Economic systems

Argentina's President Javier Milei leaves surrounded by media after delivering a speech at the World Economic Forum (WEF) meeting in Davos on 17 January 2024. (Fabrice Coffrini/AFP)

President Milei: Argentina is proof that collectivism does not work

In his recent speech at the World Economic Forum, Argentina’s President Javier Milei pointed out that collectivist experiments are never the solution to the problems afflicting the citizens of the world, but are, on the contrary, the cause. Commentator Jin Jian Guo takes a closer look at Milei’s criticisms and assertions.
Motorists and cyclists on the Bund in Shanghai, China, on 9 January 2024. (Qilai Shen/Bloomberg)

[Big read] When will the Chinese stock market thrive again?

Even with the efforts of the Chinese government to revitalise the stock market, investors and shareholders seem to be unconvinced and hesitant in putting in funding, which in turn is not helping the market to recover as fast as would be hoped. What else can be done to bring back the good days?
Four thousand US dollars are counted out by a banker counting currency at a bank in Westminster, Colorado, 3 November 2009. (Reuters/Rick Wilking)

Could de-dollarisation develop into an irreversible historical trend?

Zhang Yugui, dean of the School of Economics and Finance at the Shanghai International Studies University, notes that while the renminbi has gained traction as a global currency for trade settlements, investment and as a reserve currency, the US dollar will still maintain its hegemony until 2030. However, the US is most worried that de-dollarisation could develop into an irreversible historical trend.
An electronic board shows Shanghai and Shenzhen stock indices at the Lujiazui financial district in Shanghai, China, 17 March 2023. (Aly Song/Reuters)

Can public opinion boost China’s economy?

Lianhe Zaobao correspondent Yang Danxu looks at the outcomes of the Central Economic Work Conference held earlier this week, in particular the call to highlight China’s economic prospects. Amid a still-struggling economy, high-level officials are pulling all the stops to boost the public’s confidence in economic recovery.
Investors look at an electronic board showing stock information at a brokerage house in Shanghai, China, on 7 March 2016. (Aly Song/Reuters)

Decline in FDI may not mean investment flight from China

While the narrative of de-risking and reshoring is popular in the media, there is little evidence that firms have left or are leaving China en masse, says China research analyst Chen Long. The decline of FDI could be due to the simple fact that China’s interest rates are now much lower than those in most developed countries, thus making more sense for some foreign firms to move their retained earnings back home. That said, alarm bells should ring in Beijing, as efforts to stabilise foreign investment have yet to succeed.
Chinese President Xi Jinping pictured standing in front of the honour guard at the Great Hall of the People in Beijing, China, on 22 November 2023. (Florence Lo/Reuters)

President Xi's Shanghai visit: China yet to find a way out for its economy

This week, Chinese President Xi Jinping’s visit to Shanghai, China’s largest financial centre, has sent strong signals of the leadership’s emphasis on the country’s economic development. And it is clear from the itinerary the importance the higher-ups are placing on the three areas of finance, technology and livelihood. Nonetheless, Lianhe Zaobao associate editor Han Yong Hong notes more research needs to be done before the introduction of more powerful policies that can turn the tide of the sluggish economy.
Chinese President Xi Jinping, along with other leaders, attends the opening ceremony of the Belt and Road Forum (BRF) to mark the tenth anniversary of the Belt and Road Initiative at the Great Hall of the People in Beijing, on 18 October 2023. (Edgar Su/Reuters)

Ten years of the BRI: Where does it go from here?

Lianhe Zaobao correspondent Yang Danxu notes that after ten years, the BRI has a somewhat mixed report card. Some analysts say that the BRI has helped some countries, while others observe that progress has sometimes come at a cost, ranging from heavy debt to other indirect effects such as corruption and environmental damage.
The Invictus International School campus at Nanshan, Shenzhen announced its shuttering in July. (Photo: Daryl Lim)

Closure of international schools in China due to economic downturn

The current wave of closures among international schools in China can be attributed to factors such as high tuition fees, options in other countries, and falling birth rate. But the biggest factor is undoubtedly financial tightening by parents, in turn due to China’s economic situation. Zaobao journalist Daryl Lim finds out more.
In this picture taken on 30 August 2023, workers assemble a motorbike at the Northstar Precision Vietnam factory in Vinh Phuc province.  (Nhac Nguyen/AFP)

The global south's rare development opportunity as big countries de-risk

EAI academic Chen Gang notes that although the Chinese authorities are against the Western notion of “de-risking”, it has itself taken steps to de-risk, with ASEAN overtaking Europe and the US as China’s largest trade partner. As major countries are gaining ground in their de-risking strategies, the global south is set to benefit.