China’s Vision 2035: From Beijing’s Forbidden City to Interconnected Eurasian Megacity
China’s Vision 2035 involves the country developing megacities that will help foster stronger regional trade and investment partnerships with ASEAN, the Belt & Road region, as well as developing economies across the world. In addition, Beijing’s measures to facilitate higher-quality domestic consumption growth and capacity for value-add manufacturing will be key to China’s rise as a moderately prosperous nation and a mature economy by 2035.
China’s economic recovery is going strong, despite a slight hiccup
The Chinese economy was hit by renewed coronavirus outbreaks before the Lunar New Year, but the effects were uneven and rather short-lived There are plenty of reasons to be optimistic about China’s economic outlook. Mobility is returning to levels seen in 2019, and China has started a vaccine drive Last but not least, a slower-than-expected end to the fiscal stimulus could reinforce growth expectations. China’s 2021 budget, announced at the National People’s Congress, implies a more accommodative fiscal stance than previously envisaged, given the large official deficit and special bond quota earmarked for local governments. Monetary policy, on the other hand, can afford to be less lenient as the financial authorities stay guarded against downside risks. Recent liquidity operations of the People’s Bank of China seem to support this view, but these have yet to be reflected in credit growth, which remained strong at the start of 2021. The “no sharp turn” policy stance was reiterated during the NPC, although targeted tightening of specific sectors, such as the property market, could be stepped up as financial risks build. I continue to believe any hike in interest rates or bank reserve requirement ratios will be unlikely this year, despite the modest upside risks to the growth forecast.
China debt: ‘under pressure’ local governments racked up US$2.3 trillion in hidden debt last year
China’s local governments had 14.8 trillion yuan (US$2.3 trillion) of hidden debt last year, according to Liu Lei, a senior researcher at the National Institution for Finance and Development Local governments were under pressure to increase infrastructure investments and shore up growth last year through the coronavirus pandemic
Intel to spend billions to revive chip manufacturing in the US and chase TSMC
New Intel foundry business will make chips for other companies CEO Pat Gelsinger says the company will invest US$20 billion in two new Arizona plants
China Stipulates Which Permissions Data-Hungry Apps Can Demand
For the first time, the country’s top internet authority has set rules for the personal information different types of apps can require from users in exchange for access to basic services.
The Future of E-Commerce: Five Post-Pandemic Trends Sellers Will Need to Know
Over 87 percent of e-commerce shoppers believe social media helps them make a shopping decision. Live-streaming is bound to become part of the U.S. shopping experience. Over 90 percent of consumers are now willing to pay for same-day or faster delivery.
China plans to be transport powerhouse, fueling GDP growth
Better roads, rail system will fuel GDP growth, close urban-rural gap
Developing | Xiaomi posts 261 per cent rise in quarterly profit after winning preliminary injunction against US investment ban
Smartphone giant Xiaomi’s fourth-quarter profit beat market estimates to reach US$1.3 billion Revenue in the December quarter hit US$10.8 billion
China antitrust: Tencent boss said to meet market officials as scrutiny widens
Tencent’s ubiquitous WeChat messaging app is expected to be the target of antitrust inquiries, according to sources Antitrust authorities in China have been ramping up scrutiny on Big Tech since late last year
Developing | Tencent posts 175 per cent rise in fourth-quarter profit, as it faces tighter scrutiny from Chinese regulators and seeks new growth opportunities
Tencent’s fourth-quarter profit beat estimates by 80 per cent, reaching US$9.1 billion The tech giant’s continued growth faces increasing challenges in its home market, where regulatory scrutiny is hitting its gaming and financial services empire
Tencent-backed DouYu still wants to merge with Huya despite government antitrust concerns
DouYu and Huya, ranked No 1 and 2 as China’s top video-streaming sites for gamers, hold nearly 90 per cent of the market Chinese market regulators have previously expressed concerns over the potential merger
China central bank says new SWIFT JV will set up localized data warehouse
The People’s Bank of China said yesterday that the newly established joint venture with the Belgium-based SWIFT financial messaging service will set up a localized data warehouse to monitor and analyze cross-border payment messaging. Due to unstable connectivity reported by some small Chinese banks affecting cross-border transactions, the Beijing-based entity will build a localized network to ensure a more stable, resilient and secure connection to the main SWIFT network, the central bank added.
