China’s land prices in auctions have hit record highs in the first half of 2016. Land parcels were sold on average 41 percent higher than their asking prices. There are 205 land parcels with a price of over RMB 1 billion.
An anonymous “person with authority” said that China’s economic trajectory was experiencing an L-shaped path, involving a sharp decline followed by a long period of flat or stagnant growth. The questions are: when will the decline bottom out, and is it sustainable?
A natural corollary of the expansion of China’s economy and its massive financial reform would be the internationalization of the RMB. As an international payments currency, the RMB has leapfrogged from 20th position in 2012 to 5th in 2015.
The June 23 Brexit referendum saw the UK vote to leave the European Union. The exit decision shocked the world with implications not only in the political and economic arenas of the UK and EU, but which also has far reaching repercussions beyond Europe.
The internationalization of the RMB requires a moderate international monetary environment as well as China’s policy effort. A monetary policy coordination could tone down monetary policies and exchange rate swings and would bring about a less volatile and more even international monetary environment.
Economic policies beg for a major update from the implementation of the Doi Moi reforms in 1986. To ensure full integration into the global economy, including fulfilling expectations of the TPP, Vietnam need to do some serious adjustments.