Chinese Economy Research Articles

The Potential Relationship Between the Fed's Rate Cut and the Global Economy

The recent decision by the Federal Reserve Board to cut interest rates has been hotly debated due to growing uncertainty about the US economy. The article provides an in-depth analysis of the potential risks facing the US economy and discusses the need for the rate cut. Based on this, the project will delve into the combined effects of the Federal Reserve's interest rate cut on the US economy, and discuss the positive role it will play in reducing inflation. Finally, the paper also argues that the Fed's interest rate cut is likely to trigger risks in global financial markets and will slow the recovery of the world economy. Considering the limited impact of the U.S. rate cut on the Chinese economy, it is still needed to continue to pay attention to possible asset price bubbles while remaining vigilant.

Chinese students’ willingness to study abroad: The personal and familial influencing factors

Background: Studying abroad is no longer a new phenomenon. The popularity of Chinese students studying abroad is well known and the enthusiasm for studying abroad among students has been consistently strong for many years, especially with the continuous development of the Chinese economy. Aims: This paper will examine personal and family factors which influence the willingness to study abroad among Chinese university students. The application of these influencing factors can potentially have an impact in the formulation of government-related policies, the establishment and development of study abroad agencies, and the decision process among students when choosing to study abroad. Methods: The current study utilized a self-report approach to examine the potential impact of several personal and family factors on the willingness to study abroad. Results: Utilizing multivariate analysis and statistical analysis modeling, it was found that willingness to study abroad is greatest among female students with moderate to high grades, who are from urban areas and non-agricultural households, with fathers in high status occupations, mothers with higher levels of education, and higher family income. These factors embody the intergenerational transmission of benefits associated with family capital.

Hold the chair: the link between short-term exposure and the managerial change in an emerging market during the pandemic

PurposeThis paper aims to study the effect of short-term firm-level exposure on managerial change during the COVID-19 pandemic in the Chinese economy. Such a link is not explored in the existing COVID-19 and resource-based theory (RBT) literature.Design/methodology/approachThe logit regression model is utilized to examine the effect of short-term exposure on the probability of managerial change in the Chinese economy. Logit models based on coarsened exact matching (CEM) are also used in the robustness checks part of the study. The results are robust to different specifications.FindingsThe obtained findings show that short-term exposure has a significantly positive effect on the probability of managerial change during the pandemic.Research limitations/implicationsUnder the RBT approach, this study sheds new light on the relationship between short-term financial exposure and managerial change under uncertainty during the pandemic.Practical implicationsC-Suite executives need to be prepared for short-term sudden shocks. According to the findings of the study, the relationship between short-term sudden shocks and short-term financial exposure is a factor that C-suite executives should pay attention to.Social implicationsShort-term sudden shocks can support managerial change, pushing society into uncertainty and negatively affecting the private sector. In this context, it has a structure that can amplify uncertainty.Originality/valueIn the existing COVID-19 literature, the effect of short-term exposure on the probability of managerial change is under researched, especially in the emerging markets-based RBT and COVID-19 literature. The present study offers an insight into the link between short-term exposure and the probability of managerial change during the pandemic.

Curriculum Assessment Reform for Convention and Exhibition English

Convention and Exhibition English is a typical course in English for Specific Purposes (ESP). With Chinese business activities increasing, there is a growing demand for convention and exhibition-related talents, since most businesses are in connection with these events. To cultivate competent graduates, Guangdong Technology College has tried replacing traditional written test with a video in the assessment of students’ performance after their learning of this course to stimulate practice and self-exploring. Role play in the videos can inspire students’ interest in this field and build up their confidence in English. This article will introduce the background information on the development of the course, the necessity of its reform, and how it has been implemented. This paper aims to attract attention to the creative reform of teachers and hopes to contribute to more studies on ESP teaching for the better cultivation of English talents that the growing Chinese economy requires.

