Tag: China

China is grappling with a worsening population crisis, as rapid aging and declining birth rates threaten long-term demographic stability. Younger generations are increasingly rejecting marriage and parenthood, prompting the Chinese Communist Party to implement aggressive pro-birth policies. A nationwide campaign aims to boost fertility, introducing incentives such as childcare subsidies. At ‘Two Sessions’, Premier Chang outlined government plans to reverse the trend through financial and structural support for families. Simultaneously, the National Health Commission launched the 2025 Population High-Quality Development Initiative, mandating local health commissions to devise comprehensive fertility measures. Running from March to October, this effort seeks long-term solutions to sl...

China is likely to witness continued capital outflows in the near future, though the scale may be smaller compared to earlier periods of significant financial decline. Historical records indicate that during 2015-2016, the country faced an average annual capital account deficit of $300.6 billion, representing a particularly severe phase. Between 2020 and 2024, the deficit averaged $216.9 billion annually, reflecting a slight improvement but still posing challenges. Experts attribute these outflows to subdued consumer demand and uncertainties arising from global monetary policies. Furthermore, the increasing prominence of digital assets and cryptocurrencies has created new pathways for capital flight, urging the central bank to adopt robust regulatory frameworks. Alarmingly, 2024 witne...

China is rapidly emerging as a global leader in artificial intelligence (AI), leveraging its vast data resources, government-backed initiatives, and a highly competitive technology sector to challenge the dominance of Western tech giants.  Beijing’s aggressive push into AI has fuelled a high-stakes global showdown, with the United States and other nations scrambling to keep pace.  While AI dominance could secure China’s place as the world’s foremost technological power, it also poses significant risks—both for its domestic workforce and for global economic stability.  Experts warn that while AI promises unparalleled efficiency and innovation, it may also exacerbate mass layoffs at home and deepen geopolitical tensions abroad.China’s data advantage: The fuel for AI s...

The People’s Bank of China (PBOC), China’s central bank, finds itself in a challenging and delicate position as it grapples with the declining value of the Chinese yuan.  For years, Xi Jinping’s administration has aimed to elevate the yuan’s global status, positioning it as a potential challenger to the dominance of the US dollar in international trade and finance.  However, the current situation has complicated these ambitions.  The yuan’s ongoing depreciation is not just an economic issue but also a political one, undermining the goals set by the Chinese leadership.  Donald Trump’s election has further complicated Beijing’s already challenging policy landscape.  Even before Trump won the presidency, the PBOC was grappling with a difficult polic...

China on Wednesday revealed a guideline, outlining 20 measures to expand financial opening up in the country's pilot free trade zones and a free trade port. These measures, focusing on six areas, aim to better align China's financial sector with international standards and advance institutional opening up of the sector, said the guideline jointly issued by the People's Bank of China, the Ministry of Commerce and three other government bodies. According to this document, foreign financial institutions will be granted the same treatment as their Chinese counterparts when providing new financial services not available in the country at that stage. Valid applications filed by financial institutions and cross-border financial service providers concerning financial services will be...