US-China Trade Update 3-1-2012: Rising Stocks

As China’s stocks are rising for several days in a row, property developers are challenged with real-estate restrictions, and lower oil prices in the auto industry. Although, the European government has reached an agreement on a Greek aid package, Chinese government will adopt more measures to ease a credit crunch.

Meanwhile, according to HSBC Holdings Plc China will overtake the U.S. as the world’s largest trading nation by 2016, as intra-Asian commerce and rising demand from emerging markets boost shipments.

All this and much more in this week’s U.S. China update.

Contents
Trade
Economy
Global Relations

Trade

In the News - China’s Stocks Rise for 5th Day on Property Outlook, Lower Oil
Bloomberg Businessweek, February 23, 2012
"China’s stocks rose for a fifth day as property developers climbed on speculation more local governments are challenging real-estate restrictions and lower oil prices spurred gains for automakers and shipping companies." Read more

In the News - China Stocks Rise for Fourth Day on Property Easing Speculation
Bloomberg Businessweek, February 22, 2012
"China’s stocks rose for a fourth day on speculation Shanghai, the nation’s financial center, will relax property curbs to prevent slumping home prices from undermining the world’s second-biggest economy." Read more

In the News - China Stocks Rise to 11-Week High on Easing Liquidity, Greece
Bloomberg Businessweek, February 21, 2012
"China's stocks rose to the highest in 11 weeks after European governments reached an agreement on a Greek aid package and investors speculated the Chinese government will adopt more measures to ease a credit crunch." Read more

In the News - China to Overtake U.S. as Largest Trading Nation, HSBC Says
Bloomberg Businessweek, February 21, 2012
"China will overtake the U.S. as the world’s largest trading nation by 2016, as intra-Asian commerce and rising demand from emerging markets boost shipments, according to HSBC Holdings Plc." Read more

Commentary - Alex Roarty: The Risks of Romney's Anti-China Rhetoric
The Atlantic, February 21, 2012
"The presidential candidate says he wants to take "counteraction" against Beijing for its trade policies, but U.S. China-hands are skeptical… The Republican presidential hopeful sounds more like a card-carrying union member than a former CEO when he outlines his White House agenda for China, urging tariffs and downplaying the threat of a trade war." Read more

In the News - China Telecom Becomes Nation’s Second Carrier Selling IPhone
Bloomberg Businessweek, February 21, 2012
"China Telecom Corp. will become the nation’s second wireless operator to offer Apple Inc.’s iPhone 4S, two months after “staggering” demand prompted the U.S. company to suspend sales at its own stores." Read more

In the News - China Stocks to Extend Gain on Ratio Cut, BofA, Dazhong Say
Bloomberg Businessweek, February 20, 2012
"China’s stocks may extend gains into a sixth week after the government cut lenders’ reserve- requirement ratios for the second time in three months, according to Bank of America Corp. and Dazhong Insurance Co." Read more

In the News - Asia Stocks Equal Record Win Streak as China Pledges Europe Help
Bloomberg Businessweek, February 19, 2012
"Asian stocks rose this week, with the MSCI Asia Pacific Index equaling its longest streak of advances, as China pledged to do more to help Europe cope with the debt crisis and Japan boosted asset purchases." Read more

In the News - U.S. Films Win China Access as Xi Wraps Tour With Import Vow
Bloomberg Businessweek, February 18, 2012
"U.S. filmmakers won improved access to China’s $2.1 billion box-office market in an agreement that resolves a five-year dispute between the two countries at the World Trade Organization." Read more

In the News - Apple Wins Hong Kong Ruling, Aiding China IPad Trademark Fight
Bloomberg Businessweek, February 17, 2012
"Apple Inc. can use some documents filed previously by Proview International Holdings Ltd. in the Hong Kong courts, aiding the iPad maker’s efforts in a trademark dispute over the tablet computer’s name in China." Read more

In the News - China May Become World’s Biggest Gold User, Beating India
Bloomberg Businessweek, February 16, 2012
"China, the world’s largest consumer of energy and base metals, is set to displace India this year as the biggest gold user on an annual basis as surging incomes drive increased demand for jewelry and investments." Read more
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Economy

In the News - China Manufacturing Data Shows Risk of Deeper Slowdown: Economy
Bloomberg Businessweek, February 23, 2012
"China’s manufacturing may shrink for a fourth month in February, indicating the world’s second- biggest economy remains vulnerable to a deeper slowdown as Europe’s crisis caps exports and the housing market cools." Read more

In the News - China Solar Silicon Production Curbed 30% to Lift Prices: Energy
Bloomberg Businessweek, February 23, 2012
"China’s polysilicon industry, the biggest supplier to solar-panel manufacturers worldwide, has idled almost one-third of production and may keep the plants closed until prices recover from a 60 percent plunge." Read more

In the News - Bank of America to Speed Growth in China After Doubling Profit
Bloomberg Businessweek, February 23, 2012
"Bank of America Corp., the second- biggest U.S. lender, will accelerate its expansion in China after doubling profit and boosting its workforce in the world's fastest-growing major economy last year." Read more

Commentary - Nicholas R. Lardy: China’s Rebalancing Will Not Be Automatic
Peterson Institute, February 22, 2012
"The argument that China’s economy is rebalancing internally seems quite weak. Moreover, the current declines in China’s external surpluses are in large part the result of a weak global economy and a modest appreciation of the renminbi, not fundamental rebalancing." Read more

In the News - Wal-Mart Raises Stake to 51% in China Online Retailer YihaodianBloomberg
Businessweek, February 21, 2012
"Wal-Mart Stores Inc., the world’s largest retailer, became a majority shareholder in Yihaodian by raising its stake in the Chinese online supermarket to tap rising consumer wealth and help the company offer more products." Read more

