US-China Trade Update 4-25-2012: Easing is Under Way

According to the People's Bank of China, the outstanding broad money supply, which covers cash in circulation and all deposits, rose 13.4 percent year-on-year by the end of March, from 12.4 percent in January. The money supply has been increasing for three consecutive months. Most analysts believe the increase is reasonable and in line with economic growth and prices. The expanding demand for credit is credited with being behind a surprise money supply growth rise, sending strong positive economic messages. However, some experts believe a new round of easing is under way because of the slowdown in economic growth and declining inflation. All this and much more in this week’s U.S. China trade.



In the News: Carmaker Gets Out the Good China for Beijing Auto Show
Wall Street Journal China Real Time Report, April 24, 2012
“Chinese auto maker Roncheng Hawtai Motor Co. is angling for a seat at the table as a major player in its home market by getting out the good china. As in porcelain.The Shandong Province-based automaker unveiled a high-concept version of its humdrum B11 midsize sedan at the Beijing auto show featuring a striking paint job and matching interior that invoked a late Ming dynasty vase.” Read More

In the News: Surprise money supply growth
China Daily, April 24, 2012
“Some experts believe a new round of easing is under way because of the slowdown in economic growth and declining inflation but is it really a good time to change the "prudent" monetary policy stance, or has it already been carried out?” Read More

In the News: GM, Volkswagen, Renault pledge new China investments
China Economic Review, April 24, 2012
 “Several Western automakers announced new investments and partnerships in China to coincide with the Beijing Auto Show being held this week. General Motors (GM.NYSE, GMM.U.TSE) announced plans to expand its dealership network in China by 20%, adding 600 dealerships to its existing 2,900.” Read More

Commentary: A Tax Reform Proposal That Could Win Over Everybody
Institution, John L. Thornton China Center , April 23, 2012
“If I were forced to choose after the election between extending the Bush tax cuts in total and letting them all lapse, I would join Tim Noah in opting for the latter. But I'm reluctant to assume that's the best we can do. Indeed, as frustrating as the gridlock in Washington is, we should use it as an opportunity to strip down the tax debate to its basics, and reflect on where we want to go. Then we can determine the path that gets us closest to our goal.”  Read More

Commentary: Allen Carlson: What West Doesn’t Get About China
Diplomat, April 21, 2012
“China's loudest and most nationalistic voices aren't necessarily its most influential; behind the monochromatic official announcements lies a debate and lack of consensus about Chinese direction, both internal and external, Allen Carlson writes in the Diplomat.” Read More

Commentary: China Should Exercise Global Leadership on Europe
by Juan Carlos Martinez Oliva | April 20th, 2012
“The issue of whether and how much to increase the lending power of the International Monetary Fund (IMF) to reinforce its ability to cope with the euro area crisis is among the most debated at the IMF-World Bank meetings this week. The pledges have reached $320 billion, which falls short the target of $400 billion or more called for by IMF Managing Director Christine Lagarde, which itself is a downward revision of the previous IMF request for $500 billion announced last January.” Read More
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