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.
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.
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.
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.
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.
China is massively invested in the digital transformation of its cities. With the nation’s top-down approach towards urban development, it has been able to efficiently rally its industries and resources to support its national goal of developing smart cities. By use of public-private partnerships and the promotion of targeted technological innovation, China has developed smart city infrastructure that has already been applied to many of its major metropolises and their industries.
Chinese tech giant NetEase Inc. announced a spin-off of Cloud Village, its mobile music streaming service subsidiary, in late May. With a cult-like community that boasts strong user engagement and its unique Music Talent Initiative, Cloud Village stands out among digital music platforms. The company’s IPO proposal comes amid a crackdown on Tencent, the champion of China’s music streaming market, which offers a potential inroad to Cloud Village’s future growth.
China is both the world’s largest consumer of seafood and largest producer of farmed fish. As incomes rise and consumer demand for seafood grows, overexploitation in the fishing industry is on track to become a major global issue. In this article, we explore how China’s aquaculture industry can adapt to ensure a high value yet environmentally sustainable end product.
Key industries such as construction and manufacturing have been pinpointed as weak links in the future Chinese economy. With an imminent aging population crisis on the horizon, Beijing has unveiled a new three-child policy that supersedes the current two-child policy. The question remains, ‘can the three-child policy really fix this issue or are policymakers too little too late?’
From the introduction of a sweeping national security law to a major overhaul of the city’s electoral system, Beijing’s hardline approach against Hong Kong’s democratic underbelly has largely been driven by national economic interests. Foreign companies will find that they are still welcome in the city as long as they comply with the new laws of the land.
Easy access to credit, a key pillar of China’s recovery, has helped lift the economy from the pits of the pandemic; however, cracks are beginning to show. Policymakers are now shifting their gaze towards systemic issues that could hinder the economy’s long-term recovery – and an unprecedented domestic credit boom is at the top of the list. Yet, as new monetary policy takes hold, many wonder if Beijing has introduced the very economic instability that it sought to avoid.
In the halcyon days before the pandemic, when headlines were dominated by the mundane trials and tribulations of the US-China trade war, China enacted a sweeping new Foreign Investment Law as the worst of the hostilities began to die down. The regulations enshrined in this high-level law provide many of the concessions that the US and other G7 nations with investments in China had long been clamoring for, but also contain provisions to review foreign investments for national security concerns.
As he undertakes a thorough review of Trump’s China policies, President Biden is expected to formulate a China strategy that puts American interests first and strengthens US competitiveness in the global market. While he maintains that his administration will take a different path than his predecessor, there is no doubt that heated competition is on the horizon – and TikTok may find itself at the forefront of the battle.
China’s economy has made an impressive recovery since the onset of the pandemic, and the stringent health measures and targeted economic stimulus enacted by Beijing’s top leaders have been remarkably successful. However, with policymakers now beginning to phase out centrally-backed economic support, some are voicing concerns that a premature rollback could threaten an already reeling global economy.