Good article. Brooke Masters asks: "Doesn’t anyone do due diligence any more? The boring process of checking that potential investments can live up to their promises has fallen completely by the wayside."
India wants to compete with China in offering development finance: "Lending through India’s development partnership administration, by which it offers other governments lines of credit, has nearly tripled in value since Modi came to office in 2014."
A new report by the China Africa Research Initiative at the Johns Hopkins University seems to confirm what some of us have been saying for a long time: the China "debt trap" narrative never made as much sense as its proponents claimed.

via @SCMPNews
Chinese banks have now extended over RMB 2.2 trillion (1.8% of GDP) of credit to property developers. With sales way down and a re-opening of credit and equity financing, it will be interesting to see how property developers respond to this lifeline.
South Korea’s exports to China plunge in November. This doesn't bode well for overall Chinese imports. The November trade data next Wednesday will probably show another large Chinese trade surplus driven by weak domestic demand.

via @SCMPNews
I just finished reading "House of Debt" by @AtifRMian and @profsufi. It's an important book and helps reinforce the framework that @M_C_Klein and I used six years later for "Trade Wars are Class Wars".
We've been hearing this a lot lately, but it may just be wishful thinking. Analysts are arguing that people seeking to increase the relatively low amount of residential floor space they have will help stabilize property prices and demand in China.
I'm glad to see that @Brad_Setser is reviving "Follow the Money". In his first post he notes that "Many analysts hypothesize that trade will be balkanized as democracies trade with fellow democracies and autocracies trade with other autocracies."
Quote of @michaelxpettis
My WeChat timeline is filled with praise and nostalgia for Jiang Zemin. Most of my friends never thought much of him, if they thought of him at all, and so all this nostalgia probably tells us more about the present than about the past.
This new paper by Tabitha M. Benney and Benjamin J. Cohen in the latest issue of the Review of Keynesian Economics argues that there has been no meaningful change in the past decade in the status of USD as the dominant global currency.
This to me is the important point in this Caixin article: "These measures won’t fundamentally solve the property market’s problems, but will rather encourage the 'better' developers to buy property assets and help complete unfinished projects."
Quote of @JiangJiang43
Interesting thread.
Just in: Zhejiang Publicity, the WeChat account of the Publicity Department of the Party’s Zhejiang Provincial Committee, published an article on #China's #covid control titled "'People first' is not 'Covid control first'" “人民至上”不是“防疫至上”. A thread on its highlights:
Quote of @paulhaenle
Good summary by Paul Haenle of the difficult choices facing Beijing.
1/ No doubt Xi's challenges w/ Covid are daunting. But to me his problem starts with where he wants this to end. At the end of the day, when covid is behind us, Xi wants to say the CCP handled it better than any political system in the world (esp US/Western-led democracies).
Quote of @Brad_Setser
Good thread by Brad Setser of the importance of China's incredibly high trade surplus as a mechanism for resolving domestic demand imbalances. The irony of course is that policies that keep the surplus growing (including a weak currency and..
Quote of @RobinBrooksIIF
There are all sorts of reasons why China's yuan is under pressure to depreciate right now - notably, China's domestic economic troubles and the difficulties created by zero COVID.

But Robin is absolutely right to note the scale of China's trade surplus. It really is massive

China's trade surplus with the rest of the world is off the charts. To see just how massive the surplus has gotten, you need to filter out oil (red) & iron ore (pink) imports, since those are up so much post-COVID. When you take those out, the "true" surplus is massive (blue)...
Quote of @izading
Great essay, which you can find here:
If you can read only one thing to make sense of the protests in #China, read “Now Out of Never” by Timur Kuran. It’s one of those studies that cannot be summarized in a thread, so I won’t attempt it. Just go read it in its entirety, it’s worth it. I have a few reflections 1/7🧵
Quote of @chen_long
I am a big fan of Chen Long's work.
My thoughts on Covid policy
The 0.8% annual growth "of the past decade contrasted not only with the 5.9 per cent annual growth of the 1970s but also the 2 per cent achieved in the 1980s, a turbulent decade for Latin America characterised by a wave of debt crises."