China’s SWIFT joint venture a ‘defensive move’ in US financial war after Alaska talks underlined ongoing tensions
Belgium-based SWIFT financial messaging service provides a network for financial institutions worldwide to send and receive information about financial transactions But some Chinese medium and small-sized banks have reported unstable connectivity to the network, affecting their cross-border transactions
RMB internationalization is not aimed at challenging US dollar, PBOC research head says
China’s push for the greater international use of its currency is not an attempt to have the RMB challenge or supplant the US dollar as the world’s major reserve currency, a People’s Bank of China (PBOC) official said, reported Caixin. The internationalization of the RMB, is a natural result of China’s economic development and integration into global supply and industrial chains, Zhou Chengjun, director of the PBOC’s finance research institute, said Saturday at the annual China Development Forum in Beijing.
How blockchain and other digital technology can help China achieve its agriculture and climate change goals
When farmers use smartphones and other technology to access actionable data, it could revolutionise profitability and sustainability Blockchain platforms could offer farmers complete visibility of seed purchase and crop management, enabling the matching of buyers’ needs across the nation
China’s biggest car brand to launch rival to Tesla
China’s biggest carmaker Geely is launching a premium electric car brand it hopes will take on Tesla.
Form a climate club: United States, European Union and China
If the three biggest economies agree a carbon tax on imports, it will catalyse climate action globally.
Did Covid-19 help stamp out flu in China’s biggest city?
The incidence of influenza dropped to almost zero in Shanghai after the coronavirus outbreak last year, a new study finds Simple preventive measures introduced to contain the pandemic might have been the key but more research needed, experts say
China’s Sinovac Biotech says its Covid-19 vaccine appears safe for children
Vaccine also appears able to trigger immune response in children, developer says after early and mid-stage trials, although detailed data was not released Sinovac’s trials, including children aged three to 17, are among several by the world’s vaccine makers as countries aim to inoculate their populations
The Logic of China’s Vaccine Diplomacy
An in-depth look at where China’s vaccines are going hints at the motivations behind the campaign. In Asia, China has been busy securing vaccine markets close to home. Nine out of the 10 ASEAN countries (with the exception of Vietnam) are on track to use Chinese vaccines. To Brunei, Cambodia, Laos, and Myanmar, China promised vaccines in the form of a donation. The Philippines received a donation, which later resulted in Manila’s purchase of the vaccines, while Indonesia, Malaysia, Singapore, and Thailand bought Chinese vaccines straight away. n other Asian countries, however, China has often clashed with Indian vaccine diplomacy, as evident in the case of Sri Lanka. A Chinese donation has been put on hold due to a lack of documentation, while India went ahead with its donation. A similar scenario may be identified in Nepal, with both China and India offering to donate jabs. But it was, again, India that later provided additional vaccines. Bangladesh also opted for Indian vaccines after it refused to co-fund Chinese vaccine trials.
China coal: Australia ban continues to weigh on supply, imports down 40%
China’s imported coal supplies are under pressure amid a prolonged ban on Australian imports that shows “no sign of being lifted in the near term”, and new restrictions at the border with Mongolia, reported the South China Morning Post. Coal imports into China for the first two months of 2021 fell nearly 40% compared to a year ago, according to China customs data, despite Russian exports looking to fill the gap caused by the Australian ban, S&P Global Market Intelligence said.
China’s new five year plan is an iron ore calamity
For many years it has been obvious that the Chinese needed to change their growth model. They have had a little success in shifting away from wasteful commodity-centric investment and towards consumption but not enough. Every time they looked like accelerating the structural reforms they backtracked quick smart as growth slowed jeopardizing CCP legitimacy. But each time that has happened the underlying risk of long-term economic stagnation has grown such that it is now the base case. Hence it is no surprise to see accelerated restructuring at the heart of the new Five Year Plan and it is an unfolding calamity for bulk commodity demand.
US, China look to shore up ties with allies after Alaska clash
Antony Blinken tells Nato meeting the alliance should be focused on some of the challenges Beijing poses, while Joe Biden will join EU talks Meanwhile, Wang Yi and his Russian counterpart Sergey Lavrov agree to work together against sanctions, and a Middle East tour is next
US must oppose space ambitions of China and Russia
Russia’s space agency Roskosmos has signed the long-awaited agreement of cooperation with its colleagues from the Chinese National Space Administration (CNSA). The agreement intends to establish a joint space station on the Moon. It is expected that Russia and China will also invite other countries to participate in the project, thus creating an intriguing space alliance to oppose the US and the EU
China Is ‘Danger Close’ to US in AI Race, DOD AI Chief Says
JAIC leader stresses that AI ethics guidelines don’t slow down the United States. In fact, they are essential The Pentagon must move faster to standardize its data, adopt cloud services and integrate AI into operations if it is to keep ahead of China’s prowess in artificial intelligence, the head of the Joint Artificial Intelligence Center, or JAIC, said Tuesday. Beijing is accelerating its Made in China 2025 effort and aims “to be dominant in the AI space in 2030,” Lt. Gen. Michael Groen told a National Defense Industrial Association audience. He noted that Pentagon budgeteers are currently building five-year Program Objective Memorandums out to 2027. “You know, to a Marine, that’s danger close,” Groen said.
