Economy

The RMB is now one of the most actively traded currencies in the world and is set to gain further traction globally this year, as the People’s Bank of China implements the government’s strategy to boost the currency’s use overseas, challenging the dominance of the US dollar in the long term.

Despite a booming electric vehicle (EV) market in China, local EV manufacturers are facing a tough road ahead as the Chinese government cuts subsidies and EV giant Tesla increases its competitiveness by lowering prices. Chinese financial commentator Tan Haojun believes that Chinese EV manufacturers would need to compete in terms of research and development in order to stay in the EV market.

Gambling and casino-hopping have long been Macau's calling card. Lianhe Zaobao’s China Desk looks into what else Macau has to offer, and how the local government is trying to wean its economy off the gaming industry, especially given mainland China’s clampdown on illegal gambling.

Verbal sparring by Chinese internet opinion makers seem to suggest that the winds are blowing in favour of private firms at the moment. But will officials be able to walk the talk in their quest to use the private sector to drive China’s economic growth?

Regulators are ramping up efforts to cull poorly performing firms and those that violate the rules or break the law. A record number of companies got the boot from Chinese mainland stock exchanges last year, and that number could even double in 2023.

India holds the prospect of driving the biggest change in the global economy in the next quarter century just as China did in the previous one, says economic professor Arvind Panagariya. India has several factors in its favour, but it must also push ahead with its reform agenda and open its economy wider to friendly countries through free trade agreements to make the best of its time in the sun.

China research analyst Chen Long gives a positive assessment of China’s economic prospects in 2023, pointing out that the swift U-turn on Covid policies may wreak havoc in the short-term, but be the catalyst to drive economic growth in the Year of the Rabbit. Variables are looking favourable, with the consumer spending and housing sector showing potential, and government policies going in the right direction.

Political commentator Jin Jian Guo observes that China economic policy has always been ruled by politics, and while it seems that the pendulum is swinging back in favour of private firms after a period of bashing and stifling, this is not a given as the politics of the day still rules.

Chinese billionaire Jack Ma has given up controlling rights in the company he founded, Ant Group Co. All eyes are now on what lies ahead for Ant and Alibaba, which owns 33% of the company and was co-founded by Ma.