Beijing, A seven-month-old baby infected with the novel <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> was discharged from <keyword id="6358650" type="UNKNOWN" weightage="20" keywordseo="hospital">hospital</keyword> on Wednesday after recovery in southwest <keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword>'s <keyword id="1461845" type="LOCATION" weightage="20" keywordseo="Chongqing-municipality">Chongqing Municipality</keyword>.<br /><br />The baby was the youngest patient in Chongqing, and was confirmed to be infected with the novel coronavirus on Feburary 3, according to a press conference, the <keyword id="6363413" type="LOCATION" weightage="20" keywordseo="xinhua">Xinhua</keyword> news agency.<br /><br />"The hospital set up a special medical team to treat the baby patient," said Xia Pei, Deputy Party Secretary of Chongqing's health commission. "Everything went well with the treatment and the baby was discharged from hospital after recovery this morning."<br /><br />As of Tuesday, a total of 296 COVID-19 patients had been reported in Chongqing, with 254 discharged from hospital after recovery.<br /><br />

A seven-month old baby recovers from Coronavirus at Chongqing in China

By K J M Varma (Eds: Updating with more inputs) <p>Beijing, Jun 22 () Eight primary school children in southwest China have drowned after one fell into a river and others jumped in to save their friend, authorities said on Monday. </p><p>The incident happened in China's Chongqing Municipality. </p><p>According to the district publicity department, the students fell into the river in the village of Tongjia in Tongnan District at around 3:30 pm on Sunday. </p><p>Initial investigations revealed that the victims were students of a local primary school. They were playing by the river when one of them fell into the water. The rest of the students jumped in an attempt to save the victim, state-run Xinhua news agency reported. </p>The bodies have been retrieved by the rescuers, the report said. KJV AMS

Eight primary school children drown in river in China

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a0490e635876ea2008b4f7f-1185/yan park 2.jpg" alt="yan park 2" data-mce-source="Turenscape" /><p class="source"><span>Turenscape</span></p><p class="caption">Yanweizhou Park in Jinhua, eastern China.</p></div><p></p></div></div></p><ul><li><strong>The Chinese government is building water-absorbent projects in 30 cities as part of its "sponge city initiative."</strong></li><li><strong>To date, the cities have received more than $12 billion for sponge projects.</strong></li><li><strong>The effort faces several challenges, including China's burgeoning municipal debt crisis and its current urban planning system.</strong></li></ul><p>Like many places around the world, Chinese cities are considering ways to combat flooding in the face of climate change. Increased<a href="http://www.businessinsider.com/heres-chinas-big-plan-to-move-a-population-the-size-of-the-phillippines-from-farms-to-cities-2015-7"> urban development</a> has made flooding worse, and has turned some neighborhoods into vulnerable waterfront locations.</p><p>In 2010, <a href="https://www.theguardian.com/world/2010/jul/21/china-flooding-worst-decade">landslides from flooding killed</a> approximately 700 people and left over 300 missing in three-quarters of China's provinces. <span>Just this July, </span><a href="http://www.aljazeera.com/news/2017/07/china-floods-170704093817347.html">heavy rains pummeled southern China</a><span>, flooding towns, destroying homes, and killing at least 56 people.</span></p><p><span>In recent years, fatal floods like these have become regular occurrences. The number of Chinese cities struck by floods has </span><span><a href="http://www.economist.com/blogs/economist-explains/2015/08/economist-explains-5" target="_blank" rel="noopener noreferrer">more than doubled</a> since 2008, according to The Economist. <a href="http://www.businessinsider.com/did-climate-change-contribute-to-hurricane-harvey-2017-8">Some scientists say</a> that rising global temperatures are making rainfall from storms more destructive and frequent.</span></p><p>The Chinese government is now pursuing an idea that could alleviate the problem: sponge cities.</p><p>Launched in 2015, the Sponge City Initiative invests in projects that aim to soak up floodwater. The projects are being built in 30 cities, including <span>Shanghai, Wuhan, and </span><span>Xiamen. By 2020, China hopes that 80% of its urban areas will absorb and re-use at least 70% of rainwater.</span></p><p>To date, the cities have received more than <a href="http://www.chinadaily.com.cn/opinion/2017-09/26/content_32491069.htm">$12 billion</a> for sponge projects, according to China Daily. The central government funds around 15% to 20% of costs, with the remainder funded by local governments and private developers.</p><p><span>Lingang, a planned city in Shanghai's Pudong district, hopes to </span><span>become China's largest sponge city project. As CNN notes, in the past two years, the city government has spent <a href="http://www.cnn.com/2017/09/17/asia/china-sponge-cities/index.html">$119 million</a> planting greenery on rooftops, building wetlands for rainwater storage, and constructing permeable roads that store runoff. </span>In early 2016, <span>Shanghai announced the construction of 4.3 million square feet of rooftop gardens throughout the entire city.</span></p><p><span>In April, <a href="http://www.mysuezwater.com/about-us">utility company Suez</a> started installing a new 7-square-mile drainage system in Chongqing. The system's embedded sensors will allow local officials to monitor their sewer and stormwater networks to mitigate the risk of flooding, <a href="http://www.water-technology.net/news/newssuez-secures-contrat-for-sewer-and-stormwater-systems-optimisation-in-chongqing-5746392">according to</a> the company.</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a04bc0b3dbef4ae078b50ad-800/suez.jpg" alt="Suez" data-mce-source="Suez" /><p class="source"><span>Suez</span></p><p class="caption">A semi-fantastical rendering of what Chongqing, China will look like with Suez's new drainage system.</p></div><p></p></div></div></span></p><p>Many of the projects incorporate green space, like wetlands and bioswales, which naturally help absorb water. The efforts seek to reduce the amount of rainwater runoff. </p><p>Though the Yanweizhou Park in Jinhua, eastern China, opened in 2014 (before the initiative began), it serves as a model for the type of flood-resilient, green infrastructure the country wants to continue building.</p><p>Featuring a series of winding pedestrian paths, it's designed to exist with floodwater during heavy rainfall. The images below show what the park looks like before and after monsoons, respectively:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a0490e63dbef426008b4fe9-1194/park combined.jpeg" alt="park combined" data-mce-source="Turenscape" /><p class="source"><span>Turenscape</span></p><p class="caption">Yanweizhou Park in Jinhua, eastern China.</p></div><p></p></div></div></p><p>The initiative is facing some challenges, according to <a href="http://www.mdpi.com/2073-4441/9/9/594">a 2017 report</a> from the <span>China Institute of Water Resources and Hydropower Research, a research institution under the country's Ministry of Water Resources. After surveying all 30 cities, the researchers noticed several roadblocks, including "ambitious goals without sound research basis," unavailable green materials, and planning models that are too homogeneous and not locally specific. China is also in the middle of <a href="https://www.nytimes.com/2017/05/24/business/china-downgrade-explained.html?_r=0">a growing municipal debt crisis</a>, making funding some of the projects difficult.</span></p><p><span>Still, the researchers remain optimistic, but only if cities continue to invest in research, development, and coordination among stakeholders, governments, and citizens.</span></p><p><span>"While significant challenges remain, important opportunities are opening for safer, greener, more holistic urban environments," the researchers wrote.</span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/surprising-everyday-products-made-from-cow-parts-2017-10">Only 60% of a cow is actually used for food - here's the weird stuff that happens to the other 40%</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/kclT2n8R-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

China is building 30 'sponge cities' that aim to soak up floodwater and prevent disaster

<img class="gwt-Image" src="/photo/52852797.cms" /> <br /> <keyword id="156689" type="COMPANY" weightage="100" keywordseo="Tesla-Motors">Tesla Motors</keyword> Inc. has chosen Shanghai as the location of its production base in China, says <a href="http://www.bloomberg.com/news/articles/2016-06-20/shanghai-said-to-be-front-runner-for-tesla-china-production-site">a report from Bloomberg</a>, which also states that it might invest about $9 billion in the country. <br />
<br />
A Shanghai government-owned company called Jinqiao Group has signed a non-binding MoU with Tesla to build its production facilities in the municipality, as per a person aware of the matter who requested anonymity.<br />
 <br />
As per the report, each party might be investing about 30 billion yuan ($4.5 billion) in the partnership, and Jinqiao will put up land for most of its share. Cities of Suzhou and Hefei are participating for the investment from Tesla.<br />
 <br />
"This would be a major win for Tesla and Shanghai," said Steve Man, an auto analyst at Bloomberg Intelligence. "The investment will probably include a nationwide dealership network, superchargers, R&amp;D center and potentially a second 'Gigafactory."' <br />
<br />
By manufacturing in China, Alto, California-based Tesla will be able to avoid a 25% import levy, which would make its electric vehicles more competitive against luxury-brand rivals like BMW and Audi. Shanghai, which is one of the major auto manufacturing hubs in China, also serves as a financial center and sea port. <br />
<br />
In the past, several global automakers have set up manufacturing plants in China via JVs, owning up to 50% stake. While Ford Motor Co. partnered with Changan Group in the southwestern municipality of Chongqing, Hyundai Motor Co. works with BAIC Group in Beijing; similarly, Nissan Motor Co.'s China venture is based in Wuhan. <br />
<br />
<a href="http://images.bidnessetc.com/img/tesla-motors-inc-to-miss-annual-sales-guidance-amid-china-weakness-more-top.jpg"><em>Image source</em></a>

