https://www.scmp.com/rss/10281/feed Hu Shuli is the publisher of Caixin Media and Caixin Global. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com China has just unveiled its new policy to encourage married couples to have up to three children. This policy alone won’t be enough to boost population growth, and more supportive measures and structural changes will also be needed. The alarm bell was sounded by the results of China’s latest national census released last month. The long-awaited headcount conducted in 2020 is crucial for government planners and enterprises to plot a course for the future. The result shows that China, with 1.41... https://www.scmp.com/comment/opinion/article/3135920/chinas-three-child-policy-not-too-little-too-late-call-action?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3135920/chinas-three-child-policy-not-too-little-too-late-call-action?utm_source=rss_feed Sat, 05 Jun 2021 19:30:10 +0000 Emerging economies have been bracing themselves for a rise in US interest rates. Last week, the release of the minutes of the US Federal Reserve's policy meeting in April sparked another round of speculation of when the rate hike might begin. Most now expect a start date in December, rather than September. Either way, there is little time left for preparation, particularly for China, whose economy is decelerating. It must restructure its economy and introduce systemic reforms to brace itself for... https://www.scmp.com/comment/insight-opinion/article/1810070/what-china-must-do-meet-challenge-us-interest-rate-rise?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1810070/what-china-must-do-meet-challenge-us-interest-rate-rise?utm_source=rss_feed Wed, 27 May 2015 04:14:54 +0000 As the reform of China's economy and society deepens, attention is turning to the people tasked with the job of spearheading and carrying out change. Thus it was gratifying to hear the call by President Xi Jinping , made at the 12th meeting of the central leading group on reform, to mobilise China's "reform advocates", who must "think reform, plot reform and improve reform". The call reflects the leadership's resolve to rise to the challenge. Over the past two years, the 18th Central Committee... https://www.scmp.com/comment/insight-opinion/article/1804428/spur-real-change-china-must-unleash-power-its-reform?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1804428/spur-real-change-china-must-unleash-power-its-reform?utm_source=rss_feed Wed, 20 May 2015 04:36:49 +0000 Relations across the Taiwan Strait are at a turning point. At the meeting this month between Communist Party general secretary Xi Jinping and visiting Kuomintang chairman Eric Chu, Xi proposed five guidelines for strengthening ties that clearly reflected Beijing's strategic thinking on the matter. In particular, the call for a framework to "systematise" the peaceful development of cross-strait ties is vital, as it will act as an anchor in stormy weather. Though the outlook has been fair in... https://www.scmp.com/comment/article/1794926/new-framework-relations-across-taiwan-strait-vital-peace?utm_source=rss_feed https://www.scmp.com/comment/article/1794926/new-framework-relations-across-taiwan-strait-vital-peace?utm_source=rss_feed Wed, 13 May 2015 03:15:45 +0000 Concern about the "middle-income trap" has grabbed public attention again. Recently, Minister of Finance Lou Jiwei said at Tsinghua University that China had a "50-50 chance" of sliding into the middle-income trap in the next five to 10 years. However, many inaccurate versions of his speech are circulating on the internet, causing widespread concern, and it is important to have a complete and proper understanding of his views. In fact, Lou made reference to two scenarios in his speech. In the... https://www.scmp.com/comment/insight-opinion/article/1787446/how-china-can-avoid-middle-income-trap?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1787446/how-china-can-avoid-middle-income-trap?utm_source=rss_feed Wed, 06 May 2015 03:13:29 +0000 The mainland stock market is on a roll, giving rise to a view that it could help revive the slowing economy. The two have an interesting relationship, and there are advantages and disadvantages to using the market to boost growth. Yet, in the current circumstances, the stock market will be hard pressed to perform that role. The Shanghai Composite Index has doubled since the second half of 2014, and turnover keeps surging. However, the mainland economy faces growing downward pressures. GDP growth... https://www.scmp.com/comment/insight-opinion/article/1779964/mad-bull-stock-market-will-do-more-harm-good-chinas-economy?