Latest news with #TwoSessions'
Malaysian Reserve
11-07-2025
- Business
- Malaysian Reserve
Upgrade China to ‘Attractive' amid private sector resurgence
Targeted support measures for businesses suggest renewed recognition among leaders that the sector is not a threat to control by iFAST RESEARCH TEAM OVER the past few years, China's economic trajectory has increasingly drawn negative sentiment. One of the most significant concerns has been the country's pivot toward a more centralised, top-down economic model. This shift has been characterised by a series of regulatory crackdowns across various sectors, most notably within the technology industry. Leading private enterprises, once seen as flag bearers of China's economic dynamism, were subjected to stringent oversight, resulting in a chilling effect on innovation and investment. These actions led to prolonged periods of depressed valuations for some of China's most prominent technology firms. While many of these challenges remain unresolved and will take significant time to unwind, the past six months have brought encouraging signs of policy recalibration. Targeted support measures for private businesses suggest a renewed recognition among Chinese leaders that the private sector is not a threat to control, but a necessary engine for sustainable growth. A Turning Point In February, a symbolic policy shift took place as President Xi Jinping convened a high-profile symposium with top tech entrepreneurs, including the long-absent Jack Ma. His reappearance — after years on the sidelines — sent a clear signal of political recalibration. Xi's message, encouraging entrepreneurs to contribute to national innovation, signals a strategic recognition that private enterprise is essential to advancing China's tech ambitions. The move also serves as a measure aimed at rebuilding trust with the business community and investors. This rhetorical shift was quickly followed by tangible policy action. During the annual 'Two Sessions' in March, policymakers unveiled a series of measures aimed at institutionalising support for the private sector. These included commitments to expand financial access for private firms, enable their participation in major infrastructure projects, and foster involvement in advanced manufacturing and the digital economy through a new public-private partnership (PPP) framework. These moves are intended to diversify capital channels and re-anchor private enterprise within the national development agenda. A further milestone came with the implementation of the Private Economy Promotion Law on May 20, 2025, the first law explicitly dedicated to supporting private businesses. The legislation aims to ensure fair competition, equal access to market resources and legal protections for private enterprises. Its passage marks a significant shift, signalling that private sector growth is now supported by a robust legal framework. These developments collectively suggest a strategic rebalancing of China's economic model. Looking ahead, we believe that China's economic growth will become increasingly diversified, driven by both the scale and stability of state-owned enterprises and the agility and innovation of the private sector, laying the groundwork for a more resilient and competitive Chinese economy. Key to Economic Growth According to All-China Federation of Industry and Commerce vice chairman Qiu Xiao-ping, the private sector is a cornerstone of China's economy — contributing over 50% of tax revenue, 60% of GDP and more than 80% of urban employment. Its vitality is essential to tackling core challenges. China's bleak labour market has been a focal point of criticism in recent years. The downturn began in 2022, when regulatory crackdowns on the technology and education sectors led to widespread layoffs. This abrupt policy shift not only disrupted employment but also severely eroded investor confidence, triggering an equity market slump. By mid-2023, youth unemployment had soared to over 23%. The resulting labour market fragility weighed heavily on household sentiment and dampened consumption demand. Recent signs, however, point to a gradual reversal. With the government now signalling stronger support for high-tech sectors, job creation is beginning to show green shoots. A notable example is Tencent Holdings Ltd's announcement of its largest internship recruitment programme, which plans to onboard 28,000 interns over the next three years, with a strong focus on full-time conversion. As leading technology firms expand, they are likely to absorb a significant portion of China's educated youth, who will be a key demographic for long-term productivity. A more stable labour market is fundamental to China's strategic shift toward consumption-driven growth. In 2025, retail sales have shown encouraging resilience, with year-on-year (YoY) growth surpassing 5% since March. While short-term stimulus measures, such as consumption vouchers, have contributed to the rebound, their impact is inherently limited, as seen in the fading effects of similar efforts in 2024. As such, a healthier labour market, anchored by private sector expansion, would provide the structural support needed to maintain momentum, especially in the face of external trade headwinds. Consumption and AI Momentum As China's policy direction increasingly leans toward stimulating consumption and