Karen Fisher, Haiqing Yu
The digital economy offers new employment opportunities for China’s disabled people. Expanding the digital economy to include broader parts of the population combines the economic goal of China’s transition to a high-tech nation with the political imperatives of growth and social stability. This is the fourth part of a series based on a MERICS publication on social services in China.
Podcast with Alicia García Herrero
US President Trump and the Chinese leader Xi Jinping are expected to meet on the sidelines of the G20 summit in Argentina over the weekend. But there is little hope that the two leaders will announce an end to the Sino-American trade war, says Hong Kong-based economist Alicia García Herrero.
Interview with Mareike Ohlberg (via Young China Watchers)
The collection of citizens' personal data is a global issue, but China's social credit system is unique in its ambitions. Its uses range from assessing individual credit risks to forcing companies to comply with environmental standards, but also to discouraging dissenting political opinions. In this interview MERICS researcher Mareike Ohlberg describes China's struggle to define the standards for a nationwide system.
China’s electric vehicle (EV) battery industry is well positioned to be competitive in global markets. The industry’s strong performance results from state support of domestic manufacturers. As China’s EV battery manufacturers expand abroad, manufactures in free market economies are up against Chinese state-backed competitors.
Unrest over Chinese online financing platforms shows that the combination of unregulated market forces and uninformed individual decision making can lead to undesirable outcomes. Unless the CCP is willing and able to foster comprehensive reforms, events might again spiral out of control when new innovative financial solutions are introduced.
Despite much effort, China still has many problems achieving its goal of cyber sovereignty. But on the way towards independence, the country might achieve something else: cyber hegemony.
MERICS Guest Author Genia Kostka
Educated and wealthy urban Chinese have an overwhelmingly positive view of commercial and government-run systems that rate the “trustworthiness” of citizens, businesses and social organizations. Rather than perceiving them as instruments of surveillance, they see them as a way to protect consumers from food scandals or financial fraud – and to access benefits connected to a high social credit score.
Beijing will use the China-Africa Cooperation Forum to present China as a global power. US disengagement from and European disunity and indecision towards Africa help Beijing’s self-promotion as a reliable partner for African countries. For Europe, China can be a partner or competitor in Africa, depending on the issue.
China will have to sacrifice a portion of its growth if it wants to reduce its dangerous debt burden. Reducing credit growth will almost inevitably lead to an even higher reduction in GDP growth. This is a price the Chinese government is not yet prepared to pay, but it could be forced to act in the medium term if it wants to avoid a financial crisis.
Frank N. Pieke plans to build on MERICS' successful first five years as the institute's new director and CEO. The former head of the Leiden Asia Center and the Oxford China Center sees the Communist Party's transformation as the key to understanding China's global rise. At the helm of MERICS, Pieke and his deputy Mikko Huotari want to facilitate more coordinated information-sharing on China in Europe.
China’s foreign affairs expenditures may pale in comparison to the United States or Germany, but they grew at an unprecedented speed over the past 15 years. Even in the face of slower GDP growth and rising domestic obligations, China is likely to further scale up its spending to secure its influence in an increasingly multipolar world. This article is part 4 of a MERICS blog series on China’s new foreign policy setup.
China’s new development agency is designed to coordinate aid and prioritize strategic foreign policy goals over short time commercial interests. At the same time, the new agency institutionalizes a mercantilist model of development typified by the Belt and Road Initiative. This article is part 3 of a MERICS blog series on China’s new foreign policy setup.
The “Made in China 2025” strategy is supposed to align the global ambitions of the government and Chinese state-owned and private companies. If innovation is driven by strategic national targets rather than by profit expectations, it represents an export of China’s state-led economic system and a challenge to the affected industries and economies of industrialized countries.
Hong Kong and Singapore are the models for China's planned Free Trade Ports in Hainan and Shenzhen. But if the Pilot Free Trade Zones launched over the past few years are any indication, the new ports are unlikely to provide genuine economic freedom with free capital flows and legal certainty.
Caroline Meinhardt, Michael Laha, Rebecca Arcesati, Václav Kopecký
Europe’s cautious approach to developing emerging technologies is hampering its global competitiveness. The European Commission’s AI strategy falls far behind China’s ambitious blueprint in several key aspects, including funding, sector-specific policies, startup incentives, and talent attraction. This article is part 2 of a mini-series to present the outcomes of the MERICS European China Talent Program 2018.
There are many indications that China could suffer a second round of capital flight. Interest rates in Western economies are up, and Chinese savers don't have access to favorable rates at home. Fears of tax increases or currency devaluation are other factors that might drive wealthy Chinese to try to move their capital abroad and circumvent the government's strict capital controls.
At a time of rising protectionism, China is sending a signal of liberalization by lowering its import tariffs on cars. The unilateral move is only a first step if China wants to prove its commitment to the multilateral trading system. Sacrificing outdated protections can also help China’s transition towards a higher value-added economy.
The US president’s attacks on multilateralism may push Chancellor Merkel into an unlikely alliance with Beijing. Germany and the EU have to test ways to work with China in the absence of transatlantic coordination. The goal must be to organize an international pushback against destructive US trade policies.
The success of authoritarian innovation in China challenges liberal market theories. Technological innovation is no longer just driven by Silicon Valley-style capitalism, but also by technocrats in Beijing. China is proving to be a "red swan," as unforeseen as a "black swan" event. Its techno authoritarianism appears well suited for dealing with many megachallenges of the 21st century.
China is determined to become the globally-leading innovation center for Artificial Intelligence (AI). National industrial policies to promote AI are implemented at top speed at local and provincial level. In some cases, the local goals even exceed the national ambitions.
The Chinese government’s decision to pull Chinese nationals from international hacking contests should worry international IT companies. They stand to lose valuable information about security vulnerabilities in their devices and run the risk that exploits will be reported to the Chinese government instead.
From 5G networks to blockchain and electric driving: China has caught up to the forefront of new technologies that are based on artificial intelligence. Chinese companies benefit from state support for R&D, from internationally trained experts and from the sheer mass of data generated by 800 million internet users. Today’s innovation leaders in the United States and the EU would do well not to rest on their laurels.
Geoffrey Hoffman (via ChinaFile)
Censorship and surveillance versus a free and open internet: China's ideas of cyber sovereignty are incompatible with how liberal democracies define cyberspace. Despite these inevitable conflicts, the two models could coexist in relative peace as long as governments focus on the shared goal of cyber defense.
On her recent visit to China, Britain’s Prime Minister Theresa May got a foretaste of the difficult path ahead in carving out a new role for the UK on the world stage. Pressured to forge new trade and investment relationships with major powers like China, the UK might soon find out that it feels much less at home outside the EU than inside.