Föhrenbergkreis Finanzwirtschaft

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Posts Tagged ‘china’

Who will benefit most from the data economy?

Posted by hkarner - 23. Februar 2020

Date: 20‑02‑2020

Source: The Economist

It is already unequal and that inequality could get worse

The data economy is a work in progress. Its economics still have to be worked out; its infrastructure and its businesses need to be fully built; geopolitical arrangements must be found. But there is one final major tension: between the wealth the data economy will create and how it will be distributed. The data economy—or the “second economy”, as Brian Arthur of the Santa Fe Institute terms it—will make the world a more productive place no matter what, he predicts. But who gets what and how is less clear. “We will move from an economy where the main challenge is to produce more and more efficiently,” says Mr Arthur, “to one where distribution of the wealth produced becomes the biggest issue.”

The data economy as it exists today is already very unequal. It is dominated by a few big platforms. In the most recent quarter, Amazon, Apple, Alphabet, Microsoft and Facebook made a combined profit of $55bn, more than the next five most valuable American tech firms over the past 12 months. This corporate inequality is largely the result of network effects—economic forces that mean size begets size. A firm that can collect a lot of data, for instance, can make better use of artificial intelligence and attract more users, who in turn supply more data. Such firms can also recruit the best data scientists and have the cash to buy the best ai startups. Den Rest des Beitrags lesen »

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Xi’s Party‑State at 70: Feeling the Itch

Posted by hkarner - 21. Februar 2020

Date: 20‑02‑2020

Source: YaleGlobal by Börje Ljunggren

The coronavirus and economic challenges notwithstanding, China’s leaders are ambitious, determined to be second to none. For now, the Chinese Communist Party is intent to avoid the fate of the Soviet Union, which rose in December 1922 and fell in December 1991. Modern China, impoverished in 1949, has transformed itself into a superpower, explains Börje Ljunggren, author and former Swedish ambassador to China and Vietnam. China advanced by embracing globalization and borrowing economic tools of the West while rejecting the goals of Western‑style democracy. The party remains in firm control. “With close to 90 million members and more than 4 million basic units, the party is ubiquitous, in media and civil society, at companies and universities and, not least, in the armed forces,” Ljunggren writes. “The elitist nature of the Communist Party is maintained through a complex system based on selection, loyalty and discipline.” The party’s resistance to criticism, even questions and suggestions with leadership evading accountability, remains a major obstacle for China securing global leadership. –

Authoritarian resistance to criticism and full accountability of leadership may limit China’s global ambitions Den Rest des Beitrags lesen »

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China’s Digital Revolution in Bank Lending

Posted by hkarner - 14. Februar 2020

Huang Yiping

Huang Yiping, a former member of the Monetary Policy Committee of the People’s Bank of China, is Professor of Economics and Finance at the National School of Development and Director of the Institute of Digital Finance, Peking University, and a member of the International Monetary Fund’s External Advisory Group on Surveillance.

China has long recognized the importance of increasing small and medium-size enterprises‘ access to finance; now, online banks have found the solution the country needs. This could be a boon not only for growth and innovation, but also for broader financial inclusion – in China and beyond.

BEIJING – China’s economy is growing at is lowest rate in over 30 years, but if the country’s nearly 40 million small and medium-size enterprises (SMEs) could overcome a lack of access to funding, they could become a powerful engine of economic dynamism. Can digital innovators close the SME financing gap?

China’s government has certainly tried. Since 2005, policymakers have been working to expand access to financial services for SMEs, as well as for low-income households. Measures have included the establishment of more than 8,000 micro-credit companies, higher annual SME loan requirements for banks, and a mandatory reduction in the average interest rate on loans to SMEs, by one percentage point per year in 2018 and 2019. Den Rest des Beitrags lesen »

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Europe Must Recognize China for What It Is

Posted by hkarner - 13. Februar 2020

Date: 11‑02‑2020

Source: Project Syndicate by George Soros

George Soros is Chairman of Soros Fund Management and the Open Society Foundations. A pioneer of the hedge‑fund industry, he is the author of many books, including The Alchemy of Finance, The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What it Means, and The Tragedy of the European Union: Disintegration or Revival? His most recent book is In Defense of Open Society (Public Affairs, 2019). 

