While the US economy is driven by multiple factors including innovation, business sophistication, market size, financial market development, labor market efficiency, and higher education and training, high tax rates and tax regulations remain the two most important downsides of doing business in US.
An unprecedented stock rout in the summer of 2015 led to draconian anti-graft investigations into officials and executives in China’s financial sectors, with at least eight officials in the China Securities Regulatory Commission being detained.
There has been some indication that the Trump administration wishes to shift the US’ disposition toward Chinese initiatives such as the One Belt One Road initiative. Many negative American perceptions of Chinese economic leadership, particularly of the OBOR, must first be addressed.
Modi explained that the demonetization was to stop counterfeiting of the current banknotes, as these had allegedly been used for funding terrorism. It was also designed to crack down on black money, a term which refers to income illegally obtained or undeclared for tax purposes.
The Chinese government has prohibited the practices of cash pooling, loan granting, and deposit taking, and has now limited the P2P platform operator’s role to just providing a matching place for lenders and borrowers, acting only as an information rather than a credit intermediary.
The China Securities Regulatory Commission and the Securities and Futures Commission have approved the establishment of mutual stock market access between Shenzhen and Hong Kong, known as the Shenzhen-Hong Kong Stock Connect scheme.
The most alarming sign of a Chinese property bubble is the accelerated price movement in recent months. A more than 30 percent year to year price rally across a number of big cities and the sharp increase in mortgage lending have heightened concern that the property bubble is being reinflated.
Although the Bank of Japan recently announced the plan of “yield curve control,” it has been buying longer government bonds to push their rates down since 2012. The BOJ is only changing the policy target from the quantity of bonds to the price of the bonds. In particular, it aims to keep the 10-year bond yield at around zero.