Is exchange rate stability beneficial for stabilizing consumer prices in China?

This study examines the relationship between real effective exchange rates (REERs) and the consumer price index (CPI) in China, utilizing a bootstrap Granger full-sample causality test and a sub-sample rolling-window estimation. Considering structural changes, we assess the stability of the parameters and find that both the short-run and long-run relationships between the two estimated variables are unstable. This result suggests that full-sample causality tests cannot be relied upon. We instead employ a time-varying (bootstrap) rolling-window approach to revisit the dynamic causal relationship, and we find that the CPI is affected by the REER for several sub-samples due to the role of exchange rate pass-through (ERPT) under the managed floating exchange rate regime in China. These findings provide further proof of the impact of stable exchange rates on the maintenance of relatively steady price levels especially during the economic crisis and economic reform in China. The policy implication of these findings is that maintaining exchange rate stability is beneficial for controlling inflation during the economic crisis and economic reform.     

China’s Stone Market

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China’s Booming Cross-border E-commerce

On November 21,2014,China first provincial cross-border e-commercial industry associationGuangdong CrossBorder E-CommerceAssociation(referred to asGDCBEA)was established.In 2014,not only giant companies but also startup companies kept a close watch on crossborder e-commerce.Companies such as     

Does US quantitative easing affect exchange rate pass‐through in China?

In this paper, we show theoretically and empirically that the US quantitative easing (QE ) policy results in lower exchange rate pass‐through into the destination prices of Chinese exporters. In addition, the more the exchange rate in the export destination appreciates than the Chinese yuan, the stronger this effect becomes. Our model combines various marginal effects of QE policy on the destinations of Chinese exporters and variable markups of export firms due to strategic complementarities. The model predicts that the impact of US QE policy on the pass‐through of Chinese exporters depends on its spillover on the exchange rate between China and the export destination of different firms. We provide strong support for the model predictions using Chinese firm‐product‐level data with information on export destinations. The baseline result and the heterogeneity we find in the response of exchange rate pass‐through of Chinese exporters to US QE policy remain robust to alternative measures of samples and controls.     

China’s Toy Exports Increase Sharply

According to recent data from the General Administration of Customs,China's toy exports during January and February reached USD 5.02 billion,up 96.8% from last year and 41.2%from 20i9.CTJPA(China Toy 8 Juvenile Products Association)said the export of toys and other products of thestay-home economyhave shown strong momentum.     

Asymmetric changes in Australia’s small business loan rate

This paper examines the dynamic asymmetric relationship between changes in the Reserve Bank of Australia’s (RBA) cash rate and the interest rate for small business loans using monthly data (1990–2011). The results provide support for the rockets-and-feathers hypothesis with respect to both the amount and adjustment asymmetries. While the RBA’s rate rises exert a one-to-one and instantaneous impact on the loan rate, its rate cuts are only slowly and partially passed onto small businesses with a delay of 1–2 months. The results also suggest that the recent global financial crisis increased the cost of borrowing for small businesses in Australia by 2.21 %. These findings indicate that small businesses have limited time to respond to interest rate rises and not provided with the full benefit of interest rate decreases. Addressing this problem should ease the interest rate burden for small businesses and enhance their contribution to the economy.     

China＇s registered urban Jobless rate：4.3%in Q1

From January to March, 2.68 million people joined the workforce in cities and towns across the country, which is 29 percent of this year＇s target of 9 million people, and the registered urban unemployment rate was 4.3 percent, lower than the 4.6 percent target for this year.     

China＇s imports, exports continue falling, but rate eases

China＇s imports and exports continued falling year on year in June, but the pace of decline eased, the General Administration of Customs announced on July 10.     

European aid for China’s economy?

The fact that increasing importance is being attached to foreign trade under the new Chinese leadership must not be mistaken for automatic expansion of the importation of foreign goods. Foreign trade will, as before, have only a complementary function in the economic development of China. For the time being there is no chance of doing really big business with China.

     

European aid for China’s economy?

The fact that increasing importance is being attached to foreign trade under the new Chinese leadership must not be mistaken for automatic expansion of the importation of foreign goods. Foreign trade will, as before, have only a complementary function in the economic development of China. For the time being there is no chance of doing really big business with China.     

China’s Night-time Economy Continues to Increase

Consumers of the night-time economy not only help to stimulate the domestic de-mand for 1ocal residents,but also prolong the retention time of non-local tourists and business and office workers, thereby driving local economic development.Throughout the pandemic.     

China’s growing conflict with the WTO

China is the leading exporter of rare earths, elements which are crucial to the development of high-tech products and new green technologies. In recent years, however, China has begun imposing export restraints on these elements in order to benefit its domestic economic development. This reduces global supply and thus artificially leads to higher prices for importing countries. The EU, the US and Japan have launched a formal complaint in the WTO against China’s export restrictions. China claims that these restrictions are aimed at environmental protection. This paper examines China’s rare earth policy and its compliance with WTO rules.     

Persistent high-growth firms in China’s manufacturing

Small Business Economics - This article explores the association between persistence of high-growth and crucial dimensions of firm structure and performance (productivity, profits, investment...     

China’s Guochao Economy Is Growing Rapidly

One NPC representative said during this year'sTwo Ses-sionsthat Hanfu(China'straditional clothing)is an important part of China's folk culture,and thatthe third of March on the cal-endar year will be designated asChina Hanfu Day.Data from iiMedia Research shows that the number of Hanfu fans and the scale of the Hanfu market have been growing fasteryear by year.     

China’s Anti-Pandemic Actions Convey Great Confidence

The COVID-19 pandemic has made the year 2020 very special.When faced with the spreading pandemic,China has firmly stood with the world and taken up its responsibility as a great nation.With its strenuous efforts,China basically brought the spread of the virus under control within one month and reduced the number of new cases to single digits within two months.It took about 3 months to win the battles in Wuhan City and Hubei Province.China’s hard work in fighting the COVID-19 pandemic has shown its great power and confidence to the whole world.