Tesla Motors to set up manufacturing base in China

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/579af116dd08954d538b4bb7-1369/rtr1ggqm.jpg" alt="A woman walks on the dried-up river bed in southwest China's Chongqing Municipality August 16, 2006. At least 14 million people and 15 million livestock are suffering from a shortage of drinking water as continuous droughts and searing heat ravage western China, Xinhua News Agency reported. Picture taken August 16, 2006." data-mce-source="REUTERS/China Daily" data-mce-caption="A woman walks on the dried-up river bed in southwest China's Chongqing Municipality August 16, 2006. At least 14 million people and 15 million livestock are suffering from a shortage of drinking water as continuous droughts and searing heat ravage western China, Xinhua News Agency reported. Picture taken August 16, 2006." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCIKL0QV90&amp;SMLS=1&amp;RW=1544&amp;RH=891#/SearchResult&amp;VBID=2C0FCIKL0QV90&amp;SMLS=1&amp;RW=1544&amp;RH=891&amp;POPUPPN=14&amp;POPUPIID=2C04082V4VDM9" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCIKL0QV90&amp;SMLS=1&amp;RW=1544&amp;RH=891#/SearchResult&amp;VBID=2C0FCIKL0QV90&amp;SMLS=1&amp;RW=1544&amp;RH=891&amp;POPUPPN=14&amp;POPUPIID=2C04082V4VDM9">REUTERS/China Daily</a></span></p><p class="caption">A woman walks on the dried-up river bed in southwest China's Chongqing Municipality August 16, 2006.</p></div><p></p></div></div><span>The <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword>'s post-Brexit economy risks missing out on merger and acquisition deals, with investors shying away from political risk in the wake of the June 23rd vote.</span></p><p><span>Early-stage M&amp;A activity jumped 19.8% in mainland Europe in the four weeks after Brexit. </span></p><p><span>But deal activity in</span><span> Britain fell 7.4% during the same period, according <a href="https://www.intralinks.com/resources/publications/deal-flow-predictor-2016q4">to a report by M&amp;A analysts Intralinks.</a></span></p><p><span>And that trend looks set to continue. Fewer investors want to take a risk on UK assets before the country's new relationships with its trading partners are thrashed out.</span></p><p><span>Here is Intralinks on its survey of more than 1,000 dealmakers (emphasis ours):</span></p><p style="padding-left: 30px;">"While a majority of respondents expect demand for European assets over the next six months either to remain the same or increase as a result of Brexit, their responses are very different when asked about demand for UK assets.</p><p style="padding-left: 30px;">A clear majority expects demand for UK assets to decrease over the next six months as a result of Brexit, with German respondents being the most negative. <strong>Clearly most dealmakers feel that uncertainty over the impact of Brexit on the UK outweighs the benefits of reduced valuations and a weaker UK currency."</strong></p><p>Here's the chart:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57b03d66dd089561368b4567-816/dealmakers.png" alt="Dealmakers" data-mce-source="Intralinks" /><p class="source"><span>Intralinks</span></p></div><p></p></div></div></p><p>The same people were also downbeat about Brexit's effect on the UK economy:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57b03d66dd089561368b4568-1222/deal2.png" alt="Deal2" data-mce-source="Intralinks" /><p class="source"><span>Intralinks</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/malcolm-gladwell-revisionist-history-donate-princeton-vassar-bowdoin-tipping-point-outliers-blink-2016-7">MALCOLM GLADWELL: 'Anyone who gives a single dollar to Princeton has completely lost their mind'</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tlNzV5NDE68LblejgkI-6sByYCuoiDZ7" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'tlNzV5NDE68LblejgkI-6sByYCuoiDZ7',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Big merger deals are drying up in the UK after Brexit

<p class="p1"><span style="line-height: 1.5em;"><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/556dd63feab8ea436e3daf56-1200-924/ford-china-3.jpg" border="0" alt="Ford China" style="color: #000000;"><p class="source"><span>Reuters</span></p><p class="caption">An employee works at an assembly line at a Ford manufacturing plant in Chongqing municipality April 20, 2012.</p></img></div><p></p></div></div>Detroit automakers typically shut down for two weeks in the summer to ensure their production lines are in top shape.</span><span style="line-height: 1.5em;"><br /></span></p><p class="p1"><span class="s1">This year, however, is the third year in a row that Ford will shorten employees' holiday to one week, allowing America's second-largest car maker to produce an additional 40,000 cars and trucks, including the <a href="http://www.businessinsider.com/its-absolutely-positively-clear-that-ford-didnt-screw-up-the-f-150-pickup-truck-2015-5">redesigned F-150</a>.</span><span style="line-height: 1.5em;"><br /></span></p><p class="p3"><span class="s2">"Based on strong customer demand for the company's newest products - F-150, Edge, Escape and Explorer - six Ford assembly plants, along with </span><span class="s2" style="line-height: 1.5em;">supporting pow</span><span style="line-height: 1.5em;">ertrain and stamping plants, will shut down only the week of June 29," vice president Bruce Hettle said in </span><a href="https://media.ford.com/content/fordmedia/fna/us/en/news/2015/06/02/ford-reduces-summer-shutdown-to-meet-demand.html">a statement</a><span style="line-height: 1.5em;"> on the company's website. </span><span style="line-height: 1.5em;">"Assembly plants include Chicago, Dearborn Truck, Kansas City, Kentucky Truck, Louisville and Oakville."</span></p><p class="p4"><span style="line-height: 1.5em;">Despite recent <a href="http://www.businessinsider.com/r-ford-recalls-over-220000-vehicles-in-north-america-for-three-issues-2015-3">recall woes,</a> some Ford models are flying off lots. May saw <a href="https://media.ford.com/content/fordmedia/fna/us/en/news/2015/06/02/may2015sales.html">record sales</a> for the Edge, which<span> is typically bought an average of 10 days after reaching dealers' lots, the compa</span></span><span style="line-height: 1.5em;">ny said in a release on Monday morning. But overall Ford vehicle sales took a hit, down two percent from the same month last year.</span></p><p class="p4"><span style="line-height: 1.5em;"></span><span style="line-height: 1.5em;">Ford has produced a full-size pickup truck since 1948. This new and redesigned F-150 is its thirteenth iteration, and the first since 2009. This time around, the truck is 700 pounds lighter, thanks to its aluminum-heavy construction. </span></p><p class="p4"><span style="line-height: 1.5em;">The company boasts that the truck remains on dealer lots for an average of only 20 days.</span><span style="line-height: 1.5em;"> </span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/new-air-force-one-tour-boeing-private-jet-2015-5">Take a tour of the $367 million jet that will soon be called Air Force One</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Ford is cutting short its summer break again because so many people want trucks and SUVs

<p><div class="KonaFilter image-container float_right"><div class="image on-image"><img src="http://static6.businessinsider.com/image/52bc3a986bb3f7f86dab355c-1200-924/china-pregnant.jpg?maxX=480" border="0" alt="china pregnant" width="480" /><p class="source"><span>REUTERS/China Daily</span></p><p class="caption">The husband of a pregnant woman paints a picture of a snake on her belly during a body painting contest for pregnant women in Chongqing municipality, October 27, 2013. </p></div><p></p></div>Over the past decade China saw rapid economic expansion. But its growth model and controversial politics have not come without their fair share of problems.</p>
<p>Rising property prices, rising food prices, restrictions on investment, an emphasis on speed over safety, and lax environmental standards have led to some truly unique and sometimes crazy situations in China.</p>
<p>Rich people build mountain villas on top of apartment buildings, local governments incentivize burials at sea, and people are pour their money into everything from walnuts to cockroach farms.</p>
<p>We identified 35 strange things that have happened in China.</p>

