Decoupling

A Boeing 787-10 Dreamliner taxis past the Final Assembly Building at Boeing South Carolina in North Charleston, South Carolina, US, 31 March 2017. (Randall Hill/Reuters)

Boeing losing out amid strained China-US trade relations

Three of China’s major airlines have announced plans to purchase about 300 aircrafts from Europe’s Airbus, much to the chagrin of the US’s Boeing. Zaobao correspondent Yu Zeyuan discusses the reasons behind the move and what this might portend.
Yang Jiechi (first from right) and Jake Sullivan (first from left) at their meeting in Luxembourg, 13 June 2022. (Xinhua)

Xi-Biden meeting unlikely as China-US relations stay locked in stalemate

While virtual meetings between Xi Jinping and Joe Biden have usually followed in-person meetings between the countries’ top diplomats, there is no sign of a virtual summit taking place any time soon after China's Yang Jiechi and US national security adviser Jake Sullivan met in Luxembourg. For the US, internal disagreement over trade tariff issues could be causing the pause. And in the case of China, it has already let go of any false hope for better ties.
Hungary-born US investor and philanthropist George Soros answers to questions after delivering a speech on the sidelines of the World Economic Forum annual meeting in Davos on 24 May 2022. (Photo: Fabrice Coffrini/AFP)

Why George Soros is obsessed with defeating Xi Jinping’s China

Chinese academic Sun Peisong notes that renowned financier George Soros has always been critical of China’s social system. While "the man who broke the Bank of England" has a keen eye for finance, Sun feels that Soros’s criticism of China’s “closed society” sheds light on his penchant for globalisation and dated means of making the wealthy wealthier.
A demonstrator wearing a face mask in the colours of the Ukraine flag attends a protest rally against the war in Ukraine at the German Chancellery in Berlin on 4 May 2022. (Tobias Schwarz/AFP)

Russia-Ukraine war: A turning point in Germany’s policy towards China

Economics professor Zhu Ying notes that even though Germany is economically dependent on China, its stand is changing due to the war in Ukraine, with China being seen as supportive of Russia’s invasion that goes against shared universal values. All in all, Germany’s increasing focus on values rather than economic interests is having a spillover effect on China.
A train on the China-Europe Railway Express, commemorating more than 10,000 trips made, March 2022. (Internet)

Russia-Ukraine war impacting China-Europe rail transportation and trade

With the ongoing Russia-Ukraine war, logistics providers have been hard put to keep goods moving between China and Europe. One route is the China Railway Express (CRE) that cuts through Russia and Ukraine, which gives sellers and suppliers cause for concern, leading to a sharp drop in the volume of goods being transported via that route. Zaobao correspondent Edwin Ong takes a look at the impact of the war and how the CRE can get through the challenging period that is coming.
Pedestrians pass a Chinese flag in Beijing, China, on 3 March 2022. (Qilai Shen/Bloomberg)

Stability and growth: Two Sessions' government work report spells out what China wants

China’s Two Sessions annual meetings commenced this week amid the Covid-19 pandemic and Russia’s invasion of Ukraine. The government work report delivered by Premier Li Keqiang outlined the key theme of “stability first” for China's economic growth and geopolitical outlook. Despite some calls for an armed reunification with Taiwan, Zaobao correspondent Yu Zeyuan says that nothing can distract China from its priority for stability, as it progresses towards building a modern China by 2035 amid challenges in its internal and external affairs.
Chinese paramilitary policemen keep watch while people visit Yu Garden in Shanghai, China, on 15 February 2022. (Hector Retamal/AFP)

China needs to work towards a new socialism

China is tottering between capitalism and old socialism in its pursuit of “socialism with Chinese characteristics”, says Lance Gore. Instead of further entrenching a system that feeds nationalism in the name of socialism, it would do well to update to a new socialism in which the concept of employment, wealth and happiness are redefined to better take advantage of the new technological revolution. But is China ready?
Traders work on the floor of the New York Stock Exchange (NYSE) on 15 November 2021 in New York City. (Spencer Platt/AFP)

What financial decoupling?

Claims that financial decoupling will occur between China and the US are not yet evident from the trade data, says NUS academic Christopher J. Voisey. In 2020, FDI inflows in China increased by 6% and the ease of doing business improved. And while there have been greater hurdles for Chinese companies seeking US listings, their stocks are often still available to foreign investors through alternative channels. Might some turbulence be par for the course as China seeks stronger autonomy and economic power?
This general view shows the headquarters of SenseTime, a Chinese artificial intelligence company based in Hong Kong on 13 December 2021, after the company postponed a planned US$767 million initial public offering after it was blacklisted by the US over human rights concerns in Xinjiang. (Peter Parks/AFP)

China's AI giant SenseTime blacklisted: Is China-US financial decoupling taking place?

The US government has seemingly pulled the rug from under the feet of SenseTime by putting it on a blacklist just a week before its planned IPO, effectively blocking US funding from the AI company. But while the official reason is human rights issues in Xinjiang, perhaps the real reason is the ongoing tech competition between the US and China. If so, it seems that the US has found another lever with which to pressure China — curtailing investment.