In The News

William Pesek March 21, 2017
The People’s Bank of China, in line with the US Federal Reserve’s March 15th decision, recently increased some interest rates while the Bank of Japan responded by maintaining its negative interest rate target. Divergence in monetary policy “adds a new element of market uncertainty into 2017,” writes William Pesek for Barron’s. The governor of the People’s Bank of China, Zhou Xiaochuan, instituted...
Adam Behsudi March 15, 2017
The global supply chain benefits form elasticity. If one country does not supply a product, then buyers quickly search for substitutes. After the United States stepped back from the Trans-Pacific Partnership, countries like New Zealand, Australia and Canada continue to meet to negotiate a deal and fill the vacuum. “New Zealand seizes the opportunity to send more of its milk and cheese to China,”...
Anthony Fensom March 14, 2017
South Korea’s president was removed from office, and so far the country’s economy and markets are left unfazed. South Korea’s first female president had promised strong economic growth, with a rise in per-capita income, as well as increased tax breaks to encourage investment. Instead, “Exports shrank for two straight years through 2016 and may be further damaged by deteriorating relations with...
Fran Wang and Pan Che March 13, 2017
Political rhetoric blasting global trade from the United States and other countries may slow economic growth in the world’s second largest economy. “China recorded its first trade deficit in three years last month as imports surged on soaring commodity prices while exports declined, likely adding uncertainty to the country’s growth prospects,” reports a team from Caixin. “The surprisingly robust...
Wim Muller March 10, 2017
By joining the World Trade Organization in 2001, China agreed to dispute settlement processes and compulsory adjudication. “While in other areas, most notoriously the law of the sea, China has been reluctant to accept the decision-making power of international courts and tribunals, its WTO practice has shown that China can accept the jurisdiction of an international judicial body, accept its...
Jesse Johnson March 7, 2017
After firing a series of missiles into the Sea of Japan, North Korea claimed to be training for a strike on US military bases in Japan. Japan would be vulnerable to saturation attacks. “Pyongyang demonstrated its growing military capabilities with the apparent simultaneous launch of four ballistic missiles into the Sea of Japan, three of which fell inside Japan’s exclusive economic zone,” reports...
Stephen S. Roach March 4, 2017
Strident rhetoric about competitors and rivals is common in US presidential campaigns, and the Trump administration has appinted a team whose "anti-China credentials are without modern precedent,” explains Stephen Roach, author and Yale faculty member for the Asia-Pacific Journal: Japan Focus. “Its initial pronouncements point to a wide range of economic and political sanctions – from...

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