35 Crazy Things That Only Happen In China 

<p data-track-pos="0"><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/552e44c9ecad045338a7b514-1200-791/rtr36zfz.jpg" alt="Gu Kailai" data-mce-source="Reuters" data-mce-caption="Gu Kailai (C), wife of ousted Chinese Communist Party Politburo member Bo Xilai, stands at the defendant's dock during a trial in the court room at Hefei Intermediate People's Court in this still image taken from video August 20, 2012." /><p class="source"><span>Reuters</span></p><p class="caption">Gu Kailai (C), wife of ousted Chinese Communist Party Politburo member Bo Xilai, stands at the defendant's dock during a trial in the court room at Hefei Intermediate People's Court in this still image taken from video August 20, 2012.</p></div><p></p></div></div>The chief prosecutor in the case of Gu Kailai<span> -</span> <span>who was convicted of murdering a British businessman -</span> was found dead hanging in his apartment by the police on July 28, <a href="http://www.ft.com/intl/cms/s/0/66ebaa2c-35dd-11e5-b05b-b01debd57852.html#axzz3hIjKDvfV" target="_blank">the Financial Times reports</a>.</p><p data-track-pos="0">Gu, the<span> wife of top Chinese leader Bo Xilai, </span>was convicted of murdering British businessman <span>Neil Heywood in 2012 and given a suspended death sentence.<br /><span></span></span></p><p data-track-pos="0"><span><span>Prosecutor Man Mingan was appointed to the case in 2012, taking part in one of China's most dramatic court cases in decades.</span></span></p><p data-track-pos="0"><span>So far, police are saying the 60-year-old Man committed suicide but are still investigating the death. Some state media also reported that the Communist party had a meeting to discuss his death.</span></p><p data-track-pos="0">Gu is the daughter of one of China's most important revolutionary generals. Her husband, Bo Xilai, is a once powerful member of the politburo in China and<span> potential candidate for promotion to the top of the Communist party</span><span>, whose downfall is directly linked to the murder case. </span></p><p data-track-pos="0"><span>Bo, <span>the son of one of China's revolutionary founding fathers, is</span> now serving a life sentence for <a href="http://www.npr.org/2013/09/22/224922829/chinese-politician-sentenced-to-life-in-prison">corruption</a>.</span></p><p data-track-pos="0"><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/55b9272d2acae7cc3f8b8ba3-2588-1648/rtr3wetz.jpg" alt="Bo Xilai" data-mce-source="REUTERS/Jason Lee" data-mce-caption="Vice Chairman of China's Central Military Commission Xu Caihou (R) attends the opening ceremony of the Chinese People's Political Consultative Conference (CPPCC) next to then-Chongqing Municipality Communist Party Secretary Bo Xilai at the Great Hall of the People, in Beijing, March 3, 2012." /><p class="source"><span>REUTERS/Jason Lee</span></p><p class="caption">Vice Chairman of China's Central Military Commission Xu Caihou (R) attends the opening ceremony of the Chinese People's Political Consultative Conference (CPPCC) next to then-Chongqing Municipality Communist Party Secretary Bo Xilai at the Great Hall of the People, in Beijing, March 3, 2012.</p></div><p></p></div></div></span></p><p data-track-pos="0"><span> </span><span>The <a href="http://www.theguardian.com/uk-news/2014/sep/12/neil-heywood-murder-mother-ann-anger-china-compensation-delay" target="_blank">poisoning of Heywood</a> was made public after a former chief of police - who initially helped cover up the murder - alerted US diplomats out of fear that he would be killed himself. The murder took place in the city that Bo served as <span>Communist party secretary.</span></span></p><p>Gu's trial was held in Hefei, which is far away from any areas that be under her husband's influence.</p><p>The Financial Times <a href="http://www.ft.com/intl/cms/s/0/66ebaa2c-35dd-11e5-b05b-b01debd57852.html#axzz3hIjKDvfV">notes</a> that "<span>the outcome was decided beforehand by senior political leaders" and media could not freely cover the highly politicized trial. </span></p><p><span>After the trial, Man who had been thrusted in the center of public attention, received a special meritorious award for how he handled the trial.</span></p><p> </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/colombian-police-seized-1713-pounds-of-cocaine-2015-7">Police in Colombia just seized $240 million worth of cocaine</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Q0NjZndjqsa9fN41PPdLRX9RTy4kuCqc" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'Q0NjZndjqsa9fN41PPdLRX9RTy4kuCqc',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Chief prosecutor in murder case of ousted top Chinese official Bo Xilai's wife found dead