Visualization tools as a method of working with text in the specialty "Economics" in the Chinese audience

Introduction. New requirements for the competencies of economic specialists in an intensively changing international situation dictate the need to apply a new format for teaching the language of the specialty in a foreign language (in this case, in Russian), a format characterized by maximum efficiency and productivity and focused on the specifics of students. It is also necessary to define learning strategies for working with text in the specialty as a basic element in the development of professional competencies among students. The new format of teaching the language of the specialty necessitates the use of information visualization technology as one of the most advanced at the present time. The purpose of the study is to identify / establish a set of the most effective visualization tools when working with the language of the specialty in the profile "Economics" in the Chinese audience. Methods and materials. The experimental basis of the study was a group of Chinese students of the economic profile of Peter the Great St. Petersburg Polytechnic University (Russian Federation). A total of 40 students took part in the experiment. The questionnaire developed by the authors included questions concerning the specifics of the visual component, the degree of difficulty / lightness of the text depending on the type of visual medium, as well as the percentage of efficiency of processing, assimilation and reproduction of information. Results. It was revealed that Chinese students, when working with economic texts, perceive infographics better as visual accompaniment – 25% and a flowchart – 25%, that is, these components facilitate the primary perception of the text. The students pointed out the low informative content of the graph and its complementary nature, 36% of respondents considered the text with the graph to be the most difficult, 19% also considered the drawing to be uninformative. When comparing texts with different types of visualization, the text with a diagram was called absolutely easy, and the text with a graph was called absolutely difficult. In turn, the majority of respondents indicated that when retelling a text, they are more often guided by a plan, keywords and a scheme created on the basis of the text. 36% of Chinese trainees considered a diagram to be the most preferred way of visualization in the text, 24% – infographics and 16% – keywords. The drawing and graph were considered uninformative. Conclusion. The conducted experiment confirmed the peculiarities of the perception of texts in the specialty by Chinese students, and also helped to identify the most effective visualization tools for this contingent. The data obtained can be used to create textbooks on Russian as a foreign language for Chinese economics students.

Manipulative Mechanisms in German Economic Discourse: A Study of Publications on Foreign Economic Relations between Germany and China in 2020-2023

This study explores the mechanisms of manipulative influence within German-language economic discourse. The empirical material consists of articles from the Köln Institute for Economic Research, detailing external trade cooperation between Germany and China during the years 2020 to 2023. It has been found that metaphors, borrowings, idiomatic expressions, expressive language, and emotives — comprising combinations of evaluative connotations — exert a covert manipulative effect on communication participants. At the grammatical level, the use of adverbs in the superlative degree and modal verbs in the preterite subjunctive form enables the construction of narratives that downplay the significance of China’s successes as an economic competitor. The analysis reveals that manipulation within economic discourse is intentionally obscured, possessing an implicit nature. It has been determined that portraying the Chinese economy in an unequivocally negative light is impractical; however, there are noticeable trends towards diminishing the significance of its successes, negatively evaluating business activity, and exaggerating the perceived threats posed by China to its business partners. The novelty and relevance of this research lie in addressing the techniques of manipulative influence in shaping the linguistic worldview within economic discourse — a perspective that has not yet been explored, as such texts are often considered objective documents grounded in scientific statistical data.

The Impact of Intellectual Property Protection on Technological Innovation - A Literature Review Incorporating New Quality Productive Forces in the Chinese Economy

Abstract: This article explores the impact of intellectual property (IP) protection on technological innovation, particularly concerning Chinas recent emphasis on high-quality productivity. The paper reviews existing literature, discussing the differences in the effects of IP protection between developed and developing countries. This literature review shows that strengthened IP protection has a positive impact on technological innovation in China, but with a nonlinear relationship. The concept of new quality productive forces focuses on achieving high levels of quality and promoting disruptive technology innovation. Combining this concept, this article analyzes the influence of IP protection on its development and provides specific policy recommendations. Future studies should focus on empirical analysis to assess the actual effectiveness of IP protection within the existing policy framework. Appropriate evaluation systems are suggested to establish, and IP laws should be gradually improved so as to effectively facilitate Chinas technological innovation and industrial advancement.

Economic policy uncertainty and common prosperity within the enterprise: Evidence from the Chinese market.

