Chinese academic Yu Zhi notes that both the US and China need to align their domestic and foreign policies. The US needs to get the coronavirus pandemic under control and prove that a democratic system still works and that the US is still a leader in universal values. China, on the other hand, needs to take a more market-oriented approach to economic and industrial development and show that its respect for global diversity extends domestically as well.
The China-US trade war looks set to continue under the new Biden administration, says economics professor Zhu Ying. Whether in terms of preventing technology transfer that could have military applications or seeking to enforce "structural changes” in China’s economy for fairer competition, the US will seek leverage through the trade war. Are we heading for a stalemate if the US wants to see a China that is playing by global rules, but the Chinese insist on pursuing an economic model with Chinese characteristics?
Audience ratings of the CCTV New Year’s Gala give quite an accurate reflection of north-south divides, which judging by the latest economic information, are still very relevant in China today. Zaobao correspondent Yang Danxu casts a keen eye on the data.
China’s willingness to consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is perhaps an admission that emphasising free trade but ignoring fair trade is no longer sustainable. Even sacred cows such as its state-owned enterprises (SOEs) and insistence on the WTO platform for multilateral trade negotiations may be up for discussion. On a practical level, the CPTPP may just be the external push it needs to force its SOEs to reform.
With the recent investigation into Alibaba for alleged monopolistic actions, Chinese legal expert Zong Haichao explores the need for balance in the measures taken by the Chinese government to curb monopolies. While many expect 2021 to be “year one” of the anti-monopoly era, Zong cautions that there are many challenges facing China's anti-monopoly moves, including the presence of state-owned enterprises and the lack of a sophisticated Chinese legislative structure.
Talks on the China-EU investment deal were concluded on 30 December 2020, lending fresh impetus to China’s further opening up to the world. However, the response so far, both externally and internally, seems to be lukewarm to the idea of what some call China’s third opening up. Zaobao associate editor Han Yong Hong ponders why this is so and analyses where China is likely to go from here.
Even back in the Qing dynasty, the concept of “state-owned enterprises” was not a foreign one. The Qing government had the habit of maintaining monopolies by running their own enterprises or looking out for profitable industries and private companies, and taking control of them. Hong Kong commentator Chip Tsao notes that even grabbing profits could not prevent the fall of the Qing dynasty.
In the context of China-US competition, US-listed China concept stocks companies may find it advantageous to get secondary listings on the Hong Kong or Singapore stock exchange. US companies may also veer towards Singapore and Hong Kong when it comes to international arbitration cases. In the final analysis, will Singapore or Hong Kong have the edge?