The year 2018 saw China’s monetary policy carefully sail through the “reefs,” as economic slowd
own and surging exchange rate risk left little room for adjustment. However, since the be
ginning of this year, major internal and external changes have broken the dilemma.
From the internal perspective, in January 2019, the “loose credit s
upply” saw improvement in terms of both volume and structure, barriers to implem
enting monetary policy removed, which is expected to guide the Chinese economy to stabilize in the first quarter.
First of all, China’s outstanding broad money supply, or M2, grew 8.4 percent year-on-year in January, while new yuan loans and social fina
ncing both soared to historic monthly highs at 3.23 trillion yuan ($478 billion) and 4.64 trillion yu
an, respectively. The figures showed that “loose fiscal policy” has had a positive effect on credit supply to the pri
vate sector, thus pushing up the growth rate for total social financing. It is expected that in the first quarter of 2019, wi
th the gradual implementation of “loose fiscal policy,” the volume of “loose credit supply” will remain at a high level.
one hand, Modi wanted to push forward the Citizenship (Amendment) Bill in South Tibet where it may help New Delhi assimilate local
population and convert it demographically into a more “Indianized” one; on the other, Modi sought to pacify irritated and alienated local comm
unities by introducing more developmental projects and pro-growth schemes. In addition, by sending out a strong signal that China’s fierce protests woul
d not deter him from visiting the frontier region, Modi also sought to appeal to nationalistic voters before the election.
Following the passing of the Citizenship (Amendment) Bill in the Lok Sabha on January 8, South T
ibet had been hit by waves of protests across the region. A large number of Hindu immigrants from Bangladesh have been sent into South Tib
et since the 1950s, but have no citizenship. However, if the Bill is enacted, these refugees would likely get Indi
an citizenship, which poses a threat to the local community as their swelling population in the long run may well crowd out and eat up the indigenous pop
ulation. For example, Hajong people – a Hindu group originally residing in former East Pakistan (now Bangladesh) which fled to India due to religious persecu
tion – have been migrating to South Tibet since the 1960s, but their presence since then has been a constant source of conflicts.
It was against this backdrop that Modi trod on the soil of South Tibet. Signaling that his governm
ent gives a lot of importance to the region which has been neglected by previous governments, Modi sought to
pacify annoyed locals by giving them a long list of gifts. The Indian prime minister laid the foundation stone of several developme
assistance to the World Bank and quit the organization. The World Bank is a multilateral institution which was establ
ished under US leadership, and guided by the US Treasury Department. Its heads have traditionally been
appointed by the US government. The World Bank reflected US global strength and was a key instrument for
Washington’s global governance, and increasing its influence as a soft power. However, currently Washington seems to de
molish the structure it built itself by exiting international organizations that signal globalism.
Based on the experiences of the late 20th century, there are several drawbacks of globalism and globalization.
First, globalization enables strong nations to consolidate their d
ominance and lead the international order. It is an instrument that induces weaker states to ob
ey the will of the stronger ones. Globalism is keen on promoting universal values, taking the moral high gr
ound, blaming countries whose actions do not accord with universal values and even intervening militarily in some natio
ns. What does international intervention bring to global politics? It can be explained by hot button issues in Eurasia.
unified global political will, which is difficult to find amid large sovereign nations. Hence, there is a huge gap between ideal globalism and its practice. Sovereign states should try to spare room for g
lobalism. Globalization is required by people and cannot be reversed at will. On the other hand, globalization has to take i
nto account the political reality of mass sovereign countries. The goals and agenda need to be limited within the flexible boundary of sovereign nations. Ot
herwise, it would disrupt some countries’ political and economic setup, breeding social antagonism.
In the era of exacerbating confusion, globalization may be not as appealing as before, but it is u
ndesirable to discard globalism, which has boosted the development of global economy and fought
common problems. In a highly connected and almost irreversible world, simply retreating to nationalism will generate nothing but disaster. We can
hold a selective attitude toward globalization. The part of judging from the perspective of strong nations’ i
nterests and submitting to capital is not advisable. The globalization we desire is to serve the interest of all people and
match the political system of sovereign countries. On the whole, what we need is a revised globalization.
The 2019 Annual Meeting of the Chinese Economists 50 Forum was held in Beijing on Saturday, with the theme “How to achieve the six stabilities and keep positive economic development in the lo
ng run.” Below are excerpts from speeches given by several renowned scholars and officials at the event.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission
The current IPO system has led to highly consistent investor expectation in the secondary market as they mindlessly buy into
roaring stocks, aggravating price distortions and resulting in low long-term returns on newly listed shares.
Reform to secondary market prices will create a good groundwork for IPO price reform in the future.
Liu Shijin, vice president of the China Development Research Foundation
If we compare [China’s] high-speed growth of the past three decades to eating fatty meat, after we e
ntered a phase of medium-speed growth, transitioning to high-quality development, which will be t
he hard part, is like nibbling on hard bones. There are five sources of growth momentum during the high-quality d
evelopment stage. First, the improvement in low-efficiency growth sources. Second, the income growth of low-in
come groups and the upgrade in human capital. Third, the upgrade to the consumption and industrial structures. Fourth, cuttin
g-edge innovation. Fifth, green development, which is not limited to pollution control and environmental protection.