China’s industrial economy remains at the bottom of an L-shaped economic trend, according to the latest CKGSB survey of over 2,000 industrial firms nationwide. The survey, led by CKGSB Professor Gan Jie, shows that overcapacity and weak demand remain the biggest challenges for China’s industrial economy. The Business Sentiment Index, a major indicator of the survey, stood at 46 in Q2 2016, the same with last quarter, but still indicative of contraction. The BSI is the simple average of three diffusion indices including current operating conditions, expected change in operating conditions and investment timing.
The Fall 2016 issue of CKGSB Knowledge is out! It has articles and interviews like: COVER STORY: The Middle Minority: A significant new force is beginning to take shape in Chinese society CHINA DATA: From stats on robots to sports, and supercomputers to mining, the numbers you need to know SNAPSHOT: Special Delivery: China’s e-commerce industry delivers a new […]
Everyone in the world is concerned about how the Chinese economy is faring and understandably so. China’s linkages with the world mean that the health of the Chinese economy has a bearing on other economies as well. The CKGSB Business Conditions Index, based on a survey conducted each month, gauges business sentiment about the macro-economic environment among successful Chinese business executives. BCI registered 54.5 in August, slightly less than July’s 56.3. Corporate sales and inventory levels rose slightly.
In the early 20th century, the world managed to halve the number of people living in extreme poverty, yet the income inequality problem continued to grow and even became the source of tension between regions. In this interview, Tony Atkinson, a professor at the London School of Economics, talks about facing up to one of the defining problems of our time in his book Inequality: What Can Be Done? Atkinson studied poverty and inequality over four decades. He believes that inequality can only be solved through a concerted global effort and offers his views on how China, as a relatively opaque country, can work with global forces to alleviate poverty.
More Chinese students are studying abroad than ever before, here are the numbers. Chinese students are studying overseas in much greater numbers than ever before. Statistics shows that in 2014 alone, more than 459,800 Chinese students went abroad, heading to mostly the United States, Australia, Canada, the UK and Japan. Two-thirds of 4.5 million chose […]
China’s economy is facing many problems that are cyclical and also structural. Some economists believe China reached the Lewis Turning Point six years ago, where the growth benefits of rural-to-urban migration dried up and wage costs started to escalate. The growth of the Chinese economy relied very much on its cheap labor—a competitive advantage that has been exhausted. Simply put, “China has come to the end of the period of easy gains in GDP.” It faces two possible paths ahead: the hard road of structural reform and painful consolidation, and the easy road of fiscal and monetary stimulus leading inevitably to further problems along the way.
As one of the more influential components of the so-called “soft power” push, China’s film industry reflects the overall weak cultural impact of the whole. Even as economic ties multiply between China and the outside world, the flow of cultural exchange remains imbalanced. Chinese works, traditional or modern, consistently struggle to find the same acceptance abroad as Western works enjoy on the mainland. While money remains at the heart of China’s soft power push abroad, time is also required for fulfilling China’s creative potential—it’s going to be a long process towards change.
China is taking on some of the most expensive big science projects, for example, the world’s largest radio telescope and a particle accelerator that researches the world’s most elusive particles. Are these science projects only there to display the country’s monetary power or will they help to restore the country’s past glory of an ancient civilization with a high level of advancement? And will this make China a better place for scientists?
Doing business in China has never been easy for foreign-owned companies, but Uber has largely managed to avoid conflict by operating as a separate Chinese subsidiary, Uber China, on the mainland. However, Uber China still faces many challenges: competing with Didi, not being profitable, and even worse, its business has always been riding on a government regulation fence. In a market that is as challenging, and competitive as China’s, the answer to winning over China’s smartphone users lies deeper than just competitive pricing or partnerships.
Technology has helped demolish walls between different industries and many tech giants are investing in different sectors. LeEco stands out amongst its peers for its ambition and audacity, its ultimate ambition is to build an ecosystem through quick—and diversified—acquisitions and investments. The company has transformed from one focusing on just video content to one that makes smart TVs, smartphones and even cars and virtual reality headsets. Although many people doubt its capabilities, the company seems to be doing well financially. But what does the future hold? Will its audacious plans succeed?