Digital economy

The pandemic has provided a chance for a review of online internet platforms. Technology specialist Yin Ruizhi explains why online education platforms are getting the shorter end of the stick and why this offers a lesson for others hoping to ride the digital wave.

Media commentator Cai Enze frowns on the beggar-thy-neighbour approach of improving one’s business at a rival’s expense. In his view, big names in China’s internet market — Baidu, Alibaba, Tencent, and JD.com (known as BATJ) — should practise more openness and cooperation rather than rivalry and mutual blocks.

Following TikTok’s shutting down in the Indian market, and the US’s announcement of its ban, countries such as Japan and New Zealand have also begun to consider imposing sanctions on TikTok. Does the crux of the problem lie in the company’s practices over user privacy and information security, or in the geopolitical struggle among the major powers? In the future, will other Chinese technology companies face the same fate as TikTok when they expand overseas?

Senior military officers from India and China held the latest high-level talks to discuss border tensions along the Line of Actual Control (LAC) on 14 July. The talk which lasted for 15 hours took place at Chushul on the Indian side of the LAC, and contents of the discussion are yet to be made public. Although India and China have had their border disagreements, they are partners economically. Recently, the Indian government has banned 59 Chinese apps on grounds of national security, while Indian Prime Minister Narendra Modi has deleted his Weibo account. India has also threatened to block Huawei's 5G system. What are the likely consequences? China academic Xu Hongbo examines the issue.

Since China launched its BRI in 2013, over 100 countries have signed agreements with China to work together on projects such as railways, highways, ports and other infrastructure. According to estimates from Refinitiv, there are over 2,600 projects in the BRI with a combined value of US$3.7 trillion. However, amid the pandemic spread, disruptions to global supply chains, anti-Chinese sentiment and clamours for debt relief, China is facing major hurdles and dilemmas on how it should forge ahead with the BRI. Zaobao correspondent Yang Danxu reports from Beijing.

In the post-Covid-19 world, global supply chains are expected to be reconfigured as countries look to reduce their reliance on China. Enter greater room for ASEAN-China cooperation, particularly in areas related to the digital economy, such as in the development of smart cities. Associate Professor Gu Qingyang of the Lee Kuan Yew School of Public Policy (LKYSPP) sets out the arguments.

The People’s Bank of China recently started pilot-testing a digital RMB in Shenzhen, Suzhou, Chengdu and Xiong’an New Area. Will this development threaten the US dollar’s role as the world’s reserve currency in the future? Meanwhile, Facebook and the non-profit Libra Association headquartered in Switzerland have been working towards launching a revolutionary cryptocurrency since June 2019. Although the shape of the project has changed, what will Libra be adding to the mix?

Technology specialist Yin Ruizhi points out that helped along by work-from-home orders and enterprises rushing to take their businesses online, e-commerce is growing faster than ever before, but this is leading to an unequal distribution of earnings and job opportunities, which governments have to look out for.

Professor Zheng Yongnian recognises that the economic impact of the coronavirus will be deep. Beyond thinking about whether short-term cash payouts should be given, he mulls over measures that can see China through protracted headwinds. Key is the political will needed to move the country’s strategies away from GDPism, or an obsession with GDP, to those of building social safeguards as the country strives to build a sustainable economy.