China’s growth prospects, further opening-up in favor of attracting FDI inflows: OECD expert
China’s favorable growth prospects and further opening-up policies are key factors that attract foreign direct investment (FDI), said an official of the Organization for Economic Cooperation and Development (OECD) on Monday.
Governments have a chance to fix global inequality. They must seize it
The world has gained one new billionaire every 17 hours in the past year, yet billions are living under the poverty line More progressive tax rates should be applied, so the rich can help pay for the pandemic The trillion-dollar question is, who foots the bill? Biden is already hinting at hitting the rich with higher taxes to pay for his new spending commitments. US Treasury Secretary Barbara Yellen is angling for a global corporate minimum tax rate of 21 per cent to ensure companies pay their fare share. Other countries should follow suit. Attitudes are changing and more progressive tax rates should be applied to the rich to help pay for the pandemic. Property taxes should be raised at the wealthiest end of the market, tax havens closed and tax avoidance banned. The world needs a universal financial transactions tax to tone down excessive market volatility and pay for global reconstruction. It won’t be easy to implement. Governments have a duty of care to spread the benefits of recovery fairly through increased social transfers, increased public investment and wider job opportunities for all. With the right mix of sustainable policies, trend growth of 4.5 per cent is easily achievable for the world to share more fairly in the next few years.
Why Livestreaming May Not Be For Every Luxury Brand
Dior’s January 2021 livestream for a Chinese audience saw mixed reviews, with some viewers criticizing it as boring and out of touch. While e-commerce livestreaming is booming in China, it has yet to take off in other markets. Luxury brands have been most successful with livestreams when they are able to control much of the content, look, and feel. While e-commerce livestreaming is likely to see explosive growth at the lower end of the market, it may ultimately be less influential in driving luxury sales.
Double Five Festival Features A Stronger Digital Yuan
What Happened: Shanghai has officially kicked off its second annual “Double Five” shopping festival on the first day of Labor Day. The shopping festival, which is similar to the country’s popular Singles’ Day, was launched in May last year by the Shanghai Municipal government to boost local consumption in the wake of the COVID-19 pandemic. In 2020, it generated over $77 billion (500 billion yuan) in online and offline sales. Yet, this year’s gala will be on an even bigger and better scale. That is because the cities of Shanghai, Suzhou, and Jiaxing jointly organized the “Double Five” shopping festival, launching the third round of its digital renminbi trial by issuing red envelopes and bank discounts totaling over 50 million yuan in value. It’s a project that unveils a cross-province, multi-domain consumer payment system.
China’s online retail sales rise 29.9 pct in Q1
China’s online retail sales maintained steady growth in the first quarter (Q1) of the year as the economy further recovered from the impact of COVID-19. In the January-March period, online retail sales went up 29.9 percent year on year to 2.81 trillion yuan (about 434.5 billion U.S. dollars), according to data released by the Ministry of Commerce. Average first-quarter growth of online retail sales for the past two years stood at 13.5 percent, the data showed. Rural online retail sales reached 439.79 billion yuan, increasing 35.3 percent from a year earlier and resulting in an average first-quarter year-on-year growth of 14.7 percent over the past two years. Online sales of agricultural products amounted to 105.58 billion yuan in the same period, representing a year-on-year growth of 4.9 percent, the ministry said.
China wants to cut steel production volume; abolishes export rebates
The Chinese Ministry of Finance and the State Administration of Taxation (customs tariff commission) announced a total abolition of export rebates (13% on VAT) with effect from May1, 2021 on 146 steel items Putting an end to all speculations on the quantum of rebate withdrawal on steel exports, the Chinese Ministry of Finance and the State Administration of Taxation (customs tariff commission) announced a total abolition of export rebates (13% on VAT) with effect from May1, 2021 on 146 steel items with exception on CR Coil (width>=600 mm) and GP Coil (width>= 600mm) where the earlier rebates of 13% would continue. As higher width CRC and GPC are high value added products that are also demanded for a number of downstream industries like silicon sheets, air ducting, storage boxes, furniture and other consumer durable segments and China wants to hold on, if not increase, the share of the global market for these products.
