same period a year earlier, below the median forecast and the 10 percent recorded in November."

Sunday, January 19, 2014
China economic data
Financial Times

Saturday, January 18, 2014
China decries U.S. spending bill
Reuters

• Comment: "China's Commerce Ministry has condemned a $1.1-trillion spending bill passed by the U.S. Congress last week over clauses that limit technological purchases from the Asian giant, saying they clash with the principles of fair trade."

Friday, January 17, 2014

Monday, January 13, 2014
China's Compliance With the World Trade Organization and International Trade Rules
Congressional Executive Commission on China

• Comment: "The state continues to play a heavy role over China's economy and to subsidize state-owned enterprises and favored industries at the expense of foreign competition. Other problems include weak enforcement of intellectual property rights, retaliation for U.S. trade actions, lack of transparency, and forced technology transfer. This hearing will examine recent issues and trends in China's compliance with WTO and other international trade rules."

Saturday, January 11, 2014
China Overtakes US As World's Largest Trader (Except With Japan)
Zero Hedge

• Comment: "China became the world's biggest trader in goods for the first time last year - overtaking the US for all of 2013. We suspect the powers that be are starting to get nervous as this comes soon after China's surge to become the world's largest oil importer marking a notable shift in the world's most powerful nations"

Friday, January 10, 2014
WFB’s Bill Gertz: China Has Capability To Attack Our Satellites
Washington Free Beacon

• Comment: "When asked about the Obama administration’s response to China’s new capabilities, Gertz responded the White House is “dead set against having offensive anti-satellite weapons.”“We have that capability,” Gertz continued, “but the administration is opposed to that and, as a result, the administration is playing defense while the Chinese are playing offense."

Thursday, January 09, 2014
Even as Wages Rise, China Exports Grow
New York Times

• Comment: "Cheng Chunmeng, the general manager of a manufacturer of colorful children’s chairs in east-central China, gave his workers a 30 percent raise last year to keep them from leaving. His labor costs are rising even faster in dollar terms, as the Chinese currency slowly climbs against the United States dollar."
Max Baucus Advised Foundation Funded by U.S. Branches of Chinese-Owned Banks
Washington Free Beacon

• Comment: "A China expert told the Washington Free Beacon on background that organizations like the USCPF are part of a “new pro-China lobby” that began working with local and state chambers of commerce in the 1980s to curry favor with the U.S. business community. Corporations now fund the USCPF and similar organizations to gain access to Chinese markets and cut through bureaucratic red tape in what the source described as a “self-funding circle.”

Wednesday, January 08, 2014
Chinese Investment in U.S. Doubles to $14 Billion in 2013
Businessweek

• Comment: "Chinese companies are on a North American buying spree, investing $14 billion in the U.S. last year, a record high, says a new report by New York’s Rhodium Group."

Sunday, January 05, 2014
China Exclusive: No rush to rebalance China's economy: economist
Xinhua

• Comment: "But despite its status as an economic powerhouse, China's economy is often labelled as unbalanced, in terms of its disproportionate shares between investment and consumption."
China Versus the US - The Chinese Challenge to the World Trading System
Amazon

• Comment: "China versus the US is a challenging article that argues that China, because of its belief in Mercantalism, has already begun a trade war not only against the US, but against the entire World Trading System. And China is winning!"

Thursday, January 02, 2014
Shrinking Exports Slow Growth for Chinese Manufacturing
New York Times

• Comment: "The HSBC/Markit manufacturing Purchasing Managers’ Index slipped to 50.5 in December from 50.8 in November, unchanged from a preliminary reading. A reading higher than 50 indicates expansion."

Wednesday, January 01, 2014
Factory Output Growth Eases in China
New York Times

• Comment: "The official purchasing managers’ index, published by the National Bureau of Statistics, dipped to 51 in December. Economists polled by Reuters had expected the index to ease to 51.2 from the November reading of 51.4. The 50-point mark separates expansion in activity from contraction."

Tuesday, December 31, 2013
Chinese Businessman Seeking Stake in Times Co.
New York Times

• Comment: "In a phone interview on Tuesday, Mr. Chen said he had been thinking about “working with” The New York Times for years. Recently, he said, he had persuaded two businessmen, including a Hong Kong tycoon, to help him raise about $1 billion to snap up a large portion of the company, now valued at about $2.4 billion based on its stock price."

Monday, December 30, 2013
Chinese Students Major in Luxury Cars
Businessweek

• Comment: "Zinch surveyed 25,000 Chinese students last year and found that 62 percent said they could afford to spend at least $40,000 each year on a college education. “Most schools are recruiting [Chinese] students for whom the difference between a $20,000 and a $40,000 education is a rounding error,” Krommenhoek says. “This is a very attractive demographic for foreign brands.”

Sunday, December 29, 2013

Friday, December 27, 2013

Thursday, December 26, 2013
In Blue-Collar Toledo, Ohio, a Windfall of Chinese Investments
New York Times

• Comment: "Chinese investors have been buying commercial and residential real estate in Detroit, inexpensively because of the city’s financial troubles, and have agreed to finance a $1.5 billion waterfront development in Oakland, Calif. This year, on a trade trip to China, Gov. Jerry Brown of California discussed Chinese investment in the state’s troubled $91 billion bullet train project."

Monday, December 23, 2013
Meet China’s Christmas elves
Telegraph

• Comment: "While we gear up for Christmas, the elves in south China and Hong Kong, which between them account for 70 to 80 per cent of all toy making in the world, are getting ready for January and the Hong Kong Toys and Games Fair. This is where they will display their offerings for next Christmas."
How China’s weapon snatchers penetrate American defenses
Reuters

• Comment: "For now, China’s sprawling defense industries and research laboratories are relying on a high-tech short cut. In a vast and carefully coordinated effort, China is scouring the globe for know-how that can be coupled with domestic innovation to produce strategic weapons and equipment."
China taps legion of amateurs in hunt for US arms tech
Sunday Times

• Comment: "Today, investigations into arms trafficking linked to China have swelled to at least 350 active cases - up by more than 50 percent since 2010, according to a Reuters review of confidential US government records. The total number is likely higher than 350 because the count does not include many cases that began as regulatory inquiries or investigations into other crimes. U.S. officials also say their China counter-proliferation case load is growing at a faster pace than investigations linked to any other nation."

Sunday, December 22, 2013
Despite Baucus Nomination, Critics Cite Void in China Lineup
New York Times

• Comment: "Mr. Baucus, unlike other candidates for the Beijing post, does not speak Chinese. But he is a familiar figure there, at least to economic officials, having taken part in numerous trade delegations and met with Chinese leaders, including Mr. Xi; former Prime Minister Wen Jiabao; and China’s ambassador to the United States, Cui Tiankai. With the United States and China in talks on a bilateral investment treaty, some analysts said Mr. Baucus might have a more significant tenure than his predecessor, Gary Locke, whose most visible accomplishment was streamlining the visa application process for Chinese tourists."

Friday, December 20, 2013
White House confirms Baucus is pick for China ambassador
Washington Post

• Comment: “For more than two decades Max Baucus has worked to deepen the relationship between the United States and China," Obama said in a statement. "The economic agreements he helped forge have created millions of American jobs and added billions of dollars to our economy, and he’s perfectly suited to build on that progress in his new role.”
Obama nominates Senator Baucus as ambassador to China
Reuters

• Comment: "Baucus' nomination, which had been expected, was seen by experts as a commitment to resolving some of the trade issues that have strained ties with China. The United States has long alleged that China keeps the value of its currency artificially low to promote exports, and has pressured Beijing to let the yuan trade more freely in foreign exchange markets."
The New Face of Chinese Propaganda
New York Times

• Comment: "The messages vary, but their most conspicuous feature is affirmation of the party, like “A strong Communist Party means happiness for the Chinese people!” and “Why is China strong? Because of the Communist Party.” I’ve noticed three variations on the theme.First are billboards and posters with slogans from the Maoist era, like “Sing the praises of the party” or “Sing a folk song for the party.'
The Baucus backstory
Politico

• Comment: "After a series of back-channel discussions with Senate Democratic leaders, sensitive conversations with senior White House officials and at a consequential lunch with Vice President Joe Biden, Baucus emerged as the clear front-runner to succeed Gary Locke in Beijing."
6 Chinese nationals indicted in seed theft case
USA Today

• Comment: "The seeds represent several years of research worth at least $30 million to $40 million, federal prosecutors said."

Thursday, December 19, 2013
What Max Baucus would bring to post of China ambassador
Christian Science Monitor

• Comment: "Baucus has already established solid credentials with the Chinese on the economic front – and, in particular, in the trade arena. In the 1990s, he was a crucial proponent of China’s entry into the World Trade Organization, and he pressed to extend to China special US trade status known as Permanent Normal Trade Relations."
Did China steal US corn? Six charged with digging up bioengineered seed.
Christian Science Monitor

• Comment: "According to documents filed in federal court, the Chinese company officials allegedly drove through rural areas of Iowa, Illinois, and Indiana to dig up freshly planted seeds or collect samples of grown corn to obtain specimens of the valuable engineered seed stock."
Central Bank in China Acts to Ease Rate Jumps
New York Times

• Comment: "For years, the government has kept rates unusually low, helping feed an investment binge that some economists warn has caused inflation and led to overinvestment in property, infrastructure and other industries."

Wednesday, December 18, 2013
U.S. Senator Baucus to be named ambassador to China-aides
Reuters

• Comment: "U.S. Senator Max Baucus, a Montana Democrat who has taken a tough stance against some of China's trade practices, will be nominated by President Barack Obama to be the next ambassador to Beijing, according to Senate aides."
Baucus to be named ambassador to China, officials say
Fox News

• Comment: "Obama is in search of a new top diplomat in Beijing as he executes a so-called Asia pivot in U.S. foreign policy to more directly counter China after the wars in Iraq and Afghanistan. The relationship between the two nations has grown more troubled in recent weeks, with Chinese authorities unilaterally declaring an air defense zone over disputed islands in the East China Sea. The United States subsequently flew a pair of B-52 bombers through the space last month without incident, and Vice President Joe Biden sought to calm matters on his recent trip through Asia."
Turbulence Ahead for U.S., China Ties
Wall Street Journal

• Comment: "China's foreign relations in modern times—particularly with the U.S. and Asian neighbors—have been guided by a doctrine of prudence embodied in Deng Xiaoping's famous maxim "taoguang, yanghui"—"bide our time; hide our capabilities." Mr. Deng correctly calculated that once the world understood the full implications of an emerging Asian giant, it would stir up anxieties and upset the external harmony that China needed to pursue its economic development."

Tuesday, December 17, 2013
USA upgrading in Asia, but 'pivot' questioned
USA Today

• Comment: "The Obama administration says it plans to shift some 60% of the Navy to the Asia-Pacific by 2020 and has begun sending its best and newest equipment to the region, says Vice Adm. Robert Thomas, commander of the Japan-based U.S. 7th Fleet."
China Conducts Second Flight Test of New Long-Range Missile
Washington Free Beacon

• Comment: "China’s military conducted the second flight test of its newest long-range missile that is capable of hitting targets in the United States with a nuclear warhead, according to defense officials."

Monday, December 16, 2013
Output Falls at Chinese Factories, Survey Shows
New York Times

• Comment: "The flash Markit/HSBC Purchasing Managers’ Index fell to 50.5 from November’s final reading of 50.8, but for a fifth consecutive month remained above the 50 line that separates expansion of activity from contraction."
China Rethinks GDP Obsession as Local Debt Risks Rise
Businessweek

• Comment: "The last nationwide survey found that debt held by the local finance vehicles totaled 10.7 trillion yuan ($1.8 trillion) as of the end of 2010, or 27 percent of China’s economy. China’s investment splurge of recent years has likely driven that figure much higher. Local government debt may now exceed 20 trillion yuan, estimated China’s former finance minister, Xiang Huaicheng, in April."

Sunday, December 15, 2013
China official says has 'substantial' price-fixing evidence against Qualcomm: media
Reuters

• Comment: "The NDRC has been stepping up its crackdown on anti-monopoly violations over the past several months. It handed down record fines to six milk powder companies, including Mead Johnson Nutrition Co and Danone, in August and has also punished domestic jewelers for antitrust violations."
China to balance growth, reform next year
Xinhua

• Comment: "The country will “keep a reasonable growth of monetary credit, optimize the funding and credit structure and increase the proportion of direct financing,” it said.China has kept a proactive fiscal policy since late 2008 when the country rolled out a 4 trillion yuan (US$650 billion) stimulus package to combat the adverse impact of the global financial crisis."

Saturday, December 14, 2013
The case for a heavy hand
The Economist

• Comment: "EMPLOYEES of some state-owned enterprises are used to being corralled into occasional “political study” sessions to be lectured on the Communist Party’s latest thinking"
Dear President of China
New York Times

• Comment: "China experts tell me that this unprecedented crackdown is prompted by your feeling that we’ve crossed a red line. You apparently thought the rules of the game were that the foreign press, local media and social media could write anything they wanted about corruption and social protests at the local and provincial level — indeed, it was a way for the central government to track and curb corruption — but that such focus should never be brought to the financial dealings of the top leaders of the Communist Party."

Thursday, December 12, 2013
Guess What? The U.S. and China Don’t Trust Each Other Much
Businessweek

• Comment: "In viewing the other country as a major threat, there was a split, with Chinese markedly more suspicious. 63 percent of the Chinese public see the U.S. as the biggest threat to their country, with 81 percent of business elites saying that. Coming in a distant second as a threat was Japan."
Overcapacity Threatens China Growth
Businessweek

• Comment: "Not surprisingly, steel is an industry in which the problem is particularly severe. That’s because China’s growth in recent years has been propelled by a massive investment splurge, much of which has gone towards building things—trains, bridges, high-rises, and new factories—all of which use rebar and other steel products."

Sunday, December 08, 2013
Export Surge Sets Up Big Surplus for China
New York Times

• Comment: "China’s exports rose more than expected last month, government figures released Sunday showed, as resurgent demand from consumers in the United States and the European Union helped put the Asian manufacturing juggernaut on track for its biggest annual trade surplus since 2008."

Friday, December 06, 2013
Reform and China's GDP Target
Businessweek

• Comment: "The GDP target will provide an important signal on how serious the party is about pushing reform. It could be set at 7.5 percent growth for 2014, as it was for the past two years (the previous eight years it was always 8 percent). Or more encouragingly for reform advocates, it could be cut to 7 percent."

Thursday, December 05, 2013
Huawei May 'Put the U.S. Aside,' but Chinese Money Is Flooding Into America
Businessweek

• Comment: "Chinese investors have put $24.7 billion into mergers and acquisitions in North America in the first three quarters of this year; that’s up almost threefold over the same period last year and contrasts with a 25 percent drop into Europe. Globally, Chinese deals so far this year amount to $41.6 billion, up 20 percent, with the U.S. accounting for 60 percent of the pie, according to the report."
U.S. says China air defense zone unacceptable, shouldn't be implemented
Reuters

• Comment: "Keeping up U.S. criticism, White House spokesman Jay Carney assailed China for a "dangerous and provocative" move that increased the risk of stumbling into a crisis, and said that was not consistent with the behavior of a major power. "We, the United States, do not recognize and we do not accept it, and will not change the way the United States conducts military operations in the region," Carney told reporters."

Wednesday, December 04, 2013
Biden Urges Restraint by China in Airspace Dispute
New York Times

• Comment: "Chinese leaders pushed back at visiting Vice President Joseph R. Biden Jr. on Wednesday over what they assert is their right to control a wide swath of airspace in the bitterly contested East China Sea. But the Chinese also indicated that they had not decided how aggressively to enforce their so-called air defense identification zone, which has ignited tensions with Japan."
U.S. vice president urges Chinese to challenge their leaders
Reuters

• Comment: "Biden is visiting the Chinese capital at the invitation of his Chinese counterpart Li Yuanchao, though he is also meeting President Xi Jinping. Top of the agenda on his trip is China's new air defense identification zone in the East China Sea, which has rattled Washington, Tokyo and Seoul. Biden has sought to reach out to ordinary Chinese before, visiting a noodle restaurant for lunch during a visit to Beijing in 2011."
Biden Urges Restraint by China in Airspace Dispute
New York Times

• Comment: "After five and a half hours of meetings, in which Mr. Biden laid out the American case against China’s action and Mr. Xi made a forceful counterargument, senior administration officials said: “President Xi took on board what the vice president said. It’s up to China, and we’ll see how things will unfold in the coming days and weeks.”
Biden meets with China's Xi Jinping amid air defense zone dispute
Fox News

• Comment: "Vice President Joe Biden and Chinese President Xi Jinping are discussing efforts to forge a new model for relations between the major powers, but they've made no public comments about a new Chinese air defense zone that's become a major friction point in Asia."

Tuesday, December 03, 2013
Biden won't make headway in China if he repeats 'erroneous' remarks: paper
Reuters

• Comment: "The United States has made clear it will stand by treaty obligations that require it to defend the Japanese-controlled islands, but it is also reluctant to get dragged into any military clash between rivals Japan and China."
China Threatens Japan Ahead of Biden Trip
Washington Free Beacon

• Comment: "The administration for months before China’s imposition of the air zone had said it was neutral in maritime disputes. It then belatedly backed Japan, invoking defense commitments under the U.S.-Japan defense treaty. “In an obvious attempt to placate China, the United States is sacrificing the assurance to our allies in the region that we are a reliable and steadfast security partner,” Sen. James Inhofe (R., Okla.) said in a statement to the Free Beacon."
This one number explains how China is taking over the world
Washington Post

• Comment: "But the SWIFT data show that the renminbi, China's currency (also known as yuan), is fast becoming the dollar's major competition for dominance in global trade. It held only a distant second place in October, to be sure. the dollar accounted for more than 81 percent of global trade finance, to less than 9 percent for renminbi. But the speed with which China's currency has gained market share as a tool for international trade is astonishing. In January 2012, it accounted for less than 2 percent of trade finance, behind the dollar, euro, and yen. One can easily imagine the renminbi being the dominant currency for financing trade within Asia within a few years."
Biden: U.S. ‘deeply concerned’ about China’s air defense move
Washington Post

• Comment: “We, the United States, are deeply concerned by the attempt to change the status quo in the East China Sea,” Biden said during a joint appearance with Japanese Prime Minister Shinzo Abe.It was Biden’s first public comment on the dispute in the East China Sea since arriving in Japan on the first stop in a week-long trip to Northeast Asia. The Obama administration hopes the trip will help ease mounting tensions in the region."
U.S. urges China to lower tensions in East China Sea
Reuters

• Comment: "He urged China to work with Japan and South Korea "to establish confidence-building measures, including emergency communications channels, to address the dangers its recent announcement has created and to lower tensions. "

Monday, December 02, 2013
In the East China Sea, a Far Bigger Test of Power Looms
New York Times

• Comment: "For China, it appears to be an effort by President Xi Jinping to exercise a degree of control over all sources of national power that his immediate predecessor, Hu Jintao, never fully mastered. Interestingly, as China sent its aircraft carrier to another potential trouble spot, the South China Sea, its path avoided the disputed islands, perhaps a sign that the Chinese realize they may have overplayed their hand."
Biden: U.S. 'deeply concerned' about China air defense zone - media
Reuters

• Comment: "The United States remains "deeply concerned" about China's establishment of an air defense zone in the East China Sea, U.S. Vice President Joe Biden, visiting Japan, was quoted by the Asahi Shimbun daily as saying."
U.S. sends new submarine-hunting jets to Japan amid East Asia tension
Reuters

• Comment: "Washington takes no position on the sovereignty of the islands. However, it recognizes Tokyo's administrative control and says the U.S.-Japan security pact applies to them, a stance that could drag the United States into a military conflict it would prefer to avoid."

Sunday, December 01, 2013
In the East China Sea, a Far Bigger Test of Power Looms
New York Times

• Comment: "For China, it appears to be an effort by President Xi Jinping to exercise a degree of control over all sources of national power that his immediate predecessor, Hu Jintao, never fully mastered. Interestingly, as China sent its aircraft carrier to another potential trouble spot, the South China Sea, its path avoided the disputed islands, perhaps a sign that the Chinese realize they may have overplayed their hand."

Saturday, November 30, 2013
Biden goes to Asia to reconnect amid China rumblings and recent Middle East focus
Fox News

• Comment: "American allies Japan and South Korea are barely speaking. China is butting heads with its neighbors and with the U.S. about Beijing's new air-defense zone over a group of tiny islands that have exacerbated long-simmering territorial conflicts. The U.S. on Friday advised American carriers to comply with China's demand that it be told of any flights passing through that defense zone."
US airlines advised to comply with China defense zone
Fox News

• Comment: "As tensions flare over Beijing’s newly declared air defense zone, U.S. airlines are being advised by the U.S. government to comply with China’s demand that it be told of any flights passing through the disputed area."

Friday, November 29, 2013
Airlines Urged by U.S. to Give Notice to China
New York Times

• Comment: "Although the officials made clear that the administration rejects China’s unilateral declaration of control of the airspace over a large area of the East China Sea, the guidance to the civilian airlines could be interpreted in the region as a concession in the battle of wills with China."

Wednesday, November 27, 2013
On Asia trip, Biden to press China on maritime provocations
Washington Post

• Comment: "The official spoke on condition of anonymity to discuss sensitive matters. "But I think that underlying point here is that the strain caused by the series of actions by China in relations with its Asian neighbors is not a good thing. It's not good for the United States; it's not a good thing for anyone. I think the visit allows the vice president to discuss the issue of how China operates in international space and deals areas of disagreement with neighbors."

Tuesday, November 26, 2013
China's Veil of Civil Rights Oppression
New York Times

• Comment: "Yet this reasoned, moderate movement has drawn intolerance and hostility from Beijing. As the Third Plenum shows, the government only wants change on its own timetable, and in accordance with its needs. Ordinary citizens are sidelined. China’s leaders have declared that “special interests” are the greatest obstacle to reform, but an even greater problem is the party elite’s lust to maintain its power, and its terror of a public that wants to help determine its future."

Monday, November 25, 2013
China's Growth Is In Peril, As Is Its Economy
Real Clear Markets

• Comment: "China's high investment levels have led to overcapacity in multiple industries, including steelmaking, shipbuilding and solar panel manufacturing," reports the congressionally created U.S.-China Economic and Security Review Commission. What dooms today's model, argues economist Michael Pettis of Peking University in his book " Avoiding the Fall ," is the debt buildup. At some point, some borrowers - state-owned companies, local governments, property developers - won't repay, banks would sharply curtail lending, or both"
Chinese Reform, U.S. Stasis
New York Times

• Comment: "This new embrace of the market as the “decisive” factor in allocating resources and capital will help address many economic imbalances: overcapacity in manufacturing; the fixing of deposit interest rates on consumer savings accounts by the central bank, which has the effect of subsidizing banks and penalizing savers; and the excess liquidity that results from a tightly controlled currency."

Sunday, November 24, 2013
The Xi manifesto
The Economist

• Comment: "The Central Committee’s market-driven language faltered, however, when addressing one of the most contentious issues of reform, namely the role of state-owned enterprises (SOEs). The document did offer some hope to reformers worried by the initial communiqué’s time-worn assertion that SOEs should constitute the “main body” of the economy."
China’s Xi Is No Gorbachev
Bloomberg

• Comment: "Only a strong state party at the center, in their view, can forestall conflicts abroad and push reforms forward against the vested interests of state-owned enterprises, local party bosses and the virtual “manufacturers of chaos” on the Internet. In this respect, Xi is a true disciple of Deng Xiaoping. Deng was a pragmatist who continuously calibrated opening up and cracking down to both move forward and maintain stability. His loosened grip on the economy brought hundreds of millions out of poverty; his iron fist crushed the Tiananmen Square protests."
Captivity in a Chongqing Labor Camp
Caixan Online

• Comment: "According to CCTV this year, China still had around 310,000 labor camp prisoners. This, added to the wanton violations of civil liberties at these centers, has attracted tremendous criticism in recent years. In Chongqing, the many detentions facilitated by labor camps has been used as a tool to suppress free speech under Bo and Wang."

Thursday, November 21, 2013
U.S. Commission Calls for American Surge to Confront China
Washington Free Beacon

• Comment: "The commission wants Congress to fund Naval efforts that will allow the United States to maintain readiness in the Western Pacific."
As Xi Jinping Reforms China, Expect Power Consolidation, Not Democracy
Businessweek

• Comment: "Democracy is the yielding of power from the party to the people. That’s not what Xi wants. He wants to gather power inward on the theory that only a strong leader can govern a country in which the mountains are high and the emperor is far away."
Factory Growth Slows in China
New York Times

• Comment: "Activity in the vast Chinese factory sector grew at a milder pace in November as new export orders shrank, a preliminary survey showed on Thursday, bolstering expectations that the economy could lose some of its vigor in the fourth quarter as Beijing shifts its focus to structural changes."
Rice Warns China to Curb Cyber Espionage
Washington Free Beacon

• Comment: "The Obama administration is under pressure from the private sector to take action against China for a widespread campaign of cyber attacks that have included theft of both government and corporate secrets, including data on the military’s most advanced warplane, the new F-35 jet fighter."

Wednesday, November 20, 2013
U.S. ambassador to China Gary Locke to step down
Reuters

• Comment: "Locke's departure will leave a temporary vacancy in Beijing at a time when the world's two largest economies must navigate what Chinese President Xi Jinping has called a "major-power relationship"."

Tuesday, November 19, 2013
Chinese vice premier urges better business environment
Xinhua

• Comment: "During the meeting with Chairman and Chief Executive Officer Scott Davis of United Parcel Service, Wang said China will build an open economic system, improve the environment for foreign investment, and actively push forward economic and trade cooperation with the United States."
China's Illegal Fishing Expeditions Threaten World Waters
Businessweek

• Comment: “China’s massive distant-water fishing fleet is problematic for a few reasons, the most prominent being that a significant portion of its catch is illegal, unreported, or unregulated,” the Woodrow Wilson Center’s Katie Lebling wrote in a Nov. 11 research brief. That means it’s impossible to ensure sustainable fishing practices."

Monday, November 18, 2013
The Trouble With China's Reform Plan
Businessweek

• Comment: "Very quickly the reforms will come head to head with vested interests that stand to lose huge power. Those include state enterprises, local governments, banks, well-connected princelings, security authorities, and ultimately the party itself."

Sunday, November 17, 2013
China's Bold Reforms Are Bad News For Markets
Zero Hedge

• Comment: "Surprises include the commitment to reducing the power of state-owned enterprises (SOEs), as this wasn't flagged prior to the meeting. The breadth of price controls to be removed - including water, oil, gas and power - is also a surprise. Though its made headlines, relaxation of the one-child policy was well flagged and actually doesn't go as far as some would have liked. One of the most unexpected reforms is the abolition of labor camps. This was a key gripe of foreign governments as it allowed the detention of people without trial."

Saturday, November 16, 2013
Success of Chinese Leader’s Ambitious Economic Plan May Rest on Rural Regions
New York Times

• Comment: "The Communist Party Central Committee under Mr. Xi endorsed a package of 6o overhaul goals, released to the public on Friday, that the government said would propel China closer to becoming a secure, powerful and well-off country by the end of this decade. The economic goals include expanding the role of markets in energy and natural resources, encouraging private investment in finance and easing state controls on interest rates."
The party's new blueprint
The Economist

• Comment: "More details of what Mr Xi has in mind are likely to emerge in the weeks ahead. Party and government leaders will hold another meeting in December to decide an economic strategy for the coming year. A similar meeting devoted to rural issues will be held later in the month."

Friday, November 15, 2013
China president: China, U.S. should strengthen policy coordination
Reuters

• Comment: "China's president, Xi Jinping, told visiting U.S. Treasury Secretary Jack Lew that China and the United States should strengthen policy coordination during their respective reform and restructuring processes, state media reported on Friday."
China’s Communist Party to Set Up Security Committee Amid Growing Repression
Washington Free Beacon

• Comment: "No other details were provided. But observers in China and outside the country said the new security body could be an attempt by Beijing to streamline its divided and overly bureaucratic decision-making and crisis management structure."
China’s Economic Plans ‘Ambitious,’ U.S. Treasury Secretary Says
New York Times

• Comment: "Mr. Lew arrived in Beijing after visiting four Asian countries that are negotiating with the United States to join the Trans-Pacific Partnership, or T.P.P., trade agreement. When completed, the trade group of 12 countries would represent 40 percent of the global economy."
China pledges free-market blitz but necessary freedom lags
Telegraph

• Comment: "The reforms may meet stiff resistance from vested interests, especially from state behemoths that serve as patronage machines for party bosses. The text said they would have “less role in allocating resources” and would have to transfer 30pc of their profits to the general budget."

Wednesday, November 13, 2013
China’s Vow on Market Gets Tepid Reception in Asia
New York Times

• Comment: “There’s a fair bit of disappointment,” said Chris Weston, chief market strategist at IG in Melbourne, Australia. The new 2020 deadline for reaching “decisive outcomes” provided a useful time frame, he said, but “people were expecting a bit more.” The market, he added, wanted “more meat to sink its teeth into.”
China leaders promise bigger role for free market
USA Today

• Comment: "Chinese leaders are under pressure to replace a growth model based on exports and investment that delivered three decades of rapid expansion but has sputtered. Reform advocates say Beijing should open an array of state-controlled industries to private competition, but any moves to curb the privileges of politically favored companies are likely to face resistance."

Tuesday, November 12, 2013
Chinese Leader Gets More Sway on the Economy and Security
New York Times

• Comment: "Mr. Xi has signaled that he intends to overhaul a wide range of long-entrenched policies, including restrictions on land ownership in rural areas and state control of interest rates charged by banks. He and Prime Minister Li Keqiang have also vowed to wean China’s economy from its dependence on highly polluting industries and extravagant government spending. A full list of overhauls discussed at the party meeting is expected to be made public in the coming days, though many are expected to be phased in only gradually."

Monday, November 11, 2013
Does Xi Jinping really want reform? If so, he would unravel China
The Spectator

• Comment: "Capital is misallocated on a major scale and local governments are deep in debt as the result of a credit splurge launched to get out of the downturn that faced China at the end of 2008. Growth remains much too dependent on investment in infrastructure and property, with consumption playing too small a role. China needs to move up the technological value-added chain. State-owned enterprises have far too much weight."
Three Views of the Communist Party’s Third Plenum
Wall Street Journal

• Comment: "This means an authoritarian approach to strengthen the ruling party’s power combined with a market approach to broaden economic freedom. This mix-up of two seemingly contradictory approaches may not necessarily fail. There are a few precedents for “success” as far as economic growth is concerned. But even the success of such a roadmap will likely paint a bitter scenario for entrepreneurs in the private sector."

Sunday, November 10, 2013
China’s Recovery Gives Boost to Xi Amid Reform Summit: Economy
Bloomberg

• Comment: "China’s economy entered the final quarter of 2013 with an acceleration in manufacturing and exports, momentum that offered confidence to Communist leaders gathering to determine policy shifts for the coming decade. Industrial output rose a more-than-estimated 10.3 percent from a year earlier in October and manufacturing investment strengthened, according to data released Nov. 9 by the National Bureau of Statistics. Customs data the previous day showed overseas sales rebounded by more than forecast."

Saturday, November 09, 2013
Chinese leaders meet to discuss economic agenda
USA Today

• Comment: "The top leaders of China's ruling Communist Party gathered Saturday in Beijing at the start of a four-day, closed-door meeting that could unveil reforms to sustain economic development in the world's second-largest economy"

Friday, November 08, 2013
China's Exports: Back on Track
Businessweek

• Comment: "China’s exports are back on track. After a disappointing September, overseas shipments from China last month rose 5.6 percent, better than expected. The October growth compared with a decline of 0.3 percent in September and was well above the consensus estimate of 1.7 percent. With imports up 7.6 percent, China had a trade surplus of $31.1 billion, the biggest this year."
China Reports Strong Rise in Exports
New York Times

• Comment: "Exports rose 5.6 percent in October from a year earlier, reversing a 0.3 percent slide in September and beating expectations for a much more modest rise, according to data from the Chinese customs administration. Imports confirmed that domestic demand was solid, rising 7.6 percent from a year earlier, a little more rapidly than the 7.4 percent recorded in September."
Bloomberg News Is Said to Curb Articles That Might Anger China
New York Times

• Comment: “He said, ‘If we run the story, we’ll be kicked out of China,’ ” one of the employees said. Less than a week later, a second article, about the children of senior Chinese officials employed by foreign banks, was also declared dead, employees said."

Thursday, November 07, 2013
Chinese Leader’s Economic Plan Tests Goal to Fortify Party Power
New York Times

• Comment: "Yet, Mr. Xi wants to achieve this economic shift away from the state while strengthening the ruling party, which derives power and wealth from its extensive role in the economy. Many analysts say a fundamental overhaul would require a top-down campaign to change prevailing notions about state control over crucial sectors like finance that Mr. Xi shows no signs of embracing."
China Admits It Has An Overcapacity Bubble
Zero Hedge

• Comment: "leaders have ordered local officials to stop expanding industries such as steel and cement in which supply outstrips demand. The call, via video conference, saw planning officials warn local leaders to stop ignoring orders to reduce overcapacity in industries including steel, cement, aluminum and glass, "Those who still violate discipline will be heavily punished." One chief engineer exclaimed, "the scale of overcapacity is unprecedented."

Wednesday, November 06, 2013
Chinese Leader’s Economic Plan Tests Goal to Fortify Party Power
New York Times

• Comment: "Yet, Mr. Xi wants to achieve this economic shift away from the state while strengthening the ruling party, which derives power and wealth from its extensive role in the economy. Many analysts say a fundamental overhaul would require a top-down campaign to change prevailing notions about state control over crucial sectors like finance that Mr. Xi shows no signs of embracing."
China military hackers persist despite being outed by U.S.: report
Reuters

• Comment: "There are no indications the public exposure of Chinese cyber espionage in technical detail throughout 2013 has led China to change its attitude toward the use of cyber espionage to steal proprietary economic and trade information," the commission said in a draft of their annual report to Congress."
China's Communists want unattainable goal of affluence without freedom
Telegraph

• Comment: "You can make too much of Mr Xi's Maoist rhetoric. There is a view among sophisticates that he is throwing bones to the dinosaur Left in order to protect his flank as he embarks on free-market reforms and prepares his strike on the Party's vested interests. Foreigners with a large amounts of money at stake in China love this hypothesis. China experts are deeply divided. Minxin Pei says the reforms are skin deep and that the door is fast closing on a benign outcome."

Tuesday, November 05, 2013
China’s Leaders Confront Economic Fissures
New York Times

• Comment: "Complicating matters is that many young people are avoiding lower-end service jobs as well as factory jobs. The high school graduation rate in China is rapidly approaching three-quarters of young people, similar to the United States. The number of university graduates in China has nearly quintupled since 2000."
On Becoming China’s Farm Team
New York Times

• Comment: "The other upsides are for the Chinese, and of course, Smithfield shareholders, though Smithfield executives would have you believe otherwise. Larry Pope, Smithfield’s C.E.O., who is no doubt glowing about what turned out to be a $34-per-share premium, was cheerleading in his testimony this past summer before the Senate committee on Agriculture, Nutrition and Forestry. He said that the purchase -- the biggest ever of a United States company by a Chinese one -- “provides enormous benefits … for American manufacturing and agriculture,” and claims it will result in more production, jobs and exports."

