Welcome to the 226th edition of Trade War.
Beijing must focus on fighting deflation as economy weakens, argues former PBOC chief. As China tries to tamp down debt risks, local governments are holding back on bonds issuance, a further blow to the faltering economy.
New York political aide charged with engaging in unlawful political activities in the “interests of the CCP.” Employees of drug company AstraZeneca are detained by Chinese police. And Georgia Tech ends research and educational cooperation in China, following congressional scrutiny of its ties to entities associated with military.
China experiences hottest summer on record. And world’s largest indoor ski resort opens in Shanghai.
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Hawks who attack US policy on China overstate “Washington’s agency and discount Beijing’s,” writes International Crisis Group’s Ali Wyne
Chinese flock to Mexico for new life, with immigrants from China third largest in number, behind those from U.S. and Colombia
Fight deflation, says former PBOC chief
In surprisingly direct comments, China’s former central bank chief has called on Beijing to focus on fighting deflation, as the economy continues to weaken.
Speaking at the Bund Summit in Shanghai on Friday, former People’s Bank of China (PBOC) Governor Yi Gang said Beijing “should focus on fighting deflationary pressure.”
“Overall we have the problem of weak domestic demand, especially on the consumption and investment side, so that needs proactive fiscal policy and accommodative monetary policy,” he said.
“Analysts in China have been advised to avoid discussing sensitive terms such as ‘deflation’ or expressing views deemed overly negative for the economy. That comes as the country’s GDP deflator marked its longest slide since 1999,” reports Bloomberg News.
Local governments hold back on bond issuance
As China tries to tamp down debt risks, local governments are holding back on bonds issuance, a further blow to the faltering economy.
In the first eight months of this year, local governments bonds totaled 5.4 trillion yuan ($760 billion), down 14 percent from the same period a year earlier, according to data provider Wind.
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