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1779964/mad-bull-stock-market-will-do-more-harm-good-chinas-economy?utm_source=rss_feed Wed, 29 Apr 2015 03:25:18 +0000 Beijing's fight against corruption has been going on for two years now. Some significant results have been achieved, with strong public support, but it is becoming increasingly difficult to move forward with the campaign. Members of the public and government officials need to agree on why the drive must continue. Some officials make only token efforts to perform their duties, supposedly because they fear being caught up in the anti-corruption drive. However, the central leadership must not be... https://www.scmp.com/comment/insight-opinion/article/1773266/inefficient-officials-must-be-weeded-out-keep-anti?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1773266/inefficient-officials-must-be-weeded-out-keep-anti?utm_source=rss_feed Wed, 22 Apr 2015 03:30:30 +0000 China is taking solid steps to open up its capital account, while easing control on its interest rates and currency exchange. The question now isn't how fast it can liberalise, but how to avoid the potential pitfalls of a more open system and how the process may spur wider reforms. An open capital account will allow Chinese citizens and foreigners alike the freer movement of their assets and investments, and the free exchange of currencies. Chinese leaders are determined to speed up the pace of... https://www.scmp.com/comment/insight-opinion/article/1766864/china-must-not-backtrack-capital-account-liberalisation?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1766864/china-must-not-backtrack-capital-account-liberalisation?utm_source=rss_feed Wed, 15 Apr 2015 04:23:18 +0000 Another initiative has been taken to strengthen the rule of law. On March 31, the General Office of the Communist Party's Central Committee and the General Office of the State Council jointly issued details of a set of regulations to prevent officials from interfering with judicial cases. At the party's fourth plenary session last October, the leadership called for a system to allow instances of abuse to be recorded and reported, and to bring the errant officials to book. Preparation work went... https://www.scmp.com/comment/insight-opinion/article/1760093/new-rules-prevent-meddling-officials-are-big-step-forward?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1760093/new-rules-prevent-meddling-officials-are-big-step-forward?utm_source=rss_feed Wed, 08 Apr 2015 04:11:05 +0000 Tuesday was the deadline for application to become a founding member of the Asian Infrastructure Investment Bank. The participation of advanced economies such as Britain, Germany, France, Italy and Luxembourg has given the project a good start. Now, all eyes are focused on how the bank will be run: how decisions will be made and shares divided, and what the lending criteria should be. The infrastructure bank is China's response to the perceived unfairness of the global financial order. Despite... https://www.scmp.com/comment/insight-opinion/article/1753477/china-led-infrastructure-bank-must-live-its-pledge-clean-and?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1753477/china-led-infrastructure-bank-must-live-its-pledge-clean-and?utm_source=rss_feed Wed, 01 Apr 2015 06:30:15 +0000 China's 12th five-year plan concludes this year, and the work of drafting the 13th will begin soon. Which way will China turn? In its work report to legislators at the National People's Congress meeting this month, the government pledged to create a development blueprint in the spirit of reform and innovation, yet grounded in facts. The actual drafting is expected to begin in early summer, with a version ready for review by the Central Committee at its fifth plenum in the autumn. The highlight... https://www.scmp.com/comment/insight-opinion/article/1746949/how-chinas-13th-five-year-plan-can-make-consumption-real?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1746949/how-chinas-13th-five-year-plan-can-make-consumption-real?utm_source=rss_feed Wed, 25 Mar 2015 04:53:32 +0000 Since last week, Caixin's New Century magazine has been renamed, simply, Caixin Weekly. In the five years since its launch, the media environment has drastically changed, with the rise of social media presenting the biggest challenge to the traditional print and broadcast business. Yet, despite these changes, the magazine's pledge of producing quality journalism remains unchanged. In-depth news coverage matters. It is especially so in a China at the crossroads of its development, poised today... https://www.scmp.com/comment/insight-opinion/article/1740942/place-bold-media-china-enters-its-new-normal?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1740942/place-bold-media-china-enters-its-new-normal?utm_source=rss_feed Wed, 18 Mar 2015 06:45:00 +0000 Unsurprisingly, the anti-corruption crackdown has been a major item on the agenda of this year's parliamentary meetings. In his report on the government's work, Premier Li Keqiang spoke of the "harrowing" extent of the problem, and warned government officials against any abuse of power. Yu Zhengsheng , chairman of the Chinese People's Political Consultative Conference, told the annual gathering that the government has revoked the CPPCC membership of 14 disgraced officials, including Ling Jihua... https://www.scmp.com/comment/insight-opinion/article/1734962/chinas-resolve-fight-corruption-can-no-longer-be-doubted?