https://www.scmp.com/rss/127217/feed Dr John Gong is a professor of economics at the University of International Business and Economics in Beijing, where he teaches and researches in areas of finance, industrial organisation, and competition policies. He is a prolific researcher and writer with a list of publications in leading international academic journals, and an op-ed columnist for several newspapers in Asia. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com When US president George W. Bush launched the second Gulf War, he coined the phrase the “coalition of the willing” to refer to the countries who supported the 2003 invasion of Iraq and subsequent military occupation, on the grounds of Saddam Hussein’s connection to al-Qaeda and Iraq’s development of weapons of mass destruction, both of which proved to be fabrications. Nevertheless, over 400,000 people paid with their lives. Today, I advocate the creation of a “coalition of the unwilling” – an... https://www.scmp.com/comment/opinion/article/3212324/ukraine-war-pressure-us-led-sanctions-build-coalition-unwilling-must-stand-together?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3212324/ukraine-war-pressure-us-led-sanctions-build-coalition-unwilling-must-stand-together?utm_source=rss_feed Tue, 07 Mar 2023 17:00:11 +0000 This is the time for a simple and just vision, long overdue but which has still taken decades. In his famous speech at the 1955 Bandung conference attended by representatives from 29 newly independent Asian and African countries, then Indonesian president Sukarno said: “It is a new departure in the history of the world that leaders of Asian and African peoples can meet together in their own countries to discuss and deliberate upon matters of common concern. Only a few decades ago it was... https://www.scmp.com/comment/opinion/article/3198909/asia-asians-vision-nothing-americas-monroe-doctrine?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3198909/asia-asians-vision-nothing-americas-monroe-doctrine?utm_source=rss_feed Thu, 10 Nov 2022 19:30:10 +0000 There is no doubt that the global economy is entering an era of recession. Across the board, among the world’s major economies, we are seeing slower growth coupled with inflation. The US economy has contracted for two consecutive quarters this year, while the G7 nations managed an anaemic 0.2 per cent growth rate in the second quarter, helped mostly by Italy and Canada. China’s growth figure sank to 0.4 per cent, a level not seen in decades, barring the pandemic-induced dip in 2020. In the... https://www.scmp.com/comment/opinion/article/3193846/chinas-economic-woes-unlike-us-and-eus-will-fade-pandemic?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3193846/chinas-economic-woes-unlike-us-and-eus-will-fade-pandemic?utm_source=rss_feed Tue, 27 Sep 2022 19:30:13 +0000 Historically, China was a trading nation, and it continues to be one today. China is now the world’s largest trading nation, accounting for 13.2 per cent of global goods exports and nearly 11 per cent of global imports. And that upward trend shows no sign of abating, especially in the Covid-19 era when China’s economy has recovered quickly while many other parts of the world are still battling waves of coronavirus outbreaks. The first half of 2021 saw China’s total trade volume increase by 27.1... https://www.scmp.com/comment/opinion/article/3147158/why-world-needs-globalisation-20-rather-retreat-protectionism?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3147158/why-world-needs-globalisation-20-rather-retreat-protectionism?utm_source=rss_feed Fri, 03 Sep 2021 01:15:23 +0000 It’s likely that few of the Hong Kong protesters have heard of the 1967 Newark riots. The college students, young folks and all those men and women of Hong Kong who have taken to the streets in the past few weeks should learn about this part of the history in America, whose political system they purportedly demand. The economic situation in Newark in 1967 was quite similar to Hong Kong’s today, and goals of the rioters were also quite similar. Amid the trend of relentless suburbanisation in the... https://www.scmp.com/comment/opinion/article/3019736/protests-wont-solve-hong-kongs-economic-problems-1967-newark-riots?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3019736/protests-wont-solve-hong-kongs-economic-problems-1967-newark-riots?utm_source=rss_feed Wed, 24 Jul 2019 06:00:08 +0000 When the first summit between presidents Xi Jinping (習近平) and Barack Obama took place in June 2013, there was an interesting photo of them walking side by side at the picturesque Rancho Mirage in California, in striking resemblance to the strides of Winnie the Pooh and Tigger. Back then, the Sino-US relationship actually resembled the pleasant relationship between Pooh and Tigger. This time round, at the meeting in Florida, although US President Donald Trump does not have a figure as slim as... https://www.scmp.com/comment/insight-opinion/article/2089574/china-and-us-must-narrow-trade-gap-boosting-trade-rather?