WH Open To Short-term Hike In Debt Limit

The US government shutdown because they are lack of money to operate; however, what are the other impacts we may concern?

Firstly, as a Chinese I would concern about the loan we lent to the US. China and Japan have warned US on default. Especially my country is US’s biggest creditor. If the government do not take action, they would hit the debt ceiling on Oct. 17th.

Secondly, the public services now shut down in US. This is very inconvenient for the US civilians. Also, a lot of civilian workers are now idled. This would let the country stuck in the state of inefficiency and would lost more money. The idled workers cannot get salary anymore is an issue too.

Thirdly, the things happening in the political field always have a influence on economics. As a result, the stock price falls and the traders in Wall Street feel anxious.

These are the main impacts. I read news from Chinese media as well, China’s national holiday started from Oct 1st to Oct 7th, a lot of Chinese people choose to travel. Because of government shutdown, people avoided coming to USA which cause the US lost more money.

cites:

“No End in Sight to US Government Shutdown.” VOA. N.p., n.d. Web. 08 Oct. 2013. <http://www.voanews.com/content/no-end-in-sight-to-us-government-shutdown/1764463.html>.

“5 Things to Know about Government Shutdown on Tuesday.” USA Today. Gannett, n.d. Web. 08 Oct. 2013. <http://www.usatoday.com/story/news/politics/2013/10/08/government-shutdown-five-things-tuesday-oct-8/2939473/>.

“Washington Shutdown Must End, China Tells the US: Finance Minister Demands ‘concrete Measures’ to Avoid Catastrophic Default.” Mail Online. N.p., n.d. Web. 08 Oct. 2013. <http://www.dailymail.co.uk/news/article-2449301/Washington-shutdown-end-China-tells-US-Finance-minister-demands-concrete-measures-avoid-catastrophic-default.html>.

“China and Japan Warn US on Default.” Financial Times. N.p., n.d. Web. 08 Oct. 2013. <http://www.ft.com/cms/s/0/a73a3728-2f41-11e3-ae87-00144feab7de.html>.

“外媒在黄金周审视中国游客 美旅游业错失商机.” 外媒在黄金周审视中国游客 美旅游业错失商机. N.p., n.d. Web. 08 Oct. 2013. <http://finance.cnr.cn/gundong/201310/t20131008_513765636.shtml>.

The first day of October was China’s national day, so I picked a big news happened in China, China(Shanghai) Free Trade Zone launched on 28th September.

This pilot zone is seen as an important reform attempt of China after Deng Xiaoping, which shows the government’s determination of easing the restrictions of investment. For sure it would be another significant economic reformation of China, not only can it attract more foreign capital but it also can push the local development. A lot of people and companies have showed their interest in it. At least now it pushes real estate grow.

Shanghai’s pilot zone recalls Deng Xiaoping’s flagship regional experiment.This experimental zone is an attempt to catch up with the fast grow economy. As a matter of fact, the zone is not newly designed, but the new government made it come true. The details are not showed by the government yet, but we have known that the 29-square-kilometer-zone is expected to allow banks and other businesses within its boundaries to experiment in areas that are tightly controlled in China, including loosening regulation of interest rates and full convertibility of nation’s currency.

However, I also read news about some analysts said that the pilot zone would have a hard time competing with Hong Kong. As Hong Kong is already seen as a financial center of Asian. Now we are looking forward to the future of this free-trade zone, hopefully my homeland will gain another big success.

“Shanghai’s New Free Trade Zone Opens.” DW.DE. N.p., n.d. Web. 03 Oct. 2013. <http://www.dw.de/shanghais-new-free-trade-zone-opens/a-17124228>.

“Free Trade and Free Speech in Shanghai.” The New Yorker. N.p., n.d. Web. 03 Oct. 2013. <http://www.newyorker.com/online/blogs/currency/2013/10/free-trade-and-free-speech-in-shanghai.html>.

Sudworth, John. “Shanghai Free-trade Zone Launched.” BBC News. BBC, 29 Sept. 2013. Web. 03 Oct. 2013. <http://www.bbc.co.uk/news/business-24322313>.

Barboza, David. “Experimental Free-Trade Zone opens in Shanghai”. The New York Times, 29 Sept. 2013. Web. 03 Oct. 2013.<http://www.nytimes.com/2013/09/30/business/international/experimental-free-trade-zone-opened-in-shanghai.html?_r=0>

“上海自贸区能带来哪些实惠？.” DW.DE. N.p., n.d. Web. 03 Oct. 2013. <http://www.dw.de/上海自贸区能带来哪些实惠/a-17122109>.