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1734962/chinas-resolve-fight-corruption-can-no-longer-be-doubted?utm_source=rss_feed Wed, 11 Mar 2015 03:45:00 +0000 Overcapacity, along with high local government debt and the property bubble, have been named as the three biggest risks in the Chinese economy today. With the government struggling to maintain stable growth in the face of severe downward pressures, tackling the problem of overcapacity won't be easy. But it must be done. Industries afflicted with excess capacity are inefficient. They lead to distortions in resource allocation, diverting investments from where they would be most useful. Chinese... https://www.scmp.com/comment/insight-opinion/article/1729205/fears-economic-slowdown-must-not-stop-china-tackling?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1729205/fears-economic-slowdown-must-not-stop-china-tackling?utm_source=rss_feed Wed, 04 Mar 2015 04:44:51 +0000 A new wave of enthusiasm for entrepreneurship has hit China. Over the years, corruption has undeniably dented our economy, as can be seen in the dirty deals uncovered by the anti-graft campaign now taking the country by storm. This much is clear: to nurture a new generation of entrepreneurs, we need a society based firmly on the rule of law. Early this month, President Xi Jinping told senior officials attending a Central Party School workshop on the rule of law to set a good example by... https://www.scmp.com/comment/insight-opinion/article/1709980/china-needs-rules-based-business-environment-so?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1709980/china-needs-rules-based-business-environment-so?utm_source=rss_feed Wed, 11 Feb 2015 03:52:07 +0000 Last month, the State Council announced the public-sector employees' pension system would be reformed, to rectify inequalities between private- and public-sector workers, a problem that has remained unresolved for years. However, with few specific details available, there are renewed fears that the changes could still result in an unfair system. In general, China's pension system faces three major challenges: fairness, flexibility and sustainability, of which sustainable development is by far... https://www.scmp.com/comment/insight-opinion/article/1701442/healthy-and-sustainable-pension-system-china-must-fill?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1701442/healthy-and-sustainable-pension-system-china-must-fill?utm_source=rss_feed Wed, 04 Feb 2015 03:09:30 +0000 After the publication last week of China's preliminary economic data for 2014, much fuss was made over the greater contribution of the services sector to overall growth. However, one equally important statistic was overlooked. According to the figures, agriculture's share of gross domestic product fell to 9.2 per cent from 9.4 per cent in 2013 (this figure was itself revised down from an initial estimate of 10 per cent), and the downward trend is likely to continue. This is an indisputable... https://www.scmp.com/comment/insight-opinion/article/1694032/china-must-look-beyond-subsidies-improve-lot-its-farmers?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1694032/china-must-look-beyond-subsidies-improve-lot-its-farmers?utm_source=rss_feed Wed, 28 Jan 2015 05:45:45 +0000 On January 13, the consumption tax on petrol and related products was raised from 1.40 yuan (HK$1.80) per litre to 1.52 yuan, while that on diesel and jet fuel increased from 1.10 yuan to 1.20 yuan. This was the third time in two months China has raised the consumption tax on oil products - the most aggressive action taken since tax reform started in 2009. Every tax adjustment so far has ignited a flurry of debate. Many people are worried about the tax burden, and also raise questions about how... https://www.scmp.com/comment/insight-opinion/article/1682863/tax-changes-should-be-enacted-law-through-chinas-legislature?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1682863/tax-changes-should-be-enacted-law-through-chinas-legislature?utm_source=rss_feed Wed, 21 Jan 2015 04:30:00 +0000 Two pieces of recent news have piqued market interest. First, local governments have reported their latest debt statistics to the Ministry of Finance. The numbers have not been made public, but sources say many officials have reported large amounts, in an attempt to account for as much debt as possible. Second, in an attempt to revive the flagging property market, many local governments are easing requirements for the housing provident fund, which offers mortgages subsidised by the government.... https://www.scmp.com/comment/insight-opinion/article/1679559/debt-laden-local-governments-must-get-back-basics-budgeting?