Thursday, January 19, 2017
Chan Kung: China's economic trend and what the world is watching
ANBOUND
During the Davos Forum, the focus of world public opinion on China is to seek the continuation of external investment. The focus on the economic situation is mainly: 1. When China closes its market, restricts the flow of foreign capital and cuts off its relations with the world, it would be hard to convince the world that it supports globalization. 2. The West considers the increase in state subsidies and other measures will close China's economy. 3. The increase of the partiality of state-owned enterprises. 4. Informally limit the outward transfer of cash which would affect the operations of transnational corporations. 5. China's bilateral trade volume decreased by 8.0%; its net capital outflows in 2016 may rise compares with the previous year. 6. The acquisitions of overseas assets appear to be mainly driven by the idea of minimizing domestic risk. 7. The economic slowdown causes the risk of systemic financial crisis. 8. China’s ambition in expanding its geopolitical influence. 9. Trump takes a tougher stand on trading with China.