China’s world-factory status gets boost as coronavirus ravages India and other developing Asian countries
Money flowing into north Asia as investors have been selling financials, industrials and materials in India while buying those in Korea and Taiwan China’s advantage as a manufacturing powerhouse remains resilient while its neighbours struggle to reinvigorate their economies
Don’t look to US Treasuries’ rally to understand the ‘sticky’ yields in Chinese government bond market
Rather than US Fed moves, it’s the uncertainties on China’s economic, policy and inflation fronts that explain the lack of direction in the Chinese government bond market Amid slowing growth momentum, there is room for Chinese bond yields to trend lower
China ‘well placed’ to beat its carbon emission targets, experts say
Coal consumption has already reached a plateau and power and steel industries are expected to reach peak emissions by 2025 At the same time, about half of the country’s cities and provinces are moving over to renewable sources of energy
Winning the Chinese BEV market: How leading international OEMs compete
Keeping up with the ever-changing battery-electric-vehicle industry is a high-stakes challenge. Our benchmark of two international and ten local models reveals how OEMs can win over Chinese consumers.
TikTok’s new CEO Chew Shou Zi takes one of the biggest jobs in tech at a critical juncture for ByteDance, analysts say
TikTok’s US fate is currently in limbo as the Biden administration conducts a broad review of potential security concerns raised by Chinese apps Chew will have to navigate difficult political waters to chart a successful international future for the hit short video app
Can China-US Relations Improve During the Biden Administration?
So far, there have been no major changes in Biden’s China policy, but there’s still hope for a stabilized So far, Joe Biden, during his first 100 days as president, has adopted a China strategy that differs little from the Trump administration. With most of the confrontational measures intact, such as economic barriers and human rights criticisms, China-U.S. relations are still at their lowest point in the last four decades. However, it is not a surprise to see that the relationship got off a bumpy start. One main reason is that Biden inherited a toxic relationship with China that was largely guided by Donald Trump’s zero-sum, unilateralist, and protectionist approach. The near-continuous downward spiral in China-U.S. relations since 2018 has left Biden little room for maneuver. To be sure, there is no guarantee that both China and the U.S. would even want a much-improved relationship. China is already taking steps to strengthen its technological prowess and reduce economic pressure points in core technologies, such as semiconductors. And the United States also shows no signs of backing down in areas such as human right protection and democracy promotion. That is why the first year of Biden’s tenure will be crucial for the bilateral relationship, since key issues involving China are still “under review.” And Biden, like his predecessor, has not yet constructed a comprehensive China strategy, if that is possible at all. Ultimately, whether China-U.S. relations will continue to be in a dangerous downward spiral will depend heavily on the Biden administration’s assessment on contentious issues involving China, and also on how China can move cautiously and slowly in expanding its role in the global stage.
China-Australia relations: ripping up Chinese firm’s Darwin Port lease could cost Canberra
A revocation of the 99-year deal on national security grounds could have serious financial and commercial ramifications Lease by Landbridge Group began in 2015 and triggered a sharp reply from Washington over not being consulted about the deal
A more accessible Arctic becomes proving ground for US-China military jockeying
The strategic importance of Alaska’s polar north is clear, as the US prepares for training exercises and China becomes more active in the Arctic region ‘China, Russia, the US – Alaska is in the middle of all of it,’ says former American intelligence officer
Locsin apologizes to Chinese counterpart over expletive
The Philippines’ top diplomat on Tuesday apologized to his Chinese counterpart, Foreign Minister Wang Yi, after his expletive-laden message on Twitter demanding China to remove its ships from the West Philippine Sea. “I won’t plead the last provocation as an excuse for losing it; but if Wang Yi is following Twitter then I’m sorry for hurting his feelings but his alone,” Foreign Secretary Teodoro Locsin, Jr. said in a tweet.
G7 mulls a message to China: the West ain’t over just yet
The Group of Seven rich democracies will on Tuesday discuss ways of countering challenges from China and Russia without trying to contain Beijing or escalate tension with the Kremlin, two of its top diplomats said. Founded in 1975 as a forum for the West’s richest nations to discuss crises such as the OPEC oil embargo, the G7 is debating responses to the two vast and increasingly assertive countries as well as the COVID-19 pandemic and climate change. “It is not our purpose to try to contain China or to hold China down,” U.S. President Joe Biden’s secretary of state, Antony Blinken told reporters on Monday ahead of the first in-person G7 foreign ministers meeting since 2019. He said the West would defend “the international rules based order” from subversive attempts by any country, including China.
