Today’s business news headlines include China’s economic woes and military exercises around Taiwan. The East India Company’s story is also a common theme.
China’s military exercises around Taiwan
The Chinese military has conducted a series of exercises around Taiwan, putting the entire region on edge. Some of the more interesting parts of these drills involved missiles, naval blockades, and air resupply logistics. However, the real impact of the drills is far less obvious.
China claims that its drills are necessary to protect the country’s sovereignty. But some observers say that the country is being more ambitious than it has in the past. Its latest exercises could be its largest in decades.
In recent weeks, Beijing has carried out military drills spanning several days. They have been the subject of criticism from both sides, with the Taiwanese government deeming them an act of defiance.
The drills involved an assortment of weapons and vehicles, from fighter jets to ballistic missiles. The Chinese also simulated an armada of ships circling Taiwan, in what analysts say is a rehearsal for a potential naval blockade.
The Chinese have chosen six areas for their exercises, including some that overlap with Taiwan’s territorial seas. These zones include the narrowest part of the Taiwan Strait, a large portion of the South China Sea, and a zone that includes southern Taiwan.
The East India Company’s story is echoed in today’s business news headlines
A little more than a century ago, the East India Company (EIC) was the world’s first multinational corporation. It ruled nearly all of the Indian subcontinent, and it was the model for joint-stock corporations.
The East India Company was a privately owned corporation that grew in size and power over time. Its monopoly on trade had reached its apex in the 18th century.
The EIC seized control of Bengal in 1757. It had an army of over three thousand men and it used them to fight off insurgents. In return, the EIC gained taxation powers in Bengal.
The company became so powerful that it was able to create an elaborate civil service and a vast administration.
However, the company was also plagued by corruption. It illegally smuggled opium into China and transported enslaved people to the subcontinent.
In fact, the East India Company’s story has never been more relevant than it is now. Today, we hear of Walmart, ExxonMobil, and Shell.
China’s economic woes are echoed in today’s business news headlines
China’s economy is struggling, as echoed in today’s business news headlines. The Chinese yuan has slumped to a 14-year low, and growth has been slowing at the start of this year. Some economists say the Chinese economy could be on track for the worst year in decades.
One of the major factors behind the economic woes is the crackdown on property debt. This has led to a decline in construction commodities, and reduced the demand for housing. It also fuels fears about the systemic risks associated with China’s financial sector.
. And the unemployment rate has risen to one in five in urban areas.
Xi Jinping will likely take a third five-year term as general secretary of the Communist Party. But with growing social discontent and a lagging innovation cycle, he has to find a way to fix the country’s economic model.
Beijing has announced a $1 trillion plan to boost the country’s real estate market and infrastructure. However, the yuan remains weak, making it hard for the central bank to pump money into the economy.