Fiscal & Monetary Policy

China’s property tax plan is part of President Xi Jinping’s campaign to redistribute wealth and address widening social inequality, but some fear the rich will find a way to avoid paying their fair share. Illustration: Henry Wong
Sleepless nights for homeowners as Beijing walks tax ‘tightrope’

China’s property tax plan is part of Xi Jinping’s so-called common prosperity campaign to redistribute wealth and to address widening social inequality, but the proposal has caused some concern especially among the middle class population.

1 Dec 2021 - 9:10AM
China’s economy grew by 4.9 per cent in the third quarter of 2021 compared with a year earlier, and it is expected to slow further. Photo: AFP
Explainer | 5 dilemmas facing China’s economy, from trade tensions to zero-Covid

Deleveraging in the property market, US trade tensions and a zero tolerance approach to Covid-19 all have potential to weigh on China’s economy.

29 Nov 2021 - 4:00AM
China Belt and Road Initiative involves connecting more than 70 countries on the continents of Asia, Europe and Africa via a series of rail, road and sea infrastructure projects. Photo: Xinhua
‘Challenging’ belt and road strategy needs risk analysis, anti-corruption steps

President Xi Jinping last week called for businesses involved with China’s Belt and Road Initiative to assess overseas risk regularly, while also establishing a risk monitoring system and anti-corruption legal framework.

28 Nov 2021 - 10:20AM
New infrastructure projects include new energy, 5G, ultra-high voltage power transmission, artificial intelligence, industrial internet, data centers and educational and medical care facilities. Photo: Simon Song
EVs, 5G to spearhead China’s ‘moderately excessive’ infrastructure push

China is likely to place an emphasis on new infrastructure – such as new energy, charging stations for electric cars, data centers, 5G – amid concerns over an economic slowdown.

27 Nov 2021 - 2:21AM
China’s State Council says it is necessary to strengthen the oversight of local government debt. Photo: Xinhua
Economic pressure prompts fresh warning on China’s local government wastefulness

As Chinese officials increasingly voice concerns over mounting economic headwinds, the State Council says ‘serious rectifications’ may be needed to correct fiscal problems among local governments.

25 Nov 2021 - 3:03PM
Concerns have been raised that China’s economic growth could further slow to below 4 per cent in the fourth quarter. Photo: Simon Song
Technological innovation ‘matter of survival’ as China plots economic recovery

Vice-Premier Liu He reflected on the key weakness of China’s economic system In a 6,500-word article published on Wednesday in the People’s Daily.

25 Nov 2021 - 9:15AM
Jerome Powell has been nominated for a second term as chair of the US Federal Reserve by President Joe Biden. Photo: AP
China braced for US tapering, rate increases with Powell set keep top Fed job

Jerome Powell has been nominated by US President Joe Biden to serve for a further four years as chair of the US Federal Reserve, but the news has triggered calls for China to make early preparations for stimulus tapering and rate increases.

24 Nov 2021 - 4:01AM
Chinese Premier Li Keqiang urged local governments to take more action to support small businesses and make them a major economic priority, such as offering more tax cuts and helping them with payments in arrears. Photo: Xinhua
Li Keqiang meeting shows Beijing on high alert for growing economic headwinds

Chinese Premier Li Keqiang Li Keqiang urged local governments to take more action to support small businesses and make them a major economic priority.

24 Nov 2021 - 10:09AM
China’s property tax plan is part of Xi Jinping’s so-called common prosperity campaign to redistribute wealth and to address widening social inequality. Illustration: Lau Ka-kuen
Could China’s property tax break the back of its property sector?

China’s property tax plan is part of Xi Jinping’s so-called common prosperity campaign to redistribute wealth and to address widening social inequality, but there are concerns about its wider implications.

25 Nov 2021 - 9:17AM
China’s small and medium-sized enterprises are bearing the brunt of the nation’s economic downturn. Photo: Bloomberg
For China’s small businesses, tax cuts are ‘just sweeteners’ as demand dwindles

Supply-chain disruptions, high raw-material costs and a power crisis have had an outsized impact on SMEs that were already struggling to stay afloat during the pandemic.

19 Nov 2021 - 10:02PM
The IMF says that China’s recurrent coronavirus outbreaks and lockdown measures have contributed to lagging consumption. Photo: Xinhua
China needs ‘key reforms’ to support shift to high-quality growth, IMF says

Property deleveraging and Beijing’s regulatory tightening on Big Tech have increased policy uncertainties, and the IMF says financial risks should be addressed in a clear and coordinated fashion.

19 Nov 2021 - 10:02PM
Chinese President Xi Jinping and his US counterpart Joe Biden met for the first via video conference on Tuesday morning. Photo: Reuters
China ‘can’t develop in isolation’, but ‘world can’t develop without China’

Following the meeting between Xi Jinping and Joe Biden, Chinese Vice-President Wang Qishan and Premier Li Keqiang spoke about China opening up further and being committed to industry and supply chain stability.

18 Nov 2021 - 8:44AM
Presidents Xi Jinping and Joe Biden held a four-hour virtual meeting on Tuesday. Photo: AP
Xi says US businesses are welcome in China, but politicising trade is not

As it adopts a more self-reliant dual-circulation economic strategy, Beijing also speaks of building a more market-oriented and law-based business environment.

16 Nov 2021 - 10:59PM
China’s retail sales grew by 4.9 per cent in October compared with a year earlier, up from a 4.4 per cent increase in September. Photo: Reuters
As China’s consumption surprises, Beijing warns of ‘instability and uncertainty’

China’s economy had staged an impressive recovery from the impact of the coronavirus, but numerous headwinds are taking their toll on economic growth.

16 Nov 2021 - 12:55PM
Small and micro businesses are the backbone of China’s private sector. Photo: AFP
Explainer | Why are China’s small firms the backbone of the economy?

Since the start of the pandemic, China’s small and medium-sized enterprises have faced numerous challenges, from rising costs to regulatory tightening. So how are they faring?

15 Nov 2021 - 4:04PM
China’s “common prosperity” movement, which calls for citizens to share in the opportunity to be wealthy, has prompted wealthy individuals to look for ways to keep their money off the government’s radar. Photo: Shutterstock
China’s crackdowns put the rich in crisis mode, looking for an escape route

Beijing’s ‘common prosperity’ movement calls for citizens to share the wealth, but attitudes towards recent dramatic changes have diverged among different social classes and ages.

14 Nov 2021 - 9:20PM
The Guangdong provincial government announced nine policies on Tuesday aimed at jump-starting spending in commercial districts as well as boost dining and tourism, with traditional bricks-and-mortar retail and e-commerce platforms also included. Photo: EPA-EFE
Could Guangdong’s Hong Kong-style shopping vouchers spark nationwide roll-out?

China’s Guangdong province announced nine policies aimed at jump-starting spending in commercial districts as well as boost dining and tourism, which includes a Hong Kong-style consumption voucher scheme.

13 Nov 2021 - 6:56AM
China’s coronavirus control measures, including in Dalian, Liaoning province (pictured), pose a threat to the global supply chain. Photo: Reuters
‘Foreign investors don’t need to worry too much’, ex-PBOC adviser says

Yu Yongding is on Team Transitory when it comes to inflationary pressure, and he believes that China’s financial markets are “controllable”, with little spillover to global markets.

13 Nov 2021 - 4:17AM