China Pushes for New Self-Reliance Economic Model
The Chinese government is promoting the economic “dual circulation” model. To properly handle the internal and external circulation, the prerequisite is to continue to comprehensively deepen domestic reform and make every effort to open up the domestic market circulation, and draft new policies to promote technological innovation. The state will increase investment in post-disaster recovery and reconstruction projects, as well as urban infrastructure, such as schools, hospitals, and community services.
The contradictions or conflicts caused by the novel coronavirus pandemic have severely impacted the current world development pattern and global economic order, and the world has been in a state of drastic turbulence. In the face of the current situation, the decision-makers have put forward a domestic and international “dual circulation” of development thinking. China’s “dual circulation “ is not only a response to repairing economic development in the changing era, but also a long-term drive for internal and external economic balance.
Newly Planned Reform Poses Uncertainty for Retail Pharmacies
China is about to implement radical health insurance reforms. This means that a large number of retail pharmacies will face uncertainties. In fact, retail pharmacies will need to take innovative measures to face challenges and adapt to these new rules.
Once initiated, the new reform will redirect half of the individual accounts’ resources to social accounts which will reimburse more outpatient costs. In general, this reform is designed to deal with two tricky issues: high outpatient costs of chronic-disease treatment, and inefficient uses of the individual accounts. Going further, these reforms will affect the use of individual accounts and change people’s drug purchasing behavior patterns. Furthermore, the structure of individual accounts will also be affected. As a result, sales volume of retail pharmacies will likely change accordingly. When new rules take effect, retail pharmacies will not only bear pressures of lowering drug prices, but they will also suffer possible risks of losing customers.
Leading Chinese IT companies are Being Banned by US Government on National Security Grounds
The US government has repeatedly restricted leading Chinese IT companies from operating in the United States on the grounds of endangering “national security”. Faced with such a life-and-death crisis, Chinese IT companies like Tencent and TikTok are actively planning innovative responses.
As all know, the US government is actively taking measures to completely ban WeChat from operating in the America and other countries. The Trump administration is convinced that this mobile application threatens US national security and foreign policy. It is worth noting that although it has been nearly two months since the ban was issued, the US has yet to produce evidence that WeChat or TikTok endangers US. national security. For Chinese companies, in addition to operating in accordance with the local law, they must also now learn how to adapt to unpredictable political trends overseas.
ByteDance Faces New Challenges and Its Adjustments of Strategy Will Set an Example for Other Internet Companies
On September 28, the US District Court suspended the TikTok ban. But inside ByteDance , people are calm as usual. Why? Because teams in this company have goals that they need to worry about. In 2020, the company’s revenue reached 220 billion yuan. A reporter of Caijing even exclusively learned that a number of business adjustments related to commercialization are taking place. This series of adjustments corresponds to the three most important income channels of ByteDance: advertising, live broadcast e-commerce, and education. However, some outstanding companies in these industries were once customers of ByteDance.
All companies need to grow. When the number of users in China reaches certain ceilings, and overseas development encounters devastating difficulties, ByteDance will need to compete with its own customers.