Calls for de-dollarisation have increased since the financial sanctions of the Ukraine war and the very real threat of the US dollar being weaponised. In this context, academic Pei Sai Fan explains why conditions are ripe for China and Asia to offer innovative alternatives, such as developing regional digital currency cooperation in the payment and settlement of regional trade and investment, and expediting the development of new cross-border digital payment infrastructure in Asia known as multi-CBDC platform projects.
Japanese academic Kai Kajitani doubts that the Chinese government's emphasis on common prosperity last year had the aim of implementing radical redistributive policies. Instead, he sees it as a “vaccine”, in the sense of a precautionary measure against widening disparities caused by the essentially neoliberal growth-focused strategy that Beijing is consistently advancing.
The recent accelerated opening up of China’s capital market has presented a challenge to investment banks in China, which may have seen their role marginalised or bypassed by major foreign players who have international experience and are highly capitalised and better managed. Academics Pei Sai Fan and Peng Chang suggest how investment banks in China can compete and stay relevant.
At the sixth plenary session of the 19th Communist Party of China (CPC) Central Committee which begins today, the CPC is expected to consider the “Resolution of the CPC Central Committee on the Major Achievements of the Party’s Centennial Struggle”, the third of its kind in the party’s history. Rather than dwelling on the errors or lessons of history, the resolution is expected to reaffirm the party’s achievements and point the way ahead for the next 30 years.
Analyst Luo Zhiheng compares China's distribution of national income with 20 major economies and concludes that among other things, there is a need to address a lower-than-average share of personal income in China, in order to achieve common prosperity. The Chinese government can work towards the goal of fostering an olive-shaped income distribution pattern by adjusting the tax structure, providing more investment options to its people, and developing its social security network.
China has introduced a wave of strong regulatory moves on various industries over the past months, alarming international observers and causing jitters in the financial market. However, says academic Gu Qingyang, these moves could be necessary and might just set China in the right direction to face future challenges better.
Rather than wealth redistribution per se, the deeper issue lies in achieving social justice and equal opportunities for all. Going by the US example, it might not be wise or even feasible to curtail the riches of the wealthy or to straitjacket their business environment. Instead, they and other members of the community can be encouraged to help bring about equitable access to education and a better life.
With President Xi Jinping’s announcement of a new Beijing Stock Exchange, innovation-oriented SMEs will benefit and Beijing’s stock as a credible financial centre will also rise. Not only that, it is hoped that this will show China’s resolve to continue pursuing the market economy as it continues its push for “common prosperity”.
The assets of the top eight tycoons in the world have a combined worth of half the global population, says EAI academic Lance Gore, and the Chinese Communist Party faces a choice: Will China go down the old path of Western advanced capitalism, especially Anglo-American capitalism, and make the same mistakes as them? China has shown resolve in reforming its income distribution issues in various sectors including the entertainment industry. But it is not an easy path as vested interests may still interfere and the people can only rely on the self-purification of the Chinese Communist Party to uphold the regime’s people-centred nature.