The RMB is now officially part of the SDR basket. Until couple of years ago, many people in China, including finance experts, had never heard of SDR. The big question is now, “What is the direction of causality between RMB Internationalisation and importance of SDR”. In other words, will the accession to SDR push for more reforms so that RMB internationalization may progress faster? Or, could it be that, since even the RMB is in the basket, the importance of the SDR will be declining, from already pretty much insignificant levels? Geraci was guest on CCTV Dialogue to discuss with issues, together with Xiang Songzuo.
Michele Geraci was invited to participate in China Global Enterprises Forum, which was hosted mainly by Ningbo Government and Center for China and Globalization (CCG). He discussed the role of finance in contributing to China’s sustainable growth. He said: “Finance is like a tiger: once it is out of the cage, it cannot be tamed again. For China: Reforms should slow down. China is good at manufactory and that why I am shoot about made in china 2025.”
Hangzhou is following Xiamen and Suzhou’ policy on restriction of non-local residents purchasing houses. Non-local residnets is becoming the main force of house purchasing since 2016. After G20, the oursiders purchase rate accounts for 39.3%, and among them, 25.4% purchase two houses.
Economist claims that in a short period, purchasing house is contributing to decrease inventory policy, but in a long period, it will drive up house price. Surrounding cities’ house price may also increase because of Hangzhou’s policy.
Geraci was a guest for Al Jazeera TV to discuss Mao’s legacy in today’s China. He thinks today’s China is totally different from China in 1950. China is today 70% capitalist and 30% socialist. He divides Chinese people into two groups. The older people and the younger people. The people who are older have benefits from the last thirty year’s economic reform. They do have memory, but they don’t think much about Mao. The people who are younger have never suffered as they parents and grandparents did, so they are also not very interested in knowing what happing in the past. He divides Chinese people into two groups. The older people and the younger people. The people who are older have benefits from the last thirty year’s economic reform. They do have memory, but they don’t think much about Mao. The people who are younger have never suffered as they parents and grandparents did, so they are also not very interested in knowing what happing in the past.
The relationship between India and China is very sensitive. G20 will provide a platform for Xi and Modi to discuss about current issues. Contradiction between China and India is prominent. India worried about the cooperation between China and Pakistan, which is threatening the Kashmir controversy in India and Pakistan. China is concerned about military increasing cooperation between India and America. But China and India still have lots of common purposes in G20 in coping with structural reform, climate change, and anti-terrorism. G20 is still a great opportunity for two countries to discuss discrepancies.
Geraci was interviewed by Agi China 24 Radio. He said the city of Hangzhou was undergoing a major infrastructure work during the G20. It has penalized the citizens in the short terms with many factories and retail shops being closed, sometimes with very little compensation for the owners. This is the negative impact in the short term. But in the long term, the infrastructure of the city has been improved. The citizens could start to enjoy better connectivity and better underground lines. The area around the west lake also has been further embellished. So overall, the G20 brought the city of Hangzhou short term pains but long term gains. Click to listen the full Radio (Italian).