China-EU relations: Beijing ramps up the rhetoric in dispute over sanctions
Foreign ministry likens move by EU, US and others to the Eight-Nation Alliance used to suppress the Boxer rebellion in 1900 EU’s decision to take punitive action against China was based on ‘lies and false information’, ambassador Cao Zhongming tells Belgian officials “There is no sign that Beijing will change its stance on Xinjiang issues and China will strongly defend its actions, so the spat is expected to continue, and might jeopardise the investment deal as it has not yet been ratified,” he said.
China and the EU recently wrapped up seven years of negotiations on the Comprehensive Agreement on Investment, but the deal has yet to be ratified. Wang Yiwei, another international relations expert from Renmin University, said that while China welcomed criticism it would respond if it believed it was being treated unfairly. “China will still cooperate with the West, and Beijing knows that criticism helps us think better. But it will fight back if it feels a red line has been crossed.”
China may just have doomed its trade deal with Europe
Brussels and Beijing have huge incentives to preserve their overall economic relationship and prevent further deterioration. Still, China may have miscalculated its response. Its new sanctions ban several EU politicians from entering mainland China, Hong Kong and Macau. And their related companies and institutions will be restricted from doing business with China. “Chinese diplomacy seems incapable of taking a measured approach when it comes to responding to perceived public affronts,” said Capri, who added that the reaction “will prove to be costly.” Daniel Gros, a distinguished fellow at the Centre for European Policy Studies, said China has “a bit overreacted.” But he added that ratification of the investment deal is still a long way off, and the spat may not jeopardize it in the long run. Even so, geopolitical tensions could increase over the coming year. Gros pointed to Beijing’s crackdown on pro-democracy activists in Hong Kong and China’s confrontational diplomacy as potential flash points. “If there’s more evidence of human rights violations against the Uyghurs, all these things could and would influence the final decision,” Gros said.
How Should the United States Compete With China’s Belt and Road Initiative?
As the United States embarks on an era of great power competition with China, it is incumbent on U.S. policymakers to better understand BRI and the strategic and political implications of the initiative. BRI also stands as an example of China’s willingness and ability to fill voids left by the United States. Cutbacks in federal research and development funding and investments in advanced technologies in the United States have allowed China to move ahead of the country in the development and sale of 5G technology, the installation of high-speed rail, the production of solar and wind energy, the promulgation of electronic payment platforms, the development of ultra-high-voltage transmission systems, and more. Tightened U.S. immigration and visa rules have turned away top talent. The United States’ withdrawal from the Trans-Pacific Partnership and disinterest in other multilateral trade agreements in Asia has allowed China to cement its position as the center of regional trade.
Countries in China’s Belt and Road Initiative: Who’s In And Who’s Out
With 139 countries now formally affiliated with BRI and endorsing the project, this signals to prospective members that many of the world’s most powerful and economically dynamic countries have vetted BRI, and therefore they can embrace BRI projects. If or when China approaches a country about initiating a BRI project within its borders, the country can rest assured that the vast majority of the world has signed onto BRI. In recent years, BRI has extended its reach to the corners of the globe. Even if not every BRI country hosts BRI projects, their endorsement of the initiative lends credibility to it. In the coming years, Beijing will likely continue to lobby countries to sign on to the initiative, focusing its attention on Latin America and Western Europe, where regional heavyweights such as Argentina, Brazil, France, Germany, and Spain remain outside of BRI.
South China Sea: Beijing has extended another Spratly Islands reef, photos show
Land has been added in the past month to Subi Reef, also claimed by the Philippines and Vietnam It comes amid dispute over nearby Whitsun Reef, with a reported 200 Chinese vessels being labelled ‘maritime militia’ by the Philippines
‘Prelude to occupation’: worries flare in Philippines as Beijing tells US not to provoke confrontation over Chinese ships
Foreign secretary Teodoro Locsin Jnr says the Philippines might invoke its defence treaty with the US to deal with presence of Chinese ships in its waters Duelling statements from the Chinese and American embassies have also fuelled anxiety and speculation in the Philippines
China releases logo for CPC’s 100th anniversary activities
The Publicity Department of the Communist Party of China (CPC) Central Committee on Wednesday released the official logo for activities to mark the 100th anniversary of the founding of the CPC.
Sanxingdui: researchers say newly found sites in China date back as far as 3,200 years
Archaeologists are still excavating six sacrificial pits that were recently discovered Some have been found to be from the period of the late Shang dynasty
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