All of this happened in China this week. A thread 🧵1/10
Yellen Visit. US Treasury Secretary Yellen implored Beijing’s top leaders to fundamentally rethink their economic growth strategy during a trip to China. She threatened sanctions for Chinese banks that aid Russia's war in Ukraine. 2/10 bloomberg.com/news/articles/…
Trilateral Allies. Biden vowed to back Japan and the Philippines in a bid to reassure allies worried about increasingly assertive Chinese actions in disputed waters. The US leader and Kishida condemned China’s “dangerous” actions in Asia. 3/10 bloomberg.com/news/articles/…
More Debt. Fitch Rating cut China's outlook to negative from stable on increasing risks to the nation's public finances. The government is likely to pile on debt as it seeks to pull the economy out of a real estate-driven slowdown, Fitch said. 4/10 bloomberg.com/news/articles/…
Family Ties. Xi hosted ex-Taiwan leader Ma Ying-jeou in Beijing for a landmark meeting seemingly designed to spotlight the Communist Party’s willingness to talk to the island’s opposition. Xi said outsiders can’t stop ‘reunion of family and country.’ 5/10 bloomberg.com/news/articles/…
Realignment. The US has once again become the largest destination for Taiwan's exports for the first time since 2003 and knocking China off the top spot. The island’s shipments to America rose 65.7% year-on-year in March to $9.1 billion. 6/10 bloomberg.com/news/articles/…
Liquidity Woes. A cash crunch at state-backed builder Vanke is prompting worries over default despite support from authorities. Vanke's shares and bonds fell as S&P cut its rating to junk and the developer confirmed a probe into a regional manager. 7/10 bloomberg.com/news/articles/…
Liquidation Demands. Defaulted Chinese developer Shimao is facing a demand to liquidate from creditor China Construction Bank (Asia). It's a prominent example of a state-backed bank trying to claw back money from a distressed developer. 8/10 bloomberg.com/news/articles/…
Trade Friction. Biden has added 319 Chinese companies and individuals to an export blacklist -- more than any other US administration. That compares to the 306 entities added during Donald Trump’s time in the White House. 9/10 bloomberg.com/news/articles/…