https://www.scmp.com/rss/510122/feed Fang Zihao is currently studying for a PhD in economics at Koc University in Istanbul. His main research interests include the middle-income trap, innovation mechanisms, and the relationship between them. He also follows the latest developments in the global financial markets. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com China has been pursuing the dream of the “great rejuvenation of the Chinese nation” for some time. Even though the Chinese dream is an internal matter and a legitimate right of China, it might be perceived as a threat by other nations. For instance, the broad Pacific Ocean is vast enough to embrace both China and the United States, but it is not big enough to accommodate both the Chinese dream and the campaign of “Make America Great Again”. When two of the world’s most powerful countries become... https://www.scmp.com/comment/opinion/article/3203142/tianxia-datong-china-has-chinese-dream-befits-times?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3203142/tianxia-datong-china-has-chinese-dream-befits-times?utm_source=rss_feed Wed, 14 Dec 2022 19:30:13 +0000 Globally, many countries have now fully reopened amid the Covid-19 pandemic. China’s implementation of the “zero-Covid” strategy during the Delta wave provided a competitive advantage for development. However, now that Omicron and its variants are dominant and are expected to remain so for the foreseeable future, China should revisit its zero-Covid policy. In the EU, Britain and the US, where economies have completely reopened, the average excess mortality rate for this year is estimated to be... https://www.scmp.com/comment/opinion/article/3201377/costs-zero-covid-mount-chinas-economy-needs-urgent-rescue?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3201377/costs-zero-covid-mount-chinas-economy-needs-urgent-rescue?utm_source=rss_feed Thu, 01 Dec 2022 13:30:13 +0000 The expansion of China’s exports has contributed significantly to the country’s economic success over the past four decades. From 1981-2021, exports as a percentage of China’s gross domestic product rose to 20 per cent from 7.4 per cent, and China’s share of global exports of goods and services has soared to 13 per cent from 0.6 per cent. But the role of the export-led growth strategy is shrinking for China, as the international market becomes relatively smaller. In 1990, international markets... https://www.scmp.com/comment/opinion/article/3193861/unlike-1990s-japan-chinas-economy-can-power-internal-circulation?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3193861/unlike-1990s-japan-chinas-economy-can-power-internal-circulation?utm_source=rss_feed Wed, 28 Sep 2022 08:30:12 +0000 The US economy was already overheating in November, when unemployment fell below the “natural rate” – the lowest sustainable level without creating inflation. Inflation had also surged, to nearly 5 per cent for the core consumer price index, which excludes food and energy prices, well above the Federal Reserve’s target rate. But it was not until March that the Fed began to raise interest rates, which remain well below the “neutral rate” – a theoretical level at which Fed policy is neither... https://www.scmp.com/comment/opinion/article/3183037/how-china-can-protect-its-economy-and-worlds-amid-us-recession?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3183037/how-china-can-protect-its-economy-and-worlds-amid-us-recession?utm_source=rss_feed Mon, 27 Jun 2022 04:30:14 +0000 China’s potential economic growth rate is set to fall as its demographics change. A shrinking workforce in relation to the ageing population and falling birth rate is likely to push down national savings to about 40 per cent of its gross domestic product by 2030. As a result, and as capital stock – the total value of infrastructure, equipment and other assets used to produce goods and services – accumulates, the annual growth rate of this stock will fall from 7.5 per cent today to 4.7 per cent... https://www.scmp.com/comment/opinion/article/3177786/how-china-can-make-next-great-economic-leap?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3177786/how-china-can-make-next-great-economic-leap?utm_source=rss_feed Wed, 18 May 2022 14:00:24 +0000 Since the establishment of the Bretton Woods system, and especially since the British and US governments began to sponsor neoliberalism globally in 1980, the global economy has become increasingly integrated. Although this has accelerated the division of labour among countries and increased economic growth, globalisation has stalled, partly due to a lack of inclusivity. Today, 4 billion people still live in low- or lower-middle income countries; 327 million people live in countries that... https://www.scmp.com/comment/opinion/article/3175451/three-ways-make-globalisation-more-inclusive-and-sustainable?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3175451/three-ways-make-globalisation-more-inclusive-and-sustainable?utm_source=rss_feed Wed, 27 Apr 2022 19:30:22 +0000 When the global financial crisis erupted in 2008, Beijing responded with a 4 trillion yuan (US$559 billion) stimulus package to mitigate its impact on the country and help stabilise the global economy. Since then, China’s economy has followed a growth pattern of rising housing prices, credit expansion and home construction. The flaws of this credit- and investment-driven growth model have been exposed in recent years. As China’s capital stock accumulates, the depreciation of the existing capital... https://www.scmp.com/comment/opinion/article/3151489/chinas-economic-miracle-transition-not-danger-stagnation?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3151489/chinas-economic-miracle-transition-not-danger-stagnation?utm_source=rss_feed Thu, 07 Oct 2021 19:30:17 +0000 A new wave of Covid-19 cases is threatening lives in every corner of the world, including China, a country largely immune to previous waves of the pandemic. Given the higher transmission rates of the Covid-19 mutations and possible lower efficacies of developed vaccines, herd immunity may not be achievable. The R0, or number of people one sick person will infect, for the Delta variant has reached five or higher; this means at least 80 per cent of the entire population needs to be immune to the... https://www.scmp.com/comment/opinion/article/3145292/why-china-right-stick-its-zero-covid-strategy-amid-delta-variant?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3145292/why-china-right-stick-its-zero-covid-strategy-amid-delta-variant?utm_source=rss_feed Tue, 17 Aug 2021 22:45:18 +0000 According to Daron Acemoglu and James Robinson, the authors of Why Nations Fail, countries need inclusive institutions so people have incentives and opportunities to study, work, invest and innovate. The most essential inclusive institutions are generally understood to include property rights; intellectual property; free market and competition law; equal access to education and health care; equal political rights; rule of law; and public supervision. Accordingly, if a country has high education... https://www.scmp.com/comment/opinion/article/3143496/chinas-secret-success-country-more-committed-inclusivity-youd-think?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3143496/chinas-secret-success-country-more-committed-inclusivity-youd-think?utm_source=rss_feed Tue, 03 Aug 2021 00:30:18 +0000 Last year, the “death” of Hong Kong was again declared in the Western media, as the Hong Kong government lost Hongkongers’ trust. But not so fast: the government has been gradually regaining respect as it brings the coronavirus pandemic under some semblance of control. At the same time, Hong Kong’s unique position as a gateway to and from mainland China, along with the city’s world-class infrastructure and institutions, continues to appeal to talent and business from around the world. So far in... https://www.scmp.com/comment/opinion/article/3138260/even-amid-pandemic-hong-kong-better-place-most?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3138260/even-amid-pandemic-hong-kong-better-place-most?utm_source=rss_feed Tue, 22 Jun 2021 22:45:00 +0000