Sunday, November 03, 2013
Xi: China confident of sustainable economic growth
Xinhua

• Comment: "There are sufficient factors supporting China's economic development," said the president. "We are confident that the Chinese economy will keep growing in a sustained and healthy way."
Ahead of third plenum, Xi assures foreigners of economic reforms
South China Morning Post

• Comment: "We are currently changing our way of development, adjusting our economic structure, accelerating our new style of industrialisation, promoting technology, urbanisation and agricultural modernisation," Xi said. State media reports carried no reference to political reform, which few expect Xi to pursue at the plenum."
How China Profits From Our Junk
The Atlantic

• Comment: "When people ask me why China needs all the scrap metal Americans send to them, I wish I could show them the view from my hotel room that day. 20 stories below is that shopping mall, as big as anything I grew up visiting in suburban Minneapolis. It required steel for the structure, copper and aluminum for the wiring, brass for bathroom fixtures, and stainless steel for all of the sinks and railings. And that’s just the start."

Friday, November 01, 2013
China Manufacturing Up but Weakness Remains
Businessweek

• Comment: "The official PMI report suggests China’s economic growth should reach its annual 7.5 percent target, said Zhang Liqun, an economist with the State Council’s Development Research Center, according to the logistics federation’s statement, reported Bloomberg News. However, the foundation of growth is “not solid,” warned Zhang. Companies are “still relatively cautious about market prospects,” he said."
Chinese I.P.O.’s Try to Make a Comeback in U.S.
New York Times

• Comment: “Not the recent history of Chinese companies dogged by allegations, and some evidence, of accounting fraud and other suspect practices,” he added. “Instead, the current group is looking back farther in history, to a time when some Chinese Internet companies with business models derived, borrowed or pilfered from successful U.S. companies were able to go public in the U.S. to great acclaim."
Get Ready: China's Third Plenum Will Open Nov. 9
Businessweek

• Comment: "In particular, they warn “one area that is unlikely to feature in next month’s discussions is any major upheaval to state-owned industry.” That’s what we predicted in an article published here earlier in October; there are simply too many powerful vested interests, including the princelings, of which Xi Jinping is a prominent member, that benefit from the privileged position granted the state sector now."

Tuesday, October 29, 2013
China Is Now the OPEC of Rare Earths
Real Clear World

• Comment: "Wrong. The WTO win is far more likely to distract U.S. policymakers from the larger challenge of developing a strategic resource policy -- and prolong U.S. resource dependencies to the detriment of our economic strength and national security. China's WTO loss masks a strong position for Beijing, which has at least three paths forward that will result in no compelled changes whatsoever in China's rare earths export policy."

Monday, October 28, 2013
China's impossible contradiction
Telegraph

• Comment: "It then went on to say that China has picked the low-hanging fruit of cheap-labour, investment-led, export-led, catch-up growth. It can longer rely on imported technology to keep growth humming. (It has averaged just under 10pc since Deng Xiaoping began to throw open the economy in 1978.) "China has reached another turning point in its development path when a second strategic, and no less fundamental, shift is called for," it said."
Unprecedented Economic Reforms Ahead, Says Top China Official
Businessweek

• Comment: "The meeting “will focus on studying comprehensive and deep reform,” said Yu Zhengsheng, a member of China’s elite policymaking body, the seven-member Politburo Standing Committee, reported Xinhua on Oct. 26. “The depth and strength of the reforms will be unprecedented and will promote profound changes in every area of the economy and society,” said Yu, at a meeting on Cross-Strait relations held in China’s southern city of Nanning."

Sunday, October 27, 2013
Xi Jinping appears poised to unveil sweeping economic changes
South China Morning Post

• Comment: "The plan covered eight areas, ranging from a dramatic loosening of government approval procedures and a break up of state sector monopolies to making the yuan fully convertible within 10 years and more controversial land reforms."
China Signals ‘Unprecedented’ Policy Changes on Agenda at Plenum
Bloomberg

• Comment: "Premier Li Keqiang has pledged to cut the state’s role in the economy, change the financial and fiscal systems, and overhaul land and household registration rules to sustain growth. Analysts surveyed by Bloomberg News this month said policies flowing from the meeting, called the third plenum, will reduce the odds of a severe slowdown and help China become a high-income country by 2030."

Saturday, October 26, 2013
With Snap of Group Photo, 3 Members of Advocacy Group Face Trial in China
New York Times

• Comment: "The previously little-known trio has attracted widespread attention as the first detainees associated with the New Citizens Movement to face trial since the government started to round up supporters in March. The movement is a loose network of legal advocates, human rights campaigners and disgruntled citizens that began to coalesce into a more coordinated effort last year. It has demanded greater political rights, equal educational rights for all, and the disclosure of officials’ assets at a time when the comfortable lives of some officials have become a source of intense public resentment."

Friday, October 25, 2013
Duty exemptions for Shanghai FTZ imported equipment
Xinhua

• Comment: "The exemption will be applied to such enterprises' imports of machines, equipment and other necessary goods for manufacturing, according to a new tax policy released by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation."
China Introduces a New Lending Rate
New York Times

• Comment: "However, China maintains a ceiling on deposit rates, and removing the ceiling is seen as the most critical step for Beijing to take to let market forces take over and introduce more competition in the banking sector, which is dominated by big, state-owned institutions."

Thursday, October 24, 2013
The China Threat: Fido Edition
Washington Free Beacon

• Comment: "Since 2006 the FDA reported that 3,000 dogs have sickened and 600 have died from mysterious illnesses. What the cases have had in common was the consumption of jerky treats from China."

Monday, October 21, 2013
China Arrests Prominent Businessman Who Backed Rights Causes
New York Times

• Comment: "The police in Beijing have formally arrested a prominent Chinese businessman who turned his energies and wealth to supporting human rights causes, his lawyer said on Monday. The arrest of the businessman, Wang Gongquan, was another step in the Communist Party’s drive to deter dissent, supporters said."

Sunday, October 20, 2013
American Debt, Chinese Anxiety
New York Times

• Comment: "Foreign entities — governments, companies and individuals — hold nearly half of the publicly held debt owed by the United States. Of China’s $3.6 trillion in foreign exchange reserves, about 60 percent is estimated to be held in U.S. government securities. As foreign exchange reserves have soared over the last decade, Chinese monetary authorities have attempted to diversify away from dollar-denominated assets, with limited success. The motivation for diversification is understandable: Since July 2005, the Chinese currency has been appreciating against the U.S. dollar, so that in terms of local purchasing power, dollar-denominated holdings have been losing value. "

Saturday, October 19, 2013
Easing measures boost free trade zone
Xinhua

• Comment: "Zhou Zhenhua, director of the Development Research Center affiliated to the Shanghai government, said the main purpose of the zone is not to make preferential policies to attract businesses in the short term.Instead, it is an open market that will bring economic reforms that reduce the power of the government and enhance that of the market, said Zhou."
Profits at China's SOEs rise 10.5 pct
Xinhua

• Comment: "China's state-owned enterprises (SOEs) pocketed 1.77 trillion yuan (287.7 billion U.S. dollars) of profits in the first three quarters of 2013, an increase of 10.5 percent from a year earlier, a Ministry of Finance statement said Friday."

Thursday, October 17, 2013
Beijing to Unveil New Policies to Shore up Foreign Trade
Caixan Online

• Comment: "The Chinese government is going to introduce more supportive policies to shore up the country's foreign trade which is slowing down amid depressing demands from emerging markets."

Tuesday, October 15, 2013
Watch what China does with US debt, not what it says
The Guardian

• Comment: "But there is a darker side to this. For all the talk of reform, China still refuses to give up its mercantilist trade policy. It is holding down the yuan to cling onto global market share and protect the wafer-thin margin of its exporters, not always successfully."
Export Fair in China Loses Steam
New York Times

• Comment: "China announced on Saturday that its exports dropped 0.25 percent in September in dollar terms compared with a year ago, below economists’ expectations of 6 percent growth and far below the double-digit growth that China enjoyed for most of the last decade. In terms of the Chinese renminbi, which is what counts for Chinese exporters and overall Chinese economic output, exports fell a startling 3.6 percent last month."

Monday, October 14, 2013
Chinese state media calls for ‘de-Americanised’ world after US shutdown
South China Morning Post

• Comment: “As US politicians of both political parties (fail to find a) viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanised world,” the commentary on state news agency Xinhua said. In a lengthy polemic against American hegemony since the second world war, it added: “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated."

Friday, October 11, 2013
China's Third Plenum: Get Ready for Disappointment?
Businessweek

• Comment: "Of course, that will include the now familiar refrain that China must transform its economy to one driven much more by consumption and services and less by investment. We will also hear that China intends to upgrade its industries to produce higher-value, technology-oriented products, while stepping away from its labor-intensive, energy-wasting, and polluting role as factory to the world—so serving less and less as a maker of shoes, toys, textiles, and cheap electronics."

Thursday, October 10, 2013
China Signs Currency Agreement With E.C.B.
New York Times

• Comment: "The deal is the latest of a string of currency swaps that China has created with other nations to promote usage of the yuan in global commercial and financial transactions, with the ultimate goal of rivaling the dollar as a reserve currency."

Wednesday, October 09, 2013
China's Bo appeals life sentence
USA Today

• Comment: "Chinese politician Bo Xilai, who ascended and then fell from the commanding heights of the Communist Party, has appealed his guilty verdict and life sentence for graft and abuse of power, Chinese authorities revealed Wednesday."

Tuesday, October 08, 2013
China enjoys Obama's absence in Asia
USA Today

• Comment: "The government in Beijing has long been uneasy about Obama's strategic goal of re-balancing U.S. foreign policy toward Asia, which many here saw as an attempt to contain China. The Wen Wei Po newspaper, another communist paper based in Hong Kong, said the impasse in Washington proves that the United States no longer has the clout to back up its Asian strategy"
Obama: China benefits from missed trip, U.S. credibility suffers
Reuters

• Comment: "Obama had hoped to advance talks for a trade pact known as the Trans-Pacific Partnership, or TOP, during the Asia trip. Talks over the pact involve 12 nations and aim to establish a free-trade bloc that would stretch from Vietnam to Chile to Japan. The United States expressed hope on Tuesday it could seal the pact by the end of the year despite resistance from some countries and Obama's absence from the regional summit."

Monday, October 07, 2013
China warns U.S. about debt default
USA Today

• Comment: "'We hope the United States fully understands the lessons of history,' Zhu said, referring to a deadlock in 2011 that led to a downgrade of the U.S. credit rating to "AA+" from "AAA" by agency Standard & Poors."

Sunday, October 06, 2013
A Smoggy Sunday in Beijing
USA Today

• Comment: "Chinese media is now quite aggressive in its coverage of not just air pollution but other types of environmental degradation. Today's smog is among the top stories on the major news portals, complete with slideshows of the haze. And the most recent cover story of Caixin magazine, one of China's leading business publications, looks at cancer villages cause by pollution in the watershed the Huai River, of one of China's largest rivers."

Saturday, October 05, 2013
A damp squib
The Economist

• Comment: "It did appear that Mr Li was enamoured of the idea of launching the Shanghai zone now, in advance of the November meetings, to make plain the leadership’s commitment to reform. But he undermined that case by failing to show up in Shanghai for the big unveiling (pictured). In fact, save one official, not a single top figure from the government or party leadership bothered to turn up. The bosses of China’s top regulatory agencies also snubbed the event, lending credence to the rumour that their agencies are threatened by proposed reforms and are engaged in turf battles that may water them down."
WFB’s Bill Gertz Discusses The Growing Chinese Threat on ‘Secure Freedom Radio’
Washington Free Beacon

• Comment: "Bill Gertz, the Senior Editor of the Washington Free Beacon guest hosted “Secure Freedom Radio” Friday to discuss the growing relationship between the US and Japan in response to the Chinese threat in the region. Gertz discussed this topic in-depth with Rick Fisher, the author of “China’s Military Modernization”."

Friday, October 04, 2013
China's Xi courts Malaysia; Obama stays home
USA Today

• Comment: "Chinese President Xi Jinping courted Malaysia on Friday with a huge trade pact, closer military ties and simple flattery — telling the Malaysian prime minister he felt they were old friends even on their first acquaintance."
China’s Economy, Back on Track
New York Times

• Comment: "China no longer has the luxury to delay needed reforms. China’s economic output expanded nearly sixfold between 2002 and 2012, from $1.5 trillion to $8.3 trillion, but that growth fostered complacency. True, it weathered the financial crisis through giant spending on public works, but that only put off the day of reckoning. The presumption that China can simply grow its way out of any problems no longer holds. Growth is slowing, inequality has widened, provincial and local government debts have climbed. China’s export-oriented sectors face harsh headwinds, from sluggish consumer demand in advanced markets to rising labor costs at home."

Thursday, October 03, 2013
China launches charm offensive as Obama shortens Asia trip
USA Today

• Comment: "So far, Obama's 'pivot' to Asia can be summed up in three letters: MIA," said Sadanand Dhume, a resident fellow of the American Enterprise Institute, a Washington public policy think tank."

Wednesday, October 02, 2013
Another Shutdown Victim: U.S. Efforts to Offset China
New York Times

• Comment: "For now, the White House is clinging to the two remaining stops on Mr. Obama’s tour: a Pacific Rim economic summit meeting in Indonesia, at which he hopes to meet with President Vladimir V. Putin of Russia, and the East Asia Summit, in the sultanate of Brunei, where he is scheduled to meet the new prime minister of China, Li Keqiang."
Why Obama Shouldn't Cancel His Asia Trip
Businessweek

• Comment: "Besides vowing to make the TPP a reality (at least until it gets to Congress), President Obama could take steps to head off the protectionist climate building up in some Asian nations. He could offer to unilaterally ease some American restrictions on high-profile imports from such countries as Indonesia and the Philippines, where legislators have pushed for new laws that could severely inhibit foreign investment. At the same time, the president could reinforce to Southeast Asian leaders that, if they fail to meet their own 2015 deadline for establishing a free trade area for the 10 nations in the region, that failure would come with severe costs in potential foreign direct investment."

Monday, September 30, 2013
Free-Trade Rumors Spark 'Shanghai' Stock Fever
Businessweek

• Comment: "The Shanghai free-trade zone, covering 28 square kilometers of the city’s Pudong district, will open for business on Sept. 29. “Priority will be given to easier investment access and greater openness in trade in services,” Li said in a speech in Dalian on Sept. 11. “We have also adopted measures to facilitate foreign trade and promote a steady growth in import and export.”

Sunday, September 29, 2013
Experimental Free-Trade Zone Opened in Shanghai
New York Times

• Comment: "The government has not yet given a detailed outline of how the pilot zone — which covers 29 square kilometers, or about 11 square miles, of ports and logistics areas — is expected to operate. But on Friday, the State Council said foreign and private companies would soon be allowed to invest freely in banks, shipping ventures, travel agencies and health and medical insurers that are set up in the experimental zone."

Friday, September 27, 2013
China to join talks on trade in services
China Daily

• Comment: "The Trade in Services Agreement was led by the United States and the European Union, along with more than two dozen economies. The talks were launched last year to break the stalemate in the World Trade Organization talks. Trade in services refers to the sale and delivery of an intangible product, such as tourism, financial services and telecommunications services."
Why China Will Disappoint the Pessimists Yet Again
Bloomberg

• Comment: "By the end of this year, China’s gross domestic product will be roughly $9 trillion, making its economy comfortably more than half the size of the U.S., and half as big again as Japan. I recall once projecting that China might be as big as Japan by 2015. The country’s far ahead of that optimistic schedule."
Shanghai Free-Trade Zone Splits Analysts on Benefits to Economy
Bloomberg

• Comment: "Any boost from the zone, set to officially open next week, would help Premier Li Keqiang sustain 7 percent annual expansion this decade and add to potential engines of growth including urbanization. Economists surveyed over the past week also indicated they expect gross domestic product gains to moderate next year after bouncing back this quarter."

Thursday, September 26, 2013
Bringing home the bacon: Chinese savor Smithfield deal
USA Today

• Comment: "The line was meant to trumpet ruling Communist Party propaganda that seeks to counter the "American Dream" with one of its own. But China's International Finance News may have said it best with its headline: "Shuanghui 'eats' American pigs."
China and the Third Industrial Revolution
Businessweek

• Comment: "China has a number of agendas. China has to come up with a new economic reform plan under the new leadership. Secondly it has to urbanize the country. Third it has to bring western China up to par with its eastern part. And finally, it has to deal with the pollution that is literally killing its people."

Wednesday, September 25, 2013
China eases government market intervention
Xinhua

• Comment: "Among the first batch of projects affected by the amendments was gas power generation and approval has now been either cut or delegated to lower levels. Access for foreign investors in these areas has also been relaxed.Wednesday's meeting also exempted another 75 items from central government approval taking the total number to 221 since the new leadership assumed office."
China Makes Life Hard for Multinationals
Businessweek

• Comment: "China fired a warning shot for foreign business in late July. A senior official in a closed-door meeting in Beijing admonished the in-house counsels of more than two dozen European and U.S. multinationals, saying their China operations may be investigated for anticompetitive behavior. Come clean and confess, the official from China’s planning commission advised his audience. Shortly afterward, Chinese authorities announced a record $110 million in fines on five overseas baby formula makers for price fixing. One Chinese company was penalized."

Tuesday, September 24, 2013
Smithfield Shareholders Approve Shuanghui Deal
New York Times

• Comment: "The deal, which is expected to close Thursday, will be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion including debt. Its sale to Hong Kong-based Shuanghui comes at a time of serious food safety problems in China, some of which have involved Shuanghui, which owns food and logistics enterprises and is the largest shareholder of China's biggest meat processor."
Strong Chinese Manufacturing Data Points to Turnaround
New York Times

• Comment: "A China manufacturing index hit its highest level in six months on Monday, offering the first important measure of how the country’s economy performed in September and showing that a tentative reacceleration has continued as government support and firmer demand for Chinese exports have gained traction."

Sunday, September 22, 2013
China Manufacturing Gauge Increases to Six-Month High: Economy
Bloomberg

• Comment: "The preliminary reading of 51.2 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compared with a 50.9 median estimate from 14 economists surveyed by Bloomberg News. The gauge was at 50.1 in August."
China's Bo Xilai, Still Defiant, Sentenced to Life in Prison
Businessweek

• Comment: "Announcing the verdict on its microblog, the Intermediate People’s Court in the provincial capital of Jinan, Shandong, ruled that the 64-year-old Bo was guilty of bribery, embezzlement, and abuse of power. Along with his life sentence, the former party secretary of Chongqing and onetime contender for the highest ranks of China’s leadership will have his assets seized. Although the court noted he has the right to appeal, a reversal of the verdict would be unlikely."
Chinese court gives Bo Xilai life sentence
Politico

• Comment: "A Chinese court has convicted fallen politician Bo Xilai of corruption and sentenced him to life in prison, capping one of the country's most lurid political scandals in decades."

Saturday, September 21, 2013
China Inc's balance sheet is flashing danger signals
South China Morning Post

• Comment: "Meanwhile, leverage is rising and overcapacity mounting, especially in the state-owned heavy industrial sector. At the same time the state of China's accounts receivable is deteriorating, as payment times have almost doubled from 30 to nearly 60 days.With command of the banking system and control of China's capital account, Beijing can postpone the reckoning for a year or two, but only at the cost of exacerbating the depth of the eventual slump. "Recession is inevitable," Tulloch warns. "China has to have an economic contraction to cleanse the system."

Friday, September 20, 2013
Hacking U.S. Secrets, China Pushes for Drones
New York Times

• Comment: "The hacking operation, conducted by a group called “Comment Crew,” was one of the most recent signs of the ambitions of China’s drone development program. The government and military are striving to put China at the forefront of drone manufacturing, for their own use and for export, and have made an all-out push to gather domestic and international technology to support the program."

Thursday, September 19, 2013
China Increased Holdings of Treasuries in July as Yields Surged
Bloomberg

• Comment: "China’s stake increased by $1.5 billion in July, or 0.1 percent, to $1.277 trillion, after declining the prior month, according to Treasury Department data released yesterday. Treasuries held by Japanese investors, who have the second largest stake in U.S. government debt, rose to a record."

Wednesday, September 18, 2013
Verdict against China's Bo Xilai expected Sunday
USA Today

• Comment: "A Chinese court announced that it will deliver a verdict Sunday against disgraced politician Bo Xilai on charges of bribery, embezzlement and abuse of power in a case set in motion by his wife's murder of a British businessman."
Verdict against China's Bo Xilai expected Sunday
USA Today

• Comment: "The verdict may appear to be come from the court, but it is from the highest leadership," said Han Deqiang, an economist at Beijing University of Aeronautics and Astronautics and a staunch supporter of Bo. "If we simply go by the law of innocence until proven, he is clearly not guilty, but the prosecution presumed his guilt and there are other factors such as politics," Han said."

Monday, September 16, 2013
World Bank Says China Will Reach G.D.P. Target for Year
New York Times

• Comment: "Still, some analysts expect China to overtake the United States as the world’s biggest importer of crude oil as soon as 2017."
China Detains a Billionaire for Activism
New York Times

• Comment: "A Chinese billionaire venture capitalist who has strongly advocated more liberal political and social policies was detained Friday by Beijing police officers, friends of the businessman said."

Sunday, September 15, 2013
China makes clear full democracy not on cards in choosing Hong Kong leader
Reuters

• Comment: "Zhang's open letter, sent to a major pro-democracy group, the Civic Party, quoted the city's mini-constitution, the Basic Law, as saying that all candidates could only be nominated by a "broadly representative nominating committee". "There is no other option," Zhang said in the letter.That means the nominations will instead come from a small election committee stacked with Beijing loyalists who would essentially veto any opposition candidates from running."
Shanghai Trade Zone to Open This Month as Li Tackles Reform
Bloomberg

• Comment: "The zone may allow freer yuan convertibility, liberalize interest rates and relax restrictions on foreign investment as part of Li’s drive to sustain growth by shifting the economy toward services and consumption from investment and exports. It also pushes forward China’s goal of making Shanghai a global financial center by 2020 that was first laid out in 2009, threatening to undermine Hong Kong’s role."

Saturday, September 14, 2013
In China, the Dangers of Due Diligence
New York Times

• Comment: "The broadcast not only stirred immediate alarm among foreigners in China, but also cast a light on a murky corner of business life in the world’s most dynamic economy. Until they disappeared in July, Mr. Humphrey and Ms. Yu ran ChinaWhys, one of many firms in the hush-hush industry of consultants and investigators in Beijing, Shanghai and Hong Kong that promise to guide foreign corporations through China’s opaque and often treacherous business environment."

Tuesday, September 10, 2013
China August Industrial Output Rises 10.4%
Bloomberg

• Comment: "Factory production rose 10.4 percent from a year earlier, the National Bureau of Statistics said in Beijing today, Aggregate financing was 1.57 trillion yuan ($257 billion), the central bank said, topping the median analyst estimate of 950 billion yuan. UBS AG said China’s liquidity and credit squeeze appears over, while Societe Generale SA said corporate and local-government debt is rising from already alarming levels."
Crackdown on Bloggers Is Mounted by China
New York Times

• Comment: "Worried about its hold on public opinion, the Chinese government has pursued a propaganda and police offensive against what it calls malicious rumor-mongering online. Police forces across the country have announced the detentions of hundreds of microblog users since last month on charges of concocting and spreading false claims, often politically damaging. For weeks, a torrent of commentaries in the state-run news media have warned popular opinion makers on China’s biggest microblog site, Sina’s Weibo service, to watch their words."
China's Factory Owners Hunt for Energy Savings
Businessweek

• Comment: "For decades after China started trading with the U.S. in 1979, most factory managers didn’t focus on electricity prices. Demand from abroad was expanding, labor was cheap, and the exchange rate favored China’s exporters. But conditions have changed since demand softened in the wake of the 2008 financial crisis. Chang says his labor costs have doubled, and the exchange rate is less favorable. Increasing energy efficiency is one way to shore up the bottom line."

Monday, September 09, 2013
Do China's Strong Exports Herald Economic Recovery?
Businessweek

• Comment: "China will meet its target of 8 percent growth in trade this year, announced China’s commerce minister, Gao Hucheng, according to a report on China National Radio, also on Sept. 8. “In August exports maintained the positive momentum that started in July and that is a key driver of the cyclical recovery we observe in China,” writes Hong Kong-based Louis Kuijs, chief China economist for the Royal Bank of Scotland (RBS:LN) in a research note on Sept. 9. “Better export growth in China reflects more constructive global demand.”

Sunday, September 08, 2013
Economists React: China Exports Up Again in August
Wall Street Journal

• Comment: "China posted its biggest trade surplus of the year in August suggesting that appreciation pressures on the yuan are likely to continue in the foreseeable future. The market turbulence in emerging economies, especially in India and Indonesia, has made yuan a center of stability."
China Trade Rebounds in Further Sign Economy Stabilizing
Bloomberg

• Comment: "The slowdown “reflects the weak economic recovery domestically,” said Hu Yifan, chief economist at Haitong International Securities Group in Hong Kong. “But we expect the trend to reverse in coming months, along with rising demand, on a series of supportive policies” announced by the government, she said. In addition to speeding up investment in infrastructure, the government has cut taxes and boosted support for industries including energy conservation and technology. The State Council in July approved a free trade zone in Shanghai to trial economic and financial reforms."
Economic Reports Ease Concerns in China
New York Times

• Comment: "China’s trade surplus rose in August to its highest level this year, while inflation remained under control, government data released on Sunday and Monday showed, in further signs that the Chinese economy and possibly the global economy are faring a little better as the summer ends."
Fighting Corruption in China
New York Times

• Comment: "One step forward, two steps back."

Friday, September 06, 2013
Business group: Foreign companies in China feel unfairly singled out by government probes
Washington Post

• Comment: "In pricing investigations, the chamber’s member companies believe “there is a disproportion of how foreign companies are covered on this issue” compared with Chinese rivals, said its president, Davide Cucino. He said foreign companies also believe accusations against them receive more prominent publicity from state-controlled media."
China free trade zone to liberalise 19 sectors
Global Post

• Comment: "A draft plan for China's free trade zone in the commercial hub Shanghai seen by AFP proposes further liberalisation in 19 distinct business sectors."
Chinese, U.S. presidents hold second meeting in three months
Xinhua

• Comment: "Chinese President Xi Jinping and his U.S. counterpart Barack Obama met here Friday for talks on bilateral ties and other issues of common concern.Xi said the meeting reminded him of his last summit with Obama at the Annenberg estate in the U.S. state of California in June, where the two presidents reached important consensus on forging a new type of major-country relationship that features mutual respect and win-win cooperation."
U.S. approves Chinese company’s purchase of Smithfield
Politico

• Comment: "The deal gives Shuanghui a premium U.S. food brand at time when a series of food scares have rocked Chinese consumer confidence in domestic food products."
U.S. clears Smithfield's acquisition by China's Shuanghui
Reuters

• Comment: "The U.S. Committee on Foreign Investment has cleared the way for Shuanghui International Holdings Ltd's proposed $4.7 billion acquisition of Smithfield Foods Inc, the companies said on Friday."
U.S. Security Panel Clears a Chinese Takeover of Smithfield Foods
New York Times

• Comment: "Senator Debbie Stabenow, Democrat of Michigan and chairwoman of the committee, said in a statement: “It remains unclear what factors the committee took into account in making its decision. We still do not know if the potential impact on American food security, the transfer of taxpayer-funded innovation to a foreign competitor, or China’s protectionist trade barriers were considered. It’s troubling that taxpayers have received no assurances that these critical issues have been taken into account in transferring control of one of America’s largest food producers to a Chinese competitor with a spotty record on food safety.”

Thursday, September 05, 2013
China settles record amount of its trade in yuan
Asahi Shinbun

• Comment: "The amount of trade paid for in renminbi reached 2.05 trillion yuan (33 trillion yen, or $334.9 billion) between January and June, up 64 percent from the same period the previous year and a record for a half-year period, according to the People's Bank of China."

Tuesday, September 03, 2013
Xi Says China Chose Slowdown to Allow Economic Adjustment
Bloomberg

• Comment: "China would “rather bring down the growth rate to a certain extent in order to solve the fundamental problems” hindering long-run development, Xi said in a written interview yesterday with media outlets from Russia, Turkmenistan, Kazakhstan, Uzbekistan and Kyrgyzstan, according to a transcript distributed by the official Xinhua News Agency."

Saturday, August 31, 2013
The Dog That (Almost) Roared
New York Times

• Comment: "The transparency was partly counterfeit. Many reporters couldn’t get into the courtroom, portions of testimony were clearly redacted, and a few of the official photos looked staged, a possibility noted on social media when Bo, a tall man, was shown wedged between two court officers who were both, against all odds, even taller. Suddenly, miraculously, the strapping hero was a humbled pipsqueak, which was pretty much how the government wanted him seen. And his Chinese audience feasted on a layer cake of fakery: the fraudulently open trial of an allegedly fraudulent populist made to look fraudulently small."

Friday, August 30, 2013
Chinese Chicken Processors Are Cleared to Ship to U.S.
New York Times

• Comment: "Initially, the companies will be allowed to export only cooked poultry products from birds raised in the United States and Canada. But critics predicted that the government would eventually expand the rules, so that chickens and turkeys bred in China could end up in the American market."

Thursday, August 29, 2013
China Rongsheng Seeks Funding as Ship Order Slump Cuts Cash
Bloomberg

• Comment: "The shipyard will have sufficient funds to meet obligations over the next one year, based on a review of its cash-flow projections, the company said yesterday. Rongsheng’s ability to raise funds and meet payments will determine how much China needs to intervene in the sector after the government earlier this month issued a three-year package to support the troubled shipbuilding industry, the world’s biggest."

Wednesday, August 28, 2013

Monday, August 26, 2013
Over News of Clash, a Shroud of Silence in Xinjiang
New York Times

• Comment: "Although the state media said that no one died during the confrontation between villagers and armed police officers, numerous sources say that dozens were shot dead on the highway that connects Hanerik to Hotan, which the Chinese call Hetian. Exile groups say the death toll may exceed 100. “One thing is certain — the truth bears little resemblance to what the government says happened that day,” Dilxat Rexit, a spokesman for the World Uyghur Congress, said from Sweden. “The Chinese are trying their best to impose a cover-up.”

Sunday, August 25, 2013
China 7.5% Target Seen in Reach as U.S. Demand Picks Up: Economy
Bloomberg

• Comment: "A majority of the analysts polled said that the People’s Bank of China will widen the yuan’s trading band before the end of this year, with most of that group saying that the change will take place in the fourth quarter."
Exclusive: Tough-talking China pricing regulator sought confessions from foreign firms
Reuters

• Comment: "A senior Chinese official put pressure on around 30 foreign firms including General Electric and Siemens at a recent meeting to confess to any antitrust violations and warned them against using external lawyers to fight accusations from regulators, sources said."
Chinese-American Commentator and Investor Is Arrested in Beijing
New York Times

• Comment: "The government has been cracking down on social media activists who have exposed corruption or stirred up interest in social issues. Some prominent activists have been detained, including a journalist and people working at public relations firms."

Friday, August 23, 2013
Formal Arrest of Advocate Is Approved by China
New York Times

• Comment: "The authorities in Beijing have formally arrested one of China’s best-known human rights advocates on charges of disturbing public order, his lawyer and a friend said on Friday. It was the latest escalation in a case that has prompted a protest in China and criticism from the United States government."

Thursday, August 22, 2013
Chinese Manufacturing Grows More Than Expected
New York Times

• Comment: "The preliminary purchasing managers’ index for August, compiled by the research firm Markit and released by the British bank HSBC, jumped to 50.1 points from 47.7 in July, showing a swing to expansion from contraction, with a figure of 50 the dividing line. The increase, to a four-month high, easily beat analysts’ expectations."

Tuesday, August 20, 2013

Monday, August 19, 2013
Update: China PBOC's Zhou Says Will Fine-Tune Policy As Needed
MNI

• Comment: "The People's Bank of China will continue to implement the official "prudent" monetary policy in the second half of the year but is ready to "fine-tune" that stance as needed, Governor Zhou Xiaochuan said in an interview with state television."
Cyber-disconnect at joint US-China press conference. Is that a problem?
Christian Science Monitor

• Comment: "Certainly, the Peoples Liberation Army (PLA) has engaged in state-sponsored cyberattacks, according to an oft-cited report by the cybersecurity firm Mandiant.The group uncovered a cybercell that it dubbed APT1, saying it is responsible for hundreds of web-based attacks. The cell, it concluded, “is likely government-sponsored and one of the most persistent of China’s cyber threat actors.”
China Poised to Gain Control as Shipyard Shakeout Looms
Bloomberg

• Comment: "State-run companies are at an advantage because they have easier access to credit to pay workers, buy raw materials and provide financing for clients. China State Shipbuilding Corp., China Shipbuilding Industry Corp. and other government-backed companies won three-quarters of all orders in the first half of this year. Though state companies may buy some private yards, many will likely have to close since their capacity isn’t needed."
China to Ease Foreign Investment Rules for New Free Trade Zones
Bloomberg

• Comment: "China is boosting efforts to attract foreign companies after investment from abroad fell last year for the first time since the global financial crisis. Free trade zones that will be allowed to cut bureaucracy and test financial liberalization may offer incentives that help the government maintain economic growth of at least 7 percent a year as the export- and investment-led model of expansion runs out of steam."
Hagel says he will visit China next year
Fox News

• Comment: "No one should fantasize that China would barter away our core interests, and no one should underestimate our will and determination in defending our territory, sovereignty and maritime rights," Chang said through an interpreter."
U.S., China to expand military exchanges amid rows over cyber security, territory
Reuters

• Comment: "Their talks at the Pentagon represent efforts by Washington and Beijing to find constructive ways to deal with strains over reported Chinese cyber-attacks against U.S. government agencies and businesses. There are also growing concerns about China's assertiveness in territorial disputes with U.S. allies in Asia, notably Japan and the Philippines."
China Takes Aim at Western Ideas
New York Times

• Comment: "These seven perils were enumerated in a memo, referred to as Document No. 9, that bears the unmistakable imprimatur of Xi Jinping, China’s new top leader. The first was “Western constitutional democracy”; others included promoting “universal values” of human rights, Western-inspired notions of media independence and civic participation, ardently pro-market “neo-liberalism,” and “nihilist” criticisms of the party’s traumatic past."

Sunday, August 18, 2013
Misrule of Law
New York Times

• Comment: "In a secretly recorded video that went viral this month, a handcuffed Mr. Xu reached out from his cell and said, “No matter what becomes of this society, however crushed or absurd, this country needs a group of brave citizens to stand up and abide by their convictions, turning their rights, responsibility and dreams into reality.”

Saturday, August 17, 2013
Prominent Advocate Held in Southern China
New York Times

• Comment: “I think the general reason is that the authorities are putting pressure on many dissidents, and Yang Maodong is one of them,” Mr. Sui said. “I think the direct reason may be his involvement in the protests at the Southern Weekend.”
China Poised to Gain Control as Shipyard Shakeout Looms
Bloomberg

• Comment: "State-run companies are at an advantage because they have easier access to credit to pay workers, buy raw materials and provide financing for clients. China State Shipbuilding Corp., China Shipbuilding Industry Corp. and other government-backed companies won three-quarters of all orders in the first half of this year. Though state companies may buy some private yards, many will likely have to close since their capacity isn’t needed."
Complacent Consensus on China
Huffington Post

• Comment: "A short while ago, American pundits dismissed China as just a big pool of low-wage unskilled labor. Yet last year, over one-third of the $315 billion of the U.S. trade deficit with China was in advanced technology products. The Chinese are graduating more engineers than we are. And multinational corporations are rapidly setting up research and development operations in China so they can be close to its production lines and its consumers."

