China's new digital renminbi by itself will not help the currency to challenge the US dollar's global dominance. Its true significance instead lies in its potential to shift the competitive balance of power between the country's technology giants and traditional banks.
By Redaktion Table
On Thursday and Friday almost 40 heads of state and government will meet at the invitation of the US president for a virtual climate summit. Xi Jinping is also expected to attend. China is a global leader in the field of green finance, i.e. green investments to restructure the economy. The problem is that in the People's Republic green bonds may also be used for "clean coal", "clean oil and gas". This is hardly compatible with climate targets. However, the authorities are striving for reform.
By Nico Beckert
China is the most important bilateral donor for developing and emerging countries. A research team led by the Institute for the World Economy has now been able to analyze 100 Chinese loan agreements to developing countries for the first time. China.Table was given advance access to the underlying study. The Chinese contracts contain "unusually far-reaching secrecy clauses" and ensure Beijing priority over other creditors in the event of insolvency. Some contract clauses even allow Beijing to "potentially influence" the policies of debtor countries. Despite strict contractual clauses, Beijing regularly grants debt rescheduling and deferments.
By Nico Beckert
The entire financial arm of the Alibaba Group will be regulated like a financial house in the future. Not without reason: Ant Financial already originates more than a fifth of consumer loans in China. With Ant's classification as a financial holding company, the company must also adjust its capitalization. A measure to mitigate credit risks.
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More and more Chinese state-owned enterprises are unable to repay their loans. But the state no longer wants to protect them – and is criticizing its rating agencies.
By Frank Sieren