<p>China's economic boom in recent decades is hard to fathom. Since Deng Xiaoping began market reforms in 1978, GDP growth reached around 10% annually - <a href="http://www.businessinsider.com/chinas-economic-slowdown-in-11-charts-2014-3">with recent slowdown</a> - lifting more than 500 million people out of poverty. With a population of 1.3 billion, the country recently became the world's second largest economy.</p>
<p>On the way, Chinese cities have grown at an unprecedented speed. Some have even expanded faster than population growth can keep up, leading to talk of <a href="http://www.businessinsider.com/chinas-ordos-ghost-city-pictures-2014-2">ghost cities</a>, possibly a <a href="http://www.businessinsider.com/stephen-roach-chinese-ghost-cities-2012-8">natural part of China's future</a>.</p>
<p>But the massive shift is no illusion: China is trying to use <a href="http://www.businessinsider.com/urbanization-cant-save-chinese-economy-2013-1">urbanization to drive growth</a>, and analysts expect China to add <a href="http://www.businessinsider.com/facts-about-china-blow-your-mind-2011-5?op=1">more city-dwellers between 2009 and 2030 than the entire population of the U.S.</a></p>
<p>We've picked out some of the fastest growing cities, shown via satellite images recorded over time by <a href="https://earthengine.google.org/#intro">Google's Earth Engine</a>, and turned them into GIFs.</p>
<p>Take a look at the expansion in action.</p>
<h2>Changsha</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176bd06da8115d7a509783/changsha.gif" border="0" alt="Changsha GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>Changsha, capital of the central Hunan province, has expanded incredibly fast in the past decade, <a href="http://www.businessinsider.com/satellite-pictures-of-chinese-ghost-cities-2013-3?op=1">with some areas of apparently unoccupied residential developments labeled as ghost cities</a>.<span></span></p>
<p>Between 2001 and 2005, Changsha's economy grew an average of <a href="http://www.chnsourcing.com/outsourcing-news/model-cities/changsha/">14% per year</a>, compared to the national average of 9% during that period. F<span>rom 2000 to 2010, the city population grew from around 6 million to 7 million, according to the <a href="http://www.citypopulation.de/php/china-admin.php?adm2id=4301">China National Bureau of Statistics.</a><span style="text-decoration: underline;"></span></span></p>
<p><span>In 2012, this central Chinese city unveiled a $130 billion investment plan for<span> airports, subways, and other expansion, <a href="http://www.bloomberg.com/news/2012-07-26/china-s-changsha-city-unveils-130-billion-investment-plan.html">Bloomberg</a> reported. Changsha also plans to build the world's largest skyscraper, appropriately named Sky City, at about <a href="http://www.cnn.com/2013/08/05/business/china-sky-city-skyscraper-index/?iref=obinsite">2,750 feet tall</a>. </span></span></p>
<h2>Chongqing</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176bfaeab8eae452ecf0fd/chongqing.gif" border="0" alt="Chongqing GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>From 1998 to 2008, Chongqing's economy increased from approximately $23 billion to about $83 billion, according to <a href="http://www.eai.nus.edu.sg/BB465.pdf">East Asia Institute</a>. B<span>etween 2007 and 2012, Chongqing became the fastest growing city in China with growth averaging over 15% every year, according to <a href="http://hbr.org/product/The--Chongqing-Model--and/an/713028-PDF-ENG">Meg Rithmire</a><span> at the Harvard Business School. </span></span></p>
<p>Most credit the <a href="http://www.foreignpolicy.com/articles/2012/08/08/the_chongqing_model_worked">Chongqing Model</a>, a radical deviation from China's usual social and fiscal policies, for the city's successes. Implemented by controversial politician Bo Xilai, the policy improved public security, rebuilt infrastructure, pulled in foreign direct investment, and innovated urbanization.</p>
<p>By some measures, Chongqing takes the unofficial title as China's most populous municipality with a total population of about 29 million in 2010, according to the <a href="http://www.citypopulation.de/China-Chongqing.html">China National Bureau of Statistics</a>.</p>
<h2>Fuyang</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176c20eab8eab257ecf0ff/fuyang.gif" border="0" alt="Fuyang GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>As the largest city in the Anhui province, Fuyang's population rose from 142,000 in 1990 to 874,000 in 2010, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities in 2012/2013</a>. The study also estimated the 2025 population at 1,119,000, a potential increase of 688% from 1990. </p>
<p>Known as a paper and textile industry city, Fuyang's economy increased by 11.7% from the previous year, according to <a href="http://www.chinaknowledge.com/CityInfo/City.aspx?Region=Central&amp;City=Fuyang">Fuyang Economic and Social Development Report in 2012</a>.</p>
<h2>Haikou</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176c4769beddde5aecf0fd/haikou.gif" border="0" alt="Haikou GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>The capital and most populous city in the Hainan province, Haikou's population has risen from 331,000 in 1990 to 1,586,000 in 2010, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a><em>. </em>The population is expected to grow to 2,065,000 in 2025, a 524% increase from 1990. </p>
<p>The word "Haikou" roughly translates as "seaport," and the water to the north also contributes to the growing population and economy. The automobile industry accounted for about 22% of the city's total economy in 2009.</p>
<h2>Jiangmen</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176c6fecad047d2d39bd8a/jiangmen.gif" border="0" alt="Jiangmen GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>In the south of China's <span>Guangdong province, Jiangmen sits only a few hours Hong Kong. From 1990 to 2010, the city's population grew from 190,000 to 1,103,000, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a>. By 2025, another 340,000 people are expected to appear, putting potential growth at 504% since 1990. </span></p>
<p>One of <a href="http://www.hktdc.com/mis/fsupp/en/s/JiangmenFeaturedSuppliers.html">China's electric energy bases</a>, Jiangmen's government supports proactive foreign investment and encourages sustainable and innovative manufacturing. <span>The region hosts 19 national-level industrial bases, ranging from bathroom hardware, electric energy, auto parts, and more.</span></p>
<p><span>In 2011, the city's economy hit $29 billion.</span></p>
<h2 class="slide-title">Linyi</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176ccf6bb3f7aa1eecf105/linyi.gif" border="0" alt="Linyi GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>Linyi is the <a href="http://english.shandongbusiness.gov.cn/public/area/linyi/">largest and most populous city</a> in the Shandong province. From 1990 to 2010, the population increased from 260,000 to 1,427,000, and the population is expected to hit 1,827,000 by 2025, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a>. </p>
<p>As one of the biggest wholesale markets in China, Linyi brings in $8.15 billion annually in economy and recently, <a href="http://www.meed.com/sectors/economy/government/dubai-linyi-link-to-herald-growth/3185484.article">Dubai has focused trade efforts</a> in the area, totaling about $5 billion in projects there.</p>
<h2>Nanjing</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176d496bb3f72e1aecf107/nanjing.gif" border="0" alt="Nanjing GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p>As the capital of China at various points, Nanjing holds a deep cultural history, with "five pillars of  industry" including electronics, cars, petrochemicals, iron, steel, and power<span>.</span></p>
<p><span>In 2012, the city's economy stood at about $160 billion, the 16th largest in the country, up about 23% from 1993, according to the <a href="http://www.brookings.edu/~/media/Multimedia/Interactives/2013/tentraits/Nanjing.pdf">Brookings Institute and JPMorgan</a>, which also listed the city as one of globe's most diverse and connected metro areas. </span></p>
<p><span>The city's urban area population went from nearly two million in 1980 to nearly six million in 2012.<br /></span></p>
<h2 class="slide-title">Nanyang</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176daa69bedd6e5eecf100/nanyang.gif" border="0" alt="Nanyang GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p class="slide-title"><span>Located in the Henan province, the city's population has grown from 228,000 in 1990 to 867,000 in 2010. By 2025, the population is expected to hit 1,135,000, a potential increase of 398% since 1990, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a>.</span></p>
<p class="slide-title">Nanyang's economy hit a record high of <a href="http://www.chinaknowledge.com/CityInfo/City.aspx?Region=Central&amp;City=Nanyang">38.5 billion in 2012</a>, representing steady growth - 10.2% over the previous year.</p>
<h2 class="slide-title">Ordos</h2>
<p class="slide-title"><span style="color: #222222; font-size: 15px; line-height: 1.5em;"><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5329cec86bb3f74a39be2962/ordos.gif" border="0" alt="Ordos GIF" /><p class="source"><span>Google Earth Engine</span></p></div><p></p></div></div><br /></span></p>
<p class="slide-title"><span style="color: #222222; font-size: 15px; line-height: 1.5em;">China's <a href="http://www.businessinsider.com/ordos-photo-miss-world-2012-2012-8#">most famous ghost city</a>, Ordos remains mostly empty. The city helped drive China's economy through construction and coal mining, but population increase didn't seem to follow. In fact, most initial migrants fled the city after underground lending collapsed. </span></p>
<p class="slide-title"><span style="color: #222222; font-size: 15px; line-height: 1.5em;">Many analysts predict the "<a href="http://english.peopledaily.com.cn/90778/8323346.html">Ordos bubble</a>" will soon burst, following years of annual economic growth as high as 18.5%.</span></p>
<h3 class="slide-title">Shanghai</h3>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176e1cecad045e3a39bd8a/shanghai.gif" border="0" alt="Shanghai GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p class="slide-title">According to Wendell Cox's latest <a href="http://demographia.com/db-worldua.pdf">Demographia</a>, Shanghai is the world's sixth largest "mega-city" - an urban area with a population over 500,000. Shanghai's population is approximately 23 million. From just 2008 to 2010, the city gained nearly another <a href="http://www.chinadaily.com.cn/china/2011-02/23/content_12060936.htm">two million people</a>.</p>
<p class="slide-title">Population density is also astonishingly high here, at 16,200 people per square mile - compared with a little over 4,000 in New York City.</p>
<p class="slide-title">Shanghai also faces worrying sustainability and environmental impacts, especially <a href="http://www.businessinsider.com/shanghai-smog-2013-12">the smog</a>.</p>
<h2 class="slide-title">Shaoxing</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176e48eab8eaf45fecf0ff/shaoxing-1.gif" border="0" alt="Shaoxing GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p class="slide-title"><span>Located in China's Zhejiang province only a few hours from Shanghai, Shaoxing's population has grown from 181,000 in 1990 to 853,000 from 2010. By 2025, the population is expected to hit 1,066,000, a 547%  increase since 1990, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a><span>.</span></span></p>
<p class="slide-title"><span>In 2012, the economy of Shaoxing increased 9.7% from a year earlier to $58 billion. The manufacturing industry, the largest contributor to the city's economy, composed 53.8% of the city's economy, according to the <a href="http://china-trade-research.hktdc.com/business-news/article/Fast-Facts/Shaoxing-Zhejiang-City-Information/ff/en/1/1X000000/1X07410X.htm">Hong Kong Trade Development Council.</a> </span></p>
<p class="slide-title"><span>Thailand-based Lotus and Japan-based Panasonic have also established businesses in the city, along with two major airports.</span></p>
<h2 class="slide-title">Taizhou</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176e6d6da8113603509786/taizhou.gif" border="0" alt="Taizhou GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p class="slide-title"><span>Located in the Zhejiang province, Taizhou's population has increased from 158,000 in 1990 to 795,000 in 2010. By 2025, the population is expected to hit 1,101,000, a potential 597% increase from 1990, according to <span>UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a></span></span></p>
<p class="slide-title">In 2012, the economy of Taizhou was about <a href="http://www.zjtz.gov.cn/tzgl/">$47 billion</a>. The city houses car manufacturer, Geely, which acquired Volvo in 2010. It's also a big producer of foods products, like canola oil and wild rice.</p>
<h2 class="slide-title">Xiamen</h2>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53176e8fecad047d3639bd86/xiamen.gif" border="0" alt="Xiamen GIF" /><p class="source"><span><a href="https://earthengine.google.org/#intro">Google Earth Engine</a></span></p></div><p></p></div></div></p>
<p class="slide-title"><span>Located in the Fujian province, Xiamen's population has grown from 639,000 in 1990 to 2,207,00 in 2010. The projected population by 2025 is 3,112,000, a potential 387% increase since 1990, according to the UN Habitat's <a href="http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387">State of the World's Cities 2012/2013</a>.<em> </em></span></p>
<p class="slide-title">As one of the nation's five special economic zones, the city's economy amounted to about $46 billion, showing growth of 12% over the previous year. Its main industries are <a href="http://www.chinaknowledge.com/CityInfo/City.aspx?Region=Coastal&amp;City=Xiamen">electronics and machinery</a>.</p>

