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The Price Of Fighting Corruption In China

Ever since President Xi Jinping announced his anti-corruption drive in 2013, there has been a steady flow of anecdotal evidence suggesting that fighting corruption in China is having a very real economic impact on the country. Everyone in China was somewhat amused to hear earlier this year that luxury hotels were actively trying to downgrade [...]

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Apple: Another Lesson on What Not to Do in China

Sometimes, too much success in China can create its own set of challenges. Ironically, the very success that Apple Inc. (NasdaqGS: AAPL) has had selling its products to Chinese consumers may be at least part of the reason why the Cupertino, California company found itself at odds with the powers that be in China in [...]

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Canada Greenlights CNOOC’s Purchase of Nexen

Last Friday, the Canadian government approved China’s biggest overseas energy acquisition, a $15.1 billion takeover of Nexen Inc. (NYSE: “NXY”) by CNOOC Ltd. (NYSE: “CEO”). State-owned CNOOC is China’s largest offshore driller, while Nexen is a Calgary based independent energy company that operates in Canada, the United Kingdom, and the United States, and offshore West [...]

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A123: Another Test For China’s U.S. Expansion Plans

The pending auction of the battery business of A123 Systems, Inc. (OTC Markets: “AONEQ”) will present yet another test for the U.S. expansion plans of Chinese companies interested in becoming global players. On October 16, A123, a Massachusetts-based company that designs, develops, manufactures, and sells rechargeable lithium-ion batteries and energy storage systems, filed for bankruptcy [...]

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Major Trends in China: The Next 10 Years

As Xi Jinping and Li Keqiang take the reins of power from Hu Jintao and Wen Jiabao, they face many challenges, some so staggering that one wonders how they can ever be addressed. The major themes and trends that will influence the course of China’s economic development over the next ten years will be defined [...]

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Opportunities In China: The Next 10 Years

In his keynote speech at the opening of the 18th National Congress of China’s Communist Party, Hu Jintao, the outgoing President of China, set a new target for economic growth, saying that China should double its 2010 GDP and per capita income by 2020. “On the basis of making China’s development much more balanced, coordinated and [...]

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China Busy Signing Currency Deals

China Busy Signing Currency Deals

China took one more step last week towards internationalizing the yuan, ultimately leading to the day when the Chinese currency will be a substitute for the U.S. dollar in all of China’s trade with other countries. Last Friday, China and Brazil agreed on a currency swap deal that will allow the central banks of each [...]

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Behind China’s Rare Earth Controversy

Behind China’s Rare Earth Controversy

On Wednesday in Beijing, the Information Office of the State Council, China’s cabinet, published the country’s first white paper, on China’s rare earth industry. Some of the information in the report caused a stir in the U.S. equity markets. Shares of Molycorp, Inc. (NYSE: MCP), owner of the Mountain Pass rare earth mine in California, [...]

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China’s Economy Is Slowing, But…

China’s Economy Is Slowing, But…

With a dismal May jobs report in the United States, analysts are looking at the fiscal turmoil in Europe and a slowdown in China and seeing little signs of hope. There is little question that growth in China is slowing. The Chinese economy grew at 10.4 percent in 2010; 9.2 percent in 2011; and consensus [...]

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China Finds An Ally In Brazil

China Finds An Ally In Brazil

Make no mistake, a trade war between the United States and China is brewing. In the cases of steel wheels and solar panels, the United States is saying that China exports too much. In the case of rare earth metals, the United States says that China exports too little. Last week, the U.S. Commerce Department [...]

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