Trade

Chinese financial commentator Tan Haojun looks at what China has done right to quickly recover after the pandemic, and what makes international financial institutions and analysts confident about its economy.

Four years ago, when most political pundits put their money on Hillary Clinton instead of Donald Trump, vendors in the Yiwu International Trade Market in Zhejiang province already knew that Trump would win. Orders of presidential election merchandise gave them the clue. Termed “the world’s supermarket”, Yiwu is the world’s biggest wholesale market of small commodities. How is it seeking to reinvent itself in the pandemic downturn, and what does this year’s orders list tell them about the likely outcome of the 2020 US presidential election?

Media commentator Cai Enze frowns on the beggar-thy-neighbour approach of improving one’s business at a rival’s expense. In his view, big names in China’s internet market — Baidu, Alibaba, Tencent, and JD.com (known as BATJ) — should practise more openness and cooperation rather than rivalry and mutual blocks.

Nepal, an erstwhile land-locked country wedged between India and China, was famously called “a yam between two boulders” by the founder of modern Nepal, King Prithvi Narayan Shah. It has always had limited options in terms of foreign policy, but refusing to let geography dictate its fate, it is placing a larger bet on China with the hope that it will gain more leverage and avoid being squashed.

“The new Cold War” is becoming a catchphrase for the state of relations between China and the US. But the China of today and the web of connections it shares with the US is very different from the former Soviet Union. Is calling the conflict a clash of ideologies oversimplifying the issue? Even further, is it in the US’s interest to do so to corral support for its actions against China at home and abroad? Zhu Ying examines the issue.

In the current political climate, the possibility of a phase two trade deal between China and the US is practically a non-starter. So be it, says Zhu Ying. China has shown that it wants to walk its own path, and will probably do so even more resolutely as it bristles at criticism of “socialism with Chinese characteristics”.

The US has ended Hong Kong’s preferential treatment, sparking some concerns that Hong Kong may not be able to retain its status as an international financial centre. Zaobao journalist Tai Hing Shing examines whether these worries are valid.

With Covid-19 uncertainty and downturns pummelling its export-dependent economy, China’s leaders are trying to steer companies towards the domestic market instead. This may seem like a case of putting old wine in a new bottle, as China has tried this route before. Significant challenges are proving yet again that achieving export sales domestically is no mean feat. Can export-driven companies brave the storm while they reinvent themselves and recover?