13 Incredible GIFs Of Chinese Cities Expanding Over Time

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/575b243091058428008c84d6-2400/rtxb8oe.jpg" alt="China nail house" data-mce-source="Reuters/China Daily China Daily Information Corp - CDIC" data-mce-caption="A nail house, the last house in this area, stands in the centre of a construction site which will be developed as a new apartment zone in Chongqing Municipality." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCIAKEVC_S&amp;SMLS=1&amp;RW=1327&amp;RH=908#/SearchResult&amp;VBID=2C0FCIAKEVC_S&amp;SMLS=1&amp;RW=1327&amp;RH=908&amp;PN=3&amp;POPUPPN=180&amp;POPUPIID=2C0BF1IG2VIJ" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCIAKEVC_S&amp;SMLS=1&amp;RW=1327&amp;RH=908#/SearchResult&amp;VBID=2C0FCIAKEVC_S&amp;SMLS=1&amp;RW=1327&amp;RH=908&amp;PN=3&amp;POPUPPN=180&amp;POPUPIID=2C0BF1IG2VIJ">Reuters/China Daily China Daily Information Corp - CDIC</a></span></p><p class="caption">A nail house, the last house in this area, stands in the centre of a construction site which will be developed as a new apartment zone in Chongqing Municipality.</p></div><p></p></div></div>The housing market is in a pickle.</p><p>Long-term and short-term trends have converged and while it hasn't caused disaster for American homeowners yet, it certainly has made movement a lot harder.</p><p>Mark Fleming, an economist at First American Financial Corporation, compares the number of homes sold on an annual basis against what should be sold. Fleming uses indicators such as the state of the labor market, interest rates, and wages to make the determination. According to Fleming there is a significant disconnect between these two numbers.</p><p>"Right now there is a potential sales shortfall," Fleming told Business Insider. "We're under-potential by about 400,000 home sales a year."</p><p>Part of this is due to the under-building of homes, especially on the lower end, as we've previously noted. Fleming, whose firm offers title insurance and settlement solutions for real estate, said that the bulk of the issue does not just come from this long-run issue but it comes from existing home sales. </p><p>"Most of the homes offered for sale are not offered by a builder, they're offered by an existing homeowner," he said. "That existing homeowner, before he makes the decision to sell, has to make the decision to buy. I call it the duality of the housing market. He makes his buy and sell decisions together."</p><p>This duality leads to two problems according to Fleming, one of those being the inventory problem we've pointed to and one being financial. Here's Fleming's breakdown (emphasis ours):</p><p style="padding-left: 60px;">Why sell your home and buy a home when one, there's not a lot of choices in a home to buy - a little bit of a chicken and an egg problem there - but right now there's so little inventory to choose from. Secondly, a majority of existing homeowners have a mortgage rate of 4.5% or less. <strong>There's very little financial incentive because all I have is a big lump of transaction costs to move.</strong></p><p style="padding-left: 60px;">Whereas in times past, the move up process was incentivized by the long-run trend in falling interest rates. Every three to four years, interest rates were lower than they were a few years ago and so yeah sure, I'll move, because I can by my proverbial 'own home' back at less monthly cost because rates are lower. <strong>There's no incentive for that, rates have hobbled at 4% or less than 4% for almost 2 years now, 80% roughly have a mortgage rate at 4.5% or so. I don't see the financial benefit to moving if it's going to cost my 6% commission and moving fees.</strong></p><p>Let's unpack that for a second. Essentially, with interest rates from the Federal Reserve so low, banks have slashed the cost of mortgages in order to compete for business. Now that these mortgage rates are so low, there's not much more banks can do to incentivize people out of their home. Add in the cost (and let's be honest, the hassle) of moving and there seems to be a disincentive to do anything.</p><p>There are also demographic problems holding the housing market from breaking out, said Fleming. From the retirement of baby boomers to millennial buying not picking up, these long-run issues are weighing down the market's potential as well.</p><p>There are, of course, other factors that influence housing movement choices (Fleming himself admitted that as much) including job moves and family moves, but the shortfall in American moving from home to home seems to have a lot to do with the financial calculus and the Fed.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/sacha-baron-cohen-ali-g-trump-interview-2016-5">Sacha Baron Cohen recounts his 2003 Trump interview: 'I was the first person actually to realize that he's a d---'</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="4zczVwMzE6hmDuChB9a3GbUrHyGrp7Iw" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '4zczVwMzE6hmDuChB9a3GbUrHyGrp7Iw',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The housing market is trapped

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/574f01e491058424008c5fe0-1727/drought.jpg" alt="drought china boat river" data-mce-source="Reuters" data-mce-caption="A boatman repairs his boat on the dried-up riverbed of the Jialing River running along southwest China's Chongqing municipality August 25, 2006." /><p class="source"><span>Reuters</span></p><p class="caption">A boatman repairs his boat on the dried-up riverbed of the Jialing River running along southwest China's Chongqing municipality August 25, 2006.</p></div><p></p></div></div>China has a new terrifying problem.</p><p>Instead of the usual problem of<span> too much money flowing out, there's now not enough money flowing in.</span></p><p>"Beijing is clamping down hard on outflows," said Professor Christopher Balding, an economist at Peking University.</p><p>"The problem now is that inflows into China are collapsing. Probably down almost 40% this year. That is placing maybe even more pressure on the RMB [yuan] than the outflows. To run a fixed exchange rate you have to balance those things."</p><p><span>The country devalued its currency last August. Shortly before the devaluation, </span><a href="http://www.businessinsider.com/chinas-fx-reserves-less-than-estimated-2015-8">Goldman Sachs noted</a><span> "</span><span>that capital outflows have become very sizable and now eclipse anything we've seen in the recent past."</span></p><p>Since the devaluation, money has left the country in fits and starts. In September and October it was pouring out, then outflows moderated. As the yuan started falling against the dollar again at the beginning of this year, the deluge started again - then moderated again.</p><p>Because of this, the government has become extra disciplined about capital controls - as disciplined as a government can be when people who want to move money seem to have boundless creativity.</p><p>But without inflows, that's not going to be enough.</p><p>"<span>Money is still leaving significantly though definitely slowing in March and April and I suspect May will be more of the same," Balding said in an email to Business Insider.</span></p><h2>Your run of the mill bounce back</h2><p><span>To be fair, investment in China has historically tended to lag during the first half of the year but ramp up in the second half. There is reason to believe that this time will be different though. China's stimulus measures are having less and less of a positive impact on the economy as debt mounts and credit needs to be productive, not just plentiful.</span></p><p><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/574f04ea52bcd063018c6321-659/china-urges-local-officials-to-help-resolve-grievances-of-petitioners-2016-4.jpg" alt="Chinese President Xi Jinping speaks during his meeting with U.S. President Barack Obama at the Nuclear Security Summit in Washington, March 31, 2016. REUTERS/Kevin Lamarque" data-mce-source="Thomson Reuters" data-mce-caption="Chinese President Xi speaks during his meeting with U.S. President Obama at the Nuclear Security Summit in Washington" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">Chinese President Xi speaks during his meeting with U.S. President Obama at the Nuclear Security Summit in Washington</p></div><p></p></div></div>The government has said over and over that it isn't going to engage in major stimulus, and analysts think this means that measures taken to stave off disaster at the beginning of this year are not going to continue.</p><p><span>"...</span><span>we still see support for growth from the improving housing market, the lagged effect of strong credit growth in Q1, and accommodative fiscal and monetary policies," wrote Barclays analysts on a note published on Wednesday.</span> </p><p><span>"For H2 16 and beyond, we maintain our view of a growth slowdown due to capacity reductions, unsustainably rapid credit expansion and high debt burdens, particularly in the corporate sector. That said, we maintain our monetary policy forecast for a total of 150bp RRR cuts during the rest of year and think the PBoC will cut benchmark interest rates twice (25bp each) in H2 16, with a risk of fewer cuts."</span></p><p>This is giving the people who usually call for a China rally in the second half of the year a little bit of pause. The government might really be ready to let the economy suffer a bit to wean it off its addiction to cheap debt. This is not making investors want to jump into China.</p><p><span>Either way: "</span><span>unless [investors] flood back in H2, you will still end the year down significantly," Balding said. </span>"<span>I don't know anyone that is rushing to put money into China. </span><span>Chinese and foreign investors are saying the same thing: don't buy China right now."</span></p><p>The decline of the yuan over the last few weeks isn't attractive to investors either, to say the least. With the economy slowing, though, it is what the market is dictating, and China has said over and over again that it is going to allow the yuan to move based on market demands.</p><p>"Beijing is going to go a long way to defend the RMB [yuan] so unless they just get overwhelmed - something I would call a low probability event in the next few months - expect them to step in to stabilize though do not be surprised by periods of real volatility," Balding said.</p><p>"Beijing is not the best speed boat driver." </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/tim-sykes-instagram-star-million-cash-bank-withdrawal-2016-5">Why this Instagram star withdrew $1.2 million in cash - then deposited it the next day</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="xteTBsMzE66LW5zu1o_toAUh5j4YKAgp" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'xteTBsMzE66LW5zu1o_toAUh5j4YKAgp',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

