China will not beat the United States in per capita GDP for 50 years. Then the statistics determine, the economist judges
Long after China surpassed the United States and became the world’s largest economy, the United States will still be 50 years richer than China. Simon Baptist, an economist with the Economic Intelligence Unit (EIU), told the CNBC News Agency. “In the next 50 years, I think China will achieve far less per capita GDP, a measure of our wealth,” Baptist said.
China’s SWIFT joint venture ‘defensive move’ against US refuted by former bank executive
The People’s Bank of China last week announced a newly established joint venture with Belgium-based SWIFT financial messaging service and four Chinese institutions Concerns have been raised that the United States could cut China off from the US dollar-dominated SWIFT system amid souring relations over Xinjiang and Hong Kong “We should actively extend CIPS to SWIFT member units with the help of SWIFT to establish a global yuan clearing and settlement system. After that, even if SWIFT cuts off the connection with China in extreme cases, it will not be difficult to form an alternative messaging service network,” Wang added. A survey of 65 central banks by the Bank for International Settlements this year showed that 60 per cent are now conducting central bank digital currency experiments or proof of concepts, while China is already one year into pilot testing of its Digital Currency Electronic Payment. Wang said given that SWIFT is also actively studying the digital currency operation and its own digital transformation, while China has conducted extensive public tests on digital yuan, it is “of great significance” for SWIFT to strengthen the cooperation with the PBOC, which will be a “strong alliance”.
To build a ‘Digital China’, the country must first deal with its rampant black market for personal information
Underground trading of personal information has become a professional and industrialised value chain in China The central government is seeking to establish a data governance regime, highlighting the responsibility of online platforms to protect user data
Digital Tech Saved 20% Of World Economy During One Year Of Covid Disruption
GDP Losses are lesser for the economies like U.S., China, and other Advanced Economies, where investments in Digital-ICT adoptions were high, making them highly Digitally Enabled Economies.
11 things you may not know about China’s digital currency
China was the first major economy to begin exploring its own digital currency in 2014, though it is yet to launch the proposed digital yuan Unlike cryptocurrencies such as bitcoin, which are not centrally controlled, China’s “sovereign” digital coin would fall under the authority of the People’s Bank of China
Bitmain Neo CBDC digital yuan binance Crypto blockheads blockchain BSN cryptocurrency Bitcoin
The first known digital yuan B2B transaction took place in northern China, while regulators called for its accelerated rollout. China’s State Grid is working with a Beijing-based blockchain company to revamp its data management. Singaporean DBS Bank issued bonds using blockchain. Fenbushi Capital raised $23 million to invest in Filecoin projects. The world of blockchain moves fast, and nowhere does it move faster than China.
Bank of China, Agricultural Bank of China 2020 profits beat estimates thanks to fourth quarter rebound
Bank officials signaled cautious optimism for 2021, thanks to the country’s economic rebound from Covid-19 On average the six biggest state-owned banks saw fourth-quarter net profit grow by 60 per cent, according Jefferies
China’s EV war: Xiaomi enters the fray with multibillion dollar investment in world’s largest electric vehicle market
Xiaomi will kick off its electric vehicle project with an initial investment of US$1.5 billion and expects to spend up to US$10 billion over the next decade Lei Jun, the company’s founder and chief executive, will head the company’s new electric car division
Shanghai’s digital transformation in full swing
Building an Innovation Hub Smart technologies like artificial intelligence and 5G are being developed across downtown districts and major transport hubs to boost digital urban management and cap Shanghai’s digital transformation strategy. Driven by the city government’s ambition to lead the world in the development of AI, local districts are turning historical industrial sites into innovation parks related to the burgeoning technology. Riverside regions along the Huangpu River and Suzhou Creek have been renewed with parks and walking paths as well as intelligent applications and innovation parks for high-tech firms.
TSMC head says drive to onshore chip supply chain is ‘unrealistic’
Mark Liu says US-China trade disputes caused uncertainty that led to ‘double-booking’ The head of the world’s biggest contract chipmaker has said the rush by major economies to onshore semiconductor production is “unrealistic” and that expanding capacity would not help alleviate the global chip shortage. “People said the current chip crunch is because chip production is too concentrated in Taiwan, but that is not the reason at all,” Liu said. “It’s the supply chain disruption due to COVID-19 and the unpredictability and uncertainties brought by the U.S.-China trade dispute, as well as the digital transformation that is driving the uses of electronics because of the pandemic.” Liu said that of the those three factors, the Washington-Beijing tensions had brought the most uncertainties for the supply chain. “When you sanction Huawei, all the other rival players are jumping in to grab the market share it left, and when you impose export control rules, some chip developers are worried and shift their production to other suppliers. … That really creates imbalance in the supply chain, and that causes a lot of unpredictability.”
