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Tesla is finding out what it’s like when China gets a little angry

Last week, a Tesla sitting in a Chinese parking lot suddenly burst into flames. Over the weekend, Chinese state media published several critical stories about the company. Tesla’s image in China is incredibly important. The company is building a factory in Shanghai that is supposed to start churning out cars […]
Tesla is finding out what it’s like when China gets a little angry
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China is lulling the market into a false sense of security

Positive economic data from China has markets around the world rallying, but the country’s rebound will be fleeting. That’s because the recovery was built on unsustainably looser credit conditions. “To sustain that next year they’re going to have to post in nominal terms a record flow of credit,” Autonomous Research’s […]
China is lulling the market into a false sense of security
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Tesla should be ‘preparing for battle’ in China

With Model 3s on the way and a factory under construction in Shanghai, Tesla is beginning an aggressive push into China’s electric-vehicle (EV) market. It’s the biggest market for EVs in the world, but a combination of domestic competition, a weak Chinese economy, and an end to consumer subsidies is […]
Tesla should be ‘preparing for battle’ in China
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China has actually been closing for business for the last decade

When China used easy credit and infrastructure spending to avoid the global financial crisis, it reversed years of reforms to open its economy, economists say. That’s because that credit went to unproductive state-owned enterprises (SOEs) and starved the private sector. Now, China risks unemployment and social unrest if it does […]
China has actually been closing for business for the last decade
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The Huawei indictment marks the end of US and China’s cycle of trust

The US Justice Department’s criminal indictment of Huawei marks a new phase in the cycle of trust between the US and China. It is one in which aggression is more out in the open, and that aggression will directly influence perception and policy in both countries. What’s more, China is […]
The Huawei indictment marks the end of US and China’s cycle of trust
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China is once again staring down the biggest Catch-22 in its economy

China’s economy has started to slow dramatically, even before US tariffs have had a chance to make an impact. The government is scrambling to boost growth and walking back some of the measures it took to rein in debt and credit creation. This means it is once again encouraging infrastructure […]
China is once again staring down the biggest Catch-22 in its economy
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China’s economy is starting to show its true colours again

The most recent economic data out of China came in weak across the board. It shows the economy is still in a precarious situation, saddled with debt and at the mercy of credit. There have been signs this has been the case all year – despite the country’s relative stability. […]
China’s economy is starting to show its true colours again
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China needs the world more than ever right now. Don’t tell Trump.

China’s economy is showing a divergence. Exports are looking healthy, but the domestic economy is faltering. To stay afloat, China needs global demand more than ever. Don’t tell that to US President Donald Trump, who is just itching to put up tariffs that would hit the country’s exports. If there’s […]
China needs the world more than ever right now. Don’t tell Trump.