Beijing is Trying Hard to Ward Off a Slowdown, But Data Continues to Disappoint (Macro News for December 9, 2023 – December 15, 2023)

China's economy continues to struggle with lackluster growth despite the nation's central bank's efforts to stimulate the economy. The nation's weak real estate market and flagging consumer demand are still not responding to a flood of liquidity pumped in by the central bank. China's real estate market typically accounts for about 30% of GDP but it is still in a slump created when the Chinese government cracked down on reckless borrowing by real estate developers.

Developing Countries Owe China at Least $1.1 Trillion—and the Debts are Due (Macro News for November 4, 2023 – November 10, 2023)

Over the past 20 years, China made about $1.1 trillion in loans to developing countries to help build infrastructure. Experts now estimate that almost 80% of these loans have been extended to nations that are struggling financially. Over half of the $1.1 trillion in loans are currently due to be repaid.

China Hits Back in the Chip War, Imposing Export Curbs on Crucial Raw Materials (Macro News for July 15, 2023 – July 21, 2023)

China enacted export controls over rare earth elements used to make semiconductors after the U.S. and Europe imposed export restrictions on computer chips going to China. The export controls will go into effect on August 1, 2023, and will impact gallium and germanium and are designed to protect China's national security interests. Chinese exporters will be required to get approval from Beijing before these rare earth metals can be shipped. Trade experts believe the restrictions were imposed to retaliate against the U.S. and EU.

China Cuts Main Interest Rate as Economic Recovery Fizzles Out (Macro News for June 14, 2023 – June 30, 2023)

The Chinese central bank lowered the country's primary benchmark interest rate to stimulate economic growth. The rate decrease represents the first time in 10 months that the nation's central bank cut rates. The central bank's actions come in the face of lower growth forecasts from several external sources, including several Wall Street banks.