Are the Chinese Nervous too? President Delays Retirement of Prominent Banker

Discussion in 'Asia' started by Twalbert, Aug 12, 2011.

  1. Twalbert
    Offline

    Twalbert Member

    Joined:
    Jul 19, 2011
    Messages:
    71
    Thanks Received:
    24
    Trophy Points:
    6
    Ratings:
    +24
    Perhaps a testament to the uncertain global economic headwinds that are currently prevailing, Chinese President Hu Jintao has delayed the retirement of China Development Bank's (CDB) chairman, sources said Friday.

    According to two people familiar with the situation, CDB chair Chen Yuan, who is currently 66 years old, will stay on as the bank's chairman until his five-year term ends in 2013. This goes against China's typical system, which requires a retirement age of 65 for cabinet ministers.

    A Reuters report notes that the news "Suggest that Beijing wants to keep a steady hand at the helm of the country's most powerful policy bank at a time of rising economic risks and global market volatility."

    Further adding fuel to the fire is the Chinese population's increasing distrust of their government's foreign reserve holdings. Especially with S&P's recent downgrade of U.S. government debt, it's likely that Chinese leaders want to keep the current chair to ensure stability and credibility.

    The China Development Bank provides loans to the country's enormous infrastructure projects in addition to offering financial aid for China's largest companies to expand. Ensuring calm waters at the CDB could make it easier for the government to manage local government debts.

    The report also notes that politics played a role in the decision, with one source telling Reuters that "Hu Jintao kept on Chen Yuan to show goodwill to 'princelings'.


    Source: Benzinga
     
  2. waltky
    Offline

    waltky Wise ol' monkey Supporting Member

    Joined:
    Feb 6, 2011
    Messages:
    20,873
    Thanks Received:
    1,791
    Trophy Points:
    215
    Location:
    Okolona, KY
    Ratings:
    +3,884
    Senate to deal with yuan practices...
    :cool:
    US Senate to Consider Bill Targeting Chinese Currency Practices
    October 02, 2011 - America’s extensive yet friction-laden economic relationship with China will be the focus of debate in the U.S. Senate this week, as it considers a bill to penalize Beijing for allegedly manipulating China’s currency, the yuan, to benefit domestic exports and disadvantage foreign imports.
     
    • Thank You! Thank You! x 1
  3. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Of course China is nervous.

    Despite the fact that China did an enormous Stimulus and by doing so get its economy back on track, China trade partners in Europe and America are still in financial trouble.

    It's an internation world of trade and if your trade partners are in trouble, then you are too.
     
  4. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    About time. :clap2:
     
  5. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    They don't see it that way.. :eek:
     
  6. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    They don't?

    How do you know that?

    Do you believe that China's economy will keep humming along if their trade partners economies are going down?

    More importantly, do you believe that the Chinese leadership believes that?
     
  7. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    Mainly because I was there last year for the EXPO.

    The Chinese are rapidly building up their cities at a breakneck pace.

    They aren't all that concerned with "Trading Partners" right at the moment.
     
  8. Unkotare
    Online

    Unkotare Diamond Member

    Joined:
    Aug 16, 2011
    Messages:
    61,536
    Thanks Received:
    4,887
    Trophy Points:
    1,815
    Ratings:
    +11,894
  9. waltky
    Offline

    waltky Wise ol' monkey Supporting Member

    Joined:
    Feb 6, 2011
    Messages:
    20,873
    Thanks Received:
    1,791
    Trophy Points:
    215
    Location:
    Okolona, KY
    Ratings:
    +3,884
    possum thinks mebbe dey want their MTV...
    :eusa_eh:
    The rise of an economic superpower: What does China want?
    November 5, 2011 - As an economic superpower, what does China want on the global stage?
     
  10. pgm
    Offline

    pgm Member

    Joined:
    Sep 8, 2011
    Messages:
    510
    Thanks Received:
    34
    Trophy Points:
    16
    Location:
    South Florida
    Ratings:
    +34
    Trying to publicly pressure China into doing anything is the worst way to get China to change its actions. Especially with the upcoming transition of power. Saving face is the most important thing.

    Some facts to consider.
    China's currency has been appreciating. That is, until Congress brought up this legislation; then it took a dive.
    The trade gap with China has only increased as the currency has appreciated.
    U.S. exports to China have increased the most of any large economies by percentage over the last decade.

    Why start a trade war?
     

Share This Page