Economy

Verbal sparring by Chinese internet opinion makers seem to suggest that the winds are blowing in favour of private firms at the moment. But will officials be able to walk the talk in their quest to use the private sector to drive China’s economic growth?

Regulators are ramping up efforts to cull poorly performing firms and those that violate the rules or break the law. A record number of companies got the boot from Chinese mainland stock exchanges last year, and that number could even double in 2023.

India holds the prospect of driving the biggest change in the global economy in the next quarter century just as China did in the previous one, says economic professor Arvind Panagariya. India has several factors in its favour, but it must also push ahead with its reform agenda and open its economy wider to friendly countries through free trade agreements to make the best of its time in the sun.

China research analyst Chen Long gives a positive assessment of China’s economic prospects in 2023, pointing out that the swift U-turn on Covid policies may wreak havoc in the short-term, but be the catalyst to drive economic growth in the Year of the Rabbit. Variables are looking favourable, with the consumer spending and housing sector showing potential, and government policies going in the right direction.

Political commentator Jin Jian Guo observes that China economic policy has always been ruled by politics, and while it seems that the pendulum is swinging back in favour of private firms after a period of bashing and stifling, this is not a given as the politics of the day still rules.

Chinese billionaire Jack Ma has given up controlling rights in the company he founded, Ant Group Co. All eyes are now on what lies ahead for Ant and Alibaba, which owns 33% of the company and was co-founded by Ma.

China’s reopening to the world on 8 January has led to hopes that the Chinese economy will rebound sooner and faster than expected. Lianhe Zaobao correspondent Chen Jing speaks with experts and business owners to find out the obstacles ahead for China, and how China's reopening will impact the regional and global economy.

Commentator Chen Kuohsiang notes that the US’s efforts to counter China is the main driving force behind the redrawing of the global economic map. However, as the US is the sole beneficiary while most of the other countries have supported the US’s cause to their own detriment, conflicts of interests will gradually emerge. In the end, the global economy may polarise into various camps with disjointed supply chains.

Zaobao correspondent Yu Zeyuan explains the delicate relationship between private enterprises and local governments, in which both depend on each other for mutual benefit. But once the tenuous relationship runs awry, there is little recourse to right the situation.