Domestic tourism in China saw a jump, and consumer sentiment is improving more slowly after the zero-Covid policies ended, says consumer expert Ashley Dudarenok at CNBC. Brands are relucted in spending their marketing budgets. Dudarenok said that heading into 2023 and the Lunar New Year, some smaller brands had turned more conservative on China and cut their marketing budgets for the country in half.
A default of the US is highly unlikely, even in the current chaotic political setting in the United States, says leading China economist Arthur Kroeber, but today the risks for China are much higher than during the 2008-2009 crisis. A crisis would not offer an opportunity to build an international financial system around the Renminbi, next to the US dollar, he adds in the ChinaFile.
China is heading for a fundamental breakdown, argues Harry Broadman, Partner, and Chair, Emerging Markets Practice, Berkeley Research Group LLC, at a wide-ranging speech at the Charleston Chamber of Commerce, November 2022 (Charleston, South Carolina). It started by bailing out investors at its stock markets, which are no real markets, he says.
Two hundred Chinese companies listed in the US thought they would get a pass when the PCAOB accepted late last year the auditing process for those companies. But financial analyst Winston Ma warns there are still significant uncertainties for those firms, as the SEC still indicates on its website those companies are still in danger of being delisted, he tells CNBC.
China veteran Ian Johnson, senior fellow for China studies at the Council on Foreign Relations think-tank, discusses at Channel News Asia how different China might treat much-discussed political issues like Taiwan after the visit of US House speaker Pelosi and possible new tracks in economic directions. The recent shift of focus towards the private sector as a key part of China’s economic growth strategy is more of a “tactical adjustment” instead of a change in the leadership’s thinking, said Mr. Johnson.
Hurun chief researcher Rupert Hoogewerf issued the most successful Chinese heritage brands list for 2022, raking the 550-year-old Pien Tze Huang, a traditional Chinese medicine brand, and a current valuation of just under US$30bn. “That makes it the Number One most successful Chinese Heritage Brand,” says Rupert Hoogewerf.
The exit of the Zero-Covid policy in China was not the cause of the rampant spread of the virus, or triggered by the protests, but was already spreading unstoppable for a longer time, according to the World Health Organization, writes Reuters. WHO’s emergency director Mike Ryan described the end of the zero-Covid policy as an unavoidable strategic decision on Wednesday 14 December.