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1679559/debt-laden-local-governments-must-get-back-basics-budgeting?utm_source=rss_feed Wed, 14 Jan 2015 04:00:30 +0000 In the last weeks of 2014, the plunge in oil prices triggered a shocking tumble of the rouble. Meanwhile, China, the world's largest net importer of oil, held a work conference over the last weekend of December that outlined the country's strategy on energy security. The meeting called for the development of clean energy, a reduction in the country's reliance on fossil fuels and the protection of its oil and gas supply. It pledged a revolution to improve energy efficiency in both demand and... https://www.scmp.com/comment/insight-opinion/article/1675982/china-must-capitalise-fall-oil-prices-overhaul-its-energy?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1675982/china-must-capitalise-fall-oil-prices-overhaul-its-energy?utm_source=rss_feed Wed, 07 Jan 2015 05:32:29 +0000 The year just past could be said to be China's year of reforms. Hopes of progress were high in 2014. So, while we commend the strides that reformers have made, we note that progress in some areas appears to be stalling. In the second half of 2014, the "new normal" became a catchphrase in Chinese finance, encapsulating the tug of war between the old and new approaches to the country's development. The new normal will continue to dominate debate in 2015. So will the implementation of the... https://www.scmp.com/comment/insight-opinion/article/1671677/2015-reform-will-set-tone-new-normal-china?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1671677/2015-reform-will-set-tone-new-normal-china?utm_source=rss_feed Wed, 31 Dec 2014 16:32:52 +0000 Chinese leaders' pledge, at last week's Central Economic Work Conference, to strengthen risk control could not be more timely, given the frenzied exuberance in the stock market. In a statement released after three days of meetings, leaders took note of the "variety of hidden risks" that had emerged alongside the economic slowdown. "The risks can be managed on the whole, but eradicating all of them might take a long time," they said. "We should treat both the symptoms and root causes, and find... https://www.scmp.com/comment/insight-opinion/article/1663547/chinas-crazy-bull-market-needs-be-tamed?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1663547/chinas-crazy-bull-market-needs-be-tamed?utm_source=rss_feed Wed, 17 Dec 2014 06:22:37 +0000 As the Central Economic Work Conference gets under way this week, much of the public attention will be focused on China's growth target for the coming year. At a time when the Chinese economy is both slowing and experiencing the pain of restructuring, not to mention still coping with the after-effects of the 2008 stimulus measures, Chinese leaders are likely to favour a steady expansion. They are also expected to press on with fundamental reforms while protecting bottom-line growth. Protecting... https://www.scmp.com/comment/insight-opinion/article/1659333/come-2015-chinese-leaders-must-be-even-bolder-launching-key?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1659333/come-2015-chinese-leaders-must-be-even-bolder-launching-key?utm_source=rss_feed Wed, 10 Dec 2014 04:00:26 +0000 The anti-corruption campaign that has been sweeping across China is extending beyond its borders. Two high-profile international meetings last month - the Asia-Pacific Economic Cooperation forum in Beijing and the G20 summit in Brisbane - both unveiled plans to further their members' cooperation on this front. For years, corrupt Chinese officials have found it too easy to escape the law, and many have fled abroad with their loot. The People's Bank of China estimated in 2011 that, since the... https://www.scmp.com/comment/insight-opinion/article/1654665/chinas-fox-hunt-must-do-more-attack-symptoms-corruption?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1654665/chinas-fox-hunt-must-do-more-attack-symptoms-corruption?utm_source=rss_feed Wed, 03 Dec 2014 04:47:11 +0000 Just as news of the abrupt cancellation of China Railway Construction Corporation's (CRCC) contract in Mexico was beginning to die down, China's Silk Road project, highlighted at the recent Apec meeting, again turned the global spotlight on the nation's involvement in overseas development projects, which some have dubbed China's Marshall Plan. It's worth reviewing CRCC's setback in Mexico. Early last month, the Mexican government said it was scrapping the CRCC-led bid for a railway project, just... https://www.scmp.com/comment/insight-opinion/article/1649176/chinese-companies-must-learn-price-risks-accurately-when?