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China Economic Watch

This blog monitors ongoing developments in China's economy, analyzes the impact of policy changes, and informs readers about new PIIE research on China.

Recent Posts

Chart of the Week: China Maintains Commitment to Reduce Financial Risks

by | November 18th, 2014 | 03:54 pm

Last week, the Peoples Bank of China released total social financing data showing credit growth continued to slow in October. Credit growth in the first ten months of the year was down 8.9 percent compared with the same period last year. Even better the proportion of off-balance sheet credit issued by banks or non-bank financial […]

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US-China Climate Deal: Walking on Water?

by Sean Miner | November 14th, 2014 | 07:38 pm

One of the biggest headlines to come out of the APEC meetings in Beijing was the accord between China and the US on limits of CO2 emissions.  The U.S. agreed to cut emissions by 26 to 28 percent from its 2005 levels, while China said its CO2 emissions would peak around the year 2030 and […]

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China’s Evolving Ties with Central Europe

by | November 12th, 2014 | 11:31 am

When Miloš Zeman, president of the Czech Republic, visited China in late October, he said he hoped that a “full cancelation” of any visa requirements for Chinese citizens would be achieved in his lifetime (he is 70 years old). Zeman also invited Xi Jinping to visit Prague, and expressed his respect for China, saying it […]

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China Chart of the Week: China’s Impact on Vietnam’s Coal Industry

by | November 10th, 2014 | 09:43 am

China’s recent moves to shift away from coal consumption, through decisions to reinstate MFN tariff levels on coal imports and ban low-grade coal imports entirely, will likely add to the strain on coal producers, who are already hurt by declining worldwide commodity prices.  In particular, the Vietnamese coal industry, which was China’s top source of […]

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China Chart of the Week: China’s PMI for SMEs

by | November 3rd, 2014 | 04:04 pm

China’s official manufacturing PMI (purchasing managers’ index, an indicator of the economic health of the sector) for October came out over the weekend with a reading of 50.8 (above 50 means expansion).  For the past 2 years, the official PMI has been quite steady, hovering between 50 and 51.5.  The PMI for non-manufacturing (including services […]

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Why China No Longer Wants Cheap Coal

by | October 21st, 2014 | 05:20 pm

In recent months China has enacted a number of policies with the potential to increase coal prices at home and abroad. The government called on provinces to shift away from a sales tax on the volume of coal to one on the value of coal sales. Regulators banned the use of low-grade coal. And last […]

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Is China Unwinding its Foreign Exchange Reserves? Not Just Yet

by | October 20th, 2014 | 12:22 pm

Last week, the PBoC released data on its third quarter foreign exchange reserve accumulation. The headline data showed a decline of $105 billion, the first decline in headline reserves since the second quarter of 2012. This has led many to question whether China is experiencing a large capital outflow, or whether China is starting to […]

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China Chart of the Week: Fishing in the South China Sea

by | October 17th, 2014 | 03:06 pm

While the most recent clashes between China and its Southeast Asian neighbors in the South China Sea have been over oil rigs and alleged construction of artificial islands among the Spratley island chain, an additional aspect of this ongoing territorial dispute has been fishing rights.  Already considered overfished by the UN Food and Agriculture Organization […]

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Is China’s Rebalancing for “Real”?

by | October 14th, 2014 | 04:34 pm

For the past three years the rapid growth of China’s service sector has been one of the most positive indicators that internal rebalancing – while slow – is moving in a positive direction. In nominal terms the tertiary industry (i.e. services) exceeded secondary industry (i.e. industry and construction) for the first time last year reaching […]

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China Chart of the Week: Headwinds to Further Residential Investment

by | October 10th, 2014 | 05:17 pm

Earlier this week the Governor of the Australian central bank, Glenn Stevens, remarked in the opening of his monetary policy statement that the slowing property market in China would present a “near-term challenge”. This sentiment is being shared across many economies dependent on China’s heretofore healthy appetite for commodity imports. Embedded in that statement was […]

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