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Whom Are We Going With?

Whom Are We Going With?
By 30 November Australia will have a new parliament. Before then, however, her citizens will have to solve a puzzling dilemma: whom do they want to go with? With the USA or the People’s Republic of China? The dilemma has been recently proposed by the academic and commentator, Hugh White. To be fair, most politicians and observers, including the recently ousted Prime Minister, Julia Gillard, believe that there is no need to choose at all. On the one hand, the USA would continue being Australia’s main security provider, obviously bearing in mind that in the most recent Defence White Paper (2009), the...
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China-USA: Investment Negotiations have a Long Way to Go

China-USA: Investment Negotiations have a Long Way to Go
Depending on the point of view, the economic crisis either provokes depression or inspires brilliance.  In the first case, the perception of decline prevails, a horizon with new players on the international scene.  In the second, an opportunity is presented to study the possible methods of managing and not succumbing to the redistribution of power.  Some equations can be solved while others remain inextricable.  The commercial and political accords that subtend the issue are visible on the front pages of newspapers.  The US and Asia’s attempts to contain China are evident in their work to form a...
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China: GDP slows to a more sustainable economic model

China: GDP slows to a more sustainable economic model
Is a slight flutter in the Chinese GDP—a 0.2% diminution—sufficient to cause a squall in the real and financial economies?  Can explaining a financial table determine chaos?  If this is possible in general and in a globalized economy, it is very less so in China’s case.  The latest data reports indicate a 7.5% second trimester growth with respect to the same time period last year.  Perhaps the predicted 7.5% annual growth will not be realized.  The alarm has sounded in offices across industrialized nations, in universities, and newsrooms.  But is Beijing equally worried?  According to...
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China Development Bank’s financing mechanisms: focus on foreign investments

China Development Bank’s financing mechanisms: focus on foreign investments
China Development Bank (CDB) makes use of different methods to promote overseas investments in infrastructure projects, expand its global portfolio and support Chinese companies abroad. It provides financing to Chinese firms, stipulates energy-backed loans to foreign authorities and national oil companies and invests in private equity funds. This paper outlines and discusses these schemes. Background China Development Bank is a major financial institution in the People’s Republic of China. It is at the center of Chinese infrastructural development and has financed high-speed railways, roads,...
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Banking in China’s Shadows

Banking in China’s Shadows
By its very definition, shadow banking is obscure, shrouded in secrecy, and difficult to discern. It is even harder to define shadow banking in China, where the official system is itself opaque and uncertain, an area where actual procedure is often diverges significantly from the rules. Shadow banking is usually a combination of financial instruments available on markets outside of the traditional banking system, but this does not mean that banks are not involved. They can carry out shadow banking operations, or even act as primary players, even though two principal differences are maintained. Safety...
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