Chinese President Xi Jinping will meet the heads of state and government of the 27 EU member states at the EU‑China summit in Leipzig in September. Europeans need to understand that they will hand him a much‑needed political victory unless he is held accountable for his failure to uphold human rights, particularly in Tibet, Xinjiang, and Hong Kong.

MUNICH – Neither the European public nor European political and business leaders fully understand the threat presented by Xi Jinping’s China. Although Xi is a dictator who is using cutting‑edge technology in an effort to impose total control on Chinese society, Europeans regard China primarily as an important business partner. They fail to appreciate that since Xi became president and General Secretary of the Communist Party of China (CPC), he has established a regime whose guiding principles are diametrically opposed to the values on which the European Union was founded.

The rush to embrace Xi is greater in Britain, which is in the process of separating itself from the EU, than in the EU itself. Prime Minister Boris Johnson wants to distance the United Kingdom from the EU as much as possible and to build a free‑market economy that is unconstrained by EU regulations. He is unlikely to succeed, because the EU is prepared to take countermeasures against the type of deregulation that Johnson’s government seems to have in mind. But in the meantime, Britain is eyeing China as a potential partner, in the hope of reestablishing the partnership that former Chancellor of the Exchequer George Osborne was building between 2010 and 2016. Den Rest des Beitrags lesen »

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China’s Businesses Struggle to Resume Work

Posted by hkarner - 12. Februar 2020

Date: 11‑02‑2020

Source: The Wall Street Journal

Operations are slow to restart, with many workers unable to reach factories or offices and supply chains disrupted

Machines were disinfected Sunday before workers were to return to work Monday at a factory in Lianyungang, in China’s eastern Jiangsu province.

Business was slow to restart in China, even after some local governments stopped calling for people to stay away from the workplace during a coronavirus outbreak that has killed more than 1,000 people in the country and dented economic growth.

Workers remained stranded on Monday, unable to reach their factories. Office towers stayed dark as companies asked employees to work from home. In the few open stores in deserted malls, bored clerks played smartphone games. Den Rest des Beitrags lesen »

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The digital side of the Belt and Road Initiative is growing

Posted by hkarner - 9. Februar 2020

Date: 06‑02‑2020

Source: The Economist

Many believe it is where much of the rivalry over the plan will play out in future

One tropical evening in November, the 9,800‑tonne Ile de Bréhat slipped from the quay at Honiara, capital of the Solomon Islands, and steamed out of Iron Bottom Sound. For weeks the boat had been a familiar sight as it finished its job of laying 4,700km of fibre‑optic cable from Sydney to Honiara on Guadalcanal and 730km among the main outlying islands, with another branch heading to Port Moresby, capital of neighbouring Papua New Guinea. Less than a fifth of Solomon Islanders have access to the internet. The Ile de Bréhat is about to transform more lives than any ship since the Los Reyes, the first European vessel to discover the islands, in 1567.

Two‑thirds of the $93m cost of the Coral Sea Cable System was borne by the Australian government. It got wind that China was proposing to do the job, led by Huawei, China’s telecoms giant. Australian intelligence types view Huawei as a national‑security concern. Australia is also the biggest donor to Pacific Island nations and is used to being top dog in its backyard. It told leaders in Honiara and Port Moresby that Huawei was not to be considered.

Yet Australia has taken its eye off the Pacific in recent years, as China has stolen a march. Two‑way trade with the Pacific has grown tenfold, from under $1bn in 2005 to over $8bn in 2018. Chinese tourists to the region jumped from under 4,000 a year a decade ago to more than 140,000 in 2017. China’s leaders extol the potential for bri co‑operation with Pacific nations. A “new Pacific diplomacy” has gathered pace since President Xi Jinping made his first trip to the region in late 2014. Pacific Island leaders frequently head for China. Den Rest des Beitrags lesen »

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Everyone Loses on Huawei

Posted by hkarner - 30. Januar 2020

Date: 29‑01‑2020

Source: The Wall Street Journal By The Editorial Board

Britain OK’s Chinese network equipment, but not too much of it.