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1649176/chinese-companies-must-learn-price-risks-accurately-when?utm_source=rss_feed Wed, 26 Nov 2014 04:45:15 +0000 Unexpected twists in Sino-US relations were the highlight of last week's Apec summit in Beijing. Ties between the two nations warmed during the meeting as the two heads of state, Barack Obama and Xi Jinping, held candid talks. The good news kept coming: China and the US agreed to clear tariff barriers for hi-tech products; there was a breakthrough in their 17-year negotiations on an IT agreement; and they committed to reducing greenhouse gases over the next 15 to 20 years. They also said they... https://www.scmp.com/comment/insight-opinion/article/1643648/apec-agreements-help-warm-worlds-most-important-bilateral?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1643648/apec-agreements-help-warm-worlds-most-important-bilateral?utm_source=rss_feed Wed, 19 Nov 2014 04:00:45 +0000 Thirteen years after China first hosted the Asia-Pacific Economic Cooperation forum, the region's leaders were again gathered in the country. From the painstaking measures adopted to ensure security and reduce pollution, among others, it was clear the Chinese government was determined to make a success of the meetings. After all, this was a chance for the new Chinese leadership to burnish the country's status today as a "responsible major power". The Asia-Pacific region has undergone sweeping... https://www.scmp.com/comment/insight-opinion/article/1638062/china-must-continue-open-realise-its-apec-ambitions?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1638062/china-must-continue-open-realise-its-apec-ambitions?utm_source=rss_feed Wed, 12 Nov 2014 04:00:00 +0000 Changes to China's tax and fiscal framework have become the vanguard for the "deep and comprehensive" reforms the country has pledged in an effort to overhaul its economy and society. On June 30, the party's top leaders endorsed a slate of tax and fiscal reform measures to be put in place by 2016, so a modern tax system could be up and running by 2020. In August, the National People's Congress Standing Committee adopted the revised Budget Law. Last month, the State Council issued rules to... https://www.scmp.com/comment/insight-opinion/article/1632469/modern-fiscal-system-prerequisite-china-based-rule-law?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1632469/modern-fiscal-system-prerequisite-china-based-rule-law?utm_source=rss_feed Wed, 05 Nov 2014 04:15:00 +0000 The Communist Party's fourth plenum last week did not end, as had been expected, with an announcement on a reshuffle in the People's Liberation Army. Instead, party leaders adopted a decision on the "major issues concerning comprehensively advancing the rule of law", pledging changes in six major areas. A key refrain was that the government would rule the country according to the constitution. Without a doubt, this was the most important achievement of the four-day meeting. The constitution is... https://www.scmp.com/comment/insight-opinion/article/1627389/party-leaders-call-honour-spirit-chinas-constitution-raises?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1627389/party-leaders-call-honour-spirit-chinas-constitution-raises?utm_source=rss_feed Wed, 29 Oct 2014 05:30:45 +0000 China's top leaders have been meeting this week on how to strengthen the rule of law. At the fourth plenum of the Communist Party's 18th Central Committee, which concludes on Thursday, the focus has been to improve the institutions that safeguard the abuse of power. Further, it is hoped that the crackdown on corruption will lead China to modernise its governance. As officials well know, China must build a "firewall" against corruption. Since early last year, the government has worked on the... https://www.scmp.com/comment/article/1622074/rule-law-must-be-foundation-chinese-governance?utm_source=rss_feed https://www.scmp.com/comment/article/1622074/rule-law-must-be-foundation-chinese-governance?utm_source=rss_feed Wed, 22 Oct 2014 06:00:45 +0000 China's securities law is to undergo a comprehensive revision - almost a decade after the last major overhaul. Public consultation is due to start in the first half of next year, following recent comments from officials, scholars and market participants. The first national law of its kind, it was introduced in 1999 - almost a decade after the establishment of China's first stock exchange, the Shanghai Stock Exchange in 1990 - and sought to create greater uniformity in the rapidly expanding... https://www.scmp.com/comment/article/1616871/systemic-overhaul-securities-law-can-liberalise-chinas-capital-markets?utm_source=rss_feed https://www.scmp.com/comment/article/1616871/systemic-overhaul-securities-law-can-liberalise-chinas-capital-markets?utm_source=rss_feed Wed, 15 Oct 2014 04:30:30 +0000 Given their importance, land issues deserve close