Thursday, August 15, 2013
USDA trip moves U.S. closer to accepting Chinese chicken
Politico

• Comment: "Despite years of food safety scandals surrounding China and another recent bird flu outbreak there, the U.S. Department of Agriculture is moving closer to opening the U.S. market to Chinese-processed chicken by sending two of its senior food safety officials to Beijing next week for a bilateral meeting on the subject."

Saturday, August 10, 2013
Is China Doomed?
The National Interest

• Comment: "Other numbers illustrate China’s economic makeover. In 1978 China accounted for about 2 percent of the value of global exports. By 2010 its share had risen to 10 percent, and the total value was $1.5 trillion. This success in the global marketplace was achieved to no small extent at the expense of the world’s other economic behemoths, Japan and the United States, whose shares declined"

Thursday, August 08, 2013
The changing debate over China’s economy
Credit Writedowns

• Comment: "The Chinese growth model, as I have pointed out many times before, is not radically new. It is based primarily on the growth model developed by Japan in the 20th Century. It involves policies that can be traced at least as far back as the “American System” of the early 19th Century, and it has been implemented in various forms by many different countries around the world during the past 100 or even 200 years."
China's Surprisingly Healthy Trade Numbers
Businessweek

• Comment: "The world bought 5.1 percent more Made in China products than a year earlier, much better than the median estimate for export growth of 2 percent. And Chinese are buying more from the rest of the world: After two months of negative growth, imports rebounded sharply, up 10.9 percent."
Trade Data From China Suggests More Stability
New York Times

• Comment: "China’s trade performance has whipsawed this year after figures were inflated by companies reporting fake deals to disguise illicit cash transfers, and then subsequently deflated by the government as it quashed the fictitious transactions. Analysts said the July data probably had minimal distortions, but some cautioned against concluding that the upbeat performance had been driven by an actual improvement in final demand."
Mine Deal Puts New Scrutiny on China’s State Industries
New York Times

• Comment: "Leaked documents about the deal, and a court case in Hong Kong, have shed an unusually harsh light on the usually secretive workings of a major state-owned company. The disputed deal raises a stark question: Are China’s economy and resources held hostage by privileged state corporations and their executives, who can use influence and gain access to easy credit in ways that undermine long-term growth?"

Tuesday, August 06, 2013
http://www.scmp.com/news/china/article/1294861/peoples-daily-continues-attack-us-constitution
South China Morning Post

• Comment: "Analysts said the latest propaganda blitz was clearly an effort by conservatives to jump-start a debate about the party's new direction, and possibly the nation's, as its leaders reportedly neet in the seaside resort of Beidaihe , east of Beijing, to work out their political agenda for the coming decade."
What drove an Apple plant worker to attempt suicide?
USA Today

• Comment: "Then she went to work on one of the assembly lines that exclusively serves Apple, where she examined glass screens looking for scratches. She worked from 7:40am to 7:40pm, skipping dinner to do so. Bathroom breaks were restricted. She had one day off every two weeks.She stared at posters that read "Achieve goals or the sun will no longer rise." She had to sit in a "standardized way" and work in "enforced silence." She made no friends."

Monday, August 05, 2013
Long Live China’s Boom
Project Syndicate

• Comment: "Given this, China’s economic slowdown since the first quarter of 2010 has apparently been caused mainly by external and cyclical factors. Facing an external shock, the Chinese government should and can maintain a 7.5% growth rate by taking counter-cyclical and proactive fiscal-policy measures, while maintaining a prudent monetary policy. After all, China has high private and public savings, foreign reserves exceeding $3.3 trillion, and great potential for industrial upgrading and infrastructure improvement."
China Bails Out Its Shipping Industry, Blows Latest Capital Misallocation Bubble
Zero Hedge

• Comment: "Or, force more capital to be allocated precisely where it is needed the least. In short: welcome to the latest Chinese asset bubble, because remember: the best way to "fix" an economy already reeling from asset bubbles and unprecedented capital misallocation, is to distract everyone with yet another asset bubble, and misallocate capital some more."

Sunday, August 04, 2013
China Issues Plan to Overhaul Troubled Shipbuilding Industry
Bloomberg

• Comment: "The main focus of the State Council plan will be on accelerating innovation, strictly controlling new capacity, promoting high-end products and stabilizing the industry’s international market share with greater funding support, Xinhua said. Local authorities and agencies should formulate supporting policies and ensure the timely completion of targets, Xinhua said, without providing any specific goals or a timetable."
The Price of ‘Made in China’
New York Times

• Comment: "HERE is a symbol of China’s assault on the American economy: the Verrazano-Narrows Bridge, which connects Brooklyn and Staten Island. This landmark, which opened in 1964, is North America’s longest suspension bridge. It’s also in urgent need of renovation. Unfortunately, $34 million in steel production and fabrication work has been outsourced to China."

Friday, August 02, 2013
U.S.: Talks with China hampered by Beijing's rights abuses
USA Today

• Comment: "Those cases were selected as being "illustrative of the wider systemic human rights problems that exist in China," including abuse of the freedoms of association and expression, and the right to peaceful dissent, Zeya said. "In some cases, we were able to receive some information," she said, but "overall, it fell short of expectations"

Thursday, August 01, 2013
Give Me Your Yuan: Chinese Are Eager for U.S. Assets
Businessweek

• Comment: "China, however, isn’t just another Brazil or Denmark with money to spend. It’s an economic juggernaut with historical resentments against the West and an increasingly assertive military. U.S. defense and intelligence authorities worry about China’s methodical effort to attain the world’s most advanced civilian and military technology."
China Reports Increase in Manufacturing
New York Times

• Comment: "The reading, published by the National Bureau of Statistics, edged up slightly, to 50.3 from 50.1 in June, indicating that recent small-scale economic support measures announced by the authorities in Beijing might be aiding some parts of the economy."

Wednesday, July 31, 2013
Overcapacity is economy's biggest problem: survey
China Daily

• Comment: "China's biggest problem for its economy, according to economists surveyed by the Netease Annual Economist Conference, is “overcapacity”. Half of economists surveyed said overcapacity is the most daunting problem while they said the second biggest concern is the nation's property bubble, according to the survey released on Wednesday."
Revenge of the Mistresses
New York Times

• Comment: "When I visited China in September, I wrote that I heard a new meme from Chinese businesspeople whom I met: “Make your money and get out.” More than ever, I heard a lack of confidence in the Chinese economic model. We should hope that China can make a stable transition from one-party Communism to a more consensual, multiparty system — and a stable diversification of its low-wage, high-export, state-led command economy — the way South Korea, Taiwan, Indonesia and Singapore have done. Its huge savings will help."

Tuesday, July 30, 2013
China’s Military Preparing for ‘People’s War’ in Cyberspace, Space
Washington Free Beacon

• Comment: "A defense official said the report was recently circulated in military and intelligence circles. Its publication came as a surprise to many in the Pentagon because in the past, U.S. translations of Chinese military documents on similar warfighting capabilities were not translated under a directive from policy officials seeking to prevent disclosure of Chinese military writings the officials feared could upset U.S.-China relations."

Monday, July 29, 2013
China should probe foreign luxury carmakers over prices: Xinhua
Reuters

• Comment: "Foreign carmakers are reaping exorbitant profits selling imported luxury cars in China and should face an anti-trust investigation, the official Xinhua News Agency said, in what may amount to a shot across the bow of foreign auto firms."
China Opts for Only Small Steps to Stimulate Economy
New York Times

• Comment: "Beijing continues to resist a new large fiscal stimulus package, despite a report last week that the nation’s manufacturing sector had contracted in July at its fastest pace since last summer. Instead, the government announced a “mini stimulus” that included a tax cut for small companies, a reduction of red tape and costs for exporters, and the opening of investment in railroad construction to private capital."
Report: Chinese Apple Supplier Violates Labor Rights in Factories
Washington Free Beacon

• Comment: "CLW’s investigations revealed at least 86 labor rights violations, including 36 legal violations and 50 ethical violations. The violations fall into 15 categories: dispatch labor abuse, hiring discrimination, women’s rights violations, underage labor, contract violations, insufficient worker training, excessive working hours, insufficient wages, poor working conditions, poor living conditions, difficulty in taking leave, labor health and safety concerns, ineffective grievance channels, abuse by management, and environmental pollution."

Sunday, July 28, 2013
Weak Finish From Europe on Chinese Solar Panels
New York Times

• Comment: "But the case ended with a whimper on Saturday and illuminated the deep divisions within Europe — and how good the Chinese are at exploiting those differences. The European Commission announced Saturday that it had settled the case in exchange for a pledge from China not to export solar panels for less than 0.56 euros (74 cents) a watt, a price about 25 percent lower even than when the case began. The commission also decided to forgo imposing the steep tariffs on Chinese solar panels it had originally threatened."
China Plans Audit of Debt Government Has Incurred
New York Times

• Comment: "China avoided most of the effects of the recent global financial crisis through a huge program of government spending financed by debt. The stimulus program has encompassed projects including a national grid of high-speed train routes and the construction of thousands of roads and bridges by municipalities, towns and villages."

Friday, July 26, 2013
Divining Unemployment in China
Businessweek

• Comment: "That’s because what China’s authorities measure are only those urban workers who are formally registered and thus eligible for unemployment benefits. Among those who are not counted are the 230 million migrant workers who live in the cities. China’s still large surplus agriculture labor force isn’t factored, either. (Despite rapid urbanization, the mainland’s rural population, including non-working young and elderly, still numbers 642 million, or almost half the country’s populace.)"

Thursday, July 25, 2013
Smithfield's China deal spurs heparin heart drug safety concerns
Reuters

• Comment: "U.S. lawmakers are concerned a Chinese company's planned $4.7 billion acquisition of pork producer Smithfield Foods Inc could affect the safety and availability of heparin, a blood-thinner widely used in heart surgery and kidney dialysis that is derived from pig intestines."

Wednesday, July 24, 2013
Manufacturing in China Contracts Further
New York Times

• Comment: "The monthly survey of purchasing managers in the manufacturing sector, compiled by the research firm Markit and released by the British bank HSBC, offers one of the earliest glimpses at how the economy is doing each month and is closely watched by economists and investors. Final figures for July, based on more complete survey results, are scheduled to be released next week, alongside the results of an official manufacturing survey to be published the National Bureau of Statistics."

Tuesday, July 23, 2013
China's Economic Goals In One Chart
Business Insider

• Comment: "For 2013, Mr. Li made it very clear that the growth floor is 7.5% and inflation cap is 3.5%. He is committed to delivering the 7.5% growth target while containing CPI inflation at below 3.5%. Mr. Li sees the falling trend of growth and he sets an average 7.0% growth floor for 2013-20."
Xi Jinping reassures liberals with renewed call for broad reform
South China Morning Post

• Comment: "Xi has since stoked the fears of reformists with repeated references to Mao Zedong . First, he defended the late helmsman's legacy against those who would repudiate it. Then he launched a Mao-style "mass line" campaign to repair grass-roots support for the party."
China capitulates
Telegraph

• Comment: "Now it looks as if Beijing has blinked yet again at the first sign of real trouble. It may take a great deal of stimulus to keep growth at Mr Li’s floor level, given China’s broken model, if it can be done at all. That will store up yet more trouble for the future, and sooner of later the future arrives."

Monday, July 22, 2013
What’s in a Number? In China, Not Much
Bloomberg

• Comment: "Such shenanigans are pointless. GDP growth rates over the next few years of 7.5 percent, or even 7 percent, will be impossible to achieve. Until now, such gaudy statistics have been produced by ballooning investment. With so much of that investment now creating less economic value than debt, China has experienced an unsustainable expansion in credit. The country is perilously vulnerable to a chaotic adjustment."
China Stresses "Stablizing Growth" amid Economic Slowdown
Caixin

• Comment: "Policies in investment and consumption would be eased somewhat, reported by the China Business News, citing government sources. Railway investment, reconstruction of shanty towns and investment in city infrastructure are at the center of future policy stimulus, the officials said."

Saturday, July 20, 2013
The Myth of China’s Economic Reform
Bloomberg

• Comment: "Well before Li and President Xi Jinping officially took the reins in March, exports were falling, manufacturing was contracting and economists were downgrading forecasts. Big reforms are always easier when growth is booming. If Li could wave a magic wand and get gross domestic product back into double-digit territory without pumping more air into China’s credit bubble, he would in a Shanghai minute. He needs reasonable growth to stabilize his power base and figure out how to turn the economy upside down without crashing it."
Hitting China’s Wall
New York Times

• Comment: "The existence of this surplus labor, in turn, has two effects. First, for a while such countries can invest heavily in new factories, construction, and so on without running into diminishing returns, because they can keep drawing in new labor from the countryside. Second, competition from this reserve army of surplus labor keeps wages low even as the economy grows richer. Indeed, the main thing holding down Chinese consumption seems to be that Chinese families never see much of the income being generated by the country’s economic growth. Some of that income flows to a politically connected elite; but much of it simply stays bottled up in businesses, many of them state-owned enterprises."

Thursday, July 18, 2013
China seen surpassing U.S. in superpower shift
CNN Money

• Comment: "Publics around the world believe the global balance of power is shifting," Pew wrote. "China's economic power is on the rise, and many think it will eventually supplant the United States as the world's dominant superpower."
Huawei spies for China, says ex-CIA head
Australian Financial Review

• Comment: "The former head of the US Central ­Intelligence Agency and National Security Agency, Michael Hayden, believes Chinese telecommunications manufacturer Huawei Technologies is a significant security threat to Australia and the US, has spied for the Chinese government, and intelligence agencies have hard evidence of its activities."

Wednesday, July 17, 2013
U.S. groups say China jeopardizing new technology trade pact
Reuters

• Comment: "But now, "China is asking for the removal of more than 100 products from the ITA negotiation, which cannot be viewed as a meaningful effort, said Sage Chandler, vice president for international trade at the Consumer Electronics Association. "The Chinese position should be responsible, with a serious but limited list of products it wishes to exclude from lower tariffs," Chandler said"
China defies IMF on mounting credit risk and need for urgent reform
Telegraph

• Comment: "Xia Bin from China's Development Research Center (DRC), home of reformers, says it is time to end happy talk and brace for condign punishment. "We need to find ways to let the bubble burst and write off the losses we already have as soon as possible to avoid an even bigger crisis. It means hard days, it means the bankruptcy of some companies and financial institutions, above all it means reform," he said. Mr Xia said the debate over China's growth rate - allegedly 7.5pc - is surreal since the country is already in the grip of an unprecedented financial crisis."
IMF labels China’s debt ‘unsustainable’ as trade talks are suspended
Washington Post

• Comment: "A new, sharply worded IMF report said that Chinese government debt has been growing faster than reported, and at 45 percent of annual economic output is perhaps double the officially recorded level. The country’s reliance on state spending, credit, and investment to prop up economic growth had become “unsustainable,” the IMF said, and needed to shift direction soon to avoid an eventual and potentially devastating crisis."
I.M.F. Tells China of Urgent Need for Economic Change
New York Times

• Comment: "China still has large foreign currency reserves and plenty of room for new government spending to buffer any unexpected shocks, Markus Rodlauer, the I.M.F.’s China mission chief, said in an interview. But he said the Chinese economy was becoming more vulnerable and change was becoming more difficult to make as time passes."

Tuesday, July 16, 2013
China to Avoid ‘Wide Fluctuations’ in Economy, Li Says
Bloomberg

• Comment: "Li said China shouldn’t change policy direction because of short-term changes in economic indicators, losing rare opportunities to restructure, nor should it lack alertness and preparedness in case the economy slides out of a “reasonable” range or has “large swings.”
Graphics: Perusing Policies
Caixin

• Comment: "First coined on June 27 by economists at Barclays Capital, Likonomics is believed to stand for three pillars: no more fiscal stimulus; de-leveraging to reduce debt; and structural reform, such as relaxed controls on utility prices and more liberalized interest rates."
What’s the Senate’s Beef with China’s Play for American Pork?
China File

• Comment: "The more serious concern is that China’s government doesn’t practice reciprocity in international mergers. Beijing is perfectly happy for Shuanghui to take over Smithfield, but if the deal went the other way, it’s almost certain Chinese regulators would block it. This is a legitimate issue, one of a host of market-access problems that U.S. trade negotiators need to keep pressing China on."
U.S., China Strategic and Economic Dialogue Criticized
Washington Free Beacon

• Comment: “There are no meaningful achievements, so the State Department calls them ‘outcomes,’ and all the significant policy movements, without exception, are by the U.S. side in an effort to accommodate the Chinese side.”The 91 points are “conclusive proof that the ‘strategic’ side—at least—of the Strategic and Economic Dialogue has been a diplomatic fiasco, a carnival of minutia, or a waste of the taxpayer’s hard-earned money, or some unholy combination of the three,” Tkacik said."

Saturday, July 13, 2013
'DEATH BY CHINA' DIRECTOR TAKES AIM AT COMMUNIST COUNTRY'S TRADE PRACTICES
Big Government

• Comment: “I’m telling the absolute truth,” Navarro tells Big Hollywood. “What’s the other side of currency manipulation, or taking organs from Falun Gong members, or being the most polluted country," he asks, ticking off major themes captured in his film. Death by China is an unflinching look at how trade relations between the U.S. and the Communist powerhouse has been a one-sided affair, and how American politicians, like former President Bill Clinton, have only made matters worse."

Friday, July 12, 2013
U.S. and China to Discuss Investment Treaty, but Cybersecurity Is a Concern
New York Times

• Comment: "The United States has repeatedly warned that the theft of American companies’ intellectual property, often over computer networks, could make businesses hesitant to invest. And the United States has blocked some Chinese investments, fearing that they could facilitate electronic espionage."
Frank Wolf bill targets China cyber-espionage
Politico

• Comment: "Wolf is trying to keep out Chinese-based telecom equipment-makers, like Huawei and ZTE, both of which were flagged by a 2012 congressional report for their alleged ties to the Chinese government. But the Obama administration said Thursday that Wolf’s particular methods could “prove highly disruptive without significantly enhancing the affected agencies’ cybersecurity.” The White House has launched a diplomatic dialogue with China on cyberespionage, holding meetings on the subject with top Chinese leaders this week in Washington."
New Look at US-China Trade
Zero Hedge

• Comment: "Intermediate goods account for 70% of US exports to China,. while 75% of China's exports to the US are final goods."

Thursday, July 11, 2013
Analysts Debate Li's Remarks on Economy's 'Floor' and 'Ceiling'
Caixin

• Comment: "HSBC analyst Ma Xiaoping said this indicates that foreign demand remains weak and the economy will continue to face challenges. In response, the government may increase fiscal spending and lower interest rates by perhaps 25 basis points to maintain growth, she said."
Lew Calls Progress on China Investment Treaty a ‘Breakthrough’
Bloomberg

• Comment: “The commitment made today stands to be a significant breakthrough and marks the first time China has agreed to negotiate a bilateral investment treaty, to include all sectors and stages of investment, with another country,” Lew said."
China agrees to broad investment talks
Washington Post

• Comment: "Although many American companies have businesses in China, investment there is governed by a strict set of rules that often limits foreign ownership — a policy, U.S. officials argue, that will crimp China’s growth in the long term and which limits the benefits American companies and workers can gain from China’s economic expansion."
Differences on Cybertheft Complicate China Talks
New York Times

• Comment: "And at a time when the Chinese economy is showing signs that it is headed into a period of slower growth, the administration’s hopes of persuading Chinese leaders to crack down on the daily barrage of theft and espionage over the Internet — considered crucial to keep China competitive — is likely to be even more difficult."
Commentary: Mutual understanding key to success of top China-U.S. dialogue
Xinhua

• Comment: "The key annual dialogue between the world's two largest economies is well underway in Washington, with both sides being aware of the fact that the talks' outcome will not only affect the future of China-U.S. ties but also that of the world."

Wednesday, July 10, 2013
With China slowing, talks with the U.S. take on a new tone
Washington Post

• Comment: "The annual U.S.-China Strategic and Economic Dialogue begins Wednesday with Secretary of State John F. Kerry and Treasury Secretary Jack Lew leading the U.S. delegation, and China state counselor Yang Jiechi and vice premier Wang Yang heading the Chinese team. Top-level security, central bank and other officials will also be involved."
Lawmakers Have Concerns Over Chinese Takeover of Smithfield
New York Times

• Comment: "The proposed acquisition of America’s largest pork producer by a Chinese company could result in the transfer of food-production technologies that endanger the United States economy and, perhaps, national security, two food and foreign-investment experts told the Senate Agriculture Committee on Wednesday."
U.S.-China cybersecurity talks inching along
Politico

• Comment: "The threat of Chinese hackers — some seeking government intelligence, others targeting business trade secrets — long has confounded Washington. The Obama administration hasn’t found the right mix of tone and tactics to persuade the Chinese to address the flurry of intrusions originating within its borders, and Congress repeatedly has failed to pass a law that might strengthen the country’s digital defenses."
U.S. opens China talks with cyber complaints, vow to boost trust
Reuters

• Comment: "Outright cyber-enabling theft that U.S. companies are experiencing now must be viewed as out of bounds and needs to stop," said Biden. U.S. officials say all countries spy on each other, but China is unique in its theft of foreign technology. Deputy Secretary of State Bill Burns and Treasury Secretary Jack Lew are hosting a Chinese delegation led by State Councilor Yang Jiechi and Vice Premier Wang Yang for annual talks that cover both economics and wider geopolitical issues."
Smithfield CEO Faces Senate Heat over Sale to China
Washington Free Beacon

• Comment: “Smithfield might be the first (Chinese) acquisition of a major food and agricultural company, but I doubt it will be the last. That is why we must take a long-term view of what is happening,” she said."
A Scorecard to the Latest Round of U.S.-China Talks
Businessweek

• Comment: "The U.S. government is fastidious about the independence of its central bank; the Chinese, not so much. But this year, both countries are bringing their top central bankers, Federal Reserve Chairman Ben Bernanke and People’s Bank of China Governor Zhou Xiaochuan. The Fed is trying to take its foot off the gas pedal, while the People’s Bank of China is pushing its banks to rely less on it for emergency loans."
China’s Trade Data Is Significantly Weaker Than Forecast
New York Times

• Comment: "Chinese trade data for June came in much weaker than expected on Wednesday, offering the latest evidence that China has lost much of its economic vigor as Beijing seeks to steer the economy toward steadier, but slower, expansion."

Monday, July 08, 2013
U.S., China Talk Cyber Theft at Strategic Dialogue
Washington Free Beacon

• Comment: "I think our nation has been significantly impacted with intellectual property, the theft of intellectual property by China and others,” Alexander said on ABC’s “This Week” last month. “That is the most significant transfer of wealth in history. And it goes right back to your initial question: Who is taking our information? It’s one of the things I believe the American people would expect me to know. That’s where my mission is. Who’s doing this to us and why?”

Sunday, July 07, 2013
China, Switzerland sign free trade agreement
Reuters

• Comment: "China and Switzerland on Saturday signed a free trade agreement in Beijing - a move that came amid escalating tensions between Asia's economic giant and the European Union."
China Pledges to Boost Financial Support After Cash Crunch
Bloomberg

• Comment: "Banks should be prepared to write off the bad debts of companies with outdated capacity, and help wind them down and exit the market, it said. At the same time, financial institutions should “pro-actively support key infrastructure projects such as railways,” it said. Chinese banks can still lend to players in industries with over-capacity problems, Yang Jiacai, an assistant chairman at the CBRC, said at today’s briefing. He cited Wuhan Iron & Steel Co. as a company that should be supported as its cold-rolled steel products are competitive."
China reiterates prudent monetary policy
Xinhua

• Comment: "According to the guideline, the government will use quantitative and pricing monetary policy tools to increase the money velocity and ensure that funds are used more efficiently. The central bank will also help financial institutions ensure that credit is available for the advanced manufacturing and information technology sectors, as well as labor-intensive industries, the guideline said."

Monday, July 01, 2013
Manufacturing in China Cools Further in June
New York Times

• Comment: "Still, the manufacturing surveys reinforced concerns that growth in China remains fragile and that this, in turn, will weigh on other emerging Asian economies.Purchasing managers’ indexes for several other Asian countries, also released by HSBC on Monday, underscored this point: The readings for Indonesia and South Korea fell in June, while the India and Taiwan indexes edged higher but remained lackluster."

Saturday, June 29, 2013
China faces test over plans to cut industrial capacity
Reuters

• Comment: "Beijing has sought to tackle overcapacity in sectors such as aluminium and steel for about a decade, but plans have faltered due to resistance from local governments anxious to protect growth and boost revenues.In a sign Beijing may be getting more serious, cutting capacity is becoming a performance target for local officials."

Friday, June 28, 2013
Value-Added Analysis of Trade with China Could Weaken Fair Trade Enforcement and Increase Job Loss
Economic Policy Institute

• Comment: "Thus, VA estimates would make an end-run around enforcement of U.S. antidumping, countervailing duty, and other fair-trade enforcement efforts, because they would reduce the value of goods and services potentially subject to unfair trade duties. Reducing estimates of China’s global trade deficit would also reduce pressure on that country to revalue its exchange rate."

Thursday, June 27, 2013

Wednesday, June 26, 2013
Smithfield workers wary over China deal
USA Today

• Comment: "The Shuanghui (pronounced Shuwang Hway) deal worries Iversen. "Well, I'm sure they (the Chinese) are going to send somebody over here to keep an eye on things," he says, "and I would think he or she would probably have their own ideas on how things are done."
US Must Step Up Sanctions on Chinese Cyber Attacks
Washington Free Beacon

• Comment: "Experts told members of the Congressional-Executive Commission on China at a hearing that the nation continues to disregard the intellectual property rights of U.S. businesses. Former Sen. Slade Gorton (R., Wash.), a member of the Commission on the Theft of American Intellectual Property, noted findings from a report by the commission that China accounts for between 50 and 80 percent of global intellectual property theft, costing U.S. businesses more than $300 billion annually and about 2 million jobs."

Tuesday, June 25, 2013
China Loses Control of Its Frankenstein Economy
Bloomberg

• Comment: "The world has grown used to the idea that China’s leaders are masterful stewards of their gargantuan economy. They steered brilliantly around the iceberg of the 2008 financial crisis, maintaining growth of near-double-digit rates. So when People’s Bank of China chief Zhou Xiaochuan began clamping down on excessive liquidity last week, some observers viewed him as a Chinese Paul Volcker. Now that the worst was over, Zhou seemed to indicate, it was time for China to rein in lending and prevent a credit bubble from swelling."
China's Economic Policy Factory: The NDRC
Businessweek

• Comment: "Chief among the agency’s daily responsibilities is approving large infrastructure and manufacturing projects, including new auto factories, bridges, and theme parks, and signing off on large overseas acquisitions and investments by Chinese companies. Equally important is its role in setting prices for key commodities, including electricity and gas, as well as offering suggestions on the pricing of other necessities, such as train tickets, pork, and cooking oil."
A lot of CEOs get taken hostage in China
Washington Post

• Comment: "It’s a story to give an American manufacturing executive nightmares: He arrives at his Beijing factory to lay off 30 people, and instead is taken prisoner by his employees while they demand compensation. That’s what happened to Charles Starnes, a co-owner of Coral Gables, Fla.-based Specialty Medical Supplies, who visited the factory last week to wind down the company’s plastics division and move it to Mumbai. What exactly the workers wanted is a matter of some dispute."

Monday, June 24, 2013
China's Credit Crunch Signals How Serious Beijing Is About Reform
Businessweek

• Comment: "Beijing’s brinksmanship is also likely aimed at cleaning up some of the riskier practices in China’s banking sector, which have helped contribute to a serious problem with local debt. By a broad measure, China’s shadow banking may have already almost doubled since 2010 and could amount to as much as 36 trillion yuan, or 69 percent of the economy."

Sunday, June 23, 2013
Shadow Banking Behind China’s Cash Crunch, Xinhua Says
New York Times

• Comment: "Comments from Xinhua, seen as a government mouthpiece, confirm analysts’ suspicions that the central bank’s funding squeeze was aimed at reducing nonbank lending, or shadow banking, which has boomed in recent years."

Saturday, June 22, 2013
More U.S. senators concerned by Shuanghui-Smithfield deal
Reuters

• Comment: "More U.S. senators on Friday raised concerns about a Chinese company's plan to buy U.S. pork company Smithfield Foods Inc (SFD.N), particularly in light of restrictions that China continues to place on imports of U.S. meat."

Friday, June 21, 2013
Economists React: China Manufacturing Gauge Slides in June
Wall Street Journal

• Comment: "The fall in the HSBC flash PMI reinforces our concerns over the downside risks to the economy. We maintain our view that policy and liquidity will remain tight before the second-quarter GDP data release on July 15th. Headline activity indicators such as industrial production and fixed asset investment are weak but are not collapsing, while labor market conditions remain tight. We believe the government is committed to tolerating short-term pain to achieve its policy objectives – containing financial risks and secure sustainable growth in the long term"
U.S. trade representative sees China economic slowdown a potential boost to reform
Washington Post

• Comment: "Froman said the United States would continue filing enforcement actions against China as needed — none have been brought at the World Trade Organization since the election — but added that economic forces, from rising wages to slowing global demand for its exports, are probably pushing the country toward changes long advocated by the United States and others."

Thursday, June 20, 2013
How China Fudges Its Numbers
Wall Street Journal

• Comment: "It’s typically advisable not to accept Chinese economic data at face value –as even the country’s own premier will tell you. Figures on everything from inflation and industrial output to energy consumption and international trade often don’t seem to gel with observation and sometimes struggle to stack up when compared with other indicators."
Chinese Govt Says Financial System Must Support Economy
Bloomberg

• Comment: "The financial system must “support economic transformation and upgrading in a more forceful way, serve real economic development in a better way, promote domestic demand in a more targeted way and prevent financial risks in a more concrete way,” the State Council said."

Wednesday, June 19, 2013
In China, they built it ... and no one came
Reuters

• Comment: "A building boom tied to China's economic rise shows no signs of abating, despite slowing growth and excess capacity in some cities. Are commercial 'ghost towns' a sign of further trouble to come?"

Tuesday, June 18, 2013
What Paintbrush Makers Know About How to Beat China
New York Times

• Comment: "Chinese manufacturers long ago wreaked havoc on the U.S. textile, apparel, toy and electronics industries, but the disruption came slowly to the brush business. There are simply so many types of brushes for so many applications that many Chinese manufacturers thought the business wasn’t worth the hassle. For decades, China lagged behind in the main categories (toothbrushes, brooms, mops and, of course, paintbrushes) and only dominated the lowest rung of the business — extracting bristles from boars."

Monday, June 17, 2013
Chinese activist says he's being forced out by NYU
USA Today

• Comment: "Chinese dissident Chen Guangcheng, who was allowed to travel to the U.S. after escaping from house arrest, said Monday that New York University is forcing him and his family to leave at the end of this month because of pressure from the Chinese government. The university denied Chen's allegations"

Sunday, June 16, 2013
China’s Great Uprooting: Moving 250 Million Into Cities
New York Times

• Comment: "The government, often by fiat, is replacing small rural homes with high-rises, paving over vast swaths of farmland and drastically altering the lives of rural dwellers. So large is the scale that the number of brand-new Chinese city dwellers will approach the total urban population of the United States — in a country already bursting with megacities."

Friday, June 14, 2013

Thursday, June 13, 2013
A smarter way to deal with China
L.A. Times

• Comment: "It makes no more sense to see the world through a purely realist lens — that focuses only on the top chessboard and predicts conflict with China — than it does to see through a liberal lens that looks primarily at a single board and predicts only cooperation. In a tri-level game, a player who focuses on only one board is bound to lose in the long run. Fortunately, China and the United States have more to gain from the cooperation dimension of their relationship than from the conflict one. Both just need to recognize that."
Not Just Solar: The China Car Industry Capacity Problem
China Real Time Report

• Comment: "We’re bound to see a similar, if not quite as extreme, story in cars. By 2018 Chinese and global auto makers, with new factories scattered across China, will be equipped to make more than 30 million cars a year. To put that number in perspective, consider that 30 million cars amount to twice the size of the entire U.S. market."

Wednesday, June 12, 2013
Sino-US confrontation lose-lose result
Global Times

• Comment: "This is not the finest hour for the US. Our political system is broken, our constitutional balances undone. Our bill of rights is compromised or suspended. We are disinvesting in our human and physical infrastructure. Our economic competitiveness is visibly declining. We are unable to pass a budget, still less set priorities for our languishing economy. This doesn't seem a particularly propitious time to pick a fight with a rising power."

Tuesday, June 11, 2013
Is India a Better Place for Manufacturing Than China?
Huffington Post

• Comment: In my last article, I mentioned that four cities in India were listed in the Blacksmith Institute's "Dirty 30" of the 2007 report, "The World's Worst Polluted Places." Consider Vapi, at the southern end of India's "Golden Corridor," a 400 km belt of industrial estates in the state of Gujarat. There are more than 50 industrial estates in the region, containing over 1,000 industries and extending over more than 1,000 acres. Many estates are chemical manufacturing centers, producing petrochemicals, pesticides, pharmaceuticals, textiles, dyes, fertilizers, leather products, paint, and chlor-alkali. Waste products discharged from these industries contain heavy metals (copper, chromium, cadmium, zinc, nickel, lead, and iron), cyanides, pesticides, aromatic compounds like PCBs (polychlorinated biphenyls), and other toxins."
U.S.-China climate deal faces broader challenge
Politico

• Comment: "But U.S. companies like Honeywell and DuPont that have been leading producers of alternatives to the gases are expected to lobby hard for any deal to be approved. “We don’t think it’s going to be as big an obstacle as you might think because there’s no big opposition in the U.S. industry to do this,” Light said. It is also below the radar compared with the battles over carbon dioxide emissions. “So I don’t see a big fight,” Light said."

Monday, June 10, 2013
California Summit Leaves Host of Unresolved U.S.-Sino Issues
Bloomberg

• Comment: "Average annual economic growth of 9 percent for the past 15 years has vaulted China into global prominence. Some of that prosperity has been stolen from U.S. corporations, according to the Obama administration. Last year, Army General Keith Alexander, who heads both the National Security Agency and U.S. Cyber Command, called the theft of U.S. trade secrets, including by China, “the greatest transfer of wealth in history.” Corporate victims of cyber attacks include Google Inc (GOOG)., Sony Corp (6758)., AT&T Inc (T)., the U.S. Chamber of Commerce, Visa Inc (V). and Mastercard Inc (MA)., he said."
Growing concern over U.S. military components made in China
CBS News

• Comment: "The Pentagon is becoming increasingly worried about relying on military components that are made in China. Wyatt Andrews reports."