China has a terrible new problem

<p>Wal-Mart just <a href="http://www.huffingtonpost.com/2014/01/02/walmart-donkey-meat_n_4530628.html">recalled donkey meat</a> in <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword> because it contained meat from other animals, including fox. </p>
<p>Despite the recent scandal, the mega-retailer has become wildly popular in China. Wal-Mart plans to open 110 additional stores there in the next few years. </p>
<p>Shopping at a Chinese Wal-Mart is totally different than it is in the U.S. </p>
<p>We highlighted some notable contrasts. </p>
<p><strong>1. People pick up raw meat to buy with their bare hands. </strong></p>
<p>Reuters captured this image of customers selecting<span> pieces of rabbit meat with their bare hands at a Wal-Mart Supercenter in the Chongqing municipality. </span></p>
<p><span><div class="image-container"><div class="image"><img src="http://static2.businessinsider.com/image/52c593a2ecad040e75a579ff-1200-858/rtr2tb8s.jpg?maxX=800" border="0" alt="meat china crowd wal-mart " width="800" /><p class="source">Reuters Staff/Reuters </p></div></div><br /></span></p>
<p><strong>2. The crowds are way worse. </strong></p>
<p>Reuters shows an insane stampede at a newly-opened Shanghai location. Travel writer Catherine Bodry <a href="http://www.gadling.com/2009/11/20/five-reasons-why-wal-mart-in-china-is-even-worse-than-at-home/">says that</a> Chinese Wal-Marts are uncomfortably crowded inside, with no room for personal space. </p>
<p><div class="image-container"><div class="image"><img src="http://static1.businessinsider.com/image/52c5950a6da811d54ca579f7-1200-750/rtriwi9.jpg" border="0" alt="crowds wal-mart china " width="800" /><p class="source">Reuters Staff/Reuters </p></div></div></p>
<p><strong>3. You can catch your own frogs, fish, and turtles. </strong></p>
<p>American <a href="http://www.youtube.com/watch?v=6GlhYT32fBI">YouTube user ILuvTrading</a> was a little creeped out by the open tanks. He also notes that they smell bad.  </p>
<p><div class="image-container"><div class="image"><img src="http://static4.businessinsider.com/image/52c59eaa6bb3f7ce7ad842bc-837-627/fish-tank-walmart-china.png" border="0" alt="fish tank walmart china" width="800" /><p class="source"><a href="http://commons.wikimedia.org/wiki/File:Seafood_section_at_Wal-Mart,_Shenzhen,_China.jpg">Wikimedia Commons</a></p></div></div></p>
<p><strong>4. You don't buy in bulk. </strong></p>
<p>Most Chinese shoppers don't have space at home to store massive quantities of food, so Wal-Mart <a href="http://www.youtube.com/watch?v=ZQ-ofmO_ng8">offers smaller quantities</a> there. </p>
<p><div class="image-container"><div class="image"><img src="http://static4.businessinsider.com/image/52c59ef1ecad04e80ca579fe-871-649/screen%20shot%202014-01-02%20at%2012.16.05%20pm.png" border="0" alt="walmart china" width="800" /><p class="source"><a href="http://commons.wikimedia.org/wiki/File:Candy_bins_at_Wal-Mart,_Shenzhen,_China.jpg">Wikimedia Commons </a></p></div></div></p>
<p><strong>5. Wal-Mart offers free bus rides for shoppers. </strong></p>
<p>YouTube user SurfDawg5 <a href="http://www.youtube.com/watch?v=ZQ-ofmO_ng8">highlights how</a> Wal-Mart makes it easy for shoppers to get to the store. </p>
<p><div class="image-container"><div class="image"><img src="http://static1.businessinsider.com/image/52c59cf7eab8ea543bbd3b56-1200-800/screen%20shot%202014-01-02%20at%2012.01.56%20pm.png" border="0" alt="walmart free bus china" width="800\" style=" />&lt;p class=" source=""><a href="http://www.youtube.com/watch?v=hOUnCppzisk">YouTube </a></img></div></div></p>
<p><strong>6. You can buy alligator meat.</strong> </p>
<p>There are other exotic reptiles available if you prefer lizards. </p>
<p><div class="image-container"><div class="image"><img src="http://static3.businessinsider.com/image/52c59f9b6bb3f7b57ad842ba-878-647/screen%20shot%202014-01-02%20at%2012.18.46%20pm.png" border="0" alt="walmart china " width="800" /><p class="source"><a href="http://commons.wikimedia.org/wiki/File:Crocodile_Meat.jpg">Wikimedia Commons </a></p></div></div></p>
<p><strong>7. LCD screens advertise the products in every aisle. </strong></p>
<p>These advertisements can change with the displays. </p>
<p><div class="image-container"><div class="image"><img src="http://static1.businessinsider.com/image/52c5a07469bedd7128bd3b55-703-370/screen%20shot%202014-01-02%20at%2012.22.21%20pm.png" border="0" alt="walmart LCD screen in aisle" width="800" /><p class="source"><a href="http://www.displaysearchblog.com/wp-content/uploads/2008/09/walmart-digital-signage-080918.png">PRNewswire </a></p></div></div></p>
<p><strong>8. Rice is sold in giant, open vats. </strong></p>
<p>Customers just scoop their quantity into a bag, similar to produce in America. </p>
<p><div class="image-container"><div class="image"><img src="http://static4.businessinsider.com/image/52c5b33569bedd6a55bd3b54-839-629/rice-walmart-china.png" border="0" alt="rice walmart china" width="800" /><p class="source"><a href="http://www.flickr.com/photos/mckln/2143111607/sizes/l/">Wootang01 on Flickr</a></p></div></div></p>
<p><strong>9. There are luxury candy sections. </strong></p>
<p>Flickr user David Thiel was surprised at the impressive selection when he visited a store in Shanghai. </p>
<p><div class="image-container"><div class="image"><img src="http://static2.businessinsider.com/image/52c5b97d69bedd1e60bd3b59-512-666/screen%20shot%202014-01-02%20at%202.08.12%20pm.png" border="0" alt="candy store shanghai china " width="800" /><p class="source"><a href="http://www.flickr.com/photos/41126583@N00/2276698761/in/photolist-4tbFdV-4tfF9y-4tfG3u-4tfHjb-4tfHLq-4tfKbG-4tfKP1-51NHPb-5Ecvmj-7vnU1v-7M5DA2-9P7K1M-9PaAbb-9PaA1J-9PUkep-9PQxZU-9PQtm1-9PQxpm-9PMFZr-9PMz8V-9PQxwJ-9PQx7Y-9PQr4G-9PMENz-9PQrmC-9P7Kfv-9PQxgm-9P7Kpe-9PWNGL-9PQqF5-9PQqwd-9PMGp8-9PQqUy-9PZpvL-9PMzta-9PMzM6-9PMHRr-9NHWcw-9NF9WV-9NJ2om-9NJ4fy-9NFe4V-9NHTwf-9NHWA3-87ZtWa-9PQusA-9PQyPb-9PMD3v-9PQuRh-9PQzb3-9PboHA">davidthiel on Flickr </a></p></div></div></p>
<p><strong>10. Foods are mostly kept in the open instead of being packaged. </strong></p>
<p>"The Chinese are more focused on eating natural-looking food straight from a farm," Brian Sozzi, chief equities strategist at Belus Capital, told us. "It doesn't make sense to necessarily package a piece of steak at a Wal-Mart China."</p>
<p><div class="image-container"><div class="image"><img src="http://static4.businessinsider.com/image/52c5bafa69bedd8e60bd3b5d-862-492/screen%20shot%202014-01-02%20at%202.15.33%20pm.png" border="0" alt="walmart china shopping" width="800" /><p class="source"><a href="http://www.flickr.com/photos/jsolomon/857353415/sizes/o/in/photolist-2iLair-2iQxt3-2iQyYQ-2wCHkt-2Gu69T-2Gu6W8-2Gu77v-2Gu7uH-2Gu7GH-2Gu7UR-2Gu8jM-2Gu8KM-2Gyny9-2Gyo13-2GyoaL-2GyorQ-2Gyp1u-2GyqeJ-2GyqEu-2GyqTo-4nqTL4-4tbBUg-4tbCRi-4tbDfX-4tbEGB-4tbFdV-4tfF9y-4tfG3u-4tfHjb-4tfHLq-4tfKbG-4tfKP1-51NHPb-5Ecvmj-7vnU1v-7M5DA2-9P7K1M-9PaAbb-9PaA1J-9PUkep-9PQxZU-9PQtm1-9PQxpm-9PMFZr-9PMz8V-9PQxwJ-9PQx7Y-9PQr4G-9PMENz-9PQrmC-9P7Kfv/">JSolomon on Flickr</a></p></div></div></p>

