China economy 2021: latest economic data about world’s second-largest economy
China is the world’s second-largest economy behind the United States Gross domestic product (GDP) growth rate, consumer price index, purchasing managers’ indices, trade and industrial production are all key indicators.
China’s Growth Set to Drive World Economy in Post-Pandemic Years
China will drive global economic growth in the coming years as the world recovers from an pandemic that’s killed 2.9 million people, the International Monetary Fund predicts. China will contribute more than one-fifth of the total increase in world’s gross domestic product in the five years through 2026, according to Bloomberg calculations based on IMF forecasts published Tuesday. Global GDP is expected to rise by more than $28 trillion to $122 trillion over that period, after falling $2.8 trillion last year in the biggest peacetime shock to output since the Great Depression.
IMF urges China to reduce corporate debt risk made worse by heavy pandemic lending
Chinese financial authorities should stop providing such easy access to capital, especially to ‘riskier borrowers’, International Monetary Fund says China made it easier for businesses to borrow during the pandemic to keep them and the economy afloat, and loans went to many struggling firms So far the approach has been moderate. Two weeks ago, the People’s Bank of China kept the loan prime rate – a benchmark for lending costs – unchanged for the 11th straight month. Evan Papageorgiou, the IMF’s deputy chief of global markets monitoring and analysis, said on Tuesday that it was “very important to unwind the implicit guarantees embedded in the system”. “This transition is urgently needed to alleviate distortions in credit allocation and to limit further growth in risky corporate debt,” said Papageorgiou. “It is a very delicate act but an urgent one in order to achieve financial stability.”
China says Covid-19 jabs are safe for people with allergies amid vaccine push
Health official tells state television that serious reactions like anaphylactic shock have occurred at a rate of less than 1 in 100 million Vaccination roll-out has fallen behind those of other countries, and Beijing wants 40 per cent of the population immunised by June In pursuance of China’s goal of reducing its carbon footprint, the National Development and Reform Commission (NDRC) and the Ministry of Industry Information Technology pledged in a statement last week to jointly investigate the issue of excess steel capacity and to ensure that crude steel production in 2021 declines. Zhuang wrote: “We (at TS Lombard) expect the NDRC and the Ministry of Ecology and Environment to introduce carbon-emission reduction targets that could result in more coordinated production cuts by local authorities in the second half of this year.” It suits Beijing to cut steel production and Washington would welcome it. It’s win-win.
How China and the US are heading for win-win cooperation on one issue, at least – steel
In pursuit of China’s goal of reducing its carbon footprint, regulators are moving to cut crude steel production This would also address US concerns about Chinese overproduction in the steel industry
How China’s digital currency push can boost fintech and the yuan’s global presence
The digital yuan offers stability and convenience that most popular cryptocurrencies do not It will allow for better regulation of fintech, improve risk management for businesses, simplify cross-border transactions and promote overseas circulation of the renminbi China has a huge advantage over other countries with its coming roll-out of the digital yuan – its large captive market. During the past two decades, China has moved from cash to cashless with breathtaking speed. China’s ratio of M0, or measure of cash, to M2, or measure of broad money – a metric used to gauge the usage of cash in the economy – is among the lowest in the world, declining from more than 10 per cent to around 4 per cent in the past two decades. In contrast, the United States’ M0/M2 ratio is around five times that of China’s
Digitisation of the yuan will also help simplify cross-border transactions and perhaps enhance the overseas circulation of the currency, especially Belt and Road Initiative-related trade and financing settlements. Beijing policymakers have been pushing the internationalisation of the renminbi for the past few years. As US-China relations have frayed, the need to reduce China’s reliance on the US dollar has become more urgent. In the long run, a digital yuan platform will aid in establishing the renminbi as the region’s predominant trade and reserve currency.
China eyes domestic yuan futures market to help boost currency internationalisation
Foreign-exchange market for the yuan would help investors better hedge against future exchange rate fluctuations by locking into a set price Creating a domestic centre for trading the yuan would be in line with China’s dual-circulation economic strategy to protect the country from external risks
China’s vast bitcoin mining empire risks derailing its climate targets, says study
China powers nearly 80% of the global cryptocurrencies trade, but the energy required could jeopardise its pledge to peak carbon emissions by 2030
Does Climate Change Mean China Will Face More Sandstorms?
2021 saw the worst storms in 15 years, raising fears for what a warmer, drier future has in store.
Why China is still clinging to coal
Over half the coal plants under development globally are in China, and the country isn’t slowing down, a new report found. China built the majority of the coal plants completed in 2020, and also accounted for 85 percent of the world’s new coal plant proposals, according to a report out Monday by Global Energy Monitor, an environmental research and advocacy group. That means instead of transitioning away from coal power — the source of nearly 40 percent of China’s carbon emissions — it is doubling down.