Sunday, June 09, 2013
America’s China policy is broken
Marketwatch

• Comment: "Completely missed is the skyrocketing share of bilateral trade that’s head to head, as China’s exports to the U.S. have leaped up the technology and value chains.In fact, in 2000, when China’s landmark entry into the World Trade Organization was approved, high-value manufacturers represented 35% of China’s exports to the U.S. Last year, they represented almost 59%. In addition, in 2000, products made in China (often in factories owned or affiliated by U.S. multinationals) held less than 1% of the entire U.S. market for a wide-ranging group of more than 100 advanced manufacturing sectors. The latest (2011) data show that this figure has more than quintupled."
Mr. Obama, meet Mr. Xi; U.S.-China summit is personal
Idaho Statesman

• Comment: "Business groups have urged Obama to take a tougher stance against Chinese hacking, with the U.S. Business and Industry Council running full-page newspaper ads that accuse China of mounting an “all-out cyberwar against America” that costs billions of dollars and jobs. It chides Obama to resist “more chit-chat diplomacy.” The Chinese government has denied official involvement in online hacking and said China itself was regularly subjected to such attacks. The Chinese also aren’t convinced that the U.S. has sufficient evidence that China is behind the attacks."
With dreams and irony, Chinese react to Xi's U.S. summit
USA Today

• Comment: "The U.S. side fails to understand China often cannot meet Washington's sometimes "selfish demands" because the problems are too complex or they risk compromising Chinese national interests, the paper wrote."The new ties will require greater tolerance of each other. China and the U.S. must realize that even a husband and wife cannot avoid quarrels and have to tolerate each other," it said in its editorial."
Can Obama, Xi take next step in U.S.-China relations
USA Today

• Comment: "For all the relationship building, in the end it's domestic pressures on Xi that could have the greatest impact on the Chinese taking action on the most maddening issues to the United States, from currency manipulation that led to a record $315 billion trade imbalance last year to insidious cybertheft and industrial espionage emanating from China.Xi faces falling GDP growth and a Chinese public that is impatient with stifling pollution in the cities, skyrocketing property prices and diminishing job prospects for new college graduates of which an estimated 30% are unemployed."

Saturday, June 08, 2013
U.S. and China Move Closer on Climate, but Not on Cyberespionage
New York Times

• Comment: "Although the leaders of the world’s two biggest powers made no public statements on their second day of talks, their disagreements — over cyberattacks as well as arms sales to Taiwan, maritime territorial disputes in the South China Sea and manipulation of the Chinese currency — spilled into the open when senior officials from both countries emerged to describe the meetings in detail."
Meet Your New Boss: Buying Large Employers Will Enable China To Dominate 1000s Of U.S. Communities
Economic Collapse

• Comment: "Chinese acquisition of U.S. businesses set a new all-time record last year, and it is on pace to absolutely shatter that record this year. Meanwhile, China is voraciously gobbling up real estate and is establishing economic beachheads all over America. If China continues to build economic power inside the United States, it will eventually become the dominant economic force in thousands of small communities all over the nation."
Obama and Xi Tackle Cybersecurity as Talks Begin in California
New York Times

• Comment: "White House officials said they did not know why someone had leaked details about the surveillance programs, though they said they did not think they were timed to sabotage the Obama-Xi talks here. A spokesman for Mr. Obama, Josh Earnest, dismissed suggestions from reporters flying with the president to Palm Springs that the surveillance flap would undercut Mr. Obama’s efforts to pressure his counterpart on human rights and civil liberties within China."
China’s Export Growth Slows Amid Concern of Slowdown
New York Times

• Comment: "Chinese customs data compiled by CEIC Data in Hong Kong showed that the mainland’s exports to Hong Kong were up only 7.7 percent in May from a year earlier. In April, they had been up 57.2 percent from the same month last year, and in March they had been up 92.9 percent.Changing expectations about China’s currency — fewer businesspeople now expect further appreciation — may have also reduced the incentive for companies to overstate exports, Mr. Kuijs said."
Obama, Xi in second day of talks at informal summit in California
Fox News

• Comment: "U.S. officials are hoping that Xi, who took office in March, proves to be a new brand of Chinese leader. He has deeper ties to the U.S. than his predecessors, given that he lived in Iowa briefly as a visiting official and sent his daughter to college in the U.S."
Obama confronts Xi on cyber theft, affinity found on North Korea
Reuters

• Comment: "Obama's message to Xi carried a warning, "that if it's not addressed, if it continues to be this direct theft of United States property, that this was going to be a very difficult problem in the economic relationship," White House national security adviser Thomas Donilon said. Chinese State Councilor Yang Jiechi told reporters Beijing wanted cooperation rather than friction with the United States over cybersecurity. Xi had told a news conference with Obama on Friday that China itself was a victim of cyber attacks but that the two sides should work together to develop a common approach."

Friday, June 07, 2013
Obama wants cooperation with China, despite tensions
Reuters

• Comment: "Hosting Xi at a luxurious desert estate in southern California, Obama said he hoped to work together with China on cybersecurity, an issue that has created friction between the two countries. Xi expressed the hope for deeper cooperation, saying China and the United States could build a new model of "big country" relations."
Obama Urged to Prod China on Rights at Meeting
New York Times

• Comment: “So we should work together and join hands together to free them,” Mr. Chen added, arguing that human rights, not economic and trade issues, should be at the center of Mr. Obama’s agenda during his meeting. The White House has portrayed the informal meeting with Mr. Xi, which begins Friday afternoon at a 200-acre estate outside Palm Springs, Calif., as an opportunity for the two leaders to develop a personal relationship. Mr. Obama and Mr. Xi have set aside several hours for meetings and meals that are intended to be less scripted than typical meetings between world leaders."
China moves against US pivot to Asia with stepped up ties to US neighbors
Fox News

• Comment: "The strategy is a Chinese version of what Beijing has charged is a U.S. strategy designed to encircle and "contain" China. It is also directed at countering the Obama administration's new strategy called the pivot to Asia. The pivot calls for closer economic, diplomatic, and military ties to Asian states that are increasingly concerned about Chinese encroachment throughout that region."
Should China Be Considered America's Number One Adversary?
U.S. News and World Reports

• Comment: "One of the areas of concern for the U.S. is the growing economic power of China. The Chinese company Shuanghui recently announced plans to buy U.S. pork-producer Smithfield Foods. Several lawmakers expressed their dismay about the deal. Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., said the government "must take China's and Shuanghui's troubling track record on food safety into account." Rep. Frank Wolf, R-Va., added, "In the review of this proposed transaction, it must be shown that the deal will protect workers, food safety standards, and U.S. national interests."
US-China summit gamble: Can relaxed format boost rapport over rivalry?
Christian Science Monitor

• Comment: "Even Chinese officials are cautioning that no one should expect “deliverables” – specific agreements or formal steps forward – on the issues the two leaders will discuss.But the Chinese were open to the less structured format with unusually copious time for unscripted dialogue – perhaps in part, some regional analysts say, because Xi is anxious to demonstrate that a maturing China is ready for the “new type of great power relationship” that Xi is calling for the US and China to adopt."
Obama pressured to confront China's Xi Jinping on cyber spying
Christian Science Monitor

• Comment: "The US, meanwhile, wants China to throttle back the flood of cyberspying that daily backs up the equivalent of digital moving vans to US corporate networks to steal away (by downloading in a few seconds) troves of ideas, plans, designs, and formulas that make the US economy hum and keep Americans employed.Losses from the theft of US intellectual property are roughly $300 billion a year, according to a report last week by the Commission on the Theft of American Intellectual Property, spearheaded by Dennis Blair, a former director of national intelligence, and Jon Huntsman, former US ambassador to China. China is responsible for 50 percent or more of the stolen data, the group reported."
Obama to Meet With China’s Leader at Expansive Setting
New York Times

• Comment: "By its unusual informality, the presidents’ two-day meeting is already being interpreted as a milestone in their nations’ often tense and generally stilted four-decade diplomatic history. Mr. Obama will sleep at the estate, presumably in the canary yellow master bedroom where speakers pipe in the songs of the birds outdoors; Chinese officials and their leader, reportedly fearful of eavesdropping bugs, have opted for a nearby hotel."
Obama, Chinese President Xi Jinping begin 2-day summit at California desert retreat
Fox News

• Comment: "However, Obama's urging of Xi to stop reported Chinese hacking against the U.S. could be overshadowed by new revelations that Obama's own administration has been secretly collecting information about phone and Internet use. The actions of both China and the U.S. underscore the vast technological powers that governments can tap to gather information covertly from individuals, companies and other governments."
Obama and China's President Xi begin Sunnylands summit
USA Today

• Comment: "Obama also underscored that the two countries need to make certain that in the global economy that all nations are "playing by the same rules." He called for the United States and China to work together to address the issues of cybersecurity and the theft of intellectual property --perhaps the thorniest of issues in the U.S.-Sino relationship. Obama also said he the U.S. would continue press China on human rights issues."

Thursday, June 06, 2013
China Goes Old School with Commercial Espionage
Washington Free Beacon

• Comment: “China is in a different league altogether, exceeding the international norm not just in scale, the number and variety of transfer venues, the moral agnosticism of its practitioners, and the degree of government support,” the authors, William C. Hannas, James Mulvenon and Anna B. Puglisi, said in written answers to questions. “It’s an entire mind-set.”
With rival Xi, Obama tries to make a historic connection
USA Today

• Comment: "The two leaders are scheduled to spend hours talking and will trade notes — and complaints — about each other's economic policy, North Korea strategy and cyberhacking. They'll have a private dinner on Friday night, and will hold more talks on Saturday morning — including some one-on-one time — before going separate ways Saturday afternoon."
President Xi uses trip to increase China's influence
USA Today

• Comment: "When Chinese President Xi Jinping's four-nation tour of the Americas comes here Friday for a two-day summit with President Barack Obama, area economists and economic development officials say China already will have taken fresh steps to bolster its economic influence in nations such as Costa Rica, Mexico, and Trinidad and Tobago."

Wednesday, June 05, 2013
TIME TO STOP FEEDING THE TIGER?
Human Events

• Comment: "Consider what we have done for China. We granted her Most Favored Nation trade status, brought her into the World Trade Organization, threw open the world’s largest market to Chinese goods, encouraged U.S. companies to site plants there and allowed China to run trillions of dollars in trade surpluses at our expense.In 2012, China’s trade surplus with the United States was over $300 billion, largest in history between any two nations.What has China done with the wealth accumulated from those trade surpluses with the United States? How has she shown her gratitude?She has used that wealth to lock up resources in Third World countries, build a world-class military, confront America’s friends in neighboring seas, engage in cyber-espionage, and thieve our national and corporate secrets. Is this the behavior of friends or partners?
U.S.-China Meeting’s Aim: Personal Diplomacy
New York Times

• Comment: "For Mr. Obama, who is keenly interested in Asia but has little emotional connection to China, it is a chance to escape the stifling protocol of state visits and establish a rapport with Mr. Xi that the president never enjoyed with his predecessor, Hu Jintao."
China Aims at Europe’s Wines After Solar Panel Action
New York Times

• Comment: "If China was trying to send a retaliatory signal to Mr. De Gucht personally, wine might be a good target. He owns a 50 percent stake in a wine-producing estate in the Tuscany region of Italy. The Chinese commerce ministry carefully avoided linking the solar panels to Wednesday’s announcement that it would investigate European wines for improper duties or subsidies, saying instead that it was acting in response to a complaint from Chinese wineries."
For China, summit with Obama more a meeting of equals
USA Today

• Comment: "Xi Jinping heads a nation fast swelling into superpower status.As its industrial base keeps expanding, China increasingly looks to buy U.S. companies rather than invite them to operate here, such as its recent $4.7 billion purchase of Smithfield Foods Inc."
The “Chinese Dream” Come True: Gobbling Up Assets Overseas
Zero Hedge

• Comment: "Other industries have seen similar purchases, particularly the automotive component sector. Or what’s left of it in the US, as many component makers have already moved their production and in some cases even their design centers to China in search of cheap labor. It shows: for the first four months of 2013, imports of Chinese auto components have swollen to over $5 billion and will soon be in second place, behind Mexico but ahead of Japan and Canada. Delphi, GM’s former component division, and Visteon, Ford’s former component division, have but skeleton crews left in the US"
China pork deals raise food security concerns
USA Today

• Comment: "China's agriculture industry, still dominated by small farms, is under pressure. The world's most populous nation needs to improve its productivity to prevent food shortages. And as its population grows wealthier, it's eating more protein. But chronic water shortages, lack of arable land and other environmental constraints will restrict productivity gains."The grand strategy behind these types of acquisitions is feeding their people so the people don't revolt, so the Communist Party can stay in power," Navarro said."
U.S. lawmakers air concerns about Smithfield-Shuanghui deal
Reuters

• Comment: "Republican Representative Frank Wolf of Virginia called the deal "troubling" but would not elaborate on what he found troubling. Democratic Senator Tom Harkin of Iowa, the chairman of the health and labor committee, said it was important to safeguard workers and health standards."In the review of this proposed transaction, it must be shown that the deal will protect workers, food safety standards, and U.S. national interests," he said in an emailed statement."

Tuesday, June 04, 2013
US manufacturers urge Obama to get tough on cybersecurity with China
Daily Caller

• Comment: "Just days ahead of a highly anticipated two-day summit between President Obama and Chinese President Xi Jinping, American manufacturers urged Obama to stand up for American companies against Chinese cyber espionage."
Cyber Attack Talks
Washington Free Beacon

• Comment: “We expect this to become a standing issue in the U.S.-China relationship given the importance of cybersecurity to the global economy,” the official said.“As the type of responsibilities that that entails, we believe that all nations need to abide by international norms and affirm clear rules of the road as it relates to cybersecurity. And that, frankly, means dealing with actions emanating from within your territory, so that if there are cyberthreats emerging from within another a country that pose a risk to U.S. businesses, we’re going to raise that. And so we’re going to do that with China, just as we would insist that every country meet their responsibilities.”
Cybersecurity will loom large at Obama-Xi summit
USA Today

• Comment: "The White House says that discussion of cybersecurity issues will be a central part of the summit, and top administration officials, including national security adviser Tom Donilon and Defense Secretary Chuck Hagel, have publicly called out China for cyberintrusions."

Monday, June 03, 2013
A meeting of immense scope
China Daily

• Comment: "The key issues on the meeting's agenda are likely to be the DPRK, cyber security, climate change, the Middle East, expansion of military ties and promoting stability in Asia. Bilateral and multilateral economic and trade matters will also come into the mix. Wherever possible, the California meeting should aim to provide direction on how both sides can move beyond what they have done together in the past."
In China, Concern of a Chill on Foreign Investments
New York Times

• Comment: “This case shows that contracts used to get around China’s foreign investment restrictions can be struck down by the courts,’’ said Paul W. Boltz Jr., a partner at the law firm Ropes & Gray in Hong Kong. Until then, many observers had come to regard the general absence of an official response as a sign of tacit approval — an acknowledgment that such investment could help build corporate champions and create jobs."
U.S. and China Agree to Hold Regular Talks on Hacking
New York Times

• Comment: "American officials say they do not expect the process to immediately yield a significant reduction in the daily intrusions from China. The head of the United States Cyber Command and director of the National Security Agency, Gen. Keith B. Alexander, has said the attacks have resulted in the “greatest transfer of wealth in history.” Hackers have stolen a variety of secrets, including negotiating strategies and schematics for next-generation fighter jets and gas pipeline control systems."
Hagel, in Remarks Directed at China, Speaks of Cyberattack Threat
New York Times

• Comment: “The United States has expressed our concerns about the growing threat of cyberintrusions, some of which appear to be tied to the Chinese government and military,” he said in a speech largely devoted to the Obama administration’s defense posture in Asia. At the same time, Mr. Hagel emphasized the need for more talks between the American and Chinese militaries to build trust and reduce the risk of miscalculation at a time of mounting rivalry."
President Obama likely to talk softly with China on cyber-snooping
Politico

• Comment: "Obama appears unlikely to threaten new punishments when he meets his Chinese counterpart this week in California — or else the White House might risk long-term progress on cybersecurity while hamstringing cooperation on issues like human rights and North Korea."
Chinese Bid for U.S. Pork Had Links to Wall Street
New York Times

• Comment: "Analysts say the Chinese company’s ownership structure is unlikely to complicate the review, since Shuanghui is not state-owned. But the presence of so many of Asia’s power brokers in the bid illustrates not just how deals get done in China these days but also how Wall Street and Asia’s elites are likely to collaborate on future cross-border mergers and acquisitions."
Thorny issues, opportunity at U.S.-China summit
USA Today

• Comment: "Among the issues topping Obama's agenda, the White House says, is cybersecurity. U.S. officials have expressed alarm about reports that China has been stealing American military and high-tech secrets. "The U.S. position is that the Chinese government, which is clearly involved in cyberwar against the U.S. and other countries, should cease doing it, stop its contractors from doing it, and crack down on private citizens who do it," said Denny Roy, a senior fellow at the East-West Center in Hawaii."
GOP lawmaker pushes Obama to get tough on Chinese cyberattacks in meeting with Xi
Fox News

• Comment: "China’s rampant theft of American intellectual property and the jobs that come with it is holding back our economy and impacting our competitiveness around the world," Rogers said. "China needs to see real consequences for their actions."
Chinese Manufacturing Appears to Be Stabilizing
New York Times

• Comment: "On the other hand, the final version of the HSBC index for May, compiled by the research firm Markit and released Monday, came in at 49.2 points. The reading was a downward revision from the preliminary number of 49.6, which had been published on May 23, and showed conditions at their weakest in eight months. The HSBC gauge is more focused on smaller companies, which have benefited less than their larger counterparts from the recent credit expansion, HSBC said in a research note."

Sunday, June 02, 2013
China’s Economic Empire
New York Times

• Comment: "This means that Chinese state-owned companies that enjoy a monopolistic position at home can now pursue ambitious international expansions and compete with global corporate giants. The unfairness of this situation is clearest in the steel and solar- panel industries, where China has gone from a net importer to the world’s largest producer and exporter in only a few years. It has been able to flood the market with products well below market price — and consequently destroy industries and employment in the West and elsewhere.THIS is the real threat to the United States and other countries. However, most Western governments don’t seem to be addressing China’s state-driven expansionism as an immediate priority."

Saturday, June 01, 2013
Obama fundraisers precede China summit in California
The Hill

• Comment: "The president will attend an event Thursday night in San Jose for the Democratic Senatorial Campaign Committee and then travel Friday morning to Los Angeles for a fundraiser for the Democratic National Committee. From there, Obama plans to travel to Palm Springs, where he and Xi will meet through Saturday. The conference with the Chinese president will be hosted by Sunnylands, the estate of the late publishing tycoon Walter Annenberg."
Hagel issues stern warning to China
USA Today

• Comment: "While he is not the first U.S. official to publicly blame China for computer-based attacks that steal data from U.S. government and corporate networks, he delivered the rebuke in China's backyard, with members of Beijing's government in the audience"

Thursday, May 30, 2013
What Should Obama and Xi Accomplish at Their California Summit?
China File

• Comment: "That said, the Obama-Xi tête-à-tête is immensely important. For the globetrotting leaders of the world’s most powerful countries, something approaching two days of dedicated interaction is a long time, and will surely provide ample chance for the building of a real personal relationship. If nothing else, personal affinity between the two would erect an important bulwark against potentially catastrophic misunderstanding."

Wednesday, May 29, 2013
How Chinese exports might have been exaggerated
Marketwatch

• Comment: "Exports figures from China have been under the lens this year because of discrepancies in the imports figures released by the country’s trading partners, particularly Hong Kong. The city – a special administrative region of China with its own currency – serves as a key hub for Chinese merchandise trade. In his report, Tao pointed out that Chinese data show the mainland’s exports to Hong Kong jumped 74.1% in the first quarter, while figures released separately by Hong Kong show imports from China rose only 9.9%"
Trading Companies and the Business of Illusion
Caixin

• Comment: "Like his fellow traders, Lin said he could set up two shell companies, one in Hong Kong and the other in special areas set up to encourage trade in Shenzhen, to fake trades and profit from the two city's differing yuan exchange rates. It was quite a tempting opportunity, he said. "The return rate could reach up to 20 percent, much higher than the 3 to 5 percent from real trades."
Smithfield Foods to be bought by Chinese firm Shuanghui International
Washington Post

• Comment: "Smithfield Foods, whose signature hams helped make it the world’s largest pork producer, is being bought by a Chinese firm in a deal that marks China’s largest takeover of an American consumer brand.The $4.7 billion purchase by Shuanghui International touches several sensitive fronts at once — the quick rise of Chinese investment in the United States, China’s troubled record on the environment and the acquisition of Smithfield’s animal gene technolology by a country considered to be America’s chief global competitor."
Obama urged to warn Chinese leader on cyber-security
USA Today

• Comment: "Sen. Carl Levin, D-Mich., suggested that Obama, who is scheduled to a hold two days of meetings with Xi next week in California, underscore to the newly installed Chinese president that the Senate is moving forward with legislation that would create a watch list of foreign countries that engage in economic or industrial espionage in cyberspace."
China’s Food Play Extends Its Reach, Already Mighty
New York Times

• Comment: “We are importing more and more food from China at the same time we are hearing more and more about food scandals involving Chinese companies,” said Patty Lovera, assistant director of Food and Water Watch who testified in Congress at a hearing on Chinese food imports. Food safety problems, like melamine deliberately put into pet foods and baby formula as well as unsafe levels of cadmium in rice, have plagued China. The latest episode involved fox, rat and mink meat that was doctored with gelatin, pigment and nitrates and sold as mutton."

Tuesday, May 28, 2013
Wang Tells Donilon China Must Coordinate Its Policies With U.S.
Bloomberg

• Comment: "China and the U.S. should “strengthen macroeconomic policy coordination, and jointly promote world economic recovery and growth,” Wang told Donilon today, according to a statement on the Chinese Foreign Ministry’s website. “Both sides should understand each other’s economic development strategies and policies.”
Obama to discuss cybersecurity with China's Xi: White House
Reuters

• Comment: "President Barack Obama will discuss cybersecurity with Chinese President Xi Jinping when the two leaders meet in California next week, White House spokesman Jay Carney said on Tuesday."
Report: Chinese hackers breach top weapons designs
USA Today

• Comment: "An alleged breach of U.S. systems was noted in a public report issued by the advisory panel in January, but the section of the report listing the compromised weapons system remained classified until Tuesday. The public version had warned that the Pentagon is unprepared to counter a full-scale cyber-conflict."
Chinese cyberattacks hit key US weapons systems. Are they still reliable?
Christian Science Monitor

• Comment: “The Defense Science Board, a senior advisory group made up of government and civilian experts, did not accuse the Chinese of stealing the designs,” the newspaper reported. “But senior military and industry officials with knowledge of the breaches said that the vast majority were part of a widening Chinese campaign of espionage against US defense contractors and government agencies.”

Monday, May 27, 2013
U.S., China set the stage for Obama-Xi summit
USA Today

• Comment: "Good will aside, distrust has deepened in relations in recent years as the U.S. feels its world leadership challenged and China, its power growing, demands greater deference to its interests and a larger say over global rule-setting. Chinese officials and state media regularly say Washington is thwarting China's rise, strengthening alliances in Asia to hem in Beijing and discouraging Chinese investment in the U.S. on national security issues."
Chinese ridicule Communist Party efforts to attack USA
USA Today

• Comment: "Immoral and Dishonest Americans," as the paper's bilingual, online column was titled until Saturday, aims to correct Chinese people's overly positive view of Americans. "Most Chinese people think that Americans are honest, reliable and righteous," the introduction to the column explains. These descriptions "are a bit misleading," it says before offering incidents and individuals "to provide a more objective picture of what the U.S. and Americans are really like."

Sunday, May 26, 2013
China seals first free-trade deal with Switzerland
BBC

• Comment: "This free-trade deal is the first between China and a continental European economy, and the first with one of the 20 leading economies of the globe," Mr Li told reporters after the two countries signed the preliminary agreement."This has huge meaning for global free-trade," he added."
A tussle in China over the Communist Party bowing to the Constitution
Christian Science Monitor

• Comment: "The Communist Party’s bi-weekly Red Flag Magazine struck out on Tuesday with a theoretical article dismissing constitutional government as “not suitable for socialist countries.” The system “belongs to capitalism and bourgeois dictatorship,” argued Renmin University law professor Yang Xiaoqing, not to China’s “people’s democracy.”

Friday, May 24, 2013
China Tightens Trade-Document Scrutiny After Fake-Export Reports
Bloomberg

• Comment: "Zheng Yuesheng, a spokesman for the General Administration of Customs, said last month that China is investigating possible fraud behind first-quarter export growth and said the practice of false trade declarations “does exist but is definitely not mainstream.” China’s trade surplus is one-tenth the official $61 billion reported in the first four months of the year after accounting for fake transactions used to disguise hot-money inflows, according to Bank of America."
Beijing Plans to Reduce the State’s Role in the Economy
New York Times

• Comment: "China’s leaders are under greater pressure to change as growth slows and the limitations of its state-led, investment-driven economy are becoming more evident. This month, manufacturing activity contracted for the first time in seven months, according to an independent survey by HSBC. Economists are lowering their growth forecasts and weighing the risks associated with high levels of corporate and government debt that have built up over the last five years."
Beijing Falls Short on Rebalancing
Wall Street Journal

• Comment: "China Kept Spending in 2012, Missing Shift Toward Consumer-Driven Growth"

Thursday, May 23, 2013
Proudly Built in the USA—by the Chinese
CNBC

• Comment: "At its U.S.-based projects, all the labor is American. But at its multi-billion dollar Baha Mar project in the Bahamas, CCA flies in laborers from China.While wining jobs at the state and municipal level, CCA has struggled to win any big federal projects. Yuan believes its failure to do so may be political in nature, because CCA is a foreign firm."

Wednesday, May 22, 2013
Progress on SOEs Means Answering Political Questions
Caixin

• Comment: "SOEs have a monopoly over fundamental resources and control the key sectors of the economy on behalf of the state. In addition, the vast amounts of state investment on which the economy relies for development are sent out through SOE channels. Furthermore, in the fiscal system, the opaque books of SOEs have the special functions of hiding problems from view and whitewashing blemishes. There has been much criticism of the first two issues."
Report Holds China Responsible for IP Theft
Washington Free Beacon

• Comment: "China is responsible for roughly 70 percent of all IP theft, according to the report. “[There is a] tremendous loss of revenue and reward for those who made the inventions or who have purchased licenses to provide goods and services based on them, as well as of the jobs associated with those losses,” the report said."
Hackers Find China Is Land of Opportunity
New York Times

• Comment: “I have personally provided services to the People’s Liberation Army, the Ministry of Public Security and the Ministry of State Security,” said a prominent former hacker who used the alias V8 Brother for this interview because he feared scrutiny by foreign governments. He said he had done the work as a contractor and described it as defensive, but declined to give details.And “if you are a government employee, there could be secret projects or secret missions,” the hacker said."

Tuesday, May 21, 2013
China Trade Surplus Seen by BofA at One-Tenth Customs Figure
Bloomberg

• Comment: "Lu’s calculations suggest the surplus shrank instead of tripling from a year earlier, a sign that global demand is restraining rather than boosting the world’s second-largest economy. Bank of America’s estimate underscores the size of possible discrepancies in the trade data, which has been disputed by analysts for four months, and broader skepticism about Chinese statistics from gross domestic product to jobs."

Monday, May 20, 2013
In China, Weighing Economic and Political Freedoms
New York Times

• Comment: "changes to state-owned enterprises are unlikely to be on the table. And any sweeping changes that are agreed upon will take months, or longer, to be put into place. With the economy struggling, some may question whether the government can wait nearly a year for substantive changes. I would guess it can, though no one should expect the rest of this year to be an easy one for China’s economy."
White House Sets U.S.-China Summit for California in June
New York Times

• Comment: "Mr. Obama and Mr. Xi will meet on June 7 and 8 at Sunnylands, the Walter and Leonore Annenberg estate in Southern California, the White House said. Mr. Obama already had travel scheduled on the West Coast at that time, officials said, so they decided that Sunnylands, a less formal setting, would provide a better environment for the two men to get to know each other. To prepare for the meeting, Thomas E. Donilon, the president’s national security adviser, will travel to Beijing from May 26 to 28."
Hackers From China Resume Attacks on U.S. Targets
New York Times

• Comment: "Three months after hackers working for a cyberunit of China’s People’s Liberation Army went silent amid evidence that they had stolen data from scores of American companies and government agencies, they appear to have resumed their attacks using different techniques, according to computer industry security experts and American officials."
Time to Admit China Is a Military Competitor
National Review

• Comment: "The U.S. and China are engaged in a long-term peacetime competition with economic, diplomatic and, yes, military components. The sooner Washington begins speaking honestly about our relationship with China, the sooner we’ll have policies that adequately address the challenges facing our two countries."
Obama to hold first meeting with China’s Xi
Washington Post

• Comment: "President Obama plans to hold his first meeting with China’s new president, Xi Jinping, early next month when the two leaders visit California."
Obama schedules China summit, Africa trip
USA Today

• Comment: "President Obama and President Xi will hold in-depth discussions on a wide range of bilateral, regional and global issues," said White House spokesman Jay Carney. "They will review progress and challenges in U.S.-China relations over the past four years and discuss ways to enhance cooperation, while constructively managing our differences, in the years ahead."

Wednesday, May 15, 2013
The Hollowing Out Of Chinese Manufacturing
Testosterone Pit

• Comment: "But they all have to deal with rising labor costs. So strategies are shifting. Companies are using more of what they’d been using for decades in developed countries: automation. Hardly anyone welds manually at assembly plants in high-wage countries. But they do in China. And it’s getting expensive. Nissan for example. About 65% of the welding at its Dongfeng Nissan No. 1 plant, which came on line in 2004, is done by hand. At its No. 2 plant, which began operating last year, only half of the welding is done by hand; the rest by robots. A reaction to the annual 10% wage increases."

Tuesday, May 14, 2013
Network Effects
Washington Free Beacon

• Comment: "According to U.S. officials, the Key Laboratory of Aerospace Information Security and Trusted Computing at Wuhan’s Computer Science School in central China’s Hubei Province is the latest cyber warfare research and attack center to be identified from within China’s secret cyber warfare program."
China Conducts Test of New Anti-Satellite Missile
Washington Free Beacon

• Comment: “This is not merely a threat against some American military satellites, but a threat to a what has become a vital part of the global electronic infrastructure, affecting global commerce and financial flows, to your personal finances that contribute to personal freedom.” Fisher said China has been “preaching” that other states should disarm while Beijing secretly builds space weaponry at the same time it has denied being engaged in the space arms buildup."

Monday, May 13, 2013
As China’s Economy Stumbles, Government Eyes Reform
New York Times

• Comment: "Monetary policy in China is far from tight. According to data released on Friday, China’s total social financing for April was 1.75 trillion renminbi, ahead of the median estimate of 1.5 trillion renminbi. Perhaps this loan activity will translate into more growth, or perhaps it is just barely keeping gross domestic product growth above the official target of 7.5 percent."
April Growth in China Fails to Impress
New York Times

• Comment: “This is not the start of a rally. It is a sputtering whimper as momentum continues to fade,” Xianfang Ren and Alistair Thornton, economists at IHS Global Insight in Beijing, said in a research note.Although they emphasized that “fading momentum is not the same as collapsing growth” and that the government would probably be able to engineer full-year gross domestic product growth of more than 7.5 percent this year, they added, “we feel the risks remain firmly on the downside.”

Sunday, May 12, 2013
After a Journalist’s Prodding, China Investigates a Top Official
New York Times

• Comment: "The report came more than five months after the journalist, Luo Changping, boldly challenged Mr. Liu and investigators by publicly accusing Mr. Liu of shady business deals and other wrongdoing like threatening to kill his mistress and overstating his academic qualifications. Mr. Luo laid out the charges on the Internet in early December. They lingered there, despite a denial by a spokesman for Mr. Liu and the power of censors to erase the postings, which fanned a public uproar."
The Golden Answer to Chinese Import Data
Sprott's Thoughts

• Comment: "Digging deeper into these figures, several analysts have come to the conclusion that the numbers are faulty. Bank of America Corp. and Mizuho Securities Co. analysts have gone so far to say the figures have been inflated by fake reports. An “astounding” 92.9 percent jump in exports to Hong Kong, the most in 18 years, raises questions on data quality, researcher IHS Inc. said. They even call some of the data ‘absurd’, suggesting that exporters are ‘faking orders’ to obtain export-tax rebates. These observations challenge the credibility of Chinese economic data once again."
China's Data Manipulation In One Chart, And Why The Real Data Implies Weakest GDP Growth In Over 20 Years
Zero Hedge

• Comment: "Given that the game was to get illicit dollars into China, the greater part of the scam is likely to have seen exports overinvoiced and imports underinvoiced, so this fiddle presumably served to greatly boost not just the trade surplus, but also the reported GDP nos.Although the MOC estimate only talks about 2-way trade adjustments without breaking down imports and exports separately, we can still deduce that their total is to be lowered by around $44 billion (CNY280) in QI and by another $18 (CNY110) in April alone. Intriguingly, this is of the order of the widely derided HK-China import-export discrepancy which amounted to ~$50 billion in the first three months."

Thursday, May 09, 2013
China doesn’t even want to buy our garbage anymore
Washington Post

• Comment: "It sounds weird, but the trade made a lot of sense. China had been sending so many consumer goods to the United States that all those shipping containers were coming back empty. So U.S. companies began stuffing the return-trip containers with recycled cardboard boxes, waste paper and other scrap. China could, in turn, harvest the raw materials. Everyone won."
China's growing military might: top 4 concerns for the Pentagon
Christian Science Monitor

• Comment: “China continues to leverage foreign investments, commercial joint ventures, academic exchanges, the experience of repatriated Chinese students and researchers, and state-sponsored industrial and technical espionage to increase the level of technologies and expertise available to support military research, development, and acquisition.”

Wednesday, May 08, 2013
China's Dysfunctional Industrial Policy
Real Clear Markets

• Comment: "In China's 12th Five-Year Plan, initiated in 2011, three industrial sectors were singled out, including energy, health care, and technology, with seven designated as "Strategic Emerging Industries." While not specifically considered among the "strategic emerging industries" identified in the 12th Five-Year Plan (except for so-called "clean energy vehicle" production), "automobiles and parts" was designated by China's national government as a "pillar industry" for job creation in both the 10th (2001-05) and the 11th Five-Year Plans (2006-10), and provides a valuable window into the workings of China's modern industrial policy and designated "national champions."
Chinese Trade Data Manipulation: Innocent
Zero Hedge

• Comment: "Following the last three months of far stronger than expected Chinese trade data, the fact that China's data is openly manipulated is no longer disputed by anyone - either the press, or the analyst community. Case in point, last night's surging Chinese imports and exports. On the surface: great news. Below the surface: fabricated mumbo jumbo, like virtually everything else derived from the goalseek function in China_Econ.xls, or US_seasonal_adjustments.123."
China: Pentagon Report ‘Groundless’
Washington Free Beacon

• Comment: “Regarding the issue of cyberattacks,” she said. “the Chinese side has made its position clear many times: Cybersecurity involves government and commercial secrets and personal privacy. It is not just the government, enterprises, and citizens in the United States who take this seriously, but the government, enterprises, and citizens in China also take this seriously. The Chinese side resolutely opposes all forms of hacker attacks and is ready to have calm and constructive dialogue with the American side on the issue of cybersecurity. But unwarranted accusations and hyping will only ruin the efforts and atmosphere for dialogue between the two sides.”
China’s Economy Unexpectedly Stumbles Again
New York Times

• Comment: "The reason is that multinationals have been rapidly localizing their purchases of everything from computer chips to auto parts in China instead of importing them from other Asian neighbors. So while total exports may not have been rising quickly in recent years in China, the Chinese content in each dollar of exports has been increasing. Mr. Kuijs estimated that 20.7 percent of China’s economic output came from exports last year, a figure that had bottomed out in 2009 at 19.7 percent."