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2089574/china-and-us-must-narrow-trade-gap-boosting-trade-rather?utm_source=rss_feed Sun, 23 Apr 2017 05:00:30 +0000 The dairy industry is probably the sickest industry in China. Its products are sick. Its managers cheat. The indigenous dairy industry has witnessed one scandal after another, from melamine milk to leather milk and other chemical formulations that are beyond people's imagination. The dairy industry is so sick that consumers in China have totally abandoned indigenous brands, opting for imports instead. Until last week's news about contaminated ingredients supplied by New Zealand's Fonterra, the... https://www.scmp.com/comment/insight-opinion/article/1295294/how-fair-chinas-crackdown-anti-monopoly-behaviour?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1295294/how-fair-chinas-crackdown-anti-monopoly-behaviour?utm_source=rss_feed Thu, 08 Aug 2013 16:00:00 +0000 The fact that China National Offshore Oil Corporation's US$15.1 billion acquisition of Calgary-based Nexen went through successfully, with the required US approval, shows that direct investment capital flows from China are not always subject to political hijacking, as many on the mainland claim. This acquisition came under US jurisdiction because of the Canadian company's oil and gas operations in the Gulf of Mexico. The group that handles regulatory oversight and approval of foreign investments... https://www.scmp.com/comment/insight-opinion/article/1192986/nexen-deal-shows-how-chinese-firms-can-do-business-us?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1192986/nexen-deal-shows-how-chinese-firms-can-do-business-us?utm_source=rss_feed Sun, 17 Mar 2013 16:00:00 +0000 Following the conclusion of the 18th national congress of the Communist Party, general secretary Xi Jinping toured the southern city of Shenzhen, reminiscent of Deng Xiaoping's famous southern tour exactly 20 years ago, which ushered in an unprecedented period of growth and prosperity in China's modern history. During a tour to a museum exhibition there titled "The Road to Revival", Xi first introduced the phrase "Chinese dream". In his speech, Xi defined the Chinese dream as one of "achieving... https://www.scmp.com/comment/insight-opinion/article/1111571/missing-chinese-chinese-dream?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1111571/missing-chinese-chinese-dream?utm_source=rss_feed Sun, 23 Dec 2012 16:00:00 +0000 Imagine you are a young man standing handcuffed in the Old Bailey, London's courtroom, in 1791, facing a capital crime for which you have been framed. Enter William Garrow, a young defence lawyer, uttering these words: "Innocent until proven guilty!" - which saved you from the gallows, and also saved justice from the gallows. The principle of the presumption of innocence, although often attributed to Garrow, can actually be traced back to earlier times. A sixth-century Roman law provided "Proof... https://www.scmp.com/comment/insight-opinion/article/1100038/chinas-unjust-labour-camps-must-go?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1100038/chinas-unjust-labour-camps-must-go?utm_source=rss_feed Fri, 07 Dec 2012 16:00:00 +0000 Patriotism is the last refuge of a scoundrel, Samuel Johnson once said. What has happened in the latest anti-Japan protests across China shows once again that, after 30 years of economic development, there's still no shortage of scoundrels in this country. An article in The New York Times said Beijing was sending mixed messages over these protests. But I do not see any ambiguity - the display of patriotism is certainly lauded, but the display of the kind of scoundrel patriotism, particularly in... https://www.scmp.com/comment/insight-opinion/article/1039983/chinese-boycott-japanese-products-over-diaoyus-makes-no?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1039983/chinese-boycott-japanese-products-over-diaoyus-makes-no?utm_source=rss_feed Tue, 18 Sep 2012 16:00:00 +0000 China's economy is now at a critical juncture. It seems a day does not go by without reading more news of China's slowdown. The next few months could see the various adverse forces combining to form a perfect storm. The euro crisis has caused havoc to China's export industry. The central government is determined to curb property prices at the cost of two industries already - steel and cement. Meanwhile, the railway industry - once the engine of the government's stimulus package - is in the... https://www.scmp.com/comment/insight-opinion/article/1032873/corporate-china-danger-crash?