Economy

Optimism over China's economic outlook may be rising, but its recovery is uneven, with different industries experiencing different levels of rebound. Furthermore, can Chinese authorities ensure a better business environment and greater transparency, as well as policy consistency and guarantee of the rule of law, to attract back businesses and investors?

Academic Pei Sai Fan notes that the Chinese government’s moves to regulate and clean up various sectors in China’s economy has led to private enterprises feeling uncertain about what might happen to them in future, especially as declarations of support for the private sector economy seem to be just lip service.

Chinese academic Yi Xianrong remarks that while the Chinese government had emphasised stability for the property sector in recent years, the market was in dire straits in 2022, marked by abysmal sales and financial figures and rock-bottom consumer confidence. Faced with these tough challenges, the Chinese government has made significant changes to its real estate policies this year. But it will not be a smooth road ahead to drive the transformation of the ailing sector.

As economic activities pick up in China after the country lifted its strict Covid-19 control measures, foreign businesses are raring to return to the world’s second-largest economy. However, they remain hesitant due to the long time away and geopolitical considerations. Zaobao associate editor Han Yong Hong finds out if China can easily rebuild its economic ties with foreign businesses and the outside world.

The RMB is now one of the most actively traded currencies in the world and is set to gain further traction globally this year, as the People’s Bank of China implements the government’s strategy to boost the currency’s use overseas, challenging the dominance of the US dollar in the long term.

Despite a booming electric vehicle (EV) market in China, local EV manufacturers are facing a tough road ahead as the Chinese government cuts subsidies and EV giant Tesla increases its competitiveness by lowering prices. Chinese financial commentator Tan Haojun believes that Chinese EV manufacturers would need to compete in terms of research and development in order to stay in the EV market.

Gambling and casino-hopping have long been Macau's calling card. Lianhe Zaobao’s China Desk looks into what else Macau has to offer, and how the local government is trying to wean its economy off the gaming industry, especially given mainland China’s clampdown on illegal gambling.

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.