Sector In China Research Articles

Service liberalization and productivity in high‐tech firms: Evidence from China

AbstractThis article studies the relationship between service liberalization and the productivity of high‐tech manufacturing. Examining the sudden relaxation of FDI regulation in several service sectors in China, this article finds that service liberalization improves high‐tech firms' TFP. The effect is greater in non‐SOEs, firms with a higher degree of service dependence, and firms located in regions with better institutional environments. Furthermore, after service liberalization, high‐tech firms of all sizes have more outsourcing service expenditures and spend less on intermediate inputs. Only large‐sized high‐tech firms increase their R&D expenditures to improve production efficiency.

Civil aviation emissions in China in 2019: Characteristics and abatement potential

Civil aviation is one of the industries facing the greatest challenge in reaching carbon neutrality by the middle of this century, and this sector also contributes to adverse impacts on the regional air quality and human health. China exhibits the second highest air passenger turnover worldwide. Our understanding of civil aviation emissions must be urgently enhanced, and the mitigation potential should be explored. In this study, on the basis of real domestic flight information for 2019, we built a greenhouse gas and air pollution emission inventory for the civil aviation sector in China with the fuel flow method based on the cruise and other phases. We thoroughly analyzed emissions by region, aircraft and engine types, and aircraft age, based on which we designed four measures to evaluate the abatement potential. We found that the hydrocarbon (HC), CO, NOx, SO2, particulate matter (PM) and CO2 emissions in 2019 reached 79.9 kt (95% CI [51.6–114.5]), 176.3 kt (95% CI [114.5–248.2]), 304.2 kt (95% CI [203.4–420.7]), 23.2 kt (95% CI [14.2–33.7]), 1.0 kt (95% CI [0.61–1.44]) and 87.0 Mt (95% CI [57.4–119.6]), respectively. The cruise phase was the major emission phase, accounting for 67%-87% of the total pollutant emissions. If four measures were jointly implemented, the HC, CO, NOx, SO2, PM and CO2 emissions could be reduced by 61%, 54%, 55%, 45%, 32% and 38%, respectively. Utilizing lower-emission aircraft and switching travel modes could substantially reduce civil aviation emissions in China.

Spatiotemporal characteristics and driving factor analysis of embodied CO2 emissions in China's building sector

Since the embodied emissions of the building sector play a pivotal role in the total emission profile of developing countries, represented by China, it is crucial to uncover its emission characteristics and the underlying drivers. Most existing studies focus on building operational emissions, and there is a lack of in-depth studies on embodied emissions, especially in spatiotemporal heterogeneity and spatial correlation. Thus, this study calculates embodied emissions of the building sector in China's 29 provinces during 2011–2020 and develops an innovative factor analysis model that integrates the extended STIRPAT model, network analysis, and spatial Durbin model to explore the influence mechanisms of various factors on emissions from local, spillover, overall and temporal perspectives. The empirical results reveal notable spatiotemporal differences and spatial dependence across regions. The area has consistently been the most crucial driver. The building performance demands are increasingly influencing emissions through direct and spillover effects. The slowdown decarbonization of the material industry diminishes its impact. Limited technical improvement and regional shifts of carbon-intensive enterprises have weakened the technological emission reduction effects. Therefore, regulating ineffective construction, discouraging excessive building performance, implementing demand-side material efficiency strategies, bolstering interregional coordination, and developing low-carbon technologies are keys to cutting emissions.

Are electric vehicles really the optimal option for the transportation sector in China to approach pollution reduction and carbon neutrality goals?

Profound worldwide fleet electrification is thought to be the primary route for achieving the target of carbon neutrality. However, when and how electrification can help mitigate environmental impacts and carbon emissions in the transport sector remains unclear. Herein, the overall life-cycle environmental impacts and carbon saving range of two typical A-class vehicles in China, including electric vehicle (EV) and internal combustion engine vehicle (ICEV), were quantified by the life cycle assessment model for endpoint damage with localization parameters. The results showed that the EV outperformed the ICEV for the total environment impact after a travel distance of 39,153 km and for carbon emissions after 32,292 km. The ICEV was more carbon-friendly only when the driving distance was less than 3229 km/a. Considering a full lifespan travel distance of 150,000 km, the whole life-cycle average environmental impacts of EV and ICEV were calculated as 8.6 and 17.5 mPt/km, respectively, but the EV had 2.3 times higher impacts than the ICEV in the production phase. In addition, the EV unit carbon emission was 140 g/km, 46.8% lower than that of the ICEV. Finally, three potential reduction scenarios were considered: cleaner power mix, energy efficiency improvement and composite scenario. These scenarios contributed 19.1%, 13.0% and 32.1% reductions, respectively. However, achieving carbon peak and neutrality goals in China remains a great challenge unless fossil fuels are replaced by renewable energy. The research can provide scientific reference for the method and practice of emission reduction link identification, eco-driving choice and emission reduction path formulation.

