March, 2016 China


Project Syndicate, Yu Yongding
BEIJING – Since last November, economists and the media alike have been hailing supply-side structural reform as a groundbreaking solution to China’s economic woes. After all, the logic in China goes, demand-side policies, in the form of Keynesian stimulus measures, are useful only for resolving short-term and aggregate problems. Because China’s problems are long term and structural, the country should be focused on supply-side structural reform, even if it means accepting slower GDP growth. Is this the right approach?

China, Geopolitics, Politics

the guardian
Indonesia has refused Chinese demands that it release eight fishermen arrested for illegal fishing, and accused China on Wednesday of sharply raising tensions in the region by helping take back the crew’s seized boat.


Project Syndicate, Carmen Reinhart
CAMBRIDGE – As Chinese policymakers attempt to address what ails their country’s economy, they are pursuing two goals that will almost certainly turn out to be incompatible. Very seldom have central banks been able to maintain a fixed exchange rate over an extended period of time while providing liquidity to troubled banks and an ailing economy.


Project Syndicate, Abdul Abiad and Shang-Jin Wei
MANILA – There is no doubt that China’s ongoing growth slowdown has had far-reaching effects on the global economy. But its role in the sharp fall in commodity prices that has occurred since 2014 – an outcome that has been devastating for commodity-exporting countries, including once-dynamic emerging economies – is more limited than the conventional wisdom suggests. In fact, China’s slowdown is only a part of the commodity-price story.

China, Economy, Global, Politics


BY MARK J. VALENCIA
SPECIAL TO THE JAPAN TIMES

KANEOHE, HAWAII – The South China Sea contretemps has taken a decided turn for the worse. The United States has upped the ante in its contest of wills with China by deploying an aircraft carrier strike group to the South China Sea. This came on the heels of a warning from U.S. Secretary of Defense Ash Carter of “specific consequences” for China’s continued “aggressive” actions in the Sea.


JAPAN TIMES 

China has embarked on a major reform of its armed forces at a time when it is stepping up its maritime military presence, as exemplified by its recent deployment of surface-to-air missiles and radar on one of the disputed Paracel Islands in the South China Sea. China says that it will maintain its “defensive national defense policy.”

 

Project Syndicate, Kent Harrington
ATLANTA – Even as China’s economy slows and its government backslides on reform, President Xi Jinping is trying hard to portray his country as a global power ready to assume a broader international role. It is proving to be a tough sell.

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BY CHRISTINA Y. LIN
Since the Arab Spring, China has been quietly asserting its influence and fortifying its foothold in the Middle East, while the United States pivots to the Asia Pacific after a decade of war. It is aligning with states that have problematic relations with the West and are also geo-strategically placed on the littoral of the “Four Seas”–the Caspian Sea, Black Sea, Mediterranean Sea, and Arabian Sea/Persian Gulf. Paradoxically, the U.S. eastward pivot is matched by the resurgent Middle Kingdom’s westward pivot across its new Silk Road, and threatens to outflank the citadel of American geo-strategies in the region.