public attention. The government's plan to allow farmers to more freely rent, sell and mortgage their land, announced last year at the third plenum of the 18th Central Committee, was a milestone. But its implementation has proved to be difficult. Many analysts and scholars have sparred over the issues in recent months. This is a healthy development. Nevertheless, amid the differing views, China must not veer from its decision to liberalise the... https://www.scmp.com/comment/article/1605373/china-must-persist-its-pledge-liberalise-land-market?utm_source=rss_feed https://www.scmp.com/comment/article/1605373/china-must-persist-its-pledge-liberalise-land-market?utm_source=rss_feed Wed, 01 Oct 2014 05:30:15 +0000 Donations by Chinese entrepreneurs to top universities overseas have become a talking point. In July, Soho China's husband-and-wife team of Pan Shiyi and Zhang Xin launched a US$100 million fund to help send poor Chinese students to the world's top universities, beginning with a US$15 million donation to Harvard. More recently, a foundation set up by Hong Kong property tycoon Ronnie Chan Chichung and his brother Gerald Chan Lok-chung made a donation of US$350 million to Harvard's School of... https://www.scmp.com/comment/article/1599424/through-endowments-private-capital-can-revitalise-chinese-universities?utm_source=rss_feed https://www.scmp.com/comment/article/1599424/through-endowments-private-capital-can-revitalise-chinese-universities?utm_source=rss_feed Wed, 24 Sep 2014 06:00:15 +0000 Three recent items of news deserve attention. First, the revisions to the Budget Law were passed late last month. Second, in a speech this month marking the 60th anniversary of the founding of the National People's Congress, party general secretary Xi Jinping called for "governance in accordance with the constitution" and pledged to build a government based on the rule of law. Third, at last week's Summer Davos session, Premier Li Keqiang again stressed China would stick to the growth strategy... https://www.scmp.com/comment/article/1594568/chinas-new-budget-law-can-modernise-governance?utm_source=rss_feed https://www.scmp.com/comment/article/1594568/chinas-new-budget-law-can-modernise-governance?utm_source=rss_feed Wed, 17 Sep 2014 06:15:15 +0000 The distorted salary structure for the top executives of China's state-owned enterprises is undergoing major surgery. On August 18, the Central Leading Group for Comprehensively Deepening Reform announced a plan aimed at slashing their pay, among other reforms. Eleven days later, the Politburo approved these measures. State-owned enterprises, especially the major ones directly under the control of the central government, are notorious for their fat-cat incomes. Top executives at these companies... https://www.scmp.com/comment/article/1589280/cutting-executive-pay-state-owned-firms-only-part-beijings-plan?utm_source=rss_feed https://www.scmp.com/comment/article/1589280/cutting-executive-pay-state-owned-firms-only-part-beijings-plan?utm_source=rss_feed Wed, 10 Sep 2014 05:30:00 +0000 The shock fall in China's total social financing aggregate - the broadest measure of credit in the economy - has sparked misguided cries for monetary easing. The financing aggregate measures the amount of funds available to the real economy at any given point in time. In July, the aggregate fell to 273.1 billion yuan (HK$343.3 billion), a drop of 546 billion yuan from a year earlier. The news follows dismal drops in both new loans and new bank deposits, so it's clear this is no cyclical... https://www.scmp.com/comment/article/1584332/turning-money-tapwill-do-little-ease-chinas-liquidity-bottlenecks?utm_source=rss_feed https://www.scmp.com/comment/article/1584332/turning-money-tapwill-do-little-ease-chinas-liquidity-bottlenecks?utm_source=rss_feed Wed, 03 Sep 2014 03:45:00 +0000 Once mocked as a "toothless tiger", China's anti-monopoly law is finally demonstrating some bite, six years after it took effect. The three agencies responsible for enforcing it - the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Industry and Commerce - recently launched a wave of antitrust investigations mainly targeting multinationals. While some people approve of such strict enforcement, the crackdown has nevertheless raised questions... https://www.scmp.com/comment/article/1581092/chinese-antitrust-regulators-must-address-charges-anti-foreigner-bias?utm_source=rss_feed https://www.scmp.com/comment/article/1581092/chinese-antitrust-regulators-must-address-charges-anti-foreigner-bias?utm_source=rss_feed Wed, 27 Aug 2014 04:00:30 +0000 Tomorrow, China will celebrate the 110th anniversary of Deng Xiaoping's birth, and many activities will be held to honour the chief architect of China's reform and opening up. It has been 17 years since the death of this legendary leader, but many of his ideas - on China's