Tuesday, May 07, 2013
China Trade Figures Rise Slightly, but Weaknesses Persist
New York Times

• Comment: "Exports and imports both increased last month compared with a year earlier, but the figures were harder than usual to interpret because April of last year was so weak. Imports and exports all but stopped growing in April of last year as a wide range of industries, perceiving a short, sharp domestic economic slowdown that would last until early autumn, stopped buying industrial commodities, even as foreign buyers cut orders as well."
Keeping an Eye on China
Washington Free Beacon

• Comment: "The Pentagon report made public on Monday for the first time disclosed the existence of the two new missile submarines, identified as the ballistic missile submarine dubbed the Type 096 and a new cruise-missile firing submarine called the Type 095. Those new submarines are being developed as China is deploying new Jin-class ballistic missile submarines and Shang-class nuclear powered attack submarines."
Keeping an Eye on China
Washington Free Beacon
U.S. Says China's Government, Military Used Cyberespionage
Wall Street Journal

• Comment: "China is using its computer network exploitation capability to support intelligence collection against the U.S. diplomatic, economic, and defense industrial base sectors that support U.S. national defense programs," according to the report, an annual assessment prepared at the direction of Congress."
U.S. Blames Cyber Attacks on Chinese Military
Washington Free Beacon

• Comment: "The Pentagon directly accused China of cyber attacks on American government computer systems and government contractors in its annual report to Congress, which was released Monday,"

Monday, May 06, 2013
Policy battle rages in China as slowdown feeds 'sense of crisis'
Telegraph

• Comment: "Resistance from SASAC is thwarting his efforts to reduce Beijing's stifling control over production. State firms have grown fourfold since 2003, meaning that the economy is being renationalised. The unreformed behemoths gobble up most of the available bank credit even though many are loss-making, or are grossly inefficient."
Pentagon: Chinese government waging cyberattacks
Fox News

• Comment: "In a new report on the Chinese military, the Defense Department goes a small step further than it has gone in the past, when it said that cyber-attacks originated in China and may be linked to Beijing's use of civilian experts in clandestine attacks against American companies. But over the past year, U.S. government officials and private cyber-security experts have increasingly stepped up accusations that the Chinese government is directly involved in cyber espionage against the U.S."
Espionage fuels China's fast-paced military buildup: Pentagon
Reuters

• Comment: "China is using espionage to acquire technologies to fuel its fast-paced military modernization program, the Pentagon said on Monday in an annual report that for the first time accused Beijing of trying to break into U.S. defense computer networks."

Friday, May 03, 2013
Chinese dissident urges U.S. to ensure family's fair treatment
Reuters

• Comment: "Chen, who was born blind and taught himself law, said China was using "ruffian, hooligan tactics to try and scare me into silence." He said his relatives had been increasingly harassed by Chinese authorities since mid-April, around the anniversary of his escape from 19 months of harsh house arrest in eastern Shandong province."

Wednesday, May 01, 2013
China Is Seen Nearing U.S.’s Military Power in Region
New York Times

• Comment: "China’s growing industrial might is likely to allow it to mount an increasingly formidable challenge to the military supremacy of the United States in the waters around China that include Japan and Taiwan, though it will probably seek to avoid an outright armed conflict, according to a detailed new report by a group of American researchers."
Chinese Manufacturing Growth Slows
New York Times

• Comment: "The official purchasing managers' index (PMI) fell to 50.6 in April from an 11-month high in March of 50.9. Analysts had expected the April PMI to be 51.0.The pull back on the official PMI mirrored a similar decline in a preliminary HSBC PMI last week, suggesting China's exports engine faces headwinds from the euro zone recession and sluggish growth in the United States."

Tuesday, April 30, 2013
Apple, Huawei and the trade war with China
USA Today

• Comment: "The Obama administration is taking a more aggressive stance on Chinese hacking and cyberspying, and the so-called "Asia Pivot" -- a shift in foreign policy away from the Middle East, towards Asia – is being interpreted overseas as an attempt to check China's influence. At the same time, the US is leading talks regarding the Trans-Pacific Partnership, a trade treaty involving the Asia-Pacific region and the Americas. China wasn't invited. In response, Beijing launched discussions for a rival trade agreement, the Regional Comprehensive Economic Partnership. The rest of Asia is being presented with a stark choice: them or us."

Monday, April 29, 2013
US loans from China at issue in debt-ceiling fight
Fox News

• Comment: "China is responsible for just a shade over 7 percent of that total debt. And while it remains the single largest foreign lender (just ahead of Japan), China's been slowly trimming its holdings, down from nearly 10 percent a few years ago."

Thursday, April 25, 2013
How Chinese Subsidies Changed the World
Harvard Business Review

• Comment: "Since 2008, through government subsidies, the manufacturing capacity of China's solar-panel industry grew tenfold, leading to a vast global oversupply. A surge in exports of Chinese panels depressed world prices by 75%. In 2012, China's top six solar companies had debt ratios of over 80%. Our research showed that without subsidies, these companies would be bankrupt. If the Chinese government sticks to its decision to stop funding unprofitable solar-panel manufacturers and support a revamping of the industry, more bankruptcies and restructurings are sure to follow."
Up Again, China Buys More 'Made In America'
Forbes

• Comment: “Chinese companies are buying industrial machinery, electrical machinery and medical equipment,” Aubihl said, adding soybeans to the mix of the state’s top four export items."

Tuesday, April 23, 2013
Manufacturing Growth Slows in China
New York Times

• Comment: "Weaker overall demand has also started to weigh on employment in the manufacturing sector and is likely to prompt Beijing to respond with efforts to increase domestic investment and consumption, Mr. Qu added in a statement accompanying the index."
US general aims to ease China's concerns over Obama 'pivot' to Asia
Christian Science Monitor

• Comment: "A white paper released earlier this month by China’s People's Liberation Army warns ominously, if elliptically, that “some countries are strengthening their Asia-Pacific military alliances, expanding military presence in the region, and frequently making the situation there tenser.”

Monday, April 22, 2013
U.S. and China Put Focus on Cybersecurity
New York Times

• Comment: "At the news conference, General Fang, who is the chief of the People’s Liberation Army General Staff and a member of the powerful Central Military Commission, also talked of wanting a “new kind of military relationship that is consistent with the state-to-state relationship.” He spoke with a confidence that reflected the growing strength of China’s military, including expanding its naval presence."
In US-China talks on cyber conflict, a top Chinese general owns to dangers
Christian Science Monitor

• Comment: “At a very particular building in China, a group of individuals has undertaken systematic exfiltration of a variety of materials related to the defense of the United States, among other things, over a substantial period of time,” is how FBI Director Robert Mueller described the report in a hearing on Capitol Hill earlier this month. Recently, the US military has begun to respond to such intrusions in part by advertising its own talents in cyberoffense – long a highly secret topic for the Pentagon – in the hopes it would prove to be a deterrent, in the way veiled threats sometimes are. "

Tuesday, April 09, 2013
Blind activist Chen tells US lawmakers China breaking promise
Fox News

• Comment: "Blind activist Chen Guangcheng says China is violating its promise not to persecute his family. Speaking before a congressional panel Tuesday, Chen said his nephew has been threatened by Yinan County officials with life imprisonment if he appeals his three-year sentence for assault."

Monday, April 08, 2013
U.S. business groups worried by cybersecurity law aimed at China
Reuters

• Comment: "The measure requires the NASA space agency, the Justice and Commerce departments and the National Science Foundation to get approval from law enforcement officials when buying new information technology systems, with a particular focus on whether the systems are "produced, manufactured or assembled by one or more entities that are owned, directed or subsidized" by China."

Friday, April 05, 2013
How US businesses arm China with cyberweapons
South China Morning Post

• Comment: "This episode could occur at any of the many US corporate facilities in China. It highlights an underreported feature of recent cyberattacks: much of China's hacking power was Made by the USA. For decades, US-owned technology giants have set up state-of-the-art factories, laboratories and training programmes in China. Their aim was to use a super-cheap, lightly regulated production base to supply Chinese and world markets, and to harness Chinese scientific talent."

Wednesday, April 03, 2013
Singapore warns Obama: Do more to counter a rising China
Christian Science Monitor

• Comment: "A first step the US should take to begin addressing China’s rise, according to Mr. Lee: “The US must adopt a more active trade strategy with ASEAN,” the 10 countries of the Association of Southeast Asian Nations. “In Asia,” he added, “trade is strategy.”

Sunday, March 31, 2013
Beijing Opposes U.S. Rule on Technology Imports
New York Times

• Comment: "China expressed “resolute opposition” and “strong dissatisfaction” with a new U.S. cyberespionage rule limiting imports of Chinese-made information technology products, the state media reported over the weekend."

Thursday, March 28, 2013
U.S., China cyber battle intensifies
Politico

• Comment: "There needs to be "a little pain and pinch," said Rep. Mike Rogers (R-Mich.) in an interview this week with POLITICO. The lawmaker, a longtime China critic on cybersecurity, was referring to both Beijing and the growing slate of other countries accused of spying or stealing from U.S. businesses."
US takes swipe at China following hacking accusations
Fox News

• Comment: "Buried in a spending bill signed by President Barack Obama on Tuesday is a provision that effectively bars much of the U.S. government from buying information technology made by companies linked to the Chinese government."
Two congressmen urge USTR designate China for trade secret theft
Reuters

• Comment: "Two senior Democrats in the House of Representatives on Thursday urged the Obama administration to formally target China for the theft of U.S. trade secrets, a move they said could lead to duties on Chinese goods if U.S. concerns are not addressed."

Wednesday, March 27, 2013
Chinese navy makes waves in South China Sea
USA Today

• Comment: "The appearance of a Chinese navy flotilla at an island chain 1,120 miles from its home shores is a clear sign that the new Communist regime is moving to enforce its claims to the entire South China Sea, experts said Wednesday."
The Limits of China’s Market Model
New York Times

• Comment: "In Mr. McGregor’s China, the government plays too large a role in the economy, and big state-owned entities dominate because of government subsidies and preferential treatment. Private entrepreneurs and multinational corporations are at a distinct disadvantage, one that he argues is likely to damage China’s prospects in the long run. With China determined to create its own global brands, he says, the government is putting rules and regulations in place that seem increasingly protectionist."
US takes swipe at China following hacking accusations
Fox News

• Comment: "Buried in a spending bill signed by President Barack Obama on Tuesday is a provision that effectively bars much of the U.S. government from buying information technology made by companies linked to the Chinese government."

Tuesday, March 26, 2013
Activist inspires hope even as Chinese repression grows
USA Today

• Comment: "Such efforts are termed "maintenance stability," a euphemism for heavy-handed police work and repression that is a hallmark of the political system that locked Chen up for years. It is eating a major chunk of cash as Communist Party officials nationwide target people like Chen and those he has inspired."
Richardson on Chinese Hacking: U.S. Shouldn’t Sanction ‘Yet’
Washington Free Beacon

• Comment: 'We Can’t Treat This As Another Trade Dispute'

Saturday, March 23, 2013
China may soon stop flooding the world with cheap solar panels
Washington Post

• Comment: "This week, the main Chinese subsidiary of Suntech, the world’s largest solar manufacturer, was forced into bankruptcy court. The company had missed a $541 million payment to bondholders and owes roughly $1.4 billion to China’s state-owned banks. The manufacturer had been struggling in the face of an oversupplied solar-panel market and new tariffs imposed by the United States. (There were also accusations of mismanagement.)"

Thursday, March 21, 2013
Manufacturing in China Picked Up in March
New York Times

• Comment: "A closely watched index of sentiment in the vast Chinese manufacturing sector, published by the British bank HSBC on Thursday, showed a reading of 51.7 points in March. That was a better-than-expected improvement from the 50.4 in February, when many factories shut during the Lunar New Year break, and took the reading well above the level of 50 that separates expansion from contraction."

Wednesday, March 20, 2013
Treasury Secretary Lew presses China on cyberattacks, North Korea nuclear concerns
Fox News

• Comment: "This week's talks were the start of a series of meetings that will test the potential for cooperation between the world's largest- and second-largest economies. Lew is the U.S. economic envoy to an annual high-level strategic and economic dialogue between Washington and Beijing that is due to hold its next round this summer."
Chinese Solar Panel Maker Falters as Prices Plunge
New York Times

• Comment: "The bankruptcy is a sign of the worldwide consolidation of the solar industry, which has been crippled by a glut of products on world markets and Western tariffs on Chinese products. It also signals China’s unwillingness to continue to subsidize struggling manufacturers in the industry, which is contributing to the steep decline of its green energy pursuits."

Tuesday, March 19, 2013
Lew Visit Marks U.S.-China Re-Engagement
Time

• Comment: "Lew said Washington wants to work with Beijing to reduce trade and investment barriers and to “protect the work of our innovators” — a reference to complaints about rampant Chinese copying of foreign goods from Hollywood movies to software and telecommunications technology. He said the U.S. government looks forward to China’s growth as a market for foreign goods."
Treasury's Lew in China to talk currency, cybersecurity
USA Today

• Comment: "As ties between the world's two largest economies expand in size and complexity, familiar problems from Washington's perspective remain China's huge trade surplus with the U.S., state manipulation of its yuan currency, counterfeiting of U.S. goods, and market access barriers for U.S. companies in China."
U.S. Treasury Secretary and Chinese President Meet
New York Times

• Comment: "The White House has directly accused China of widespread theft of data from American computer networks, including those of American businesses involved in the Chinese market. China’s cyberespionage against American commercial interests has attracted attention in Congress that could have negative consequences for China, analysts said."
Huntsman: Obama Admin Lacks ‘Go-To’ Person for Chinese Relations
Washington Free Beacon

• Comment: "The state-owned enterprises have been available to write their own rules for the last ten years under the last administration, under Hu Jintao and they’ve gotten a way with a lot of bad behavior, and that needs to be reigned in for a lot of markets to function properly and for Americans to have anything resembling a level playing field."
China spy case? Civilian with Top Secret access provided info, US charges.
Christian Science Monitor

• Comment: "The charges against Mr. Bishop come against the backdrop of deepening, and increasingly public, US suspicions directed toward China’s government over its knowledge of, or participation in, cyberattacks against the US and American businesses. According to US officials, cybersecurity was a topic of discussion between US Treasury Secretary Jack Lew and China’s new president, Xi Jinping, in Beijing Tuesday."

Monday, March 18, 2013
Some manufacturers say 'adios' to China
USA Today

• Comment: "But the cost of doing business in China has been rising steadily, say companies that have returned to Mexico. Salaries are surging there. The Chinese currency, the yuan, has risen in value, making goods more expensive to export. Shipping costs have risen as well, making a move to Mexico even more attractive to companies whose primary markets are in the Western hemisphere."

Sunday, March 17, 2013
China rejects U.S. hacking claims
Politico

• Comment: "Li is the highest-ranking official to comment on the hacking claims made by U.S. cybersecurity firm Mandiant that provided a detailed picture of alleged cyberspying carried out by a People’s Liberation Army unit based in Shanghai."

Friday, March 15, 2013
U.S. to press China on cyber attacks, seek deeper ties: official
Reuters

• Comment: "Treasury Secretary Jack Lew will press China to take "serious steps" to stop cyber attacks directed at the United States and urge the administration of new Chinese President Xi Jinping to accelerate economic reforms, a U.S. official said on Friday."
U.S. Court Fines Chinese Vitamin C Makers
New York Times

• Comment: "The case was striking because of the unusual defense that the Chinese companies mounted. While acknowledging in court that they had colluded to set prices, lawyers representing the Chinese companies said they were compelled to do so by the Chinese government.In court papers, China’s Ministry of Commerce supported the Chinese companies’ argument."

Thursday, March 14, 2013
Treasury chief Lew to fly to China next week
Reuters

• Comment: "During his confirmation hearing, lawmakers pressed Lew to do more to fight a weak Chinese yuan, saying it is hurting American manufacturers. Lew plans to "discuss efforts to level the playing field and create new opportunities for U.S. workers and businesses," during his visit to China, according to a statement."
In China, it's an election in name only
USA Today

• Comment: "China's National People's Congress on Thursday approved Xi Jinping as China's president, called "chairman" in Chinese. Just like the eight, small and subservient "democratic parties" wheeled out at this time of year to show China enjoys a "multi-party" system, the NPC remains a rubber-stamp parliament following orders from the ruling Communist Party."

Wednesday, March 13, 2013
U.S. welcomes China willingness to discuss cyber threats
Reuters

• Comment: "The White House on Wednesday welcomed China's willingness to hold talks with Washington about cyber security threats, amid growing U.S. concerns about hacking attacks emanating from China."

Tuesday, March 12, 2013
On think tank row, a China critic from China
Washington Post

• Comment: "Capital and resource prices are too cheap, Zhu said, which has led to an unhealthy glut of investment and a “risky” situation in which only 60 percent of the country’s industrial capacity is being used. More money needs to be pushed to families in the form of jobs and wages to boost consumption. The country’s leaders need to speed the opening of the service sector and shift away from the manufacturing focus that has driven Chinese growth for 20 years."
White House, China trade shots over hacking
USA Today

• Comment: "Increasingly, U.S. businesses are speaking out about their serious concerns about sophisticated, targeted theft of confidential business information and proprietary technologies through cyberintrusions emanating from China on an unprecedented scale," Donilon said in a speech to the Asia Society in New York."

Monday, March 11, 2013
D.C. to Beijing: Stand Down on Cyber
Washington Free Beacon

• Comment: "The remarks were the administration’s first public acknowledgement of China’s large-scale computer hacking that has involved government entities, including military cyberwarfare units. Administration officials previously avoided criticizing Beijing for the hacking that has included theft of both government and defense secrets and proprietary corporate data stolen by hackers who broke into computer networks."
U.S. Demands China Block Cyberattacks and Agree to Rules
New York Times

• Comment: "But as evidence has emerged suggesting the People’s Liberation Army is linked to hacking, the China connection has become harder for the administration not to confront head-on. The New York Times three weeks ago published evidence tying one of the most active of the Chinese groups to a neighborhood in Shanghai that is headquarters to a major cyberunit of the People’s Liberation Army. That account, based in large part on unclassified work done by Mandiant, a security firm, echoed the findings of intelligence agencies that have been tracking the Chinese attackers."
Cyber security a challenge to U.S.-China ties: White House aide
Reuters

• Comment: "Cyber security has become a growing challenge to the economic relationship between China and the United States and Beijing should recognize the scope of the problem, White House national security adviser Tom Donilon said on Monday."
US tells China to halt cyberattacks, and in a first, lays out demands
Christian Science Monitor

• Comment: "American businesses are “speaking out about their serious concerns about sophisticated, targeted theft of confidential business information and proprietary technologies through cyberintrusions emanating from China on an unprecedented scale,” Donilon said. “The international community cannot afford to tolerate such activity from any country. As the president said in the State of the Union, we will take action to protect our economy against cyberthreats.”
Obama Aide Demands China Stop Hacking
Wall Street Journal

• Comment: "The White House on Monday accused China of hacking U.S. companies on an "unprecedented scale" and demanded that the attacks stop, in the administration's most pointed public criticism yet."

Sunday, March 10, 2013
In Wake of Cyberattacks, China Seeks New Rules
New York Times

• Comment: "The remarks, by Foreign Minister Yang Jiechi, were China’s highest-level response yet to intensifying reports that the Chinese military may be engaging in cyberespionage.“Anyone who tries to fabricate or piece together a sensational story to serve a political motive will not be able to blacken the name of others nor whitewash themselves,” he said."

Saturday, March 09, 2013
China foreign minister rejects hacking accusations
USA Today

• Comment: "China's foreign minister on Saturday rejected accusations that the country's military was behind massive hacking attacks on U.S. and other foreign targets and called for more international cooperation in policing the Internet."

Friday, March 08, 2013
China Posts Surprising 22% Surge in Exports
New York Times

• Comment: "Exports rose 21.8 percent in February from a year earlier. A Reuters poll of 22 economists had forecast that February exports would grow 10.1 percent, while imports would fall 8.8 percent. Export growth to the United States was the strongest in a year, and export growth to the euro zone the strongest in 18 months."

Tuesday, March 05, 2013
China boosts military and domestic security spending
USA Today

• Comment: "Also announced was a 10.7% hike in the national defense budget to $119 billion, and a jump of 8.7% to $124 billion for domestic security. That is the third straight year that spending on domestic security, which includes dealing with riots and protests, has exceeded the military budget."
In China, communists wheel out a socialist super-hero
USA Today

• Comment: "The annual session of China's congress opened Tuesday at a time when cases of corruption and embezzlement at the highest levels of the Communist Party have been making headlines here and abroad. Tuesday also happens to be "Learn from Lei Feng Day," which honors the favorite soldier and moral model of communist China's founder, Chairman Mao."

Sunday, March 03, 2013
Chinese heighten demands ahead of congress
USA Today

• Comment: "Among the calls for change issued by individual petitioners and interest groups: gay marriage. human rights. More than one child. No more labor camps. Clean air, water and soil. Justice for the Tiananmen dead. Safer food and higher wages, too"
As Hacking Against U.S. Rises, Experts Try to Pin Down Motive
New York Times

• Comment: "Was the People’s Liberation Army, which is suspected of being behind the hacking group, trying to plant bugs into the system so they could cut off energy supplies and shut down the power grid if the United States and China ever confronted each other in the Pacific? Or were the Chinese hackers just trolling for industrial secrets, trying to rip off the technology and pass it along to China’s own "

Friday, March 01, 2013
Use trade policy to put an end to China’s hacking Read more: http://www.politico.com/story/2013/02/use-trade-policy-to-put-an-end-to-chinas-hacking-88264.html#ixzz2MKMio2IX
Politico

• Comment: "The private sector regularly warns of China’s nasty and persistent habit of using computers to steal trade secrets and intellectual property. As reported by The Wall Street Journal, Google chief Eric Schmidt describes the Chinese government as “the world’s most active and enthusiastic filterer of information” and “the most sophisticated and prolific” hacker of foreign businesses."

Wednesday, February 27, 2013
In U.S., Majority Still Names China as Top Economic Power
Gallup

• Comment: "For the third consecutive year, a slim majority of Americans, 53%, say China is the leading economic power in the world today. Thirty-two percent believe the United States is, with relatively few naming other countries. In 2008-2009, Americans were more evenly divided in their views of whether China or the United States was the leading economic power. Back in 2000, Americans overwhelmingly said the United States was."
Beijing War Prep
Washington Free Beacon

• Comment: "China’s state-controlled media has been ramping up rhetoric indicating China is preparing for a conflict over the Senkakus. Large-scale military exercises have been held in recent weeks and Chinese leaders have been reported as telling troops to prepare for combat."

Tuesday, February 26, 2013
How to improve U.S.-China relations
Politico

• Comment: "Second, the U.S. and China must continue economic growth through much-needed economic reforms. China’s 12th Five-Year Plan, a guide to its economic development through 2015, calls for rebalancing its economy from its current reliance on fixed-asset investment and exports, to one more dependent on domestic consumption"
As Chinese capital moves abroad, Europe offers an open door
Washington Post

• Comment: "The trend highlights the tension in the United States between the advantages of foreign investment and the suspicions surrounding China as an economic and military competitor. Some proposed deals in the United States have foundered on security concerns, and the Obama administration recently launched an effort to try to curb hacking, intellectual property theft and other practices that U.S. authorities have traced to China."

Monday, February 25, 2013
China's manufacturing sector stumbles
CNN Money

• Comment: "Global bank HSBC said its "flash" index of purchasing managers' sentiment fell to 50.4 in February from January's final reading of 52.3. Any reading above 50 signals expansion in the manufacturing sector."
Paper Tiger
Washington Free Beacon

• Comment: "Luttwak compared China’s situation to Germany in the 1890s after the Industrial Revolution, when German citizens became increasingly nationalistic and angry toward previous nations that invaded Germany."
In Cyberspace, New Cold War
New York Times

• Comment: "When the Obama administration circulated to the nation’s Internet providers last week a lengthy confidential list of computer addresses linked to a hacking group that has stolen terabytes of data from American corporations, it left out one crucial fact: that nearly every one of the digital addresses could be traced to the neighborhood in Shanghai that is headquarters to the Chinese military’s cybercommand."

Sunday, February 24, 2013
China Rejects Status As World’s Biggest Trader
Associated Press

• Comment: "The Commerce Ministry has taken the unusual step of publicly denying China is the new No. 1. It says China still trailed the U.S. by $15.6 billion last year — or a razor-thin 0.3 percent — under World Trade Organization standards for valuing goods."

Thursday, February 21, 2013
White House targets cybertheft as worries about China mount
Christian Science Monitor

• Comment: "The new strategy, the administration says, would slow the theft of secrets, which if left unchecked would erode or significantly damage the competitive advantage of US companies in foreign markets, diminish export prospects around the globe, and jeopardize American jobs."

Wednesday, February 20, 2013
U.S. to tackle trade secret theft from China, others
Reuters

• Comment: "Trade secret theft threatens American businesses, undermines national security and places the security of the U.S. economy in jeopardy," the White House said in a report that laid out its strategy. "These acts also diminish U.S. export prospects around the globe and put American jobs at risk."
White House announces anti-theft trade strategy following alleged China hacking
Fox News

• Comment: "The plan includes a new diplomatic push to discourage intellectual property theft abroad along with better coordination at home to help U.S. companies protect themselves. The administration says indications are that economic espionage is increasing, not only through electronic intrusion over the Internet but also through the recruitment of former employees of U.S. companies with knowledge of inside trade information."
Feds announce charges in Chinese honey import case
Fox News

• Comment: "In 2008, federal authorities began investigating allegations of illegal importing that led to charges against 14 individuals, including executives of a German food conglomerate, who were accused of evading about $80 millions in anti-dumping duties. That investigation also led to the seizure of more than 3,000 drums of honey, federal officials said."
Rogers on Chinese Hackers: ‘I Can’t Tell You How Serious This Problem Is’
Washington Free Beacon

• Comment: “We need to start identifying these individuals, looking at maybe denying visas, visas of their families,” Rogers said. “I can’t tell you how serious this problem is. There are two companies left in America. One is those companies that have been hacked and know it, and two, the companies who have been hacked and don’t know it. It is unfortunate at the scope of the problem here that we’re just not stepping up in a way to deal with it to protect American jobs.”
China's Defense Ministry attacks hacking report
USA Today

• Comment: "A statement from the Defense Ministry on Wednesday said the conclusions of the report by Virginia-based Mandiant were wrong because the addresses linking the attacks to a military facility in Shanghai could have been hijacked."
Chinese military hackers were 'noisy'
USA Today

• Comment: "The Chinese military hacking group accused of stealing huge amounts of data from U.S. organizations is one of some 20 active cyberspying groups engaging in comparable data theft and espionage, according to U.S. security companies."

Tuesday, February 19, 2013
China rejects status as world's biggest trader
U.S. News and World Reports

• Comment: "Beijing wants to be a global leader but insists it still is a poor country. It is wary of any change that might erode that status and fuel demands for action to stimulate the global economy or concessions on trade and climate change."
Massive cyberattacks from China? Report claims to expose secret 'Unit 61398.'
Christian Science Monitor

• Comment: "The report, issued by Mandiant of Alexandria, Va., is unusual in the degree to which it points the finger directly at China's military. For years, researchers have chronicled an “advanced persistent threat” against Western cyber networks and hinted that Chinese actors were the likely culprits, not outsiders coopting Chinese computers. But the Mandiant report, “APT1: Exposing One of China’s Cyber Espionage Units,” pulls no punches."
US officials addressing cyber threat at 'highest levels' with China, on heels of hacker report
Fox News

• Comment: "U.S. officials would not comment directly on the report. But they said the U.S. is bulking up its cyber-defenses while stressing a new -- albeit controversial -- White House executive order aimed at helping protect computer networks of crucial American industries from cyber attacks."
White House has raised cyber-theft issue with China
USA Today

• Comment: "The White House has repeatedly spoken to China about allegations of cyber-theft, President Obama's spokesman said Tuesday."
China’s Hack Attack Revealed
Washington Free Beacon

• Comment: “The Mandiant report provides vital insights into the Chinese government’s economic cyber espionage campaign against American companies,” Rogers said through a spokeswoman. “It is crucial that the administration begin bilateral discussions to ensure that Beijing understands that there are consequences for state sponsored espionage.”

Sunday, February 17, 2013
Film Inquiry Unnerves an Industry
New York Times

• Comment: "Last April, people briefed on the inquiry said virtually every Hollywood company with significant dealings in China had been notified in prior weeks of the inquiry into possible violations of the Foreign Corrupt Practices Act, which forbids American companies from making illegal payments to government officials or others to ease the way for operations abroad."

Tuesday, February 12, 2013
US cybersecurity plan aimed at keeping China out of America's networks
Fox News

• Comment: "While symbolic, the plan leaves practical questions unanswered: Should a business be required to tell the government if it's been hacked and U.S. interests are at stake? Can you sue your bank or water treatment facility if those companies don't take reasonable steps to protect you? And if a private company's systems are breached, should the government swoop in to stop the attacks -- and pick up the tab?"

Monday, February 11, 2013
China asks US to lift sanctions against defence firm
Economic Times

• Comment: "The US today imposed sanctions on a Chinese defence firm, prompting a strong reaction from China which sought immediate lifting of the punitive action."

Friday, February 08, 2013
10 Ways Chinese Manufacturing Makes The Rest Of The World Look Tiny
Business Insider

• Comment: "China has quickly grown to become the world's second largest economy with $7.3 trillion in gross domestic product.Much of this growth was driven by its offering of cheap labor and production to the rest of the world."
The Phantom Province in China’s Economy
New York Times

• Comment: "This week, Chinese media reported widely on China’s “phantom province,” the G.D.P. excess that resulted when the economic growth figures from 31 provinces, municipalities and regions were added up and compared to the different, national G.D.P. figure that the government uses. In 2012, the discrepancy reached a remarkable 5.76 trillion renminbi, its biggest ever and the equivalent of the output of Guangdong province, itself an economic powerhouse, the media said."
Chinese Imports and Exports Soar in January
New York Times

• Comment: "Dariusz Kowalczyk, an economist at Crédit Agricole in Hong Kong, said, “We need to wait for February results to have the full picture of trade at the start of 2013.” However, he added, “one trend is clear: exports have been doing very well recently. This may be a sign of improved external demand but is also a testimony to the resilience of Chinese exporters and to their competitiveness.”

Thursday, February 07, 2013
China's Communist party cadres launch property fire sale
Telegraph

• Comment: "Economists and experts cast doubt on the figure, but said the flow of money from China was dramatic. Li Chengyan, a professor at Peking University, suggested that a total of roughly 10,000 officials had absconded from China with as much as £100 billion."

Wednesday, February 06, 2013
The Phantom Province in China’s Economy
New York Times

• Comment: "Deliberately inflated figures from local officials are largely to blame, domestic media reported, as officials seek promotion for delivering the high growth demanded by the state. And the problem of systemic exaggeration in the economy is growing, not shrinking, as the country becomes richer and is increasingly integrated into the global economy."
Eaton CEO Says China GDP Report Overstates Growth Rate
Bloomberg

• Comment: "Based on indicators such as consumer consumption and electric power usage, China’s gross domestic product probably grew 3 percent to 4 percent last year, Cutler said yesterday in a telephone interview. Growth is accelerating now that China is past the distractions from its leadership change, he said."

Tuesday, February 05, 2013
US business group says market barriers contributed to drop in China investment
Washington Post

• Comment: "The U.S.-China Business Council’s president, John Frisbie, said that in a recent survey of its 230 member companies, nearly 10 percent of respondents reported that they had stopped or delayed a planned investment in China because of foreign ownership restrictions."
China January trade data may overstate recovery momentum
Reuters

• Comment: "But UBS believes the strength of the January numbers likely overstates the strength of the recovery in China, which suffered its slowest full year of growth in 2012 for 13 years at 7.8 percent."

Sunday, February 03, 2013
In rush to urbanize, China flattens 700 mountains
USA Today

• Comment: "Despite environmental concerns about the project's feasibility and long-term impact on this arid, polluted region, a government-hired private developer is slicing the tops off 700 low-level, barren mountains and filling in the valleys to create a 10-square-mile base for "Lanzhou New City," 8 miles from Gansu's grimy capital"

Saturday, February 02, 2013
Washington talks cybersecurity after Chinese attacks
Politico

• Comment: "In the days to come, though, it became apparent that the Times wasn’t alone: The Wall Street Journal also said it battled back Chinese hackers who spied on reporters covering issues related to the country. Sources told the Times that Bloomberg News once experienced similar difficulties. And The Washington Post acknowledged on Saturday its own run-in with digital spies thought to be operating in China. Authorities in Beijing reportedly have rejected any connection to the incidents."

Friday, February 01, 2013
IMF: The era of cheap labor in China may be ending
Washington Post

• Comment: "What it all means for United States and other businesses and workers is another story. The simplistic conclusion – rising wages over there means more jobs over here – only captures part of the dynamic, and perhaps a very small part of it. For industries of interest to the United States – higher-end manufacturing or technology and research-heavy fields – China may well fight to become or remain competitive as it works through its demographic lean years. Once a country’s wage advantage disappears, those higher value-added jobs become more important."

Thursday, January 31, 2013
In China and India, Turbulence and Volatility Are Part Of The Bargain
Forbes

• Comment: "Our analysis shows that by 2020, China and India combined will have approximately a billion middle-class consumers, whose annual spending will approach $10 trillion."
Why China Is Holding All That Debt
Zero Hedge

• Comment: "getting out of the old reserve currency system and setting up a new one is really a side story to China’s real goal, which appears to have always been that of becoming a global trade hub, and gaining a monopoly on critical resources and components."
Investment from China rises amid concern
Washington Post

• Comment: “China is now the second-largest economy in the world. They are going to surpass the U.S. And they are only starting their foreign direct investment,” Hanemann said. “There are billions and billions of dollars to come.”
Hackers in China Attacked The Times for Last 4 Months
New York Times

• Comment: "The timing of the attacks coincided with the reporting for a Times investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings."

Wednesday, January 30, 2013
Survey finds China manufacturing hits 2-year high
Las Vegas Sun

• Comment: "A survey shows China's manufacturing activity grew this month at the fastest pace in two years. The report adds further evidence that the world's second-biggest economy is coming out of a downturn."

Saturday, January 26, 2013
China could prove ultimate winner in Afghanistan
USA Today

• Comment: "It's a new role for China, as its growing economic might gives it a bigger stake in global affairs. Success, though far from guaranteed, could mean a big payoff for a country hungry for resources to sustain its economic growth and eager to maintain stability in Xinjiang."

Friday, January 25, 2013
To Fix Overproduction, China Wants to Supersize Industries
Business Week

• Comment: "Last year, China had more than 160 million tons of surplus steel and over 300 million tons of excess cement, according to a report on the website of Caijing, a financial magazine published fortnightly. Aluminum, which reached a record high of 58,800 metric tons of average daily production in China in December, according to the International Aluminum Institute, is on track to face its biggest global glut since 2009, according to a recent Barclays (BCS)report."

Thursday, January 24, 2013
China manufacturing at 2-year high
CNN Money

• Comment: "Global bank HSBC said its "flash" index of purchasing managers' sentiment rose to 51.9 in January from December's final reading of 51.5. Any reading above 50 signals expansion in the manufacturing sector."

Wednesday, January 23, 2013
Does China Plan To Establish “China Cities” And “Special Economic Zones” All Over America?
Economic Collapse Blog

• Comment: "Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to "equity". As a result, "China would own U.S. businesses, U.S. infrastructure and U.S. high-value land, all with a U.S. government guarantee against loss." Does all of this sound far-fetched? Well, it isn't. In fact, the economic colonization of America is already far more advanced than most Americans would dare to imagine."
New Path for Trade: Selling in China
New York Times

• Comment: "And yet, selling goods in China is not easy. Mr. Lieberman made the 1,500 lights only to see them gather dust in a warehouse in Guangzhou for more than four weeks because he had not yet established a local enterprise approved to process sales. “The customer couldn’t pick up the goods because we were still trying to set up something so they could buy them correctly and pay the right tax,” he said."
Chinese Manufacturing Data Suggest Muted Recovery
New York Times

• Comment: "A survey of manufacturing activity in China on Thursday provided more reassurance that the Chinese economy, buoyed by somewhat improved global trade and a string of government stimulus measures last year, has settled into a muted recovery."

