Category Archives: China

Michael Pettis: China – How Much Investment is Optimal?

If China’s very low level of social capital has long ago made its investment strategy obsolete, that suggests that China has overinvested beyond its capacity to utilize these investments economically. Thus there are hidden losses on bank balance sheets created by the failure to write down physical capital to its true value. In this case Chinese growth cannot help but drop significantly as these losses are finally recognized and as investment levels are sharply curtailed.


Marshall Auerback: Donald Trump Understands the Nexus Between Trade and Immigration

By linking immigration and trade, however crudely, Trump has exposed the broader paradox and inherent contradictions which lurk between the two.


Senators Try to Scuttle Syngenta/ChemChina Merger, in a Harbinger for U.S. Posture Toward Chinese Investment

This is a big week for the future of American industry. Chinese Premier Xi Jinping will meet one-on-one with President Obama on the sidelines of a summit in Washington. The Chinese will apparently use the meeting to make a new offer on a bilateral investment treaty that would pave the way for more foreign direct […]