China economy

China economy

Breaking news and analysis on China’s economy, including its opening up, the US-China trade war, the impact of tariffs and trade talks, growth rates and other key economic data, the Belt and Road Init

iative, and Greater Bay Area plan.

China’s leader seeks to rally private business to the Communist Party’s cause
President Xi Jinping has told China’s private entrepreneurs they are a key part of the nation’s “socialist market economy” as the Communist Party seeks to rally the private sector amid the ongoing tensions with the United States.  Xi’s message was delivered on Wednesday, a day after the party released a policy that ordered the private sector to help meet the nation’s strategic goals as it faces an increasingly hostile external environment. “It is critically important to promote the healthy development of the non-public economy and the healthy growth of people in the non-public sector,” Xi said, according to the official news agency Xinhua. The president urged the United Front Work Departmen
China’s Covid-19 epicenter gets back to normal, but can't hide the trauma
When Wang Dandan moved to Wuhan for a job managing a newly built hotel last summer, she could never have guessed the front-seat view she would have of the city’s battle against the coronavirus. After the severity of the outbreak became clearer and authorities sealed off the central Chinese city on January 23, her hotel became the sleeping quarters for medical professionals deployed across the city. Thanks to its proximity to two major hospitals, the hotel was soon abuzz with doctors and nurses at the initial epicenter of the crisis. The lobby of the hotel is still decorated with silk banners sent by visiting medical teams expressing gratitude for the hospitality. But nearly 150 days after th
China’s pensions gap forces rural peasants to labor into old age
In most parts of rural China, the elderly must continue to rely on their own labor, their children or their savings to support themselves in their twilight years. Chen Yunfeng, the chief of Yancang village in central China, has grown dismayed by the disadvantages that aging rural peasants face. “We plant grains, but grains are cheap,” Chen said while puffing cigarettes under a no-smoking sign in his little office. “And we are getting old, but there’s little welfare.” According to Chen, who is in his late fifties, a peasant from the village can receive a monthly pension of just 112 yuan ($16) after the retirement age of 60 – a tiny sum that is well below the average daily wage in Chinese citi
How young women are powering China’s consumption growth
Young women dubbed “little sisters” are fast becoming a driving force of spending in China, boosting the fortunes of companies selling everything from beer and liquor to streaming services and cosmetics. They are well-educated and are delaying or just skipping marriage and motherhood, giving them more money and the confidence to spend. Meanwhile, they see themselves reflected in popular TV shows – like the Chinese summer hit Sisters Who Make Waves – that encourage them to splurge on themselves. As such, they are an increasingly important segment of China’s female consumers, who among all age groups account for three out of four purchases in the world’s most populated country, according to a
Pick a side: Hong Kong national security law poses dilemma for foreign firms
Foreign companies operating in Hong Kong are facing a delicate decision as they digest the details of the city’s controversial new national security law: abide by the rules or support US sanctions against China for imposing the legislation. Company insiders and diplomatic sources said it was too early to assess the impact of the law on business in the financial hub. But its vague language and broad provisions have stoked fears and may result in “huge insecurity” for foreign firms – particularly a clause stating any person or organization that imposes sanctions could be punished. They said the legislation could be a wake-up call for businesses to re-evaluate their engagement with China, and i
Beijing wants to turn the ‘Chinese Hawaii’ into a trade hub to rival Hong Kong
China has unveiled plans to turn its southern island of Hainan into the mainland’s answer to Hong Kong or Singapore, as it tries to dampen the risk of decoupling with the United States. Beijing on Monday outlined a package of special policies to make the tropical island a free-trade port by lowering the income tax rate for selected individuals and companies, scrapping import duties and relaxing visa requirements for tourists and business travelers. The island province of 9.5 million people will also enjoy freedoms in terms of trade, investment and the movement of people and data, according to the plans. The project to create a regional trade, shopping and shipping center in Hainan – which at
China looks inwards as it plans for economic ‘worst-case scenario’
China is turning inward and looking to its domestic market, rather than international trade, to revive its economy in what has been described as preparation for a “worst-case scenario” that might see it decoupling from America and the rest of the West.   President Xi Jinping told dozens of top economic advisers in Beijing over the weekend that China was pursuing a new development plan where “domestic [trade] circulation plays the dominant role.” “For the future, we must treat domestic demand as the starting point and foothold as we accelerate the building of a complete domestic consumption system, and greatly promote innovation in science, technology and other areas,” Xi said in comments pub
Beijing abandons 2020 economic growth target
In a break with the past, the Chinese government will not set a target for its economic growth this year, Premier Li Keqiang said on Friday. The decision underscores the uncertainty facing the world’s most populous country brought on by the coronavirus pandemic and worsening US-China relations.  Li announced the decision during the opening session of China’s annual parliamentary gathering, which was delayed for two months due to the Covid-19 outbreak.  China has set a hard target for its gross domestic product growth every year since 1994. Li attributed the move to scrap the 2020 target to “the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment.”
‘The public is still fearful of the virus’: Wuhan faces long road to recovery
When Kang Wei landed a job with the local government in Wuhan last month, he believed his luck had finally turned. “I thought it was under a government bureau and would last until the end of the year,” he said. The migrant worker in his thirties had left his home in Huanggang in the central Chinese province of Hubei last year, heading to the provincial capital Wuhan to look for work. He then spent two months under lockdown as the city fought the Covid-19 outbreak, before joining the long lines outside businesses in the city looking for work before landing a job patrolling farms and villages to look for illegal structures. But as it turned out, the job lasted only a week before it fell victim
China’s poorest are battling to survive
Li Ming, a 36-year-old marketing manager for a car company in Beijing, is feeling the pinch for the first time in her life. When the coronavirus outbreak started, car sales slumped and she was furloughed from her job in February. To make matters worse, her husband, who works for an airline, has also had to take a 40% pay cut. “Suddenly half our household income evaporated,” Li said. “I haven’t had a decent sleep for months. We have a mortgage to pay and two children. They are a heavy burden now.” Li was able to save 12,000 yuan ($1,700) a month by firing the family’s domestic helper. “I explained and told her not to come back after the Lunar New Year holiday, which she was spending with her