What do people really want to measure through FDI? That’s what makes the comparison very difficult. It becomes important to choose the most appropriate definition of FDI.
The election of Trump is a good news for China. In this weekly podcast, Geraci talked about two reasons: Firstly, although Trump said in his speech that he will raise the tariffs, but it is mainly for those companies who outsource to China or other countires. Trump will keep his promises but it will not hurt relationship with China. Secondly, Trump has pledged to build infrustructure that ‘second to none’. To be second to none means to be second to China. China will benefit a lot because China is the only country in the world that can really help the United State to build its infrustructure.
Geraci minimises the effect of RMB entering the SDR basket. In this weekly podcast, he points out the that total value of SDR is only around US$ 300bn and that the basket itself has never been used, except in rare occasion. The inclusion of the RMB in the SDR basker is only a face-saving exercices, dear to the Chinese, but of very little practical importance in the grand scheme of international finance