With the purported goal of reducing students’ stress, China’s new “double reduction” policy seeks to ease homework and after-school tutoring burdens. In reality, the policy has been more successful in crippling the nation’s private tutoring sector, while daily life for students has not substantially changed. Under harsh regulations, private tutoring businesses are pivoting rapidly to find new avenues for profit.
Category: China Insight Articles
As societal and socioeconomic pressures transform traditional Chinese values, China’s single population is growing. With its boom, a new “singles economy” has been born. While the demographic has traditionally lifted industries like dating apps and health and wellness, businesses across all markets would be wise to keep this affluent segment in mind.
The new space race has begun, this time with American and Chinese commercial space companies competing to become the global aerospace industry leader. While these aerospace companies may be looking at the stars, they do not necessarily have their heads in the clouds, as new innovations are benefitting day-to-day life on Earth and increasing public enthusiasm for aerospace technology. While this is a strategic competition for both sides, the rise of privately-owned space companies will ultimately benefit everyone.
Local government financing vehicles (“LGFVs”) reclaimed the spotlight during the pandemic as officials sought quick gains to reinvigorate a slowing economy. However, mounting off-balance sheet debt has become a key concern for policymakers who seek to confront a credit boom. As China’s property market woes begin to create ripple effects for LGFVs, policymakers are now tasked with balancing the need to front-run debt issues while preventing rampant defaults.
The Evergrande crisis opened the world’s eyes to the global implications of sudden Chinese policy changes. In many ways, the case of Evergrande and other indebted property developers has been brought on by the over-corrective nature of China’s financial de-risking campaign. Now, compounded by an unfavorable economic environment, these financial risks may spell untold consequences for growth.
The world around us is driven by commerce. E-commerce has enjoyed particular success in modern society and accounts for over 50% of China’s total retail sales. Online auctions, a maturing segment of the e-commerce industry, is discovering newfound adoption by young wealthier consumers bidding in niche markets like art and nonperforming loans. With bad debt looming on the horizon, this segment may be poised for explosive growth.
In an unprecedented push, Chinese regulators have waged an all-out war on private industry in 2021. Regulators started their crusade against anti-competitive business practices early in the year and have since broadened their scope to reign in data security. Through two new data security-related laws, along with targeted crackdowns on industry giants like Didi Chuxing, Beijing has laid the foundation for a new operating environment for private industry.
Is the “Golden Age” of US-China business relations over? With Pat McAloon, director of the Greater Columbus Chinese Chamber of Commerce, and Colin Renk, director of the America China Society of Indiana, we explore US-China business perspectives from a grassroots level in the American Heartland.
Amazon’s unprecedented crackdown on fake reviews has shuttered thousands of Chinese merchant stores since May 2021, throwing the “made in China, sold on Amazon” model into limbo. In this article, we discuss the impetus behind Amazon’s crackdown and how Chinese merchants will handle the shift.
China’s EV industry is entering its most exciting phase of development yet. The highly competitive market is introducing a variety of innovative products at lower prices than global competitors, providing Chinese companies a foothold abroad. Still, to further bolster domestic competition, Beijing is calling for market consolidation to weed-out weaker firms while strengthening those with the most industry potential.
China’s agricultural production is inefficient and, in many ways, outdated. Facing growing issues like urbanization and an aging population, China is staring down at major food security issues. Yet, technology may be the answer as farmers in China begin to work with tech giants to increase farm productivity and crop yields.
The podcast industry is coming of age in China. With a tight-knit community of 80 million young and educated listeners from top-tier cities, content creators, big-tech firms, and regulators are rushing into the growing market with varying missions.
China’s preferential policy has cultivated a hot bed for blockchain innovation. As policymakers name blockchain as a key driver of the nation’s future economy, domestic SMEs and MNCs have the opportunity to scale along with global adoption of this emerging technology behind some of the greatest economic and social innovations of our generation.
The ‘lying flat’ movement that emphasizes a stand against traditional employment and a minimalist lifestyle is sweeping across China. The appeal of this lifestyle to many in the younger generations could prove an obstacle to Xi Jinping’s dual circulation economic model, particularly amid China’s aging population demographic.
From clamping down on anti-competitive marketing practices to stifling illicit uses of personal data, Beijing’s regulatory crackdown is driven by a desire to curb the “disorderly expansion of capital.” However, these efforts risk going too far and threaten to deal an outsized blow to China’s rapid innovation and growth.