Opportunities, Challenges and Countermeasures of SMEs Based on "Inner Cycle"

Over a long time, the development of China’s economy has always relied heavily on investment, export and consumption, or is export-oriented to promote economic growth; however, in the new world economic situation, the export has been curbed and the economic focus needs to be shifted. And China has gradually formed the awareness and strategy of attaching importance to stimulating domestic demand and expanding the domestic consumption market. Therefore, internal circulation will bring unlimited opportunities and challenges to SMEs. It is necessary for SMEs to pay attention to internal circulation and formulate corresponding countermeasures according to internal circulation policies to promote the stable and sustainable development of SMEs.

Packaging Design and the Changing Needs of End Consumers

With the rapid development of China’s economy, the society has entered the era of big data intelligence, leading to tremendous changes in people’s shopping methods. From the original way of shopping via traditional channels from street vendors and farmer’s markets to shopping via WeChat, Douyin, Taobao, Pinduoduo, and other digital e-commerce channels, online shopping has become the norm and an integral part of people’s life in the post-pandemic era. The shift from traditional offline shopping to online shopping calls for a change in design thinking, integrating food packaging design, consumer needs, and brand stories, reflecting individual characters and regional cultures, as well as incorporating traditional Chinese style and cultural elements.

Financial Constraints, Corporate Savings and Labor Income Share—Based on China’s Economic Transition

What causes are responsible for China’s declining labor income share? We investigate this phenomenon in depth from the standpoint of financial constraints. By summarizing the stylized facts of China’s economy, this paper demonstrates that as China’s economy transforms, the financial market’s imperfections lead to more efficient (non-state-owned) enterprises inclined to use corporate savings for the purpose of “crowding out” workers’ remuneration for endogenous financing, resulting in a rising savings rate and a declining share of labor income. On this foundation, we construct a more general theoretical model regarding China’s economic transformation, propose research propositions, and conduct an empirical study utilizing the Chinese Industrial Enterprises Database from 1999 to 2007. The findings show a strong negative relationship between the financial market imperfections and the labor income share, with a 1% increase in financial constraints reducing labor income share by 0.051%. The rise in savings as a result of the financial restrictions works as a mediator variable in this process. Furthermore, our prediction for the path of the labor income share suggests that China’s savings rate would decline after reaching its peak, while the labor income share will bottom out and rebound by the end of the country’s economic transition. This study uses firm-level micro-data to reveal the internal mechanism of financial constraints lowering labor income share, which is a useful supplement to the existing literature. It also provides empirical evidence and policy options for developing countries to reform their financial systems and increase labor income share in the pursuit of sustainable development.

China's economy will struggle to halt secular slowdown

Significance Comparisons with two formerly fast-growing Asian neighbours, Japan and South Korea, suggest that China will continue to slow for another decade. Analysis of global growth trends over 50 years points to a strong force of ‘regression to the mean’, meaning that continued high-speed growth is statistically unlikely. Impacts Continued Chinese economic slowing will reduce global demand for resources such as iron ore and coal. Achieving productivity growth will require deepening reforms to increase the role of the market, the private sector and competition. World Bank economists emphasise that imposing stricter financial discipline is a key step to enhancing market-based productivity gains.

Impact of the OMRR Operation in Fighting the Adverse Effects of COVID-19 on the Chinese Stock Market: An Event Study

The outbreak of the COVID-19 epidemic has had an adverse effect on China's economy. This paper uses the event study method to test and measure the impact of the open market reverse repo (OMRR) operation on the Chinese stock market. The results show that the OMRR operation generates a positive daily abnormal return and a positive daily cumulative abnormal return on average for all stocks. The impact is larger for non-state-owned enterprise (non-SOE) firms than for SOE firms, stocks of non-Hubei provinces than those of the Hubei province, and for stocks of the information transmission and technology industry than those of other industries. We suggest that our government implement more prudent monetary policies and more proactive fiscal policies.