The Influencing Factors of Carbon Emissions in the Industrial Sector: Empirical Analysis Based on a Spatial Econometric Model

To promote the low-carbon, high-quality development of China’s industrial sector and achieve the national carbon peak goal as soon as possible, this study explores the influencing factors of carbon emissions among industrial sectors. Based on the panel data of 36 industrial sectors in China from 2009 to 2021, the spatial effects and characteristics of industrial sectors are examined by the spatial Durbin model (SDM) based on analyzing the spatial correlation among industrial sectors. The results show the following: (1) Moran’s I statistical results show that China’s industrial carbon emissions have a strong positive spatial correlation, and with time, the spatial correlation between industrial sectors gradually increases. (2) The empirical results of the whole industrial sector show that the property rights structure, capital intensity, and energy structure are the main driving forces promoting carbon emission reduction; the grouping analysis results show that the impact of FDI and property rights structure on the carbon emissions of the industrial sector in different sample groups is different. Among them, the energy structure and research and development play a role in reducing carbon emissions in each sample group. (3) Therefore, in the future, to reduce carbon emissions in the industrial sector, it is necessary to inhibit growth factors and promote the role of reduction factors; optimizing the energy structure and improving the rationality of the property rights structure are effective ways to achieve energy conservation and emission reduction.

Evaluating financial fragility: a case study of Chinese banking and finance systems

Global financial systems are inherently fragile due to their complexities. Thus, it is of great interest to devise various methods to assess the dynamics of financial fragility. As such, this study builds a financial fragility evaluation index system. The study finds three major fluctuations in the trend of financial fragility due to the great recession in 2008, the huge financial volatility in 2015, and the COVID-19 pandemic in 2019. It also tests the index system on the Chinese finance market from 2007 to 2022. Observations of capital adequacy, non-performing loans, and liquidity ratios, in addition to the average return on total assets, are used to assess banking fragility. The results attained show that amongst the tested banks, the Bank of Ningbo has the lowest vulnerability score, mainly due to its higher average return on total assets, capital adequacy ratios, and lower non-performing loan ratio. On the other end of the spectrum, China Minsheng Bank has the highest vulnerability score due to its lower capital adequacy and higher non-performing loan ratios. These findings provide valuable insights into the banking sector in China for policy formulation.

Policy scenario analysis of achieving the "dual carbon" goal for the road transportation sector in China

The goal of "dual carbon" has brought the pressure of reducing carbon emissions to the road transportation sector in China. This study aims to identify and analyze possible policy measures that would help to achieve this goal from the perspective of the whole life cycle. We build a bottom-up computing framework based on the LEAP model. Six policy scenarios are designed to quantitatively assess their effects. The results show that promoting pure electric vehicles (PEV) and plug-in hybrid electric vehicles (PHEV) is appropriate for the passenger vehicles (PV), light-duty trucks (LDT), and mini trucks (MT) sub-sectors, while hydrogen fuel cell vehicles (FCV) are more suitable for the promotion of the heavy-duty trucks (HDT), heavy-duty buses (HDB), and medium-duty buses (MDB) sub-sectors. Additionally, the recycling of vehicle materials can effectively reduce the carbon emissions during the life cycle of motor vehicles. Furthermore, reducing the carbon emissions from the vehicle cycle of PV and the fuel cycle of HDT should be taken seriously. The main contribution of this study lies in establishing a comprehensive list of vehicle cycle carbon emission factors, covering various sub-sectors of China's road transportation sector. Besides, this study considers China's strategic planning and "dual carbon" goal, and proposes policy recommendations specifically tailored to the practical issues faced by China.

