Weekly Roundup: Moving Energy Efficiency Forward, RMB Moves In Proportion to Domestic Export, Blackstone’s Next China Plays

Tuesday, August 12, 2008 5:11
Posted in category The Big Picture
Comments Off on Weekly Roundup: Moving Energy Efficiency Forward, RMB Moves In Proportion to Domestic Export, Blackstone’s Next China Plays

With so much going on in China, and only a limited amount of bandwidth, I have created this weekly post to highlight articles that I feel are (1) important, (2) relevant, and (3) interesting.

This week there are 3 articles that I have chosen to highlight as each are quite interesting, they are all relevant, and there are issues within each that I think you the reader should be aware of.

If you have an article that you feel needs to be mentioned, please do so in the comments section.

Moving Energy Efficiency Forward

China’s problem with energy shortages have been a very public issue, and that is typically at that stage that changes are made.  As this is evident in the number of articles and announcements being made – Govt considers coal sector restructuring, China sets new rules in bid to cut energy use, Environment and energy exchanges launched, China’s Changsha city plans local emissions trading, and so on

Domestic Exports and the Impact on the RMB

Brad Setser at CFR has written Value-added in China’s export sector and China’s exposure to a global slump that analyzes the post How much of Chinese exports is really made in China?  on the “Chinese value-added” of China’s exports… and if that confused you, then you are really going to be confused by both posts.  In essence, the core work states that 50% of all goods exported are coming from pure domestic firms, and that because of that, the RMB appreciate should not impact the trade surplus to the same degree that it would impact other economies.  Brad disagrees…  I find myself confused in the definitions, but think that it is pretty clear that the RMB shift has impacted across ownership structure and sector.  there are of course other things that are in a cumulative manner impacting exporters, and where I think the base arguement may pencil out in theory… it leaves out the very important fact that China’s export numbers and scale are larger than nearly every other country.. so

Blackstone’s Upcoming China Plays

Blackstone have recently made two big announcements that I thought would be of interest.  The first, following my post on Haier’s bid to purchase GE’s C&I unit, is a Shanghai daily article that  Blackstone and Haier plan to bid for GE unit. The second is Blackstone moves into clean energy, China.

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