The 2018 annual meeting of the Boao Forum for Asia was held recently. Jack Ma (founder of Alibaba) talked about the China-US trade war.
Made in China 2025 is the first 10-year strategic plan of China in building a strong power in manufacturing. The plan was made based on the new international and domestic environment aimed at improving the quality and level of China’s manufacturing industry. It is a blueprint for China’s plan to transform the country into a hi-tech powerhouse that dominates advanced industries like robotics, advanced information technology, aviation, and new energy vehicles.
1. Brief introduction
When traveling in mainland of China and you probably want to get a SIM card and activate a data plan in order to use the internet and avoid hefty international data fees (despite the fact that there is a lot of free WIFI at the airports, hotels and restaurants). By the way, Internet access is now a basic human right according to the United Nations Human Rights Council (gizmodo.com 2017). It is easy to get a local SIM card in China, the two major telecommunication companies are China mobile (中国移动) and China Unicom (中国联通). 4G covers most of Chinese cities. 3G Coverage is over 99% of China population. Coverage is nearly everywhere except some rural part of Tibet & Xinjiang. A prepaid SIM card can be used immediately after simple activation.
After the happening of the 2007-2008 global financial crisis, a number of economists and even famous businesspersons had predicted that the next global crisis would stem from China because of the fear about the slower economic growth, large fiscal deficits and real estate bubble. For example, as early as 2013, Hong Kong property tycoon Li Ka-shing had been selling his assets in mainland China and Hong Kong and moved his family wealth to UK. Many believed that Li’s withdrawal from China showed the market fear of a possible hard landing of the Chinese economy. However, similar to the fact that economists always failed to predict a financial crisis, China is actually NOT on the edge of a financial crisis for the below reasons:-
Last year, China surpassed the U.S. and became the largest plug-in electric car markets in terms of total annual sales, China was therefore ranked as the best-selling plug-in electric passenger car country market in the world in 2015. With strong government support and relevant encouraging policies, China is on track to become the global leader in electric vehicle (EV) market. Below are the main reasons:-
Since economic reform in the 1980s, China keeps buying U.S. Treasury Bonds for more than 3 decades. What’s more, the US trade deficit with China is the largest in the world (about 30 billion per month) which is usually regarded as a sign of global economic imbalance (census.gov 2016). While China’s huge holding of U.S. securities is widely evaluated as a nuclear bomb, below are the big reasons behind the long-term national behavior:-