The relationship between humble leadership and employee innovative behavior in Chinese Intangible Cultural Heritage (CICH) SMEs: Mediated-moderating effect of knowledge sharing and absorptive capacity

This research focuses on small and medium-sized enterprises (SMEs) within China's intangible cultural heritage (CICH) sector and investigates the relationships between employee innovative behavior (EIB), humble leadership (HL), knowledge sharing (KS) and absorptive capacity (AC). It examines how knowledge sharing, as a mediator, impacts EIB, considering the moderating role of AC. This study aims to address the knowledge gap regarding how leadership and knowledge management processes affect individual-level outcomes, such as creative behavior and problem-solving skills. This research is especially vital for the CICH sector in China, as it offers the first systematic exploration of employee innovative behavior in this area. By providing evidence-based management strategies, the study contributes to both theoretical understanding and practical application, supporting the innovation, sustainable growth, and international competitiveness of CICH SMEs. It also offers policymakers empirical insights to nurture the sector, ensuring the preservation and evolution of China's intangible cultural heritage.

Assessing the Energy Performance and Retrofit Potential of the 1980–1990s’ Residential Building Stock in China’s Jiangsu Province: A Simulation-Based Study

The building operation sector in China represents 22% of the national energy consumption and 22% of the carbon emission, of which urban residential buildings accounted for 24% in 2019. Such figures for the housing sector are projected to increase sharply in the near future, while China aims to peak CO2 emissions by 2030 and reach neutrality before 2060. To reduce the impacts of the urban housing sector and address the energy use and waste generated by large-scale demolition and reconstruction, the central government started promoting the energy retrofit of urban residential buildings, raising such policies to the national strategic level. Jiangsu Province is one of the most urbanised, with a rapid growth in the energy consumption of residential buildings. The Multi-Danyuan and Single-Danyuan Apartment built in 1980–1999 are the most representative residential types in its urban areas. While still adequate functionally, they were designed and built to low energy standards and show significant potential for energy retrofit. Nonetheless, their current performance and energy-saving potential are under-researched, while more detailed and reliable data would be critical to support retrofit design and policy making. This study investigates and characterises the typical use and energy performance of the two building types. Additionally, seven measures and six retrofit scenarios were identified based on the optimal energy reductions and regulations from selected countries. The simulations indicate that, without intervention, the energy consumption of the typical urban residential buildings can reach 122 kWh/m2 under the typical high-energy user scenario. By selecting a set of effective energy-saving measures, the operational energy use for heating and cooling can be reduced by up to 52.4%. Current local standards prove cost-efficient, although less effective in reducing energy use compared to international best practices, indicating potential improvements to the contribution of building retrofit towards achieving the national carbon reduction goals.

Coal price shock propagation through sectoral financial interconnectedness in China's stock market: Quantile coherency network modelling and shock decomposition analysis

The long and continuing coal-dominated energy structure in China makes it important to investigate the impact of coal price shocks on China's financial markets. This study identifies whether volatilities in coal market may propagate between sectoral equity markets through the heterogeneous connectedness between these markets, and even further contribute to larger scale overall instabilities. We first apply the cross-spectral quantile coherency (QC) to identify the time-frequency interconnectedness among returns of 28 sectors in China's equity market. A spatial autoregressive (SAR) framework based on the QC network is further utilized to identify the indirect effect propagating through the heterogeneous interconnectedness between 28 sectoral equity markets. The empirical results indicate significant risk contagion effects during market turmoil, while strong risk absorbing effects are confirmed for the tranquil case. The significantly varying sectoral interconnectedness along with the corresponding heterogeneous pattern of shock propagation under various market specifications may provide evidence for the spillover effects to be the key mechanism and the sectoral interconnectedness as an important channel for coal price shock propagation, which is essential to the effectiveness of portfolio diversification and financial stabilizing policy.

