Archive for the ‘Asia’ Category

27
Aug

Why worries about China make sense

Written on August 27, 2015 by Waya Quiviger in Asia, Financial crisis, Global Economy

James Ferguson illustration

I am neither intelligent enough to understand the behaviour of “Mr Market” — the manic-depressive dreamt up by investment guru, Benjamin Graham — nor foolish enough to believe I do. But he has surely been in a depressive phase. Behind this seem to be concerns about China. Is Mr Market right to be anxious? In brief, yes.

One must distinguish between what is worth worrying about and what is not. The decline of the Chinese stock market is in the second category. What is worth worrying about is the scale of the task confronting the Chinese authorities against their apparent inability to deal well with the bursting of a mere stock market bubble.

Stock markets have indeed been correcting, with the Chinese market in the lead. Between its peak in June and Tuesday, the Shanghai index fell by 43 per cent. Yet the Chinese stock market remains 50 per cent higher than in early 2014. The implosion of the second Chinese stock market bubble within a decade still seems unfinished. (See charts).

The Chinese market is not a normal one. Even more than most markets, this is a casino in which each player hopes to find a “greater fool” on whom to offload overpriced chips before it is too late. Such a market is bound to be extremely volatile. But its vagaries should tell one little about the wider Chinese economy.

Nevertheless, events in the Chinese market are of wider significance in two related ways. One is that the Chinese authorities decided to stake substantial resources and even their political authority on their (unsurprisingly unsuccessful) effort to stop the bubble’s collapse. The other is that they must have been driven to do so by concern over the economy. If they are worried enough to bet on such a forlorn hope, the rest of us should worry, too. Read more…

By Martin Wolf; Published on Aug. 25 in the Financial Times

13
Aug

Colonialism, Invasion, and Atomic Bombs: Asia’s Divergent Histories

On September 3 of each year, Chinese people celebrate their victory over Japan in the Pacific War, which ended in the summer of 1945. This year, which marks the 70th anniversary of that victory, the Chinese government has designated September 3—and the days before and after—a national holiday so that “all Chinese can join the celebration.” The government has also extended an invitation to the leaders of other countries, including North and South Korea, to attend their memorial military parade. However, although they too fought against the Japanese colonial power in the same war, Koreans celebrate the nation’s “day of liberation” from Japanese rule on August 15, not September 3.

For Japan, the day to commemorate (and not to celebrate) is August 6, the day that the U.S. atomic bomb was dropped on the city of Hiroshima. A memorial service honoring the victims of atomic bombs, along with a lantern floating ceremony, is held in the Hiroshima Peace Memorial Park to bear wishes for lasting peace and harmony in the world. Meanwhile, the United States officially “remembers” only the day of the attack on Pearl Harbor, holding an annual memorial parade and commemoration on December 7.

The above examples illustrate how differently the countries involved remember and revisit the memories of an unfortunate past marked by war and colonialism in the Asia-Pacific region. For Chinese and Koreans, Japanese acts of aggression, such as the Nanjing massacre, forced labor, and sexual slavery, are the most crucial in their memories of the war. Accordingly, it is only natural for Chinese to celebrate their victory over Japan and for Koreans to celebrate the day on which they regained national sovereignty from the “vicious” Japanese colonial power. Read more…

20
Mar

Written by Meghan O´Farrell, IE Master in International Relations Student, 2014/2015 Intake 

2. Mario Esteban

For IE Professor and China expert Mario Esteban, moving to the other end of the world is eventually what led him right back home. What started as an interest in China and Chinese culture grew into something much bigger and took him places, both literally and figuratively, few Spaniards have been. He has since emerged as one of Spain’s leading China experts with a mastery of the language and unique cultural and political perspective of the rising global powerhouse, granting him the opportunity to introduce Spain, the country he calls home, to China, the country he grew to love.

Mario was raised in Getafe, on the outskirts of Spain’s capital city, in a house only 5 minutes away from where he currently lives with his wife and children, ages 2 and 5. His family was working class- his mother was a housewife and his father was a blue-collar worker in the Airbus factory. 25 years ago, a sizeable Chinese population had yet to take root in Spain. However, he traces his interest in China back to his childhood precisely when China was just a place most Spaniards read about in books. Like so many other children, Mario practiced martial arts and became intrigued by Asian culture. He also befriended a young Chinese boy who sat next to him in primary school, exposing Mario to his first brush with Chinese culture when going to play at his friend’s house.

As a junior in high school, Mario found his way to Middlebury College in Vermont on a French language scholarship. But 10 days alone in New York City made it very clear that, although a strong Chinese presence hadn’t quite yet arrived to Spain, Chinese people were numerous and thriving in other major cities around the world. “I got the feeling that the Chinese were on their way to Spain. This was a huge window of opportunity to merge teaching and research with Chinese culture. First it was an interest, then it became a career move. So as soon as I got back to Madrid, I started learning Mandarin.”

Read more…

11
Nov

The annual APEC summit is underway in Beijing. Perhaps the most notable absentee is India’s Prime Minister Narendra Modi, who received an unprecedented invitation in July from Chinese President Xi Jinping to attend the gathering. Despite growing to become the world’s third largest economy in PPP terms, India is not a member of APEC, and as a result would not normally attend the summit. But this year President Xi used his platform as the summit host to extend invitations to non-members India, Pakistan, and Mongolia. While Pakistan and Mongolia’s leaders made the trip to Beijing for APEC, Prime Minister Modi decided not to do so. It’s a missed opportunity for India’s economic diplomacy at a time it could use a boost. For India, APEC, a grouping of twenty-one member economies across the Asia-Pacific region, has a complicated history on the membership front. Due to a moratorium that ran from 1998 through 2010, the forum did not consider any aspirants for membership during years of strong global economic growth. Following the expiration of the moratorium, APEC discussions on membership appear to be stuck in endless deliberation over regional balance and representation from sub-geographical areas within the forum. The result: in 2014, once again there are no moves to induct new member economies.

Read more…

31
Oct

Japan Moves to Defuse Maritime Dispute with China

Written on October 31, 2014 by Waya Quiviger in Asia, Foreign Policy, Security

Japan de-escalates the Senkaku-Diaoyu dispute

Japanese Prime Minister Shinzo Abe and China’s President Xi Jinping are set to meet for the first time in their respective tenures at the APEC meeting in Beijing in November. However, the privilege of meeting the Chinese head of state comes with a cost for Shinzo Abe. The Japanese PM has conceded to a significant change of attitude in the dispute about the Senkaku/Diaoyu Islands.

While Japan previously denied there being any dispute in the first place, now the wording has changed into an acknowledgement of the fact that “China has a case as well.” Since China has refused talks with Japan until the existence of the conflict in the East China Sea was acknowledged, this has prevented the two nations’ heads from meeting.

The proposal to Xi Jinping from Shinzo Abe, of which the admission that the islands are indeed disputed is one part, contains further points. Japan suggests that it, together with China, settle the issue bilaterally over time, and that no statements or other documents detailing this agreement be officially released.

These additional points are, however, secondary to Japan’s huge concessions to Chinese demands on this matter. Indeed, as Abe stated during a press conference at the UN Summit, “Senkaku is an inherent part of the territory of Japan in light of historical facts and based upon international law, and the islands are under the valid control of Japan.” He noted that Chinese government vessels regrettably continue to invade Japanese waters, and that Japan would not make concessions on territorial sovereignty but would avoid a further escalation. It seems fair to say that Japan just did make concessions. Read more…

Published on Oct. 28 by Mikala Sorenson in http://globalriskinsights.com/

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