Let's consider the key events for this week's trading
No-development zones have been approved in China’s 15 regions
For up to 15 regions and provinces of China red lines have been recently drawn up, which are going to make huge parts of the country’s territory unavailable to economic development. That’s what the environment ministry uncovered on Monday.
Initially, such a red line for ecological protection was first considered in 2011 amid worries that a long period of irrational development had put this Asian country’s environment at huge risk.
The newly-unveiled measure is expected to restrict or totally forbid industrial development in forests, wetlands, national parks as well as protected nature zones.
In 2017, the Chinese authorities urged all of its regions as well as provinces to have such systems implemented by the end of 2020. By the way, the 15 newly-approved schemes include such areas as Tianjin, Hebei and Beijing. As for other areas one should mention Ningxia, a distant desert region in the northwest as well as 11 other provinces, not to mention the Yangtze river.
The Chinese land covered by the initiative currently accounts for 610,000 square kilometers. The given area occupies approximately a quarter of China’s total territory.
The country’s environment minister, Li Ganjie told in an address the previous week that China would eventually do its best to protect as much as 25% of its territory with the help of this "red line" initiative.
The Asian country is currently struggling to bring mind-blowing amounts of contaminated farmland back to life because it tries to keep national agricultural output as high as possible, while simultaneously taming excessive fertilizer as well as pesticide use, to say nothing of overgrazing.
Providing enough food for a huge population, which accounts for a fifth of the world’s population is a serious challenge for the Chinese government, while a huge part of the country is affected by pollution.
There were no major moves during the Asian trading session, however we have some events today, which may affect the sentiment in the market.
The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.