Marketing Strategy Research in China's Milk Tea Industry: A Case Study of Mixue

This paper delves into the marketing strategies employed within the dynamic landscape of China's milk tea industry, with a specific focus on Mixue as a compelling case study. The milk tea sector in China has witnessed remarkable growth and transformation in recent years, driven by changing consumer preferences and a burgeoning youth demographic. Through a meticulous analysis of Mixue's marketing strategies, this research aims to unravel the key factors contributing to the brand's success in this fiercely competitive arena. The study employs a multifaceted approach that encompasses various dimensions of marketing, including product innovation, branding, pricing, distribution, and promotional tactics. Mixue's ascendancy within the milk tea industry is underpinned by its adept utilization of social media platforms, reflecting the evolving nature of consumer engagement in the digital age. The brand's ability to create compelling content, engage with its target audience, and harness the power of user-generated content has played a pivotal role in bolstering its market presence. Furthermore, this research examines Mixue's strategies for differentiation and brand positioning within the crowded milk tea marketplace. The findings shed light on the brand's unique selling propositions and how these resonate with consumers, ultimately influencing their purchase decisions. As a case study, Mixue's marketing strategies provide valuable insights for both industry practitioners and academics seeking to understand the evolving dynamics of the milk tea sector in China. By examining Mixue's approach, this research contributes to a broader comprehension of successful marketing strategies within the context of China's vibrant milk tea industry.

The Real Effects of Shadow Banking: Evidence from China

We provide firm-level evidence on the real effects of shadow banking in terms of technological innovation. Firm-to-firm entrusted loans, the largest part of the shadow banking sector in China, enhance the borrowers’ innovation output. The effects are more prominent when the borrowers are subject to severer financial constraints, information asymmetry, and takeover exposures. A plausible underlying channel is capital reallocations from less productive but easily financed lender firms to more innovative but financially less privileged borrower firms. Our paper suggests that shadow banking helps correct bank credit misallocations and thus, serves as a second-best market design in financing the real economy. This paper was accepted by Kay Giesecke, finance. Funding: X. Tian and Y. Wang acknowledge financial support from the National Natural Science Foundation of China [Grant 71825002] and the Beijing Outstanding Young Scientist Program [Grant BJJWZYJH012019100003014]. G. Tu acknowledges financial support from the National Natural Science Foundation of China [Grant 72010107001]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.00953 .

Towards the prospect of carbon-neutral power system 2060: A Power-Meteorology-Society systematic view

With the target of achieving carbon peaking and neutrality in the power sector in China, both State Grid and China Southern Power Grid have made plans of a rapid increase of renewables in future years towards 2060. However, considering the interactions between the power system and meteorological, society factors, whether those plans would lead to CO2 emission peak in 2030 and carbon neutrality in 2060 is still questionable and needs further analysis. Therefore, a Power-Meteorology-Society System is formulated and interactions between these factors will impact the CO2 emission of the power system is studied. Case study shows that these environmental, social factors as well as their interactions will have significant negative impact to the CO2 emission reduction in China's power grid; With current trend of generation and transmission development and higher-than-expected CO2 emission, while the grid could still reach its target of carbon peak in 2030, there will be some challenge for the grid to reach carbon neutrality in the year 2060. Based on that, the authors analyze some potential solutions such as transmission construction, energy storage and the Carbon Capture, Utilization and Storage (CCUS), and try to find a relatively cost-benefit path to reach carbon-neutrality for the grid in 2060.

A Conceptual Development of Digital Trade Adoption among Manufacturing Companies in China: A Technology Acceptance Model Approach

The proliferation of digital technologies has brought about transformative changes in various sectors, including manufacturing. In the context of China, a prominent manufacturing hub, the adoption of digital trade practices has emerged as a critical determinant of competitiveness and sustainability for manufacturing companies. This paper proposes a conceptual framework for understanding the factors influencing the adoption of digital trade among manufacturing firms in China, employing the Technology Acceptance Model (TAM) as a theoretical lens. Drawing upon extant literature and empirical insights, this conceptual paper identifies key constructs within the TAM framework, such as perceived usefulness, perceived ease of use, attitude toward digital trade, and behavioral intention, and adapts them to the specific context of digital trade adoption in the Chinese manufacturing sector. It explores how factors such as organizational readiness, technological infrastructure, government policies, and cultural factors influence the perceived usefulness and ease of use of digital trade platforms among manufacturing companies in China. Moreover, this paper extends the traditional TAM model by incorporating additional constructs such as trust in technology, perceived risk, and organizational innovativeness, which are deemed essential in understanding the complexities of digital trade adoption in a rapidly evolving technological landscape. It underscores the significance of trust-building mechanisms, risk mitigation strategies, and organizational culture in facilitating the successful implementation of digital trade initiatives within manufacturing enterprises in China. The proposed conceptual framework contributes to both theoretical and practical understandings of digital trade adoption by elucidating the interplay between technological factors, organizational dynamics, and contextual influences within the Chinese manufacturing context. By offering insights into the determinants of digital trade adoption and the mechanisms for enhancing acceptance and utilization of digital trade platforms, this paper aims to inform policymakers, industry practitioners, and scholars engaged in the promotion and facilitation of digital transformation within the manufacturing sector in China and beyond.

