Hu Xiaolian, vice governor of the People’s Bank of China, the country’s central bank, expressed China’s commitment to the U.S. dollar. According to Ms. Hu, China will continue to buy U.S. treasuries as part of its foreign exchange reserves strategy. The Chinese assurance comes amidst increased fear of a weak dollar and rising inflation as the U.S. Federal Reserve decided to revive growth by lowering interest rates and increasing the money supply. Analysts assume that China holds about two-thirds of its nearly $2 trillion in reserves in dollar assets, mainly U.S. government and other bond.
China’s State Council recently unveiled a restructuring plan for the country’s struggling auto industry. The plan calls for consolidation of the four leading automakers into two or three large groups. The consolidation, which is aimed for 2011, could help the automakers to return to double-digit growth after a mere 6.7 percent sales growth in 2008 and weak growth expectations for 2009. The State Council identified four automakers–FAW, Dongfeng Motor Corp., Shanghai Automotive Industry Corp., and Chang’an Auto–as the possible survivors at the end of the restructuring plan.
China continues to hold on to its 8 percent GDP growth target for 2009. The most recent assurance that China is able to achieve this target comes from Vice Premier Li Keqiang. Mr. Li expressed China’s confidence about achieving 8 percent growth during the China Development Forum. He promised to increase the government’s efforts in building a social security system, boosting domestic demand, and assuring employment. Last week, the World Bank and the IMF both lowered their forecast for Chinese economic growth in 2009 to between 6 and 7 percent.
A few months ago, I wrote about the early stages of the conflict in Ukraine through the lens of Sun Tzu’s The Art of War. While it appears likely that the war will carry on into the foreseeable future, enough time has passed for us to make an honest assessment of each side’s relative […]
The Ukrainian Army has made dramatic strides in the last few weeks. Ukraine’s tactical commanders have outfoxed their Russian counterparts, and by issuing a feint towards the south the UA has been able to earn substantial gains in the north of their country. The impact of these efforts have been compounded by the steady stream […]
In mid-May the Irish political party, Sinn Féin, won the plurality of seats in the Northern Ireland Assembly. Many American readers might not fully understand the significance of Sinn Féin’s political victory- but rest assured that subjects of the United Kingdom and a wide range of political movements the world over have heard the message […]
The first wave of the Russian offensive in Ukraine has fallen short of Russian autocrat Vladmir Putin’s ambitions. Most analysts deduced that Putin had hoped to achieve a decapitation strike of the Ukrainian government- taking Kiev and replacing Ukrainian President Vladimir Zolinski with a pro-Kremlin voice. Kiev has been threatened repeatedly through the course of […]
On the weekend of March 26th, the notorious MS-13 gang went on a massive killing spree in El Salvador which left more than 70 people dead by Sunday. Even for a country where powerful gangs hold massive sway, this recent tragedy stands out considering that it was the bloodiest day on record since the civil […]
