9 votes

Weekly US politics news and updates thread - week of December 6

This thread is posted weekly - please try to post all relevant US political content in here, such as news, updates, opinion articles, etc. Extremely significant events may warrant a separate topic, but almost all should be posted in here.

This is an inherently political thread; please try to avoid antagonistic arguments and bickering matches. Comment threads that devolve into unproductive arguments may be removed so that the overall topic is able to continue.

8 comments

  1. spit-evil-olive-tips
    (edited )
    Link
    congrats to Meg Whitman, the former CEO of Quibi (as well as eBay and HP Enterprise) who has been nominated as the US Ambassador to *checks notes* Kenya. random unrelated fact, she donated...

    congrats to Meg Whitman, the former CEO of Quibi (as well as eBay and HP Enterprise) who has been nominated as the US Ambassador to *checks notes* Kenya.

    random unrelated fact, she donated $500,000 to Biden's election campaign.

    9 votes
  2. [4]
    HotPants
    Link
    China's economy is not looking good, which is a concern as China is a significant economic driver for the world.... China pumps $188 billion into the economy to counter real estate slump China's...

    China's economy is not looking good, which is a concern as China is a significant economic driver for the world....

    China pumps $188 billion into the economy to counter real estate slump

    The People's Bank of China on Monday said it would cut the reserve requirement ratio for most banks by half a percentage point, starting December 15. That move, which reduces the amount of money that banks have to keep in reserve, will unleash some 1.2 trillion yuan ($188 billion) for business and household loans.

    The decision — the second cut to that ratio this year — came on the same day China's Politburo signaled that it may take more aggressive actions to protect the economy in 2022. The Chinese Communist Party's leadership team, chaired by President Xi Jinping, said in a statement that "ensuring stability" would be a top priority in the coming year.

    The statement was notable for its use of the phrase "stability is the top priority" — the first time the Politburo has used those words at its December meeting, which is dedicated to discussing the year ahead, according to Larry Hu, head of China economics for Macquarie Group.
    "In other words, top leaders are deeply concerned about the risk of potential instability," he added in a Monday research note.

    But China has faced a slew of challenges to growth in 2021, including a power shortage, shipping delays and a crisis in real estate. Analysts have also been worried about the effects of the country's massive crackdown on tech firms and other private companies.

    China's economy is getting walloped by crises in energy, shipping and real estate

    The country is in the middle of an energy crunch that is denting factory output and leading to power cuts in some areas. That problem has been fueled by demand earlier this year for construction projects that need fossil fuel and are at odds with Beijing's pursuit of ambitious targets to cut carbon emissions.

    Shipping delays and mounting inventories have also hit smaller manufacturers in China that are now hurting for cash, resulting in lost orders and production cuts.

    The real estate sector is also suffering from a government drive to curb excessive borrowing. Property investment is now falling. That's placing strain on developers, not least Evergrande, whose debt crisis has triggered worries about the risk of contagion for the sector and the broader economy. Some other property firms have already indicated that they are struggling to pay their debts.

    5 votes
    1. [3]
      HotPants
      Link Parent
      China is also becoming more isolationist, blocking the sharing of key economic data. China's disappearing ships: The latest headache for the global supply chain I read somewhere that an investor...

      China is also becoming more isolationist, blocking the sharing of key economic data.

      China's disappearing ships: The latest headache for the global supply chain

      Ships in Chinese waters are disappearing from industry tracking systems, creating yet another headache for the global supply chain. China's growing isolation from the rest of the world — along with a deepening mistrust of foreign influence — may be to blame.

      China's Personal Information Protection Law, which took effect November 1. It requires companies that process data to receive approval from the Chinese government before they can let personal information leave Chinese soil — a rule that reflects the fear in Beijing that such data could end up in the hands of foreign governments.

      With Christmas approaching, a loss of information from mainland China — home to six of the world's 10 busiest container ports — could create more problems for an already troubled global shipping industry. Supply chains have been under strain this year as badly congested ports struggle to keep up with a rapidly rebounding demand for goods.

      I read somewhere that an investor was unable to get simple financial statements to evaluate the credit worthiness of a Chinese company due to these new laws.

      It could be like COVID all over, if China's economy is about to tank, but they don't share the relevant data with other countries, China will be well positioned to recover faster than other companies.

      6 votes
      1. [2]
        HotPants
        Link Parent
        China Increasingly Obscures True State of Its Economy to Outsiders

        China Increasingly Obscures True State of Its Economy to Outsiders

        One driving force behind the expanding secrecy is a new data-security law that went into effect on Sept. 1, after Chinese officials grew concerned about the transfer of potentially sensitive data overseas. It subjects almost all data-related activities to government oversight, including their collection, storage, use and transmission.

        Since the law was passed, companies in mainland China have grown more reluctant to share information with multinationals in strategic sectors like finance, healthcare, public transportation and infrastructure, according to Jonathan Crompton, a Hong Kong-based lawyer at the law firm Reynolds Porter Chamberlain LLP.

        Authorities are ambiguous about what constitutes sensitive information, adding uncertainty for Chinese companies over what they can share with foreign partners.

        4 votes
        1. HotPants
          Link Parent
          Fitch lowers China Evergrande rating to 'restricted default' The China Evergrande Group is the second largest property developer in China by sales. Funds managed by BlackRock Inc. and Ashmore...

          Fitch lowers China Evergrande rating to 'restricted default'

          The China Evergrande Group is the second largest property developer in China by sales.

          Funds managed by BlackRock Inc. and Ashmore Group are among the holders of Evergrande offshore bonds.

          1 vote