Economic recovery

Negotiations on the investment agreement between the EU and China were concluded at the end of last year but the European Parliament recently passed a resolution to freeze any consideration or discussion of the agreement. This was following retaliatory sanctions from China after the EU's round of Xinjiang-related sanctions. NUS academic Cai Daolu sees the suspension as a economic and trade relationship hiccup in the short run. But if prolonged, it would turn into a missed opportunity, not just for EU and China, but for the global economy as well.

The People’s Bank of China (PBOC)'s announcement that it will raise the reserve requirement ratio (RRR) for foreign currency deposits by 2% confirms that it will intervene decisively when necessary to prevent a sharp appreciation of the RMB. Too much is at stake: with raw materials in short supply, the RMB’s appreciation will not reduce imported inflation and may at the same time affect exporters.

US climate envoy John Kerry’s visit to China was aimed at getting China to participate in the upcoming US-hosted virtual climate summit later this week, which in turn could be the first step to further dialogue between the leaders of the two countries. At the same time, China also held discussions with France and Germany on climate trajectories. Zaobao correspondent Yu Zeyuan analyses how climate cooperation can be a pivot for relations between China and the West.

China is reacting to sanctions imposed by the West with sanctions of its own, with the latest salvo affecting US and Canadian individuals and entities. Zaobao correspondent Yu Zeyuan looks at the factors behind China’s increasing penchant for tit-for-tat sanctions.

Based on science, there is no firm understanding of the effectiveness of the vaccines or how long they last, so getting vaccinated does not mean immunity. Based on politics however, countries seem to be starting to use vaccine nationalism as a tool. Is it not enough to have two worlds split apart by different internets — now will we see a world divided into those who used the Chinese vaccine and those who used other vaccines? Viruses know no borders, but it’s looking like vaccinations will. 

Zaobao correspondent Yu Zeyuan notes the fiery start to the high-level dialogue between China and the US held in Alaska, with both sides trading barbs. However, amid the aggression and the "catharsis" some Chinese netizens felt from China standing up to the West after 120 years, some real communication did take place between the two countries where substantive issues were discussed.

Amid the gloom, there’s room for optimism in Asia in the post-Covid-19 landscape, says Benjamin Hung, CEO, Asia, Standard Chartered. The pandemic has speeded up structural changes in this growing region’s business landscape, and created greater opportunities which will pave the way for Asia’s strong rebound in 2021 and beyond.

Even as China talks of a “dual circulation” system and building a “super-sized domestic market”, it seems that its population of 1.4 billion has yet to translate into a strong consumer market. Zaobao correspondent Yang Danxu looks into what it will take for the Chinese government’s plan to work.

Even as the US government blacklists several Chinese companies for being “Chinese Communist military companies” or a national security threat, Wall Street does not seem fazed; investors seem prepared to put their money where their mouth is when it comes to betting on China.