Digital transformation

Analyst Zheng Weibin says that while the China-US competition is a tussle for power that some would compare to the Cold War of the 20th century, digital technology is making all the difference in the 21st century. Today's competition is taking place amid changing definitions of national strength and economic power, and China needs to catch up in terms of growing its digital economy and meeting the challenges that come with it.

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).

Recently, Xinba, one of the biggest influencers on Chinese streaming platform Kuaishou, sold US$300 million worth of goods in a single 12-hour session, in a testament to the enormous pull of live-streaming e-commerce. Research shows that crowdfunded products often rely on live-streaming e-commerce to convey product information and funnel early adopters. Such an ecosystem creates a positive business environment for producing and marketing new products. Technology specialist Yin Ruizhi looks at how live-streaming e-commerce is fast giving China the edge in product innovation.

Commentator David Ng explores the changes that are happening in China with developments in technology that allow vast changes in business models, from traditional offline transactions to online business, and “new retail”, which combines the two. How will the Chinese economy grow under these forces?

With the conclusion of the 1st ASEAN Digital Ministers Meeting (ADGMIN) last month and the series of digital policies introduced, ASEAN is ready to move forward on building an integrated digital economy. Even as ASEAN aims to become an important player in the digital global value chain, there are areas where China and ASEAN can work together to achieve a win-win situation. Professor Zhai Kun of Peking University and Yuan Ruichen, member of the research group of the BRI Big Data Innovation Experimental Project, suggest cooperation in areas such as building smart cities, cybersecurity and digital governance.

With the pandemic showing little signs of slowing and as countries around the world shift away from the traditional economy, academic Pei Sai Fan notes that this is an opportune time for Asia to boost its digital economic sector. Namely, there will be the opportunity to consider building a more integrated Asian digital economy and to promote Asian digital trade and a common digital currency.

Academics Pei Sai Fan, David Lee and Yan Li say that an understanding of other countries’ technological culture and policies is crucial in advancing digital economic cooperation. For instance, in the main, Singapore and China are able to mutually respect the differences in their blockchain and token policies, and focus on the complementarity of their approaches. Together, they can deepen their collaboration on central bank digital currencies and other projects, and lead the way regionally and globally in building digital economies of the future.

Academic Tham Siew Yean notes that Alibaba’s latest foray into Malaysia will bring a raft of e-commerce opportunities to the country. But there are concerns about its pervasive presence in the country and the possible impact on competition.

Professor Chan Heng Chee, Ambassador-at-Large and Singapore’s former ambassador to the US, addressed the Lianhe Zaobao Singapore-China Forum on 4 December via Zoom. She said that there is still much that Singapore and China can work together on, such as in tightening the nuts and bolts of the recently signed RCEP, enhancing the ASEAN-China FTA, exchanging views on the CPTPP and WTO reform, and facilitating cooperation in the digital sector.