Tuesday, January 22, 2013
Angry workers push back in revolt over 2-minute toilet breaks
CTV

• Comment: "Hundreds of Chinese factory workers angry about strictly timed bathroom breaks and fines for starting work late held their Japanese and Chinese managers hostage for a day and a half before police broke up the strike."

Monday, January 21, 2013
Obama's second term foe - China: Column
USA Today

• Comment: "When Congress extended Permanent Normalized Trade Relations (PNTR) to Beijing in late 2000, it didn't do much directly to reduce tariffs on Chinese exports. But it did let everyone know that high tariffs were a thing of the past. That certainty, in turn, gave businesses the go-ahead to send millions of middle-class jobs offshore. Pierce and Schott conclude that roughly 30% of American manufacturing job loss since 2001 can be tied to the China PNTR decision."

Sunday, January 20, 2013
An Overture From China Is Yet to Win Hollywood
New York Times

• Comment: "Hollywood is eager to have a partner that can help it tap into China’s fast-growing film market, and Wanda wants to strengthen its foothold in the lucrative North American market. But the slow going underscores the disconnect inherent in negotiations between parties whose goals reflect their own, more narrow interests."

Friday, January 18, 2013
The Rise of China in Technology Standards: New Norms in Old Institutions
the U.S.-China Economic and Security Review Commission

• Comment: "China’s efforts to develop unique technology standards and its rapidly increasing activities as a participant in international standardization efforts have drawn widespread attention. China does use technology standards as a protectionist tool. However, a complete review of the standardization system reveals that: i) protectionism is not the major focus of Chinese standards development efforts; and ii) it is not the main challenge China poses for American firms."
China's growth rebounds but still vulnerable
USA Today

• Comment: "Growth rose to 7.9% in the three months ending in December, up from the previous quarter's 7.4% data showed Friday. For the year, the economy grew by 7.8%, which was China's weakest annual performance since the 1990s."

Wednesday, January 16, 2013
Investment Into China Declined During 2012
New York Times

• Comment: "But the nation, with the world’s second-largest economy, after that of the United States, still drew $111.7 billion in foreign direct investment in 2012 after a record $116 billion in 2011 and maintaining the country as one of the top destinations for corporate expansion."

Tuesday, January 15, 2013
China Defends Export Data After Economists’ Skepticism
Bloomberg

• Comment: “It is possible that local governments may have tried to boost exports data by either making round trips in special trade zones” or by exporting “earlier than otherwise in an attempt to improve the annual exports data,” Goldman Sachs Group Inc.’s Beijing-based economists Yu Song and Yin Zhang wrote in a Jan. 10 note. “Having said that, there is no concrete evidence to suggest this is what actually happened.”

Monday, January 14, 2013
To Get Movies Into China, Hollywood Gives Censors a Preview
New York Times

• Comment: "One production currently facing scrutiny is Disney and Marvel’s “Iron Man 3,” parts of which were filmed in Beijing in the last month. It proceeded under the watchful eye of Chinese bureaucrats, who were invited to the set and asked to advise on creative decisions, according to people briefed on the production who asked for anonymity to avoid conflict with government or company officials. Marvel and Disney had no comment."
China Lets Media Report on Air Pollution Crisis
New York Times

• Comment: "The problem is so serious — the worst air quality since the United States Embassy began recording levels in 2008 — that hospitals reported on Monday a surge in patient admissions for respiratory problems. Beijing officials ordered government cars off the road to try to curb the pollution, which some people say has been exacerbated by a weather phenomenon, called an inversion, that is trapping dirty particles."
Smog continues to choke China
USA Today

• Comment: "The capital and 32 other cities suffered "hazardous" air this weekend, local media reported, swelling hospitals with patients reporting respiratory and heart problems. Face masks sold quickly at pharmacies, and some airports and highways suffered delays and closures amid greatly reduced visibility."
Chinese Officials Hint at Easier Access to Mainland Markets
Zero Hedge

• Comment: "Some observers have suggested that through the yen's depreciation, it will export inflation to China. The higher inflation would be a reason that officials will angle for a stronger yuan. We are skeptical. The main factor behind the recent jump in Chinese inflation was vegetables and pork and is clearly more weather than currency related. Japan has not inflation to export. The persistence of deflation is one of the drivers behind the LDP push for a weaker yen."
China Hints at Far Wider Welcome to Overseas Investors
New York Times

• Comment: "Mr. Guo has been pushing hard to remove some of these investment barriers. In his comments Monday, Mr. Guo said that foreign investors hold only about 1.5 percent of the domestic share market by value. ‘‘I think at least we can increase that 10 times,’’ he said.Some observers expressed deep skepticism at the remarks. ‘‘This is great headline stuff, but I don’t think it is particularly constructive, because you are not going to simply take the lid off and increase everything by 10 times,’’ said Fraser Howie, the co-author of ‘‘Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise.’"

Sunday, January 13, 2013
China Again Is Growing, More Slowly
New York Times

• Comment: "Yet the pace of China’s expansion may not be fast enough to do much for the rest of the world. China’s imports are growing less than half as fast as its exports, making it hard for China to become the locomotive to pull the global economy out of its half-decade funk. And overall growth is not rebounding to previous levels."
China Export Surge Spurs Data Skepticism at Goldman, UBS
Bloomberg

• Comment: "The 14.1 percent jump from a year earlier was the biggest positive surprise since March 2011, according to data compiled by Bloomberg. The increase didn’t match goods movements through ports and imports by trading partners according to UBS, while Goldman Sachs and Mizuho Securities Asia Ltd. cited a divergence from overseas orders in a manufacturing index."

Friday, January 11, 2013
Unexpected Sharp Rise in Exports From China
New York Times

• Comment: "December’s jump in exports was the fastest expansion since May last year. Exports had edged up just 2.9 percent in November, and climbed 11.6 percent in October, according to official data."
Investors Are Missing the Single Most Critical Fact About China
Zero Hedge

• Comment: "China cannot and will not be engaging in massive stimulus for the simple reason that doing so would kick off a very dangerous wave of civil unrest. Indeed, China’s new party leader Xi Jinping has openly stated that China will not be pursuing high growth rates through stimulus going forward."

Wednesday, January 09, 2013
Chinese Dam Builder Expands Reach in Solar Modules
New York Times

• Comment: “Everyone knows about the overcapacity in solar energy industry in China, but for us industrial insiders, this overcapacity is but a relative one,” he said, adding that the overcapacity is “among those with no technology — for those who have technology, the situation is the opposite.”

Tuesday, January 08, 2013
China's manufacturers vie to be the next Samsung or Sony
NBC News

• Comment: "With China's growing presence on the global stage and a new capacity for high-quality manufacturing, that's set to change, and companies like Huawei and Hisense, formerly content to play bit parts, are looking to get a bit more front and center."
Chinese challenge censorship with strike, protest
USA Today

• Comment: "Twenty stories per issue. That's how many articles the ruling Communist Party's propaganda officials changed or scrapped each week last year at one of China's most daring and respected newspapers."

Monday, January 07, 2013
Pro-democracy Protest in China After Newspaper Censored
Washington Free Beacon

• Comment: "The protest comes after the government shut down the online political magazine, Yanhuang Chunqiu (or China Through the Ages), because it posted an article on constitutional rights and political reform."
Students by Millions Fill Labor Gap in China
New York Times

• Comment: "As companies like Foxconn shift factories away from higher-cost production bases in China, like the Pearl River Delta region in Guangdong Province, they are discovering that workers in new locations across China are not as abundant as they had expected. That has prompted multinationals and their suppliers to use millions of teenage students from vocational and technical schools on assembly lines. The schools teach a variety of trades and require work experience, which in practice means students must accept work assignments to graduate."
Remember That Jobless Recovery? China’s Fault
Wall Street Journal

• Comment: "Take the case of the U.S. recession of 2001, which followed the bursting of the tech bubble and was mild by most measures. It lasted eight months. GDP declined just a bit. Unemployment topped out at 5.5% during the downturn. But it also ushered in a huge decline in manufacturing employment. About 1.5 million manufacturing jobs were lost in the first year of that downturn –and continued to fall for years afterward– far more than the 900,000 manufacturing jobs lost in the first year of the so-called Great Recession of December 2007 through mid-2009. What happened? In a word: China."

Sunday, January 06, 2013
Test for New Leaders as Chinese Paper Takes On Censors
New York Times

• Comment: "The latest indication was a speech Mr. Xi made that also was published in newspapers on Sunday. Speaking to senior leaders, Mr. Xi repeatedly invoked Deng, especially on the need to adhere to “socialism with Chinese characteristics,” a phrase often used to mean a combination of pragmatic policies and one-party rule. He also praised the pre-reform era, in what appeared to be an effort to appeal to harder-line Communists."
Study: Freer trade with China cut manufacturing employment by almost a third.
Washington Post

• Comment: "That reassurance, Pierce and Schott argue, mattered a great deal. All told, they argue that employment in the manufacturing sector in the United States was 29.6 percent lower than it otherwise would have been absent PNTR"

Friday, January 04, 2013
China’s Next Decade
American Spectator

• Comment: "In simple terms, the Chinese people as a whole are very protective of their hard-earned savings accounts and hesitate to shift to a more active consumerism. To quote the Financial Times, “The rising consensus among economists is that the export-oriented investment-led growth model that has sustained China for more than three decades is running out of steam and major reforms are needed for growth to continue.”
Chinese ASAT Missile Test Looms
Washington Free Beacon

Thursday, January 03, 2013
Chinese Cyberattack Continues
Washington Free Beacon

• Comment: "a company that builds microturbine electrical generators was attacked by the same hackers, according to two online security specialists. The software traced to the CFR web attack also was present in the website of Capstone Turbine Co., a California manufacturer of high-tech turbine engine generators.A lawyer for Capstone had no immediate comment on reports of the hack and officials at Capstone did not return telephone calls and emails seeking comment."

Tuesday, January 01, 2013
Chinese Manufacturing Sector Expands for a 3rd Month
New York Times

• Comment: "A survey of purchasing managers in the manufacturing sector, released by the national statistics bureau on the first day of the new year, produced a reading of 50.6 points for December. Figures above 50 mean the sector is growing, while those below suggest contraction."

Monday, December 31, 2012
Visa Issue in China Forces Out Times Reporter
New York Times

• Comment: "The visa troubles come amid government pressure on the foreign news media over investigations into the finances of senior Chinese leaders, a delicate subject. Corruption is widely reported in China, but top leaders are considered off limits."

Sunday, December 30, 2012
Factory Conditions in China
New York Times

• Comment: "Foxconn workers making Hewlett-Packard computers on an assembly line in Chongqing. Foxconn, China’s largest private employer, pledged to sharply curtail workers’ hours and significantly increase wages. The changes, which are expected to be fully in place next year, could create a ripple effect that benefits tens of millions of workers across the electronics industry, say employment experts."

Friday, December 28, 2012
China Toughens Its Restrictions on Use of the Internet
New York Times

• Comment: "The new regulations, issued by the Standing Committee of the National People’s Congress, allow Internet users to continue to adopt pseudonyms for their online postings, but only if they first provide their real names to service providers, a measure that could chill some of the vibrant discourse on the country’s Twitter-like microblogs. The authorities periodically detain and even jail Internet users for politically sensitive comments, such as calls for a multiparty democracy or accusations of impropriety by local officials."

Wednesday, December 26, 2012
US lambasts China for breaches of trade rules
Telegraph

• Comment: "China's trade policies and practices in several specific areas cause particular concern for the United States," said Mr Kirk in his year-end report to Congress."China's regulatory authorities at times seem to pursue anti-dumping and countervailing duty investigations and impose duties for the purpose of striking back at trading partners that have exercised their WTO rights in a way that displeases China," said the report."
Signs of Changes Taking Hold in Electronics Factories in China
New York Times

• Comment: "Even with these reforms, chronic problems remain. Many laborers still work illegal overtime and some employees’ safety remains at risk, according to interviews and reports published by advocacy organizations.But the shifts under way in China may prove as transformative to global manufacturing as the iPhone was to consumer technology, say officials at over a dozen electronics companies, worker advocates and even longtime factory critics."

Thursday, December 20, 2012
Chinese Companies Head for the Exit
New York Times

• Comment: "Valuations of companies from China that are listed in the United States have come under pressure in recent years after a wave of allegations of fraud and other accounting scandals. The Securities and Exchange Commission has deregistered the securities of nearly 50 China-based companies and has filed about 40 related fraud cases."

Wednesday, December 19, 2012
U.S.-China talks to yield "incremental" progress: Vilsack
Reuters

• Comment: "The United States has been pressing China before Wednesday's U.S-China Joint Commission on Commerce and Trade (JCCT) meeting to ease restrictions on imports of U.S. meat and horticultural products that the United States believes are not based on sound science."

Tuesday, December 18, 2012
U.S.-China talk trade in a time of transitions
Washington Post

• Comment: "But the United States still runs a massive trade deficit with China, where the Communist Party retains control over a giant complex of state-owned businesses and banks. U.S. government and business officials say that China remains a place of conflicting signals — where high-level promises, for example about better protection of intellectual property, seem to falter when it comes to implementation."

Sunday, December 16, 2012
China Plans on Continuity in Economic Policy in 2013
New York Times

• Comment: "An annual conference that helps set economic policy in China ended with a lengthy government statement Sunday warning of difficulties in the global economy as well as industrial overcapacity and financial-sector risks at home."

Thursday, December 13, 2012
China to the Rescue ... Again
NBC News

• Comment: "CNBC's Phil LeBeau reports on China's move to takeover battery maker, A123, with Alan Tonelson, U.S. Business and Industry Council."

Wednesday, December 12, 2012
China Woos Overseas Companies, Looking for Deals
New York Times

• Comment: "they are also facing scrutiny, particularly in Washington, as Chinese corporate buying trips coincide with a growing assertiveness in Chinese foreign policy, including the deployment in recent months of surveillance vessels and even naval destroyers and frigates in a series of territorial confrontations with American allies like Japan, Vietnam and the Philippines.So far this year, the dollar volume of Chinese acquisitions overseas is up 28 percent from the same period a year ago, according to Thomson Reuters data. That compares with a 2.8 percent slump in global merger and acquisition volume over all."

Monday, December 10, 2012
China Nabs Airplanes and Batteries in Latest U.S. Shopping
Business Week

• Comment: "Now, Wanxiang is excluding all military contracts held by A123 from its planned purchase. Navitas Systems, a Woodridge (Ill.)-based company, instead will spend $2.25 million to purchase A123’s government business. The asset sales must first get court approval from a U.S. bankruptcy judge at a hearing on Dec. 11."
China Reports a 2.9% Rise in Exports for November
New York Times

• Comment: "After slowing sharply this year, the Chinese economy began to bottom out in September, but then perked up again. Data released Sunday reinforced the view that China would most likely avoid a sudden, sharp slowdown — a so-called hard landing — at least for now. Industrial production grew 10.1 percent and retail sales grew 14.9 percent in November from a year earlier."

Tuesday, December 04, 2012
U.S., China in Cold War Over Accounting Rules
Business Week

• Comment: "Over the past two years, the SEC has audited scores of Chinese firms amid concerns that many are issuing financial statements that don’t reflect their real operations. The alleged violations include overstating revenue and profit. Many of them have listed on U.S. exchanges through so-called reverse mergers—when a company buys a largely inactive shell company that already has a listing and so can avoid strict disclosure requirements."

Monday, December 03, 2012
CHINA OVERTAKING US AS GLOBAL TRADER
Associated Press

• Comment: "In just five years, China has surpassed the United States as a trading partner for much of the world, including U.S. allies such as South Korea and Australia, according to an Associated Press analysis of trade data. As recently as 2006, the U.S. was the larger trading partner for 127 countries, versus just 70 for China. By last year the two had clearly traded places: 124 countries for China, 76 for the U.S."

Sunday, December 02, 2012
China shakes off hard landing by reverting to bad old ways
Telegraph

• Comment: "Yet at the same time he has boosted hopes of another cycle of torrid growth and mega-projects by pledging that the urbanisation drive would be a "huge engine" of growth over the coming decade. Another 100m migrants are expected to reach Chinese cities by 2020, lifting the urbanisation rate to 60pc."
Chinese Media Retreat After Reports of Unexpected ‘Black Jail’ Verdict
New York Times

• Comment: "A brief news article published on Sunday by a score of state-run news media outlets offered an account of an unexpected judicial verdict: a Beijing municipal court had sentenced 10 people to jail for illegally detaining and assaulting a group of citizens who had come to the capital to lodge complaints about official malfeasance in their hometown in China’s central Henan Province."

Saturday, December 01, 2012
Chinese Military Displays Unexpected Aircraft Capabilities
Heritage Foundation

• Comment: "The announcement, accompanied by videos, makes clear that China has put substantial resources—both financial and human—toward its goal of operating aircraft carriers."

Friday, November 30, 2012
China's Xi Enjoys Honeymoon With Investors
Business Week

• Comment: "Hopes are high that princeling Xi, the son of a former vice premier who pushed economic liberalization some three decades ago, will jump-start stalled reforms, including further loosening of controls over the currency, stricter monitoring of official graft to help address a growing income gap, and encouragement of a more market-based lending system that supports private enterprises."

Tuesday, November 27, 2012
U.S. Will Continue to Accept Controversial Chinese Passports
Washington Free Beacon

• Comment: "China’s new official passport carries, on its eighth page, a watermark map of China that has set off diplomatic disputes with four neighboring countries. The small map shows a version of China that includes disputed territory claimed by India, a vast stretch of the South China Sea, including islands claimed by several other countries, and the entirety of Taiwan."

Monday, November 26, 2012
Chinese Aircraft Carrier First to Takeoff, Land Planes
Washington Free Beacon

• Comment: "After years of preparation, the Chinese military performed its first aircraft carrier takeoffs and landings last week on the Liaoning."

Sunday, November 25, 2012
The Man With a Plan to Revive Chinese Growth
Business Week

• Comment: "In speeches, Li hasn’t been shy about pointing to what he thinks are China’s economic shortcomings: an unsustainable rate of investment, an overdependence on exports, weak domestic consumption, and an underdeveloped service sector. Li has also emphasized the growing income inequality that resulted in city dwellers earning 3.3 times more than their rural counterparts in 2009."
Hi-tech expansion drives China's second boom in the hinterland
Telegraph

• Comment: "By the end of this year a fifth of all computers in the world will be manufactured in Chengdu, the ancient Sichuan capital of western China. The great leap forward has come with lightning speed, and spans the gamut of hi-tech industry. The three state-telecom giants -- China Mobile, China Unicom, China Telecom -- are together spending $47bn to create the world's largest cloud-computing base at the city's Tianfu software park."

Saturday, November 24, 2012
China to subsidise rare earths producers
Financial Times

• Comment: "High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the China has changed tack on its rare earths policy amid fears that its hard line on producers threatens its dominance of the global market for the 17 key substances found in everything from smartphones to guided missiles. In a move that Beijing describes as “promoting orderly development”, it will provide direct subsidies to revive struggling producers – a tacit acknowledgment of the strategic importance of the industry."
Upbeat Chinese Report Lifts Global Markets
New York Times

• Comment: "The optimism in the markets came after a manufacturing survey from HSBC. Its Purchasing Managers Index, a gauge of activity, rose to a 13-month high of 50.4 in November from the previous month’s 49.5. Readings above 50 denote growth."

Wednesday, November 21, 2012
A Slowing China Proves a Less-Attractive Investment
Business Week

• Comment: “This year, the international economic situation is grim and complex and there are many uncertain factors,” said Commerce Ministry spokesman Shen Danyang at a press conference to announce the latest data on Nov. 20. Meanwhile, China’s overseas investment in manufacturing and other non-financial operations grew 25.8 percent, to $52.8 billion, in the first 10 months, Shen said."

Tuesday, November 20, 2012
A Slowing China Proves a Less-Attractive Investment
Business Week

• Comment: "China’s slowdown is one reason it has become a less-attractive investment target; the economy is expected to grow by 7.7 percent this year, its slowest pace in 13 years. Overcapacity in industries that include steel, cement, coal, aluminum, textiles, and machinery is squeezing profit margins. As of Sept. 30, total accounts receivable—money owed for products already delivered—for industrial companies reached 8 trillion yuan ($1.3 trillion), up 16.5 percent from September 2011. And credit is tight, particularly for small and medium-sized enterprises."
Now The Hard Part Begins: The China Challenge
The Diplomat

• Comment: "Perhaps the best news for Xi is that the bar for his success has been set relatively low by the departing administration’s failure to pursue real reforms during the preceding decade. So even minor initiatives to tackle some of China’s social and economic problems should make Xi look good by comparison."

Monday, November 19, 2012
On Asia trip, Obama presses economic counter to China
Washington Post

• Comment: "Officials from Vietnam, Malaysia, Singapore and other TPP nations are scheduled to meet with Obama in Cambodia on Tuesday to discuss the wide-ranging trade agreement. The session occurs just before Obama holds his last face-to-face talks with outgoing Chinese leader Wen Jiabao. The administration is trying to complete the TPP talks in the coming year. If successful, it will present China’s new leaders with a potentially large, U.S.-influenced trading bloc emerging on their home turf."

Sunday, November 18, 2012
Change in Negotiators Shakes Up U.S.-China Trade Policy
New York Times

• Comment: "But the significance of Mr. Chen’s departure from the Central Committee, which has 205 members and 171 alternates, has divided Western experts about what it means for China’s policies. He has a reputation as a gentlemanly figure who chooses his words with care and has not indulged in outspoken denunciations of the West during trade disputes, even as the tone of social media in China has become increasingly nationalistic on economic policy."
Corporate China's Black Hole of Debt
Business Week

• Comment: "Complicating matters is that many of the heavily indebted companies are state-owned, and the banks that lent to them are state-controlled, too. That means the government may have to pick up the tab if any of these companies is unable to manage its debt. The sudden bankruptcy of a giant state corporation would have political as well as financial consequences. This implicit government guarantee behind a portion of China’s corporate debt means the government’s actual obligations are likely higher than the 49 percent figure estimated by GK Dragonomics. Lump together corporate, public, and household debt, says the research firm, and you get a figure close to 206 percent of GDP."

Friday, November 16, 2012
Not Quite Inscrutable China
American Spectator

• Comment: "Supposedly that direction is to include a return to a greater emphasis on what is referred to as "market --oriented economic policies," as opposed to Hu Jintao's tendency to encourage more centralized, large government-owned industrial and commercial institutions. The warning that such a shift might be in the making came when Zhang Ming, a well-known political science professor at Renmin University, Beijing, publicly stated that "China's economic situation is not very good…To fix this the best method for China would be to open its state-owned enterprises (SOEs) by breaking them down into private enterprises."
Obama's historic Asian tour gets China's attention
USA Today

• Comment: "China must play by the rules," Secretary of State Hillary Rodham Clinton, who will accompany the president, said while visiting Australia. Many Chinese are concerned about American diplomatic competition for friends around the periphery of China, said Shi Yinhong, an international relations expert at People's University of China in Beijing."

Thursday, November 15, 2012
China rails against protectionism at party congress
Chicago Tribune

• Comment: "We are against it," Industry Minister Miao Wei told reporters on Wednesday when asked what he thought about protectionism as he left the Great Hall of the People after the closing session of the congress. Commerce Minister Chen Deming had set the tone earlier last week, deriding the "Cold War mentality" of Washington lawmakers who urged U.S. firms in a landmark report last month not to do business with two top Chinese telecom equipment makers because of risks to national security."
A Snapshot of China's New Leaders
Business Week

• Comment: "As expected, 59-year-old Xi Jinping got the top job as party secretary, and is first among equals, in China’s now seven-member Politburo Standing Committee. (It was reduced from nine members to streamline decision-making.) Xi, son of a reformist revolutionary, is believed to favor continuing to open up China’s economy. The new No. 2, English-speaking Li Keqiang, 57, with a law degree and a doctorate in economics from China’s elite Peking University, is also a likely proponent of more reform."
Chinese perma-growth at risk as Leninists tighten Politburo grip
Telegraph

• Comment: "Two key reformers were shut out of the seven-man Standing Committee: Guangzhou party chief Wang Yang and the head of the national party organisation Li Yuanchao.Wang Qishan – the torchbearer of economic modernisation – did make it onto the committee but will be in charge of fighting graft, not fighting dinosaurs.The North-Korea trained Zhang Dejiang – a champion of the state-owned behemoths – has risen further to prominence."
Xi Jinping takes helm of China amid reform calls
USA Today

• Comment: "Xi Jinping became leader of China on Thursday, securing the Communist Party's top spot and oversight of the military in a political transition upset by scandals that have added fuel to public demands for change as the country faces slower economic growth"
U.S. or China? Clinton says Australia needn't choose
USA Today

• Comment: "U.S. Secretary of State Hillary Clinton assured Australians they do not have to choose between the United States, their most important security ally, and China, their primary trading partner, as she ended a visit to the important Pacific ally Thursday."

Wednesday, November 14, 2012
US cybersecurity report points accusing finger at China
Christian Science Monitor

• Comment: "China’s cyber capabilities provide Beijing with an increasingly potent tool to achieve national objectives," the congressional report states. "In a strategic framework that leans heavily on cyber espionage, a diverse set of Chinese hackers use pilfered information to advance political, economic, and security objectives."
USCC 2012 ANNUAL REPORT
U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

• Comment: "Although the U.S. trade deficit in goods with China fell in 2009 as a result of the global recession, it has since surged, reaching a record high of $295.4 billion in 2011, up from $273.1 billion in 2010. For the first eight months of 2012, the United States exported $69.9 billion worth of goods to China and imported $273.1 billion from China, for a deficit of $203.1 billion. The deficit in goods with China is by far the largest among U.S. trading partners and 40.6 percent of the total in 2011. Currency appreciation leveled out in 2012: The renminbi (RMB) did not appreciate as much as in 2011, and there are even signs that the Chinese government may devalue the RMB to boost exports."
After Soothing Bromides, China Will Unveil Leadership
Business Week

• Comment: "Scientific Development has now been approved “as part of the Party’s guide for action,” along with Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, and retired leader Jiang Zemin’s “Three Represents,” said the official Xinhua News Agency on Nov. 14. “It is the crystallization of the collective wisdom of the Communist Party of China and a long-term guiding ideology the Party must adhere to,” stated the resolution on the amendment that adds Hu’s theory to the constitution."

Tuesday, November 13, 2012
Made in China
Washington Free Beacon

• Comment: “The Chinese system of state capitalism or ‘capitalism with Chinese characteristics’ has blocked many of the potential benefits of a free market, not only in China, but among China’s trading partners,” concluded a draft report by the U.S.-China Economic and Security Review Commission."

Monday, November 12, 2012
Shanghai's priests, nuns forced to attend government classes
The Boston Pilot

• Comment: "Priests and nuns in the Shanghai Diocese were forced to attend compulsory "study classes," which observers believe were imposed by Chinese authorities in response to the new Shanghai auxiliary's renunciation of the Catholic Patriotic Association."

Sunday, November 11, 2012
China’s Banking Leaders Seek to Calm Concerns Over Revived Growth
New York Times

• Comment: "Loans have been climbing steeply as a share of the economy for four years, prompting foreign bank analysts to question the sustainability of an economic model based on ever more debt invested in a wide range of industries that are already facing overcapacity."
Chinese Official Reaffirms ‘Rebalancing’ of Economy
New York Times

• Comment: "independent economists question whether any such conclusion is justified. China’s General Administration of Customs announced on Saturday morning that the country’s trade surplus in October had soared to $32 billion, the highest level in nearly four years. Exports surged 11.6 percent from a year earlier, while imports rose 2.4 percent.Chinese officials are acutely conscious of the frictions that their trade surpluses create with importer nations like the United States, and have argued for many years that the surpluses are temporary and should not be an issue because they might soon disappear. President Obama and Mitt Romney, the Republican nominee, vied during the presidential election campaign over who could be tougher in trade and currency disputes with China over the next four years."
China’s Challenge
National Review

• Comment: "Also of concern to average Chinese, Hu has failed to curb China’s investment-consumption balance, a growing problem for the national economy. Inflation remains high, driving up prices of food and consumer goods; this is the top concern for six in ten citizens, Pew reported last month.Furthermore, under Hu’s tenure, state-owned enterprises have been sheltered. That’s discouraged competition, to the detriment of Chinese consumers"

Friday, November 09, 2012
China’s Grip on Economy Will Test New Leaders
New York Times

• Comment: "For all the talk in recent years about the extent to which China has embraced capitalism, huge sectors of the economy still have not fully done so: those dominated by the country’s 145,000 state-owned enterprises."

Thursday, November 08, 2012
Popular Wrench Fights a Chinese Rival
New York Times

• Comment: "The tools have one significant difference, Mr. Craig noted. The Bionic Wrench is made in the United States. The Max Axess wrench is made in China. The shift at Sears from a tool invented and manufactured in the United States to a very similar one made offshore has already led to a loss of American jobs and a brewing patent battle."
Hu’s Goal for China: Double Incomes by 2020
Business Week

• Comment: "Hu stressed the importance of striking “a balance between the role of the government and that of the market,” an issue of growing importance as the influence of China’s state sector has surged in power in recent years. And he set a new growth target for China. “On the basis of making China’s development much more balanced, coordinated, and sustainable, we should double its 2010 GDP and per capita income for both urban and rural residents [by 2020],” said Hu."
China's Hu Jintao urges party control, curb on corruption
USA Today

• Comment: "Stakes have seemed higher still this year for the party and the public, with China seemingly facing a turning point. The old model of heavily state-directed growth that lifted hundreds of millions out of poverty and made China an economic powerhouse is faltering in the face of rising domestic debt and a weak global economy. Meanwhile, the government has to contend with the public's continued expectations of higher living standards and for less corruption and greater accountability, if not outright democracy."

Wednesday, November 07, 2012
China begins handover to new Communist Party leaders
USA Today

• Comment: "A more closely watched, though equally secretive, selection process decides who his colleagues will be on the likely seven-member Politburo Standing Committee, China's apex of power. That lineup will be confirmed only when they walk out of the Great Hall (in order of party ranking) on Nov. 15. All of the top jobs are chosen through intense horse-trading among outgoing and former leaders, although the party's public choreography was disturbed this year by the fall of Bo Xilai, a rising party boss once pegged for the Standing Committee."
China, worried by U.S. campaign rhetoric, relieved at election’s end
Washington Post

• Comment: "After Obama’s win, the official Chinese news agency Xinhua — which usually reflects the official viewpoint — ran two commentaries calling for better ties between Washington and Beijing. The first commentary said, “The U.S. needs China, as well, not just in terms of economic development but also in other sectors. The global financial crisis revealed how globalization has made countries so interdependent that no single country can survive in a bubble.” It concluded, “China and the U.S. have to work together for the sake of future world stability.”

Monday, November 05, 2012
China clamps down before crucial party congress
USA Today

• Comment: "To avoid discordant notes amid the good news, at least 130 people, including human rights lawyers and activists, have been detained or had restrictions placed upon them since September, rights group Amnesty International said Friday. "As a new generation of leaders prepares to take power in China, we are witnessing the same old tactics of repression against those that are courageous enough to peacefully challenge the regime on human rights," said the group's Roseann Rife."

Sunday, November 04, 2012
Close Army Ties of China’s New Leader Could Test the U.S.
New York Times

• Comment: "In the last four months, China has forged an aggressive, more nationalistic posture in Asia that may set the tone for Mr. Xi’s expected decade-long tenure, analysts and diplomats say, pushing against American allies, particularly Japan, for what China considers its territorial imperatives. The son of a revolutionary general, Mr. Xi, 59, boasts far closer ties to China’s fast-growing military than the departing leader, Hu Jintao, had when he took office. As Mr. Xi rose through the ranks of the Communist Party, he made the most of parallel posts in the People’s Liberation Army, deeply familiarizing himself with the inner workings of the armed forces."
China's economic destiny in doubt after leadership shock
Telegraph

• Comment: "The hardliners seem poised to snatch control of the seven-man Committee, tying the hands of incoming president Xi Xinping and premier Li Keqiang. If confirmed, long-term investors may have to rethink their core assumption about the future course of China."

Thursday, November 01, 2012
Encouraging Signs in Chinese Manufacturing Data
New York Times

• Comment: "The official purchasing managers index for October, from the logistics federation, came in at 50.2, rallying above the 50-point mark, which separates contraction from expansion, for the first time since July.The HSBC reading, which is more focused on smaller and medium-size companies, rose to an eight-month high of 49.5 in October, up from 47.9 in September. The reading was also a significant improvement from the preliminary figure of 49.1 that the bank published last week."

Sunday, October 28, 2012
Chinese Premier’s Family Disputes Article on Riches
New York Times

• Comment: "Two lawyers who said they represented the family of Prime Minister Wen Jiabao of China have issued a statement disputing aspects of a New York Times article about the family’s wealth, a rare instance of a powerful Chinese political family responding directly to a foreign media report."

Friday, October 26, 2012
China Blocks and Criticizes Investigation Into Premier
New York Times

• Comment: "China’s censors also moved with unusual swiftness on Friday to delete any social media postings alluding even tangentially to the article, which cited publicly available corporate documents in reporting that Mr. Wen’s family has controlled assets worth at least $2.7 billion."
U.S. Signs Declaration Of Dependence On China
The Onion

• Comment: [Satire]"The revolutionary pronouncement, which was ratified unanimously by representatives from across the United States, calls for formal recognition of American dependence and enumerates more than two dozen of the country’s specific dependencies on China, including a $282 billion trade deficit, the $1.15 trillion in U.S. bonds held by China’s central bank, and the fact that each of America’s 314 million residents would be utterly helpless without access to Chinese-produced clothing, plastic goods, and electronic devices every moment of every day."
In Ohio, China Is a Potent Campaign Weapon
Time

• Comment: "So it goes in the nation’s most important swing state. Twice Obama has used campaign swings to Ohio to announce new filings with the World Trade Organization complaining about Chinese trade practices. “It’s a symbolic issue. For Ohio workers especially, the outsourcing of jobs is a deep concern and has been for years,” says Paul Beck, a political scientist at Ohio State University. “So both campaigns are attacking China and blaming the other side for being too soft.”

Thursday, October 25, 2012
Presidential debate jibes ignore history of Chinese counterfeiting
Reuters

• Comment: "Romney was particularly shocked to discover that counterfeit valves -bearing fake serial numbers - were "being sold into our market and around the world" as though they'd been made by the U.S. competitor. "This can't go on," he insisted, as if this were a fraud being perpetrated for the first time during Obama's presidency. While Romney's outrage may make for good politics, history shows that Chinese counterfeiting is almost as old as America itself."

Wednesday, October 24, 2012
Mitt Chases the China Bus
Wall Street Journal

• Comment: "The Republican candidate was surprisingly blasé about a showdown that would shake the global trading system. He says a trade war is already underway and China is winning. The U.S. has to fight back,"
‘The More Obama Borrows from China, the More We’ll Have to Bow to China’
Washington Free Beacon

• Comment: New American Crossroads ad hits Obama on China policy
Data Hint at China Manufacturing Rebound
New York Times

• Comment: "Lackluster overseas demand for Chinese exports and moves last year by Beijing to dampen the rapid pace of growth and cool inflation and a red-hot property market have slowed down the Chinese economy this year. The health of the important property sector, in particular, continues to worry some analysts. They fear that many developments that were rushed out when the Chinese authorities engineered a major stimulus program in late 2008 and 2009 may ultimately go sour."