Alibaba Accelerates Consumption Upgrades in China’s Lower-Tier Cities with Taobao Deals
With an eye toward ensuring even more affordable consumption upgrades to online shoppers outside major metropolitan areas, the Taobao Deals platform will expand its product offerings, supply chain and logistics over the next year. The goal is to meet three direct-to-consumers expectations; fresh produce direct from farms, daily essentials and household items direct from factories as well as trendy apparel direct from brands. “Taobao Deals was created last March to improve quality of life in China’s less-developed areas. We enable people with the same access and quality goods as those living in major cities,” said Wang Hai, vice president of Alibaba Group and general manager of its C2M business unit. Since the app’s launch one year ago – in the midst of the global pandemic – more than 100 million users, largely from China’s lower-tier cities, have flocked to the app.
China must avoid ‘blind competition’ within high-speed railway network development to maintain ‘reasonable’ debt levels
China’s 38,000km high-speed rail network is already the world’s largest, with plans to add 3,700km of rail lines in 2021 compared with 4,933km last year But authorities are worried about an increasing debt level, with 5.57 trillion yuan (US$850 billion) owed by the state-owned China State Railway Group alone
What the World Needs to Learn From Chinese Content Commerce: Part Two
Brand collaborations are nothing new in China (or globally), but where companies in China pulled ahead of the pack in 2020 was in taking real chances and launching unexpected collaborations that created deeper connections with consumers rather than simply attracting buzz. Some of the most innovative collaborations were seen in the consumer goods and food and beverage industries, with lessons to be learned for all.
Day after Xinjiang link disclosed, Finnish wood pulp giant Stora Enso says it will leave viscose market
Executive announces the policy change in response to Finnish news media’s questions about SCMP’s article on exports to Xinjiang Industry analyst says the decision is a ‘massive surprise’
UN panel warns that ‘well-known global brands’ may be linked to Xinjiang human rights abuses
More than 150 companies, from China and around the world, could be connected to the suspected abuses, though the report does not name the businesses Uygur workers have been reportedly subjected to ‘arbitrary detention, human trafficking, forced labour and enslavement’, says United Nations working group
China’s M&A activity enlivens with clear focus on EU
In terms of ownership, acquisitions by Chinese state-owned enterprises (SOEs) gained strength in 2020 with a special focus on the Asia-Pacific and other regions, while those in the US and Europe became smaller. In particular, the share of deals from Chinese SOEs in Europe decreased. Most of these SOE acquisitions are still in the resource-related sectors, whereas private companies dominated in the industrial and consumer sectors.
How Will We Win the Second Cold War?
Biden has a chance to turn China’s strengths into weaknesses. But Xi cannot overcome the inherent weaknesses of hyper-centralized power. The more power one man holds, the more vulnerable the entire regime is to his misjudgments. The more he tries to project an image of invincibility, the likelier he is to wall himself off from unpleasant but necessary information. And the more he cuts off internal channels of dissent, the more he foments precisely the kind of ideological and political disenchantment he seeks to quash. Xi is creating the very critics and enemies who may someday be the regime’s undoing. None of this is to say that containing Beijing won’t also require actively building alliances, exerting economic pressure and preserving a powerful military deterrent. But as we imagine how we might bring a Second Cold War to a peaceful end, it helps to consider how China’s regime could become a partner in its
China’s new bogeyman: Europe
Beijing turns to invective and boycotts to dissuade Europe from closer coordination with Washington. Beijing is not, however, giving up on Europe as a totally lost cause and is still playing some of its classic divide-and-rule tactics. Chinese Defense Minister Wei Fenghe last week visited Hungary, Greece, North Macedonia and Serbia. Three of those four countries are NATO members, while Wei boasted of plans to “push the military-to-military relations to a new level” with some of those countries.
Belt and Road Weekly Investor Intelligence, #22
In this week’s edition, we examine China’s ‘Vision 2035’ plan, which highlights major policy programs, including plans for the Belt & Road Initiative (BRI). We look at how China and Russia approach diplomacy as opposed to the United States; assess Vietnam and Thailand, both BRI nations, as alternatives to China; take in the proposed China-Eurasian Economic Union Free Trade Agreement; and finally, look at why smaller EAEU members are struggling to adapt to coming digital payment systems.
