The Best Reads of the Week From Caixin

Dear readers,

Our in-depth, on-the-ground reporting in Kenya and Tanzania found that private Chinese manufacturers have been quietly investing huge sums in Africa, many of them hiring mostly locals and producing goods that are sold on the continent. Our reporters spoke to Chinese companies and their staff there, and found out how they are adapting to local business practices and cultures.

As the U.S. moves closer to a major corporate tax cut, China and other countries are weighing their policy responses to stay attractive as investment destinations. In China’s case, it may have to raise personal income taxes and finally introduce a real estate levy to create room to cut corporate taxation.

As stringent new rules sweep over China’s booming microloan sector, some of these lenders are considering shifting to other less regulated businesses such as installment payments and supply-chain financing. Some smaller, less funded players might even throw in the towel as new regulations will probably cut profit margins to razor-thin levels.

The IMF’s latest assessment of China’s financial system, conducted once every five years, shows once more that Beijing must prioritize financial stability over high economic growth, and policies should align with that goal. China’s central bank responded that the IMF failed to capture the full picture of the state of the country’s financial system, and that it is unlikely that nonperforming loan ratios are underestimated.

Hiccups in the transition to natural gas from coal in many northern cities — mainly due to gas shortages and poor planning — have left millions without heat in freezing temperatures. Amid growing public dissatisfaction, the environmental ministry has backpedaled on its aggressive push and said households can resume using coal until gas supplies are connected.

These are five stories that I don’t want you to miss. Please share your comments on The Weekender section and on our other coverage at news@caixin.com.

And when you’re done perusing these must-read stories, check out Caixin’s weekly digital magazine.

Kind regards,

Doug Young

Managing Editor

Africa Takes a Seat in the ‘Made in China’ Workshop

New generation of private Chinese manufacturers looks for opportunities on distant continent, generating billions of dollars in economic activity

Photo: Visual China

China Faces Fallout From Trump’s Tax Overhaul

U.S. legislation may add pressure on government to cut corporate charges, raise personal income tax and finally impose real estate levy

China may have to raise its personal income tax to create room for a reduction in its corporate tax as it seeks to stay attractive to investors. Legislation going through the U.S. Congress could lead capital to flow back to the United States. Photo: Visual China

Microlenders Choose Flight Over Fight

Tighter regulations force lenders to switch to other businesses, or exit

Online lending services are easy to find on smartphone app stores, but their ranks might be thinned as some listed companies had already shelved their plans to expand into the business now that the government has come up with more stringent regulations for the industry. Photo: Caixin

IMF Warns China of Financial Risks

Policymakers must change ‘powerful incentives’ that drive local governments to boost debt, focus on growth

Attendees wait to begin an International Monetary Fund Committee (IMFC) plenary session at the International Monetary Fund (IMF) and World Bank Group Annual Meetings in Washington, D.C. on Oct. 14. Photo: Visual China

Farmers Freeze as Coal Cleanup Campaign Backfires

Natural gas shortage, scramble by local authorities to meet air quality targets leave thousands without winter heating

Some people left without heating by the government's recent actions have returned to burning coal, if they can access the fuel. One woman who has done so told Caixin that she had no other choice, faced with icy temperatures. Photo: Visual China