A 1.6 percent drop in consumer prices in February from a year earlier sparked fears of increasing deflationary problems in China. The price drop in February ends more than six years of price increases, with February 2008 seeing a record consumer price index (CPI) rise of 8.7 percent due to soaring energy and food prices. CPI growth has slowed down over the last ten months, with only 1 percent increase in January. China’s National Bureau of Statistics said in a statement that it was too early to speak of deflation in China and the price drops were mainly caused by holiday distortions and decreasing raw material prices.
China blamed the U.S. for causing the confrontation between a Navy surveillance ship, Impeccable, and five Chinese vessels in the South China Sea. The Navy ship was blocked and surrounded by the Chinese vessels following a week of increasing tensions between U.S. and Chinese ships in the South China Sea. According to the U.S., the Impeccable operated in international waters about 75 miles from the Chinese island of Hainan. China on the other hand claims an economic exclusion zone extending 200 nautical miles (230 miles). Tensions in the South China Sea remain over disputed maritime borders between adjacent states.
Yin Weimin, Minister of Human Resources and Social Security, warned of a “grave” employment situation in China. According to Mr. Yin, migrant workers and college graduates unable to find employment are at the center of the government’s efforts. He expressed confidence that initial measures were already taking effect. The number of new laborers increased to 690,000 and 930,000 in January and February respectively, up from 380,000 in December last year. Compared to China’s total labor force these numbers are moderate, but Mr. Ying sees the positive trend as an important sign of recovery.
Wang Jian, a researcher affiliated with China’s top planning agency, called for a 3 percent appreciation of the yuan in order to stop capital outflows. A stronger yuan would also help China make overseas acquisitions in commodities, oil fields, and other strategic assets. Mr. Wang warned of letting the yuan depreciate to help the export sector, as this would result in large amounts of foreign capital fleeing China.
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 […]
