In The News

West’s Billions in Subsidy Shut Out African Cotton Growers

Martin Hickman November 30, 2010
Large subsidies for domestic cotton production in Western countries hurt African farmers trying to sell cotton and escape poverty. The United States and the European Union have given more than $32 billion over the past decade to support their farmers, with the EU subsidies more per pound than the crop’s market price. China, the world’s largest producer, spent $15.4 billion on subsidies since...

Taking Harder Stance Toward China, Obama Lines Up Allies

Mark Landler, Sewell Chan November 22, 2010
Concerned that China prefers contention over cooperation, the US is organizing alliances with other nations in the region and from afar, reports the New York Times. Intended as a “united front,” the allies will attempt to counter China on a currency kept artificially low, territorial claims in the South China Sea, refusal to ship rare-earth minerals and other trade matters. A lack of trust...

China Can Use More Copper Than World Has Now With Yang’s Stove

Fan Wenxin November 18, 2010
As China industrializes, millions move from the countryside into urban centers. The trend that began along the coast now expands cities in the interior as Chinese exporters continue a search for inexpensive labor. Urbanization and growth spur China’s standard of living with new apartments and the amenities of modern life – TVs, air conditioners, washing machines. This Bloomberg article details...

The G20: Captive in the Prison of Mercantilism

Ernesto Zedillo November 13, 2010
The G20 meeting of the world’s major economies concluded in Seoul without a serious plan for coordinating macroeconomic policies. Since the first G20 meeting in November 2008, global leaders have recognized that inconsistent, poorly coordinated policies spurred the global economic crisis along. But behaving like the mercantilists of old rather than world powers in the 21st century – delivering a...

Only the Weak Survive

Nouriel Roubini November 12, 2010
Export giant China has resisted revaluation of the renminbi. Eager for exports, nations follow China’s lead, increasingly engaging in competitive currency devaluations. These maneuvers exacerbate global imbalances already huge. “A world where over-spending countries need to reduce domestic demand and boost net exports, while over-saving countries are unwilling to reduce their reliance on export-...

G-20 to Push Current Balance Guidelines

Kim Yon-se November 12, 2010
The G-20 meeting in South Korea closed with assurances that leaders of the world's largest economies would set up a warning system on excessive current-account imbalances. The leaders rejected US proposals that would have placed specific caps on surpluses or deficits. The G-20 also agreed to refrain from currency manipulations and to allow the markets to direct currency values; pursue stable...

Iran Sidesteps Trade Sanctions With Help From Chinese Firms

Ramin Mostaghim, Borzou Daraghi November 9, 2010
As Western sanctions try to punish and isolate Iran, China has surged to become its largest trading partner, with $22 billion in trade in 2009, predicted to grow to $50 billion by 2016. China supplies a range of goods, trying to replace Western expertise in infrastructure construction, energy plants, and oil and gas management. Still, some Iranians complain that Chinese firms use their position...