Economic recovery

Despite the challenges of Covid-19, China registered 2.3% growth in 2020, the only major economy to do so. A combination of able pandemic containment efforts, expansion in industrial production and fixed asset investment, as well as prompt measures to help micro, small and medium enterprises brought them to this point. If this positive trajectory continues, China looks set to continue its remarkable rebound in 2021.

Even if it might be a unilateral move, China should embark on its third phase of opening up, says Zheng Yongnian. The first phase of China’s opening up took place after the Opium War while the second was led by Deng Xiaoping’s reforms. Now, in the face of unprecedented challenges of the new century, China must undertake a higher-order opening up, and work towards setting global standards and formulating rules at the international level. These endeavours begin at home, with the domestic standardisation of rules in different regions and localities.

US-based researcher Wei Da feels that both China and the US need to make significant adjustments in their relations with each other, or else the scenario of a new Cold War and a real threat of hot war will not be far off. Who needs to understand that the world is different now, and adjustments have to be made? And who is the more backward party that has to adjust more?

Cai Daolu of the NUS Business School says that the Comprehensive Agreement on Investment (CAI) between China and the EU can help to reduce uncertainty and facilitate the flow of investment, technology and know-how across borders. In fluid times, good old-fashioned economic integration and openness to foreign direct investment are just the booster shot that the world economy needs.

Zhou Wenxing observes that the Biden administration needs to turn a new page on US-China relations. One way to do this would be to go with a derivative of the US’s engagement policy of the past. Only this time, it should not seek to change China, but change its own view of how cooperation and peaceful coexistence with China can be achieved in the next decade and beyond.

China has received favourable assessments from several quarters recently, from its handling of the pandemic to the way its economy is set to surpass the US’s earlier than planned. However, instead of revelling in such praise, China is keeping a relatively low profile. Zaobao correspondent Yang Danxu looks at why China is playing it cautious.

The liberalist discursive system leaves little room for one to contemplate the possibility that a strong government can also be a good government, much less the positives of the East Asian developmental state or Asian values. In fact, under the East Asian social contract, people are willing to empower the government for greater outcomes for all, and the government works to win the approval of the people as a means to preserve their legitimacy. Now, when the flaws of liberalism are laid bare by Covid-19 and other crises, it may be worth taking a closer look at the merits of the East Asian social contract. 

Chinese foreign ministry spokesperson Zhao Lijian's recent tweet of an image depicting an Australian soldier holding a knife to a child’s throat has brought China-Australia relations to a new low. While the Australian prime minister has softened his stance and even made goodwill gestures to China, these were rejected by Chinese officials and its people. Edwin Ong traces the deterioration of China-Australia relations and notes that China may not rein in its abrasive wolf-warrior tactics anytime soon. However, he says such tactics may not benefit China in the end.

Cambodia’s post-pandemic foreign policy is constrained by the need to sustain its economic growth while maintaining independence and sovereignty, amid the challenge and uncertainty caused by the growing strategic competition between China and the US. Academic Kimkong Heng says Cambodia needs to refrain from actions that appear to serve China’s core strategic interests, proactively engage all strategic partners, and walk a diplomatic tightrope between China and the US.