Breaking news

From historical arguments to poems on cryptocurrency, users took to Twitter to speculated on its ability to replace everything from playwrights to college essays |  Link
Cooling inflation and Powell’s talk of moderation sent stocks soaring. But a hot jobs report means rate hikes are still in the cards, and it’s not time to celebrate yet. |  Link
"This is about the outrageous behavior of an individual," Sen. Pat Toomey says on the FTX fallout. |  Link
Whether it’s flaming eggplant or liquid nitrogen gelato, 21st-century NYC diners are getting wowed by old-school tableside carts |  Link
Russian tourists are once again traveling in large numbers to Thailand and using credit cards issued outside of Russia |  Link
Layoffs hit white-collar workers, hinting at a ‘Patagonia vest recession’ |  Link
CFTC Chair calls for authority to prevent the next FTX by @Jenniferisms and @DsHollers Link
A crypto party in India is showing signs of trouble amid a wider market meltdown. Lax regulations heighten the risks, experts say. |  Link
Your boss denied your promotion request. Here's a CEO's simple advice for what to do next. (via @CNBCMakeIt) |  Link
Larry Summers says the Fed will need to raise rates more than expected, and warns the economy could slide suddenly like an "avalanche" |  Link
A Beverly Hills cop was California’s highest-paid municipal worker last year, earning $716,000 |  Link
The U.S. added a more-than-expected 263,000 jobs in November despite announcements of thousands of job cuts by technology companies, including Twitter, Amazon and Meta. Read more |  Link
“Oil is pinched in that sort of demand-supply equation right now,” @mdbaccardax says. More: |  Link
Companies that thrived during a period of rising prices may find it harder to boost prices and protect margins as inflations continues to slow. That could mean trouble. |  Link
4 of the top 10 best college towns in the U.S. are in Florida—see where else made the list (via @CNBCMakeIt) |  Link
Here's how a 26-year-old brings in up to $19K a month throwing parties: (via @CNBCMakeIt) |  Link
Tax "refunds may be smaller in 2023," warns the IRS. Here's why. |  Link
News shared on social media and by word-of-mouth moved faster than China’s censors, but the government is quickly making sure it keeps the upper hand |  Link
Home builders and suppliers have been hammered by rising mortgage rates. But there’s long-term value in the stocks, and interest rates won’t stay up forever. |  Link
McDonald's is taking a giant leap into the future with this new restaurant concept |  Link
Am I diversified? Jim Cramer makes the call |  Link
Winners of the second annual Earthshot Prize will each receive $1.2 million to help address environmental — and human — woes |  Link
LedgerX, one of the few solvent pieces of Sam Bankman-Fried’s crumbled FTX empire, is up for sale |  Link
Parents of successful kids don't worry about screen time, one expert says — they teach these 3 skills instead. (via @CNBCMakeIt) |  Link
Donald Trump “explicitly sanctioned tax fraud” by executives at two of the Trump Organization’s business units, a New York prosecutor told the jury in the companies’ criminal tax fraud trial |  Link
Cramer's lightning round: Let Extreme Networks cool off a little before buying |  Link
If you're taking part in the annual Medicare open enrollment period, here's how you can avoid being scammed. |  Link
Jim Cramer gives his take on Sunrun |  Link
Jim Cramer says he expects many more layoffs coming |  Link
WATCH: Drugmaker Pfizer is investing more than $2.5 billion in Europe, gearing up to launch new products it hopes can replace lost revenue as patents expire and vaccine sales decline |  Link
Heard on the Street: Jobs report reminds investors that Silicon Valley isn’t the whole economy |  Link
In an exclusive interview, San Francisco District Attorney Brooke Jenkins has a message about the “lawlessness” she says she inherited in her city: “All crime in San Francisco is illegal again” |  Link
Jim Cramer says these 3 apparel stocks benefit from the return to office |  Link
U.S. says Swiss engineering group ABB to pay over $315 million to resolve bribery case |  Link
U.S. Fed proposes plan for banks to manage climate-linked financial risk |  Link
“It will likely… prevent a rail strike and make such industrial activities illegal,” @mdbaccardax says about the new rail strike bill. “That’s a really big move for a president who has championed the labor movement for virtually the whole of his career.” |  Link
U.S. Treasury says oil price cap 'institutionalizing' Russian crude discounts |  Link
Flu hospitalizations nearly doubled over the last week, and admission rates have reached the highest level in more than a decade via @CityLab Link
New York Attorney General Letitia James’s longtime chief of staff and one of her most-trusted advisers resigned after being investigated for workplace misconduct via @CityLab Link
Of the 2,481 wines our columnist tasted this year, these 50 are the absolute best value |  Link
How Google's Waze has changed from its early days as car travel is remade |  Link
Adidas, one of FIFA's seven global partners, will still be represented in the tournament by Spain, Argentina and Japan after four of its seven sponsored teams exited the #FIFAWorldCup Link