In the continuous development of the Chinese economy, the desire for common prosperity among the people has become increasingly strong. However, the complex domestic and international situations, along with the economic uncertainties post-pandemic, have introduced significant uncertainties into government economic policies. In the long term, this uncertainty has a profound impact on intra-enterprise common prosperity, affecting society at large. This paper focuses on non-financial listed companies on the Shanghai and Shenzhen stock exchanges from 2011 to 2020, examining the negative effects of economic policy uncertainty on intra-enterprise common prosperity. The results indicate that economic policy uncertainty has a significant adverse impact on intra-enterprise common prosperity, and this impact is more pronounced in state-owned enterprises, those in the growth life cycle, and companies with poor innovation capabilities and limited external support. Companies enhancing social responsibility and overall factor productivity can help mitigate these negative effects. Furthermore, in dynamic features, as the level of intra-enterprise common prosperity increases, the negative impact of economic policy uncertainty gradually diminishes, while the positive effects of overall factor productivity and corporate social responsibility on enterprises become more evident.

Analysis of the Causes and Countermeasures of the Phenomenon of “Unfinished Buildings”

Real estate is very important to the Chinese economy and has driven its rapid development in the past few decades. However, China’s real estate market has experienced fluctuations in recent years, causing numerous attentions from all over the word. With the continuous advancement of the real estate market, the problem of unfinished buildings is also a major hidden danger. The appearance of unfinished buildings not only brings great economic losses to the citizens but also brings huge negative effects to society. This study analyzes the causes of the unfinished buildings from various aspects, such as capital chain break, real estate project engineering problems, real estate lack of self-control, and economic disputes, and puts forward a series of preventive measures according to the causes, finally removing this hidden danger at the root. In order to maintain the balance of the real estate market and protect the good image of the city, new suggestions are provided.

Echoes of Speculation Underway in Relations Between the Occident and China

In a previous article I talked about speculative waves in sequence that have hit the global economy since the 2000s in a world struggling with deflation. Well, this wave of speculation has not stopped but today it seems to concern the transfer of industrial plants from the West to China. A process that was born with the good intentions of transferring industrial activities to developing countries with the dual objective. Give a boost to the economy in developing areas and at the same time reduce the management costs of large multinationals' plants. A process therefore that was born with a positive sign in the intent to help a coordinated development of the territories and a reduction in the costs of industrial products. Meanwhile, the objective of coordinating the development of the territories and continents has not been achieved and on the contrary the process has led to an almost exclusive delocalization of industrial production from the West to China. The excess of industrial localization has exacerbated the concentration of unassimilable waste with a worsening of the disease of the planet struggling with atmospheric overheating. The process, therefore, has been slowed down but not stopped for natural reasons. On the other hand, the acceleration of the development of the Chinese economy has also marked a halt coinciding with the spread of the global epidemic. After about fifty years of accelerated economic growth, the Chinese community has sensed the change in the country's economic prospects and has pulled the brakes on both consumption and investments, marking the end of the accelerated race on the road to development. The picture of the speculative evolution of industrial delocalization processes sees together the interest of mega companies in reducing management costs which is congenial to the increase in the financial values of companies that increase on the Western stock exchanges. In other words, delocalization helps reduce management costs and at the same time seems to support ultra increasing financial values. In short, it plays into the hands of speculation which is certainly not the interest of global social and economic development which instead requires coordination of the territories on the road to development. With the further dilemma that the fate of the global economy may be in the hands of the Boards of Directors of mega companies and not of states and communities.​

India’s growth in the era of secular stagnation

As one of the world’s fastest-growing and largest economies, India is showing growth momentum while advanced countries have long been suffering from secular stagnation and the recent China’s slowdown is also evident. In the context of the current economic juncture and global integration, this paper attempts to analyze such Indian growth dynamism and factors affecting it. In particular, this paper aims to investigate (1) the degree of synchronization in economic activities between India, the selected advanced countries and China, (2) the transmission channel focusing on trade, with a particular focus on China, and (3) sectoral growth and India’s manufacturing drive. It utilizes exploratory data and correlation analyses. The key finding is, firstly, India’s synchronization with the global economy has been deepening. The growth trend reaffirms the general perception that India exhibits high growth, whereas advanced countries experience continuous low growth. On the other hand, the cyclical growth shows that the Indian economy is experiencing weaknesses as are the advanced countries and Chinese economy. Secondly, India is closely linked with China via trade channels. It aided in deepening the dependency on China rather than promoting domestic production due to the high cost of capital and intermediate goods and lack of technology. Thirdly, the sectoral analysis indicates the weakness of manufacturing sector that is associated with declining investment and the lower profit margin. These findings suggest that India is exposed to both external and domestic weaknesses in driving its economic growth. Under such juncture, it needs careful monitoring whether India will be able to sustain long term growth impetus.

