“Trade wars are easy to win,” says US President Donald Trump. US-UK trade historian Marc-William Palen disagrees. In this interview, Palen, author of The “Conspiracy” of Free Trade: The Anglo-American Struggle over Empire and Economic Globalisation, 1846-1896, and senior lecturer in history at the University of Exeter (UK), argues that US politicians’ pursuit of trade wars in the 19th and 20th centuries yielded mostly short-term political gains for themselves and high, long-term economic and strategic costs to their country.
China’s logistics industry is on the fast track to a bright future. The country’s delivery firms are already posting impressive growth figures, and rapidly rising consumer spending is set to send demand soaring further. Read our infographic to learn more.
By 2045, there will be nearly 350 million people in China aged over 65. The rapidly aging society is the legacy of a huge baby boom that was abruptly halted by the introduction of the one-child policy in 1979. Over the long term, this trend threatens to drag on economic growth. There were five Chinese taxpayers for every senior citizen in 2010; by 2030, there will be just two. But for businesses that stay ahead of the demographic curve, there will be big opportunities—another 200 million new customers. Slowly but surely, digitally-savvy seniors are changing the game for brands in China.
For a company whose software speaks to more than half a billion people, iFlytek tends to keep its voice low. Founded by a group of researchers in 1999 and headquartered in the relatively sleepy eastern city of Hefei, the company was ranked as the 6th smartest firm in the world in 2017—just one place below Google—by MIT Technology Review. Over the past two decades, iFlytek developed software that can understand several Chinese dialects fluently—a feat Apple’s Siri still struggles with. It can transcribe it into text, and translate it into English instantly. In this interview, Jiang Tao, Senior Vice President of iFlytek, who joined in the firm at the very beginning, explains how the company reached this point and how it keeps hold of its world-class researchers.
Chile’s Atacama Desert is one of the most inhospitable places on earth. Situated 2,300 meters above sea level and encircled by mountains, the region receives almost no rainfall and the blinding sun singes exposed human skin within minutes. But 40 meters below the salt flats lie our planet’s largest and purest reserves of the chemical element lithium. Lithium, the lightest of all metals, has the best electrochemical potential. This makes it perfect for rechargeable batteries, a technology that powers our smartphones and is expected to become even more crucial in the future. Now, a Chinese firm is attempting to gain control of the Atacama reserves.
China posted its first overall quarterly current account deficit in 17 years in the second quarter of 2018 as growth in imports continues to outpace exports. Meanwhile, the value of Chinese domestic bonds held by overseas institutions has increased 68% in the past year and that means nearly 6% of Chinese government bonds are now held by foreign investors. Domestically, the number of lawsuits related to online music streaming in China leaped from 20 in 2014 to 535 in 2016 as providers try to enforce exclusive deals with artists. Find out the most important and interesting news here in the China Data section.
The World Bank estimates that up to 77% of jobs in China could be made redundant by machines in the long term. Investing in robots will become more attractive for manufacturers. The Chinese government also pledges to make China a “world factory” of robots. But real changes are much slower. Reports say that large numbers of workers are still used on production lines doing repetitive tasks such as scrubbing speaker systems with toothbrushes. Despite the fact that China’s labor costs are six times higher than 10 years ago, workers are often still cheaper than robots in short term.
For many years, China’s emerging companies, especially those in the internet sector, have relied on foreign capital. Alibaba and Tencent were nurtured by overseas venture capital, and were eventually listed abroad. These two companies have today become world-class giants. The market value of Alibaba was $495 billion as of late May, while Tencent’s valuation was $605 billion. This puts them among the world’s top 10 most valuable companies. The success of China’s leading tech companies is an understandable source of pride to many in China. But for China’s policymakers, a question presents itself: why do so many outstanding Chinese companies end up going public overseas?
Public companies are becoming rarer these days. In the US, for example, the overall number of listed firms has fallen by almost half since 2000. Global M&A could be one reason for this, because being a big firm is very important for many industries and getting internal growth is more difficult than associating with a big company. Meanwhile, stricter rules for public offerings also discourages IPOs these days and the rise of active investors has made venture capital big enough to support unicorns. How will corporate ownership evolve from here? What impact will this trend leave on the economy and society?
The rise of e-commerce has long been touted as a threat to shopping malls and bricks-and-mortar stores, with consumers preferring the ease and convenience of shopping online. But while e-commerce has made serious inroads into certain goods and services, sectors such as fresh food remain stubbornly resistant, even in China, one of the most eager adopters of e-commerce in the world. The country’s internet giants are moving toward a new model, what Alibaba Chairman Jack Ma calls “New Retail” — an integration of online with the offline world that e-commerce was supposed to cannibalize.