LinkDoc First U S Market Victim as Chinese Companies Heed Didi Warning thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
(Bloomberg) Two of China’s largest bad-debt managers have told the banking regulator they’re concerned about losing access to the dollar bond market in the wake of turmoil at China Huarong Asset Management Co., according to people familiar with the matter.China Cinda Asset Management Co. and China Orient Asset Management Co. recently conveyed their concerns to the China Banking and Insurance Regulatory Commission, said the people, asking not to be identified discussing a private matter.While
Australia will lose share over the next five years in the global iron ore market to Brazil because of the latter’s high grade iron ore reserves and exports, according to a new report on the mineral from Fitch Ratings’ offshoot, Fitch Solutions.
The loss won’t be much in percentage terms, but in terms of tonnage, Brazil’s production is projected to grow at four times the rate of growth forecast for Australia.
The Fitch report, which appeared earlier this week, says global iron ore mine output growth will average 2.4% over 2021-2025 compared to the fall of 2.0% over the previous five years (which has helped boost prices as it met the surge in demand for steel in China from 2019 onwards and especially in the past year).
Advertisement
A year on from Canberra calling for an independent inquiry into the origins of COVID-19 and Beijing’s subsequent punishing of Australia via economic coercion, Australia has boldened its position by ripping up Australian state agreements with China and threatening to end Chinese ownership of critical infrastructure in Australia.
Australian Foreign Minister Marise Payne announced last month that the Victorian state government’s deals with China, which included a 2018 memorandum of understanding on the Belt and Road Initiative were “inconsistent with Australia’s foreign policy or adverse to our foreign relations” and were therefore terminated.
Chinese officials said the decision was “provocative” and would have serious repercussions.
The CCP’s Economic Coercion Tactics Against Australia Meet Its Waterloo
Commentary
Coercive economic policy is one of the key means of the Chinese Communist Party’s (CCP’s) presumptuous diplomacy style. Take a look at the foreign ministers’ meeting at G7 on May 5, when it criticized the CCP for “arbitrary, coercive, economic policies and practices.” The next day, the CCP’s National Development & Reform Commission (NDRC) issued a statement on its indefinite suspension of all activities under the China-Australia Strategic Economic Dialogue, stepping up its economic coercion of Australia to a whole new level since 2020.
Seemingly, the CCP has great favorable conditions for its retaliation against Australia. Firstly, based on the Australian Bureau of Statistics, from 2009 to 2010, China surpassed Japan, becoming Australia’s main export country. In the four-year period from 2014 to 2015 and 2019 to 2020, the value of Australia’s exports to China had doubled, an incre