governance, policies and strategic directions - live on. In a broad sense, we're still living in the Deng era. Now's a good time to ask: as China faces the severe challenge of instituting fundamental reforms to transform its... https://www.scmp.com/comment/article/1577593/best-way-honour-deng-xiaoping?utm_source=rss_feed https://www.scmp.com/comment/article/1577593/best-way-honour-deng-xiaoping?utm_source=rss_feed Wed, 20 Aug 2014 03:45:00 +0000 A new round of state-owned enterprise reforms is gaining traction. On July 15, the State-owned Assets Supervision and Administration Commission (Sasac) unveiled four reforms to be implemented in six central-government-controlled state enterprises: reshuffling their constituent state-owned capital investment firms, encouraging mixed ownerships, changing board powers and having discipline inspection teams stationed in their midst. At local levels, SOE reform plans have been introduced in about... https://www.scmp.com/comment/article/1572827/reform-state-owned-enterprisescrucial-improve-qualityof-chinese-economy?utm_source=rss_feed https://www.scmp.com/comment/article/1572827/reform-state-owned-enterprisescrucial-improve-qualityof-chinese-economy?utm_source=rss_feed Wed, 13 Aug 2014 07:15:00 +0000 It was not a coincidence that the investigation into the disciplinary violations of former senior party official Zhou Yongkang and plans to discuss law reforms at the fourth plenary session of the 18th Central Committee were announced on the same day, as they are directly linked and together could herald the start of a new phase in China's history. Zhou is the highest-ranking official to be probed for corruption in the history of the Chinese Communist Party. He was once a member of the Standing... https://www.scmp.com/comment/article/1567644/effective-rule-law-must-be-end-goal-chinas-corruption-fight?utm_source=rss_feed https://www.scmp.com/comment/article/1567644/effective-rule-law-must-be-end-goal-chinas-corruption-fight?utm_source=rss_feed Wed, 06 Aug 2014 08:00:00 +0000 According to media reports this month, the government has unveiled new directives restricting the use of cars by central government officials. Little has been achieved in the past 20 years, but these two documents have given hope that change is imminent. If implemented with the help of innovative measures, the initial objectives will be achieved, leading to higher-level reforms being carried out in other sectors in the future. Some years ago, strict rules were imposed on the use of government... https://www.scmp.com/comment/article/1562637/beijings-curbs-onuse-government-vehiclesraises-hope-forchange?utm_source=rss_feed https://www.scmp.com/comment/article/1562637/beijings-curbs-onuse-government-vehiclesraises-hope-forchange?utm_source=rss_feed Wed, 30 Jul 2014 06:30:30 +0000 For the past two months, Beijing's efforts to break through the bureaucratic bottleneck blocking policy implementation has been in the news. On the State Council's orders, eight inspection teams fanned out late last month across the country to check on local governments' progress in carrying out the central government's policies to stabilise growth, improve livelihoods, and promote reform and restructuring. In all, 27 government departments and 16 provinces have been investigated. Officers were... https://www.scmp.com/comment/article/1557447/beijing-must-overcome-bottlenecks-blocking-policy-implementation?utm_source=rss_feed https://www.scmp.com/comment/article/1557447/beijing-must-overcome-bottlenecks-blocking-policy-implementation?utm_source=rss_feed Wed, 23 Jul 2014 04:30:15 +0000 Chinese diplomacy has had a busy few months, with numerous visits abroad by Chinese leaders and a constant stream of foreign leaders coming to China. Amid the flurry of activity, two meetings were particularly noteworthy: the sixth US-China strategic and economic dialogue in Beijing last week, and the BRICS leaders' summit in Brazil this week. The former offers a window into China's relationship with the world's sole superpower, while the latter maps out how the major emerging economies,... https://www.scmp.com/comment/article/1555372/stability-home-should-be-basis-chinas-diplomacy-peaceful-engagement?utm_source=rss_feed https://www.scmp.com/comment/article/1555372/stability-home-should-be-basis-chinas-diplomacy-peaceful-engagement?utm_source=rss_feed Wed, 16 Jul 2014 09:30:30 +0000 Last week's announcement that Xu Caihou will face charges for corruption was major news, undoubtedly one of the most important in recent times. Speculation about Xu's fate had been rife for months after Gu Junshan , the former deputy logistics chief of the People's Liberation Army, was charged with bribery and embezzlement in March. Although Xu was widely expected to be the next to fall, the news still came as a shock. The 71-year-old top general was, after all, the vice-chairman of