In The News

In China’s Alleyways, Underground Banks Move Money

Chuin-Wei Yap October 30, 2015
China’s government restricts movement of funds out of the country, but a network of middlemen charge fees for underground currency exchanges and remittance transfers. “Facing a turbulent stock market and a weakening economy, many Chinese are trying to move money offshore,” reports Chuin-Wei Yap for the Wall Street Journal. “No official data track the underground transfers, but central-bank...

Time to Dump the Fear

Nayan Chanda September 25, 2015
Governments and business owners should contain alarm over devaluation of the Chinese renminbi and low-cost goods. “Such is the fear of China’s export juggernaut that the news of the yuan’s devaluation brings about a kneejerk reaction, not only in India but all over the world,” writes Nayan Chanda, YaleGlobal’s founding editor and now consulting editor, in his column for Businessworld. “But not...

China Stock Turbulence Will Boost Our Real Estate: Australia's Treasurer

David Uren September 10, 2015
The newspaper headline is repeated in New York, Sydney, Vancouver, Seattle and London – turbulent Chinese markets could boost real estate prices in foreign markets. China investors buy homes in major cities and also take advantage of immigration programs, including the EB-5 program in the United States which provides green cards to foreigners who invest in job-creating businesses, including real...

Seeking Safety Abroad: Hidden Story in China’s FDI Statistics

Farok J. Contractor September 10, 2015
Despite a recent slowdown, China’s economy is still growing. Its citizens are much wealthier than they were just a few decades ago and like investors around the world, they seek secure places to store assets. “However, the fact is that enormous amounts of liquid money held by Chinese individuals and companies have, for many years, been anxiously trying to leave China and leave the renminbi as an...

Globalization at Warp Speed

Robert J. Samuelson September 7, 2015
Globalization thrives in financial markets and may even control them. Much focus is on the world’s fastest-growing economies. For example, China’s consumes near half of the world’s aluminum, copper, lead, nickel and zinc, up from 13 percent in 2000, writes economist Robert J. Samuelson for the Washington Post. Reduced demand for oil due to slowed growth in China and an increased US supply has...

China’s Latest Currency Actions Are Market Driven

Nicholas R. Lardy August 13, 2015
China’s move to devalue its currency is “a potentially major step toward a more market-determined exchange rate,” argues Nicholas Lardy for China Economic Watch. The move unleashed a sell-off of global stocks, but is more likely tied to China’s efforts to promote the renminbi as a world reserve currency to the International Monetary Fund and less motivated by currency manipulation intended to...

Devalued Yuan Seeks Reserve Currency Status

Will Hickey August 13, 2015
China is pushing for the renminbi to join the ranks of reserve currencies as designated by the International Monetary Fund. The IMF may delay such designation and gave a nod to China’s abrupt devaluation of the yuan, letting the unit respond to market forces. Reserve status for the yuan would be symbolic, a gesture acknowledging China’s weight in the global economy, argues Will Hickey. The United...