China Policy Institute Blog

One Year of Modi Government

Written by Pravakar Sahoo. High inflation, dwindling growth, low investor confidence, and policy paralysis in the years before the 2014 general election resulted in high expectations from Indian industry, investors and the people at large: everyone looked to the new government, led by Prime Minister Modi, to ease their pain and bring the economy back on …

The AIIB: An insight into China’s regional vision?

Written by Philippa Brant. China has ratcheted up its economic diplomacy efforts in Asia this year. But will its neighbours be convinced of its ‘vision’ for the region? In addition to its well-established bilateral aid and development financing, the past few months have seen China actively promoting a new form of regional economic integration, known …

The tale behind the bean: The modern history of an ancient crop

Written by Ines Prodöhl. Evidence that soy had some significance in the Chinese diet dates back some three thousand years. Besides using soybeans for food, indigenous people in Asia had known a variety of applications for the crop, such as for fertilizer, animal feed, lubricant and lighting. For centuries, however, this knowledge remained in Asia. The …

Chinese agriculture in the wake of the global food crisis

Written by Francesca Bray. In 2007-8 a food crisis rocked the world. A concatenation of climatic, economic and financial factors sent global food prices rocketing. Drought in Australia, then the world’s second largest wheat exporter after the USA, had cut the 2006 wheat harvest from 25 to 10 million tons. Bad weather reduced the 2007 …

Political Uncertainties in Post-miracle China

Written by Ho-fung Hung. The latest economic data from China shows that its GDP grew 7.4 percent in 2014. It was the slowest growth since 1990 (amidst global sanctions post- Tiananmen) and missed its growth target for the first time since 1998 (in the aftermath of the Asian Financial Crisis). It is another indication that the …

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 …