Sinolytics Radar News • China.Table

In an attempt to ease the strained relationship with the West, China is trying to move away from its wolf-warrior diplomacy. In large parts of the world, however, the perception of the People's Republic has remained largely positive during the pandemic years anyway. continue reading →

The chip industry has long had a geopolitical dimension due to the technological rivalry between the USA and China. If anything, this will increase in 2023. continue reading →

It remains uncertain how fast China's economy will recover throughout the year. Consumer confidence has been damaged by the strict Covid policy. Ideology-driven policies could further inhibit growth. continue reading →

China's leaders cannot afford to ignore foreign capital in 2023 either. Foreign-invested companies still account for one-fifth of commercial economic output, and thus remain important for development. continue reading →

In December 2022, China’s newly added “Total Social Financing” (TSF) declined significantly compared to the same period in 2021. Although China lifted its strict three-year-long zero-Covid policy in early December, the momentum for China's economic growth remained relatively weak so far, signified by the slow credit growth. continue reading →

Since 2020, the Chinese government has strengthened its regulation of the real estate sector and issued “three red lines”, aiming to lower the high debt ratio of real estate companies and reduce the economic reliance on the real estate sector. However, the largest companies failed to reach this target. Reasons include weakening purchasing demand and operational difficulties primarily caused by strongly restrictive policies during the economic downturn. continue reading →

Workers are being laid off as China's tech sector is struggling due to the country's weak economic performance in recent times. Throughout 2022, Chinese tech companies have faced a decline in revenues and profits, resulting in cost-cuts in form of massive layoffs. The tech sector's crucial importance as a massive job generator for China’s educated youth makes this a particularly concerning development, especially since industry expectations indicate that the trend will continue in 2023 as well. continue reading →

China’s Ministry of Industry and Information Technologies (MIIT) has recently issued new regulations mandating companies to step up their data management practices. The new rules emerge at a time when data is hailed as “the most active new factor of production” in China’s digital economy. Data security has become a decisive building-block of a broadened understanding of China’s national security continue reading →

Amidst mounting social frustration and protests and record-low Q4 economic data, China’s government further relaxed its Covid control measures with the 7 December announcement of the “ten new measures” – a 180-degree turn-around from the “doubling down on zero” strategy less than a month ago. This abrupt exit from Zero-Covid has already led to a hike of positive cases in Beijing and other major cities, over-priced cold medicines and over-stretched medical resources. continue reading →

The crackdown on tech companies was a clear signal to China's super-rich that even their power has limits. On the other hand, many super-rich retain close relationships with the political elite. And the state needs them to provide growth and employment. continue reading →

The Social Credit System Establishment Draft Law reiterates the focus of the Social Credit System on companies and their compliance performance. Nonetheless, the System also covers several other legal persons, most significantly individuals and government organs. The level of impact on individuals strongly depends on their profession. continue reading →

The draft of the “Social Credit System Establishment Law” confirms the key purpose of the Social Credit System: To achieve integrity and trustworthiness of market players. Across all players, companies are by far most affected. It is likely that significant time will pass until the Social Credit System Law itself will come into effect. However, all areas outlined by the draft law are already covered by legally effective rules and regulations. and impact companies with registered entities in China. continue reading →

While the geopolitical focus on China currently revolves around US-China tensions, semiconductors and Covid restrictions, China’s central bank has been silently pushing another project of potentially geopolitical significance. Since 2020, the People’s Bank of China (PBoC) has been conducting trials for a “Central Bank Digital Currency” (CBDC), experimenting with various e-CNY digital payment applications for restaurant, entertainment and public services. However, whether this centralized solution can aid China’s ambitions to influence international payment systems remains in question. continue reading →

The planned investment of COSCO in the “Tollerort” Terminal of Hamburg’s port has raised a multi-faceted discussion about Chinese investments in European infrastructure. One of the points of debate is the question of reciprocal opportunities for foreign investors to invest in Chinese terminal operation. Currently, at least 34 port terminals in China have one or more non-mainland investors. continue reading →

At the 20th Party Congress, China's President Xi Jinping expressed his strong focus on national security as the central objective of policymaking. Therefore, it is expected that national security issues will increasingly take precedence over growth in the country's future economic policy. This is also likely to affect foreign companies. continue reading →

Already in 2017, authorities like the Cyberspace Administration of China (CAC) and the Ministry of Industry and Information Technology (MIIT) jointly issued the first catalog of critical network and cybersecurity products. Companies that sell the products listed in this catalog need to obtain additional security certification or undergo testing. So far, however, mostly domestic companies underwent certification. continue reading →

China’s zero-Covid policy is criticized due to its unsustainability in maintaining normal social activities and the damage it causes to economic growth. However, at this point, the government faces a real dilemma regarding whether to relax Covid restrictions. The low vaccination rate among the elderly population plus an insufficient level of medical treatment capacity could translate into disastrous death rates if dropping the current covid measures. Therefore, it is highly improbable that existing covid restrictions will be removed in the short term. continue reading →

The underlying logic and pattern of opening and closing market segments in China is one of the most fundamental realities foreign companies are confronted with in the Chinese market. While in their respective detail all markets develop differently, the overarching pattern of industrial policy interventions has been applied to numerous industries in the past and present. continue reading →