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Chinese President Xi Jinping has recently emphasised the concept of “domestic circulation”, or focusing on domestic markets. But while this might prompt concern that China’s economy may be shut off from the rest of the world, given current circumstances, this is unlikely. What China needs to guard against though, says Zaobao associate editor Han Yong Hong, is the groupthink generated by a closed loop of ideas.

Beijing has pledged financing, materials, technology and manpower to build railroads, hydropower stations and other infrastructure projects in Southeast Asian countries under the BRI. But China continues to face enormous challenges getting projects off the ground in countries that need the investment most. US academic Murray Hiebert examines why.

Media commentator Cai Enze frowns on the beggar-thy-neighbour approach of improving one’s business at a rival’s expense. In his view, big names in China’s internet market — Baidu, Alibaba, Tencent, and JD.com (known as BATJ) — should practise more openness and cooperation rather than rivalry and mutual blocks.

“Little sisters” — young women urbanites between 20-40 who have high spending power and little financial commitments — are the new darling demographic for those targeting China’s domestic market. In fact, the 2020 market size of the “little sisters economy” in China is expected to reach five trillion RMB. In keeping their buy-in, integrating e-commerce with social apps is key.

As the coronavirus continues to affect supply chains worldwide, especially with China being a key hub, Japan is taking steps to diversity its sources and be less reliant on China. However, contrary to previous speculations, Japanese academic Shin Kawashima does not think that the Japanese government is attempting to decouple from China, in the way that the decoupling of advanced industries is being carried out in the US.

The West has been setting up new rules and regulations targeting China's economic system, which they regard as a non-market economy that could undermine the proper functioning of international trade. These rules and regulations are formulated through international organisations, multilateral and bilateral trade agreements, and even as unilateral domestic laws. However, Chinese academic Zhu Ying says China is not buckling under pressure as its market economy is a mere means for China’s economic development, and not the end goal of its economic system.

With Covid-19 uncertainty and downturns pummelling its export-dependent economy, China’s leaders are trying to steer companies towards the domestic market instead. This may seem like a case of putting old wine in a new bottle, as China has tried this route before. Significant challenges are proving yet again that achieving export sales domestically is no mean feat. Can export-driven companies brave the storm while they reinvent themselves and recover?

Yu Hong says while the US is mobilising all of its national strength to try to convince the international community to stand against the BRI, there are ways that China’s Belt and Road Initiative can have a second wind. As China rises to the challenge of advancing its “grand strategy” amid a global economy ravaged by Covid-19 and an increasingly hostile international environment, the key to solving its woes is in building trust. 

Since China launched its BRI in 2013, over 100 countries have signed agreements with China to work together on projects such as railways, highways, ports and other infrastructure. According to estimates from Refinitiv, there are over 2,600 projects in the BRI with a combined value of US$3.7 trillion. However, amid the pandemic spread, disruptions to global supply chains, anti-Chinese sentiment and clamours for debt relief, China is facing major hurdles and dilemmas on how it should forge ahead with the BRI. Zaobao correspondent Yang Danxu reports from Beijing.