As China Targets Consumption in Bid to Revive Growth, Some Sectors Leading the Rebound
Currently, the recovery of China’s different sectors of consumer market presents structural differences. Although there are more people shopping, the per capita consumption has not increased significantly. The recovery of food industry and tourism, which is more rigid in demand, has rebounded strongly. In comparison, the market of non-rigid consumer goods still lacks momentum.
Some experts interviewed by Caijing reporters said that China’s “retaliatory consumption” has already appeared. But other experts hold a relatively cautious attitude. Different people in different industries in China have varied perspectives to the recovery of consumption. On the basis of weakening external demand, if domestic demand is not fully released, the sales of products might be slow. In this case, enterprises will be reluctant to increase investment which will lead to disruption of the economic chain. In fact, consumption and investment are expected to become two important pivots supporting China’s economic development in 2023.
Banking Stress in Europe and US Stokes Financial Crisis Fears
The global financial crisis of 15 years ago appears to be making a comeback. Investors looked around, wary of who would be the next failing financial institution. Under the crisis of high interest rates and economic recession, the banking industry in Europe and the United States once again stoked fears among investors. Will the scenario be different this time? Although many banks in Europe and the United States have been acquired, this does not mean that the storm in the banking industry in Europe and the United States has stopped.
Market concerns about the spread of the banking crisis in Europe and the United States have gradually subsided. However, the current market concerns about the turmoil in the banking industry have gradually shifted to the real economy. If concerns over banking conditions persist for even longer, leading to tighter funding costs and funding conditions, global growth will witness a sharp slowdown.
Hubei Migrant Workers Facing Difficult Choices in Kangle County of Guangzhou
At the beginning of this year, the transformation project of Guangzhou Kangle Village kicked off. When the excavator came to the entrance of the village, many residents here began to wonder if it was time to leave. Over the years, more and more people from Hubei migrated here. By the end of 2022, Kangle Village and the adjacent Lujiang Village had a total of 130,000 Hubei residents. They have created a unique clothing production model in the Kanglu area, and with an astonishing speed of shipment within 24 hours, they have become a unique village in the national fast fashion industry chain.
During this period, Guangzhou was also developing rapidly. The land of Kangle Village, which was still a suburb at that time, soon became the core area of Guangzhou. The houses and factories here will soon be demolished. Workers and factory owners had two options: either move to Qingyuan, which borders Guangzhou, or move the factory back to Hubei.
TikTok’s Future Unclear after the Bitter Congressional Hearing
Following the U.S. Congressional hearing, all parties are concerned about the fate of TikTok. In addition to being banned and forced to sell, will there be a third possibility for TikTok in the United States? Some people in the industry said that TikTok may have a third way out, which is technology transfer.
Many observers in the United States believe that the purpose of the congressional thrashing is to seek excuses for the next step to ban or force the sale of TikTok in the United States. Recently, TikTok has been under continuous pressure from the US government and the legislature. The interviewed people and experts in the United States believe that the core of the U.S. lawmakers’ suspicion is that TikTok’s collection of data threatens the privacy and security of American citizens. Before the hearing, TikTok’s CEO Shou Zi Chew had provided a written testimony to the lawmakers.
