Tag Archives: policy

Warm Chinese Real Estate Markets Up

The markets of Chinese real estate experienced a long frozen period during the past two years. “China’s new home prices fell significantly in December for a fourth straight month even as year-end sales volumes surged – a somber omen for fourth-quarter 2014 economic growth data due out later in the week.”(http://www.wsj.com/articles/china-month-on-month-december-housing-prices-fall-at-slower-pace-1421548940)The government tried to cool down the markets of real estate to avoid the bubble when China was in a rapid growth progress. The pressure from the huge amount of people with low income was another pressure the Chinese government faced. Many people in China, especially in big cities, including Beijing, ShangHai, and GuangZhou, cannot afford the high price of the house. To be honest, Chinese government presented an effective execution ability. The price and the numbers of the trade were slumped impressively.

However, should this trend be kept? Here is a question mark for this issue as for my consideration. As for us known, China has slowed its pace of development in these years. From various perspectives, like manufacture, service, and industry, China decreased its paces for a sustainable and a long-term goal. But what China really want to see is not sluggish economy and diffident 1.4 billions of people. It means China should be on the track of success but not totally stop its step.

For these consideration, there should be no wonder that we see a slower pace of the falling price of the Chinese real estate. Without any doubt, China made a great achievement by expanding the exports in the past years. As for the biggest exporting country currently, China’s development relies on trade heavily. Nevertheless, no one can ignore the real estate markets for a 1.4 billions of people country. Moreover, house is definitely an essential part for Chinese. People even say “no way to get a wife if you do not have a house” in China nowadays. The real estate also played an important role for Chinese economy. “Policymakers, who are concerned about the slowdown China’s economy, have been injecting liquidity into the market through piecemeal and targeted measures in recent months. Supporting the property market is also on their radar, as the real-estate market is estimated to account for nearly one-quarter of gross domestic product when construction, along with related industries such as furniture and raw building materials, are factored in.”(http://www.cnbc.com/id/102347827#.)Chinese government and Chinese people will not be willing to see a depressed real estate markets for a long time. Therefore, it is a right decision to take some actions to incite the markets to warm up the real estate markets a little bit for China.

Cuba: Economic Progress or Pandora’s Box?

There is no doubt that the American public is in favor of President Obama’s planned restoration of diplomatic relations with Cuba. According to Reid J. Epstein’s article for the Wall Street Journal titled, “Majority of Americans Back Obama on Cuba, Immigration — WSJ/NBC Poll,” as many as 60% of those who were polled reported approval of the President’s plan to rebuild relations with Cuba (http://blogs.wsj.com/washwire/2015/01/20/majority-of-americans-back-obama-on-cuba-immigration-wsjnbc-poll/?KEYWORDS=cuba). This approval extends throughout regional, age, and racial demographics.

According to The National Security Council’s article by Bernadette Meehan titled “What They’re Saying: How a New Course on Cuba Can Help American Agriculture and Trade,” “By empowering the Cuban people to gain greater economic independence, these steps will promote commercial diplomacy and create economic opportunities for hardworking Americans here at home” (http://www.whitehouse.gov/blog/2014/12/19/what-theyre-saying-how-new-course-cuba-can-help-american-agriculture-and-trade). The article continues to list a number of headlines ran in varying states with specific reasons constituents should favor this diplomacy. Reasons listed include increased exports to Cuba from Alabama, Arkansas, Florida, Iowa, Illinois, Louisiana, Minnesota, Missouri, Mississippi, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, and Texas.

According to David Adams’ article for Reuters entitled “Cubans look fondly to U.S. as talks to resume relations start,” Cubans, including those as high up as Council of State members for the Cuban Communist Party, admire North American culture (http://www.reuters.com/article/2015/01/21/us-cuba-usa-mood-idUSKBN0KU1ZX20150121). Cubans are also looking forward to the end of the U.S. trade embargo that has “caused well over $100 billion in damages over the decades.”

It is clear that Cuba will benefit more and feels more desperation regarding this restoration of diplomacy. Cubans are living in the past, in the dark, and in economic isolation. The lifting of the U.S. trade embargo gives the Cuban economy the chance to get back on track with the rest of the world’s economies. But when, as Adams puts it, Castro has made his intent clear “to preserve one-party rule and keep a lid on political dissent,” how will this change take effect? The Council of State member previously mentioned, a poet and anthropologist named Miguel Barnet explains that Cuba’s identity has been formed by definition as one that values independence over all. Will the United States be able to maintain diplomatic trade relations with a country whose political ideologies we inherently disapprove of? The United States has a history of sticking its nose in policy and government when we believe we can do it better. In Adams’ article, Barnet urges the United States government to “not try to pressure the country into reforms.” Will this be possible for the Obama administration? Further research should be conducted in this area to determine for sure.