Author: Gabriel Wildau
- Evidence of large-scale supply chain migration away from China remains scarce.
- Covid-19 appears to have slowed or even reversed the decline of China’s global export market share low-margin consumer goods, while consolidating market-share gains in capital goods.
- New economic strategy reflects the Chinese leadership’s recognition that they can no longer rely on unfettered access to foreign export markets and key foreign inputs.
- China is not abandoning globalization, but Beijing is seeking a hedged integration that preserves the benefits of globalization where possible, while also shoring up the vulnerabilities that interdependence creates.
- The Communist Party’s new “rectification” campaign is the latest incarnation of President Xi Jinping’s signature anti-corruption initiative and is focused on police corruption.
- Like earlier anti-corruption purges, the rectification campaign appears to combine a genuine effort to combat abuses of power with elements of a political and ideological purge.
Top Communist Party leaders convened their quarterly Politburo meeting on 30 July, signaling a policy shift towards monetary tightening and containment of financial risks, after strong second quarter GDP data instilled confidence in the country’s growth trajectory.… Read the rest
China’s industrial heartland is suffering from some of the region’s worst flooding since 1998, causing disruptions to supply chains, while threatening a short-term hit to GDP growth and a spike in food prices.… Read the rest
- New Chinese export-control rules require a license for exporting content-recommendation algorithms, giving Beijing the authority to block a pending sale of TikTok.
- But Beijing’s intentions are unclear; it is possible that Chinese authorities still intend to let the sale proceed, once they have made a gesture of asserting their sovereignty.
- The Trump administration announced narrowly-targeted restrictions on US imports from Xinjiang, with broader measures likely in the coming weeks.
- The controversy surrounding the Disney film Mulan has drawn public attention to alleged human rights abuses in the territory.
- The People’s Bank of China appears to be quietly intervening through proxy banks to resist upward pressure on the renminbi amid broad US dollar weakness.
- The scale of central bank intervention appears modest; rather than actively weakening the RMB, the PBoC is “leaning against the wind” to restrain excessive appreciation.
Chinese Foreign Minister Wang Yi announced on 8 September that China will develop a new “Global Data Security Initiative” (GDSI) to promote multilateral rules on cybersecurity, internet governance, and data governance.… Read the rest