The Australian, 21 Sep 2009
IF there were any doubts that 2009 was the year when China decided to use its financial clout to influence global economic policies and regulation, then a recent episode will have packed them away.
China's dissatisfaction with a raft of derivatives contracts signed by its large energy companies, mainly for hedging purposes, has been bubbling away for 12 months. Now they have effectively told six of the world's biggest investment banks to go and get stuffed. At the end of August, word got out that a group of China's state-owned enterprises had sent legal letters to the banks saying they reserved the right to withhold payments on commodities derivatives contracts they had bought.
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