10 Ways Shopping At Wal-Mart In China Is Completely Different Than It Is In The US

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559d062b6bb3f78e4642a3ba-1200-924/kids-playing-children-chinese-chess-2.jpg" border="0" alt="kids playing children chinese chess"><p class="source"><span><a href="http://pictures.reuters.com/Package/2C0BF1OG58UWQ#/SearchResult&amp;ALID=2C0BF1OG58UWQ&amp;VBID=2C0BX4M164YO&amp;POPUPPN=11&amp;POPUPIID=2C0BF1OGSFCZV">Reuters/China Daily China Daily Information Corp - CDIC</a></span></p><p class="caption">Children cool off on a 20 square meter Chinese chess board, at a water park in Chongqing municipality.</p></img></div><p></p></div></div>Before markets open on Wednesday, here is what you need to know.</p><p><strong>Chinese stocks are in free fall. </strong><a href="http://www.businessinsider.com/shanghai-composite-sell-off-july-8-2015-7">The Shanghai Composite crashed 5.9%</a>. Wednesday's loss has Chinese stocks down a tremendous 32% from the June 12 high. Off the mainland, Hong Kong's Hang Seng tumbled 5.8%.</p><p><strong>Lots of Chinese stocks were suspended from trading. </strong><a href="http://www.businessinsider.com/nearly-half-of-the-chinese-stock-market-wont-be-trading-today-2015-7">Approximately half of all share listings in Shanghai and Shenzhen were frozen voluntarily</a>. According to the South China Morning Post, the companies requested the trading halt for "some important project in preparation." The total market cap of the stocks that were halted is about $2.2 trillion.</p><p><strong>Beijing expanded its rescue plan. </strong>"The stock markets now are full of panic emotion and the number of irrational selling has been increasing. This has led to intense liquidity in the market," said Deng Ge, spokesman of the China Securities Regulatory Commission. The South China Morning Post reports, <a href="http://www.businessinsider.com/china-is-expanding-its-rescue-plan-2015-7">the regulatory agency announced it will increase its purchases of small and medium sized stocks</a> and make sure brokerage firms have ample liquidity. In addition, the CSRC raised the margin requirements on China Security 500 index futures to 20% from 10%, and will increase that number tomorrow to 30%.</p><p><strong>Greece has requested a 3-year bailout program and needs a deal by Sunday. </strong>"The stark reality is that we have only five days left ... Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week," noted European Council President Donald Tusk. Greece must submit a list of reforms on Thursday, and if its creditors agree, negotiations will continue on Saturday. <a href="http://www.businessinsider.com/greece-has-until-sunday-for-a-debt-deal-2015-7">The failure by Greece to come to terms with its creditors by Sunday would spell the end of Greece's time in the euro currency bloc</a>. Greece's 2-year yield is higher by 161 basis points at 56.55%.</p><p><strong>Japan's current account surplus grew. </strong>Japan's current account surplus expanded to 1.88 trillion yen ($15.36 billion), the widest since 2007. The number was the <a href="http://www.reuters.com/article/2015/07/08/us-japan-economy-current-idUSKCN0PI03020150708">11th straight surplus</a>, and was aided by continued weakness in oil prices. Japan's yen is stronger by 0.8% at 121.58 per dollar.</p><p><strong>Wednesday is the <a href="http://www.businessinsider.com/q2-earnings-season-preview-2015-7">unofficial start to earnings season</a>. </strong>Alcoa is set to release its second quarter results following today's closing bell. Wall Street is expecting adjusted earnings of $0.22 per share on revenue of $5.81 billion.</p><p><strong>The Container Store posted a mixed quarter. </strong>The retailer lost $0.11 per share, topping the $0.12 loss that was expected. However, <a href="http://www.wsj.com/articles/container-stores-loss-widens-sharply-on-higher-spending-and-stronger-dollar-1436305128">losses grew from the previous quarter's $0.07 per share decline</a>. Revenue slipped 2.1% to $169.80 million, missing the $173.50 million that Wall Street was anticipating.</p><p><strong>Barclays CEO is out. </strong><a href="http://www.businessinsider.com/barclays-ceo-antony-jenkins-leaves-2015-7?r=UK">Antony Jenkins will step down from his role as chief executive officer</a> later this month after the board decided "a new set of skills were required for the period ahead." Executive Chairman John McFarlane will serve as interim CEO while the board searches for a replacement.<strong><br /></strong></p><p><strong>Stocks around the world are mixed. </strong>France's CAC (+0.7%) leads the gains in Europe. Aside from the carnage in China and Hong Kong, Japan's Nikkei (-3.1%) paced the declines in Asia. S&amp;P 500 futures are lower by 15.75 points at 2058.00.</p><p><strong>US economic data flows. </strong>Crude oil inventories are due out at 10:30 a.m. ET, and will be followed by the FOMC minutes at 2:00 p.m. ET and consumer credit at 3:00 p.m. ET. Treasury will reopen $21 billion 10-year notes at 1:00 p.m. ET. The US 10-year yield is down 4 basis points at 2.22%. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/new-air-force-one-tour-boeing-private-jet-2015-5">Take a tour of the $367 million jet that will soon be called Air Force One</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

