Newsletter By 2019-07-07
The G20 summit meeting between China and the United States restarted the hitherto suspended trade negotiations. The two countries have now reached a consensus on the opening of the Chinese market in exchange for the U.S.’s suspension of tariffs. However, on whether the two countries can finally reach an agreement is still quite uncertain. Looking from a historical point of view, the U.S.-China trade conflict is one of the long-term problems caused by the structural defects of the world economy, and it cannot be completely resolved simply by reaching a trade agreement alone. In fact, the U.S.-China relations have reached a stage where globalization has changed from flourishing in the past to its current intensification of contradictions and conflicts.
>>Currently, there are many scholars who separate PR (public relation) politics with that of political PR. The former is of the view that political PR exists and it is a sub-discipline of PR, similar to corporate, organizational and individual PR. They take PR as the main discipline and consider it to have the same conceptualization as the other three sub-disciplines. Nevertheless, such convenient categorization bears caution as the methods used in the PR exercises are starkly different from those used in the corporate, organizational and individual realms. From Anbound’s perspective, PR politics will be much more reflective of the actual social operations on the ground than its conceptual rival, political PR. Generally, the three instruments of images, issues and media reporting have the effect of maximizing the political performances among populist politicians.
>>Enterprises are the main body of supporting market economy. The healthy development of market economy is marked by the diversification of large, small and medium sized enterprises to create prosperity supported by both competition and mutual winning situation. However, under globalization and capital surplus, the conventional market economy system has been distorted to certain extent, and in the case of China there is the distortion of special institutional power as well. Such market economy is creating more and more contradictions, which will snowball into larger problems in the future.
>>China's development is advancing to surpass the middle-income trap, but to achieve this goal, China still faces many challenges, such as sustained economic growth, continuous technological progress, institutional reform, and the gap between rich and poor. Anbound’s researches noted that one should not underestimate the difficulty for China to surpass the middle-income trap. Historically, many countries in the world have tried to bypass the “middle-income trap”, but most have failed. Countries that can stabilize the middle-income trap after the Second World War are rare. If these challenges are not well-managed, it would be extremely difficult for China to surpass the middle-income trap in order to reach the level of a developed country.
>>There are certain policy limitations on current tax and fee reduction in China. According to Anbound’s finding, the fiscal revenue and expenditure pressures at the local level may be greater. At the same time, preventive measures on debt risks have also caused the local financing environment to deteriorate, which will in turn affect political, social and cadre stability. If the desired results are to be achieved, the Chinese authorities need the corresponding and supporting policies, especially those that are conducive to the expansion of the market space focusing on consumption and market space is a better option. This will drive the entire industrial chain and fully exert the role of the market mechanism. If the focus put on the production process, the short-term effect may be realized faster, but under a situation of overproduction, the tax reduction policy may expand ineffective production operations, resulting in greater excess.
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