Erratic and unreasonable governance of local governments and a shift in public opinion towards left-wing ideology are just some of the causes for the private sector’s lack of confidence in China, says academic Han Heyuan. Even with the latest measures to boost the sector, government efforts seem to fall short of expectations.
Economy
Economy
Chinese academic Han Heyuan notes that following the pandemic, disposable income in China is not at a level that allows for more domestic consumer spending, leading to economic growth being hampered. Also, the Chinese mentality is one of saving rather than spending, which makes it more of a challenge to encourage domestic demand.
Economy
In response to former US President Donald Trump’s recent scare about China trying to “displace the US dollar as the number one currency throughout the world”, academic Han Heyuan says that a certain equilibrium is maintained by the US suffering a trade deficit but safeguarding dollar hegemony. If the US wants to bring manufacturing back to the US, it may not be able to export dollars the way it used to, and cannot hope for the dominance of the US dollar to hold.
Economy
Chinese academic Han Heyuan notes that while China is claiming that its economic growth outlook remains healthy, the signs are there that changes to its population would also mean changes to its economic growth. Other factors such as dependence on overseas markets would also come into play.
Economy
Han Heyuan asserts that rising property prices in China are not just the “biggest grey rhino” in terms of financial risks as some policymakers have said, but also a catalyst for a slew of development and social issues such as the lack of entrepreneurs, negative attitudes to work, and falling birth rates.