Two sectors to watch What needs fixing Experts Soft-power credentials
r of the
state of the nation/china Yea Film industry: Chinas largest Environment: China has China has seen a great boost in Traditional Chinese medicine:
China in corporations are staking
billions on the countrys film
industry. Dalian Wanda is
banned the ivory trade and
re-pivoted on climate change.
But its cities are still cloaked in
economic and military power in
recent decades but the current
leadership has scored poorly in
Chinas ancient practices
in herbal medicine and
acupuncture are increasingly
his hands?
building a state-of-the-art smog and its residents fed up. regards to boosting soft power. popular overseas as an
studio in Qingdao province, To be an environmental leader Cary Huang alternative form of healing,
and Alibaba and Tencent have the country must wean itself Senior writer, South China with tcm centres popping up
rooster launched their own production off coal faster and put force Morning Post in Europe and North America
companies. However, poor behind anti-pollution efforts. and foreigners flocking to
Xi Jinping may remain popular but with a worsening Devaluation box-office results in 2016 and The Great Firewall: Even Given that the economy has China for tcm training.
economy, dangerous pollution levels and a newly lukewarm reviews for the Pokmon Go has reportedly been slowing down for a few Zhang Yimou: China has few
priciest film ever shot on the run afoul of Chinas censors, years, I think it has probably hit directors with the overseas
unpredictable relationship with the US, how Trump mainland, The Great Wall, have showing just how pervasive the bottom. Once youve hit the reach of Zhang, director of
strong is the presidents grip on his country? dashed expectations that China internet controls have become. bottom the only way to go is up. Raise the Red Lantern and
will overtake the US as the top A push for greater innovation Zhu Tian Red Sorghum. Hes also the
By Justin Bergman movie market anytime soon. will be difficult when Economist at China Europe mastermind behind the 2008
Illustration Giacomo Gambineri Electric cars: China is not just scientists, entrepreneurs, International Business Olympic opening gala and
the worlds largest car market: educators and creative types School in Shanghai now a frontrunner to return
in 2015 it became the leader cant access information to the spotlight for the 2022
in electric vehicles too, thanks from beyond the wall. The Chinese economy has Winter Games.
to government subsidies. The hukou system: Chinas needed to be rebalanced for Pandas: Cuddly, docile and
Such incentives have led to a boom created opportunities more than a decade. But its enduringly symbolic of China.
Pollution boom in electric-car start-ups for hundreds of millions of done well in that period. Its a There could be no better soft-
In a pivotal year for his leadership, the State of the economy Firewall but theres been a downside, migrant workers across the bit like a Ponzi scheme: even if power tool for the country,
aim of Chinese president Xi Jinping is to While larger reforms will take with companies inflating their country but the outdated you know its a Ponzi scheme particularly at a time when
minimise distractions. Stability is the key time, Chinas short-term goal production numbers to pocket hukou (household registration) theres still profit to be made mistrust of Chinese might
is maintaining the stability of What needs more cash. A revised subsidy system restricted access to before it becomes a problem. runs deep.
concern, not change. Harmonious relations its economy. Among the more fixing scheme launched at the start of education and health care. Steve Tsang
with Chinas neighbours and the erratic immediate concerns is the 2017 should help the industry A reform plan, currently Director of the Soas Monocle view
new leader of the US are paramount, not continued weakening of the yuan grow more sustainably. under way, is long overdue. China Institute Given his power at the moment,
tiffs over trade or the South China Sea. and the exodus of cash from the Xi Jinping has an opportunity to
With all eyes on this Octobers National country. As the yuan slid to its show bold leadership with major
lowest level in eight years at the economic and social reforms
Party Congress, where Xi will officially end of 2016, capital outflows but a cautious approach is more
begin his second five-year term, the image accelerated and Chinas foreign likely in a politically decisive
he wants to portray is that of a leader in reserves dipped below the $3trn year. The bright spot in China
full command of his post. He has focused (2.8trn) mark a decline of Household- is the robust and fast-moving
considerable attention on consolidating his $1trn (930bn) from its peak registration technology industry, which
in 2014. Controls on capital system should be a source of inspiration
power and the state-run media has bur- Building new
outflows have helped but the for the countrys stagnant state-
nished his credentials at every given oppor- stability of the yuan is hard to Foreign policy Foreign policy islands owned enterprises.
tunity. Xi Jinping: Leader of Chinas Great predict. People are worried With US foreign policy ill- Grade: C+. Chinas global
Revival, trumpeted one headline from the about the value of their assets, defined under Trump, China is influence continues to grow but
says Gan Jie, finance professor keen to step up and be seen as given the lack of democracy
Xinhua news service this year. a global leader on everything
Trouble is, a peek behind the curtain at the Cheung Kong Graduate and its militaristic stance in the
School of Business in Beijing. from the environment to free region, this could cause problems.
reveals a host of problems: Chinas ineffi- Theres a lack of investment trade. At the forefront of this
cient and debt-ridden state-owned enter- opportunities in China. effort is Beijings $1trn (930bn)
prises have long been a drag on growth One Belt, One Road (obor)
138 million
Leaders performance initiative, a modern-day Silk
but efforts to reform the economy have Road connecting Europe, Africa
tourists
had limited success. Overcapacity in the Even in the famously opaque in 2016 Modern-day
world of Chinese politics, Xi and Asia through trade and
industrial sector also remains a problem and Jinpings dominance is without investment, which finally started
private-sector investment is only now question right now. His leadership gaining steam this year with the
picking up after tapering to a trickle last year. style, glamorous wife and ruthless opening of a China-UK rail link. Silk Road
Challenges remain, however.
Though the government may have offi- anti-corruption campaign
have set him apart from his China believes that obor will China-UK rail link
cially hit its growth target of more than 6.5 bolster its soft power but this
dour predecessors and proved
per cent in 2016 thanks in part to billions wont be enough to persuade Sectors 129bn
remarkably popular with the
in government stimulus some economists public. Now the biggest question nations wary of its rise. Chinas
Soft-power to watch in 2016
believe that the actual rate was much lower. is what will happen at the 19th confidence has reached a point
credentials
The biggest issue is the economy, says party congress in October a whereby it thinks that we have
pivotal twice-a-decade assembly. to lead, says Zhang Baohui,
Steve Tsang, director of the Soas China a political science professor at Zhang
Institute at the University of London. If A political shake-up could allow
Lingnan University in Hong Yimou Film
Xi to promote a loyalist as his
the economy is doing well then Xi Jinping successor as president in 2022, Kong. But I dont think
will deliver a lot of the things that he wants ensuring hell retain considerable that China would do so in an
to deliver. Thats why Trump can poten- influence and power. To solidify oppressive manner; the Chinese Electric
Traditional
his position further he has also are aware that if you want cars
tially tip the balance. If he does something to create something that is
medicine
designed to hurt China and if the markets made clear that his corruption Defence spending
campaign is far from over. China-led, other countries
respond to it it will really hurt. (m) will have concerns.
000 monocle no104
