China's Boom Economy

Hoping to meet the demand of its burgeoning airline industry, China has launched a commercial aircraft manufacturing company with $2.7 billion in seed money, reports the BBC. China Commercial Aircraft should help the country rely less on Airbus and Boeing as its passenger industry expands. Chinese airlines will need 2,650 additional aircraft in coming years, experts say. More »

Asia need funds fast to prevent billions of people from facing severe hunger, says the region's development bank. The bank today appealed for "money and ideas" to stave off poverty in the wake of rice and wheat prices doubling over the past year, reports Reuters. "The global fight against poverty will be won or lost in our region," said the bank's president. More »

For years, American investors have hungrily flocked to China’s massive market, but now the money’s flowing the other way, too, the Los Angeles Time s reports. China invested $9.8 billion in the US in 2007, and not all in big government buys either. With real-estate and other costs fairly low and many states keen to create new jobs, small businesses are finding a good fit. More »

The new Terminal 3 at Beijing airport—the largest building in the world—is not only the gateway for visitors streaming into the Chinese capital for this summer's Olympics. It's also the capstone for an unprecedented building program that has transformed Beijing into a world-scale architectural showcase. The New York Times looks at how China is translating its rapid growth and political ambition into such projects—and hoping the world notices. More »

If you thought Las Vegas was gambling’s capital city, think again. Casinos in Macau didn’t just beat Nevada’s finest this quarter, they lapped them. Macau’s gambling revenues jumped 62% from a year ago, doubling Vegas’ take over that stretch—though the casinos, which can't lend money directly to gamblers, have to split some of the take with middlemen, MarketWatch reports. More »

The last-minute drama brewing in the runup to this summer's Olympic Games is of a more global and more personal nature than the infrastructure issues of Olympics past—and Chinese leaders are bristling under the scrutiny, the Chicago Tribune reports. But pride in the country's hosting gig remains strong, even among the impoverished workers who could never afford a ticket. More »

For the first time since China unpegged its currency from America’s in 2005, a dollar bought less than 7 yuan at closing today in Beijing, the New York Times reports. Western countries protested for years the yuan was undervalued; its meteoric rise means Chinese goods are getting more expensive in the US—raising inflation fears. More »

A new anti-monopoly law in China could interfere with Microsoft’s bid for Yahoo, the New York Times reports. Because Yahoo owns 40% of Alibaba, China’s biggest e-commerce business, Beijing could demand approval of the deal along with the US and the EU. “I don’t think anyone has worked through the issue of where an Internet merger should be reviewed,” said a law professor. More »

China may be running on less-than-full tank again as gasoline and diesel shortages spread to Shanghai and Beijing, the AP reports. Long lines are a common sight outside filling stations, which have been plagued by erratic shipments. “We have no diesel available at all,” said one gas station worker. “Once it comes, it will soon run out.” More »

Taiwan’s China-friendly opposition party handily beat the island’s ruling party in today’s presidential election, signaling smoother relations between the feuding governments, Reuters reports. President-elect Ma Ying-jeou, who won the vote over the Democratic Progressive Party 58%-42%, campaigned on a call for stronger economic ties with Beijing. More »

The air quality in Beijing poses a “possible risk” to athletes in endurance events, the International Olympic Committee announced today. After analyzing data collected in Beijing in August, the IOC’s medical commission concluded that most competitors won't be affected by the smog, but it will monitor air quality throughout the Games and reschedule events if the pollution is too dangerous, the Washington Post reports. More »

It seemed like a miracle to Xu Ting of Guangzhou: a misplaced decimal point somewhere in the bowels of an ATM meant that his $140 withdrawal debited his account only 14 cents. Over several hours he made another 170 transactions, pocketing more than $24,000. But after getting robbed and buying lottery tickets, he ended up in court—where he was sentenced to life imprisonment for bank robbery, writes the Los Angeles Times . More »

Ahead of this August's Olympics, Beijing is set to open a new airport terminal that has been billed as the world's largest building. Designed by Norman Foster, who also designed Hong Kong's airport, the new Terminal 3 was built in only 4 years and, unlike many buildings in China, incorporates environmental control systems to minimize energy consumption, writes the Independent . More »

Pigjacking is China's latest crime. Sounds like a joke? Crooks are scoffing the swine thanks to a boom economy and a pig shortage that has hogs highly valued. With a record winter storm stranding thousands and sparking unrest, Beijing is dipping into its official pork preserve—hoping to calm a country that gets 65% of its protein from porkers, Newsweek reports. More »

Conventional wisdom chalks up the economic booms in China and India to their moves toward global capitalism in the '90s. It's a comforting thought for the West, writes Pranab Bardhan in the Boston Review , but the truth is far more complex. The astounding growth in both countries started well before recent market reforms. Bardhan re-evaluates the well-worn myths surrounding the past, present, and future of these economic giants. More »

After years of pumping out cheap consumer goods, China is driving up American price tags, the New York Times reports. As costs rise domestically, prices down the supply chain rise at the same time that recession threatens in the US. “China has been the world’s factory,” said one economist. “But its heyday is over. We’re going to see higher prices.” More »

As more snow fell today across China, the unusual inclement weather continued to highlight how vulnerable the country's economy is to disruption. The snow has prevented deliveries of food and fuel—particularly coal—and dozens of factories remain closed. State television announced that the government would mount an "all-out war" on the weather crisis, the AP reports. More »

As the dollar drops, foreign investors are buying up US enterprises large and small, from multi-billion-dollar stakes in Wall Street banks to ownership of chemical factories and construction companies in the likes of North Carolina. Canadian, British and German companies have been expanding their portfolios in the US for years, but the Middle East and China are quickly catching up. And it makes some politicians queasy, the Washington Post reports. More »

Bigwigs spooked by the downturn in the US economy aren't spreading their usual cheer at the World Economic Forum in Switzerland, Fortune reports, but many other Davos attendees are smiling. Representatives say the Indian and Chinese economies are strong enough to weather recession; many agree with George Soros that “the current crisis is the end of an era based on the dollar.” More »

China is cracking down on its booming, billion-dollar online game industry, which is seen as “spiritual opium” that threatens to hook the Chinese people, Reuters reports. The government today said it plans to regulate “undesirable” elements out of the game, which 41 million Chinese played this year. “The whole industry is marginalized by mainstream society,” one senior official said. More »