the Central... https://www.scmp.com/comment/article/1550296/xu-caihou-case-shows-chinese-leaders-must-clean-military?utm_source=rss_feed https://www.scmp.com/comment/article/1550296/xu-caihou-case-shows-chinese-leaders-must-clean-military?utm_source=rss_feed Wed, 09 Jul 2014 06:00:00 +0000 The greater the downward pressure on China's economy, the louder the cries for another round of stimulus measures. Fortunately, the central government has decided against an all-out boost, choosing instead "smart and targeted regulation" to stabilise growth. This is commendable. But in execution, such work will be challenging. Much will depend on the government's strategy, tools and goals. While in London last month, Premier Li Keqiang stressed in a speech that Beijing would not resort to... https://www.scmp.com/comment/article/1544849/be-effective-chinas-policy-fine-turning-has-go-hand-hand-reforms?utm_source=rss_feed https://www.scmp.com/comment/article/1544849/be-effective-chinas-policy-fine-turning-has-go-hand-hand-reforms?utm_source=rss_feed Wed, 02 Jul 2014 05:00:00 +0000 No one is off limits in the government's campaign against corruption. CCTV financial news channel director Guo Zhenxi was put under investigation late last month, three months after the sacking of security vice-minister Li Dongsheng, who also worked for the state broadcaster. In late March, Gu Junshan, a former deputy logistics chief of the People's Liberation Army, was indicted for embezzlement and bribery, among other charges. This month, the government announced that Su Rong , vice-chairman... https://www.scmp.com/comment/article/1540200/no-one-can-be-above-law-chinas-anti-corruption-fight?utm_source=rss_feed https://www.scmp.com/comment/article/1540200/no-one-can-be-above-law-chinas-anti-corruption-fight?utm_source=rss_feed Wed, 25 Jun 2014 04:00:00 +0000 The prevalence of insider trading has become a headache for China's market regulator, recent developments show. Take two incidents this month. On June 6, Citic Securities analyst Zhang Mingfang revealed news of Livzon Pharmaceutical Group's equity incentive plan in several WeChat messaging groups. Three days later, Suning Commerce vice-president Li Bin hinted at big news on his social media account. In both cases, the news boosted the companies' share prices. The Shenzhen Stock Exchange has... https://www.scmp.com/comment/article/1535460/china-must-crack-down-rampant-insider-trading?utm_source=rss_feed https://www.scmp.com/comment/article/1535460/china-must-crack-down-rampant-insider-trading?utm_source=rss_feed Wed, 18 Jun 2014 04:15:00 +0000 China is due to relax its rules on foreign investment shortly, in the first change of such regulations in a decade. The National Development and Reform Commission (NDRC) announced late last month that it would delegate to local governments the power to approve foreign investments. This is welcome news to the international business community, though many believe the policy easing does not go far enough. They suggest that the government should get rid of its list of industries open to foreign... https://www.scmp.com/comment/article/1529920/china-must-be-open-more-foreign-investment?utm_source=rss_feed https://www.scmp.com/comment/article/1529920/china-must-be-open-more-foreign-investment?utm_source=rss_feed Wed, 11 Jun 2014 04:15:45 +0000 Market expectations are rising that China will cut the reserve requirement ratios for all banks. On a visit to Inner Mongolia last month, Premier Li Keqiang pledged to carry out "pre-emptive fine-tuning in a timely and appropriate manner" to help relieve the financing difficulties and high borrowing costs for small businesses. Many people think this means a blanket cut of the reserve requirement. This would be a bad move. To be sure, sustaining China's economic growth has been a challenge this... https://www.scmp.com/comment/article/1525129/nows-not-time-china-open-credit-floodgates?utm_source=rss_feed https://www.scmp.com/comment/article/1525129/nows-not-time-china-open-credit-floodgates?utm_source=rss_feed Wed, 04 Jun 2014 06:00:00 +0000 After government agencies, state-owned enterprises have become the second main battleground for China's crackdown on corruption. In September last year, a series of reports signalling high-level corruption at PetroChina and its parent company, China National Petroleum Corporation (CNPC), culminated in the detention of former CNPC chairman and then director of the State-owned Assets Supervision and Administration Commission, Jiang Jiemin. The fallout of the investigation is still being felt. In... https://www.scmp.com/comment/article/1520239/cleaning-chinas-state-owned-firms-must-go-beyond-punishing-corrupt?utm_source=rss_feed https://www.scmp.com/comment/article/1520239/cleaning-chinas-state-owned-firms-must-go-beyond-punishing-corrupt?utm_source=rss_feed Wed, 28 May 2014 10:45:15 +0000