China’s Cosco Shipping expects profit surge
A bullish profit forecast from China’s largest container-shipping company sent its stock soaring and offered fresh evidence of how the industry is thriving thanks to robust global trade flows. Freight rates have surged over the past year, with shipping groups reaping the benefits of earlier capacity cuts combined with stronger-than-expected demand. And while the recent Suez Canal blockage has created huge logistical headaches, it hasn’t spoiled that positive picture. If anything, port backlogs and other snarls have provided further support to freight rates. Late Tuesday, Cosco Shipping Holdings Co. said it expected this year’s first-quarter net profit to total 15.41 billion yuan, or the equivalent of $2.3 billion. That compares with $44 million for the first three months of 2020.
China highlights success in fighting poverty and says world can benefit from the lessons it offers
Beijing says it can share its knowledge with other countries and adds they can also benefit from its Belt and Road Initiative Report comes as China faces increasing international criticism over Xinjiang, and one observer says highlighting successes is its way of countering criticism
China says it lifted millions from ethnic minority groups out of poverty in the past five years
Over 15.6 million people in the poorest parts of China, including the areas with the highest concentrations of ethnic minorities, have been lifted out of poverty in the past five years, according to a new government white paper.
Forbes billionaires list: Beijing ends New York’s seven-year run as home to most number of rich people, as surging stocks boost tech, manufacturing moguls
New York has lost its No. 1 ranking for the first time in seven years While Hong Kong added nine billionaires to the Forbes list last year, Li Ka-shing remains the city’s wealthiest resident
How China is Changing the Definition of Luxury
In the West, luxury was always associated with opulence and classical styles. But in China, a monumental shift has taken place. China’s young consumers are keen on expressing their individuality through one-of-a-kind luxury goods. Luxury is no longer just about the product; consumers now value unique, creative experiences. Social commerce means that the possibilities for selling and marketing are endless.
As China Targets H&M and Nike, Local Brands See Their Chance
Chinese rivals to Western names have improved quality and marketing. Now the country’s defiance could give them an edge with young patriots.
Holiday economy, Dingdong Maicai secures $700 million round: Retailheads
A three-day weekend witnessed increased spending on domestic travel and entertainment. Online grocery delivery platform Dingdong Maicai secured a hefty $700 million round. Re-commerce site Zhuanzhuan received $390 million in funding, while rival Xianyu expects gross merchandise volume to surge 70% year on year in 2021. A merger between power bank companies Jiedian and Soudian will create the largest player in the sector.
Which Chinese Video-Sharing Site Is Right For Your Brand?
Douyin, Kuaishou, and Bilibili are undeniably the top emerging platforms in China today, but which is the best one for your luxury business? Douyin, Kuaishou, and Bilibili are undeniably the top emerging platforms in China today, and it is clear that they all offer considerable opportunities for brands wanting to reach target audiences. However, the three platforms are incredibly different in many ways, especially in this fast-changing post-pandemic environment.
Xi speech reminds cadres that China is staying the course on its innovation drive
The decision to publish this nearly three-year-old speech at this point in time is significant: It came just four days after the formal approval of the 14th Five-Year Plan (FYP), which places innovation front and center of China’s modernization drive (see next entry). The speech is a powerful reminder to cadres that the government’s ambitions of turning China into a “world S&T superpower” (世界科技强国) and achieving tech self-reliance have long been set in stone. The message of the speech and the FYP is clear: China’s self-sufficiency drive is a strategic pillar of China’s national development that will be pursued at all costs. Advancing S&T is a matter of both national security and long-term economic growth. But the road ahead remains long and arduous and will require intelligent sectoral policies that address China’s S&T shortcomings and vulnerabilities.
China earthquake survey doubles Beijing’s high-risk fault lines
Study uses new technique to identify ‘strongly active’ faults, beneath some of the city’s fastest developing areas Chinese capital has a long history of earthquakes but its oldest structures, including the Forbidden City, were found to be at low risk of activity
China one-child policy: can dropping limits increase birth rates?
China’s one-child policy started in the 1980s to slow population growth, with some exemptions eventually coming about. In recent years it’s been relaxed to allow families’ to have two children. But, faced with an ageing population, the north-east could be the first region to drop restrictions all together. However, it’s uncertain if this will encourage young families to have more babies, as China Correspondent Stephen McDonell has been finding out.