accelerating artificial intelligence (AI) adoption, the positive impact is becoming visible in corporate earnings. The MSCI China Index has shown a notable rebound, with the first quarter of 2025 (1Q25) earnings growth gaining strong momentum. Information technology led the pack with nearly 40% YoY earnings growth, followed by communications services at 21%, while consumer staples and consumer discretionary also posted robust double-digit gains. China's emerging AI wave is at the heart of this rebound. In 1Q25, companies deeply integrated into the digital economy and AI development saw substantial revenue uplifts. Alibaba Group Holding Ltd, Tencent and Inc all reported double-digit growth in marketing revenues, powered by AI-driven advertisement targeting tools that improved customer segmentation and conversion efficiency. Meanwhile, cloud revenue surged by 18% for Alibaba and 42% for Baidu Inc, as AI workloads drove greater demand for scalable infrastructure. While AI software innovation in China is accelerating, hardware remains a strategic bottleneck. US export controls have effectively blocked access to cutting-edge AI chips, such as Nvidia Corp's A100 and H100, creating a critical gap in China's AI development stack. In response, Chinese tech leaders are intensifying efforts in domestic chip design. Huawei Technologies Co Ltd's Ascend series, though still behind Nvidia's chips in raw computing power, are capable of supporting inference tasks for models like DeepSeek's R1, underscoring progress in localised solutions. Notable strides are also being made in consumer-grade chips. Huawei's Kirin 9000 and Xiaomi's recently launched XRing O1, the first Chinese-designed smartphone system-on-chip built on a three-nanometres (nm) process, represent significant advancements. While these chips have yet to match the performance of Western-designed counterparts in AI training, they function as important commercial enablers. China's drive for domestic chip production has also spurred growth for its leading foundries, notably Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor Ltd. However, Chinese foundries lack access to ASML Holding's cutting-edge extreme ultraviolet light (EUV) lithography tools, limiting them to 7nm processes using older deep ultraviolet (DUV) technology — with yield rates reportedly still below 50%. This creates a cost-efficiency trade-off: While chip demand is climbing, foundries face heavy capital expenditures for research and development (R&D) and equipment upgrades, putting pressure on short-term profitability. Despite these headwinds, the broader push underscores China's long-term commitment to semiconductor self-reliance. Foundry investments are increasingly viewed not just as commercial endeavours but as strategic imperatives. Even at the expense of near-term margins, sustained policy support suggests these efforts will remain a national priority amid rising geopolitical and technological competition. Upgrading Valuation The recent structural reforms supporting China's private sector represent a pivotal shift in the country's economic trajectory. By creating a more favourable environment for private enterprises, these changes are expected to boost earnings growth, innovation capacity and productivity, especially in the technology sector, which sits at the nexus of AI advancement and rising domestic consumption. The views expressed are of the research team and do not necessarily reflect the stand of the newspaper's owners and editorial board. This article first appeared in The Malaysian Reserve weekly print edition
Khaleej Times
29-03-2025
- Business
- Khaleej Times
China and the UAE: Forging shared futures through strategic convergence
In March, as Muslims worldwide observe the blessed month of Ramadan, China welcomes its annual political highlight — the 'Two Sessions' comprising the third session of the 14th National People's Congress (NPC) and the third session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC). Serving as a vital window for the world to observe China's whole-process people's democracy, this year's meetings offer UAE observers not only deeper insights into China's development roadmap but also reveal striking alignment in the two nations' development philosophies and shared values — a convergence that unlocks new opportunities for bilateral cooperation. China and the UAE share development strategies anchored in economic growth and social welfare. According to a report on the work of the Chinese government, China's GDP rose to 134.9 trillion yuan, with a year-on-year increase of five per cent — ranking among the world's fastest-growing major economies and continuing to contribute about 30 per cent to global economic growth. A total of 12.56 million urban jobs were created, disposable income per capita grew by 5.1 per cent in real terms, and greater support was provided for compulsory education, basic old-age insurance, basic medical insurance, and social assistance. For 2025, China projects continued five per cent GDP growth while reorienting economic policy toward social priorities and promoting consumption: A series of new measures have been proposed in social security, assistance to disadvantaged groups, services for the elderly, and reducing the burden of childbirth, upbringing and education on families, highlighting China's adherence to the