Economic systems

People walk along a pedestrian street in Shanghai on 28 October 2020. (Hector Retamal/AFP)

China is now 'a moderately affluent society'?

The recent adjustment of China’s “Four Comprehensives” at the recent fifth plenary session of the 19th Central Committee of the CCP signals that China has gauged itself to have “achieved a moderately affluent society” and will be reaching for greater goals. Zaobao correspondent Yu Zeyuan reads the signs.
People wearing face masks as a preventive measure against the Covid-19 coronavirus commute during rush hour in Beijing on 15 October 2020. (Nicolas Asfouri/AFP)

Why only China will maintain positive growth this year

Chinese financial commentator Tan Haojun looks at what China has done right to quickly recover after the pandemic, and what makes international financial institutions and analysts confident about its economy.
Li Hongzhang (L) and Henry Arthur Blake at the opening ceremony of the Kowloon-Guangzhou railway service, July 1900. (Wikimedia)

China's distrust of private enterprises goes back a long way

Even back in the Qing dynasty, the concept of “state-owned enterprises” was not a foreign one. The Qing government had the habit of maintaining monopolies by running their own enterprises or looking out for profitable industries and private companies, and taking control of them. Hong Kong commentator Chip Tsao notes that even grabbing profits could not prevent the fall of the Qing dynasty.
US President Donald Trump steps off Air Force One upon arrival at Minneapolis Saint Paul International Airport in Minneapolis, Minnesota on 30 September 2020. (Mandel Ngan/AFP)

Chinese socialism against American capitalism: The final showdown?

The Soviet Union and China have both previously tried and failed to overtake the US in various aspects. However, China's rise in the past few decades and the new Cold War has given China renewed impetus to duel the US for supremacy. Have they got enough firepower now with a government-led economic model that has a fair component of a market economy? Economics professor Zhu Ying looks at who might win.
People are reflected in a puddle after a rainfall as they walk along a shopping district in Beijing on 18 August 2020. (Noel Celis/AFP)

Will China's inward economic shift lead to a closed society?

Chinese President Xi Jinping has recently emphasised the concept of “domestic circulation”, or focusing on domestic markets. But while this might prompt concern that China’s economy may be shut off from the rest of the world, given current circumstances, this is unlikely. What China needs to guard against though, says Zaobao associate editor Han Yong Hong, is the groupthink generated by a closed loop of ideas.
Chinese and US flags flutter before a trade meeting in Shanghai, China, 30 July 2019. (Aly Song/File Photo/Reuters)

Chinese academic: 'China will walk its chosen path and let Western countries talk!'

In the current political climate, the possibility of a phase two trade deal between China and the US is practically a non-starter. So be it, says Zhu Ying. China has shown that it wants to walk its own path, and will probably do so even more resolutely as it bristles at criticism of “socialism with Chinese characteristics”.
A demonstrator wearing a protective mask holds a “Follow The Money” sign outside the U.S. Supreme Court in Washington, 9 July 2020. The court cleared a New York grand jury to get President Donald Trump's financial records while blocking for now House subpoenas that might have led to their public release before the election. (Sarah Silbiger/Bloomberg)

Chinese academic: The US is where money rules behind the facade of democracy

Chinese academic Qiao Xinsheng notes that despite its image of being democratic, the US is driven by capitalism and an individualism enjoyed only by a small number of elites. Such pre-existing conditions lead to a fragmented society made worse by the actions of President Donald Trump.
A security guard wearing a face mask walks past the Bund Financial Bull statue, on The Bund in Shanghai, China, on 18 March 2020. (Aly Song/File Photo/Reuters)

180 years later, China is still an outsider to the Western-led world order

The West has been setting up new rules and regulations targeting China's economic system, which they regard as a non-market economy that could undermine the proper functioning of international trade. These rules and regulations are formulated through international organisations, multilateral and bilateral trade agreements, and even as unilateral domestic laws. However, Chinese academic Zhu Ying says China is not buckling under pressure as its market economy is a mere means for China’s economic development, and not the end goal of its economic system.
An employee works on a production line manufacturing steel structures at a factory in Huzhou, Zhejiang province, China, on 17 May 2020. (China Daily via Reuters)

Can the domestic market save jobs, livelihoods and companies in China?

With Covid-19 uncertainty and downturns pummelling its export-dependent economy, China’s leaders are trying to steer companies towards the domestic market instead. This may seem like a case of putting old wine in a new bottle, as China has tried this route before. Significant challenges are proving yet again that achieving export sales domestically is no mean feat. Can export-driven companies brave the storm while they reinvent themselves and recover?