In the upcoming G20 Summit, taking place in the eastern Chinese city of Hangzhou, the United States is expected to advise China to listen to its citizens’ and boost economic growth. China hopes to leave the event with a status as a growing leader of the global economy; however, there are fears by the Chinese that Western arguments over territorial disputes and trade protectionism will overshadow the summit. China is, unfortunately, not off to a good start. One Chinese security official scolded a U.S. national security advisor as she tried to walk to the motorcade, potentially mistaking her for a journalist crossing the press barrier.
In the meantime, China remains with its under-the-radar economic reforms. As the investment bank, Jeffries, put it, the People’s Bank of China (PBoC) has been engaging in “back-door quantitative easing” by expanding lending facilities and injecting liquidity into its banking sector. The Big Four state-owned commercial banks are being incorporated into the government’s debt-to-equity arrangement. They are also in the works of putting together a program that allows industrial companies to convert debt to equity.
By Zouhare Al-Baroudi