Tuesday, October 23, 2012
Both Romney, Obama say China can be a US partner if it plays by trade rules
Washington Post

• Comment: "The U.S. is running a record trade deficit with China — it reached $295.5 billion in 2011 — and Romney pointed out it has widened year-by-year."
How the Chinese See China-Bashing
Business Week

• Comment: “Merely aimed at scoring cheap political points in an election season, U.S. Republican presidential candidate Mitt Romney once again blamed China’s currency policy as the root cause for the excruciatingly high jobless rates in the United States. … Such blaming-China-on-everything remarks are as false as they are foolish, for it has never been a myth that pushing up the value of China’s currency would be of little use to boost the chronically slack job market of the world’s sole superpower, not to mention to magically turn the poor U.S. economic performance around.”
U.S. candidates pass over tough China questions in final debate
Reuters

• Comment: "Human rights, China's support for states that are foes of the United States and intensifying maritime territorial disputes that pit China against U.S. allies Japan and the Philippines went unmentioned in the 90-minute debate in Boca Raton, Florida. Also unmentioned was the impending leadership change in the world's second largest economy, as well as China's economic slowdown, which could have profound consequences for U.S. exporters."

Monday, October 22, 2012
Parched in the West but Shipping Water to China, Bale by Bale
Wall Street Journal

• Comment: "In 2012, the drought-stricken Western United States will ship more than 50 billion gallons of water to China. This water will leave the country embedded in alfalfa—most of it grown in California—and is destined to feed Chinese cows. The strange situation illustrates what is wrong about how we think, or rather don't think, about water policy in the U.S."
How China is fighting inequality — in the United States
Washington Post

• Comment: "You can be pretty confident that U.S.-Chinese trade relations will come up in Monday night’s foreign policy debate, and in particular the effect that China’s exports have had on the American economy. Both candidates have expressed a desire to crack down on Chinese trade practices. Republican presidential nominee Mitt Romney says that if elected he’ll label China a currency manipulator on the day he takes office. President Obama’s administration has filed trade enforcement cases against China and has proposed tax breaks for U.S. manufacturers who export overseas and who have lost a fair number of jobs to consumers’ preference for lower-cost goods from China."
China’s Doldrums Put Pressure on U.S. Exporters
New York Times

• Comment: "Cummins, the big Indiana engine maker, lowered its revenue forecast earlier this month and said it would eliminate 1,000 to 1,500 jobs by the end of the year, citing weak demand from China as a major reason. Schnitzer Steel Industries, a Portland, Ore., company that is one of the nation’s biggest metal recyclers, is cutting 300 jobs, or 7 percent of its work force, as scrap exports to China plunge. And on Monday, Caterpillar reported lower sales in China and cut its global outlook for 2012."
Why is China election scapegoat for Romney, Obama?
CNN Money

• Comment: "Many China watchers have couched this as an attempt to block the emerging super power's rise. China's Foreign Ministry has said U.S politicians need to treat China fairly and that in the interests of security the relationship needs to be based on trust."
A CANCER AT THE CENTER OF THE PRESIDENCY: ROBERT ROCHE A CHINESE AGENT-OF-INFLUENCE?
Big Government

• Comment: "Mr. Roche, an American citizen, is an executive in a Chinese company comprised almost entirely of Chinese citizens whose underlying core assets are owned by the Chinese government--which also has de facto operating control. Given the Chinese regime’s control over the operations of Chinese businesses, this information raises alarming questions. Former Financial Times Beijing bureau chief and author Richard McGregor explains that for state-owned enterprises, Communist Party meetings are held before corporate board meetings and Party officials make management decisions. As McGregor writes, Party “control over personnel appointments has been inviolate.”

Sunday, October 21, 2012
China Is Wary of U.S. Candidates’ Tough Talk
New York Times

• Comment: “The U.S. general election, originally thought only a battle over domestic issues — the economy, fiscal deficit and health care — has now embroiled China as a punching bag,” said Fred Hu, chairman of Primavera Capital, a private equity group in Beijing, and former Greater China chairman of Goldman Sachs. “The noises from the campaign trail are quite disconcerting. It remains to be seen whether the shrill campaign rhetoric about China will just remain as bombast.”

Friday, October 19, 2012
Obama, Romney talk tough on China -- but could it hurt the US economy?
Fox News

• Comment: “The outsourcing issue is huge,” said Jeff Johnson, president of the Washington State Labor Council. “We’ve lost 50,000 manufacturing factories and plants over the last decade. That’s about six million manufacturing jobs.” Despite strengthening exports to China, the trade imbalance grew to $295 billion in 2011. Some argue the cheap imported goods from China allow Americans to have more disposable income. As for businesses across America, as the world economy shrinks many more are figuring out how to sell their goods in China."
Under Obama, Companies Moving Profits, Jobs to China
Washington Free Beacon

• Comment: "A major auto parts supplier will relocate its operations to China in a bid to be closer to its principal customers, which include General Motors, the auto giant that also has moved major production operations to China since the Obama administration assumed majority control of the company."
US v. China: Superpower Showdown
Master of Finance

• Comment: "These giants boast the world's largest economies and active militaries, their decisions influencing politics at a global level. Despite a massive trade agreement and many diplomatic meetings, the two nations struggle to maintain the semblance of a civil relationship. As pressure mounts from U.S. leaders, China remains unfazed, cooly growing its military and economy. See how these two titans of industry and power measure up when pitted head-to-head."
In the Loop: Did China let protesters jostle Gary Locke’s car?
Washington Post

• Comment: "We’re hearing there may have been a little more to that Sept. 18 incident in Beijing when Chinese protesters, angered by a recent Japanese move on a bitterly disputed island in the East China Sea (think huge oil and gas reserves), were demonstrating at the U.S. Embassy."

Thursday, October 18, 2012
A time-honored tradition: Election year and China-bashing
Washington Post

• Comment: "China has given the United States many legitimate causes of complaint, from its human rights violations to its incessant intellectual-property theft to its saber-rattling against democratic neighbors. If Mr. Romney has it in mind to continue challenging China on those fronts, we agree. But the U.S. and Chinese economies are far too deeply intertwined to risk a trade war over currency imbalances that are gradually adjusting through peaceful means."
China Growth Suggests Economy on the Mend
Business Week

• Comment: "The good news has lessened pressure on Beijing to take further loosening measures, even as it prepares for a once-in-a-decade leadership transition, beginning at a Party Congress opening on Nov. 8. China’s central bank has left interest rates alone since July, following two cuts to the benchmark rate in one month. That followed three cuts in bank reserve ratio requirements, starting last November."
Two Charts to Show Why the Yuan Will Not Replace the Dollar Anytime Soon.
Mao Money Mao Problems

• Comment: "The Chinese Yuan will not replace the dollar because the Chinese government cannot allow it to leave the country. Otherwise, the exchange rate would collapse as Chinese capital rushed out of the country. Assume the Chinese Yuan was allowed to freely float and capital controls were removed. Why would foreigners hold yuan overseas at 0.52% if the domestic interbank rate were 3.69%?"

Wednesday, October 17, 2012
Lost In Debate: Reality Of U.S.-China Ties
Manufacturing.net

• Comment: "The title of No. 1 manufacturer is a matter of dispute. The research firm IHS Global Insight said last year that China overtook the United States in 2010, with total output of $1.995 trillion, compared with $1.952 trillion for the U.S. The National Association of Manufacturers disputed that, saying the United States still was in the lead and IHS Global Insight's figures were distorted by changes in exchange rates and other factors."
China Comes Under Scrutiny in US Presidential Debate
Voice of America

• Comment: "China has been a currency manipulator for years and years and years," he said. "And the president has a regular opportunity to label them as a currency manipulator, but refuses to do so. On day one, I will label China a currency manipulator, which will allow me as president to be able to put in place, if necessary, tariffs where I believe that they are taking unfair advantage of our manufacturers."
China Fumes Over 'Bashing'
Wall Street Journal

• Comment: "By repeatedly taking swipes at China during Tuesday's debate, President Barack Obama and Republican presidential candidate Mitt Romney apparently calculated that the political benefits would outweigh the potential costs of irritating a major trade and diplomatic partner."

Tuesday, October 16, 2012
China views dim on Obama -- but not US values
AFP

• Comment: "The Chinese public, once upbeat about US President Barack Obama, increasingly sees a hostile relationship with Washington but mostly still admires American democracy, a survey said Tuesday."
Call It Chimerica: The U.S. and China Grow Ever Closer
Business Week

• Comment: "The U.S. and China have grown closer in the last four years, bound together by an increasing flow of goods and investments. At the same time the countries have also exchanged complaints through the World Trade Organization, arguing about everything from chickens to rare earth minerals."
China and Its Trade Practices Are Coming to the Debates
New York Times

• Comment: "Many Asia experts say Mr. Romney’s comments are indeed tough. They begin with a pledge to brand Beijing a currency manipulator on his first day in office, and end with promises to increase America’s already formidable military presence in the western Pacific and sell new American fighter jets to Taiwan. Analysts say such moves would amount to a profound shift in a policy toward China that has remained remarkably constant for decades across Republican and Democratic administrations. And they would be virtually certain to upend relations with Beijing’s leaders."
How China builds so many trains, so quickly
Washington Post

• Comment: "There’s more in Evan Osnos’s deeply reported look in the New Yorker at railway construction in China. This is the flip side of all those breathless op-eds you read about China’s gleaming airports and high-speed trains and new roads. Autocrats can build quickly, but they also tend to build corruptly. America’s got real infrastructure problems, but they’re probably preferable to China’s corruption problems."

Monday, October 15, 2012
Signs of Possible Recovery Buoy Chinese Exporters
New York Times

• Comment: "Yet demand in China is still flat, executives from provinces across China said in interviews. Many companies still have sizable inventories of unsold goods. And while Chinese exports to many markets have been surprisingly strong this fall, sales to Europe are still falling, with no end in sight. In the latest sign of chronic overcapacity, wholesale prices were down 3.6 percent last month from a year earlier, China’s National Bureau of Statistics announced Monday. Prices are still rising at the consumer level but at an ever slower pace, up 1.9 percent last month from a year earlier."

Sunday, October 14, 2012
Romney, Ryan hit Obama on China
Politico

• Comment: "Ryan campaigned on the issue in Youngstown, Ohio. “Two million jobs we’ve lost, according to the International Trade Commission, because of one country, China, taking our intellectual property rights, meaning taking our patents, taking our goods that we make and copy them and selling them. That’s not correct, that’s not right, that’s cheating,” Ryan said, according to a CBS News report."

Saturday, October 13, 2012
Romney hits Obama on China policies
Reuters

• Comment: "Four years after promising to take China ‘to the mat' for its manipulative currency practices, President Obama has once again failed to live up to his word," Romney spokeswoman Andrea Saul said in a statement released by the campaign office. "We can't afford another four years of President Obama's failure to stand up to China. Mitt Romney will do it on day one of his presidency," she said."
China Exports Rise, Hinting at a Glimmer of a Revival
New York Times

• Comment: "But strengthening exports to the United States — up 5.5 percent in September compared with the same month a year ago — could also increase trade frictions at a politically touchy time for both countries. Mitt Romney, the Republican presidential nominee, and President Obama have competed this autumn to present themselves as more willing to confront China on trade issues."
Ryan: Obama soft on 'cheating' China, which is hurting U.S. manufacturing
Fox News

• Comment: “The administration had its eighth chance to label China a currency manipulator,” Ryan said during a rally at Youngstown State University. “And they’ve indicated they are going to push this deadline off until after the election. That’s eight opportunities to say: ‘You know what, play fair with us, trade with us fairly.’ ”

Friday, October 12, 2012
China seeks repeal of US solar tariffs
Boston Globe

• Comment: "The Commerce Department upheld charges of 18 percent to nearly 250 percent on Chinese solar panel producers to counter what it said was improper subsidies by Beijing to the industry. For some companies, charges are lower than preliminary tariffs announced in May."
Lenovo hopes to reach US customers faster with 'Made in USA' computers
PC Magazine

• Comment: "The company, which is based in China, earlier this month announced it would open a factory to make computers in Whitsett, North Carolina—its first such facility in the U.S. Lenovo said the factory would create about 115 manufacturing jobs and a spokesman later added that the company may expand the facility in the future, which could create more jobs."
Nobel winner Mo urges China dissident's freedom
USA Today

• Comment: "The Chinese government rejected that honor, calling it a desecration of the Nobel tradition, and chilled relations with Norway, where the prize is awarded but whose government has no say in whom it goes to. China's rulers forbid opposition parties and maintain strict control over all media."
'Made in USA' Still Sells
Business Week

• Comment: “The language of the Web is rooted in American brands, American imagery,” Adamson says. “Look at the role the social networking sites played during the Arab Spring. Facebook and Twitter have become ambassadors for the American brand, the way Ford Motor (F) and GM and General Electric (GE) were 50 years ago.”

Wednesday, October 10, 2012
China Rising! Is This The End Of The Petro-dollar?
Fox 19

• Comment: "Ben Swann’s Reality Check explains the petro-dollar and looks at how the national media isn’t telling you that China is actively working to end it."
WTF? Denver presidential debate souvenirs were 'Made in China'
Current

• Comment: "The university's souvenir bag, given to all journalists, campaign staff and campus visitors, had a series of Presidential Debate 2012 items that were made in China. That’s right. At the very site of one of the most important campaign events this year, the host campus gave U.S. textile and manufacturing workers the shaft. The baseball cap sporting a mountain/university logo and the words "Presidential Debate 2012 – University of Denver" has a label inside that says "Made in China." The water bottle featuring that same university/debate logo also says "Made in China."
As Romney Repeats Trade Message, Bain Maintains China Ties
New York Times

• Comment: "Nine years ago, the company bought two camshaft factories that employed about 500 people in Michigan. By 2007 both were shut down. Now Asimco manufactures the same components in China on government-donated land in a coastal region that China has designated an export base, where companies are eligible for the sort of subsidies Mr. Romney says create an unfair trade imbalance."

Tuesday, October 09, 2012
Foxconn 'strike' shouldn't sink iPhone 5
MSN

• Comment: So what gives? Let's start at the beginning: "According to a press release Friday from watchdog group China Labor Watch, 3,000 to 4,000 workers walked off the job in Zhengzhou in protest of strict quality-control requirements. Apparently, a few iPhone 5 models had been shipped with scratches on their cases and inspectors had been brought in to lean on the line workers. Not fond of having their shoulders looked over, the workers supposedly beat up one of the offending inspectors and forced 100 to stop doing their jobs. China Labor Watch also insisted that workers had been forced to work through the weeklong National Day holiday. After 2,000 employes rioted at a Foxconn facility in Taiyan, China, last month and temporarily shut it down, this had to be terrible news, right?"

Sunday, October 07, 2012
China's Huawei, ZTE should be kept from U.S.: draft Congress report
Reuters

• Comment: "China's top telecommunications gear makers should be kept from the U.S. market because they cannot be trusted to dodge Chinese state influence and thus pose a security threat, the U.S. House of Representatives' Intelligence Committee leaders said in a draft of a report to be released Monday."

Friday, October 05, 2012
China may soon stop handing out cheap solar panels for everyone
Washington Post

• Comment: "China’s biggest solar panel makers are suffering losses of up to $1 for every $3 of sales this year, as panel prices have fallen by three-fourths since 2008."

Thursday, October 04, 2012
Why the U.S. Needs Chinese Investment
Business Week

• Comment: "China’s investments are growing in frequency and in diversity across sectors. While Chinese overseas investments were historically thought to be strategically based on China’s hunger for natural resources, 2012 has brought a variety of transactions, from Shandong Heavy Industry’s buyout of Italian yacht maker Ferretti, to Shanghai Bright Food Group’s investment in England’s Weetabix breakfast brand, and most notably, here in the U.S., where Dalian Wanda purchased the AMC movie theater chain."

Wednesday, October 03, 2012
Chinese firm sues Obama for blocking wind farm near drone site
Reuters

• Comment: "A small Chinese firm has sued President Barack Obama for squashing its bid to build wind farms close to a naval training site, but experts say the suit is long shot for a firm that greatly underestimated U.S. suspicions about Chinese intentions."
Chinese firm sues Obama over blocked wind farm in Oregon
Fox News

• Comment: "In an amended complaint filed late Monday, Ralls Corp. said Obama "acted in an unlawful and unauthorized manner" in citing national security grounds to order it to halt construction of four wind farm projects near the Naval Weapons Systems Training Facility in Boardman, Ore. The U.S. military has acknowledged using the base to test unmanned drones and electronic warfare aircraft."

Tuesday, October 02, 2012
China: What Kind of Superpower?
Business Week

• Comment: "China is at least the world’s second-largest economy and its second-biggest military spender as well. Some policymakers in the U.S. and elsewhere, however, fear that China is a “premature superpower”—too underdeveloped and unsteady to act in a responsible manner. According to this line of thinking, an increasingly assertive China will use its clout to support abusive regimes in its own self-interest, threaten war, pursue beggar-thy-neighbor policies, and ignore what should be global goals on issues such as the environment and public health."

Sunday, September 30, 2012
Obama blocks Chinese company from owning Oregon wind farm
Fox News

• Comment: "Obama's decision was likely to be another irritant in the increasingly tense economic relationship between the U.S. and China. It also comes against an election-year backdrop of intense criticism from Republican presidential challenger Mitt Romney, who accuses Obama of not being tough enough with China."

Thursday, September 27, 2012
China cyberspies suspected in new caper: what has experts worried
Christian Science Monitor

• Comment: "But some cybersecurity professionals are waving a red flag over the Telvent hack. Dale Peterson, CEO of Digital Bond, a leading industrial control systems (ICS) security company in Sunrise Fla, says the Telvent attack looks much like one fragment of a far larger campaign targeting ICS vendors, whose products run the nation's critical industrial processes: pipelines, refineries, chemical plants, factories, and the electric grid."
In Ohio, Obama and Romney fight over China, trade
L.A Times

• Comment: "That is why one thing I will do from Day One is label China a currency manipulator," he said — a step that would trigger fresh negotiations and possibly U.S. sanctions, but might also set off a trade war."

Wednesday, September 26, 2012
Lawmakers press for broader restraints on China solar imports
Reuters

• Comment: "The lawmakers, led by Oregon Democratic Senators Ron Wyden and Jeff Merkley, criticized an earlier Commerce Department decision to exclude Chinese solar panels containing cells made in another country from preliminary duties of more than 30 percent.They argued that would allow Chinese solar panel producers to escape U.S. duties by outsourcing cell production to another country, even if the materials for the cells come from China and the final solar panels are assembled there."
In Ohio, Obama Takes On Romney Over China and Jobs
New York Times

• Comment: “Mitt Romney will not take hypocritical attacks from a president who promised to take China to the mat for its unfair trade practices and wound up being China’s doormat, at the expense of American workers. President Obama has refused to call China a currency manipulator, while the actions he touts have failed, expired or been described as mere ‘peanuts’ by trade analysts. Only one candidate in this race will end China’s cheating on trade, and that’s Mitt Romney.”
Obama (again) makes China and Romney issues in Ohio
USA Today

• Comment: "He's been talking tough on China," Obama told backers at Bowling Green State University, but added: "It sounds better than talking about all the years he spent profiting from companies that sent our jobs to China."
China Politics Stall Overhaul for Economy
New York Times

• Comment: "But today, even as China’s vaunted export manufacturing juggernaut loses force and the Shanghai stock market remains in a slump, the Communist Party appears so distracted by its politically tangled once-a-decade leadership transition that it is unwilling or unable to pursue the more ambitious agenda that many economists say is necessary to head off a far more serious crisis in the future."

Tuesday, September 25, 2012
Handling China trade requires some subtlety
Fort Wayne Journal Gazette

• Comment: "It’s an iron law of U.S. politics: You can’t go wrong bashing China. Polls show the public believes that this country is losing jobs due to unfair economic competition from abroad, especially from China. And so, every four years, presidential candidates fall all over themselves promising to get tough on imports."
Romney ad slams Obama on China trade
USA Today

• Comment: "Obama had years to stand up to China," the narrator says. "We can't afford four more." This month, Obama announced a new trade complaint against China, demanding that China stop subsidizing auto parts for exports. Obama announced the move as he campaigned in Ohio, where auto-related industries have made a comeback."

Monday, September 24, 2012
Romney ad slams Obama on China trade
USA Today

• Comment: "It's the second time this month that the GOP presidential nominee is going after Obama on China, arguing the president failed "seven times" to label China a currency manipulator."
New Week, Same Ad Themes: China and Taxes
New York Times

• Comment: "Meanwhile, as Mr. Romney tries to steer his campaign back on track after a week marred by the secretly recorded video, his new spot amplifies an early attack on Mr. Obama’s China policy. In a previous spot, Mr. Romney called China “cheaters.” This time, the country is “stealing American ideas and technology,” the announcer says, and Mr. Obama has failed to stand up to China, contributing to continued job losses and stubborn unemployment."
It's China week for Mitt Romney (again)
Politico

• Comment: "Romney adviser Ed Gillespie put out a memo putting the China-bashing in context: Mitt Romney and Paul Ryan will continue talking about the Romney-Ryan Plan for a Stronger Middle Class, with an emphasis this week on the policies that will help make trade work for America and enable us to be energy independent by 2020. They will talk about the need to protect U.S. intellectual property rights from cheaters in China, open new markets with trade agreements ignored by the Obama Administration, approve the Keystone pipeline so thousands of Americans can be working on a pipeline instead of standing in an unemployment line, and lifting the moratorium on drilling in the Gulf of Mexico."

Sunday, September 23, 2012
Fight Breaks Out at Foxconn Plant in China
New York Times

• Comment: "Taiwan's Foxconn Technology Group said a fight among workers from different production lines occurred at its Taiyuan plant in northern China early on Monday morning."

Friday, September 21, 2012
Obama’s Journey to Tougher Tack on a Rising China
New York Times

• Comment: "In meetings, Mr. Obama liked to tease two of his advisers, Mr. Bader and Lawrence H. Summers, who had helped negotiate China’s entry into the World Trade Organization during the administration of Bill Clinton. “Did you guys give away too much?” he asked them, according to a senior aide, who described it as “a running joke.”
China: For Many Expats, It's Not Worth It
Business Week

• Comment: "The growing expat angst also reflects China’s often oppressive political system, and doubts about whether the ruling party can reform itself without social instability. “One day they are going to run out of money, and run out of soldiers and police” to deal with growing unrest, says Kitto in a call from Moganshan."
The Early Word: China
New York Times

Thursday, September 20, 2012
Obama’s Evolution to a Tougher Line on China
New York Times

• Comment: "For the first time in a half dozen stilted encounters, Mr. Obama seemed to get through to the bland, tightly scripted Chinese leader. Mr. Hu dropped his talking points and asked Mr. Obama to clarify what he meant, according to two people who were in the room. The president’s answer included a clear hint that the United States would move warships to the seas off China, a step sure to antagonize the increasingly nationalistic Chinese."

Wednesday, September 19, 2012
China Resumed Treasury Buys in July as Trade Surplus Widened
Business Week

• Comment: "The Asian country’s holdings increased by $2.6 billion, or 0.2 percent, to $1.15 trillion, U.S. Treasury Department data released yesterday show. The total amount held is down 0.2 percent from 2011, when China reduced its ownership on an annual basis for the first time since the data was made available in 2001."
OBAMA ADMIN. PURCHASED CHINESE-MADE SOLAR PANELS WITH STIMULUS FUNDS
Big Government

• Comment: "The inspector general’s memo takes on more significance because the Obama administration has recently tried to claim that its green energy boondoggles like Solyndra have failed because of unfair competition from China. But now it turns out the Obama administration was hypocritically buying solar panels from China with taxpayer monies."
Ratcheting up pressure on GOP (and Obama) over China
Washington Post

• Comment: "it’s worth noting that there is a China-currency bill sitting right there in Congress that has already passed the Senate and would almost certainly pass the House if the GOP leadership scheduled a vote on it."
Ambassador's car damaged in China
Politico

• Comment: "The incident comes amid heightened vigilance for American diplomats following violent attacks on U.S. diplomatic posts in Libya, Yemen and Egypt. Embassy officials have asked the Chinese government to protect American facilities and personnel."

Tuesday, September 18, 2012

Monday, September 17, 2012
Obama in Ohio: Why is he swiping at Mitt Romney over ... China?
Christian Science Monitor

• Comment: "Ohio, along with Virginia and Florida, is considered one of the most critical battleground states for both campaigns, and no Republican has ever won the presidency without winning Ohio. While Obama talks up his trade policy and actions against Romney, his opponent has fired back, claiming that Obama's criticism of China now is all political, and that he's failed to act to help American manufacturers during his presidency."
Obama: I 'walk the walk' in US trade battles against the Chinese
The Hill

• Comment: "The Obama administration on Monday filed a new World Trade Organization suit charging China provided illegal subsidies encouraging companies to ship auto parts manufacturing jobs overseas. Obama said this action directly affects American workers, including the many factory workers who vote in Ohio."
Obama: I can “walk the walk” on China
Hot Air

• Comment: "Mitt Romney leveled some pretty heavy swings at President Obama’s China-related policies on the campaign trail last week, and it appears that the Obama campaign is ready to try and fire back (at least, fire back a bit more seriously than with the defense they tried to scrape together last week, heh)"
Obama rips China and Romney
USA Today

• Comment: "Obama "spent 43 months failing to confront China's unfair trade practices," Romney said in a statement, "and his recent actions are too little, too late for American businesses and middle-class families." Romney said, "I will not wait until the last months of my presidency to stand up to China, or do so only when votes are at stake."
U.S. files trade complaint against China over auto subsidies
Washington Post

• Comment: "The political sparring in the United States comes at a time when China is confronting political challenges of its own as a new leadership prepares to take over. The country’s rapid expansion has cooled, putting the ruling Communist Party at risk of missing economic growth targets — and probably curbing any appetite for the sort of reforms demanded by Washington."
Obama Campaigns Against China
Washington Free Beacon

• Comment: "Ohio, an important swing state in this year’s presidential election, relies heavily on the automotive industry. The automotive sector comprises about 12.4 percent of Ohio’s employment, with the auto-parts industry directly creating 54,200 jobs."
Obama announces China trade complaint in Ohio
USA Today

• Comment: "In announcing the new trade complaint, the Obama administration said Chinese subsidies are "putting U.S. auto parts manufacturers at a competitive disadvantage" and are "encouraging the outsourcing of auto parts production to China."
Obama reportedly set to launch China trade case
Fox News

• Comment: "Senior administration officials said the president will announce the new case, targeting Chinese subsidies for exports of automobiles and automobile parts, Monday during a campaign trip to Ohio. The swing state has a large manufacturing base where many blame China for depressing its industry."
Wang on Trial
Washington Free Beacon

Sunday, September 16, 2012
In Dueling Ads, Candidates Seek to Politicize Issues of China and Manufacturing
New York Times

• Comment: "United States-China relations continue to surface as an issue on the campaign trail, particularly in battleground states like Ohio where manufacturing is a major force in the local economy. Now both President Obama and Mitt Romney are running television commercials that trade accusations over who is softer on China, and who is more to blame for sending American jobs there."
Doubts grow on Mitt Romney’s China threats
Politico

• Comment: "The Republican nominee has renewed his sharp line of attack on President Barack Obama’s China policy, arguing in a new ad, on the stump and in a fundraising pitch to supporters that he would take a much brawnier approach to the abusive Chinese trade practices. He’s repeatedly said one of his first acts as president would be to formally label China a currency manipulator and slap punitive tariffs on Chinese exports to the U.S."
The End of China's Easy Growth
Telegraph

• Comment: "PwC said the US has clawed back a cost advantage of 2pc in steel output against China, at least for the North American market. Its "heat map" gives the US the edge in chemicals, primary metals, electrical products, machinery, paper, transport equipment, and wood, in that order."

Saturday, September 15, 2012
Stealing US business secrets: Experts ID two huge cyber 'gangs' in China
Christian Science Monitor

• Comment: "We're tracking over a dozen nation-state groups right now that are affiliated with China," says Dmitri Alperovitch, chief technology officer for CrowdStrike, a startup cybersecurity company focused on taking undisclosed "offensive" security measures. "We have a deep understanding of them and attribution down to the individual level. They're operating in China, and we're watching them. Even though they're unlikely be brought to justice in the US, we understand a lot today."

Friday, September 14, 2012
China: Romney's rich because of us
Politico

• Comment: "China insists the exchange rate for the yuan is set by market forces, while the Treasury Department has consistently said the yuan is undervalued. A weaker yuan makes Chinese goods cheaper in the United States, contributing to the American trade deficit with China. Labeling China a currency manipulator could potentially lead to trade sanctions against the world’s second-largest economy."
Beijing’s Backdoors
Washington Free Beacon

• Comment: "In one case, according to other U.S. officials, China several years ago sold counterfeit routers disguised as Cisco Systems routers to the Pentagon. The equipment was found to be transmitting signals as part of an apparent intelligence-gathering effort. The counterfeit routers were eventually traced to China."

Thursday, September 13, 2012
China commentary slams Romney's
Reuters

• Comment: "In a strongly worded English-language commentary, Xinhua said Romney's anti-China rhetoric, if converted into policy upon him assuming office, would trigger a catastrophic trade war and damage the already weak global economic recovery."
Romney ad hits Obama on dealings with China
USA Today

• Comment: "Under Obama, we've lost over a half-million manufacturing jobs," the narrator says. "And for the first time, China is beating us." The Romney ad opens with two stacks of goods apparently ready to be shipped out of a warehouse. One stack represents manufacturing jobs in the United States and the other jobs in China, with the U.S. one getting smaller in size and the China one getting bigger as the ad narrator speaks."
More rumors swirl on status of China's absent VP
USA Today

• Comment: "China's vice president, Xi is due to take over as Communist Party head later this year and as president next year as the country transitions to a new generation of leaders. His prolonged and unexplained disappearance has sparked rumors and raised questions about the stability of the succession process.For a fourth consecutive day, Foreign Ministry spokesman Hong Lei refused to offer any information on Xi.Early rumors said Xi, 59, threw his back out swimming or pulled a muscle playing football. As the days passed, the speculation escalated to more serious conditions, including a heart attack, stroke, or emergency surgery."

Wednesday, September 12, 2012
Scandals, missing official put China's political future in question
USA Today

• Comment: "The Communist Party controls media outlets and pressures more independent voices to conform to its dictates. But it also tries to make propaganda fun, and that has been on display recently as it attempts to keep the country stable before the leadership transition"
China's Silence Only Fans Speculation Over Missing Xi
Business Week

• Comment: "More ominously, U.S.-based Chinese website Boxun.com earlier reported that Xi, as well as the head of the discipline inspection commission He Guoqiang—a member of China’s elite nine-member Politburo Standing Committee—had been injured in separate automobile accidents the evening of Sept. 4 and were recuperating at Beijing’s 301 Military Hospital."

Tuesday, September 11, 2012
Lending in China Up in August
Reuters

• Comment: "The speeded-up approval of infrastructure investment projects in recent weeks by the National Development and Reform Commission, the country’s top economic planning agency, might require the central bank to approve the extension of more credit, analysts said. But it will not be an easy decision, they said, with the risk of fanning a flare-up in property prices and a rise in consumer inflation."

Monday, September 10, 2012
Death by China: Confronting the Dragon - A Global Call to Action
Amazon

• Comment: "This is the eBook version of the printed book. Bestselling author Peter Navarro (The Coming China Wars) and Greg Autry challenges the dominant paradigm of a "Chinese Miracle" - the one featuring a modernizing, progressive Chinese state heading toward political reform and driving global economic growth with its new found embrace of capitalism and freedom. Tearing this delusion away, Death by China documents the myriad ways that a powerful, wealthy, and corrupt Chinese Communist Party emboldened by a growing nationalistic frenzy is becoming the biggest threat to global peace, prosperity, and health since Nazi Germany."
China Output Growth Slows as Leadership Handover Looms
Bloomberg

• Comment: "China’s Commerce Minister Chen Deming said measures to support and stabilize trade will be announced soon, China Central Television reported yesterday. He also said trade in the fourth quarter will be better than in the third. China’s trade surplus was a more-than-estimated $26.7 billion as imports fell for the first time since 2009 outside of the Lunar New Year, today’s report showed. Fixed-asset investment growth in the first eight months eased to 20.2 percent, yesterday’s reports showed."
Trade Data Reinforces Slowdown in Chinese Economy
New York Times

• Comment: "Growth in exports, which represent about 25 percent of the Chinese economy and account for millions of jobs, slowed sharply in recent months because of weaker economic growth and austerity measures in Europe. Exports were up 2.7 percent from the level of a year earlier.Although that increase was better than the 1 percent growth recorded in July, it fell short of analysts’ expectations and was well below the double-digit growth rates that the export sector has managed in the past"
Spy Games
Washington Free Beacon

• Comment: "U.S. intelligence officials have said Chinese intelligence agencies conduct aggressive spying activities against U.S. military facilities and have been known to case the Pentagon’s strategic missile defense base at Fort Greeley, Alaska."

Sunday, September 09, 2012
In China, Big Slowdown Is Tied to Slow Construction
New York Times

• Comment: "Economic data released on Sunday by the National Bureau of Statistics showed the extent of the problems. Investment in new buildings and other fixed assets is in the doldrums. Manufacturers are retreating from ambitious production goals as they struggle with bloated inventories of unsold goods. Even the service sector, still underdeveloped and widely seen by economists as full of potential, is showing signs of distress."

Friday, September 07, 2012
U.S. policy on China sees little progress
USA Today

• Comment: "She insisted Thursday that the United States is standing up for its interests in Asia. But critics say Obama has failed to stop China from keeping its currency artificially low, which depresses job creation in the USA by making it cheaper for Americans to buy Chinese-made products. They say he has done little about China's military buildup, threats against neighbors and poor human rights record."
China launches £94bn infrastructure stimulus package
Telegraph

• Comment: "While the plethora of plans is stretched over several years - and lacks obvious sources of funding to cover a seven trillion yuan headline total - it is clear that the Politburo is sufficiently alarmed by mini-slump of recent months to put its reform drive on hold, opting instead for prime pumping to help the Communist Party through its handover of power later Autumn."

Thursday, September 06, 2012
Langevin facing challenge from Matson in Tuesday's Democratic primary
Providence Journal

• Comment: Matson said he would "create a level playing field for American manufacturers on imports and exports" and address currency manipulation by China."

Tuesday, September 04, 2012
China skeptical of U.S. neutrality in Asia
USA Today

• Comment: "Many Chinese people do not like Hillary" said an editorial in the Global Times, a newspaper run by the Communist Party. The newspaper stated that the United States aims to maintain its "world hegemony" partly by restricting China's rise. China's state news agency Xinhua warned that U.S. politicians "who preposterously fancy they could do gold-digging in China and rein in China's rise simultaneously should remember the old saying that no one can have his cake and eat it too."
Hillary Clinton in Asia: Are US goals on China realistic?
Christian Science Monitor

• Comment: “The flip side,” he adds, “is that the Chinese have a pretty good idea of what their interests are, and those interests very often do not align with those of the United States.”
Secretary Clinton’s Asia Tour: Keep the Pressure on South China Sea
Heritage Foundation

• Comment: "The Administration deserves high marks for its engagement of the region—particularly in Southeast Asia, where it has set a new standard. The region will expect the same of the next Administration. We simply cannot allow the Chinese to have the run of regional institutions by virtue of our perceived indifference."

