Written By: Ian Billett, Assistant Editor
Edited By: Kiefer Cheng, Editor-in-chief
Xi Jinping (President) and Li Keqiang (Premier) officially appointed to the National People’s Congress
These experienced leaders come to the top reign of power during a pivotal time of the Chinese economy. GDP growth has slowed to 7.8% and the export-dependent economy must find new sources of growth. On top of these leaders’ agenda is to reinvent the Chinese economy by fostering indigenous innovation and boosting domestic consumption.
Li Keqiang: China’s New Reformer
Li has been praised for his bold talk of reform. He aims to reduce government bureaucracy for small businesses by making government more efficient. The Chinese government has eliminated the controversial Ministry of Railways, and the National Population and Family Planning Commission. The latter department was responsible for the one child policy. However, with the working population shrinking by 3.45 million in 2012, reform in how China plans is needed.
Alibaba announces its Initial Public Offering
Alibaba is the world’s largest e-commerce company, handling more than US $170 billion in sales—more than eBay and Amazon combined. The company’s success is a reflection of China’s gradual transition to a consumption-based economy. The “e-tail” (online retail) market has grown by 120% since 2003, highlighting the enormous areas of opportunity for online shopping in China.
Zhou Xiaochuan re-appointed as the Governor of the Central Bank of China
This appointment signals the government’s intention to continue financial reform. Zhou was responsible for instigating reforms in the Chinese bond market, state-owned banks and for de-pegging the yuan from the U.S. dollar. China plans to make the yuan fully convertible by 2015 in order to stimulate foreign investment and trade. Furthermore, the central bank has taken measures against inflation and surging house prices. In February, inflation was at a 10-month high of 3.2%, a warning that the Chinese economy may be overheating.
Africa: President Xi Jinping’s first overseas trip
Xi’s first overseas trip as President to Africa was to promise more equal trade relations between Africa and China. Minerals account for 80% of imports from Africa, helping to fuel China’s robust manufacturing industry. China has been criticized for exploiting the continent’s natural resources, but Xi promises to change that notion by promising fairer trade and expansion of Chinese business into non-resource sectors.
-
China Aims for Breakthrough Inside the BRICS
Written By: Lucia Zhou
Edited By: Shiran Shen
This month, Xi Jinping made his first diplomatic visit as the president of the People’s Republic of China. Stepping out of the airplane in St. Petersburg, the state president looked confident and calm, standing side by side with his wife, a renowned Chinese folk song singer who was elegantly and fashionably dressed in Chinese apparel. People from China and the world watched this with surprise and hope. Some analysts believe that, this is another attempt to strengthen the BRICS. In this trip, the alliances among BRICS and their prospect may deserve no less attention than any other events.
The BRICS, initially BRIC, refers to an association of four newly industrialized developing countries: Brazil, Russia, India, and China. These emerging economies are relatively developed, and they have maintained steady growth rates in the dire aftermath of the 2007-2009 global financial crisis. In December 2010, after much hard work, South Africa was formally accepted into the cooperating system, and thus BRIC was renamed as BRICS. The five countries, occupying 26 percent of the world’s surface area and representing 42 percent of the global population, have been the driving force of global economic growth. They are expected to take on more global responsibility.
Before the BRICS meeting took place in Durban, South Africa, there had been four meetings held in every other membership country. They have been productive in the signing of joint treaties and agreements, which demonstrates the shared common interests and influence they wish to have on the global economy, regional issues, and international diplomacy. They want to work towards a non-polarized world, where they have a strong voice in global affairs. This time, the proposal to found the BRICS Development Bank came in limelight. The proposed establishment is quite promising in some regard, but is also contentious.
People hope to see whether the BRICS Development Bank is going to be a critical platform for these emerging actors to have more say on the international stage. In this construction, member states are expected to contribute a total of 850 billion USD, with 410 billion from China, 180 billion from Russia, 180 billion from Brazil, and 50 billion from South Africa.
At this moment, the role of BRICS Development Bank remains unclear. It can be said that it is a very positive attempt to build up the influence of and strengthen the ties among member states. However, only time will tell whether the BRICS Development Bank will become a reality and win the member states more say on international financial issues.
This monthly editorial is brought to you by The Global China Review, a publication created by the GCC community. Want to be published in the next issue of GCR? To get involved or for more information, please e-mail Kiefer Cheng (Editor-in-chief) kiefer.c@gmail.com.
Please note that all independently contributed opinions expressed such as these do not necessarily reflect the viewpoints of GCC.