people-centred development concept. Concurrently, the UAE maintained robust GDP growth in 2024, rolling out citizen-centric initiatives in housing subsidies, healthcare modernisation, education reform, and infrastructure upgrades. Against a backdrop of global economic uncertainty, this strategic parallelism not only elevates living standards domestically but injects much-needed stability into worldwide recovery efforts. China and the UAE demonstrate convergent tech-forward trajectories. In 2024, China's national R&D expenditure surged to 3.6 trillion yuan, an eight per cent real-term growth, supporting nearly 500,000 enterprises holding valid invention patents. Five national innovation hubs were established in frontier fields including next-gen energy storage, micro-nano manufacturing, molecular pharmaceuticals, humanoid robotics, and embodied AI systems — yielding 672 critical technological breakthroughs and incubating 182 startups. New energy vehicle production surpassed 13 million units, capturing over 60 per cent of global output, while integrated circuit exports hit a historic high of 1.1 trillion yuan. The global ascent of Chinese generative AI — epitomized by DeepSeek's cost-efficient models rivaling Western counterparts — has reinvigorated confidence in nations like the UAE pursuing sovereign AI capabilities. China prioritises future industries Looking to 2025, China prioritises future industries from biocomputing to quantum tech, embodied intelligence, and 6G networks. Its 'AI Plus' action plan accelerates high-quality growth through intelligent manufacturing upgrades and industrial ecosystem expansion. Meanwhile, the UAE intensifies its innovation drive — Dubai's D33 Agenda is reshaping its digital economy through blockchain integration and smart city deployments. As technological disruption reshapes global value chains, this dynamic synchronization positions both nations to harness innovation dividends across their development matrices. China and the UAE exemplify a shared commitment to open, mutually beneficial global engagement. President Xi Jinping's declaration — 'China's door will never close — it will only open wider' — resonates through concrete action: the nation now serves as the primary trading partner for over 150 countries and regions, with 23 free trade agreements spanning five continents. In 2024, China's total trade volume surpassed 43 trillion yuan, cementing its eighth consecutive year as the world's top merchandise trader. Foreign investment inflows surged, evidenced by a 9.9 per cent year-on-year increase in newly established foreign-invested enterprises. Visa-free policies — including unilateral visa exemptions for 38 countries and transit visa waivers extended to 240 hours for 54 nations -- further streamline global connectivity. This commitment is mirrored by the UAE's meteoric trade growth. The Emirates' 2024 foreign trade hit record levels, with China-UAE bilateral trade exceeding $100 billion — solidifying China's position as the UAE's top trading partner for 11 consecutive years. Amid global headwinds of protectionism and deglobalization rhetoric, the two nations' synchronized pursuit of institutional openness positions them as the international community's go-to partners. Serving as twin anchors China and the UAE serve as twin anchors underpinning global development and stability. Since President Xi Jinping launched the Global Development Initiative (GDI) in 2021, this framework has delivered tangible results across developing countries. China's $4 billion Global Development and South-South Cooperation Fund (GDSSCF) has financed over 200 poverty-alleviation projects. On Palestine, China has dispatched four tranches of emergency humanitarian aid since October 2023. In May 2024, President Xi pledged an additional 500 million yuan for Gaza's reconstruction — complemented by 25 million yuan in food/medical supplies through GDSSCF channels. African partnerships showcase scale: 20 agricultural demonstration centres across 50 countries, 300 agricultural collaborations, 130 hospitals, 170 schools, 40 stadiums and capacity-building programs for 160,000 professionals. Meanwhile, the UAE marked nationwide celebrations of Sheikh Zayed Humanitarian Day, while Dubai launched the 'Father's Endowment' charity fund -- initiatives epitomizing Emirati values of generosity and civic dedication. Amid declining foreign aid commitments from some countries, China and the UAE stand united in delivering equitable and sustainable development opportunities for the Global South, emerging as a catalytic force accelerating collective progress across emerging economies. In 2025, China will solemnly commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. As this year's rotating chair of the Shanghai Cooperation Organization (SCO), China will host the SCO Summit in Tianjin this autumn. Marking three decades since the Beijing World Conference on Women, China will convene another Global Women's Summit in the latter half of the year. This year also marks the 41st anniversary of diplomatic relations between China and the UAE. Standing at a new historical juncture, the peoples of both nations, under the visionary leadership of President Xi Jinping and President Mohamed bin Zayed Al Nahyan and driven by shared development approaches and values, will work together to forge an even brighter future.