Swiss industrial company ABB agrees to pay $315 million to resolve a multinational investigation into the bribery of a high-ranking official at South Africa's state-owned power utility Eskom |  Link
Germany has become a no-fly zone for discount airlines like Ryanair and EasyJet |  Link
Biden administration officials are trying to reassure oil market participants that the newly agreed $60 price cap on Russian crude won’t trigger supply disruptions and price volatility after it kicks in Monday |  Link
Here are seven major companies whose stocks moved on the week’s news, including CSX, AMC and Salesforce |  Link
Jim Cramer says these 3 apparel stocks benefit from return to office |  Link
What does it mean for a disease to become endemic? Watch the full video here: |  Link
The Biden Administration this week hosted French President Emmanuel Macron for an elaborate state dinner, with the menu headed by pricey, Maine-caught lobsters – drawing bipartisan criticism for the opulent optics.
Why Silicon Valley is so hot on nuclear energy and what it means for the industry |  Link
Bloomberg went to the Bahamas to spend 11 hours with the most famous man in crypto. This is what he had to say: Here’s your Evening Briefing |  Link
Darjeeling tea price tumbles after India leaf-blending quarrel |  Link
GM venture to invest additional $275M at Tennessee plant |  Link
The battle to control the iconic 4.2-mile stretch of road continues. |  Link
Microsoft is ready to fight for its $69 billion acquisition of gaming company Activision if the FTC files a lawsuit seeking to block the deal |  Link
The unemployment rate might have to rise to 4.5%—and stay there a while—before the Fed declares victory in cooling inflation. |  Link
Former FBI agent of 21 years: These are the 8 biggest "warning signs" that reveal a dishonest person. (via @CNBCMakeIt) |  Link
Goodbye savings, hello debt. Americans tap into credit to pay for goods this holiday season. @KristinaParts reports. |  Link
Magnetar Capital cut its stake in iRobot, a maker of automated cleaning devices. RA Capital disclosed a large stake in drug firm Acrivon Therapeutics. |  Link
Billionaire Warren Buffett: This is the "one easy way" to increase your worth by "at least" 50 percent. (via @CNBCMakeIt) |  Link
The Federal Reserve’s new regulatory chief on Thursday signaled plans to beef up big-bank capital requirements, potentially revisiting financial rules that were eased during the Trump administration |  Link
Never before have so many people had to take so much responsibility for their own long-term finances. Here's how to start planning |  Link
Readers weigh in on quantum computing, Walt Disney, climate change, business development companies, estate planning, and sequence-of-return risk. |  Link
Cramer’s week ahead: Markets need a strong job market, tame inflation to stay up |  Link
Former FTX US head is raising money for crypto startup via @business Link
The lawyer who represented Bernie Madoff has some advice for Sam Bankman-Fried: shut up |  Link
A Harvard nutritionist shares the No. 1 vitamin that keeps her brain "young and healthy"—and foods she eats "every day." (via @CNBCMakeIt) |  Link
U.S. judge dismisses indictment against Huawei CFO that strained U.S.-China relations |  Link
Cloud stocks were supposed to be immune from the slowdown. It hasn’t turned out that way. |  Link
US joins EU and G7 to cap Russian oil prices at $60/barrel by @Jenniferisms Link
“The month of December… in terms of performance… it’s generally the best month of the year,” @mdbaccardax says about the potential Santa Claus rally. “The missing component into all of these discussions is where we’re headed on corporate earnings." |  Link
Over 100,000 creditors want their money back from BlockFi, the crypto lender filed for bankruptcy this week, and HSBC is getting $10 billion for selling its Canadian business to Royal Bank of Canada. Here's our weekly roundup of top business and finance stories from this week
Mutual fund manager T. Rowe Price has had a rough time of late, hurt by the decline in growth stocks. The negativity among analysts could be overdone. |  Link
Is your partner a gaslighter? Here are 3 red flags to watch out for. 🚩 (via @CNBCMakeIt) |  Link
Duolingo's addictive language lessons turned the free app into a pandemic hit. Now a public company, it needs to figure out how to make money without infuriating its fierce fanbase |  Link
WATCH: From a day of reckoning for Credit Suisse to hopes for a ‘Santa rally’ on stock markets, these are the stories to watch out for in business and finance |  Link
The Covid pandemic introduced the world to Zoom calls and forever changed how we work. Now a handful of startups are racing to build fully fleshed out virtual offices |  Link
Solar stocks rallied Friday after the US ruled that some foreign manufacturers are evading tariffs in a decision that wasn’t quite as harsh as investors feared |  Link
Why does blood make up over 2.5% of all U.S. exports? Watch the video to learn how the economy of blood works and why blood plasma is so valuable. |  Link
Worker discontent is breaking out across South Korea, threatening to undermine the country’s already faltering economy and presenting yet another challenge to President Yoon Suk Yeol |  Link