On the eve of Donald Trump and Xi Jinping's meeting at the G20 summit, not much appears to be left of the honeymoon atmosphere generated during the two leaders' summit at Trump's Mar-a-Lago resort in April.
Germany and China should use the G20 summit in Hamburg to advance the global climate policy agenda. This was the message of a Chinese-German conference, whose participants discussed how to keep up the international momentum after US President Donald Trump had announced his country’s withdrawal from the Paris Agreement.
Expectations were unusually high for this year’s EU-China Summit. After US President Donald Trump had alienated European leaders at the G7 meeting in Italy, Germany’s Chancellor Angela Merkel had called on Europeans to ‘take our fate into our own hands.’ Her statement was widely interpreted as signaling a strategic realignment.
Building a model city has a long tradition among China’s reform-era leaders. Shenzhen’s rise from fishing village to manufacturing powerhouse is forever connected with the name Deng Xiaoping. Jiang Zemin tied his legacy to the development of Shanghai’s Pudong District into China’s leading financial center. Now Xi Jinping aims to connect his name with Xiongan, a sustainable and smartly planned parallel city right next to Beijing.
Under its new chairman Guo Shuqing, the China Banking Regulatory Commission (CRBC) has rolled out a series of measures to slow down the rapid rise of China’s shadow banking assets. The concern is that these unregulated assets could trigger a financial panic. But a sudden reduction in shadow banking assets could actually cause, rather than prevent, a financial panic and it could also trigger a substantial reduction of growth.
Do economic sanctions cause governments to change their political behavior or even lead to regime change? This has been a controversial topic of discussion among economists and political scientists for decades. Examples from the recent past have added new fuel to this debate. In the case of Iran, many in the West are of the opinion that the oil embargo and the subsequent enforcement of import and export restrictions led Tehran to negotiate its nuclear program. The sanctions against Russia, Syria and North Korea, however, are considered to be ineffective.