China’s financial regulator has vowed to step in and save the Chinese banking system if and when the bubble bursts to avert a full-blown financial crisis.
“We have too much debt in our system,” Fang said. “If something bad happens, we have learned from the US financial crisis, and we will move very swiftly to contain the risk so that panic caused by a small institution does not spread.”
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
This amounts to “a blanket guarantee that no major institution will be allowed to fail”, says Ambrose Evans-Pritchard in The Daily Telegraph, even if this means paying a price in terms of lost economic growth and dynamism.
Fang also hit out at the US, accusing President Donald Trump of boasting about each new record on Wall Street while continuing to denounce regulators, suggesting this could lead to another bubble, with huge implications for the global economy.
This is the latest round of a war of words between China and the US after Trump decided to impose 30% tariffs on US imports of solar panels and washing machines.
The new measures, denounced by Beijing as “an abuse” which will “aggravate the global trade environment”, are Trump’s first significant trade actions of 2018 and a demonstration of his “America First” agenda.
CNN Money says “trade issues are set to put a heavy strain on relations between the world’s two largest economies this year”. With Trump expected to make big decisions on possible tariffs in other areas in the coming months, Beijing urged his administration to tread carefully.
-
Groypers: the alt-right group pulled into the foregroundThe Explainer The network is led by alt-right activist Nick Fuentes
-
10 concert tours to see this upcoming fallThe Week Recommends Concert tour season isn't over. Check out these headliners.
-
How to put student loan payments on pauseThe Explainer If you are starting to worry about missing payments, deferment and forbearance can help
-
China is silently expanding its influence in American citiesUnder the Radar New York City and San Francisco, among others, have reportedly been targeted
-
How China uses 'dark fleets' to circumvent trade sanctionsThe Explainer The fleets are used to smuggle goods like oil and fish
-
US and EU reach trade dealSpeed Read Trump's meeting with European Commission President Ursula von der Leyen resulted in a tariff agreement that will avert a transatlantic trade war
-
US and Japan strike trade dealSpeed Read Trump signed what he's calling the 'largest deal ever made'
-
One year after mass protests, why are Kenyans taking to the streets again?today's big question More than 60 protesters died during demonstrations in 2024
-
What happens if tensions between India and Pakistan boil over?TODAY'S BIG QUESTION As the two nuclear-armed neighbors rattle their sabers in the wake of a terrorist attack on the contested Kashmir region, experts worry that the worst might be yet to come
-
Why Russia removed the Taliban's terrorist designationThe Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
-
Inside the Israel-Turkey geopolitical dance across SyriaTHE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
