China is Determined to Energize Market Entities to Boost Development
In China, private-sector market entities like the self-employed businessmen, small and medium-sized enterprises contribute more than 50% of tax revenue and over 60% of GDP. However, in recent years, many market players faced enormous challenges and struggled to survive. In 2021, the development trend of education service industry, real estate, Internet and other industries have experienced significant contractions and impacts; in March this year, tourism, catering, and hotel industries were hit hard and forced out of business by new waves of epidemic.
Under the complex circumstances, if Chinese market entities continue to decrease sharply, it may lead to a reduction in job opportunities and a decline in the income level of practitioners. An expert interviewed by Caijing said that China’s overall development is facing many challenges. In this context, China should encourage those who can create new technologies and new knowledge to make greater contributions. This requires the authorities to further strengthen intellectual property protection, and at the same time strengthen social security, stimulate the development of start-up businesses, and ultimately revitalize the market.
Declining Marriage Numbers in China Hastens the Demographic Crisis
In the past few decades, China’s fertility policy has been adjusted several times. In this process, complex factors such as the increase in young people’s education level and the increase in the cost of marriage have made more and more young people no longer regard marriage as an indispensable part of their lives. More and more young people who have reached the age of marriage choose to live alone in the city and lead a single life.
Some scholars believe that the reason for the decline in the number of marriage registrations is that many people choose to marry later, or live alone. This is not a new phenomenon, but an inevitable consequence of the laws of social development. Whether people get married or not, there are costs and benefits to be weighed. If a person cannot get the expected benefits from marriage, he would rather stay single. It is foreseeable that as the number of marriages decreases year by year, it will directly reduce the birth rates, and at the same time have a huge impact on consumption in the household sector.
The Fed Raises Interest Rates as Expected to Fight Inflation
The Federal Open Market Committee (FOMC) concluded its meeting on March 16 by raising the federal funds rate target range by 25 basis points, to a range of 0.25% to 0.50%. This is the first Fed rate hike since the end of 2018 heralding a broad policy shift. It is aimed at getting monetary policy back to normal
The global economy is in a situation of stagflation caused by supply shocks, and the global market is under the double impact of geopolitical situations and uncertain growth prospects. Federal Reserve chair Jerome Powell has been signaling for months that the tighter monetary policy is an absolute necessity. Powell has also repeatedly stressed the uncertainty Fed officials face as they deal with the fallout from the outbreak and the conflict in Ukraine, saying officials are prepared to steer policy in a more disruptive direction. Following the Fed, central banks around the world will set to raise interest rates.
China is Reshaping Its Auto Industry Despite Challenges
China’s auto consumption environment is changing, but some automakers have not made corresponding adjustments in time. The cost of losing the Chinese market is far more than car sales numbers, but also the possibility of exploring the future of the auto industry. From 2018 to 2022, a number of joint venture car companies have faded out of China. Each of these joint venture brands has its own problems, but one thing they have in common is that they all failed to make timely adjustments to the Chinese market.
In terms of market size and future prospects, the Chinese auto market is the best single market in the world. In the eyes of industry veterans, it is unimaginable that some companies will voluntarily abandon the Chinese market. Although joint venture automakers have left China one after another, more brands have adjusted their product strategies and enhanced their local R&D capabilities.
