Economy

People walk past a mural of a dragon in Beijing, China, on 30 December 2023. (Jade Gao/AFP)

2024 will be about Western economic normalisation, China’s deceleration and India’s catch-up

Economist Alicia García Herrero gives an overview of the global economic outlook in 2024, highlighting that gains in real income, among other factors, should help with the soft landing in the US while the eurozone should grow faster than the year before, having left the energy crisis aside. China will continue to decelerate slowly but steadily while the rest of emerging Asia will do well.
Afghan security personnel guard the inauguration ceremony of an iron ore mine, at Ghurian district in Herat province, Afghanistan, on 9 November 2023. (Mohsen Karimi/AFP)

Chain reaction of corruption is hurting Afghanistan's mining industry

Researcher Javed Noorani gives his assessment on the recent awarding of a contract in the Nuraba-Samti mine to an Afghan-Chinese joint venture, and comments on the wider cycle of corruption in Afghanistan's mining sector which may end up hurting the Afghan administration and dozens of small-scale Chinese developers.
Shoppers outside a department store in Berlin, Germany, 14 December 2023. (Krisztian Bocsi/Bloomberg)

De-risking from China easier said than done for German companies

In theory, the Germans are supportive of the government’s call for greater economic independence from China. In practice, this is hard to implement. A roadmap and a better explanation to companies of how this will work and who will pay the price is needed, says The Berlin Pulse editor Jonathan Lehrer.
Pedestrians walk at Shibuya Crossing in the Shibuya district of Tokyo, Japan, on 27 October 2023. (Philip Fong/AFP)

China may find cure for stagflation by studying Japan’s experience

According to a report by Morgan Stanley released in August, China is facing the triple challenge of mounting debt, an ageing workforce and deflation, raising concern that the country is heading for a fate similar to Japan’s in the 1990s. Could Japan’s experience offer lessons to Chinese policymakers about how to battle prolonged stagnation?
Vietnam's President Vo Van Thuong (in blue tie and spectacles) arrives at Beijing Capital International Airport ahead of the Belt and Road Forum in the Chinese capital on 17 October 2023. (Parker Song/AFP)

Late to the party: Vietnam and the Belt and Road Initiative

Chinese-funded investments into Laos and Cambodia have transformed the geo-economic landscape in Vietnam’s immediate neighbourhood. This has caused Hanoi to give China’s Belt and Road Initiative another look.
A person rides a bike past Beijing's central business district in China, on 1 November 2023. (Tingshu Wang/Reuters)

China to back down from extreme measures for economic stability

The Central Economic Work Conference held earlier this week has set the tone for China's economic development next year, with the aim of establishing the new before abolishing the old, essentially ensuring stable growth across all sectors. But what remains is whether these slogans and calls can turn into practical action and change. Lianhe Zaobao correspondent Chen Jing tells us more.
An electronic board shows Shanghai and Shenzhen stock indices at the Lujiazui financial district in Shanghai, China, 17 March 2023. (Aly Song/Reuters)

Can public opinion boost China’s economy?

Lianhe Zaobao correspondent Yang Danxu looks at the outcomes of the Central Economic Work Conference held earlier this week, in particular the call to highlight China’s economic prospects. Amid a still-struggling economy, high-level officials are pulling all the stops to boost the public’s confidence in economic recovery.
Investors look at an electronic board showing stock information at a brokerage house in Shanghai, China, on 7 March 2016. (Aly Song/Reuters)

Decline in FDI may not mean investment flight from China

While the narrative of de-risking and reshoring is popular in the media, there is little evidence that firms have left or are leaving China en masse, says China research analyst Chen Long. The decline of FDI could be due to the simple fact that China’s interest rates are now much lower than those in most developed countries, thus making more sense for some foreign firms to move their retained earnings back home. That said, alarm bells should ring in Beijing, as efforts to stabilise foreign investment have yet to succeed.
The construction site of the China Contemporary Amperex Technology Co. (CATL) electric vehicle (EV) battery plant in Debrecen, Hungary, on 16 August 2023. (Akos Stiller/Bloomberg)

[Big read] Global fight for lithium battery raw materials heats up

Amid the global electric vehicle (EV) race, European countries and the US are doubling down on their efforts and investment towards building an even more localised vertically integrated battery supply chain. This comes amid China dominance over the global lithium-ion battery supply chain. As the race for raw materials continues, Southeast Asian countries such as Indonesia and Singapore can play an increasingly significant role. Lianhe Zaobao business correspondent Lai Oi Lai speaks with experts and business insiders to find out more.