Chinese and U.S. Economy Is In A Tumultuous Time | The prospect of Fed-fund rate hikes and China’s Covid lockdown in major cities has contributed to the recent depreciation of the Chinese yuan. In the meantime, foreign investors pulled out of China at a record speed last month. China's central bank responded by lowering the foreign exchange reserve requirement ratio (RRR), but some are still concerned about if the country could meet its 5.5% growth target. On the other hand, people are worried that the expected increase in the Fed interest rates is insufficient to bring the U.S. economy back on track.
President Xi Calls For “All-Out” Infrastructure Plan | In the face of the global and domestic tumult, President Xi this week announced a desire for an “all-out” effort to boost infrastructure in China. The country has been emphasizing infrastructure construction in recent years to cope with the trade war and the Covid pandemic. China's investments in infrastructure grew 8.5% in the first three months of 2022.
Russia Warns of Nuclear Conflict | Russia’s Foreign Minister warned this week that if the West continues to supply weapons to Ukraine, the risk of a nuclear conflict “should not be underestimated.” China, as usual, urged all parties to stay calm and seek solutions through peaceful means. However, after a series of explosions took place in Transnistria, Moldova, some people fear that the war may spread beyond Ukraine.
