Private enterprise

Commentator Chen Kuohsiang notes that even after the 20th Party Congress and talks between Chinese and US Presidents Xi Jinping and Joe Biden during the G20 summit, the Chinese economy is not facing an easy time, not least because of Covid-19 controls, the US's trade restrictions and China's stringent policy on private enterprises.

China’s 20th Party Congress signalled that the government is focused on dual circulation, in particular domestic circulation. However, that does not mean that China has the intention for implementing a closed-door policy. In fact, a healthy domestic circulation will boost China's ecosystem for innovation and growth and help China further open up.

Peterson Institute of International Economics researchers Tianlei Huang and Nicolas Véron analyse the seeming anomaly that an increasingly statist policy environment in China has not prevented a rapid rise of the private sector. While various factors have paused this rise, will the upward trajectory likely resume in President Xi’s third term?

Now that the new Politburo Standing Committee has been appointed after the 20th Party Congress, it faces the biggest challenge of ensuring economic growth amid the repeated pandemic outbreaks. How long can the Chinese Communist Party maintain its zero-Covid policy before public frustration boils over?

Zaobao correspondent Yang Danxu notes that China is facing multiple headwinds that are making its economic recovery all the more elusive. From dealing with incessant Covid-19 outbreaks to the real estate crisis, economic recovery has become a dire political issue, especially with the impending 20th Party Congress to be held later this year.

Zaobao correspondent Yu Zeyuan notes that the announcement of Chinese SOEs’ planned exit from the US market is a result of the intensifying China-US rivalry, and a sign of economic and financial decoupling. However, the exit might be just the beginning — there may be more Chinese companies pulling out of the US market in future.

EAI academic Qian Jiwei notes that as China’s space capabilities increase, the field is being opened up to private companies. This move is likely to spark off greater innovation and efficiency for the industry and give China a leg up in the space race, but challenges exist in offering targeted policies and managing innovative outputs.

Amid recent news of Chinese ride-hailing company Didi delisting from the New York Stock Exchange, Zaobao correspondent Edwin Ong notes that China seems to be closing a regulatory loophole allowing companies to sidestep the Chinese authorities and get listed overseas. In turn, the US is taking action to require audit checks on Chinese companies that are already listed or want to get listed in the US. Is this a sign of financial decoupling between the US and China or will both sides reach an agreement on regulations?

Heightened gestures of corporate social responsibility and outright donations from major companies have been declared since the Chinese government’s recent push for “common prosperity”. Are these simply knee-jerk reactions to the government’s stance? Can companies be encouraged to be more socially responsible in the long term? China is all abuzz with talk on ways to achieve common prosperity.