China
Taiwan’s Ma Ying-jeou Warns Against Letting Beijing Ties Cool
Taiwan president Ma Ying-jeou cites ‘economic reality,’ says rapprochement has benefited island’s security and trade.
Taiwan president Ma Ying-jeou cites ‘economic reality,’ says rapprochement has benefited island’s security and trade.
China has generally implemented reforms in a gradualist or piecemeal fashion.
China continues to lose arable land because of erosion and economic development.
The People’s Republic of China is the world’s second largest economy after the United States by both nominal GDP ($5 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009).
Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.
China is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.
China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.
China’s ongoing economic transformation has had a profound impact not only on China but on the world.
On top of this, foreign direct investment (FDI) this year was set to “surpass $100 billion”, compared to $90 billion last year, ministry officials predicted.
In this period the average annual growth rate stood at more than 50 percent.
China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.
China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.
Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.
Except for the oasis farming in Xinjiang and Qinghai, some irrigated areas in Inner Mongolia and Gansu, and sheltered valleys in Tibet, agricultural production is restricted to the east.
Livestock raising on a large scale is confined to the border regions and provinces in the north and west; it is mainly of the nomadic pastoral type.
Growing domestic demand beginning in the mid-1990s, however, has forced the nation to import increasing quantities of petroleum.
There are large deposits of uranium in the northwest, especially in Xinjiang; there are also mines in Jiangxi and Guangdong provs.
Coal is the single most important energy source in China; coal-fired thermal electric generators provide over 70% of the country’s electric power.
Most of China’s large cities, like Shanghai, Tianjin, and Guangzhou, are also the country’s main ports.
Excerpt from:
Taiwan’s Ma Ying-jeou Warns Against Letting Beijing Ties Cool
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
China
China Implements New Measures to Increase Foreign Investment in A-Share Market
China’s 2024 updates to strategic investment rules simplify A-share market access for foreign investors by lowering shareholding thresholds, reducing lock-up periods, and increasing investment options, reflecting a commitment to greater market openness and participation in economic reform.
The 2024 updates to China’s strategic investment rules simplify entry for foreign investors in the A-share market by lowering shareholding thresholds, reducing lock-up periods, and expanding investment options, signaling a commitment to increased market openness and flexibility through these new measures.
China’s capital markets are undergoing a significant transformation as part of the nation’s ongoing commitment to economic reform and openness. The recent update to the Administrative Measures for Strategic Investment in Listed Companies by Foreign Investors (hereinafter, the “new measures”) reflects this commitment, targeting an increase in foreign investor participation in China’s A-share market. For nearly two decades, China’s “strategic investment” pathway provided foreign investors with access to shares in A-share listed companies, but strict requirements—such as high minimum investment thresholds and prolonged lock-up periods—made it accessible only to select large investors.
The new measures, effective December 2, 2024, relax many of these restrictions to attract a broader and more diverse range of foreign investors. Key changes include lowering the minimum shareholding threshold from 10 percent to 5 percent, reducing the asset requirements from US$100 million to US$50 million in assets, and shortening the lock-up period from three years to one. Additionally, foreign investors can now use equity from unlisted overseas companies as consideration, while new investment routes, like tender offers, enhance flexibility.
In 2005, China introduced the Strategic Investment Regime as part of its broader efforts to open up its financial markets to foreign capital while retaining a level of control over sensitive industries. This framework allowed qualified foreign investors to acquire strategic stakes in Chinese A-share listed companies, aiming to promote foreign participation in the domestic market.
However, the stringent requirements—such as high minimum investment thresholds and extended lock-up periods—restricted this pathway to a limited pool of large, multinational investors. The regime reflected China’s cautious approach at the time, seeking to balance openness with economic stability and control over critical sectors.
A decade later, in 2015, China implemented its first significant revisions to the Strategic Investment Regime. These amendments sought to make the investment process more accessible by easing certain restrictions, aiming to encourage foreign capital inflow as China continued its gradual integration into global markets.
While some requirements were relaxed, the fundamental limitations—such as high entry thresholds and complex approval processes—remained in place, meaning that access to China’s A-share market was still primarily confined to major institutional investors with substantial capital.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
China
Less is More: Rethinking Indonesia’s Tariffs on China
Rising concerns over China’s industrial overcapacity have led countries to impose higher tariffs, including Indonesia’s planned 200% tariffs on Chinese goods, risking Indonesia’s competitiveness and economic security.
Tariffs Escalate Amid Concerns of Overcapacity
Concerns regarding China’s industrial overcapacity have prompted countries to increase tariffs on Chinese goods. Indonesia, following the U.S. example, plans to impose tariffs as high as 200 percent on various Chinese imports, including textiles and ceramics. This response aims to safeguard local jobs from the influx of inexpensive Chinese products.
Economic Impact of Tariffs
These tariffs are designed as safeguards and anti-dumping measures against potential job losses in Indonesia. However, the ongoing investigations have not definitively shown that China’s practices are the root cause of these issues. The political appeal of broad tariffs might lead to unintended consequences, such as reducing the overall competitiveness of Indonesian exports and risking retaliatory measures from affected countries.
Dependency on Chinese Goods
Indonesia heavily relies on Chinese manufacturing inputs, which constituted over 26 percent of its intermediary goods imports in 2021. With competitive pricing, these inputs have enhanced Indonesia’s export capabilities, particularly to markets like the U.S., where the trade surplus increased from $8.58 billion in 2019 to $11.96 billion in 2023. Reducing trade openness may ultimately undermine the Indonesian economy’s resilience against geopolitical challenges.
- Wegovy: The Popular Weight-Loss Drug Now Available in China
- China Implements New Measures to Increase Foreign Investment in A-Share Market
- Less is More: Rethinking Indonesia’s Tariffs on China
- What does China want from the next US president?
- China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
