Newsletter By 2019-09-20
The European Central Bank has restarted monetary easing, which means that the monetary environment of low and negative interest rates will spread further globally. ANBOUND previously warned, even with the global monetary loosening, the effects would be limited in the case of excess liquidity. Recently, many economists and financial practitioners point out that the U.S. economy is also facing the possibility of adopting "negative interest rates", which will bring risks to the financial system. Negative interest rates worldwide were no precedent in history, and this spells new challenges for central banks around the world. The world ought to be prepared in advance for that. Certainly, this situation will have an impact on China.
>>The statistical data published by China’s National Bureau indicate the economic health of the country. The economy in 2019 has shown a clear slowdown in growth, and it may fall further in the future. The latest data in August, the vast majority of China's economic indicators are downward. This means that China's economy is in a downtrend. The pressure of growth slowing is piling up. ANBOUND researchers examined that the challenges in maintaining a 6% economic growth have already obviously displayed themselves in the second half of this year. “Winter is coming”, in an economic sense.
>>With the deterioration in global economic environment, China is persistent in its push for the financial market to open-up. However, the turmoil increases in global financial markets. RMB facing bigger pressures on depreciation to its value. A "one-sided opening-up" is being displayed by China's financial market. Repeatedly stressed by ANBOUND, large volumes of capital outflow and the resulting decline in asset prices, as well as the risks of debt building up are becoming more obvious. when the anti-globalization wave emerges, when China is increasingly becoming a target of the United States, China's should be careful in its efforts of opening-up to the global financial sector, especially in its domains and methods. Some Chinese analysts told high economic and financial risks in China, and how the United States will still be likely to launch a financial war against China. It is precise because of this, China needs to follow the strategies of being "defensive" and "open" to be pay attention to some existing vulnerabilities.
>>Jennifer Huang Bouey, senior policy researcher and Tang Chair in China Policy Studies at RAND, was invited to have a testimony on China and global health to the U.S.-China Economic and Security Review Commission on July 31, 2019. She suggested U.S. policymakers could take actions to address the challenges associated with China's global health activities. As the world's two largest economies, the United States and China face increasingly similar challenges in health: Domestically, both face a rapid increase in health expenditures because of aging societies, an increase in chronic medical conditions, and an increase in substance use disorders. Globally, both face pandemics, climate-change-induced health problems, mass migration, and bioterrorism. Past U.S.-China collaboration in data and technology sharing on pandemic surveillance, public health system building, and biomedical research have benefited both countries and the world. Unfortunately, given the increased tension between the two countries on trade, technology sharing, and security concerns, bilateral collaborations on health—such as data sharing on surveillance and innovative biomedical research—may suffer. As independent think tank, ANBOUND and RAND expect to strengthen research exchanges on the challenges and potential solutions associated with healthcare system reform, global health assistance, and healthcare technology.
>>In the modern times where geopolitical instability is increasing, many countries are responding to this by strengthening their national defenses in order to safeguard their national interests. However, at the same time, there is a need to pay attention to the balance between national defense construction and national economy. Only by balancing the two can a sustainable and healthy development exist for both the nation and its citizens. To take the Soviet Union as an example. The heavy military expenditures greatly exceeded what the Soviet Union was able to manage. Eventually, it snowballed with other factors to form great pressures and caused the collapse of the Soviet Union.
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