China Is a Paper Dragon
U.S. policy makers should look to the future with a little more confidence and a lot more trust in trade, markets, and the superior potential of a free people. China’s language and behavior is assertive and provocative, for sure. China’s power is rising, yes. Its behavior at home and abroad is becoming more oppressive and more brutal; that’s also tragically true. But as Americans muster the courage and will to face Chinese realities, that reckoning needs also to appreciate the tremendous capabilities of this country, and the very real limits besetting China: a fast-aging population, massive internal indebtedness, and a regime whose worsening repression suggests its declining popularity. On April 28, the Financial Times reported that the suspiciously delayed Chinese census would reveal a population decline from 2010 to 2020, the first since the state-caused famines of the 1960s. The FT report was hastily disavowed by Chinese authorities, but in a strangely ambiguous way. Whatever the census ultimately claims, and regardless of whether it is believed, the story points to two deep truths about Chinese society: It’s about to be home to a lot of old people, and trust in the state is very low, and for good reason.
Five Eyes: Is the alliance in trouble over China?
The Five Eyes alliance is an intelligence-sharing arrangement between five English-speaking democracies: the US, UK, Canada, Australia and New Zealand. It evolved during the Cold War as a mechanism for monitoring the Soviet Union and sharing classified intelligence. It is often described as the world’s most successful intelligence alliance. But recently it has suffered an embarrassing setback.
Antony Blinken and Wang Yi to meet again as China hosts UN peace event
China’s presidency of the Security Council will open with a gathering of foreign ministers to discuss global cooperation Chinese UN envoy says Blinken has accepted Beijing’s invitation to meeting which will be chaired by Wang
The Surprising Strength of Chinese-Japanese Ties
Tokyo Will Not Break With Beijing—No Matter What Washington Wants Should China continue to behave aggressively in the region, its actions may one day result in a fundamental rupture with Japan. But that day has not yet come. Japan has proved adept at balancing both its historical alliance with the United States and the economic imperative to sustain strong ties with China. Japanese business leaders, bureaucrats, and politicians will continue to keep the channels of communication with Beijing open in the belief that, as Suga tweeted after the summit, a stable relationship with China “is important not just for Japan and China, but for the peace and prosperity of the region and the international community.”
Top Australian general warns of ‘high likelihood’ of war with China
One of Australia’s top generals reportedly told troops there was a “high likelihood” of war with China in a leaked briefing last year.
Leak of Australian commander’s China comments fuels further talk of war
Major General Adam Findlay told special forces troops in a private briefing last April to prepare for possibility of conflict with China, newspaper reports The rhetoric over Taiwan has divided analysts with one calling such talk irresponsible and another saying it’s a wake up call for Australian security
US-China infowar escalates as America deploys task force in battle for power and influence
Information war includes use of traditional media, social media, cyberwarfare, propaganda and disinformation US says allies are critical to ensure ‘our competitors are not getting that free pass and to recognise what is truth from fiction’
Why labeling China-U.S. friction ‘Cold War 2.0’ is more damaging than helpful
In the U.S., citizens are educated in terms of “dualism” – always in terms of polar opposites. This entails perceiving issues as black or white, right or wrong, good or bad. Chinese culture, on the other hand, teaches the viewing of issues in a more holistic sense. Social needs and harmony are seen as more important than individual needs and rights, and the prevention of disasters or chaos is the main purpose of governance. In this way, Chinese culture doesn’t believe in enforcing their worldview, and rather believes that each nation needs to find its own evolutionary path. This goes some way to explain the goal of Chinese leaders to develop their own model of “socialism with Chinese characteristics.” As China’s former leader Deng Xiaoping once said, “Seek truth from facts.” For these key reasons, labeling the relationship between today’s leading economies “Cold War 2.0” misses the mark. Such a notion clashes with the Chinese outlook, society and even the very nature of its government. Only though cross-cultural dialogue, understanding and cooperation can the two powers shake off any redundant comparisons.
China’s Rural Men Want to Get Married. Women, Not So Much.
Young men in small-town China still hold traditional views on marriage, but their prospective partners now have other priorities, a new report has found.
Number of unhappy wives in China more than doubled since 2012
One in five women in China said last year that they regret getting married Concerns about domestic violence, household responsibilities and unequal public policies fuel their doubts about marriage
China’s wolf warriors are undermining Beijing’s empathetic messaging on India’s Covid-19 crisis
China has been trying hard to repair its global image, tarnished by the spread of Covid-19, but its efforts are being undermined by some of its “wolf warriors.” The term used to refer to aggressive Chinese diplomats, but now nationalistic government social media accounts have also joined the ranks.
