Last quarter, China shook hands with the world (Olympics). Last week, China shook hands with Russia. This week China sends an envoy to Taiwan.
The domestic economy is now China's focus. The Chinese government has a stated objective to double disposable income for the 750 million people they have living in the countryside by 2020.
There are a variety of economically simulative measures that have been taken (land reform, lease rights, etc...) to help get them to this goal. However, the political measure of solidifying global trade partners may be as relevant as anything that’s currently changing for the Chinese.
Everything that matters in our models happens on the margin. The rate of change in China is slow, but it is steady and material.
Ostensibly, these meetings in Taiwan will result in more collaborative trade relations. Taiwan's new President, Ma, is certainly banking on it.
Stay tuned...
KM
The domestic economy is now China's focus. The Chinese government has a stated objective to double disposable income for the 750 million people they have living in the countryside by 2020.
There are a variety of economically simulative measures that have been taken (land reform, lease rights, etc...) to help get them to this goal. However, the political measure of solidifying global trade partners may be as relevant as anything that’s currently changing for the Chinese.
Everything that matters in our models happens on the margin. The rate of change in China is slow, but it is steady and material.
Ostensibly, these meetings in Taiwan will result in more collaborative trade relations. Taiwan's new President, Ma, is certainly banking on it.
Stay tuned...
KM
