Manufacturing

Despite a booming electric vehicle (EV) market in China, local EV manufacturers are facing a tough road ahead as the Chinese government cuts subsidies and EV giant Tesla increases its competitiveness by lowering prices. Chinese financial commentator Tan Haojun believes that Chinese EV manufacturers would need to compete in terms of research and development in order to stay in the EV market.

India holds the prospect of driving the biggest change in the global economy in the next quarter century just as China did in the previous one, says economic professor Arvind Panagariya. India has several factors in its favour, but it must also push ahead with its reform agenda and open its economy wider to friendly countries through free trade agreements to make the best of its time in the sun.

According to a development plan for China’s software and information technology (IT) service industry from 2021 to 2025, China is expected to significantly expand its capacity for developing key software and build two to three open-source communities with international influence by 2025. Meanwhile, China’s giant state-owned enterprises are also rushing to crank up domestic purchases of innovative IT applications under government pressure.

While investments by Taiwanese enterprises in mainland China have declined due to geopolitical factors and Covid-19, many still have one foot in the massive domestic market. As a result, a number of Taiwanese enterprises have turned into “new mainland enterprises” as they integrate into the mainland’s domestic market. Zaobao journalist Miao Zong-Han looks into where Taiwanese enterprises are moving towards.

Academics Guanie Lim and Chengwei Xu examine the close interdependence of Japanese and Chinese firms through the case study of Toyota. Amid the talk of geopolitical tensions accelerating the risk of decoupling, some hard facts may put things into perspective.

While China’s prospects for better economic performance in 2023 are bright, says NUS academic Xu Le, the road to economic recovery is expected to be bumpy.

Nongfu Spring, China’s largest packaged drinks company, prides itself on its clean and green natural water source and low production costs. However, Chinese academic Zhang Tiankan stresses that despite its financial success, the company will need to do more for the environment if it wants to keep its future growth intact.

This year’s dramatic geopolitical changes have significantly altered the calculus for foreign investment in China as large European enterprises are increasingly taking the lead and Japanese businesses are retreating in manufacturing and advancing in services. American companies, on the other hand, are frozen as the US government imposes tough sanctions on China’s tech sector and as manufacturers weigh strategic moves back to the US.

Taiwanese academic Hung-Jeng Tsai analyses decades of Taiwan’s Southbound Policy, now embodied in the latest iteration of the New Southbound Policy under President Tsai Ing-wen. He finds that despite the fanfare, few benefits have been won for Taiwan.