The steady price increase in China-made goods has come to an end and bargaining power has shifted back to overseas buyers, according to executives at Li & Fung, the world’s largest trade sourcing company. After almost four years of steadily increasing prices for goods made in China a deflationary price trend emerged over the last months. According to analysts, prices fell between 5 and 10 percent in 2008 and are expected to drop further in 2009.
As global commodity prices have tumbled and political instability is on the rise in Africa, Chinese investors have become more hesitant. Until very recently China has filled the vacuum left by Western companies unwilling to invest in unstable or politically denounced countries. China will continue to play an important role in Africa’s investment growth, but new projects in the planning stage might face a tighter scrutiny as the economic factors around commodities have changed significantly.
Peng Sen, deputy director of the National Development and Reform Commission (NDRC), announced China’s plans to loosen the government grip on investment project approval. In an effort to increase enterprise confidence when making investments, China is willing to give companies more power in investment decisions. The measures could include granting private capital wider access to more sectors, and reducing the number of enterprises that need government approval on investment projects.
In its annual report on the Chinese military, the Pentagon urged China to be more transparent about its defense spending and military build-up. The report further criticized a continuing deployment of more missiles across the coast from Taiwan, which the Pentagon fears could be used to apply pressure on Taipei towards a settlement of the dispute between both countries. The release of this year’s report sparked strong criticism in 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 […]
