Economy

Peterson Institute of International Economics researchers Tianlei Huang and Nicolas Véron analyse the seeming anomaly that an increasingly statist policy environment in China has not prevented a rapid rise of the private sector. While various factors have paused this rise, will the upward trajectory likely resume in President Xi’s third term?

Two China-driven projects show striking contrasts. The newly opened Phnom Penh-Sihanoukville Expressway has been well-received by Cambodians. But grand plans for Sihanoukville to be an investment hub and “multi-purpose” city have instead seen Chinese businesses crowding out locals, a boom-bust cycle in construction and illicit trades.

While it faces stiff competition from countries in the region such as Vietnam, Malaysia stands in good stead to win high-quality investments from Taiwan.

Taiwanese academic Hung-Jeng Tsai analyses decades of Taiwan’s Southbound Policy, now embodied in the latest iteration of the New Southbound Policy under President Tsai Ing-wen. He finds that despite the fanfare, few benefits have been won for Taiwan.

Despite the wave of interest rate increases from central banks globally, China has gone the other way and cut borrowing cost, signalling a control in inflation in the country. But food prices, in particular pork products, have been soaring, and the continued weak domestic demand amid ongoing Covid-19 restrictions and a crisis of confidence among consumers worried about jobs and wages, pose major risks to China's economic stability.

Retired economist Zeng Yongchang shares his views on China’s land finance policies — while quick and efficient, land finance is unsustainable, as evidenced by the widening inequality, intensifying social conflicts and dire economic situation.

This week’s Global Financial Leaders' Investment Summit in Hong Kong was an effort by the Hong Kong government to restore its position as a financial hub, which has been somewhat weakened due to China’s pandemic measures and other global responses. But despite John Lee’s optimistic address at the summit, the actual situation appears to be less than rosy, with several adopting a wait-and-see attitude.

As energy prices soar in Europe, the continent has been turning to China to get it through the approaching winter, from purchasing electric blankets and thermal stockings to importing natural gas. Zaobao’s China Desk explores the geopolitical factors involved and how Europe is both dependent on China and resistant to this dependence.

Now that the new Politburo Standing Committee has been appointed after the 20th Party Congress, it faces the biggest challenge of ensuring economic growth amid the repeated pandemic outbreaks. How long can the Chinese Communist Party maintain its zero-Covid policy before public frustration boils over?