Productivity assessment of the real estate industry in China: a DEA-Malmquist index

PurposeThe high-quality development of the real estate industry is crucial to the transformation of China's economy. However, few studies apply the productivity to explore the development path of the real estate industry in China. To fill this gap, this study mainly investigates the total factor productivity (TFP) of the real estate industry of 30 sample provinces in mainland China from 2007 to 2016.Design/methodology/approachThe Malmquist index is applied to estimate the productivity (i.e. TFP) of the real estate industry, based on the data envelopment analysis (DEA). Then, the truncated tobit regression analysis explores the external influencing factors on the TFP of the real estate industry.FindingsThrough empirical analysis, it is found that the high-quality development of the real estate industry depends on the technological innovation by the real estate enterprises and the targeted policies by the provincial government. Moreover, the development of the real estate industry has a positive correlation with the growth of China's economy but a negative correlation with the development of other industries.Practical implicationsTFP mainly reveals the development status of the provincial real estate industry and identifies the driving force for exploring the high-quality development mode of the real estate sector. Furthermore, the fluctuation rule of TFP can be applied to predict the development trend of the real estate industry in the future.Originality/valueAs an application, this study measures the TFP of the Chinese real estate industry in different provinces and periods. The results have meaningful policy implications for policymakers regulating the real estate industry.

Synergistic Effect between China’s Digital Transformation and Economic Development: A Study Based on Sustainable Development

Developing rapidly over the long term makes it easy for a developing country to fall into the middle-income trap, which can only be solved by a new technological revolution. The deep integration of digital technology and industry has gradually become a new impetus to promote the sustainable development of China’s economy. Based on the panel data of 30 provinces and cities from 2010 to 2019, this paper analyzes the coupling coordination relationship between digital transformation level and economic development in China by the entropy method, coupling coordination degree model and spatial autocorrelation model. The results show that the following: (1) from 2010 to 2019, the comprehensive index of China’s digital transformation and economic growth level showed an upward trend, and the development level showed a gradual decline in eastern–middle–western regions; (2) the level of coupling and coordination between China’s digital transformation and economic growth has been increasing each year. Except Guangdong Province, all provinces have shown digital lag coordinated development, and it is necessary to strengthen their economic sustainability; (3) the coupling and coordination degree of digital transformation and economic growth in China shows a remarkable spatial correlation and agglomeration. High–high agglomeration areas are mainly concentrated in the Beijing–Tianjin–Hebei and Yangtze River Delta regions, low–low agglomeration areas are concentrated in northeast and western regions, and low–high agglomeration areas and high–low agglomeration areas are concentrated in southeast provinces. It is suggested that China should strengthen its regional balance in the future, let digital technology continue to lead the development of eastern developed regions, and transform and promote the traditional economy in other regions, overtaking in corners and enhancing the sustainable development of the overall layout of China’s economy.

The Impacts of COVID-19 on China’s Economy and Energy in the Context of Trade Protectionism

In the current context of rising trade protectionism, deeply understanding the impacts of COVID-19 on economy and energy has important practical significance for China to cope with external shocks in an uncertain environment and enhance economic resilience. By constructing an integrated economic and energy input-output model including the COVID-19 shock, this paper assesses the impacts of COVID-19 on China’s macro-economy and energy consumption in the context of trade protectionism. The results are shown as follows. First, in the context of protectionism, the outbreak of COVID-19 in China would cause a 2.2–3.09% drop in China’s GDP and a 1.56–2.48% drop in energy consumption, while adverse spillovers from global spread of COVID-19 would reduce its GDP by 2.27–3.28% and energy consumption by 2.48–3.49%. Second, the negative impacts of domestic outbreak on China’s construction, non-metallic mineral products, and services would be on average 1.29% higher than those on other industries, while the impacts of global spread of COVID-19 on export-oriented industries such as textiles and wearing apparel would be on average 1.23% higher than other industries. Third, the effects of two wave of the pandemic on China’s fossil energy consumption would be on average 1.44% and 0.93% higher than non-fossil energy consumption, respectively.

The Impact of the Network Trade Era on the Chinese (Asian) Economy

With the rapid development of the Internet and information technology, network trade has emerged and broken through the traditional trade boundaries in the rapidly developing information technology. Therefore, with the advent of the information age, network trade has had a series of impacts on China’s economy, which has given wings to the take-off of China’s economy, but also made the development of China’s economy face a new environment and new challenges. Based on this, this paper first analyzes the connotation of network trade, and analyzes the impact of the network trade era on China’s economy. Through such a study, it aims to make China better seize the opportunities of the times and meet the challenges of the times in the process of promoting social and economic development, so as to achieve a good and rapid development of the national economy.

Coronavirus's Impact on China's Economy

Since December 2019, the growth of global trade has slowed significantly during the years when the "COVID-19" was raging. Through a review of the literature, we explore the significant impact of the outbreak on the Chinese economy, mainly in the service and manufacturing sectors already e-commerce, with both negative and positive effects on these industries.