Economy

A comment by New Oriental’s founder Michael Yu Minhong has sparked online debate on the ideals of private entrepreneurs in China. However, amid the commotion, Yu actually has sound advice for the business community in navigating through tough times.

One highlight of the recent report from China’s Two Sessions is the proposed reforms to the financial regulatory system. Among the changes is to place regulators under the civil service system, which would mean salary cuts of 50% or more, along with stricter regulations on staff resignations. Will China's reforms for common prosperity work?

Until now, China has held a dominant position in the global industrial chain from cathode materials to EV battery manufacturing and vehicle production, supplying nearly half of global core products. But with a major restructuring underway, it will have to tackle rising costs, supply chain shortfalls and the need to tailor resources for different markets.

China’s top officials have set out the target for the country’s economic growth and drivers for 2023, but the real work is just beginning. To meet economic growth targets and ensure economic recovery, it seems that the basic idea is to boost domestic demand and support the private sector.

While some Vietnamese are wary of Chinese investments, others see it as a good opportunity for their companies, especially SMEs to upgrade and upskill. With new opportunities afforded by investments from countries looking to diversify their supply chains from China, SMEs should be given a boost by the Vietnamese government in order for Vietnam to make the most out of the influx of capital.

Zaobao journalist Meng Dandan looks into the current shortage of workers in various areas of China, especially in the labour-intensive manufacturing sector. Why is it so difficult to hire and retain workers, and what does this mean for the world’s factory and the global supply chain?

Data from the Chinese Ministry of Finance shows that revenue in the local general public budget dropped 2.1% to 10.9 trillion RMB in 2022. As massive tax relief, “zero-Covid” outlays, and a property market meltdown drained their coffers, China’s local governments struggled to balance revenue and spending last year. One state-backed think tank warns that the fiscal strain could continue to plague localities in 2023.

After three years of stringent Covid-19 measures, Shanghai is on its road to economic recovery. While the impact of the pandemic was severe, Shanghai officials are making efforts to bring back and reassure foreign enterprises of a conducive business environment. Zaobao correspondent Chen Jing looks at the steps taken by the officials and how effective they are.

In 2022, Chongqing became China’s fourth largest city in terms of GDP, surpassing Guangzhou, which it had lagged behind despite boasting a bigger population and land mass. Lianhe Zaobao correspondent Edwin Ong notes that Chongqing has leveraged its booming industrial sector to boost its economic growth over the past few years, but is this enough to sustain its stellar performance?