Beyond the average: Emissions from electricity and the implications of decarbonization policies in Guangdong

Various policy interventions have been proposed to decarbonize the Chinese economy through the electricity sector. This study is the first to use generation-by-plant data to analyze the emissions from the electricity sector in a Chinese region and evaluate the environmental impacts of various policy interventions. Using regression techniques, the average emission factor, marginal emission factor, and marginal displacement factor, are estimated for different pollutants of Guangdong, the most affluent and populous province in China. Results reveal a decline in average emission factors over the sample period of 2017–2021, owing to the expansion of renewable energy. This study also finds a less pronounced disparity between marginal emission factors and average emission factors compared with that in developed countries, probably due to the prevalence of coal-burning plants and lower renewable energy penetration in Guangdong. Using the estimated emission factors, this study also examines the environmental effect of time-of-use tariffs, indirect emissions of electric vehicles, and carbon displacement effect of wind energy. The conclusions reveals that the time-of-use tariffs moderately reduced CO2 emissions, and the extensive adoption of electric vehicles and wind energy substantially reduces carbon emissions, indicating that decarbonizing the economy needs the coordination of various policies.

Role of environmental, social, and governance (ESG) investment and natural capital stocks in achieving net-zero carbon emission

This study investigates the role of environmental, social, and governance (ESG) investment and natural capital stocks in achieving net-zero carbon emissions, focusing on the Chinese economy. This study uses the data from 2013 to 2022 and applies correlation analysis, quantile process estimation, quantile-factor augmented vector autoregressive, quantile dimension regression, and robustness analysis techniques. The results confirmed that ESG investment has a significant role in net-zero carbon emission and fosters natural capital stocks in the Chinese ecosystem. The results further established that natural capital stocks significantly benefit the Chinese ecosystem and reduce greenhouse gas emissions, CO2 emission – gaseous fuel, CO2 emission – solid fuel, and carbon intensity. Moreover, natural capital stocks have a significant role in achieving net-zero carbon emissions and it accelerates gross tree cover and green agricultural yield. The study is of great interest to corporations, Chinese banks, and the government in planning and achieving net-zero carbon emissions as per Prudential Financial regulation and accounting reporting systems. Achieving net-zero carbon emission is a process-based approach; therefore, the study recommends that policymakers customize investment mechanisms and natural capital accounting standards as per the territorial requirements and execute an ecological control system to make it sustainable.

COVID-19 and time-frequency spillovers between oil and sectoral stocks and portfolio implications: Evidence from China and US economies

This paper examines the volatility spillovers and the time-frequency dependence between crude oil and stock sectors in the U.S. and China using both wavelet coherence and asymmetric BEKK GARCH models. This study also investigates the impact of the COVID-19 pandemic on spillover effects and portfolio management. The results reveal strong positive co-movements between WTI oil and US sector stock returns at medium and low frequencies particularly in 2020Q1. We find significant long-term co-movements between oil and Chinese sector stock returns (64–128 days). Furthermore, the findings reveal a significant and asymmetric volatility transmission between oil and sector stocks in both the US and Chinese economies. The evidence of spillovers is more pronounced during the COVID-19 period. It is recommended that equity investors should hold more stocks than oil assets to minimize risk without reducing the expected return. Finally, hedging with oil is expensive for U.S. sectors during the pandemic but inexpensive for Chinese sectors.

Re-examining international spillovers: An Asian perspective

This study investigates the transmission and the business cycle implications of Chinese export shocks to other Asian economies. Based on a panel vector autoregression (PVAR) model, we provide evidence that a positive export shock originating from China simultaneously stimulates aggregate demands for both China and other Asian economies. The PVAR model takes into account three main sources of potential interactions among ten Asian economies. Simulations from a two-country DSGE model featuring endogenous trade links suggest that positive trade spillover is essential to explain the macroeconomic comovement pattern. Our findings further indicate the importance of the Chinese economy to business cycle synchronization.

