Business
As IMF $56 Billion Argentina Debt Nears Default, China’s $17 Billion Loans at Risk
News Analysis
With the IMF’s $56 billion loan issued to Argentina less than a year ago nearing default, China’s $17 billion to Argentina and $140 billion total debt to Latin America is at risk.
A team of International Monetary Fund bankers arrived in Buenos Aires on Aug. 25, with Argentina’s inflation rate at 54.4 percent; the prime interest rate at 75 percent; and Wall Street traders betting there is a 47.3 percent probability of a sovereign default.
Argentina is blessed with tremendous natural resources and abundant water wealth, but the nation of 44 million has suffered through a series of inflationary crises and sovereign debt defaults that finally resulted in the IMF cutting off further bailouts in 2001.
China has dramatically increased its engagement with Latin America and the Caribbean since 2002. At the end of 2018, China Development Bank and China Export-Import were the area’s largest lenders with $140 billion outstanding, led Venezuela: $67.2 billion; Brazil: $28.9 billion; Ecuador $18.4 billion and Argentina: $16.9 billion.
During the same period, China-Latin America trade increased from $17 billion in 2002 to almost $306 billion in 2018. Chinese leader Xi Jinping set a goal in 2015 of increasing total China-Latin American trade to $500 billion in 10 years. With $200 billion in foreign direct investment, China’s 2018 imports equaled $158 billion and exports equaled $148 billion.
But U.S. Secretary of State Michael Pompeo, while touring Latin America last fall, told reporters that under China’s “One Belt, One Road” (OBOR, also known as Belt and Road) initiative, “When China comes calling it’s not always to the good of your citizens.” He warned, “When they show up with deals that seem to be too good to be true it’s often the case that they, in fact, are.”
The comments drew a quick response from the state-run China Daily newspaper that called Pompeo’s comments “ignorant and malicious” for pointing “an accusing finger at Chinese state-owned enterprises for not being transparent and market-driven, alleging that they are…
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
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- Wegovy: The Popular Weight-Loss Drug Now Available in China
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