Wu Jianmin, one of China’s most influential and outspoken diplomats, passed away in a car accident in Wuhan on June 18, 2016. His views on China’s security environment and open opposition to expanding nationalism and populism had made him a controversial figure, winning both acclaim and abuse.
MSCI Inc.’s decision on June 14, 2016 to not include China A-shares in the MSCI Emerging Market Index is seen by some analysts as a blow to the country’s efforts in raising its stock market profile and turning the RMB into an international currency.
By investing aggressively in various parts of the world, China is transferring its foreign exchange reserves to other countries and intends to earn investment return from these activities. However, due to reasons such as economic slowdown and capital outflow, the balance of the foreign exchange reserves is diminishing.
Chinese opinion surveys consistently show that more than 70 percent of survey respondents agree that their government is responsive to public opinion. In contrast, in the same surveys, only a little over 30 percent in democratic Taiwan feel the same way.
Initial worries of clashes between the AIIB and existing Bretton Woods institutions such as the World Bank and the Asian Development Bank have subsided with increasing cooperation among these institutions and adoption of similar governance rules.
The loss of the “Remain” vote in the referendum puts into question the multibillion dollar Sino-UK cooperation agreements signed during Chinese President Xi Jinping’s state visit to the UK last year, in particular the Hinkley Point nuclear project.
Chinese President Xi Jinping’s state visits to Serbia and Poland in June 2016 follow his state visit to the Czech Republic just 3 months earlier, underscoring the importance China places on the markets of Central and Eastern Europe.
It is ironic that the world’s largest trading nation still needs other countries to judge its trade status, an indication that China has a long way to go to transform its economic prowess into political power. Can China exercise its economic weight to win more political support?
The saturated domestic market compels China to export its capabilities to fuel its economic growth. China’s Asian neighbors are facing shortages of capital and technology. By satisfying these needs, China can help its companies to expand overseas and climb up the global industry value chain.