Capitalism

Pedestrians cross a traffic intersection near commercial buildings in Beijing, China, 25 August 2021. (Qilai Shen/Bloomberg)

Why China is setting up the Beijing Stock Exchange

With President Xi Jinping’s announcement of a new Beijing Stock Exchange, innovation-oriented SMEs will benefit and Beijing’s stock as a credible financial centre will also rise. Not only that, it is hoped that this will show China’s resolve to continue pursuing the market economy as it continues its push for “common prosperity”.
Two men have their breakfast on the street in an older neighborhood in Shanghai, China on 30 August 2021. Chinese President Xi Jinping chaired a high-level meeting that “reviewed and approved” measures to fight monopolies, battle pollution and shore up strategic reserves, all areas that are crucial to his government’s push to improve the quality of life for the nation’s 1.4 billion people. (Qilai Shen/Bloomberg)

Can China succeed in income distribution reform and get rid of its celebrity economy?

The assets of the top eight tycoons in the world have a combined worth of half the global population, says EAI academic Lance Gore, and the Chinese Communist Party faces a choice: Will China go down the old path of Western advanced capitalism, especially Anglo-American capitalism, and make the same mistakes as them? China has shown resolve in reforming its income distribution issues in various sectors including the entertainment industry. But it is not an easy path as vested interests may still interfere and the people can only rely on the self-purification of the Chinese Communist Party to uphold the regime’s people-centred nature.
A billboard featuring Chinese President Xi Jinping is displayed at a compound in Shanghai, China, on 30 August 2021. (Qilai Shen/Bloomberg)

A new paradigm needed: China cannot achieve 'common prosperity' with Marxism and class struggle

While Marxism failed 30 years ago in the case of the Soviet Union, the Chinese Communist Party of today claims that it owes its success to the “theoretical advantage” of Marxism. However, rather than hanging on to ideological orthodoxy, a revolution of ideologies is needed to steer the building of an inclusive and harmonious society undergoing the fourth industrialisation. In the new paradigm, much thought will need to go into thinking through knotty issues such as the role of the market in socialism, the value of labour in a hi-tech economy and the role that entrepreneurs can play as builders of socialism.
A bolt of lightning crosses the sky as people look at buildings displaying a light show on the eve of the 100th anniversary of the Chinese Communist Party in Beijing, China, on 30 June 2021. (Noel Celis/AFP)

'Winner takes all' no more: China is ready to build the socialist regulatory state

After observing, learning about and experimenting with selected components of capitalism, China is now ready to govern the market in its own style, to create the society of a new socialist regulatory state while bolstering support for the government. Lance Gore says it holds true, whether in China's history or the imagined fairer future society, that Chinese merchants and capital must see their contributions through the larger lens of society and the nation. That is, the capital market must serve the real economy and develop the productive strength of the nation. Creating the socialist regulatory state is like doing a "delicate dance", and as a new creation, there would be chances of missteps and even mishaps.
This picture taken on 29 July 2021 shows students and parents walking after attending a private after-school education in Haidan district of Beijing. (Noel Celis/AFP)

China’s tutoring crackdown: Is the Chinese government prepared for its consequences?

NUS academic Lu Xi notes the recent actions of the Chinese government in regulating the private tutoring industry, and how it has damaged market confidence, leading to an exodus of funds in China concept stocks. He asks if this seemingly ill-considered policy is again the result of extreme rigidity in the Chinese bureaucratic system, allowing no communication between those above and those on the ground. Is the government prepared for its consequences?
A woman walks past a sign of the Financial Street in Beijing, China, 9 July 2021. (Tingshu Wang/Reuters)

Why China is cracking down on big capital

It is not new for the evils of capitalism to be criticised in China. But the recent crackdowns on whole sectors, be it tech, tuition centres, or online gaming, has businesses wondering what just hit them. Is this the state’s way of showing who’s boss, and how will China’s economic vibrance be affected?
Cryptocurrency representations are seen in front of an image of the Chinese flag in this illustration picture taken 2 June 2021. (Florence Lo/Reuters)

China’s crackdown on cryptocurrencies: Trade-offs between stability and innovation

China’s crackdown on cryptocurrencies has increased the volatility of the market, not least with bitcoin miners fleeing and the price of bitcoin plummeting. What are the reasons behind China’s regulatory clampdowns and will other countries follow suit?
People look at images showing Chinese President Xi Jinping at the Museum of the Communist Party of China that was opened ahead of the 100th founding anniversary of the Party in Beijing, China, 25 June 2021. (Thomas Peter/Reuters)

'Red peril' or benign power: How different is China's CCP from USSR's CPSU?

Whether the Communist Party of China will escape the fate of the Communist Party of the Soviet Union depends greatly on the extent to which it has rooted out the six major ills that plagued the Soviet system. Only then can it rise smoothly and peacefully to the benefit of the world.
A pedestrian wearing a face mask walks over Westminster Bridge near the Houses of Parliament in central London on 7 June 2021. (Tolga Akmen/AFP)

China's Greater Bay Area ready market for British education exports

While the UK imports a high volume of goods from China, it exports many sought-after services in areas including finance, law and accounting. Its latest niche is its expansion into education, targeting the Guangdong-Hong Kong-Macau Greater Bay Area.