On Saturday (May 1), the official Weibo account of China’s Central Political and Legal Affairs Commission stirred a huge backlash after one of its posts attached a picture juxtaposing China’s successful launch of a module into space with one that shows India’s cremation pyres burning at night. “China lighting a fire versus India lighting a fire,” the post read.
With Covid-19, India’s crisis is an emergency for the world
The aid so far has been a drop in the ocean of new cases and deaths each day The big question now for all countries is how to stop the tsunami of infections
Taiwan health minister is not god, premier says after Covid-19 cluster
Chen Shih-chung would not be able to ensure everyone followed government rules ‘even if he were a god reborn’, Premier Su Tseng-chang says Having won praise for its overall coronavirus containment, Taiwan has recorded 28 cases linked to the travel industry since last month
Chinese Province Launches Gold ‘Health Code’ for Vaccine Recipients
The digital reward is designed to motivate young people to get vaccinated, according to local authorities.
EU targets China with new powers over state-backed firms
The regulation, to be announced by EU competition supremo Margrethe Vestager on Wednesday, is part of Europe’s hardening stance against Beijing, all while China remains the continent’s second-biggest trading partner after the United States Brussels is seeking to strengthen its ability to control Chinese inroads into Europe’s economy, with proposed new powers to probe state-backed foreign companies seeking to snap up European firms. The regulation, to be announced by EU competition supremo Margrethe Vestager on Wednesday, is part of Europe’s hardening stance against Beijing, all while China remains the continent’s second-biggest trading partner after the United States.
pdf Investment policy developments in 62 economies
The OECD said global foreign direct investment will drop to its lowest level in 15 years in 2020 due to the the impacts of Covid-19.
According to the Organization for Economic Cooperation and Development, global foreign direct investment flows fell to their lowest level in 15 years in 2020 when the Covid-19 pandemic hit the global economy.
pdf : COVID-19 fallout sinks global FDI flows by 38%
§ Global FDI flows decreased by 38% in 2020 to USD 846 billion, their lowest level since 2005. § Inflows to the OECD area decreased by 51%, partly due to significant divestments from Switzerland and the Netherlands. Outflows from the OECD area decreased by 48% to historically low levels not seen since 2005, also largely influenced by major divestments by companies in the Netherlands. § FDI inflows to non-OECD G20 economies only decreased by 9%, due to rebounds in China and India later in the year. FDI outflows across a number of non-OECD G20 economies dropped by 49%. § China overtook the United States as the top destination for FDI worldwide. India and Luxembourg (excluding resident Special Purpose Entities (SPEs)) trailed them as large FDI recipients. § Luxembourg, the United States and Japan were the largest sources of FDI outflows. The United States has remained largely stable but Japan, and China, which follows, have seen a reduction of their FDI outflows in 2020. § Similar to the behaviour observed during the global financial crisis, both FDI income paid by affiliates in OECD countries to foreign parents, and FDI income received by OECD parents, decreased by around 15% in 2020. § The rebound in cross-border M&A activity, which started in the second half of 2020 and continued in the first quarter of 2021 in advanced economies, with many deals in the healthcare and technology
Hong Kong leader flags ‘fake news’ laws as worries over media freedom grow
Hong Kong leader Carrie Lam said on Tuesday the government was working on “fake news” legislation to tackle “misinformation, hatred and lies,” as worries grow over media freedoms in the global financial hub. Under Beijing’s directions, Hong Kong has taken a swift authoritarian turn following the imposition of a sweeping national security law in 2020, with a fresh drive for “patriotism” spilling into most aspects of life in the city. A major overhaul of public broadcaster RTHK, led by a newly appointed bureaucrat with no media experience, is widely seen as a signal that government red lines will soon encircle journalism as they have other sectors, such as education.
What does ‘path of socialism with Chinese characteristics’ mean?
A pragmatic approach First coined by Deng Xiaoping in 1982, the concept of socialism with Chinese characteristics aims to redefine the relations between planning and socialism, and market economy and capitalism. It has preserved institutions of socialism and public ownership while importing sophisticated management experience and advanced market mechanism from developed countries. “Planning and market forces are not the essential difference between socialism and capitalism. A planned economy is not the definition of socialism, because there is planning under capitalism; the market economy happens under socialism, too. Planning and market forces are both ways of controlling economic activity,” Deng explained.
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