Economy

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.
A general view of visitors looking at models from BYD, a Chinese automobile manufacturer, ahead of the official opening of the 2023 Munich Auto Show IAA Mobility, in Munich, Germany, on 4 September 2023. (Leonhard Simon/Reuters)

China-Latin America ties deepen amid boom in cross-border auto trade, e-commerce

China has been Latin America’s second largest trading partner since 2012, and last year total bilateral trade reached a record high of US$486 billion. Against the backdrop of the ongoing friction between Beijing and Washington, and the latter’s push for nearshore trade, Mexico has been the biggest beneficiary.
A screen showing the Hang Seng Index is seen outside Exchange Square, in Hong Kong, China, on 18 August 2023. (Tyrone Siu/Reuters)

Chinese netizens: Hong Kong now an international financial centre 'heritage site'

Hong Kong’s position as an international financial centre is now a thing of the past as multinational corporations withdraw from the city and its stock market shows signs of foreign capital outflows. Lianhe Zaobao journalist Tai Hing Shing finds out if Hong Kong’s financial market is truly on its way down.