Central bank digital currencies (CBDCs) can potentially optimise and vastly improve the central bank’s monetary policy transmission with preset conditions to incorporate forward-looking and counter-cyclical features. This means that central banks can accurately control the amount, direction and intensity of liquidity or money supply flowing to the desired industries, thereby allowing industries to achieve an optimal level of production and reduce the risk of inflation or deflation. Earlier this year, China tracked and paid wages to builders in Xiong’an using its digital RMB, e-CNY. Is this a harbinger of things to come?
Digital
Technology
Facebook’s Mark Zuckerberg recently said, “Think of the metaverse as an immersive virtual world where people can spend time together and hang out, much like you can do today with virtual reality, dialed up to 11.” Stocks of companies working on constructing the said metaverse have been on the rise. China, with its huge video game market, should have a head start in this realm, but authorities are sounding words of caution. They fear the metaverse will be as ephemeral as it seems and worse, even harder to regulate. How will it get a piece of the pie in its own way?
Technology
With the Chinese government’s recent big crackdown on the education sector, some people are concerned that other internet platforms such as Alibaba and Meituan might be next. Technology specialist Yin Ruizhi explains why it is unlikely that Chinese internet titans will be hit as hard.
Economy
China’s crackdown on cryptocurrencies has increased the volatility of the market, not least with bitcoin miners fleeing and the price of bitcoin plummeting. What are the reasons behind China’s regulatory clampdowns and will other countries follow suit?
Society
A recent article in China harshly criticised online gaming as a “spiritual opium”, leading to speculation that online gaming, as well as gaming companies such as Tencent, might be the next target of China’s regulatory agencies. Zaobao’s China Desk takes a closer look at what might be in store.
Technology
Dr Kai-Fu Lee recently spoke at a summit reviewing the development of artificial intelligence. He gave five predictions about the industrial changes that would be brought about by the combination of artificial intelligence and other new technologies. Lee feels these changes would allow China to lead the world in science and technology in the next 20 years or so. This is the edited version of his speech.
Technology
In recent years and since the pandemic led to the surge in livestreaming, e-learning and other online activities, the demand for cloud computing and related services has increased significantly. Chinese companies led by frontrunners Huawei, Tencent and Alibaba are launching into all-out competition in the cloud services sector. While Huawei has been fiercely climbing the ranks with the injection of talent and funding, Alibaba and Tencent are not resting on their laurels either. What could be their winning war chests? And are they ready to take on the world? Caixin journalist Zhang Erchi finds out.
Economy
According to a pulse survey conducted by Standard Chartered, Chinese companies are attracted to ASEAN’s large market and potential as regional production bases. External factors such as the Regional Comprehensive Economic Agreement (RCEP) could also funnel greater Chinese investment into the region in areas such as high-value manufacturing, energy and digital services.
Economy
In part 2 of his article on China’s digital currency ambitions, James Pang takes a look at how a Chinese central bank-issued digital currency — the DCEP — can complement existing e-payment methods and have an edge over traditional cash and cryptocurrencies when it is fully rolled out. Being the first major economy to launch a CBDC, China’s experience will be useful for other countries looking to hop onto the digital currency bandwagon. Utilisation of Chinese DCEP could also aid the process of internationalising the Chinese Yuan (RMB).