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China has invested 990 billion yuan ($143.63 billion) for a massive urban redevelopment project in the first seven months of 2018, the housing ministry said on Thursday.
China's central bank has injected hundreds of billions of dollars into such shantytown redevelopment projects (SRP) through the Pledged Supplementary Lending (PSL) programme, which has been largely used for cash compensation to residents whose homes are demolished.
The policy helped boost home sales and prices in smaller cities that struggled for years with a glut of unsold homes, playing a key role in reviving economic growth since 2015.
Led by gains in smaller cities, China's new home prices accelerated at their fastest pace in almost two years in July, defying persistent government curbs.
Turkey’s ambassador to Beijing described China as Ankara’s most important alternative partner in an exclusive interview with Yeni Şafak daily. Turkey and China cemented security ties during a trip in early August by Foreign Minister Mevlüt Çavuşoğlu in which he met with his counterpart Wang Yi.“They claim that China is far away. No, it isn’t. Have you ever heard of the phrase “Far West?” Have you ever heard of the phrase “Far U.S.?” As if we are neighbors with the U.S. Such phrases toy with our perception. China has been labelled as the “Far East.” China is 8.5 hours from Turkey, while the U.S. is 10.5 hours. We are not obliged to trade with spoilt allies. It is our right to seek partners that abide by international trade rules, seek bilateral trade and do not intervene for their own sake. China is our most significant alternative in this sense. It would be our greatest earning to turn toward the Chinese market and open up our economy to the world’s second biggest market,” Emin Önen said.Turkish lira firms against dollar ahead of Albayrak presentationChinese media says US stabbed Turkey in the back“Articles in Chinese media said things like ‘The U.S. stabbed its ally Turkey in the back,’ ‘Can such an ally be trusted?’ and ‘Turkey’s economy plays a very important role in the global economy.’ The U.S. which does such things to Turkey, Iran and Russia could do the same things to other countries. The World Trade Organization (WTO) must take action. This situation is unacceptable for two friendly nations, let alone two allies. They must understand that the U.S. is not our only option for an ally. We prefer a strategic ally over an arrogant one. The period of Turkey being directed by the U.S. is long gone. Turkey is no longer the so-called sick man of Europe, but the man Europe needs,” Önen added.Turkey and the U.S. are currently experiencing rocky relations following Washington’s imposition of sanctions on two government ministers for not releasing American pastor Andrew Brunson, who faces terrorism-related charges in Turkey.Last Friday President Donald Trump ramped up his attack on Turkey by doubling U.S. tariffs on Turkish aluminum and steel imports.Turkey in its turn increased tariffs on several U.S. products, including alcohol, tobacco and cars, according to a new presidential decree published Wednesday in the official gazette.Turkey ‘warding off economic coup bid’Dollar is no longer reliable“The U.S. must first take a step back and look at where it went wrong. Turkey holds an important place not only in the region but also in the world. We have kinship relations with Europe, Balkans, Caucasus, Mediterranean, and Black Sea countries. When we look at all this, it is clear that there is no need to be under U.S. hegemony. A very valuable ally of ours has put us in a tough situation, and is thereby losing. This stance of the U.S. also triggers the distrust of all the countries of the world. It shakes all trade balances. While the U.S. is trying to punish Turkey with this move, it has caused a loss of confidence in the U.S. dollar across world markets. The dollar is no longer a safe currency for trading,” Önen said.Qatar to make direct investment of $15B in TurkeyHas Europe’s axis shifted?“When Turkey bolsters its relations with Russia, Iran, Malaysia, China and Indonesia in addition to Europe, the EU claims that the Turkey axis is shifting. Turkey is a country with strategic and trade importance. If they do not want to lose Turkey, they must open the door to equal partnership. French President Emmanuel Macron arrived in China and signed a $33 billion deal. German Chancellor Angela Merkel has visited China 11 times since she was elected. Britain has declared its relations with China as being in its 'golden age'. Do we not have to say Europe’s axis is shifting to these countries? They need to abandon efforts to hide this double standard and perception plots. China offers great opportunities for world trade, and Turkey does not need the input of other nations to evaluate this prospect,” Önen added.Trade dispute with Turkey puts pressure on US