Commentary - Gordon G. Chang: Rearranging The Deck Chairs On The SS Chinese Economy
Forbes, February 20, 2012
As China's economy begins to slow, the country's leadership dismisses concerns and is doing little to help. Read more

 In the News - Yen, Dollar Drop Amid China Policy Easing, Progress on Greek Aid
Bloomberg Businessweek, February 20, 2012
"The yen and dollar dropped against most major peers after the People’s Bank of China announced a cut to banks’ reserve requirements to spur growth, curbing demand for refuge assets." Read more

In the News - China Set to Add to Reserve-Ratio Cuts as Prices Deter Rate Move
Bloomberg Businessweek, February 20, 2012
"China is seen making more cuts to banks’ reserve requirements to fuel lending and sustain economic growth as the housing market cools and Europe’s sovereign-debt crisis weighs on exports." Read more

In the News - Lamborghini Says Slowing China Economy May Hurt Supercar Demand
Bloomberg Businessweek, February 20, 2012
"Lamborghini SpA, maker of the $1 million Aventador LP 700-4, said industry sales of ultra-luxury sports cars may slow as signs that China’s economy is weakening puts off some buyers." Read more

In the News - China January Home Prices Post Worst Performance in a Year
Bloomberg Businessweek, February 20, 2012
"China’s January home prices recorded their worst performance in at least a year, with none of the 70 cities monitored by the government posting gains as Premier Wen Jiabao reiterated his determination to maintain property curbs." Read more

In the News - China Banking Shares Rise on Reserve Ratio Cut: Hong Kong Mover
Bloomberg Businessweek, February 20, 2012
"Chinese banking shares climbed after the central bank reduced the proportion of deposits they must set aside, cutting the ratio for the second time in three months to fuel lending and sustain economic growth." Read more

In the News - China Set to Add to Reserve-Ratio Cuts as Prices Deter Rate Move
Bloomberg Businessweek, February 20, 2012
"China is seen making more cuts to banks’ reserve requirements to fuel lending and sustain economic growth as the housing market cools and Europe’s sovereign-debt crisis weighs on exports." Read more

In the News - U.S. Stock Futures Rise as China Cuts Reserve Ratio for Lenders
Bloomberg Businessweek, February 20, 2012
"U.S. stock-index futures rose as China’s central bank cut reserve requirements for lenders to support growth and euro-area finance ministers gathered to decide whether to bail out Greece for a second time." Read more

In the News - China Set to Add to Reserve-Ratio Cuts as Prices Deter Rate Move
Bloomberg Businessweek, February 19, 2012
"China is seen making more cuts to banks’ reserve requirements to fuel lending and sustain economic growth as the housing market cools and Europe’s sovereign-debt crisis weighs on exports." Read more

In the News - China’s Xi Warms Up for Lakers Game by Touring Los Angeles Port
Bloomberg Businessweek, February 19, 2012
"China’s Vice President Xi Jinping, the presumed next leader of the world’s most populous nation, takes in a Los Angeles Lakers game today after a tour yesterday of the city’s port." Read more

In the News - China: Vocational Education Matches Youth with Jobs and Helps Sustain Growth
World Bank, February 17, 2012
"The World Bank has helped China to develop vocational education for two decades, to make the system better meet the demands of students and the labor market." Read more

In the News - China Housing Market in ‘Mother of All Bubbles,’ GMO Says
Bloomberg Businessweek, February 17, 2012
"China’s housing market is experiencing the “mother” of all bubbles, and a property slump will hurt everything from Australian mining firms to Europe’s luxury-goods makers, according to Grantham, Mayo, Van Otterloo & Co." Read more

Commentary - David Lundquist: Why China Isn't Winning: American Higher Ed Is Still Much, Much Better
The Atlantic, February 16, 2012
"Chinese universities are antiquated, hindered by political orthodox, and often unhappy places for students." Read more

 In the News - Romney Supporter Jon Huntsman Blasts Romney for China Column
The Atlantic, February 16, 2012
"The former candidate and ambassador to China takes an unusual swipe at the man he supports for the GOP nomination." Read more

In the News - Chinese Telecoms May Be Spying on Large Numbers of Foreign Customers
The Atlantic, February 16, 2012
"A U.S. Congressional probe is investigating whether China's state-linked firms, which built much of the communications infrastructure in several Asian countries, is using its access for snooping." Read more
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Global Relations

In the News - China Buys More Iranian Crude in ‘Recent Months,’ IEA Says
Bloomberg Businessweek, February 20, 2012
"China bought an additional 200,000 barrels a day of oil from Iran in “recent months,” the International Energy Agency said." Read more

Commentary - Dexter Roberts: Is Capital Fleeing China?
Bloomberg Businessweek, February 17, 2012
"For the first time since the Asian financial crisis in 1998, China recorded a drop in its foreign exchange reserves—down from $3.2 trillion, to $3.18 trillion, in the fourth quarter of last year." Read more

In the News - China Curbing Overcapacity Helps GM Plan Double Deliveries: Cars
Bloomberg Businessweek, February 21, 2012
"China is clamping down on overcapacity in the world’s biggest automobile market, benefiting companies with entrenched production and sales, such as General Motors Co., while hurting newcomers to the market." Read more

In the News - China Sees Renewed Capital Inflows, Yuan Gain Expectations
Bloomberg Businessweek, February 16, 2012
"Capital flows into China have rebounded this year, the central bank said, bolstering the case for officials refraining from any immediate cuts in banks’ reserve requirements." Read more
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