On this episode of the ChinaPower Podcast, we are joined by Nicholas Borst to discuss China’s debt situation and fiscal policy. He explains that China’s debt levels have increased dramatically relative to the size of the Chinese economy and China has more debt as a proportion of GDP compared to the United States. Much of the debt is concentrated in local governments, state-owned enterprises (SOEs), and real estate developers. Mr. Borst describes China’s decentralized fiscal system where the Chinese central government is fiscally conservative and local governments bear more risk and are responsible for healthcare, infrastructure, and social insurance as well as supporting key central initiatives such as the Belt and Road Initiative. Although no Chinese local government has defaulted to date, Chinese SOEs have defaulted, and their defaults have led to shocks to the Chinese market. Looking forward, Mr. Borst argues that the reforms passed at China’s recent “Two Sessions” will do little to address the root issues of China’s fiscal issues.
Keyword:economics
China’s Economic Woes: A Conversation with Scott Kennedy
In this episode of the ChinaPower Podcast, Dr. Scott Kennedy joins us to discuss the state of China’s economy and its current challenges. Dr. Kennedy says that Chinese domestic economic policy, including crackdowns in the technology and education sectors, is dampening prospects for China’s long-term growth. He also explains that China’s Zero-Covid policy and the Russian invasion of Ukraine have adversely shaped business sentiment in China. Lastly, Dr. Kennedy argues that China’s current economic difficulties could make it a more unpredictable and volatile actor on the world’s stage.
The Impact of Covid-19 on China’s Economy: A Conversation with Daniel H. Rosen
In this episode of the ChinaPower Podcast, Mr. Daniel H. Rosen joins us to examine the impact of the Covid-19 pandemic on China’s economic power. Mr. Rosen describes the variables that contribute to China’s economic power and recounts how China’s economy was initially impacted by the Covid-19 pandemic. He also discusses the primary measures the Chinese government took to rejuvenate its economy and evaluates which measures were the most significant. Lastly, Mr. Rosen explains the potential impact of the Chinese Communist Party’s “Common Prosperity” political campaign on China’s economic growth.
The Best of ChinaPower: Unveiling China’s Digital Currency Goals: A Conversation with Kevin Desouza
In this special “best of ChinaPower” episode, Dr. Kevin Desouza joins us to discuss China’s plans to create a national digital currency. Dr. Desouza explains Beijing’s underlying motivations for developing its own Central Bank Digital Currency (CBDC), and how it aligns with China’s broader goal to become a leader in technology and innovation. He highlights the key benefits of using digital currencies and the possible effects on the Chinese economy, as well as discusses the potential impact of COVID-19 on the roll-out of a CBDC in China.
The Impact of China’s Dominant Position in Global Supply Chains: A Conversation with Wang Tao
In this episode, Dr. Wang Tao joins us to discuss the factors behind China’s shifting role in global supply chains. Dr. Wang explains how China came to play such a dominant role in global manufacturing and the potential consequences of reshoring or moving supply chains elsewhere. She also details the results of a recent survey on North Asia CFOs about intentions to move production out of China, particularly analyzing the COVID-19 pandemic’s role in these decisions. Finally, Dr. Wang speaks to the potential impact of the Hong Kong national security law on supply chain decisions.
Unveiling China’s Digital Currency Goals: A Conversation with Kevin Desouza
In this episode, Dr. Kevin Desouza joins us to discuss China’s plans to create a national digital currency. Dr. Desouza explains Beijing’s underlying motivations for developing its own Central Bank Digital Currency (CBDC), and how it aligns with China’s broader goal to become a leader in technology and innovation. He highlights the key benefits of using digital currencies and the possible effects on the Chinese economy, as well as discusses the potential impact of COVID-19 on the roll-out of a CBDC in China.
Friction in China-Czech Relations: A Conversation with Richard Turcsányi
In this episode, Dr. Richard Turcsányi joins us to discuss the ups and downs of China-Czech relations, as well as the attitudes within the Czech Republic toward China. Dr. Turcsányi explains the motivations behind the cancellation of the sister city agreement between Prague and Beijing, critical comments about China by the Czech intelligence agency, and China’s investment activities in the Czech Republic. He also discusses how Czech President Miloš Zeman struggles to balance his relationship with the domestic public and China.
China and the World Trade Organization: A Conversation with Tu Xinquan
In this episode, Dr. Tu Xinquan joins us to discuss China’s relationship with the World Trade Organization (WTO) and the economic impact of its membership since joining in 2001. Dr. Tu evaluates China’s compliance with its WTO obligations, as well as its use of the WTO’s trade dispute mechanism. He also explains China’s recommendations for WTO reform and the role it seeks to play in the organization moving forward.