In The News

China Groups Take Out Insurance Against Blocking of Foreign Deals

Henry Sender January 12, 2017
Insurance policies cover risk, and Chinese companies anticipate more protectionism in the United States and Europe and an increasingly uncertain market for foreign investment. Chinese analysts also expect delays and increased fees associated with regulatory reviews. New policies are designed to protect against blocked takeovers in other nations: “several insurance groups, led by Aon, are...

Are Chinese Enterprises Being Taxed to Death?

Zhang Jun January 10, 2017
Chinese firms establish overseas branches to flee high taxes. One company spokesperson suggested that China’s taxes are 35 percent higher for manufacturers in China than the United States, and Zhang Jun, a professor of economics at Fudan University, analyzes the complaint for Project Syndicate. A strict interpretation suggests that China’s tax burden is 29 percent and 10 percent less than global...

To Confront North Korea, Talk First and Get Tough Later

William J. Perry January 9, 2017
North Korea borders China, South Korea and Russia, respectively the world’s second, eleventh and twelfth largest economies, and the nation is a few hundred miles away from Japan, third largest economy. North Korea’s nuclear program and erratic leadership could trigger war and economic crisis. The nation is signaling that its intercontinental ballistic missile program is a priority, explains...

Factory Farming Blamed for Massive Bird Flu Outbreak: Experts

Kim Da-sol January 6, 2017
A highly pathogenic form of avian flu was detected in South Korea in November, and experts suggest that crowded conditions in industrial poultry farms have accelerated the spread of disease. “While the government has yet to offer clear reason for the worsening situation, casting the blame on migratory birds, experts pointed out that the battery cage-facilities at poultry farms and stockbreeding...

More Chinese Send Children to US Schools

Miriam Jordan January 5, 2017
Many Chinese parents regard US universities as a pinnacle in education, and the number of Chinese sending children to study in US elementary schools is rising. The numbers are still relatively small – 2450 elementary students and just over 46,000 high school students in 2015. Parents interviewed by Miriam Jordan for the article in the Wall Street Journal express appreciation for independent...

China Central Bank Extends Emergency Loans to Financial Firms

Rachel Rosenthal and Yifan Xie December 22, 2016
In mid-December, the People’s Bank of China, China’s central bank, pumped more than US$80 billion into the bond and money market sectors of its financial industry. The bank was responding to a precipitous drop in bond prices “that led authorities to temporarily halt trading,” reports the Wall Street Journal. Chinese investors worry about the US Federal Reserve’s embrace of increased rate...

Takeaways on China's Theft of a US Drone in Philippine Waters in the South China Sea

Ankit Panda December 21, 2016
China returned a US underwater drone taken from the South China Sea. The US Department of Defense reports the buoyancy glider was seized about 90 kilometers northwest of Subic Bay. China claims the removal was for safety reasons, but also opposes US reconnaissance activities in the sea. “The development is effectively unprecedented in U.S.-China military-to-military interactions,” notes Ankit...