The Chinese government has rolled out pilot programs of China’s central bank digital currency, or the digital yuan, to over 20 cities across China. However, the Chinese government has yet to indicate when the program could be expanded nationwide—though prior to the digital yuan’s national launch, China likely will need to formulate governing rules for the digital currency.
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April 6th, 2022
On March 5, the Chinese government released its 2022 budget (January 2022—December 2022). A guiding indicator for economic priorities in 2022, the budget contains financial support for central government functions, local governments, consumers, and enterprises alike. Government expenditures are projected at RMB 26.71 trillion ($4.21 trillion), an 8.4 percent increase from 2021. Broader tax relief, subsidies, and increased funding for local governments are indicative of efforts to achieve the...
March 31st, 2022
On March 18, President Biden and President Xi met for about two hours in a virtual meeting to discuss a broad range of issues. The official readouts on this meeting requested by President Biden were thin. From what we understand, President Biden pushed President Xi to follow the international consensus on not supporting Russia and not undermining sanctions imposed on Russia by the EU, the United States, the UK, Japan, South Korea, Singapore, Australia, and others. President Xi reportedly...
March 23rd, 2022
The Biden administration is at a crossroads with its China trade policy. China failed to meet its purchase commitments under the Phase One agreement, inflation is at an all-time high, and global supply chains continue to face pressure from the pandemic and the war in Ukraine. Strong political pressure exists on both sides of the aisle in Congress to address these issues and take action to compete with China on the economic and geopolitical fronts. The Biden administration’s actions relating...
March 23rd, 2022
Government procurement in China has been an ongoing challenge for American and foreign companies for years. Following an escalation in US-China tensions, China’s focus on domestic substitution in sectors seen as critical to supply chain security has continued to move forward. This is particularly prevalent in sensitive sectors, such as information and communication technology (ICT), healthcare, and advanced technology and equipment.
March 23rd, 2022
In early March, Beijing concluded the annual meetings of the 13th National People’s Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC). Both events made it clear that China’s top priority in 2022 is economic stability. In preparation for the annual meetings, central government leadership shuffles remained relatively stable in the first quarter of 2022. Most of the high-level personnel changes were either internal promotions or retirements. In addition, a number...
March 14th, 2022
China’s National People’s Congress (NPC) concluded its annual meeting on Friday. Policymakers at the seven-day session, which used to take place over two weeks before the pandemic, reviewed the government’s performance in 2021 and set the tone for 2022. Premier Li Keqiang closed out the session by presenting the annual Government Work Report. The report, together with additional side meetings during the session, indicates China’s goals in areas including economic development, trade, and the...
March 11th, 2022
The world is a different and more dangerous place than it was two weeks ago when I last shared thoughts with you. The bilateral US-China relationship is made even more difficult as a result of a surge in COVID-19 in China and China’s support of Russia. I want to give you a sense of the volatility ahead and the need to prepare. COVID-19 is surging in all of the countries surrounding China. Hong Kong is a particularly relevant case study. As the percentage of asymptomatic cases is very high,...
March 9th, 2022
Corporate social responsibility (CSR) in China is an evolving practice. Before the early 2000s, it was not common for companies to report extensively on or publicize their CSR initiatives. Now, with China’s new focus on decarbonization and common prosperity, many companies in China see CSR initiatives as both an important part of their business strategies and a societal obligation. Within this new environment, foreign companies are finding it easier to carry out CSR in China as the Chinese...
March 9th, 2022
On January 12, the State Council unveiled its 14th Five-Year Plan to boost China’s digital economy, which aims for the digital economy to reach 10 percent of China’s total GDP by 2025. For reference, the digital economy represented 7.8 percent of GDP in 2020. To achieve the national target, major provincial players, notably Zhejiang, Guangdong, Shenzhen, and Shanghai, have added their unique touches in developing digital economy strategies and rolled out several policies and regulations that...