10 things you need to know before the opening bell

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/585bf87bf10a9a98468b46ef-1869/undefined" alt="trump carrier factory" data-mce-source="Mike Segar/Reuters" /><p class="source"><span>Mike Segar/Reuters</span></p></div><p></p></div></div>On Thursday, <a href="http://www.businessinsider.com/trump-reportedly-considering-5-tariff-on-imports-2016-12">CNN reported that President-elect Donald Trump's administration</a> is considering imposing a 5% tariff on all imports into the United States.</p><p>While the decision is not final, sources told CNN the tariff <a href="http://www.businessinsider.com/trump-reportedly-considering-5-tariff-on-imports-2016-12">could be implemented through an executive order</a> in the early days of the Trump presidency.</p><p>The move is not surprising given that Trump made free trade one of the central topics of his campaign after criticizing China, <a href="http://www.reuters.com/article/us-usa-election-trump-trade-idUSKCN0WQ0WG">Mexico</a>, and <a href="http://www.nytimes.com/2016/03/08/business/international/unease-after-trump-depicts-tokyo-as-an-economic-rival.html">Japan</a>.</p><p>He suggested putting a <a href="http://www.businessinsider.com/donald-trump-45-tariff-chinese-imports-china-2016-1">45% tariff</a> on Chinese imports, said he would declare China <a href="http://www.bloomberg.com/news/articles/2016-11-09/trump-to-brand-china-currency-manipulator-treasury-veteran-says">a currency manipulator</a> on his first day in office, proposed taxing imports from Mexico, argued in favor of "<a href="http://thehill.com/policy/finance/271723-trump-vows-to-rip-up-all-trade-agreements">ripping up</a>" trade deals, and called the T<span>rans-Pacific Partnership, or TPP, <span>"</span><a href="http://www.bloomberg.com/politics/articles/2016-06-28/trump-channels-brexit-in-anti-trade-speech-at-pennsylvania-factory">a rape of our country</a>.<span>"</span></span></p><p><span><span>After the election, Trump <a href="http://www.businessinsider.com/trump-trade-war-enemy-2016-12">has said in victory rallies that</a> for trade "you have to look at it almost as a war," asking "w<span>ho the hell cares if there's a trade war?" </span></span></span></p><p><span><span><span>Specifically for China, Trump said the country is committing "<span>the greatest jobs theft in the history of the world."</span></span></span></span></p><p><span><span>W<span>illem Buiter, chief economist at Citi, wrote in a note to clients before report of the new tariff that</span></span></span> protectionist trade policies might spark a global trade war, "<span>which could easily trigger a global recession."</span></p><p><span>Deutsche Bank has also addressed the negative risks of the Trump trade agenda. A </span>team from the firm wrote in a note on Friday that "the biggest threat to growth is a possible protectionist turn, which could depress global trade and even trigger trade wars."</p><p>In addition to the tariff talk, <a href="http://www.businessinsider.com/trump-peter-navarro-china-national-trade-council-2016-12">Trump also appointed Peter Navarro</a> as head of the new National Trade Council on Wednesday. Navarro has been a long-time critic of China, writing a book entitled "Death By China."</p><p><span>While these moves </span>do not signal a coming collapse in international trade, they do suggest that Trump's more protectionist tendencies will come out during his time in office.</p><p>Additionally, a tariff of any kind is likely to spark a reaction from major US trading partners such as China. <a href="http://www.wsj.com/articles/china-weighs-response-to-new-u-s-trade-foe-1482401351">Chinese officials are reportedly weighing options</a> on how to respond to hostile trade moves by Trump.</p><p>Given the moves by Trump, we've broken down just how a protectionist trade scenario could impact the US economy and the geopolitical order.</p><h2><span>A macroeconomic drag</span></h2><p><span>A 5% tariff may cause some impacts to the US economy - higher costs, a slight drag to GDP growth - but economists are worried about what it signals going forward.</span></p><p><span>Michael Gapen, a chief US economist at Barclays, has estimated the economic drag from tariffs on imports from China and Mexico may have on US GDP growth.</span></p><p><span>Assuming a 15% tariff on Chinese imports and a 7% tariff on Mexican imports - modestly above their current levels of 2-10% depending on the good - Gapen estimated that the US would see a 0.5% reduction in annual GDP growth in just the next year. </span></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/567837eb72f2c151028b7288-2400/rtr3ma73.jpg" alt="china factory" data-mce-source="Stringer/Reuters" data-mce-caption="Workers process laptop accessories at a factory in Dazu, Chongqing Municipality, April 22, 2014." /><p class="source"><span>Stringer/Reuters</span></p><p class="caption">Workers process laptop accessories at a factory in Dazu, Chongqing Municipality, April 22, 2014.</p></div><p></p></div></div></p><p><span>Meanwhile, Buiter said that Citi estimates trade and other policy uncertainties could be a 1% drag on US GDP over the next year.</span></p><p>And should the president-elect eventually decide to follow through with any of these policies, the US risks retaliatory measures from other countries.</p><p>"If tariffs are more punitive and lead to a public trade spat with China, markets will get nervous, especially if a sharp, retaliatory, [Chinese yuan] depreciation looks like a realistic response," Ajay Rajadhyaksha, head of macro research at Barclays, said. </p><p>If this pattern is followed by other countries, it could lead to a downward spiral, or litigation at the World Trade Organization.</p><p>"Depending on the specific measures, retaliatory action from elsewhere could be expected, while the risk of trade and currency wars could grow," said Janet Henry, chief global economist at HSBC.</p><h2><span>Making it more expensive for consumers</span></h2><p><span>As for how this affects individual Americans, an increase in tariffs could be passed through by companies in the form of higher prices. </span></p><p><span>Parts for consumer items are made abroad. And so, increasing tariffs could make it <a href="http://www.businessinsider.com/inflation-pressures-under-president-trump-2016-11">more expensive to import</a> these parts for goods. In order to protect corporate profits and margins, companies could hike prices - which is not ideal for consumers.</span></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/585bf8cdf10a9a23008b4d03-911/undefined" alt="Best Buy TV shopping deal extended warranty" data-mce-source="Aaron P. Bernstein/Getty Images" /><p class="source"><span>Aaron P. Bernstein/Getty Images</span></p></div><p></p></div></div></p><p><span><span>A crucial thing to consider here is that this type of price increase is not caused by the virtuous wage and price increase cycle, but rather an exogenous shock to prices without a boost to the labor market. </span></span><span><span>In plain English, that means</span><span> that while parts manufactured in China instantly becomes more expensive for Americans under tariffs, wages do not necessarily go up the corresponding amount to offset this cost increase.</span></span></p><p><span>Theoretically, companies could avoid tariffs by producing more in the US. The problem here is, however, that labor is more expensive in America, so even if companies bring production to the US, the increased labor costs could push up prices, too.</span></p><h2><span>A 'nail in the coffin' of the post-WWII economic order </span></h2><div title="Page 6"><p><span>Not only could Trump's moves impact everyday consumers in the US, but they could upend macroeconomic polices that have been in place for more than half a century. As Buiter notes, these policies have increased worldwide prosperity and been positive developments for the US. </span></p><p><span>From the Citi economist's note (emphasis added):</span></p><p style="padding-left: 60px;"><span>"We stress the potential multipliers of changes in the US position on international trade: the US has been the champion of free trade and open borders for decades. A retreat from globalization by the US would likely lead to reciprocal actions from other countries, and reinforce the latest shift towards de- globalization and <strong>could be another nail in the coffin of the liberal global economic world order that has supported prosperity since 1948.</strong>"</span></p><p>Taking it a step further, now that Trump has been elected president, <span>the possibility of passing the<span> TPP, the landmark free-trade agreement that aims to slash tariffs and promote economic growth among 12 nations in the Pacific Rim excluding China,</span> has effectively dropped to nil.</span></p><p><span>(President <span>Obama's administration <a href="http://www.businessinsider.com/obama-administration-suspends-efforts-to-win-approval-for-the-trans-pacific-partnership-2016-11">has already suspended its efforts</a> to win congressional approval for the deal before Trump takes office, saying that its fate is up to the president-elect and Republican lawmakers.)</span></span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/582612c646e27a735a8b5767-1500/japan japanese prime minister shinzo abe china chinese president xi jinping.jpg" alt="Japan Japanese Prime Minister Shinzo Abe China Chinese President Xi Jinping" data-mce-source="REUTERS/Kim Kyung-Hoon" data-mce-caption="Japan's Prime Minister Shinzo Abe (L) shakes hands with China's President Xi Jinping during a welcoming ceremony of Asia Pacific Economic Cooperation (APEC) forum, inside the International Convention Center at Yanqi Lake, in Beijing, November 11, 2014." /><p class="source"><span>REUTERS/Kim Kyung-Hoon</span></p><p class="caption">Japan's Shinzo Abe and China's Xi Jinping.</p></div><p></p></div></div> </span></p><p><span>And that could have major implications for the future of the <a href="http://www.businessinsider.com/tpp-deal-is-probably-dead-after-trump-victory-in-presidential-election-2016-11">economic and geopolitical order in Asia Pacific</a>, given that the deal is <span>arguably more about the </span><a href="http://www.businessinsider.com/will-tpp-pass-shinzo-abe-obama-2016-9">United States' long-term position in Asia</a><span> than about the near-term financial advantages.</span></span></p><h2>Americans want jobs</h2><p>Mainstream economists generally <a href="http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_0dfr9yjnDcLh17m">agree</a> that free trade is "<a href="https://commons.wikimedia.org/wiki/File:EffectOfTariff.svg">good</a><span>" for an economy in the long-run (even though within an economy there will be some people who benefit less, particularly in the short-term), while trade-restrictive measures <a href="http://www.investopedia.com/terms/t/tariff.asp?layout=infini&amp;v=5B&amp;orig=1&amp;adtest=5B">hurt</a> consumers.</span></p><p><span><span><span><span>However, voters across developed economies believe that free trade actually hurts their countries, which is likely a reflection of their personal experiences. </span></span></span></span></p><p><span><span><span><span>In the US, 89% of Americans think that the loss of US jobs to China is a somewhat or very serious issue, a</span><span>ccording to Pew Research statistics <a href="http://www.businessinsider.com/protectionism-near-term-economic-problems-2016-5">previously cited by</a> Bank of America Merrill Lynch's Ethan S. Harris and Lisa C. Berlin. </span></span></span></span></p><p><span><span><span><span>Moreover, only 46% of Americans think NAFTA was good for the economy. </span></span></span></span><span>But it's not just Americans dreaming of a manufacturing comeback; for example, </span><a href="http://www.latimes.com/world/asia/la-fi-japan-tpp-20160705-snap-htmlstory.html">Japanese farmers</a><span> have been staunchly against the TPP deal.</span></p><p><span><span><span><span><span>There actually is some empirical evidence to back up those grievances. Back in January, </span><a href="http://www.nber.org/papers/w21906">labor economists David Autor, David Dorn, and Gordon Hanson published a paper</a><span> showing that increased trade with China did cause some big problems for US workers.</span></span></span></span></span></p><p>From the paper's meaty abstract (emphasis ours):</p><p style="padding-left: 60px;">"China's emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside the heralded consumer benefits of expanded trade are substantial adjustment costs and distributional consequences. ... <strong>Adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences.</strong> Exposed workers experience greater job churning and reduced lifetime income. At the national level, <strong>employment has fallen in U.S. industries more exposed to import competition, as expected, but offsetting employment gains in other industries have yet to materialize."</strong></p><p>Moreover, most of the economic gains from globalization have been for the middle class in emerging markets - not the middle class in developed markets, such as the US.</p><p>Below is o<span>ne of the more popular charts illustrating this, from economist Branko Milanovic, via Bank of America Merrill Lynch's Ajay Singh Kapur and Ritesh Samadhiya back in June.</span></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58234488691e8877098b5abe-828/screen_shot_2016-10-27_at_1.58.53_pm.png" alt="screen_shot_2016 10 27_at_1.58.53_pm" data-mce-source="BAML" /><p class="source"><span>BAML</span></p></div><p></p></div></div></p><p>Although both Trump and Hillary Clinton zeroed in on workers' anxieties over job losses during their campaigns, it's important to note that at least some of America's job losses are not due to trade, but rather due to automation. And crucially, automation not only hits manufacturing, but also affects jobs that require advanced degrees, such as neuroradiology.</p><p><span><span>"From a political perspective, I don't think the focus on trade is misplaced. It's effective. Because it has an 'other,'" Alexander Kazan, strategist at Eurasia Group, <a href="https://twitter.com/EGFound/status/777878805348245504">said in a video for the Eurasia Group Foundation</a>. "When you talk about technology, it's much more amorphous. It's this sense that we all lose. So I think politically it's less effective."</span></span></p><h2>Depends on how much is done</h2></div><p><span>Ultimately, a lot will depend on how much protectionist policy Trump is able to pass when he steps into the Oval Office.</span></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5825f0e85124c9e56b7e7fe6-800/senior-saudi-prince-says-trump-shouldnt-scrap-iran-deal.jpg" alt="Donald Trump meets with Speaker of the House Paul Ryan on Capitol Hill. REUTERS/Joshua Roberts" data-mce-source="Thomson Reuters" data-mce-caption="U.S. President-elect Trump meets with Speaker of the House Ryan on Capitol Hill in Washington" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">U.S. President-elect Trump meets with Speaker of the House Ryan on Capitol Hill in Washington</p></div><p></p></div></div></p><p><span>Some observers say its unclear how much of the anti-trade rhetoric Trump genuinely intends to carry out. Additionally, there is a <a href="http://www.businessinsider.com/donald-trump-trade-tpp-nafta-2016-7">strong contingent</a> within Trump's own party that is supportive of free trade.</span></p><p><span></span><span>The possible tariff and appointment of Navarro, however, are signs that protectionist trade could play a major factor in the Trump policy agenda.</span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/fed-federal-reserve-raised-rates-janet-yellen-explain-why-2016-12">Watch Yellen explain why the Federal Reserve decides to raise rates</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9iN245ODE6FzNRBdC0_U12Pgj2-fdpNL" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '9iN245ODE6FzNRBdC0_U12Pgj2-fdpNL',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

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