How Hong Kong can help defend the rules-based order
For several years, Chinese officials have been talking about 'changes unseen in a hundred years' without elaborating what they have in mind. Looking at the drastic changes to the world order since Donald Trump returned to the White House, one can only conclude that the Chinese have spoken with uncanny prescience.
Advertisement
There have indeed been many changes to the international system in recent years, starting with a
rapid deterioration of US-China relations since Trump's first term as US president. A body of opinion was formed in political circles that China was taking advantage of America and embarking on a 'hundred-year marathon' to supplant the US as a global leader.
In the West, some argue there is an imbalance in China's economy, and that the country's rise is a source of disruption or 'distortion' of the global economy. An imbalance has arisen because China is producing too much and consuming too little. Some point to the fact that consumption constitutes less than 40 per cent of China's economy, compared to about 70 per cent in the case of the US.
There are also concerns that China has an
overcapacity in manufacturing. In 2024, China accounted for 31.6 per cent of global manufacturing output, almost double that of the US (15.9 per cent), far outstripping that of other industrial nations. A theme in many economic analyses of China is that it should have adopted more aggressive measures to boost consumption and enable its domestic market to absorb its excess production.
Advertisement
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
24 minutes ago
- South China Morning Post
More investor attention coming to China advancements in AI, humanoid tech: Morgan Stanley
China's advancements in artificial intelligence (AI) and humanoid technology will continue to capture the imaginations of investors as the world turns its focus to the region, according to Morgan Stanley 's director of pan-Asia research. Advertisement 'The DeepSeek announcement has shifted the fundamental discussion about China to technological innovation,' said Magdalena Stoklosa in an interview last month. 'This theme is multi-year and incredibly important.' Her team identified technological diffusion and the spread of AI across economies as key long-term research themes. AI start-up DeepSeek's breakthroughs earlier this year in large-language models sparked a rally in Chinese stocks. In February, the US investment bank upgraded Chinese stocks to equal weight from underweight, due to improving valuations and a significant shift towards new-economy companies. 'We still see that China is underweight from a perspective of global emerging markets positioning and it should effectively be at least close,' Stoklosa said. Advertisement Over the next 12 to 18 months, she said it was important to keep an eye on how various AI models work, spread through the economy and become monetised. 'In China, the discussion is layered with government support for AI infrastructure, a thriving innovation scene with start-ups, mega industry players, and a strategic push to build open-source models that make access to AI quicker and more affordable for many corporations,' she added.
South China Morning Post
an hour ago
- South China Morning Post
Mainland Chinese market for weight loss and diabetes drugs to soon be more crowded: report
Competition in the mainland Chinese market for diabetes and weight loss drugs is set to intensify as more than 60 late-stage drug candidates are undergoing clinical trials, according to a recent report. Up to 20 biosimilar or generic copies will vie for market share and add pricing pressure after Denmark-based Novo Nordisk's semaglutide product loses patent protection in China next year, according to Boston-based global consultancy L.E.K. Consulting. Novo Nordisk's patent will expire in 2031 in Japan and Europe and 2032 in the US, according to its latest annual report. 'The landscape in China is expected to become even more competitive than in developed markets, where the GLP-1 category is primarily dominated by leading multinational pharmaceutical companies,' said Helen Chen, L.E.K.'s global healthcare and life sciences co-head, in a report on May 15. GLP-1 drugs mimic natural hormones, which signal the pancreas to release more insulin when blood-sugar levels are high, and also support weight loss by slowing digestion and reducing appetite. 04:12 One reporter's weight-loss journey and what a 'healthy body' means to him One reporter's weight-loss journey and what a 'healthy body' means to him Driven by sales growth of semaglutide, Novo Nordisk became the 10th largest drug company in the world in terms of revenue. London-based consultancy Evaluate said the firm's revenue rose 25 per cent to US$42.1 billion last year.
South China Morning Post
an hour ago
- South China Morning Post
Hong Kong to stick with 2% to 3% growth goal despite strong first quarter: Chan
Hong Kong will maintain its economic growth target of between 2 and 3 per cent for this year, the city's finance chief has said, while describing the anticipated rapid gains in the first quarter as an 'exception' rather than the norm. Financial Secretary Paul Chan Mo-po also said on Monday that authorities would 'prepare for the worst' despite the easing of tariffs amid the US-China trade war, but added that the recent rise in tourism would help offset sluggish domestic consumption. The government earlier set its growth forecast for gross domestic product at between 2 and 3 per cent for the year, following a 2.5 per cent year-on-year expansion in 2024. 'The overall growth forecast has not been adjusted upwards despite [the first quarter's] performance,' Chan told lawmakers on Monday. 'That's because the rapid growth in the first quarter was the exception rather than the norm, and there may be wild changes in the US government's policy. 'So we have to manage our risks. We have to prepare for the worst.'
