Saturday 27 Nov 2021 | 10:18 | SYDNEY
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China's Economy

China’s digital currency: Next stop, Africa?

In April 2020, China was the first major economy to pilot a digital currency, the e-yuan or e-CNY. The e-CNY, which will eventually replace physical cash and is currently being tested in Chinese cities, is integrated with the Digital Currency Electronic Payment (DCEP) system and data processing

China’s economic sanctions made Australia more confident

China has singled out several Australian industries with economic sanctions since May last year, imposing hefty tariffs on Australian barley and wine exports, while throwing up barriers to other products including timber, lobster and coal. Beijing’s action has largely been seen as a response to

Can the China model be accommodated in the CPTPP?

On 16 September, China officially applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comprising Australia and 10 other members. The free-trade pact is the most extensive in the region, and accounts for almost 14 per cent of global GDP. Before pulling

China’s digital currency takes shape

China’s financial system is changing. The country’s new Digital Currency Electronic Payment (DCEP) – a digital payment and processing network run by the Central Bank of China – and its digital currency, the digital yuan (e-CNY), is expected to completely replace physical cash. Unveiled

China puts its golden goose on notice

In recent years, China’s digital economy has seemed like a house undergoing full-scale renovation. At this moment, it appears to be in the demolition stage. In a series of regulatory smackdowns, the magnitude ranging from sledgehammers to wrecking balls, Beijing has appeared willing to lay waste

China’s numbers game harms us all

Speaking before a crowd at Tiananmen Square that gathered in celebration of the 100th anniversary of the Chinese Communist Party (CCP), Xi Jinping triumphantly declared that the goal of building China into a “moderately prosperous” society had been completed. Though without a clear measurable

The battle for Africa

In his first overseas trip as US President, Joe Biden has flagged he intends to rally European allies in a critical “battle between democracies and autocracies”, and “make it clear to Putin and to China that Europe and the United States are tight”. Biden is not the only one in

China’s innovation dilemma

It has long been conventional wisdom that China would struggle to become an innovative nation. China’s controlled society, with lack of freedom of speech and expression, propaganda and censorship, together with an education system that emphasises rote learning and memorisation have been judged to

Has China given up on state-owned enterprise reform?

Outside observers have all but given up hope that China will engage in meaningful state-owned enterprise (SOE) reform. There is a pervasive sense that rather than shrinking SOEs, China’s leaders are committed to increasing their prominence within the economy. Foreign perceptions of Chinese SOEs

China’s problematic lending comes home to roost

On 13 November, the finance ministers and central bankers of the G20 will hold an extraordinary meeting to discuss action to help poor countries struggling to pay debts. A key issue will be getting China, the world’s largest bilateral creditor, to play a more active role. The push by China’s&

Economic diplomacy: A headless WTO, selling the Asian farm

New world order The leadership of the World Trade Organisation may be the first test of whether the world can move on with normal life amid the divisions and recriminations as the US recovers from a bitter election. In one of its last international policy moves, the Trump administration last week

Debunking the myth of China’s “debt-trap diplomacy”

Against the fear and distrust that increasingly characterise Australia’s relationship with China, the Belt and Road Initiative looms large. Australian politicians from both major parties rarely agree on much openly, but nearly all agree that China uses the BRI to achieve geopolitical goals. Many

The economics of national security in Hong Kong

In the late hours of Tuesday evening last week, China’s new national security law for Hong Kong came into force. Seen by many as a response to the pro-democracy protests that erupted in the city last year, the law criminalises four types of national security offenses: sedition, subversion,

Book review: What’s holding China’s economy back?

Book Review: Dexter Roberts The Myth of Chinese Capitalism: The Worker, the Factory, and the Future of the World (St Martin’s Press, 2020) With the US, Brazil and many European countries struggling to manage the Covid-19 pandemic, China seems to be emerging as an even greater economic and

The prospects for China’s post–Covid-19 economy

While the Canberra political establishment has been sparring with China’s Foreign Ministry – and with Australian billionaires – much of the corporate elite has begun puzzling how to slipstream China’s post–Covid-19 economic recovery. Optimists hope that Beijing will summon a massive

China, a low-productivity superpower

In the space of just a few decades, China has risen to the rank of a world power, and certainly an Asian regional power. And now China and the US have locked horns in a great-power struggle over trade, foreign investment, intellectual property, technology-transfer policies, industrial policy, cyber

Balancing act: China’s nationalist consumer boycotts

In June, a controversial statement from a UBS economist set off a firestorm in mainland China, causing serious trouble for the Swiss banking behemoth in one of its most important markets. Nationalist anger circulated on Chinese social media. The company apologised for the remarks and placed the

2019: a rough road ahead for Xi

In 2018, Xi Jinping seemed to be in an almost unassailable position in Chinese politics. China’s president started the year with the sort of political power that few since Mao have enjoyed, with what was seen as an emphatic victory for him at the 2018 National People’s Congress for his proposal

Why China’s financial system remains closed

While China still uses the rhetoric of “reform and opening up” its financial system remains relatively closed and is set to get even more unfriendly for foreign investors despite some recent announcements on liberalisation. The recent news that China continues to delay access by Visa and

US versus China: the economic model

With the US–China economic rivalry intensifying and “decoupling” becoming the mantra in Washington, what mindset, or economic model, is behind President Donald Trump’s response to China? Trump is a Republican, but not as we know them. Republicans favour free international trade,

The geopolitics of China’s tax reforms

The continued legitimacy of the Chinese government under President Xi Jinping, as it was with former president Hu Jintao, depends on two main pillars: improvements in people’s material wellbeing and a strong sense of national pride. The notion that the government will improve the Chinese people’

China’s tech bubble

In the four decades that have followed China’s initial stage of post-Mao “Reform and Opening Up”, the world has learned to expect great things from the Middle Kingdom’s centrally-planned economy. It has established itself as the low-end “factory of the world” and orchestrated an

China’s looming financial crisis

Governor of the Reserve Bank of Australia Philip Lowe’s speech last week highlighting the risks to the Chinese financial system from shadow banks – non-bank financial institutions often operating in more lightly regulated wholesale markets – has once again drawn attention to the

Australia, Asia, and the “Wealth of Nations”

How does Australia’s economy align with those of our Asian neighbours? What are the development challenges facing nearby South East Asian countries? And just how large is China’s economy? These questions are of particular interest this week as the ASEAN-Australia Special Summit is held in Sydney

China’s economic gloom merchants

Markedly slower growth and imminent financial crisis have been the common dual predictions for China over the past decade. China’s growth has indeed slowed from its unsustainable breakneck pace in the two decades before the 2007–08 global crisis, but since then has settled down to a steady 6–7

Risk aversion in domestic Chinese politics

The 19th Party Congress was a watershed for the Xi administration. Feverish speculation about candidates for promotion the Politburo Standing Committee is over, but their policy significance much as before: enigmatic. There is a natural interest in factional or interest group allegiance. It is now

China’s financial concerns

The China bears have been around for years, continuously predicting the end of China's stellar growth story. In 2012 Michael Pettis expected annual growth to average 3% over this decade and in 2015 Tyler Cowen warned of an imminent disastrous financial collapse. So far, so good. China's

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