While some businessmen have good intentions in offering goods and services at lower prices, they could also be “spoiling the market” and making it harder for others to make a living. Such actions may invite backlash, whether in village scuffles, or writ large, protests and anti-dumping measures between countries. China, the world’s factory, has borne the brunt of such pushback. Industries in other countries are affected, as capital moves freely between borders but labour stays in place. Those who feel they are losing out may hold grudges and end up dealing a big blow to society.
Perhaps the theory of the survival of the fittest can help to explain the opposite gender imbalance in rural-urban China. Aspirant males and females head to cities in search of better prospects; the latter, with the added aim of better marriage prospects, invariably outnumber the men. Of the males that stay or return, there is the heavy bride price to pay to win the hand of a lady among the smaller pool of women left in the rural areas. This modern malaise is something no provincial policy can easily solve, says economist Li Jingkui.
The metaverse is the latest tech industry buzzword that has generated great interest among Chinese tech companies and China's capital market. Not everyone is equally enthusiastic, however, as Chinese authorities appear to be taking a cautious approach, attempting to strike a balance between regulatory control and the risk of stifling innovation. Caixin explores what's in store for the metaverse.
China was the only major economy to expand in 2020 as the Covid-19 pandemic swept across the world. But its regulatory whirlwind over the past year has created uncertainties and headwinds for the economy. Caixin tells us the five key things to watch for as the world’s second-largest economy ploughs through the final quarter of the year.
A family stroll down a food alley has Chinese economist Li Jingkui teaching the Coase theorem while holding his breath and fleeing a luosifen stall and its pungent smells. If rights of stallholders are defined and transaction costs are low, then the optimal value of resources in society will be realised. That is, either the luosifen moves away under some compensation from his neighbour or it stays put and his neighbours cope with the negative externalities this presents.
Analyst Luo Zhiheng compares China's distribution of national income with 20 major economies and concludes that among other things, there is a need to address a lower-than-average share of personal income in China, in order to achieve common prosperity. The Chinese government can work towards the goal of fostering an olive-shaped income distribution pattern by adjusting the tax structure, providing more investment options to its people, and developing its social security network.
Policymakers have imposed a series of measures to limit rampant borrowing by developers and tighten standards for mortgage lending since Chinese President Xi Jinping declared in 2017 that “houses are for living in, not for speculation”. Following this, developers are experiencing a sharp drop in home sales, which adds to their financial burdens. In spite of this, industry experts opine that Beijing’s determination to reduce dependence on real estate investment will not change easily.
Chinese economics professor: If you like salty and spicy food, your ancestors might have been poorer folk
The Big Mac index as an informal gauge of the economic standards and consumption capacities of countries is well known. But actually, there’s also the pickle index, the lipstick index, and the ultimate indicator from everyday life — the regional food flavours index. What do the saltier, bold-flavoured food in regions like Hunan, Jiangxi and Shandong, and the clean, light flavours of Jiangsu say about the relative states of their regional economies?
China's Evergrande Group has agreed to sell a 20% stake in Shengjing Bank Co. to the local Shenyang government for 10 billion RMB (US$1.55 billion) to settle debts with the lender, according to a Bloomberg report. But the sale will do little to help Evergrande pay its massive debts to bond holders and homebuyers, many of whom camped outside its Shenzhen headquarters since news of its possible bankruptcy was reported more than two months ago. In fact, Evergrande missed paying its bond interest due on 29 September, in its second unpaid offshore debt payment in a week. Caixin journalists investigate the "high risks, high rewards" modus operandi of the Evergrande Group and its executives who lived on high debts, high financing costs but also big profits. Can Evergrande's high life continue or will they become "China's Lehman Brothers"?