The People’s Bank of China reduced the five-year loan prime rate by a record amount in May, hoping that the cut will work to restore loan demand and get the property sector moving again. But will it be enough to help the country hit its economic targets for the year? Joe Cash investigates The Chinese economy is facing multiple headwinds. Not only is Beijing’s harsh zero Covid policy and the …
The zero Covid strategy is here to stay and companies are going to have to adapt to manage its unpredictability if they want to stay ahead in the market – but what is China’s end game? And what impact is it likely to have on real people as the policy drags on, ask CBBC’s policy team, Joe Cash and Torsten Weller. “Our prevention and control strategy is determined by the …
China’s harsh Zero Covid policy is putting huge pressure on the Chinese economy, with April’s data indicating a sharp downturn. The government wants to increase infrastructure spending and do more to help SMEs while also keeping employment stable, according to CBBC’s policy team, Torsten Weller and Joe Cash – so how likely are they to pull that off? Worries about the Chinese economy are mounting. Despite respectable growth of 4.8% …
The NSI Act pre-dates the end of the UK-China ‘Golden Era’, and should not be interpreted as the government seeking to make the UK less attractive to Chinese investors, writes Joe Cash The National Security Investment Act has received Royal Assent and been in force since January 2022. Long before the NSI Act became a topic for debate in Parliament, as the NSI Bill, the regime had attracted the attention …
This year’s Two Sessions shows the Chinese Government sticking to its traditional approach of supply-side reforms and limited stimulus, but its targets remain ambitious given the current headwinds and geopolitical challenges. What does it mean for foreign-owned businesses in the country? asks Torsten Weller This years’ annual plenary meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) – also called the Two Sessions (or …
How does China view the war in Ukraine? It poses many difficult questions for China’s diplomatic corps, writes Joe Cash. And while China is unlikely to intervene directly, its stance will still require careful diplomatic handling Vladimir Putin’s decision to invade Ukraine presents China with its biggest foreign policy crisis in 20 years. In a similar way to when NATO forces accidentally bombed the Chinese Embassy in Belgrade during the …
China is fast-tracking spending on new technologies like 5G, smart grids and renewable energy to support its position as a global leader in new technologies, writes Torsten Weller Ever since the Chinese government declared financial risk and soaring debt a key threat to the country’s stability in 2016, the country’s leaders have been reluctant to use large-scale monetary stimuli to shore up the slowing economy. Even the severe hit from …
In considering UK-China trade from China’s perspective, the UK appears to leave a lot to be desired as a trade partner, and the fact that the UK has not had a high-level trade dialogue in recent years is starting to set it apart among its peers, writes Joe Cash The prospect of UK-China trade talks recently caused a furore in Parliament. The notion that the government would want to resume …
In 2021, China recorded a historical trade surplus of £500 billion. But trade balances vary across regions, with trade surpluses and minuses highly concentrated in a few provinces, writes Torsten Weller China has long been seen as the ‘workshop of the world.’ This ‘moniker’ has become even more justified during the Covid-19 pandemic, when most developed economies in the West shut down during lengthy lockdowns. Factory closures in other export-oriented …
Chinese tax authorities have vowed to crack down on tax evasion by celebrities and online influencers such as Fan Bingbing and Viya, but they’re also keen to reduce taxes and fees for businesses and SMEs, writes Torsten Weller One of the most visible expressions of China’s new ‘Common Prosperity’ policy has been the stricter enforcement of individual income tax violations. In December 2021, Chinese tax authorities fined live-streamer Huang Wei …