So far, the leading debtor nation in the world is still the United States. At the end of 2016, the US national debt amounted to 19.9 trillion dollars. This sum is more than the entire world's reserves of currency, gold, and silver combined. It is also 25 times the cost of all the oil exported in the world per year. China is America's largest creditor. As of the end of November, China held US Treasury bonds in the amount of 1.15 trillion dollars. © AFP 2018 / Fred DUFOURRouble and Yuan Challenge US Dollar Hegemony - Financial ExpertsHowever, China itself is also gradually becoming an attractive borrowing entity for other countries. In the summer of this year, the yield on 10-year sovereign bonds was at its peak of 3.65 %. And while by December the profitability had slightly decreased to 3.35%, Chinese debt securities still offer more income than US 10-year bonds, which have a yield … [Read more...] about Analyst Explains If China Would Be Able to Pay Its National Debt Obligations
China national debt
Sputnik has discussed China's debt with Dr. Oh Ei Sun, senior adviser for international affairs at the Asian Strategy and Leadership Institute in Kuala Lumpur. Sputnik: What impact does this amount of debt have on the Chinese economy? © REUTERS / Stefano RellandiniItaly Has Sharp Economic Divide Between Innovation, Efficiency – ProfessorDr. Oh Ei Sun: The debt levels as incurred by China, primarily domestically, this is actually not a new piece of news item because over the years, for example, the various local authorities in China, many of them, as well as local businesses they would have accumulated a lot of debt because debt financing is the primary way of the financing their businesses. In the Chinese context very often, over the past, let's say, 10 years or so these high level of debts have been reported; but the Chinese economy instead has been going from strength … [Read more...] about In China New Debts Are Used to Cover Old Debts
Read more transcripts from Face the Nation here. MARGARET BRENNAN, HOST: It's Sunday, June 3. I'm Margaret Brennan, and this is FACE THE NATION. The meeting with Kim Jong-un in Singapore is on, and in less than 10 days, as the president welcomed a North Korean official to the White House. But the goal for the summit continues to be a question. (BEGIN VIDEO CLIP) DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We have very significant sanctions on that. But we had hundreds -- we have hundreds that are ready to go. But I said I'm not going to put -- why would I do that when we're talking so nicely? (END VIDEO CLIP) BRENNAN: But things aren't so nice between U.S. and some of its closest allies. Countries, including Canada, Mexico, China, and members of the European Union, are furious about President Trump's new tariffs. Back home, it's the president's own party taking issue with his trade policies. (BEGIN VIDEO CLIP) SEN. MITCH MCCONNELL (R-KY), MAJORITY LEADER: I … [Read more...] about Full transcript: “Face the Nation” on June 3, 2018
Apparently, inclusion in MSCI Inc.’s equity indexes isn’t enough.China’s not a place that shies away from front-running concepts, with people often buying shares ahead of a major event. So why then, if billions of dollars in foreign money is about to flow into more than 200 newly included Chinese shares, are stocks in Shanghai and Shenzhen doing so badly? The CSI 300 Index is down 5.7 percent this year, lagging South Korea, Hong Kong and Japan.Only one sector – healthcare – is in the green, with consumer-staples companies more or less breaking even. Despite all the talk of unicorns, tech firms are off on average 10.8 percent.What’s happening?The D-word is partly to blame. As I flagged earlier this week, China is on track for record corporate defaults this year.But whereas in the past, missed obligations were in unloved old-economy industries such as steel and infrastructure, now they’re everywhere from … [Read more...] about If MSCI’s So Great, Why Are China Stocks Down?
Observers argue that Beijing had won the Sino-American trade war before it had even begun, referring to the US-China joint statement released by the White House on May 19, 2018. Commenting on the matter, The Washington Post pointed out that while China had agreed to boost purchases, it had not specified the amount. The rumor that Beijing would reduce the deficit, which skyrocketed to $375 billion in 2017, by $200 billion, was immediately refuted by the Chinese. © AFP 2018 / WANG ZHAOChina Better Economic Choice Than US for EUAt the same time, the statement says nothing about the Trump-propelled "intellectual property theft" issue — instead it notes laconically that China would "advance relevant amendments" to its patent laws, the media outlet highlighted, adding that yet another Chinese victory is Washington's decision to suspend the imposition of punitive tariffs on $150 billion worth of Chinese imports. … [Read more...] about To be Continued? China Wins First Round of Tariff War, Trump Not Satisfied