The PRC has achieved remarkable economic growth, but serious imbalances between regions and areas remain. The government is aiming to bridge these gaps by developing inclusive finance tools.
The Chinese economy is slowing down, and this is likely going to have a noticeable effect on the world economy and especially globally integrated economies in developing Asia. An analysis by ADB Chief Economist Shang-Jin Wei.
Hunan, a major manufacturing hub in the PRC, recently launched a low-carbon technology incubator to offset environmental degradation and rising greenhouse emissions, and wants to become a model for developing Asia, where the business case for cleantech is emerging.
The offshore renminbi bond market has boomed since the People’s Republic of China (PRC) authorities first allowed domestic banks to issue them in Hong Kong, China in June 2007. But appetite for the paper—popularly known as “dim sum bonds”—is starting to wane as access to onshore markets becomes easier. To stay relevant, the dim sum market must develop further.
Last Friday, 7 March, 2014, Shanghai Chaori Solar Energy Science and Technology Co Ltd defaulted on its 1 billion yuan ’Chaori-11 bond‘ when it failed to pay in full the coupon due that day. The default should not have taken investors by surprise as the company has been struggling over the past few years due to general weakness in the solar panel market.
International experience has shown that fiscal policy can play a leading role in promoting a shift toward a more inclusive economic model, balanced income distribution, and improved living standards.
No one can say that the second largest economy in the world is trapped. Decades of structural change and rapid growth allowed for a swift transition from a low-income to a middle-income country. The challenge today lies in moving up to higher-income status. How could the People’s Republic of China (PRC) avoid the trap?
Resource depletion and environmental pollution are serious issues in developing Asia. This was well illustrated in January of this year when northern People’s Republic of China (PRC) suffered its worst air pollution on record. The level of pollution moved many to question the old development model of “pollute first, improve later”.
Aging can adversely affect economic performance, demanding changes in social and economic policies to address the challenge. While the best-known dimension of aging relates to fiscal sustainability due to spiraling health care and pension costs, the repercussions are wider. More worryingly, aging will ultimately constrain economic growth because labor supply shortages result in lower GDP growth in the absence of increases in total factor productivity.