China Policy Institute Blog

One small link for Shanghai and Hong Kong is a big opportunity for the Chinese economy

Written by Shujie Yao. A direct link has been established between Hong Kong and Shanghai’s stock exchanges. The so-called Stock Connect means investors in Hong Kong can now buy shares listed on the Shanghai Stock Exchange via their local brokers and vice versa. This is a milestone moment for China as it further opens the …

China and the new regional order

Written by Mark Beeson. The region’s diplomats and leaders have been earning their money over the last few weeks. Or they have, at least, if their preferred key performance indicators are meetings attended, photos posed for, and hands shaken. Even Xi Jinping and Shinzo Abe managed a tepid clasp, albeit one accompanied by gritted teeth. …

Fashion victims

Written by Chun-Yi Lee. On 19 September 2014, Apple launched the iPhone 6 globally. From the long queue in front of Apple’s flagship store in Covent Garden in London, it is obvious that the iPhone still grabs many people. Meanwhile, Sacom issued a public announcement disclosing the drudge-like working conditions of Chinese workers labouring to …

Foreign Investors and Chinese ‘A’ Shares

Written by Samuel Beatson. Foreign investors were granted access to the tradable ‘A’ shares of Chinese listed companies from the introduction of the QFII scheme in February 2002, with practical instigation on 23 May, 2003, officially introducing foreign institutional investor ownership in the ‘A’ shares of domestically listed Chinese firms. One of the aims of …

A geographical perspective on the ‘China model’

Written by Kean Fan Lim. Along with China’s expanding economic influence are growing debates on the nature and feasibility of the ‘China model’ (中國模式). Similar to debates accompanying the ascendency of the Japanese economy in the 1980s, the contemporary focus on the ‘China model’ presupposes the existence of a different – and seemingly static – regime …

Xi’s Impossible Trinity – Innovation, Anti-Corruption and Political Stability

Written by Lauren Johnston. In economics the impossible trinity describes how governments can set only two of three macroeconomic policy variables, even if they are all independently desirable. Those three variables are fixed exchange rates, independent monetary policy and free movement of capital. Amid calls from former Chinese leaders Hu Jintao and Jiang Zemin that President …

Taiwan’s Unresolved Vision of Globalization

Written by Erik Tollefson. The current protests in Taiwan can plausibly be seen as the concatenation of several issues: 1) a crisis of democratic governance; 2) an extant political struggle between the ruling and opposition party; 3) an unsettled economic vision of the nation’s future. Copious ink has (rightly) been spilt on the myriad dimensions …

Pursuing mutually incompatible goals: Resilient SOEs, Leading Small Group, and the Market

Written by Yukyung Yeo. The long-anticipated third plenum of the 18th Central Committee closed with two ambitious goals to achieve. According to the plenum communiqué, Chinese leaders once again desire to deepen reforms toward market-oriented economy, yet under the predominant status of SOEs in the market. A “Leading Small Group for Deepening Reform” (shenhua gaige lingdao xiaozu) …

China Continues Its Grand Experiment

Written by Zhengxu Wang. The Chinese Communist Party’s Central Committee closed its Third Plenum on Tuesday, an event eagerly anticipated by the public and press. Right before it convened, the party’s propaganda outlets had played up the expectation that major policy breakthroughs would come from the gathering. Even Xi Jinping, the party’s general secretary and …

What next for the Dollar and RMB? Seeking Clues in the US and China’s Past

Written by Niv Horesh. London’s grooming as the launch-pad of the RMB, China’s currency, into becoming the next global reserve currency may merely be on the drawing board. Yet, coupled with the recent fiscal shutdown in the US, some insecurity about the long-term future of the US$ could perhaps be felt for the first time …