John's Feed
Jun 28, 2013
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China’s corporate spying is three-cornered problem

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

American prosecutors have targeted Chinese wind turbine maker Sinovel for allegedly stealing secrets from a U.S. rival. The threat of a $4.8 billion fine for a company with total assets of $4.6 billion sounds potent. But it doesn’t address the economic conditions that make China a target for accusations of ideas theft. Call it the corporate espionage triangle.

Jun 26, 2013
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China bank rout favours big lenders over small

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

A pledge of support for cash-strapped lenders should take the fear out of China’s interbank market. After two weeks of spiking rates, the People’s Bank of China (PBOC) said on June 25 it had extended liquidity to some lenders, and would stand ready to help others. Its new stance will most benefit those in least need: China’s big banks.

Jun 25, 2013
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Asia’s pain unevenly spread as China slows

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Asia’s falling markets reflect the belief that a slowdown in China will take its toll on the region. But things aren’t so straightforward. Look at what proportion of the region’s largest economies goes to China, and how important those exports are to domestic GDP. Despite a decade of rapid growth, the world’s second-largest economy has had a smaller impact on its neighbours than might be expected.

Jun 24, 2013
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China’s bonfire of liquidities claims first victim

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

China’s bonfire of the liquidities has claimed its first victim: equities. Stocks in Shanghai and Shenzhen tumbled more than five percent on June 24 after the central bank published a letter suggesting it’s in no rush to help overstretched lenders continue in their bad habits. This tough new approach could mean a little more chaos will be injected into China’s financial system. For the economy overall, it’s both positive and helpful.

Jun 21, 2013
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China credit squeeze challenges “age of ambiguity”

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Silence has been good policy for China. The authorities’ penchant for relying on the unsaid, especially when it comes to financial obligations, has been a useful tool for channeling funding to banks and companies. But recent ructions in the interbank market, where lenders turn for short-term funding, suggest the age of ambiguity may soon have to end.

Jun 19, 2013
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China milk deal leaves small investors whey-faced

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Small shareholders in Chinese companies have a new reason to be whey-faced. Big investors in Hong Kong-listed Yashili have agreed to sell out to Chinese dairy giant Mengniu for HK$3.50 a share – a fifth below the price at which the milk powder maker floated just three years ago.

Jun 14, 2013
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China’s spiking rates create winners and worriers

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China’s biggest banks have thumbed their noses at the government. The Ministry of Finance sold just two-thirds of the 15 billion yuan ($2.5 billion) of bills it offered on June 14, according to Bloomberg. The failed auction is not a vote of no confidence, or a sign that interest rates are too low, but a reflection of reality: banks can get better returns lending to each other.

Jun 10, 2013
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How Huawei can dial down the fear factor

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

How scary is Huawei? The Chinese telecom equipment maker has met resistance from politicians who fear it could be used as a Trojan horse by the Chinese government. Most recently a group of UK parliamentarians complained the group supplied critical infrastructure without ministers’ knowledge; American and Australian politicians have already blocked Huawei from key contracts. The political tribulations will take years to resolve, but there are ways to dial down the fear.

Jun 10, 2013

Breakingviews -How Huawei can dial down the fear factor

(The author is a Reuters Breakingviews columnist. The
opinions expressed are his own)

By John Foley

BEIJING, June 10 (Reuters Breakingviews) – How scary is
Huawei? The Chinese telecom equipment maker has met resistance
from politicians who fear it could be used as a Trojan horse by
the Chinese government. Most recently a group of UK
parliamentarians complained the group supplied critical
infrastructure without ministers’ knowledge; American and
Australian politicians have already blocked Huawei from key
contracts. The political tribulations will take years to
resolve, but there are ways to dial down the fear.

Jun 6, 2013
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Obama and Xi should consider Confucian diplomacy

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

If the emperor fulfils his role by sitting and facing south, Confucius said, all else will fall into place. Presidents Obama and Xi should heed the ancient sage when they meet at a resort in the California desert on June 7. The United States and China have emotive issues to work out. In public, however, harmonious inaction is the best policy.