To unlock its economic growth potential, China is relying on unregulated competition between regions, along with an irresponsible over-adherence to old ways of operating, according to a prominent political scientist who also calls for greater economic integration with neighboring countries. need to be addressed.
In an article published Wednesday, central government advisor Zheng Yongnian also called for “reestablishing” Hong Kong’s role as an international financial center as he assessed the challenges in revitalizing China’s economy.
“Shanghai as a financial center contributes to our stability, but Hong Kong, Shenzhen and Guangzhou should serve as bridges to financial services that help them compete with Wall Street,” said think tank Qianhai Institute of International Studies. Director Chung said. It is based in Shenzhen, just across the mainland border from Hong Kong.
China aims to revitalize its sluggish economy, which has struggled to show a strong recovery in the post-pandemic environment, but growth has been hampered by U.S. trade restrictions and calls to avoid risks from China in supply chains. is being held back even further.
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Mr. Zheng urged China to make new advances, including by increasing its willingness to “be more open and commit to higher quality terms” in negotiations with the Association of Southeast Asian Nations (ASEAN) to improve established trade agreements. He advised them to cultivate momentum for growth.
“Our supply chain and industrial chain are expanding, and we should aim to build a common market with ASEAN in the future,” Chung said.
Domestically, while the Chinese government is eager to stimulate the economy and boost investor confidence through policies aimed at unlocking spending potential and easing real estate regulations, Mr. expressed concerns about the implementation of the policy.
“While the central government has put in place as many policies as possible to support private enterprise, there is a lot of questionable implementation when implemented at the local level, and some local practices are contrary to these policies. “There are,” said Chung. .
“Bureaucracy and red tape remain prevalent, and some government departments are unwilling or unwilling to take responsibility, making it difficult for policies to deliver results,” he said. added.
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Li Qiang vows ‘realistic’ cooperation with ASEAN to reassure neighbors
Chung said examples of unhealthy competition between local governments desperate to boost growth include trying to prevent companies from moving to other provinces and making behind-the-scenes deals to meet investment goals. He said that this includes attempts to do things like
Referring to the Chinese government’s development outlook to make the flow of domestic production factors more efficient and smooth, Zheng said, “Local protectionism is returning, and if this trend is not reversed, the unified “The development of the domestic market will be hampered,” he warned. Includes labor, goods, capital, and data.
This has seriously affected the global impression of China and China’s business environment.
Zheng said China’s economy is also being challenged by US policies that have used a “cognitive warfare” approach by branding China an “uninvestable” place while sending warnings of economic struggles. Stated.
“This is having a serious impact on the global impression of China and China’s business environment,” Zheng said, adding that there will be a ripple effect of the dollar’s strength, which will be beneficial for the United States in terms of attracting talent and resources. Stated.
“Such unilateral opening-up should be expanded to more areas,” he said. “This is not about doing it without thinking about the bottom line, but identifying what works for us and being open to our needs.”