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1032873/corporate-china-danger-crash?utm_source=rss_feed Sun, 09 Sep 2012 16:00:00 +0000 The most stunning phenomenon in the past 24 years of Olympic history is indisputably the rise of China as a major power in the sports arena, commensurate with its rise as a major global economic and political force. China's ranking in the International Olympic Committee's medal table has steadfastly improved from No 11 in the 1988 Seoul Games to the top spot at the 2008 Beijing Games. However, historically, the country that gains most respect from me is not China. In terms of getting the most... https://www.scmp.com/article/1014217/bigger-richer-stronger-not-always-games?utm_source=rss_feed https://www.scmp.com/article/1014217/bigger-richer-stronger-not-always-games?utm_source=rss_feed Mon, 06 Aug 2012 16:00:00 +0000 Here is a little secret that folks at the Ministry of Commerce in Beijing do not want the domestic audience to know much about. When it comes to resolving China's trade conflicts with other countries, the ministry's dealings at the World Trade Organisation have been about as good as chimps throwing darts at the board - it has never come out on top at the WTO's Dispute Settlement Body since China's accession to the WTO. China has faced complaints in 23 cases concerning 14 different issues up... https://www.scmp.com/article/1006533/beijing-should-settle-wto-case-over-rare-earth-exports?utm_source=rss_feed https://www.scmp.com/article/1006533/beijing-should-settle-wto-case-over-rare-earth-exports?utm_source=rss_feed Wed, 11 Jul 2012 16:00:00 +0000 To fix or not to fix, that is the question. Or maybe it's the monetary system itself that needs a fix. These are the messages contained in a 34-page paper by Joseph Yam Chi-kwong, on the Hong Kong dollar's peg to the US dollar. (I have seen so many news reports mentioning a 27-page paper that I cannot help wondering how many of those reporters actually read Yam's paper). Yam, of course, had stood by the peg from 1993, when he became the first chief executive of the Monetary Authority, until he... https://www.scmp.com/article/1004020/pegged-out-john-gong?utm_source=rss_feed https://www.scmp.com/article/1004020/pegged-out-john-gong?utm_source=rss_feed Thu, 14 Jun 2012 16:00:00 +0000 Let's be honest and admit that we Chinese do not have a good reputation among people of the world in terms of our treatment of animals. There is a joke about the Cantonese that they are entrepreneurial people capable of excelling in many professions - but not zookeeper. Our heritage, albeit rich and proud, is unfortunately also riddled with elements of animal abuse that clearly do not live up to the moral standards of modern civilised societies. One of them is a treatment rooted in traditional... https://www.scmp.com/article/993434/bear-bile-business-has-already-lost-pr-war?utm_source=rss_feed https://www.scmp.com/article/993434/bear-bile-business-has-already-lost-pr-war?utm_source=rss_feed Wed, 22 Feb 2012 16:00:00 +0000 The biggest news in the auto industry is Detroit's comeback with a vengeance in 2011. The new GM reclaimed the title of the world's largest carmaker in terms of units sold - over 9million last year, and with a handsome profit. Ford sold over 2million cars in the US last year, while it hasn't released total global sales yet. But its US$20.2billion profit is the second largest in company history. Even the perennial lame-duck Chrysler eked out a small profit for the first time since 1997. It's... https://www.scmp.com/article/992512/driving-force?utm_source=rss_feed https://www.scmp.com/article/992512/driving-force?utm_source=rss_feed Sun, 12 Feb 2012 16:00:00 +0000 The US government is preparing to investigate whether China's solar panel companies received a subsidy for exports or dumped solar panels in the American market at below cost price, after seven US solar product manufacturers filed a petition with the US Commerce Department demanding action. This comes against the background of several US solar panel companies going out of business because of significant price drops and competition from China - and, more significantly, the continuing trend... https://www.scmp.com/article/986444/chinese-solar-firms-arent-out-undercut-competition?utm_source=rss_feed https://www.scmp.com/article/986444/chinese-solar-firms-arent-out-undercut-competition?utm_source=rss_feed Wed, 30 Nov 2011 16:00:00 +0000 Wal-Mart's 13 stores in Chongqing have reopened after being shut for two weeks for selling regular pork labelled, and priced, as organic. This scandal just adds to the fundamental belief that all corporations - if not supervised and regulated properly - are inherently evil and will do whatever it takes to make an extra buck. Just witness the current 'Occupy Wall Street' protests for further evidence. Wal-Mart Stores is certainly no stranger to legal wrangles. Throughout its 60-year... https://www.scmp.com/article/983150/born-sinners?utm_source=rss_feed https://www.scmp.com/article/983150/born-sinners?utm_source=rss_feed Thu, 27 Oct 2011 16:00:00 +0000 I believe the number Hongkongers hate most right now is 7.8, the all-too-familiar exchange ratio with the US dollar that the Hong Kong dollar has been pegged to for 28 years. This peg has been the primary culprit for Hong Kong's high-flying inflation lately. The Monetary Authority said last month that it had no immediate plans to get rid of the peg, despite growing calls to end it as the US economy falters. Nevertheless, people are already