stocksTurkey, China ties date back to the Silk Road“I see China as sharing a border with Turkey. China has investments in Africa and the Balkans, and we need cooperation with China around here. We are saying that we will work together with China, not against them. Turkey and China are partners that actualized a win-win policy on the Silk Road Project. Forty-five days of travel via sea will be reduced to 15 by railways, and this is an incredible gain in terms of trade. Turkey has fulfilled its role regarding the railway project and the rest is up to China. We will sign the project soon. Negotiations regarding a third nuclear central are also underway, which is a deal of $50 billion. Our President Recep Tayyip Erdoğan and Chinese President Xi Jinping have been re-elected for five years in their countries. Starting from the next five years, it is possible to make action plans spanning 20 to 30 years,” Önen said.US tariffs to remain even if pastor freed: WHEx-French diplomat slams Trump's Turkey policyTurkey invites US to panel in WTO
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In 2017, China poured a record 1.84 trillion yuan ($278.21 billion) into the project, with new construction started on over six million homes that year, official data showed. The government is aiming to build another 5.8 million homes in 2018.
China's shantytown spending so far this year is roughly equal to the market value of video streaming giant Netflix Inc.
The housing ministry, in a statement on Thursday, said construction work began on 4.07 million homes in the first seven months this year.
But ballooning property bubbles and hidden local debt risks as a result of credit stimulus from the project have sounded alarm bells for China's top leaders. The housing ministry said in July it will restrict subsidies for new shantytown development projects to cities with hot property markets.
China rebuffed Philippine President Rodrigo Duterte's call for Beijing to rethink its conduct in the South China Sea on Thursday, saying China had the right to react to foreign ships or aircraft that get close to its islands.Duterte said China has no right to repel foreign aircraft and boats passing by its artificial islands in the disputed waterway, and that he hoped China would "temper" its behaviour and stop restricting movements.In a statement sent to Reuters, China's Foreign Ministry said the Spratly Islands are China's inherent territory and that China respects the right to freedom of navigation and overflight that all countries enjoy in the South China Sea under international law."But China has a right to take necessary steps to respond to foreign aircraft and ships that deliberately get close to or make incursions into the air and waters near China's relevant islands, and provocative actions that threaten the security of Chinese personnel stationed there," it said."China urges the relevant party to meet China halfway, and jointly protect the present good situation that has not come easily in the South China Sea," the ministry added, without elaborating.China, Taiwan, the Philippines, Malaysia, Vietnam and Brunei have competing claims to the Spratly archipelago, where China has rapidly turned reefs into artificial islands that appear to be military installations, from which its personnel routinely instruct foreign vessels to leave.Duterte has a policy of engagement with Beijing, in the hope of securing billions of dollars in grants, loans and investments, and has rejected criticism that he is acquiescing to Chinese pressure or surrendering Philippines sovereignty.However, instead of blaming China for building and militarising islands in disputed waters, he has said the United States was at fault for not blocking the construction when it started.China has been angered by the United States in particular sending military ships and aircraft close to Chinese-occupied islands in the South China Sea in the name of freedom of navigation, saying the operations are highly provocative and potentially dangerous.China doesn’t own airspace over disputed sea: DuterteDuterte fires military officials for alleged corruptionPhilippines' Duterte sacks 20 for graft in military medical buys
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In late June, Reuters reported that China Development Bank (CDB) had halted funding for new shantytown redevelopment projects, and transferred approval authority from its local branches back to the policy bank's headquarters, in a sign of tighter scrutiny over the project.
While Beijing is seen to significantly reduce the size of the project especially in low-tier cities in the future, it may be hesitant to dial back support too quickly amid a slowing economy.
Economists at Nomura, in a note this week, said they believe that in the short term, Beijing will maintain a normal pace for financing all renovation projects "given the strong headwinds to China's economy".