China Insights Series
Turn News Into Insights
There’s a lot of buzz over China news, but significantly less understanding of the drivers behind China’s political economy. We’re here to bridge that gap.
At TCG we strive to ‘turn news into insight,’ which helps cut through the noise for rookies and experts, alike. Our team of China Watchers from across the globe weigh in on issues that impact critical business and investment decisions in the Chinese market. If we’ve piqued your interest, then don’t be shy and read on, below!
View the Bigger Picture
Cut through the noise on China’s business landscape with TCG’s China Insights
China Insight Articles
Veiled Intentions & Long-Term Mindset: Beijing Rejects Market-Oriented SOE Reform
A recent string of high-profile SOE defaults have revived hopes for market reform of China’s inefficient state sector. However, despite appearances to the contrary, Beijing continues to push for greater state control over the sector and an augmented role for SOEs in strategic industries and initiatives. As a result, the performance of China’s SOEs has stagnated and the state sector remains a burden to near-term economic growth.
- Economics |
- Technology |
E-Commerce Lends a Hand to Eradicating Rural Poverty in China
In 2015, President Xi committed to eradicating rural poverty by the end of 2020, and despite the economic distress brought on by the pandemic, China declared its momentous victory. While a mix of state policy and private sector support were key to the campaign’s success, digital technologies such as e-commerce played a pivotal role in improving the quality of life in rural areas and have brought China one step closer to realizing a moderately prosperous society.
Michael Jordan, Bruce Lee and the Future of Trademarks in China
Michael Jordan and Bruce Lee have been making news in China’s trademark scene over recent years with cases aimed at protecting the legitimate IP rights of foreign persons and entities in China. Amendments to China’s trademark laws should provide broader protections to companies across the board; however, questions concerning whether owners of less well-known brands can find as effective enforcement as celebrities sporting household names remain.
US Policy Ups Ante for US-Listed Chinese Companies
Accounting fraud at two highly visible Chinese companies have shaken the confidence of global investors while prompting US policymakers and exchanges to push for stronger accounting requirements for overseas companies listed in the United States. Whether or not Chinese regulators will comply remains to be seen.
The RCEP: A Big Deal Unlikely to Resolve Sino-Australian Disputes
At first viewed as an olive branch amidst a spiraling Sino-Australian trade war, the now finalized Regional Comprehensive Economic Partnership is unlikely to ease mounting tensions. The untested dispute settlement mechanisms within the deal and shallow provisions for reducing tariffs bode poorly for Sino-Australian relations and point to no end in sight for 2020’s series of new economic tariffs and sanctions.
Hainan, an Island Paradise for Foreign Trade and Investment
As Hong Kong’s economy continues to decline, retail, tourism, and foreign investment dollars have assumed a newfound importance to the Chinese economy. An up-and-comer is rising from the shadows to challenge Hong Kong’s regional stature in the form of an island paradise. The newly designated free trade port of Hainan and Beijing’s aptly named Master Plan strive to usher in a new center for global trade and investment for the island-province.
What Ant’s IPO Flop Means for China’s Consumer Finance Industry
In the run-up to Ant Financial’s behemoth IPO, the fintech giant's suspiciously light balance sheet triggered the release of draft rules by Chinese regulators that would significantly impact the firm’s operating model. Consequently, Ant’s IPO was delayed, and investors went home disappointed. While regulators’ concerns were not unfounded, the consequences of these new regulations resurface big questions about the future of China’s consumer finance industry.
- Industry |
Ready Player China: China’s Growing Gaming Market
Despite its history of strict regulation against the industry, China’s gaming market is flourishing. Chinese MMOs and RPGs are topping lists around the globe while high-quality cross-platform releases, along with creative marketing through films, eSport competitions, and livestreaming, have set the tone for China’s growing gaming market for years to come at home.
Reducing Coal Consumption in China Requires Sweeping Reform
To achieve its goal of carbon neutrality by 2060, China needs to ditch coal-fired electric power plants for renewable alternatives. However, doing so will require dismantling an antiquated system of incentives that are in place for local officials and power producers. Whether Beijing can summon the political will to overcome powerful vested interests opposed to these changes will be an important indicator of China’s capacity for meaningful reform.
Clear Waters and Blue Skies for China’s Economy in 4Q and Beyond
Following its first economic contraction since Mao Zedong held office, China has set precedent as the first major economy to return to growth. While the road to recovery has been riddled with bumps indicative of lopsided development, Q3 results, paired with well-targeted policy support, are painting a promising outlook for China’s development into Q4 and beyond.
Looking at Luxury in a Post-Pandemic China
Navigating the Chinese market had been challenging for international luxury fashion brands even before the pandemic, but shifting consumer trends in the world’s largest luxury goods market now threatens the bottom line for major brands worldwide. To remain competitive, luxury brands must identify the challenges within the market and restructure their China strategies around the culturally-charged consumer market.
Hooked on Healthy Living: China’s Craving for Vitamin Supplements
China’s rapid economic development and rising household incomes have enabled a broader consumer base to invest in a healthy lifestyle by means of vitamins and dietary supplements. While domestic brands compete via localized advertisements and low-price leadership, foreign brands still reign king in terms of luxury, quality, and prestige.
- Industry |
- Technology |
Driving to the Future: Beijing’s Bet on Autonomous Vehicles
Over the last decade, Beijing has spent billions of dollars developing AI technologies to become a global leader in autonomous vehicles. If domestic tech giants can lower the marginal cost of AVs, offer a safe and secure form of autonomous transportation, and secure full-scale adoption within the world’s largest consumer market, China will revolutionize the automotive industry and earn trillions in revenues.
- Policy |
Upgrading the “World’s Factory” Through China’s Fourteenth Five-Year Plan
China’s leaders are meeting in October to finalize proposals for the country’s fourteenth Five-Year Plan (2021-2025). As tensions with the US intensify and economic growth slows, Beijing is under pressure to produce a five-year plan that delivers its “Made in China 2025” ambitions on time and is likely to turn to increased state intervention in strategic sectors of the economy as a central tenet of the upcoming five-year plan.
Chinese Manufacturers Adapt to the New Landscape of 2020
China built its economic engine on the back of its strong manufacturing capabilities. However, 2020 has presented unique challenges for its producers as the nation contends with global trade tensions amid the pandemic fallout. While China’s manufacturing industry still may have a bright future ahead, Beijing and manufacturers will need to navigate the pitfalls on their road to recovery.
All articles loaded
No more articles to load
