Economy

EAI academic Yu Hong notes that the RCEP will bring greater regional economic integration by increasing trade in Asia-Pacific and generating new business opportunities for companies in the 15 member countries of ASEAN, China, Japan, South Korea, New Zealand and Australia. China and ASEAN in particular, are well-placed to reap many of the benefits.

In May this year, China’s leaders proposed a new dual circulation strategy featuring both domestic and international circulation, with emphasis on the former. Associate Professor Gu Qingyang of the Lee Kuan Yew School of Public Policy (LKYSPP) notes how this new strategy will complement the current global economic system, and how it will affect the rest of the world.

Academics Pei Sai Fan, David Lee and Yan Li say that an understanding of other countries’ technological culture and policies is crucial in advancing digital economic cooperation. For instance, in the main, Singapore and China are able to mutually respect the differences in their blockchain and token policies, and focus on the complementarity of their approaches. Together, they can deepen their collaboration on central bank digital currencies and other projects, and lead the way regionally and globally in building digital economies of the future.

With China’s internet giants now moving into the community group-buying market offering groceries at low prices, not everyone’s happy, as livelihoods will be affected and people have learnt a lesson from the huge price they have paid in the growth of these internet giants. Zaobao correspondent Yang Danxu examines the dark side of the “online vegetable basket” industry.

Academic Tham Siew Yean notes that Alibaba’s latest foray into Malaysia will bring a raft of e-commerce opportunities to the country. But there are concerns about its pervasive presence in the country and the possible impact on competition.

The meeting of the Politburo of the Chinese Communist Party last week in preparation for the annual Central Economic Work Conference gave a clear indication of China’s economic direction: it is going full steam ahead on shaping a dual circulation economy driven predominantly by domestic demand. In seeking to implement demand-side reforms, deep-seated social issues and monopolistic tendencies will be addressed.

Research analyst Fiona Huang argues that globalisation has a huge part to play in building global financial centres. If basic prerequisites such as close cooperation with regulators and market stability are met, the next-level condition for a flourishing global financial centre is an open attitude towards global capital and culture. How will the changing political milieu around the world today lead to a reshuffle of global financial centres?

With the recent signing of the RCEP and China’s comment that it will “favourably consider” joining the CPTPP, are prospects looking up for greater domestic reform and regional economic integration across the board, and will dreams of a free trade area of the Asia-Pacific have a higher chance of eventually taking shape? Japan-based academic Zhang Yun looks at the potential outlook.

Without India, the Regional Comprehensive Economic Partnership (RCEP) stops short of being a regional construct for the Indo-Pacific, says ISAS academic Amitendu Palit. However, India is unlikely to reconsider its decision in the foreseeable future because of its worsening relations with China. While China has expressed its interest to be part of the Comprehensive and Progressive Trans Pacific Partnership (CPTPP), might India’s domestic concerns lead it to miss the boat once again, to its own detriment?