Особенности торговой политики Китая: текущее состояние и направления развития

This article analyzes the current state, main instruments, and directions of development of China's trade policy in the context of the confrontation between the two global economic leaders, China and the USA. Understanding the meaning that China embeds in the concept of "trade policy" will enable Russia to perceive the logic of China's decisions and effectively build cooperation with China in the economic sphere and the related ones. The aim of this study is to identify the peculiarities of China's trade policy. To achieve this, the article examines the main indicators and instruments of China's trade policy, considers the current viewpoints of Chinese economists on trade policy, and analyzes activities concerning its implementation. Particular attention is given to the methods China uses to increase its influence in the global economy. The findings demonstrate that through its trade policy, China aims not only to enhance its economic power but also to shape new global rules and standards, reflecting its aspiration for leadership in international economic relations. China’s tariff system and the enforcement of non-tariff measures effectively protect its domestic market from foreign competition and encourage investments in the development of competitive high-technology production on the global market. The article shows that in China, the concept of "trade policy" encompasses a broader set of tools and measures than the commonly accepted tariff and non-tariff measures. Within its trade policy framework, China addresses a range of tasks, from the internationalization of the national currency to uniting developing countries and gaining priority in setting technical standards for goods and services. It is shown that China has been working in this direction for several decades, specifically since the early 2000s.

To What Extent Did the Chinese Banking Industry Affect Chinas Economic Growth in Past 50 Years?

Currently, the Chinese economy is encountering a period of stagnation in its development. Sustaining the rapid growth rate of the economy has become a challenge, as there is a lack of adequate momentum for continuous high-speed advancement. The nation is edging closer to the middle-income trap, and the conventional approach of relying on investment, exports, and consumption to propel economic growth is proving to be unattainable. It must be achieved through the transformation of economic structure, and the transformation of the financial industry is the most important part of it. The research question of this article is how commercial banks affect economic growth and how China's banking system has developed. The WTO's entrance into China has been a major catalyst for the banking industry and its system to be built. The literature review section delved deeply into economic growth, examining the concept of it, how it is achieved in China, as well as any factors that may influence it. More importantly, the study reviewed what the banking industry is and the development stages of China's banking industry. The banking industry's development was examined in the concluding part of the literature review, examining pertinent studies on the effect of economic expansion. In the discussion section of the research, we analyzed how the banking industry affects economic growth through its impact on capital allocation, banking services, and currency. Ultimately, we drew corresponding conclusions and proposed countermeasures and suggestions for the future development of the banking industry. Due to the fact that the industrial structure of developing countries is usually dominated by labor-intensive industries, clarifying the interrelationship between China's banking structure, capital allocation efficiency, and economic growth has universal significance and reference value for relevant financial arrangements in developing countries.

Modelling the green transition of the Chinese economy

This paper develops a stock–flow consistent (SFC) macroeconomic model with an energy sector for China to investigate the effect of green policies on green transition and the economy. We provide an analytical solution for green transition that illustrates the relative cost of using conventional energy with respect to renewable energy to determine the share of renewable energy and how the development of the energy sector promotes green transition. Our solution also demonstrates the necessity of green policies for a green transition. We calibrate the model to the national determined contributions (NDCs) scenarios from the Network for Greening the Financial System (NGFS) and run simulations from 2019 to 2035. The results show carbon taxes stimulate green transition but have a negative impact on the economy, accompanied by a reduction in economic growth, current account deficit and a rise in inflation. Carbon taxes deteriorate firms’ balance sheets. Governments benefit from carbon taxes in the short run but face a higher public debt to GDP ratio in the long run. Carbon taxes reduce carbon intensity and carbon emissions. We also compared the effect of green fiscal policy to conventional fiscal policies financed by carbon taxes (carbon rebate). Green subsidies benefit economic growth more effectively. They reduce inflation caused by carbon taxes and stimulate the green transition further.

Multidimensional inequality in Chinese economics academia

Multidimensional inequality in Chinese economics academia

Can Investment Liberalization Improve Enterprise Productivity

In the context of the new development pattern, a deep understanding of the factors affecting enterprise productivity and an accurate evaluation of the implementation effect of foreign access policies have important theoretical and practical significance for further promoting the improvement of enterprise quality and efficiency, and promoting the high-quality development of the Chinese economy. This article is based on the former research and uses the negative management list of foreign investment as the research basis to study the impact of investment liberalization on enterprise productivity and propose relevant policy recommendations.