The U.K. government on Tuesday unveiled a long‑awaited new policy on Huawei equipment in its telecom network, and it’s hard to find anyone who comes out a winner. Prime Minister Boris Johnson has landed a punch of sorts on the Chinese company, but also managed to give his own administration a black eye.

The cabinet’s ruling, undergirded by a report from Britain’s National Cyber Security Center, deems Huawei equipment a threat to national security, but then still allows some of that kit in Britain’s telecoms networks. British companies will be barred from using the Chinese gear in core parts of their fiber‑broadband or 5G cellular networks, such as routers and software that control the flow of traffic across the network. Huawei components will be allowed in non‑core functions such as antennae, subject to geographical restrictions around sensitive sites and also a cap of 35% on Chinese equipment in the network. Den Rest des Beitrags lesen »

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The Great U.S.‑China Tech Divide

Posted by hkarner - 22. Januar 2020

Date: 21‑01‑2020

Source: The Wall Street Journal

The two countries are headed toward a world where they will have mutually exclusive systems for all important forms of technology

U.S.‑China tech tension centered initially on Huawei and the telecom sector, but has since spread through most of the tech industry. 

In terms of technology, the world had been unifying for years. Now it is reverting back to the likes of the VHS‑versus‑Betamax era, with much bigger consequences.

 Imagine two countries with completely different sets of hardware and software for the internet, electronic devices, telecommunications, and even social media and dating apps.

 That is the direction the U.S. and China are headed in—a world where the two global powers have mutually exclusive technology systems. Den Rest des Beitrags lesen »

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Trump’s Backward March on Trade

Posted by hkarner - 21. Januar 2020

Anne O. Krueger, a former World Bank chief economist and former first deputy managing director of the International Monetary Fund, is Senior Research Professor of International Economics at the School of Advanced International Studies, Johns Hopkins University, and Senior Fellow at the Center for International Development, Stanford University.

After three years of the Trump administration, the economic costs of „America First“ are continuing to mount, with global trade and GDP growth slowing and investment in decline. Ironically, the biggest loser has been America.

WASHINGTON, DC – Following America’s disastrous 1930 Smoot-Hawley Tariff Act, the subsequent international trade war, and eventually World War II, the United States went on to lead the world toward a more open multilateral trading system. In 1947, the international community adopted the General Agreement on Tariffs and Trade, which would later become the World Trade Organization. Under this international body, trade was bound to the rule of law and the principle of non-discrimination among trading partners.

The system has been a huge success. Over the past seven decades, world trade has grown almost twice as fast as real output. And owing to US leadership, there have been ongoing multilateral negotiations to lower tariffs, remove other barriers (such as quantitative import restrictions), and facilitate trade expansion.But in 2017, US President Donald Trump’s new administration abandoned America’s longstanding commitment to the open multilateral trading system, opting instead for a power-based approach to international economic relations. Den Rest des Beitrags lesen »

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China Survived the Trade War in Good Shape

Posted by hkarner - 20. Januar 2020

Date: 19‑01‑2020

Source: The Wall Street Journal

China’s economy is starting 2020 on a much stronger footing than a year ago, but faces risks from a slowing housing market

A lantern workshop gears up ahead of Lunar New Year celebrations in China, where the economy is off to a good start in 2020.

What a difference a year makes. As 2019 dawned, the Chinese economy, battered

by a credit crunch at home and trade tensions abroad, looked its shakiest since late 2015. A year later, China has fought the U.S. to a draw on the trade war, exporters’ profits are rebounding, and the labor market is stabilizing.

If 2019 proved anything, it is that U.S. pressure alone—without the help of allies—can’t completely derail China’s economy. China’s export sector was already recovering before Wednesday’s trade truce, thanks to an uptick in the global electronics industry. The real impediments to growth lie within: in a rickety financial sector and statist leadership which remains wary of market‑oriented reforms. Den Rest des Beitrags lesen »

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