Economy

Ukrainian serviceman secures the site of a bombing at a shopping centre as Russia's invasion of Ukraine continues, in Kyiv, Ukraine, 21 March 2022. (Marko Djurica/File Photo/Reuters)

The impact of the Russia-Ukraine war on the Chinese economy

The ongoing Russia-Ukraine war has brought about significant impacts on the global economy. While some analysts think that China's economy will benefit from the war, NUS academic Xu Le points out that the situation is not clear-cut, as China will have to face hits to its exports, as well as rising energy prices and challenges to food security.
Fishing boats docked at a fishing port in Qiaogangzhen, Beihai, Guangxi, China, 20 March 2022. (CNS)

The growing difficulty of balancing China’s local government budgets

Despite many Chinese provincial-level regions reporting higher-than-expected revenues in 2021, some lower-level governments struggled with budgetary constraints. A gloomier budget outlook this year could add to woes all round and hurt local governments' capacity to finance investments and repay debts.
Young women look at panorama of Moskva River and Kremlin at a viewpoint in central Moscow, Russia, 22 March 2022. (Maxim Shemetov/Reuters)

Will de-dollarisation help China and Russia shape a new world order?

Russia and China have a common interest in being less reliant on the dollar in the face of sanctions or anticipated sanctions. But are they moving at the same pace and will their efforts be significant enough to achieve self-reliance and precipitate a sea change in the global economic order?
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, 16 March 2022. (Brendan McDermid/Reuters)

US regulations strangling the life out of China concept stocks?

Chinese concept stocks plunged after the US Securities and Exchange Commissions’ recent announcement that another five US-listed Chinese companies might be delisted for non-compliance with US regulations. Although there was a rebound after Vice-Premier Liu He’s reassurance that China will implement policies to stabilise the stock market and support overseas listings, Chinese companies looking to raise capital abroad will still have to deal with two sets of inherently contradictory regulations from the US and China.
Pedestrians along Nanjing Road near the Bund in Shanghai, China, on 27 February 2022. (Qilai Shen/Bloomberg)

Chinese membership in the CPTPP: Greater benefits than downside risks

A study has shown that if China joins the CPTPP, global income gains from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will quadruple to US$632 billion annually. With an eye to the economic benefits, a majority of Southeast Asians view China's membership of the CPTPP positively, the 2022 State of Southeast Asia survey report finds. ISEAS researcher Sithanonxay Suvannaphakdy further notes that Chinese membership of the CPTPP will help to ease China-US trade tensions. However, there are concerns about China's ability to abide by the rules of the CPTPP.
Pedestrians pass a Chinese flag in Beijing, China, on 3 March 2022. (Qilai Shen/Bloomberg)

Stability and growth: Two Sessions' government work report spells out what China wants

China’s Two Sessions annual meetings commenced this week amid the Covid-19 pandemic and Russia’s invasion of Ukraine. The government work report delivered by Premier Li Keqiang outlined the key theme of “stability first” for China's economic growth and geopolitical outlook. Despite some calls for an armed reunification with Taiwan, Zaobao correspondent Yu Zeyuan says that nothing can distract China from its priority for stability, as it progresses towards building a modern China by 2035 amid challenges in its internal and external affairs.
Chinese and Sri Lankan national flags flutter from poles at the Chinese-funded sea reclamation Port City project as sail boats compete in a sailing event attended by Chinese Foreign minister Wang Yi (not pictured) on the occasion of the 65th anniversary of diplomatic relations between the Sri Lanka and China at the Colombo Port city project, in Colombo, Sri Lanka, on 9 January 2022. (Ishara S. Kodikara/AFP)

Funding wars between China and the West: The politics of bankrolling developing countries

While several alternatives to China's Belt and Road Initiative have sprung up, such as the G7’s Build Back Better World and the EU’s Global Gateway, developing countries are not exactly facing a buffet spread of options, as each avenue comes with strings attached. Only time will tell if China will turn out to be a more benevolent lender and if the new Cold War will bring better spoils for developing countries.
A man wearing a protective mask is seen inside the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, 28 February 2020. (Aly Song/Reuters)

Digitalisation: How China’s smaller investment banks could compete with big foreign players

The recent accelerated opening up of China’s capital market has presented a challenge to investment banks in China, which may have seen their role marginalised or bypassed by major foreign players who have international experience and are highly capitalised and better managed. Academics Pei Sai Fan and Peng Chang suggest how investment banks in China can compete and stay relevant.
This photo taken on 15 November 2021 shows solar panels on hillsides at Xuanhua in Zhangjiakou, Hebei province, China. (Greg Baker/AFP)

Why China’s once red-hot solar sector is cooling

Over the past year, capital from industries such as liquor, finance, real estate and the internet has been pouring into the new energy sector, driving up the valuations of solar energy stocks in China. However, the industry looks set to come back down to earth. Why is this so?