An Empirical Study on the Impact of Incentive Factors on the Teachers’ Performance among Private Higher Institution in China

This empirical study delves into the intricate relationship between incentive factors and the performance of teachers within the realm of private higher education institutions in China. With the rapid expansion of the private higher education sector in China, understanding the mechanisms that drive teacher performance becomes imperative for sustaining educational quality and institutional competitiveness. Employing a mixed-methods approach, this research integrates quantitative surveys and qualitative interviews to capture a comprehensive understanding of the multifaceted dynamics at play. The quantitative phase involves administering structured questionnaires to a representative sample of teachers across various private higher institutions in China, while the qualitative phase entails in-depth interviews with key stakeholders, including administrators and educators. The study evaluates a range of incentive factors, encompassing financial rewards, professional development opportunities, recognition, and job satisfaction, among others. Through statistical analyses and thematic coding, the research aims to identify the most influential incentive factors and their differential impacts on teachers' performance indicators such as teaching effectiveness, research productivity, and overall job satisfaction. Preliminary findings suggest that while financial incentives remain a significant motivator for teachers, non-monetary factors such as opportunities for professional growth and recognition also play a pivotal role in enhancing performance and job satisfaction. Moreover, the study uncovers nuanced variations in the perceived effectiveness of incentive mechanisms across different demographic and institutional contexts. By shedding light on the intricate interplay between incentive factors and teachers' performance, this study provides valuable insights for private higher education institutions in China to formulate evidence-based strategies for optimizing faculty motivation, productivity, and overall institutional effectiveness. The implications of these findings extend beyond the confines of academia, offering policymakers and educational stakeholders actionable recommendations to foster a conducive environment for teaching excellence and innovation in the private higher education sector.

Congestion effects of energy and its influencing factors: China's transportation sector

This paper constructs a two-stage undesirable and desirable congestion model, which distinguishes purely technical inefficiency from congestion, to study the energy congestion of 30 transportation sectors in China from 2011 to 2020. The Heckman model is used to analyze the influence mechanism of various factors on the undesirable congestion of energy, which avoids sample selection bias. The results show that: (1) The undesirable congestion of energy mainly exists in the transport sector of the western region, while the desirable congestion of energy only exists in the transport sectors of the eastern and central regions. (2) Purely technical inefficiency in the transportation sector does not usually occur in isolation. (3) Population density and the proportion of clean freight turnover have a negative impact on the undesirable congestion of energy.

Digital art work and AI: a new paradigm for work in the contemporary art sector in China

This paper explores a paradigm shift in work culture in the contemporary art sector due to digital transition and the introduction of AI. New ways of working with AI and digital software are embedded and normalized in everyday Chinese artistic practices. This work includes new forms of creativity and efficiency, yet, simultaneously includes new types of digital labour. This paper conceptualizes this as “digital art work,” which draws attention to the often-overlooked aspects of artists’ work, particularly their everyday artistic practices that increasingly include digital software and AI. What is the role and position of the artist in an environment where digital software and AI are becoming more central in artistic creation? How do artists creatively (mis)use AI? What does this paradigm shift in work culture mean for the future of the artist’s role and the future of the contemporary art sector? This paper draws on 48 semi-structured interviews with visual artists and arts professionals, including painters, sculptors, mixed-media, and internet artists as well as contemporary art gallery owners, museum project directors, curators, and culture policymakers living and working in China during 2023. The findings show how Chinese artists are mastering AI and opening up new spaces for creativity and how the contemporary art sector in China has already transitioned to a new “digital way” in artistic creation. These findings can help to create policy around AI globally and provide solutions for the sustainability of the artist profession and the future of the contemporary art sector.