moving and hedging. News reports last month said hedge... https://www.scmp.com/article/981737/burning-issue?utm_source=rss_feed https://www.scmp.com/article/981737/burning-issue?utm_source=rss_feed Wed, 12 Oct 2011 16:00:00 +0000 US President Barack Obama's jobs speech last week sets out a grandiose job creation plan that is again essentially sponsored by government spending, aka, federal debt. The American Jobs Act, if passed by Congress, is supposed to lead to new jobs for construction workers, teachers, veterans, first responders, young people and the long-term unemployed. The bill provides incentives for companies to hire new workers, mostly via temporary payroll tax reductions. Those all sound fine at first glance.... https://www.scmp.com/article/978996/only-way?utm_source=rss_feed https://www.scmp.com/article/978996/only-way?utm_source=rss_feed Tue, 13 Sep 2011 16:00:00 +0000 This summer has been tough for several organisations embroiled in public trust crises on the mainland. First, the powerful Ministry of Railways faced severe criticism after the Wenzhou train disaster and the disappointing debut of the Beijing-Shanghai high-speed service. Then there is high-end furniture retail chain Da Vinci, which has been accused of misrepresenting the origin of its products by sending items to duty-free industrial parks. In this way, they acquired a seal on the invoice... https://www.scmp.com/article/976016/best-prescription-restoring-consumers-trust?utm_source=rss_feed https://www.scmp.com/article/976016/best-prescription-restoring-consumers-trust?utm_source=rss_feed Fri, 12 Aug 2011 16:00:00 +0000 The recently opened high-speed rail route between Beijing and Shanghai, said to be the longest and the fastest in the world, has drawn attention to innovation in China. The popular myth is that Chinese companies largely remain in the bottom pit of the global supply chain that affords them scant resources for groundbreaking research and development. The often-cited example is the US$6 value of an Apple's US$300 iPhone that can be attributed to Chinese parts manufacturers. Yet China... https://www.scmp.com/article/974198/recycling-ideas?utm_source=rss_feed https://www.scmp.com/article/974198/recycling-ideas?utm_source=rss_feed Fri, 22 Jul 2011 16:00:00 +0000 Tsinghua University got more than it bargained for with its publicity campaign last month to mark its 100-year anniversary. The university came under the spotlight last week after its No 4 Teaching Building was named 'Jeanswest Building', with the name appearing in shiny Chinese and English characters, along with a line saying that Jeanswest, as a leading casual clothes company, had contributed its share to the nation's education. It appears that this share did not come cheaply - it is... https://www.scmp.com/article/969647/few-lessons-tsinghua-university-raising-funds-and-naming-buildings?utm_source=rss_feed https://www.scmp.com/article/969647/few-lessons-tsinghua-university-raising-funds-and-naming-buildings?utm_source=rss_feed Fri, 03 Jun 2011 16:00:00 +0000 Forecasters are clamouring to predict when China will surpass the US to become the world's largest economy, the rush increasingly resembling an Olympic 100-metre dash, with the big Wall Street houses as the front runners. These forecasts are based on a comparison of the economic size of China and the US, using market exchange rates to convert the value of nationally produced goods and services into a common currency, the US dollar. So every time the renminbi exchange rate goes up a notch, the... https://www.scmp.com/article/968538/lot-hot-air?utm_source=rss_feed https://www.scmp.com/article/968538/lot-hot-air?utm_source=rss_feed Sun, 22 May 2011 16:00:00 +0000 Of late, a number of commentators have been drumming up the theory of a property bubble in China and, more importantly, the pending burst of the bubble. One article, on these pages, talked about the self-fulfilling cycle where Chinese banks' lending money against collateral propels the property price rise, which in turn increases the value of the bank's collateral, leading to even more lending. If one looks at the ratio of housing prices to average income, there is no doubt that property in... https://www.scmp.com/article/967067/bubble-sky?utm_source=rss_feed https://www.scmp.com/article/967067/bubble-sky?utm_source=rss_feed Fri, 06 May 2011 16:00:00 +0000 As aftershocks continue to hit Japan, the impact of the disaster is being felt in China. Panic about radiation caused a run on salt, leaving many Chinese families with enough to last the rest of their lives. Low levels of radioactive substances have been found in vegetables along coastal cities, causing some concern among mainland citizens. While these incidents make the headlines, the real economic impact on China is worthy of more careful analysis. With a total trading volume of about... https://www.scmp.com/article/965134/business-opportunity?utm_source=rss_feed https://www.scmp.com/article/965134/business-opportunity?utm_source=rss_feed Thu, 14 Apr 2011 16:00:00 +0000