Thursday, May 28, 2009

China Thinks Beyond the Dollar

On May 28, 2009, Dr. Wenran Jiang was quoted in the BusinessWeek on China's concerns over the weakness of US dollar and its potentially negative impact on China's vast foreign currency reserves, 70% of which are estimated to be in dollar assets.

Dr. Jiang points out that well-informed Chinese now realize Beijing's strategy of keeping the yuan artificially low vs. the dollar to stoke exports—and then recycling export earnings back into the U.S. Treasury market—has backfired. Chinese blogs rant about "irresponsible investment policies of the Chinese government, which also happen to be subsidizing the U.S. economy.

You can read the article here.

Central banker Zhou wants a new global currency to supplant the greenback
Illustration by Sean McCabe; Photograph of Zhou by Zhang Peng/Imaginechina/ZUMA Press

Tuesday, May 26, 2009

North Korea Issues Heated Warning to South

On May 26, 2009, Dr. Wenran Jiang was interviewed by the Washington Post on North Korea's recent long-range missile test.

In China, where condemnation of the North's nuclear test was surprisingly swift and unambiguous, the state media on May 26th printed strong reprimands of North Korea from other countries.

The shower of criticism was far different from the reaction to North Korea's first nuclear test in 2006, when the Chinese media blamed the United States for provoking Pyongyang by cutting off aid.

Dr. Jiang believes that this may be a reflection of Beijing's frustrations for not being able to assert control and influence over North Korea.

You can read the article here.