China-EU relations facing challenges, Xi tells Germany’s Merkel
China’s President Xi Jinping on Wednesday told German Chancellor Angela Merkel Sino-EU relations were facing “various challenges” and he hoped the 27-nation bloc could “independently” make correct judgements, Chinese state media reported. In a phone call with Merkel, who has led Germany, the EU’s biggest economy, since 2005, Xi said the EU and China should “respect each other” and “eliminate interference,” according to a readout from the official Xinhua news agency, without naming the source of such interference.
Is the China-Japan Thaw Over?
A year after what was supposed to be a landmark in the renewed relationship, rhetoric from both Beijing and Tokyo is increasingly frosty. At stake is a fragile thaw in China-Japan relations that began under former Prime Minister Abe Shinzo. China-Japan relations were in a deep freeze throughout much of Abe’s nearly eight-year stint at prime minister, thanks to his flirtation with historical revisionism (including a controversial visit to Yasukuni Shrine in 2013). Yet even while Abe became a champion of the resurrected Quad and the Trans-Pacific Partnership – both seen in Beijing as “anti-China” – he simultaneously managed a tentative warming in relations with Beijing. The process was supposed to culminate in Chinese President Xi Jinping’s first state visit to Japan in April 2020. But the trip was cancelled amid the COVID-19 pandemic – apparently with great reluctance on Tokyo’s part. The Japanese government was even accused of being slow to react to the pandemic out of fear of offending Xi before his planned visit. Now the window for such a visit may have closed. Like much of the Western world, Japan’s mood on China soured greatly over the course of 2020, amid an increasing crackdown in Hong Kong and aggressive, even insulting rhetoric from China’s diplomats around the world. That led to calls from Japanese lawmakers to scrap any plans to host Xi, even as Beijing itself expressed displeasure with Japan’s pushback. Wang’s own visit to Tokyo in November 2020 sparked protests and criticisms from Japanese legislators – even some within Abe and Suga’s ruling Liberal Democratic Party.
Japanese media have reported that a visit from Xi is unlikely in 2021, while holding out hope for a trip in 2022. That year marks the 50th anniversary of the establishment of diplomatic relations between China and Japan. Whether there will be much cause for celebration next year, however, is uncertain
Taiwan says ready to fight to the end should China attack
Foreign Minister Joseph Wu says US decision makers see possibility of conflict Taiwan will fight to the end if China attacks, its foreign minister said on Wednesday, adding that the United States saw a danger that this could happen amid mounting Chinese military pressure, including aircraft carrier drills, near the island.
Two Uyghur ex-officials sentenced to death
Two Uyghur former government officials in Xinjiang have been handed death sentences for carrying out “separatist activities”, a court said, as Beijing comes under increasing fire for its actions towards minority groups in the region.
Where Are the Douyin Generation’s Pop Stars?
Douyin and other short-video apps are compressing artists’ 15 minutes of fame into 15 seconds.
Returning to the Chinese city nearly one year after it emerged from lockdown, Sixth Tone finds life has superficially returned to normal. But residents’ emotional scars have yet to fade
Xinjiang cotton: Western brands blurred on China TV
Chinese TV stations have been blurring out Western brand logos in their programmes, in a show of support for China’s Xinjiang cotton campaign.
US considers joint boycott of 2022 Beijing Winter Olympics
Calls have grown for the US to back out of the Games because of alleged human rights violations in China State Department spokesman Ned Price stressed the need to work with allies so that any step the US takes will have more influence on Beijing
China’s Shrinking Families
The Demographic Trend That Could Curtail Beijing’s Ambitions Developments within the Chinese family could complicate the quest of the Chinese Communist Party (CCP) for power at home and abroad. The dissolution of the Chinese family is likely to undercut China’s economic potential in ways as yet unaccounted for in official calculations. A generation from now, China will likely be wealthier and more productive than it is today—but not nearly as wealthy and productive as its national directorate assumes it will be, thanks to these demographic headwinds. And if the waning of the family requires China to build a huge social welfare state over the coming generation, as we surmise it will, then Beijing will have that much less wherewithal at its disposal for influencing events abroad through economic diplomacy and defense policy. The winnowing of the family could shape future Chinese foreign and defense strategy. Policymakers will be wary of any actions that could lead to great casualties. Such losses could engender resistance and anger in a population composed largely of one-child families, constraining Beijing’s security policies in the decades ahead. Beijing has a superb cadre of well-trained demographers upon whom Chinese leaders rely for expert advice. But these experts cannot analyze what they cannot count, and China has never gathered data on the country’s extended family patterns. The coming transformation of the Chinese family is for now likely a blind spot for the CCP—and has all the makings of a “strategic surprise,” with the potential to throw Beijing’s great plans into disarray
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