China Surges Ahead While Ideological Battles Hinder the U.S.

Public policy, stripped to its basics, is a choice among value alternatives. What one person will vehemently contend is the correct policy and another will say is wrongheaded will not depend on empirical measurement, but on the person’s values, philosophy, and ideology.” – John Kasarda

While in the above quote Kasarda, business professor at UNC-Chapel Hill and co-author of the book Aerotropolis, refers to individual values, the same rule is also applicable to groups and institutions. This is certainly the case in the United States where the government  is in the midst of tense negotiations over the so-called ‘debt ceiling’. America’s two main political factions, Republicans and Democrats, are currently at a loss of coming to a consensus due to ideological hangups.

Republicans, who favor severe austerity by cutting social programs yet oppose any sort of tax increases, are unwilling to compromise. The Republicans’ flawed ideological-based approach to solving America’s  economic turmoil comes at perhaps one of the worst times in the country’s history with unemployment at an all-time high and millions losing social benefits. Even Vice President Joe Biden recently told Republican lawmakers that their “intransigence over taxes is a matter of ideology not economics“. Continue reading

World’s Longest Sea Bridge Opens in Qingdao

To mark the 90th Anniversary of the founding of the Communist Party two weeks ago, the seaside city of Qingdao in Shandong province opened its new Jiaozhou Bay bridge. At 42.4 km, it is the longest sea bridge in the world. The bridge links historic Qingdao with the city’s industrial zone Huangdao. Continue reading

Torrential Rains and Flooding in Chengdu

It’s been a rough start to the summer season for provinces in central and southwest China. Torrential rain and floods have affected millions, destroying crops and forcing many to evacuate their homes. Chengdu was largely spared any flooding up until this past Sunday when a heavy storm dumped on the city.

The storm blew out power lines while the flooded streets created traffic chaos throughout the city. My colleague took some photos of the flooding near his apartment in the low-lying southern part of Chengdu. Continue reading

Local Debt Adding Fuel to Bearish Outlook on China

Credit rating agency Moody’s recently released a report claiming that Chinese financial auditors have understated local government debt by half a trillion dollars. This is no small estimate, and the thought of so many non-performing loans on bank balance sheets is enough to make any seasoned investor bearish on China.

Of course, the majority of debt is fueled by lending that is going to local provincial and municipal governments and developers to fund new infrastructure and building projects. Banks are making these loans because of direct orders from the top-level of China’s central government. These orders were stepped up significantly after the 2008 world financial crisis to keep the country’s growth engine humming along as the export market fell off a cliff. Continue reading

Beijing to Shanghai High-Speed Rail Opens

Photo by bennettdesign

China’s ambitious high-speed rail program inaugurated perhaps its most important line yesterday: Beijing to Shanghai. The train made its debut on the eve of the 90th anniversary of the founding of China’s Communist Party with Premier Wen Jiabao onboard declaring the line ‘in operation’.

The trip linking China’s two largest cities takes just under 5 hours and scheduled trains will make stops along the way in Tianjin, Jinan and Nanjing. Continue reading