BIZ >> Expert assessment

China-India ties can jumpstart an Asian revolution

Economically, it’s been a banner year for India. In February, it surpassed China as the world’s fastest-growing economy. In October, the IMF predicted India would retain that title for the foreseeable future; its GDP is projected to increase by 7.6 percent through 2017. On Wednesday, the World Bank ratcheted down India’s growth for the 2016-17 fiscal year to 7 percent, but still estimated that India would gain momentum again in the following years, growing by 7.6 percent and 7.8 percent. Further, India’s economy has reportedly overtaken the UK’s for the first time in over 100 years, now standing as the world’s sixth-largest economy by GDP. According to the OECD, the Indian economy, over the next 12 months, will grow faster than any other G20 economy. So, in all probability, India will overtake France in a year and Germany by 2020. This would mean that by the end of this decade, three of the top four economies in the world will be in Asia.
Source: Global Times | 2017/1/12 23:58:39

China needs to put innovation on right track

The spirit of innovation being a new economic driver has been established as a social consensus among Chinese citizens, but practices of innovation somehow have deviated from the right track, a situation that, in some areas, shows signs of bubbles. Being capable of innovation is a decisive choice for China and a fight that it cannot afford to lose. And only by analyzing the challenges China faces in innovation can we offer better solutions for the Chinese economy.
Source: Global Times | 2017/1/12 0:43:39

Airbnb’s China expansion won’t cause drastic changes

Airbnb, a San Francisco-based international rental agency established in 2008, with listings across more than 190 countries and regions and with 500,000 stays per night, began pushing into China in 2015. Since 2015, a new business model represented by Uber and Airbnb has sparked an investment craze in the sharing economy sector. Among the world’s 177 unicorn firms, Uber and Airbnb reportedly have a market value of $68 billion and $30 billion, respectively.
Source: Global Times | 2017/1/11 0:08:40

Chinese firms need to promote quality, not low cost

Recently, the State-owned China Railway Rolling Stock Corporation (CRRC) criticized its subsidiary CRRC Zhuzhou Locomotive Co Ltd for disrupting market order in conducting international business by not adhering to the group’s regulations and undermining relevant interests via cut-throat competition in multiple overseas bids in 2015 and 2016, according to a Caixin report.
Source: Global Times | 2017/1/9 23:28:39

Ivory trade ban signals China’s global ecology governance

China will ban all commercial ivory trading and processing by the end of 2017, the State Council, China’s cabinet, announced on December 30, 2016. The announcement has been highly regarded by the international community, and is a sign of the Chinese government’s attitude toward participating in global ecology governance.
Source: Global Times | 2017/1/9 0:13:40

End of salt monopoly opportunity for private firms

Starting this year, the State monopoly in China’s salt industry will be officially dismantled with the removal of administrative price controls, allowing wholesale and retail salt prices to be determined by operating costs and market supply and demand and encouraging cross-region sales, even though the government will still issue licenses for salt producers.
Source: Global Times | 2017/1/5 23:48:39

Punishing China won’t ‘make America great again’

“Twitter president” Donald Trump drew in voters with his China bashing campaign, claiming that “China is the largest currency manipulator on the planet.” Trump’s impending presidency seems to mean that a Sino-US trade war is approaching. China’s Deputy Minister of Finance Zhu Guangyao recently stated that the implementation of full cooperation is the only strategic choice for the two countries. As such, Trump’s administration should abandon its zero-sum game.
Source: Global Times | 2017/1/4 23:28:39

A free float of yuan would increase economic risks

The exchange rate of the Chinese yuan has been continuously and heatedly debated over the past year. As the yuan exchange rate against the greenback approaches the psychological 7.0 threshold, people have become increasingly focused on whether the yuan’s gradual devaluation is sustainable and whether China should allow a free float of the yuan.
Source: Global Times | 2017/1/4 0:03:39

China’s Pakistan bourse stake to boost ties

A Chinese consortium led by three Chinese exchanges is slated to acquire a 40 percent stake in the Pakistan Stock Exchange (PSX) for 28 rupees ($0.27) per share, valuing the stake at 8.96 billion rupees. The three exchanges – China Financial Futures Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange – will take a combined 30 percent, while the remaining 10 percent will be halved between their local partners – Pak-China Investment Company and Habib Bank.
Source: Global Times | 2017/1/2 23:33:39

China’s authority should address yuan reform

As such, more efforts need to be made to facilitate market communication and effectively guide market expectations, while gradually improving the yuan’s daily fixing rate mechanism. As China’s foreign exchange reserves have shrunk by 25 percent this year, it’s also of vital importance that the monetary authority comes up with solutions to reduce the consumption of foreign exchange reserves, seek steady measures in the opening-up of its capital accounts and reduce market intervention to achieve market clearing in the foreign exchange market, so as to fundamentally attest to the belief that “there’s no basis for continued depreciation of the Chinese currency.”
Source: Global Times | 2016/12/30 0:18:40