Daily Tribune
10-03-2025
- Business
- Daily Tribune
China to use AI in elder care as population ages: official
China said Sunday it will accelerate the use of artificial intelligence and big data in elderly and social care as it bets on new technologies to drive economic growth despite an ageing population. The announcement comes as officials grapple with the country's low birth rate and a declining workforce. "We will accelerate the development and application of new technologies and products such as big data and artificial intelligence in the fields of social assistance, elderly care services, and services for the disabled," civil affairs minister Lu Zhiyuan said at a news conference during China's annual "Two Sessions" political gathering. The move would make services "more convenient, more accessible and more standardised", Lu said. China's population fell for the third year in a row in 2024 and it already has more than 310 million people aged 60 and over. As the workforce shrinks, the government has increasingly looked to technology to drive future economic growth. Local governments have rushed to implement DeepSeek's AI model into their services since the privately run Chinese company released the latest version of its chatbot in January. DeepSeek's cut-price model outperformed many of its Western AI competitors despite US curbs on sales of advanced AI chips to Chinese companies. President Xi Jinping pointed to official support for the sector when he held a rare symposium for private companies last month that included several AI and technology bosses, telling them to "show their talents". DeepSeek's founder Liang Wenfeng attended, along with representatives from top technology firms such as Tencent, Huawei and Xiaomi.
Gulf Today
10-03-2025
- Business
- Gulf Today
Step back from separatism, China tells Taiwan
China's military vowed on Sunday to tighten its 'noose' around Taiwan if separatism on the island escalated, warning independence proponents to step back from the 'precipice.' Beijing considers the self-ruled island of Taiwan to be part of its territory and has not ruled out using military force to claim it. 'The more rampant 'Taiwan independence' separatists become, the tighter the noose around their necks and the sharper the sword hanging over their heads will be,' army spokesman Wu Qian said in an interview published by state broadcaster CCTV. 'The PLA is a force of action in countering separatism and promoting reunification,' said Wu, using an acronym for China's military. 'You've ridden your steed to a precipice of a cliff, but behind you lies land -- if you persist in taking the wrong course, you will meet a dead end,' he warned. The comments, made during China's 'Two Sessions' annual political gathering, come days after Beijing announced a 7.2 percent increase to its defence budget in 2025. The increase, the same percentage as in 2024, will drive the rapid modernisation of China's armed forces as strategic competition with the United States intensifies. It is above the government's annual GDP growth target of around five percent. Calling the increase 'limited reasonable and stable,' Wu said the extra cash would be used to develop 'combat forces in new fields and with new qualities,' and to enhance reconnaissance, joint strike and battlefield support capabilities. China faces 'one of the most complex neighbouring security situations in the world,' army spokesman Wu said, adding that it had to deal with 'severe challenges' in defending its sovereignty and territorial integrity. But its sweeping territorial claims over areas controlled by other governments have raised fears of a regional clash. Taiwan is a potential flashpoint for a war between China and the United States, which is the island's most important backer and biggest arms supplier. On Friday, China's Foreign Minister Wang Yi told a press conference that Taiwan coming under China's control was the 'shared hope of all Chinese people, the general trend of the time, and a righteous cause.' 'Using Taiwan to control China is just like trying to stop a car with the arm of a mantis,' he said. Last month, Taiwan's Ministry of Defence condemned China for holding 'live-fire' exercises to the island's south. Beijing defended the drills as 'routine.' China's military spending has been on the rise for decades, broadly in line with economic growth.
Express Tribune
09-03-2025
- Business
- Express Tribune
China to boost AI in elderly care amid ageing population, says official
In China, Currently, men retire at 60, while women in blue-collar jobs retire at 50, and those in white-collar roles retire at 55. PHOTO: REUTERS Listen to article China said Sunday it will accelerate the use of artificial intelligence and big data in elderly and social care as it bets on new technologies to drive economic growth despite an ageing population. The announcement comes as officials grapple with the country's low birth rate and a declining workforce. 'We will accelerate the development and application of new technologies and products such as big data and artificial intelligence in the fields of social assistance, elderly care services, and services for the disabled,' civil affairs minister Lu Zhiyuan said at a news conference during China's annual 'Two Sessions' political gathering. The move would make services 'more convenient, more accessible and more standardised', Lu said. China's population fell for the third year in a row in 2024 and it already has more than 310 million people aged 60 and over. As the workforce shrinks, the government has increasingly looked to technology to drive future economic growth. Local governments have rushed to implement DeepSeek's AI model into their services since the privately run Chinese company released the latest version of its chatbot in January. DeepSeek's cut-price model outperformed many of its Western AI competitors despite US curbs on sales of advanced AI chips to Chinese companies. President Xi Jinping pointed to official support for the sector when he held a rare symposium for private companies last month that included several AI and technology bosses, telling them to 'show their talents'. DeepSeek's founder Liang Wenfeng attended, along with representatives from top technology firms such as Tencent, Huawei and Xiaomi.