Monday, September 03, 2012
How China Sees America
Foreign Policy

• Comment: "Great power" is a vague term, but China deserves it by any measure: the extent and strategic location of its territory, the size and dynamism of its population, the value and growth rate of its economy, the massive size of its share of global trade, and the strength of its military. China has become one of a small number of countries that have significant national interests in every part of the world and that command the attention, whether willingly or grudgingly, of every other country and every international organization. And perhaps most important, China is the only country widely seen as a possible threat to U.S. predominance. Indeed, China's rise has led to fears that the country will soon overwhelm its neighbors and one day supplant the United States as a global hegemon."
Global crisis moves East as China suffers rapid downturn
Telegraph

• Comment: "China’s regions have unveiled vast infrastructure and stimulus projects over recent weeks with the blessing of the Politburo, but it is unclear how these can be financed. Beijing-based media group Caixin reports that Beijing, Shanghai and other cities already face a “budget crunch” as land-sale receipts fall sharply."
As Growth Flags, China Shies From Stimulus
New York Times

• Comment: "But they also could produce nasty side effects of the sort that followed a huge stimulus package in the wake of the financial crisis in late 2008. Combined with lower interest rates and a flood of bank lending, the spending package helped the economy bounce back quickly in 2009. However, it also led to high inflation, soaring property prices and an increase in loans that could ultimately go sour."

Sunday, September 02, 2012
Obama vs. Romney 101: 4 ways they differ on China
Christian Science Monitor

• Comment: "This may be a rare issue where American business aligns more closely with Obama. The US Chamber of Commerce opposes a “manipulator” designation as unnecessary. But Romney’s get-tough position could win him points in some manufacturing swing states where anti-China sentiment runs strong."

Saturday, September 01, 2012
Report Shows Chinese Manufacturing Contracted in August
New York Times

• Comment: "Beijing has cut interest rates twice since June 1 and is pumping money into the economy by encouraging investment by state companies. But the government is moving cautiously after China’s stimulus in response to the 2008 crisis fueled inflation and a wasteful building boom."

Thursday, August 30, 2012
Garet Garrett and the Pyramids of China
Mao Money Mao Problems

• Comment: "Unfortunately, when the time comes for the Chinese economy to correct itself and the good is liquidated with the bad, it will be especially hard to tell where future fortunes are to be made. "
Rob Portman RNC speech transcript
Politico

• Comment: "Take trade with China. China manipulates its currency giving it an unfair trade advantage. So why doesn’t the president do something about it? I’ll tell you one reason – President Obama could not run up his record trillion dollar deficits if the Chinese did not buy our bonds to finance them. We are as beholden to China for bonds as we are to the Middle East for oil."
China in focus as Clinton heads to South Pacific
Fox News

• Comment: "Secretary of State Hillary Rodham Clinton will try to reassert American interests in the Asia-Pacific region in the face of China's growing influence as she kicks off a six-nation trip that will take her from the South Pacific to Russia's Far East."

Monday, August 27, 2012
Chinese Manufacturing Is Crashing
Forbes

• Comment: "The HSBC Flash Purchasing Managers’ Index for August crashed, falling to 47.8, well under the final July reading of 49.3. The dismal result, the first indication of China’s economy for this month, was far below 50, which divides expansion from contraction."
Wen Jiabao's Southern Tour for Growth
Business Week

• Comment: "Reaching China’s target of 10 percent growth in trade for the year looks increasingly challenging following a disappointing 1 percent growth in exports, recorded in July. Imports last month were up 4.7 percent, below expectations. In the first seven months of this year, exports were up 7.8 percent, with imports growing 6.4 percent. And a survey released on Aug. 23 showed China’s manufacturing is likely to contract at its fastest rate in nine months in August, with new export orders at their lowest level in three years."
"Struggle Of The Ant Tribe" - China's Broken Dreams
Zero Hedge

• Comment: "[The Chinese] people are discovering that society's resources and opportunities are increasingly concentrated in the hands of a few. People in the middle and lower strata of society are becoming increasingly marginalised and are finding that improving their lives is getting harder."

Thursday, August 23, 2012
Manufacturing in China Slows Further
New York Times

• Comment: "A closely watched barometer of China’s economic performance — a monthly survey that measures the conditions in the giant manufacturing sector — slumped sharply in August, offering one of the earliest glimpses of how the month has been progressing. The prognosis, judging by a preliminary reading of the survey published Thursday, was poor."
China Confronts Mounting Piles Of Unsold Goods
New York Times

• Comment: "Problems in China give some economists nightmares in which, in the worst case, the United States and much of the world slip back into recession as the Chinese economy sputters, the European currency zone collapses and political gridlock paralyzes the United States."
Making It Easier to Sell Made in USA in China
Business Week

• Comment: "Lavin’s connections are helping him build a new kind exporting business. Export Now (it shares his book’s title) is a middleman for U.S. manufacturers that want to sell their consumer products in China. Headquartered in Akron, not far from Lavin’s hometown of Canton, Ohio, the 15-person business handles the headache-inducing back-end work for its clients, from customs clearance to trademark registration to order fulfillment. Lavin says Export Now, which also has an office in Shanghai, is backed by “a few million dollars” in equity capital."
Chinese Missile Tests Continue
Washington Free Beacon

• Comment: "U.S. intelligence analysts have said that China is expected to field multiple warhead missiles in the near future. One reason for upgrading from single warhead missiles is China’s concern that U.S. missile defenses in the future could render the single-warhead arsenal impotent."

Wednesday, August 22, 2012
Q&A: Peter Navarro on America's Death by China
Business Week

• Comment: “The film accurately depicts the devastation China’s unfair trade practices are having on Americans. Critics giving bad reviews should get out into the heartland of America more. Viewers are deeply moved by the film if our L.A. opening is any indicator.”
China declares US energy projects violate free trade, stepping up trade spat
Washington Post

• Comment: "Monday’s announcement said U.S. government subsidies to wind, solar and hydro projects in Washington state, Massachusetts, Ohio, New Jersey and California acted as a barrier to imports but gave no details. It called on the U.S. government to give Chinese renewable energy products “fair treatment.”

Tuesday, August 21, 2012
Ready To Launch
Washington Free Beacon

• Comment: "China’s military conducted a flight test of a new submarine-launched ballistic missile last week, a launch that came a month after the test of a new multiple-warhead, ground-mobile missile, the Free Beacon has learned."

Monday, August 20, 2012
Faulty machetes with weak handles unfit for zombie apocalypse
Orlando Sentinal

• Comment: "Sorry, zombie hunters. Your weak-handled machetes from China are too dangerous.The U.S. Consumer Product Safety Commission and machete-maker Gerber Legendary Blades this week announced a voluntary recall of about 119,000 machetes, including ones marketed to zombie killers."

Friday, August 17, 2012
For Romney, China Attack Worth Backlash
National Journal

• Comment: "It's the last part, about currency manipulation, that carries the greatest charge. Romney has repeatedly vowed to declare China a "currency manipulator" on his first day in office, a decision that could have far-reaching implications for both the economies of both countries. The tough-talking rhetoric seems out of place for the businessman Romney, whose party has traditionally been a strong advocate for free trade.It shouldn't be too big a surprise, then, that in 2010 Ryan joined many Republicans who voted against legislation to crack down on China's currency manipulation. The Obama campaign quickly pounced on the discrepancy as proof the Wisconsin congressman has learned how to "flip-flop" from Romney."
China fact of the day
Marginal Revolution

• Comment: "The Hurun Report, based in Shanghai, tracks the nation’s wealthy and calculates that there were a record 271 billionaires (in U.S. dollars) in China in 2011. A third of the top 50 and five of the top 10 hold official political positions, the report says. “The richer they are, the more political positions they have,” it adds."

Thursday, August 16, 2012
Ryan has tough words for China, contradicting 2010 vote
NBC News

• Comment: "They steal our intellectual property rights. They block access to their markets. They manipulate their currency."He continued, "President Obama promised he would stop these practices. He said he’d go to the mat with China. Instead, they’re treating him like a doormat. We’re not going to let that happen. Mitt Romney and I are going to crackdown on China cheating. We’re going to make sure that trade works for Americans."
Foreign Investment Fading, China Expects Trade to Slow
New York Times

• Comment: "Data published this month showed China’s exports to the European Union sank 16.2 percent year on year in July, to $29.4 billion.July export growth over all virtually stalled, up just 1.0 percent from a year ago versus the consensus estimate in a Reuters poll of an 8.6 percent expansion. Import growth was 4.7 percent year on year in July against expectations of 7.2 percent."

Tuesday, August 14, 2012
China's Scary Slowdown May Have Limits
Business Week

• Comment: "There are some signs that the worst is over, though. In what could be the biggest leveraged buyout in Chinese history, Focus Media, the Shanghai-based display advertising company, is the target of a takeover bid by a group of private-equity investors, including the Carlyle Group. In a statement on Monday, Focus Media announced that Carlyle and the other investors had offered $27 for each of its American depositary shares, 15 percent more than the company’s Aug. 10 closing price, in a bid that values Focus Media at $3.5 billion."
Exclusive: Senators question A123's Chinese deal
Reuters

• Comment: "Two Republican senators on Tuesday questioned whether the battery-maker A123 Systems Inc should continue to receive U.S. government funds in light of a deal with a Chinese firm to invest hundreds of millions of dollars in the faltering company."

Sunday, August 12, 2012
Peak Oil? How about Peak China?
The American Interest

• Comment: "Of greater concern is that China has backed away from market reforms in the last decade and embraced a version of “state capitalism” that emphasizes the state far more than it does capitalism. But as state-run entities have become more powerful, their political backers—and financial beneficiaries—have an even greater stake in blocking attempts at reform."

Saturday, August 11, 2012
Two Prisms for Looking at China’s Problems
New York Times

• Comment: "Beijing is often accused of manipulating the value of its currency, the renminbi, to subsidize its manufacturing. The government also funnels domestic savings into the national banking system and grants subsidies to politically favored businesses, and it seems obsessed with building infrastructure. All of this tips the economy in very particular directions."
China Asserts Sea Claim With Politics and Ships
New York Times

• Comment: "The leadership in Beijing appears to have fastened on to the South China Sea as a way of showing its domestic audience that China is now a regional power, able to get its way in an area it has long considered rightfully its own. Some analysts view the stepped-up actions as a diversion from the coming once-a-decade leadership transition, letting the government show strength at a potentially vulnerable moment."

Friday, August 10, 2012
Chinese Export Growth Tumbles
New York Times

• Comment: "Imports, too, disappointed, with an increase of 4.7 percent, underscoring that domestic demand had not been buoyed as much as hoped by efforts to foster bank lending and infrastructure work."
China’s slowing economy could complicate relationship with U.S.
Washington Post

• Comment: "China is turning to policies that may benefit its economy at the expense of the United States’s. This year, for instance, China has surprised a wide range of observers by allowing its currency to lose value relative to the dollar, which makes its exports cheaper than America’s. And there are prominent calls inside the country for the renminbi to fall further."

Thursday, August 09, 2012
After federal grant, US battery-maker taken over by Chinese firm
Fox News

• Comment: "Wanxiang Group Corp., one of China's biggest parts makers, offered a $450 million lifeline to A123 Systems Inc., a maker of advanced batteries for electric vehicles that received U.S.-government backing. The deal would put the firm's lithium-ion technology and its U.S.-funded manufacturing plant into the hands of a company that has slowly acquired a passel of auto assets across the Midwest."
Growth Flagging in China, Government Data Show
New York Times

• Comment: "Industrial output, a major measure of how healthy the Chinese manufacturing sector is, grew 9.2 percent from a year earlier, far below the 9.8 percent that analysts polled by Reuters had expected. The figure also marked a slowdown from the 9.5 percent seen in June."
Hard landing for China as factory prices fall and deflation looms
Telegraph

• Comment: “The hard landing has happened,” said Charles Dumas from Lombard Street Research. “We don’t believe offical data. We think GDP slowed to a 1pc rate in the second quarter.” A blizzard of weak data has caught policy-makers off guard, though shares rallied in Shanghai on hopes for monetary loosening from China’s central bank after consumer price inflation (CPI) fell to 1.8pc."

Tuesday, August 07, 2012
China's citizens hear little as new leaders chosen
USA Today

• Comment: "China's Communist Party "believes its secretive system of choosing leaders is better for delivering stability," Zhang said. "In China, power comes from the top. I believe power that comes from the citizens is best, but China is not yet at that stage."

Monday, August 06, 2012
Senators ask Chinese to help stop flood of fake IDs
USA Today

• Comment: "We are writing with grave concern regarding recent reports detailing how individuals can obtain high quality counterfeit driver's licenses from companies based in China, as relayed in a June 10, 2012, USA TODAY article. … We remain concerned that high-quality counterfeit identification documents will get into the hands of terrorists that can use them to circumvent our security infrastructure in their plot to harm our country."

Thursday, August 02, 2012

Tuesday, July 31, 2012
China's Biggest Brands Try to Raise Their Profile
Business Week

• Comment: "A decade later, Haier is still trying to win over American consumers. It’s had some success in niches such as minifridges for hotel rooms and college dorms, but it’s yet to make inroads in mainstream products such as full-size refrigerators and washing machines. Haier’s U.S. head count tells the story: about 250 workers at the South Carolina plant plus 220 working on U.S. sales and marketing. It has 80,000 workers worldwide. “We had a few ups and downs,” says Shariff Kan, president of Haier America."

Sunday, July 29, 2012
China's rapid industrialization fuels more public protests
USA Today

• Comment: "As China keeps up its frenzied pace of industrialization and urbanization, more protests are inevitable as China continues to "deny the communities the right to be informed and participate," said Ma Jun of the Institute for Public and Environmental Affairs."
China's Gift to U.S. Homeowners
Business Week

• Comment: "They are increasingly rich, hungry for the good things this country has to offer, buying high-end homes, and don’t mind paying huge amounts of cash upfront to get them without going into debt. If you don’t think this reads like a typical American story today, you’re right—these new homeowners are Chinese living in the U.S."

Saturday, July 28, 2012
Senator warns China on trade in review of oil deal
Reuters

• Comment: "In a letter to Treasury Secretary Timothy Geithner, Schumer suggested the United States should withhold its blessing for the deal unless China addresses complex disputes over government procurement, foreign investment reviews and intellectual property rights."

Thursday, July 26, 2012
Who will get tough on China?
Washington Post

• Comment: "Why did our leaders fail to act? The apologists say the geopolitical situation is too delicate for such hardball. We want China to take its place in the community of nations. We don’t want China to implode as it rockets from third world to first. Beijing needs to create zillions of jobs each year lest it face social instability. Let’s cut them some slack, we’re basically told."
Political Worries in U.S. and China Color Obama Aide’s Beijing Visit
New York Times

• Comment: "The political jockeying at China’s expense even before the presidential campaign gets fully under way makes the leadership here uneasy, foreign policy experts say. Mr. Hu raised the issue with Mr. Obama during their talks last month on the sidelines of an international conference in Mexico, the experts said."
China accused of censoring Beijing flood damage, deaths
USA Today

• Comment: "China's state-controlled media continues to publish and broadcast positive news stories about the relief effort while censors delete negative postings online."

Wednesday, July 25, 2012
The Romney Prepared Text
Time

• Comment: "We face another continuing challenge in a rising China. China is attentive to the interests of its government – but it too often disregards the rights of its people. It is selective in the freedoms it allows; and, as with its one-child policy, it can be ruthless in crushing the freedoms it denies. In conducting trade with America, it permits flagrant patent and copyright violations … forestalls American businesses from competing in its market … and manipulates its currency to obtain unfair advantage. It is in our mutual interest for China to be a partner for a stable and secure world, and we welcome its participation in trade. But the cheating must finally be brought to a stop. President Obama hasn’t done it and won’t do it. I will."
China-Canada oil deal shows more U.S. drilling needed: Senator
Reuters

• Comment: "China's state-owned oil company CNOOC Ltd. launched a $15.1 billion takeover bid for Canada's Nexen Inc, a company with operations in the Gulf of Mexico as well as in Canada's oilsands.Hoeven said the deal shows the United States needs to do more to aggressively develop its own resources."

Tuesday, July 24, 2012
China Manufacturing Output Slows Its Slide
New York Times

• Comment: "The HSBC flash China manufacturing purchasing managers index rose to 49.5 in July from 48.2 in June, rising close to the level — 50 — that divides expansion from contraction. The increase was driven by a jump in the subindex on output, which rose to 51.2, the best showing since October 2011."

Monday, July 23, 2012
U.S., China begin annual human rights dialogue
USA Today

• Comment: "Human rights groups urged the U.S. to press China over a crackdown on rights lawyers and activists and repression in Tibet — where dozens of Buddhists have set themselves on fire in the past year to protest Beijing's authoritarian rule. Exiled Chinese dissident, Chen Guangcheng, whose case caused a diplomatic crisis between the two powers this spring, also released a statement, expressing fears for his family members back in China."
Carcinogen Found in Chinese Baby Formula
New York Times

• Comment: "A month after large batches of Chinese baby formula were found to contain dangerous levels of mercury, state media outlets reported Monday that the authorities have discovered more shipments of contaminated formula, this time poisoned with a cancer-causing toxin."

Friday, July 20, 2012
China Will Investigate U.S. and Korean Polysilicon Imports
New York Times

• Comment: "China will open investigations into imported U.S. and South Korean solar-grade polysilicon, the country’s trade ministry said Friday, in the latest instance of growing tensions between major solar manufacturers."

Thursday, July 19, 2012
The Asian-American Arms Race In Charts
Zero Hedge

• Comment: "Asia is a study in contrasts. It is home to economic freedom and political liberty; it is also home to political instability and tyranny. Some of Asia’s borders are unsettled and volatile. And military budgets and capabilities are expanding, sometimes faster than economic growth."

Sunday, July 15, 2012
Facing a Slowing Economy, China Turns to American Exports
New York Times

• Comment: "But the result is a swelling American trade deficit with China in an election year. The bilateral deficit widened 10.2 percent in the first five months of this year compared with the gap in the period a year earlier, and preliminary data suggest that it widened further in June. The deficit could swell even more as November approaches. The weakness of the Chinese economy is holding down its demand for American exports, even as Chinese exporters show a laserlike focus on selling to the American market."

Thursday, July 12, 2012
Discomfort in China Over Inspecting the Inspectors
New York Times

• Comment: "As it is, there is widespread suspicion of Chinese firms and Chinese audits among many investors. That suspicion almost certainly has depressed share prices for honest Chinese companies, and made it difficult for some Chinese firms to raise capital. But in recent months China has made it harder, rather than easier, for American investors to check the legitimacy of their Chinese investments."
Tiny island in South China Sea is stirring up tensions
USA Today

• Comment: "China only moved to elevate the status of Sansha to prefecture-level of mainland Hainan province on June 21, handing with it the alleged authority over much of the South China Sea. China experts say the action was significant. "Sansha will help China strengthen its claims over the South China Sea," Wu Shicun, president of the National Institute for South China Sea Studies in Hainan, said recently."

Tuesday, July 10, 2012
China exports yet more excess capacity to crippled West
Telegraph

• Comment: "It implies that China is no longer consuming enough of its own output. It is exporting excess manufacturing and industrial capacity – with an undervalued currency – into a world that is already grappling with a deep secular slump."
Deflation Coming to China? Brace Yourself, America
The American Interest

• Comment: "On top of all this comes today’s news that China may actually be headed for a period of deflation. According to the New York Times, consumer prices dropped 0.6 percent last month, one of the largest such drops in years."
China’s Import Growth Misses Estimates For June
Bloomberg

• Comment: "China has allowed its currency to weaken this year amid slowing growth and Europe’s turmoil. The yuan fell 0.88 percent from April through June, the biggest quarterly decline since a dollar peg ended in 2005. Today it strengthened 0.1 percent to 6.3678 per dollar at 1:22 p.m. local time, according to the China Foreign Exchange Trading System."

Monday, July 09, 2012
China Threatens With Furious Retaliation In Growing Trade Wars
Zero Hedge

• Comment: "Beijing has threatened swift retaliation against a range of European Union industries if Brussels presses ahead with an investigation into government subsidies granted to two Chinese telecoms equipment companies. The Chinese threat was delivered at a meeting with EU trade officials in Beijing late last month that was arranged at the behest of Chen Deming, China’s commerce minister, to try to defuse a brewing trade dispute that is straining commercial relations between the two sides."

Sunday, July 08, 2012
Chinese Premier Urges Action to Spur Economy
New York Times

• Comment: "Mr. Wen largely attributed the slowdown to weak demand from overseas, particularly Europe with its faltering economies. But in separate remarks on Saturday, he reaffirmed a government policy of making real estate prices more affordable by banning real estate speculation."

Saturday, July 07, 2012
Obama, Romney both bashing China
USA Today

• Comment: "While Romney has vowed to brand China a currency manipulator on "day one" of his presidency, Obama this week played up a new complaint against China with the World Trade Organization during his tour of Ohio."
Obama challenges Romney on China trade
Fox News

• Comment: "The ad represents the latest attempt by Obama's team to undercut Romney's argument that his private sector experience makes him more qualified than the president to steer the economy during high unemployment. It cites a recent Washington Post story outlining how several businesses backed by Romney's former firm, Bain Capital, transferred jobs to lower-wage countries such as China and India."
Clinton Makes Effort to Rechannel the Rivalry With China
New York Times

• Comment: “The 2013 question that we hear a lot more of is: Can the United States sustain a higher level of commitment as we go forward in the Asian-Pacific region?” said Kurt M. Campbell, assistant secretary of state for East Asian and Pacific Affairs, at a conference at the Center for Strategic and International Studies in Washington last week. Administration officials acknowledge that more ground in Asia has been ceded to China during the Obama administration, a decline that began as the Bush administration became preoccupied with the wars in Iraq and Afghanistan."

Monday, July 02, 2012
China hires tens of thousands of North Korean guest workers
Seattle Times

• Comment: "Under the new arrangement, each North Korean worker should bring Pyongyang cash remittances of about $2,000 per year. Out of salaries of $200 to $300 per month, workers are likely to keep less than $50. Nevertheless, the jobs are considered a privilege because wages at home are well under $10 per month and food is scarce for many families, experts say. The North Korean government "will make a very meticulous selection process. They will pick mostly people who are very loyal, with relatives in the Workers' Party, so they can be sure they will not run away, and they will be very tightly controlled while in China," said Kim So-yeol, a reporter with NK Daily, a specialty news service in Seoul. Workers also must be married."

Friday, June 29, 2012
China instability rising with fungible rule of law
Politico

• Comment: "In fact, several China experts said the government routinely flouts its own laws. And one of its favorite tactics is killing its opponents while trying to make the death seem like a suicide, accident or natural death, though until recent times, that tactic had been used only against Chinese dissidents, not Americans and other foreigners."

Tuesday, June 26, 2012
Romney would get tough on China: Portman
Reuters

• Comment: "Romney has taken "a sensible approach on trade, which is to be much more aggressive on the export side, but also with a mature trading partner like China, making it clear that we're going to have rules that we all live by," Portman said at the Reuters Washington Summit"

Saturday, June 23, 2012
Death by China
Death by China Movie

• Comment: "From best-selling author and filmmaker, Peter Navarro, comes DEATH BY CHINA, a documentary feature that pointedly confronts the most urgent problem facing America today – its increasingly destructive economic trade relationship with a rapidly rising China. Since China began flooding U.S. markets with illegally subsidized products in 2001, over 50,000 American factories have disappeared, more than 25 million Americans can’t find a decent job, and America now owes more than 3 trillion dollars to the world’s largest totalitarian nation. Through compelling interviews with voices across the political spectrum, DEATH BY CHINA exposes that the U.S.-China relationship is broken and must be fixed if the world is going to be a place of peace and prosperity."

Friday, June 22, 2012
Small U.S. Manufacturers Give Up on 'Made in China'
Business Week

• Comment: "An April poll of 259 U.S. contract manufacturers—which make goods for other companies—showed 40 percent of respondents benefited this year from work previously done abroad. And nearly 80 percent were optimistic about 2012 sales and profits, according to the survey by MFG.com, a website that helps companies find manufacturers. “A decade ago you just went to China. You didn’t even look locally,” says Ted Fogliani, chief executive officer of Outsource Manufacturing, the San Diego company working with LightSaver. “Now people are trying to come back. Everyone knows they’re miserable.”
Chinese Data Said to Mask Slowing
New York Times

• Comment: "The executives and economists roughly estimated that the effect of the inaccurate statistics was to falsely inflate a variety of economic indicators by 1 or 2 percentage points. That may be enough to make very bad economic news look merely bad. The executives and economists requested anonymity for fear of jeopardizing their relationship with the Chinese authorities, on whom they depend for data and business deals."

Thursday, June 21, 2012
Will Toledo, Ohio Be The First Major American City To Be Owned By China?
Economic Collapse Blog

• Comment: "To get an idea of how far things have come, let us take a look back at the 1980s for a moment. Back in 1985, the U.S. trade deficit with China was only 6 million dollars for the entire year. All of this imbalanced trade is absolutely killing us.Today, the United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.So why doesn't China buy more stuff from us?Well, there are a whole lot of reasons. One of the main reasons is that they slap huge tariffs on many American-made goods.For example, according to the New York Times a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs."
Why are the Chinese investing in Toledo?
CNN Money

• Comment: "In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city's Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark."
China Goes Shopping for German Factories
Business Week

• Comment: "So far this year, nine German “Mittelstand” companies, typically family-owned with fewer than 500 employees, have agreed to be acquired by Chinese buyers, bringing the total to 21 since the beginning of 2011."

Wednesday, June 20, 2012
China Vows Tighter Controls Over Rare Earth Mining
New York Times

• Comment: "Chinese officials have previously signaled that their defense in that case will be to use a provision of W.T.O. rules that allows export restrictions for environmental protection and the conservation of scarce natural resources. But they were quick to deny Wednesday that this had been their motive for releasing the white paper."

Tuesday, June 19, 2012
The Inevitability Of US-China Conflict
Zero Hedge

• Comment: "it’s pretty clear that China’s rise, fall and subsequent rise is something that hasn’t happened a lot over the past 2,000 years, and that the United States is on the front lines of having to adjust to it."
China’s Reluctant Young Entrepreneurs
Wall Street Journal

• Comment: "The commercial success of many high-profile Chinese entrepreneurs appears to have done little to encourage young Chinese college graduates to become their own boss. According to a recent report, only 1.6% of Chinese college graduates started businesses last year, essentially flat with the year before."

Monday, June 18, 2012
China-bashing amid job losses binds Obama to Romney
Bloomberg

• Comment: "Two of Mitt Romney’s first three television ads of the general-election campaign boast of how he’d stand up to China as soon as he becomes president. Not to be outdone, President Barack Obama last week capped off a month during which he imposed or proposed duties on Chinese goods by warning their leaders to end unfair practices. The rhetoric on China is escalating as the two candidates appeal to voters hurt by the decline in US manufacturing. They’ll also find that translating tough words into action is harder than buying commercial time. Obama hasn’t carried out many of the tough-on-China policies he promised four years ago. Republicans already are expressing concerns that Romney is locking himself into a too hard-line position."

Sunday, June 17, 2012
China Closes Window on Economic Debate, Protecting Dominance of State
New York Times

• Comment: "Publicly controlled enterprises have become increasingly lucrative, generating wealth and privileges for hundreds of thousands of Communist Party members and their families. And in a clear sign of its position, the government has moved to limit public debate on economic policy, shutting out voices for change. While political reform has always been a taboo topic in China, in economics, from the late 1970s to the early 2000s, almost anything went, with powerful voices backing strong measures that challenged the status quo. But now, despite the rise of social media, fewer prominent voices within China are able to make the case for a systemic overhaul that would prepare the nation for long-term prosperity on sturdier foundations."

Friday, June 15, 2012
China Is No.1 (Or So Many People Believe)
Business Week

• Comment: "European countries are most convinced of the shift, with 62 percent of Germans, 58 percent of British, and 57 percent of both French and Spanish saying China is now the economic leader. Even those in the U.S. were slightly more confident about China’s economic leadership, over their own nation’s economic role: 41 percent of Americans put the Asian giant’s economy on top, while 40 percent say the U.S. economy is leading. “Perceptions about the global economic balance of power have been shifting, with growing numbers naming China, rather than the U.S., as the world’s leading economy,” the report stated."
Putting China’s Economic Power in Perspective
New York Times

• Comment: "Since that post in January, Americans have actually become about as likely to name their own country as the world’s leading economic power as they are to name China (40 percent naming the United States, 41 percent China)."

Wednesday, June 13, 2012
World poll: Chill on Obama policies
Politico

• Comment: "At the same time, China has overtaken the United States in perception of which is the world’s leading economic power: Among 14 countries, 36 percent chose the U.S., and 42 percent chose China."
Insight: When Romney wasn't so tough on China
Reuters

• Comment: "From his early days at private equity firm Bain Capital to his time as Massachusetts governor, Romney welcomed investments from China, and bought and expanded companies that benefited from its low labor costs and controlled currency. As chairman of the 2002 Winter Olympics, he also said Beijing should not be punished for human rights abuses."

Monday, June 11, 2012
Time to Panic: Today's China Looks Scarily Like 2006 America
The Atlantic

• Comment: "In plainish English, a handful of small companies with bad credit ratings get together, issue debt, and then put all of their bond payments into a security. The idea is that pooling the risk reduces risk for investors -- and lets banks get the risk off their balance sheets. It can work out. But the very fact that it's happening should concern you. Also worrying: Local governments are guaranteeing these debts."
Selling Abroad, China Eases Slump at Home
New York Times

• Comment: "Underpinning China’s export success is a combination of long-term investments in automation and short-term depreciation of the currency."
Will China's Exports Drain Growth From Other Countries?
Business Week

• Comment: "China’s trading partners want vigorous domestic growth in China so the country imports more. But that’s not what’s happening. If instead China tries to keep its economy aloft through exports, it is actually subtracting from growth in other countries: Chinese production is displacing production that would be done by domestic workers in the U.S. and in other countries."

Sunday, June 10, 2012
Looking to Get Ahead? China Doesn't Want You
Business Week

• Comment: "A year later, the milk had curdled. The cost of getting a foreign-owned business approved in China turned out to be much higher than he’d expected. He ran into bureaucracy at every step, from obscure customs forms to opaque transport regulations. And after expressing initial enthusiasm, bar and restaurant owners stopped returning his calls. “It fizzled out,” says Phillips, who returned to the U.S. broke. “Any entrepreneur that thinks they’re just going to go to China and start a small business—that’s crazy.”

Friday, June 08, 2012
A Chinese Marshall plan?
Washington Post

• Comment: "as Fed wonk Joe Gagnon pointed out to me later, "The People’s Bank of China is estimated to hold nearly 1 trillion euros already and it could switch them from German bonds to Spanish bonds." It would be like a new Marshall Plan. But rather than working through fiscal policy, it would work through monetary policy. And rather than showing America's willingness to step up and sacrifice to save the world, it would show China's."

Thursday, June 07, 2012
Metal Piles at China Ports Signal Growth Sputter
Wall Street Journal

• Comment: "Iron ore stockpiles at Chinese ports this week reached an all-time high of around 120 million tons, a senior analyst for Beijing’s Umetal.com told China Real Time on Thursday. The high supply level is not a good sign: It suggests steelmakers aren’t in a hurry to produce, pointing to a weak appetite across the industry, which is heavily dependent on China’s all-important real-estate sector."
China Cuts Lending Rate as Its Economic Growth Slows
New York Times

• Comment: "The interest rate cut is the first by the central bank since December 2008, when policy makers in China were deeply worried they might be behind in responding to an economy slipping downhill faster than expected. Many economists say they believe that China’s leaders are behind the curve again this year, after two months of near paralysis on economic policy this spring as the Communist Party wrangled over the fate of one of its own, Bo Xilai."
When the Chinese Cut Rates It's Time to Worry
Business Week

• Comment: "Don’t expect today’s surprise move to be the last interest rate action. Despite recent announcements that Beijing intends to boost the economy by subsidizing consumer purchases of energy-efficient appliances and speeding up approval of infrastructure projects in steel, energy, water treatment, and other areas, most economists predict more moves by China’s central bank later this year."

Tuesday, June 05, 2012
China tells U.S. to stop tweets on Beijing's bad air
USA Today

• Comment: "Only the Chinese government is authorized to monitor and publish air quality information and data from other sources may not be standardized or rigorous, Wu Xiaoqing, a vice environmental minister, told reporters."

Monday, June 04, 2012

Sunday, June 03, 2012
Understanding the China Slowdown
Business Week

• Comment: "A sure sign of Chinese concern about their economy is the flurry of announcements about growth. China must give “more priority to maintaining growth,” Premier Wen Jiabao said on May 20. “Key infrastructure projects” will be sped up, the State Council announced on May 23. “China is making all-out efforts to encourage private investment,” reported the official Xinhua News Agency on May 28."
Panetta sends message to China during historic visit to Vietnam
Fox News

• Comment: "Tensions between the U.S. and China reverberate across the region, and are often focused on America's support of the island of Taiwan, which China considers its own. Another key area of dispute is the South China Sea, which China claims almost entirely as its own. But Taiwan, Vietnam, Malaysia, Singapore, Brunei and the Philippines also have territorial claims there."

Friday, June 01, 2012
Romney Campaign Singles Out China as a Jobs Issue
New York Times

• Comment: “If you look at trade policy as an example, here’s a place where Governor Romney is really calling for a different approach, for example, confronting China on their currency manipulation, on their intellectual property stealing, on the barriers they put up really to competition from foreign firms,” said Mr. Chen, during an interview with “Political Capital With Al Hunt” on Bloomberg Television. “This is really a path forward that will be quite different from both President Obama and President Bush, frankly.”

Thursday, May 31, 2012
China is propping up the world’s economy — but for how long?
Washington Post

• Comment: "Lately, there have been plenty of news reports suggesting that China’s hard-charging economy might be simmering down. Why is that worrisome? Because, as this chart from Menzie Chinn shows, China was expected to make the biggest single contribution to global GDP growth this year"

Tuesday, May 29, 2012
China Drowning in Money: What It Means for the U.S.
Heritage Foundation

• Comment: "Global financial markets are keenly interested in China’s short-term economic direction and policy choices. American policy should look farther. If China chooses to try to stimulate its economy in the second half of the year, even if successful, it will only exacerbate a more pressing long-term challenge."

Monday, May 28, 2012

Saturday, May 26, 2012
45 Signs That China Is Colonizing America
Info Wars

• Comment: "One thing that China has done is loan the U.S. government over a trillion dollars and this has given the Chinese a tremendous amount of leverage over us. China has also started to buy up businesses, real estate and natural resources all over America. This kind of “economic colonization” is similar to what China has already been doing in Africa, South America and Australia. The formula is actually very simple. We send them our money and then they use it to buy us. With each passing day China’s ownership over America grows, and it is frightening to think about where all of this could end"

Thursday, May 24, 2012
Chinese manager accused of exporting U.S. nuclear-fuel parts
USA Today

• Comment: "Qiang Hu, 47, was accused in federal court papers of using his affiliation with Andover-based MKS Instruments to funnel thousands of gas-centrifuge pressure sensors worth millions of dollars beginning in 2007, according to a Justice Department news release."

Tuesday, May 22, 2012
A Mutual Benefit from China’s Private Link to Treasury Auctions
New York Times

• Comment: "Such direct bidding would allow China to obscure potentially valuable information on its appetite for bonds from Wall Street. Foreign central banks customarily buy debt through primary dealers, specially designated major financial institutions, including Barclays and Goldman Sachs, that bid for their