Economy

Indonesian President Joko Widodo inspects an area that will be the site of the new capital city, during sunrise in Penajam Paser Utara regency, East Kalimantan province, Indonesia, 15 March 2022. (Courtesy of Agus Suparto/Indonesian Presidential Palace/Handout via Reuters)

Will China invest in Indonesia's new capital 'Nusantara'?

Amid fears of an increasing dependence on China being played up with regards to foreign investment for Indonesia's new capital in East Kalimantan, one must first ask if Indonesia offers an attractive enough proposition for Chinese (and other) investors, says Indonesian researcher Siwage Dharma Negara.
A child receives a swab test for the Covid-19 coronavirus in a compound during a Covid-19 lockdown in Pudong district in Shanghai, China, on 17 April 2022. (Liu Jin/AFP)

Can Shanghai meet its zero-Covid deadline and resume production?

Even as Shanghai aims to reach “social zero Covid” in the coming days, it has moved to resume key manufacturing industries and businesses. Undoubtedly, notes Zaobao correspondent Yu Zeyuan, the authorities are well aware that Shanghai is China’s economic and political nerve centre and that any disruption could easily spell trouble.
Delivery workers drive their tricycles along a street in Beijing, China, on 5 January 2022. (Wang Zhao/AFP)

Plight of China's new generation of young migrant workers highlights pitfalls of labour reforms

Over the past three decades, China has implemented and revised its labour regulations in an effort to progress its market economy. Despite the strengthening of labour protection, young migrant workers have fallen through the cracks. Chinese economics professor Li Jingkui believes that the labour reforms have led to the social phenomenon of “Sanhe legends” — youths who are caught in an employment cycle characterised by poor working conditions, low wages and a lack of stability.
An employee works on solar photovoltaic modules at a factory in Hai'an in China's eastern Jiangsu province on 15 November 2021. (AFP)

China's push towards green energy accelerated by security concerns

China’s coal and electricity shortage last year and the current impact of the Russia-Ukraine war on global energy supply have highlighted China’s energy security concerns and the risks to fulfilling its climate goals. Nevertheless, while EAI academic Chen Gang believes that China is unlikely to significantly reduce its consumption of fossil fuels in the short term, he notes that there remain several drivers that will accelerate China's clean energy transition.
An armoured vehicle of pro-Russian troops is seen in the street during Ukraine-Russia conflict in the southern port city of Mariupol, Ukraine, 11 April 2022. (Chingis Kondarov/Reuters)

China's pro-Russia stance in the Ukraine war could negatively impact the Chinese economy

The immediate impact of the Ukraine war on the Chinese economy remains limited except for high commodity prices, assesses economist Alicia García Herrero. But the full impact will depend on the political decisions China makes on the Ukraine war. China seems keen to abide by the letter of the law to comply with Western sanctions on Russia, but not so much in terms of the spirit of the law. By taking risks and helping Russia as much as it is able to, will it get caught in the crossfire between the West and Russia?
A general view of the China-funded Kipevu Oil Terminal at Mombasa Port in Mombasa on 6 January 2022. (AFP)

China wants to win the world over with the BRI, but something's amiss

China’s Belt and Road Initiative (BRI) has gone beyond just infrastructure projects to other areas such as digital development, health and green energy. In the face of negative perceptions of China, Beijing has sought to show its commitment to forging a multilateral BRI that would generate benefits for all participating countries and not China alone. But do old habits die hard?
A train on the China-Europe Railway Express, commemorating more than 10,000 trips made, March 2022. (Internet)

Russia-Ukraine war impacting China-Europe rail transportation and trade

With the ongoing Russia-Ukraine war, logistics providers have been hard put to keep goods moving between China and Europe. One route is the China Railway Express (CRE) that cuts through Russia and Ukraine, which gives sellers and suppliers cause for concern, leading to a sharp drop in the volume of goods being transported via that route. Zaobao correspondent Edwin Ong takes a look at the impact of the war and how the CRE can get through the challenging period that is coming.
A plane of China Eastern Airlines lands at the Beijing Capital International Airport in Beijing, China, 23 March 2022. (Tingshu Wang/Reuters)

China's aviation industry suffers double mishap of pandemic and plane crash

Zaobao’s China Desk analyses the impact of the recent China Eastern Airlines crash, touted as China’s worst aviation disaster since 2010. This comes at a time when China has been improving its flight safety record and its airlines are struggling to recover from the losses suffered from the Covid-19 slowdown. Will the aviation industry regroup and come back stronger from this?
Pedestrians along the near-empty Nanjing Road shopping street outside of the impacted areas during a lockdown due to Covid-19 in Shanghai, China, on 31 March 2022. (Qilai Shen/Bloomberg)

China gears up for grimmer economic outlook

China is currently dealing with its worst Covid outbreak since the start of the pandemic in 2020. It is aso facing the "triple pressures" of shrinking demand, disrupted supply and weakening expectations. The central government has introduced new policies and measures such as tax cuts for businesses, the easing of property market restrictions, and providing support for local governments' infrastructure investment, but analysts are expecting a bumpy road ahead for China's economic growth.