Economy

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?

Chinese netizens and commentators have largely celebrated the RCEP as being China-led and a coup for China. Zhu Ying provides a reality check as to why the Chinese should instead have their feet firmly on the ground.

After years of being excluded from the TPP that later became the CPTPP, Chinese President Xi Jinping recently commented that China is “favourably considering” joining the CPTPP. Zaobao correspondent Yu Zeyuan looks at why China seems to be keen to hop on this bandwagon which was originally set up to target China.

RCEP, the largest free trade agreement signed thus far, includes China, Japan and South Korea — the largest, second, and fourth largest economies in Asia. This heralds a new Asian era, says Zheng Weibin. Apart from the pure economic benefits that this will bring, the fact that the US is not a part of the grouping gives China some leverage against moves from the US such as its military presence in East Asia and attempts to reforge alliances against China. In this game of move and countermove, who will be the first to say "checkmate"?

Some are of the opinion that an e-RMB will encourage the internationalisation of the RMB as a major global currency. NUS academic Duan Jin-Chuan argues that whether the RMB is digitalised or not is not the key issue; internationalisation of the RMB really depends on demand for and attractiveness of the RMB as a trading and value storage tool.

The signing of the 15-member Regional Comprehensive Economic Partnership is significant, and not only due to the fact that the trade deal will cover a third of the world’s population and GDP. The RCEP also affirms the power of the East Asia concept and ASEAN’s centrality within it.