Domestic consumption

China’s top officials have set out the target for the country’s economic growth and drivers for 2023, but the real work is just beginning. To meet economic growth targets and ensure economic recovery, it seems that the basic idea is to boost domestic demand and support the private sector.

Population decline can actually bring multiple dividends, contrary to popular belief, says East Asian Institute senior research fellow Lance Gore. Instead of looking for solutions to economic crises and population decline that are capitalist in nature and do not address the root causes, this is an opportunity to explore how socialism in China can deliver solutions that turn crisis into opportunity.

With Valentine’s Day just over, The Economist’s tongue-in-cheek Cost of Loving Index reflects the high cost of living in Chinese cities compared with global cities such as New York and Paris. Zaobao’s associate editor Han Yong Hong looks deeper into the spending habits of the Chinese and what it might mean for economic recovery.

After three years of Covid-19 disruption, China’s economy and society are starting to get back on track. However, it is facing stiff external pressure, as shown by the further China-US fallout from the recent “balloon incident". Zaobao correspondent Yu Zeyuan looks at the challenges China’s economic recovery faces from the outside world.

The Chinese film industry has released several blockbusters over the Chinese New Year period, and crowds have also returned to cinemas. However, the off-screen drama seems to be more interesting than the movies themselves, with claims of various forms of dishonest or misleading figures for ticket sales, complete with lawsuits and competition for audiences.

Optimism over China's economic outlook may be rising, but its recovery is uneven, with different industries experiencing different levels of rebound. Furthermore, can Chinese authorities ensure a better business environment and greater transparency, as well as policy consistency and guarantee of the rule of law, to attract back businesses and investors?

China research analyst Chen Long gives a positive assessment of China’s economic prospects in 2023, pointing out that the swift U-turn on Covid policies may wreak havoc in the short-term, but be the catalyst to drive economic growth in the Year of the Rabbit. Variables are looking favourable, with the consumer spending and housing sector showing potential, and government policies going in the right direction.

China’s reopening to the world on 8 January has led to hopes that the Chinese economy will rebound sooner and faster than expected. Lianhe Zaobao correspondent Chen Jing speaks with experts and business owners to find out the obstacles ahead for China, and how China's reopening will impact the regional and global economy.

With China's policy pendulum finally swinging from stamping out and controlling the spread of the virus towards spurring economic growth, how will its economy perform in 2023?