March 15 2016 image description
by: jmhumire 0 Comments

Feeling the China Effect Globally

One indicator of China’s ascent as a global power is its ability to have an economic impact far beyond its border. In today’s world, events in China, both positive and negative, are affecting nearly every continent.

During the period of China’s spectacular growth, world markets were particularly transfixed on Chinese trade, investment, and loans. China continues to contribute about 30 percent to global economic growth, down from a 50 percent contribution between 2009 and 2011. Its demand unleashed a commodities boom that benefited nations in Africa and Latin America. Growth at 10 percent and massive trade surpluses helped to ease the worst effects of the global recession of 2008-2009, with the United States and Europe borrowing Chinese cash to pay for their stimulus programs.

China’s economic slowdown, or more accurately, its shift from export and investment-driven development to consumption, has had an equally dramatic effect around the globe.  The world is starting to feel this shift as countries that became overly dependent on the Chinese demand for commodities are feeling the pain.

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November 10 2015 image description
by: jmhumire 0 Comments

Venezuela’s Leaders and the Chinese Trough

China’s President Xi Jinping has made a major commitment to eradicating corruption in the country’s government and state-owned enterprises.  Those who analyze Mr. Xi’s policies argue that he sees corruption as a veritable cancer that can weaken and ultimately undermine the political hegemony of China’s Communist Party. As a result, Mr. Xi has been willing to take on senior officials enriching themselves through public positions and other means.

Corruption, however, while a persistent illness with a debilitating and self-generating momentum, is not exclusive to China. If truth be told, China’s largesse abroad is also a major source of corruption and fraud, especially when it involves government-to-government transactions where transparency and accountability are absent.

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