China shrinks public’s role in electing Hong Kong legislators
Candidates to be screened by national security officials Publicly elected representatives will hold just over one-fifth of seats in Hong Kong’s next legislature, down from a majority, under constitutional changes adopted in Beijing on Tuesday.
Hong Kong: China limits parliament to ‘patriots’
China has passed sweeping changes to Hong Kong’s electoral rules which will tighten its control over the city.
FIGURING OUT CHINA’S NEXT MOVE
Because the world’s biggest country is also the world’s biggest mega-story.
There was never going to be a thaw when top American and Chinese diplomats met in Anchorage earlier this month for the first time since President Joe Biden took office. But the winds blew even colder than expected, and it’s unclear how Biden will approach ties with Beijing. What’s indisputable? No matter what happens between Washington and Beijing, China’s importance is only going to grow — for America, the world and for you. Today’s Daily Dose takes you into the fascinating, fast-changing world of Chinese politics, business, culture and foreign relations. It’s a world you could once afford to ignore. Not anymore.
‘US laws do not apply in China,’ court is told, as new front opens in Meng Wanzhou extradition fight
Canada has a duty to protect the Huawei executive from a US bid to prosecute her that is in violation of international law, her lawyers say They say the US has no jurisdiction over Meng’s alleged defrauding of HSBC, as she is Chinese, HSBC is British, and meeting that led to arrest was in Hong Kong
Beijing courts Southeast Asian nations in bid to counter South China Sea backlash
Chinese Foreign Minister Wang Yi to host meeting in Fujian as part of effort to counter the Biden administration’s efforts to isolate China A number of countries have criticised a new law that would allow Chinese coastguards to fire on foreign vessels
China or the US-led Quad? Why India must pick a side
The Quad’s investment in India’s vaccine manufacturing capacity shows the grouping could be a long-term partner in solving the country’s developmental challenges But New Delhi’s multi-alignment strategy might undermine the Quad’s willingness to invest in India Its key interest in doing so would be to prop India up as a counterweight to China in the Asia-Pacific. But India’s heightened engagement with rival blocs, such as the SCO, could undermine the Quad’s willingness to invest in the country. India might not be able to sustain its multi-alignment strategy for long. Its interest in being part of competing blocs will significantly undermine its efforts to find allies and partners to invest in its own development. New Delhi should instead pursue a more sustainable strategy based on an analysis of long-term interests.
China’s Covid-19 vaccination plan could lift GDP growth to 9.3%
Business confidence and consumer spending will improve should China be able to achieve its targeted rate, which Oxford Economics estimates will require inoculating 10 million people a day — twice the current pace.
China-Africa cooperation: a boon for the continent
China-Africa cooperation is flourishing, but not everyone is happy about it. Speculation against China-Africa cooperation has almost become daily headlines in the West. Some Western media and politicians enthusiastically demonize China’s role in China-Africa cooperation, accusing it of setting up “debt traps” and conducting imperialism in Africa. But is this the case? The answer is obvious. The exchanges between China and Africa are based on win-win cooperation and mutual development that deliver tangible benefits to people from both sides. Such baseless accusations are merely a feeble attempt to defy China and sow discord between China and its partners.
Xi Jinping urges Sri Lanka to work with China to develop controversial Hambantota port
Chinese leader tells his Sri Lankan counterpart Gotabaya Rajapaksa Beijing is keen to cooperate on key projects under the Belt and Road Initiative The decision to hand the port over to Chinese firm on a 99-year lease has heightened concerns from India and the US about ‘debt trap diplomacy’
China population: plan to lift retirement age stokes workers’ anxiety as demographic crisis looms
Beijing has announced in its new five-year plan it will delay the retirement age to combat the economic effects of rapid aging The change has sparked widespread concern about the impact on consumption, fertility rates and personal investments
How a deadly bomb attack on Chinese village officials highlights simmering tensions at the grass-roots level
Last week’s fatal attack in Guangdong province was blamed on a local man seeking revenge over the handling of a property dispute Activists and lawyers say the case exposes the difficulty many people face in seeking redress from the authorities in land disputes
The Complex Legacy of China’s Cinematic Pirates
Film and TV piracy are under increasing pressure in China. The void they’re leaving behind will be hard to fill.
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