Economics
中国经济改革与外国专家的作用
I am a policy wonk. I have spent my entire professional career (first in the Government of India and then in the World Bank) watching up close how policy choices are made, how political processes play out and on how institutions and people form coalitions for or against any change based on their incentives. I have also worked in China for close to 8 years, and like so many before me, have fallen in love with the beautiful country, its people and civilizational depth and continue to be amazed at the sheer pace, scale and energy of the massive changes the country has undergone, lifting more than 800 million of its citizens out of poverty.
I just finished reading a majestic book entitled “Unlikely Partners: Chinese Reformers, Western Economists and the Making of Global China” that, in a sense, brings the two parts of my professional work together.
It chronicles in exquisite detail (including 88 pages of notes!) the ideological battles over the course and pace of economic reform in China after the death of Mao Zedong and the immensely positive role played by Western advisers in this process. The astonishing success of China that we take almost for granted today was, by no means, a sure thing. And the remarkable openness to external ideas and their willingness to experiment and adapt these to the Chinese context played a strong part in this success. The World Bank plays a prominent role throughout this journey starting with the April 1980 meeting between Deng Xiaoping and Robert McNamara. The Bank, in addition to producing the first set of comprehensive country reports for China, involving extensive fieldwork and unprecedented access to hitherto secret data, played a crucial convening role, calling upon the top global experts to advise the Government of China on difficult and politically treacherous issues like price decontrols, urban and industrial reform and the reform of state owned enterprises in a series of strategically timed meetings and high-level conferences. Perhaps the most prominent of these was the now famous September 1985 Bashan river cruise conference, in which for a week top Chinese officials sailed along Yangtze River discussed the nuts and bolts of economic reforms with the finest economic minds of the time like James Tobin and Janos Kornai. Several key economic policymaking figures in China today (like current PBC Governor Zhou Xiaochuan) figure prominently as young reformers of the time.
A personal connection for me in the book is the towering presence throughout of Edwin Lim, a former World Bank Country Director of China and later India. I worked with Ed as a rookie Ministry of Finance official in India in the late 1990s. I remember him as a very strong personality with an unwavering commitment to India’s development and a top-notch intellect. Ed looms large in the Bank’s early relationship in China’s reform process, starting from the first Bank mission and report in 1983, through the organization of the Bashan…
Business
International Aquarium Conference Shifts from Mexico to China: A Global Focus
Wuhan’s HHAn Polar Ocean Park successfully received the IAC flag, marking the 2027 event countdown. The city aims to promote aquatic research and biodiversity conservation through an upcoming science education museum.
Success of the Flag Handover Ceremony
The International Aquarium Congress (IAC) celebrated a significant milestone on November 1, 2024, in Guadalajara, Mexico, with the flag handover ceremony for the upcoming 13th IAC in 2027. This event, often dubbed the "Olympics of the Aquarium Industry," marks the return of the IAC to China for the first time since 2008. HHAn-Wuhan Polar Ocean Park received the flag, highlighting Wuhan’s prominence in aquatic research and conservation.
Wuhan: A Hub for Aquatic Research
Wuhan stands out as a leading center for aquatic organism research, housing the largest cluster of related institutions in China and globally. Its selection as the first inland city to host the IAC emphasizes its rich scientific heritage and commitment to environmental sustainability. The city’s advanced research capabilities and dedication to biodiversity make it an ideal venue for such a prestigious event.
Commitment to Environmental Education
Tan Wencheng, General Manager of HHAn-Wuhan Polar Ocean Park, expressed the park’s dedication to supporting Wuhan’s growth over the past 13 years. As a key urban tourism landmark, the park plans to construct a 2,000-square-meter science education museum focusing on Yangtze River aquatic organisms and ecological protection. This initiative aims to foster public understanding and appreciation for aquatic biodiversity and drive conservation efforts in the region.
Source : Global Spotlight on International Aquarium Conference as It Moves from Mexico to China
Business
CCPIT Reports 90% of Foreign Firms Surveyed Are Satisfied with China’s Business Environment
A CCPIT survey reveals 90% of foreign firms find China’s business environment satisfactory, with growing optimism and increased investment plans, particularly among European companies, primarily in eastern regions.
Positive Business Sentiment in China
The China Council for the Promotion of International Trade (CCPIT) recently reported that 90% of surveyed foreign enterprises consider China’s business environment "satisfactory" or better. Their findings, shared during a press release in Beijing on October 31, revealed rising optimism among European and U.S. companies regarding market conditions for 2024.
Increasing Investment Willingness
Approximately 20% of the foreign firms surveyed indicated plans to increase their investments in China, marking a 2.07% rise from the previous month. Notably, European companies displayed heightened interest, with a 2.5% increase. The eastern region of China emerged as a preferred investment area, with 59.52% of firms looking to expand production lines or enhance digital transformations.
Commitment to Support Foreign Businesses
CCPIT spokesperson Sun Xiao emphasized the importance of improving services for foreign-invested enterprises. With a focus on enhancing market access and closing procedures, the council aims to better serve the needs of these businesses, fostering a conducive environment for foreign investment in the country.
Source : 90% of surveyed foreign firms are satisfied with China’s business environment: CCPIT
Business
US Enacts New Investment Restrictions on AI and Semiconductor Technologies in China
The US has implemented regulations restricting investments in key technology sectors in China, citing national security risks, particularly concerning AI and semiconductors, following President Biden’s previous executive order.
US Investment Restrictions on Key Technology Sectors
The United States has implemented new regulations that restrict investments in crucial technology sectors in China, including artificial intelligence and semiconductors, driven by national security concerns. The Treasury Department’s announcement marks a significant change in the US stance on foreign investment in critical technologies.
Effective January 2, US citizens, residents, and companies will be barred from transactions involving advanced technologies. Investors must also alert the Treasury about investments in less advanced technologies that pose potential national security risks, reflecting a broader approach to safeguarding American interests.
These restrictions stem from growing worries about China’s technological capabilities and military applications. The move follows President Biden’s previous executive order to prevent US investments from unintentionally benefiting adversaries. As tensions rise, these regulations are expected to impact the global tech industry significantly.
Source : US implements new investment restrictions on AI and semiconductors in China