Fool's Mountain: Blogging for China

A recent article in the NY Times with excerpts below, talks about the continued deepening of China’s economic slowdown. When calculated in China’s own currency for a true local effect, the situation is worse than expected even a few short weeks ago. There is recession in the USA, recession in Japan, cancelled orders and lack of re-orders hitting the Chinese businesses dedicated to export markets.

The Chinese government’s plan is to stimulate the local economy and encourage its people to lower their savings rate. But with the lack of a health care plan or retirement programs, people seem to be saving more, not less. What is the best way for China to head off a recession? Should they establish a rudimentary health care plan for their citizens? Or is the money better spent in other areas? Continue reading »

It’s about time!

Per Mark McDonald at the International Herald Tribune: Shortly after dawn Monday, a passenger plane took off from Shenzhen, China, bound for Taiwan. The 80-minute flight across the Taiwan Strait marked the first regular cross-strait traffic since the end of the civil war in 1949 and another dramatic step in the improvement of relations between the two countries.

The Shenzhen Airlines flight from China – along with a later TransAsia Airways flight to Shanghai from Taiwan’s capital, Taipei – inaugurated regular direct flights between Taiwan and mainland China. Direct ship traffic and mail service also began Monday, state media reported.

Xinhua, the official Chinese news agency, reported that the flight from Shenzhen took off at 7:20 a.m. The TransAsia flight from Taipei left 46 minutes later. A total of 16 direct passenger flights were scheduled Monday. Continue reading »