Assessing the factors influencing the intention to use information and communication technology implementation and acceptance in China’s education sector

Information and communication technology (ICT) has become increasingly important worldwide in education. This study aims to recognize the factors that influence the intention to use information and communication technology (ITUICT) and its acceptance in the education sector in China. A literature review was conducted to ascertain the potential factors such as perceived awareness, information acquisition, trustworthiness, social influence, and regulatory support that could affect the acceptance and ITUICT. For results, a survey was conducted on a sample of 381 university employees in China using a convenience sampling approach. The collected data were analyzed using partial least squares-structural equation modeling (PLS-SEM). The results show that individual factors such as perceived awareness, information acquisition, trustworthiness, social influence, and regulatory support significantly impact the ITUICT. Additionally, trustworthiness positively moderates the relationship among perceived awareness, information acquisition, social influence, regulatory support, and ITUICT. Policymakers and educators can use the findings of this study to enhance the adoption of ICT in China’s education sector. The results of this study suggest that it is important to provide educational sector employees with training and support to increase their use of ICT technology. Furthermore, this paper offers theoretical progression to create a supportive organizational culture and provide the educational sector with the necessary technological resources to facilitate the use of ICT.

Feminization of the health workforce in China: exploring gendered composition from 2002 to 2020.

Feminization of health workforce has been globally documented, but it has not been investigated in China. This study aims to analyze changes in the gendered composition of health workforce and explore the trend in different types of health workforce, health organizations and majors within China's health system. The data were collected from China Health Statistical Yearbook from 2002 to 2020. We focused on health professionals including doctors, nurses, and pharmacists in health organizations. Trend analysis was employed to examine the change in the ratio of female health workforce over 18years. The estimated average annual percent change (AAPC) was estimated, and the reciprocals of variances for the female ratios were used as weights. In China, health professionals increased from 4.7 million in 2002 to 10.68 million in 2020. Health professionals per 1000 population increased from 3.41 in 2002 to 7.57 in 2020. The ratio of female health professionals significantly increased from 63.85% in 2002 to 72.4% in 2020 (AAPC = 1.04%, 95% CI 0.96-1.11%, P < 0.001). Female doctors and pharmacists increased 4.7 and 7.9 percentage points from 2002 to 2020. Female health workers at township health centers, village clinics, centers for disease control and prevention had higher annual increase rate (AAPC = 1.67%, 2.25% and 1.33%, respectively) than those at hospital (0.70%) and community health center (0.5%). Female doctors in traditional Chinese medicine, dentistry and public health had higher annual increase rate (AAPC = 1.82%, 1.53% and 1.91%, respectively) than female clinical doctor (0.64%). More women are participating in the healthcare sector in China. However, socially lower-ranked positions have been feminizing faster, which could be due to the inherent and structural gender norms restricting women's career. More collective and comprehensive system-level actions will be needed to foster a gender-equitable environment for health workforce at all levels.

The effects of energy quota trading on total factor productivity and economic potential in industrial sector: Evidence from China

Energy quota trading is critical to both energy conservation and the achievement of dual-carbon goals. However, little remains to be done on total factor productivity and economic potential for Chinese industry. The purpose of this paper is to counterfactually model and explore the effects of energy quota trading on total factor productivity and economic potential in industrial sector. We propose a command-controlled DEA model and an energy quota trading DEA model through non-parametric linear programming based on two policy strategies of energy consumption control. We then assess total factor productivity and its growth sources for 35 two-digit industrial sector in China, as well as examine economic potential and optimal path forecasts for carbon peaking. The results show that total factor productivity and economic potential for energy quota trading are higher than those for command-controlled energy policy. Energy-saving effect can be achieved for energy quota trading because the total energy input is lower. Additionally, the sources of productivity growth differ in timing. The average economic potential and total factor productivity of different industries differ due to the heterogeneity of the production conditions and scale of development of individual market players. Moreover, the catch-up emission reduction path with an increase of 8% in output and 4.76% in energy consumption is the optimal carbon peaking path under energy quota trading. Our findings shed valuable light on China's efforts to expand energy quota trading for high-quality development in the context of carbon peaking.