China Policy Institute Blog

Renminbi may follow own script

Written by Niv Horesh. In October, the UK government became the first in the Western world to issue a sovereign bond in China’s currency, the renminbi. The 3 billion yuan bond ($477 million; 416 million euros), which will be used to finance Britain’s reserves, marked a hugely significant moment in China’s efforts to internationalize the …

What lies behind China’s clampdown on foreign casinos?

Written by Alice de Jonge. China’s recent clampdown on foreign casinos has been portrayed as an extension of Xi Jinping’s anti-corruption drive, but it is also more than that. The motives behind Xi’s declaration of war against the global gambling industry can best be understood on four different fronts. The first front is the incursion of …

Shanghai ditches GDP targets: Does it matter?

Written by Michael Reilly. For all but the most zealous economists and statisticians, the announcement by Shanghai’s Municipal Government this week that it is to abolish GDP growth targets was hardly the stuff of headlines. Pretty well everyone knows after all that the Chinese economy is motoring along nicely at around 7% annual growth. Even …

The end of China’s economic miracle? Potential scenarios

Written by Erik Tollefson. As the size of China’s economic growth has gradually slowed, narratives prophesying its downfall have proliferated. Indeed, heated disagreement has emerged about whether slower economic growth “post-miracle” is part and parcel of the development process, a failure to switch economic models, or a harbinger of something more ominous, namely a protracted hard …

One small link for Shanghai and Hong Kong is a big opportunity for the Chinese economy

Written by Shujie Yao. A direct link has been established between Hong Kong and Shanghai’s stock exchanges. The so-called Stock Connect means investors in Hong Kong can now buy shares listed on the Shanghai Stock Exchange via their local brokers and vice versa. This is a milestone moment for China as it further opens the …

China and the new regional order

Written by Mark Beeson. The region’s diplomats and leaders have been earning their money over the last few weeks. Or they have, at least, if their preferred key performance indicators are meetings attended, photos posed for, and hands shaken. Even Xi Jinping and Shinzo Abe managed a tepid clasp, albeit one accompanied by gritted teeth. …

Fashion victims

Written by Chun-Yi Lee. On 19 September 2014, Apple launched the iPhone 6 globally. From the long queue in front of Apple’s flagship store in Covent Garden in London, it is obvious that the iPhone still grabs many people. Meanwhile, Sacom issued a public announcement disclosing the drudge-like working conditions of Chinese workers labouring to …

Foreign Investors and Chinese ‘A’ Shares

Written by Samuel Beatson. Foreign investors were granted access to the tradable ‘A’ shares of Chinese listed companies from the introduction of the QFII scheme in February 2002, with practical instigation on 23 May, 2003, officially introducing foreign institutional investor ownership in the ‘A’ shares of domestically listed Chinese firms. One of the aims of …

A geographical perspective on the ‘China model’

Written by Kean Fan Lim. Along with China’s expanding economic influence are growing debates on the nature and feasibility of the ‘China model’ (中國模式). Similar to debates accompanying the ascendency of the Japanese economy in the 1980s, th

Xi’s Impossible Trinity – Innovation, Anti-Corruption and Political Stability

Written by Lauren Johnston. In economics the impossible trinity describes how governments can set only two of three macroeconomic policy variables, even if they are all independently desirable. Those three variables are fixed exchange rates, independent monetary policy and free movement of capital. Amid calls from former Chinese leaders Hu Jintao and Jiang Zemin that President …