While worries about China’s lack of viable high-tech innovation continue, it should be stressed more than ever that the country has already become a tech power in certain arenas of strategic importance, and it is particularly appealing that the world’s second-largest economy has strived to produce more readily available tech solutions, a trend that will certainly continue.
Tightening policies in the real estate sector in the past two months, including the Shanghai Stock Exchange’s temporary suspension of debt financing from property developers and the China Banking Regulatory Commission’s further restrictions on commercial bank capital in the property market, suggest a high probability of a decline in the country’s booming capital-intensive property sector.
New Zealand Prime Minister John Key said last week that China and New Zealand had agreed to launch talks to upgrade their free trade agreement (FTA). This would be the first time for China to upgrade an FTA with a Western country at a higher standard and the move marks great breakthroughs.
China and India are the world’s two largest manufacturers of bulk drugs, a key raw material for producing pharmaceutical drugs. Currently the two countries cooperate and compete in the field. Now with changes in the supply pattern of bulk drugs around the world, companies in the US and Europe have started competing with the Chinese and Indian markets. The situation raises the need for China and India to think about how they should maintain their own advantage and break development bottlenecks in the bulk drug industry. In terms of market size, the combined population of China and India surpasses 2.5 billion – huge markets that no country can afford to ignore.
China’s mark on international 5G standards has only just begun. Looking at the current landscape, international giants continue to have a greater say in making standards.
The scaremongering forecast that the PC is steadily heading toward demise won’t happen. Pessimistic sentiment toward the PC’s future seems to have prompted many PC makers to scale back operations, or more drastically, bid a farewell to the business entirely. However, it is believed that those still upbeat on the business, especially the few who defy the overall decline in PC shipments, the restructured Dell included, will in fact capitalize on the industry’s consolidation.
Despite the ongoing downturn in international investment and the global economy, economic and trade cooperation between China and Africa continues to grow steadily, highlighting the great potential of the African market. E-commerce, as a new business mode, has become a key pillar for this cooperation. It meets the needs of both sellers and buyers. Chinese small and medium enterprises (SMEs) can sell their products directly to the African market through e-commerce platforms, achieving a profit margin of 30-40 percent, in comparison to 5-10 percent under the previous wholesale approach. In addition, it contributes to China’s strong export growth – particularly exports to Africa are mainly consumer goods, such as clothes, fashion accessories and household digital appliances and products, which are suitable for e-commerce.
Robotic vacuums and mops are indisputably some of the products through which people feel the most tangible benefits of the robotic era. This seems to be especially true in China where the market for robotic cleaners is expected to be the world’s largest within two years.
Even though China’s monetary authorities have repeatedly stressed that there is no basis for the yuan’s devaluation, many people have been concerned over the exchange rate given its performance the past month.
Following the unexpected outcomes from Britain’s EU referendum and the US presidential election, there are a number of other elections in Europe and the upcoming Italian constitutional referendum on December 4 whose results are hard to predict.
The Chinese economy will ride out global market uncertainties for the rest of 2016 and will reach its annual growth target range of 6.5 percent to 7 percent. The growth scenario over the next two years, however, is less promising, as the government is expected to continue moves to deflate housing bubbles, which risk putting the world’s second-largest economy in a precarious position.
Despite the anticipation of the launch of the Shenzhen-Hong Kong Stock Connect, there are still concerns that the scheme is unlikely to bring a significant effect to China’s mainland stock market or attract international investors. Rising capital withdrawal via the Shanghai-Hong Kong Stock Connect in recent months from global investors, recent sharp yuan depreciation which reduces the dollar value of overseas investment in mainland stocks, and overvalued tech stocks in the Shenzhen market have raised doubts of the incoming Shenzhen-Hong Kong link.
Recently, the Chinese currency plunged sharply, hitting a fresh eight-year low against the dollar on Wednesday after dropping for nine days in a row.
The persistent decline in oil prices has seriously impacted the economies of Latin American countries. As political and economic landscapes in Latin America continue to evolve, this situation will offer both challenges and opportunities for cooperation between China and Latin America.
During an investment binge, if investors outnumber entrepreneurs in an industry, it inevitably implicates a situation of excess capital, the most risky form of investment, according to Chen Gong, chief research fellow with Anbound. In this respect, he suggested that China’s policy in guiding investment in the technology sector needs to be more transparent, and to shift toward a more rational and scientific policy system.
The election of Donald Trump as US president caught investors around the world unprepared. The market endured a roller coaster ride as traders scrambled to adjust. Many people are questioning how Trump, a political novice and businessman known for his eyebrow-raising comments, was able to win the presidential election and further, what impact it will have on China’s economy and markets.
After seven years, negotiations for the EU-Canada free trade deal, known as the Comprehensive Economic and Trade Agreement (CETA), were concluded on October 30. Like any free trade agreement (FTA), this one is believed to bring substantial benefits to both sides. In addition, it is of a high standard and will have a greater say in the making of international trade rules in the future. Many Chinese people won’t be paying much attention to the EU-Canada deal, as it is transatlantic, and geographically speaking, unlikely to affect China’s economic strategy in the Asia-Pacific area. But is that really the case?
As the Chinese Embassy in Delhi recently pointed out, China and India have made remarkable progress in the last 15 years, as bilateral trade has grown by a factor of 24 from $2.9 billion to $71.6 billion in 2015. This progress needs to be acknowledged and celebrated. However, the potential is higher still. Both countries should aim for $500 billion in bilateral trade within 10 years, which would require an annual growth rate of more than 20 percent.