Sep 22, 2017

Chinese industrialization poses “unprecedented” threat

The Economist writes that China's industrial might may now threaten the architecture of the global economy, Photo: Eugene Hoshiko / AP

"Tensions over China's industrial might now threaten the architecture of the global economy," The Economist writes in its cover editorial:

  • "America's trade representative this week called China an 'unprecedented' threat that cannot be tamed by existing trade rules."
  • "At the heart of these tensions is one simple, overwhelming fact: firms around the world face ever more intense competition from their Chinese rivals."
  • Why it matters: "China is not the first country to industrialise, but none has ever made the leap so rapidly and on such a monumental scale."
  • "Little more than a decade ago Chinese boom towns churned out [zippers], socks and cigarette lighters. Today the country is at the global frontier of new technology in everything from mobile payments to driverless cars."

Go deeper

SoftBank to cut its stake to get T-Mobile's Sprint deal done

Illustration: Rebecca Zisser/Axios

T-Mobile and Sprint announced a revised merger agreement that will see SoftBank getting a smaller share of the combined company, while most shareholders will receive the previously agreed upon exchange rate. The companies said they hope to get the deal as early as April 1.

Why it matters: The amended deal reflects the decline in Sprint's business, while leaving most shareholders' stake intact and removing another hurdle to the deal's closure.

Trump indulges Wall Street with Milken pardon

Photo Illustration: Sarah Grillo/Axios. Photo: Chris Graythen/Getty Images

Donald Trump loves Wall Street shenanigans. Companies owned by him have declared bankruptcy six different times, and he was once sued alongside Mike Milken for participating in a scheme to artificially inflate junk-bond prices.

Driving the news: Trump pardoned Milken this week, with an official statement positively gushing over Milken's role in developing the wilder side of fixed-income capital markets.