Growing (Un)equal: Fiscal Policy and Income Inequality in China and BRIC+

Growing (Un)equal: Fiscal Policy and Income Inequality in China and BRIC+.

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China ‚boosting shoal defence‘, AsiaOne Asia News

China 'boosting shoal defence', AsiaOne Asia News.

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A Step Forward for Beidou, China’s Satellite Navigation System – NYTimes.com

A Step Forward for Beidou, China's Satellite Navigation System – NYTimes.com.

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China: August exports grew 9.2%, trade surplus reaches new high

8月我国出口额同比增长9.2% 贸易顺差再创新高

via GTXH:9月9日钢市早间快报,最新钢材市场行情- 中国钢铁信息库.

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China final HSBC PMI at 48.1 in April

China final HSBC PMI at 48.1 in April.

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IMF Primary Commodity Prices

The impact of slowing emerging market growth is being felt on commodity prices, particularly metals.

IMF Primary Commodity Prices.

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Annual Central Economic Work Conference (CEWC)

 

The CEWC is part of the annual policy cycle, following on the Politburo meeting earlier this month.

 

The CEWC issued a statement emphasizing the need for stability, stability of economic reform and macroeconomic policy.

 

The statement mentions several areas of reform, but does not give much detail. However the need to resolve the overcapacity problem gets more attention than before.

 

6 key tasks a mentioned for 2014:

 

Food security; industrial structure (including overcapacity problem); dept risk prevention; coordinated regional development; to protect and improve the people’s livelihood; continuously improve the openness of economy.

 

An emphasis on stability[1]|chinadaily.com.cn.

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Time for a comprehensive reform

The third plenary session of the 18th CPCcentral committee, November 9 to 12, 2013

During this meeting a blueprint for comprehensive reform should be put forward, with a focus on innovation development strategy.[China reforms eye more innovative bases; Xinhua; 05NOV13]

China needs a shift to a more sustainable growth path. One that uses resources more efficiently, is more inclusive, and more consumer based. To achieve this shift, actions on several fronts are needed:

  • Financial reforms
  • Fiscal reforms
  • Structural measures

[Singh, Anoop; A wish list for China’s third plenum; IMF direct; 22OCT13]

Also the development research center (DRC) if China’s state council recently released a proposed roadmap for the next round of reforms. This ‚383 Scheme‘ refers to „a three-in-one reform principle in eight key reform areas, with three correlated reform combinations,“ which puts an emphasis on a economic structure ruled by the law. [Dezan Shira & Associates; China’s Official Think Tank Releases ‘383 Scheme’ for Future Reforms  China Briefing; 05NOV13]

Major problems with reform of the current system remain. „Transformation of the economic growth is entirely interlocked,“ said Yuan Xucheng, a former official who is now deputy secretary general of the China society of economic reform, a think tank in Beijing. “ You can’t transform one part without transforming all others.“

Obstacles will be hard to overcome. Reforms of the hukou system, land policy, social safety net, fiscal system for local governments as well as reforms of sectors controlled by state-owned companies all face resistance, because urban residents, state owned companies, ministries and local geovernments all fear for loss of their privileges. [Buckley, Chris; Chinese Leader’s economic plan tests goal to fortify party power; New York Times; 06NOV13]

It remains to be seen what the CPC central committe will declare in the next few days and which meassures will actually be carried out.

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A Wish List for China’s Third Plenum | iMFdirect – The IMF Blog

A Wish List for China’s Third Plenum | iMFdirect – The IMF Blog.

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Taller buildings, higher ambitions – is the crisis looming?

Shanghai Tower

Taller buildings, higher ambitions, By John Coulter on chinadaily.com.cn.

China’s Looming Crisis: Daunting Troubles Mount | World Affairs Journal.

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