The messy naval skirmish between a U.S. surveillance ship and a squad of Chinese patrol boats in the South China Sea was just the first round fired in a dramatic and even historic week. Even more important was the seemingly casual comment by Premier Wen Jiabao after a lengthy session with the National People’s Congress [...]

China Takes the Lead on Economic Stimulus The world waited with bated breath on Thursday for a beefed-up China stimulus that did not come. Is that cause for disappointment? Not at all. We believe it is cause for a sense of relief and a renewed confidence in China’s economic stimulus policies. It is becoming more [...]

CHINA TAKES ADVANTAGE OF THE CRISIS China has done it again. As I pointed out in the last edition of the China Stock Digest, Machiavelli once advised, “Never waste the opportunities offered by a good crisis.” China appears to be taking the words of the 15th Century Italian thinker very literally indeed. Being cash-rich, China [...]

If there’s one thing America has long been famous for, it is our longstanding love affair with cars. Ask anyone who currently has the biggest automobile market in the world and the answer would just have to be the United States. But as of now, that answer is dead wrong. Only two years ago, China’s [...]

The Shanghai Composite Index has been gaining for five-and-a-half months while every other indicator in the world has been slumping. Currently the SCI (Shanghai Composite Index) is at a new high, continuing a dramatic climb that began with the announcement of China’s trillion yuan ($586 billion) stimulus program.