Economy
China Holds National Financial Conference
The Chinese government held its National Financial
Work Conference on July 14 and 15, where President
Xi Jinping emphasised that financial work should make
serving the real economy a top priority.
This has been interpreted as another signal that China
will gradually shift its focus from the virtual economy to
the real one. According to China’s National Bureau of
Statistics, China’s financial sector saw the lowest growth rate in Q2 among all the industries the bu-
reau’s statistics covered. Analysts believed Xi’s address will enable capital to flow to the real economy
more quickly and efficiently, rather than simply circulate between different financial markets.
Financial risk prevention is another focus of the conference which, according to analysts, means
that China will further tighten its financial supervision and close some management loopholes. The
conference, for example, has set up a responsibility claim system to control local governments’ debts
and has required larger-scale deleveraging for State-owned enterprises which are close to bankruptcy.
According to the statistics, China’s GDP grew by 6.9 percent in the first half of 2017, higher than
expected. Analysts attributed it to China’s supply-side reform and tightened control over financial
risks.
Business
Jack Ma Opens
Unmanned SupermarketJack Ma, founder of China’s
largest online-shopping platform,
Alibaba, recently opened the
group’s first unmanned super-
market, in Hangzhou, Zhejiang
Province, where Alibaba has its
headquarters.
Launched as a part of Alibaba’s
Maker Festival which introduced
innovative technologies and shop
formats, the unmanned conve-
nience shop, Tao Coffee works
on Alipay, the group’s mobile pay-
ment system. Customers “check
in” to the supermarket by scan-
ning a QR code with their mobile
phone and “check out” by passing
through the “settlement door”
which automatically identifies
what a customer has bought and
then gives a total price.
Alibaba is not the first to open
an unmanned supermarket. Just
before Tao Coffee opened, a staff-
free supermarket in Shanghai was
closed for being too hot in sum-
mer. But Alibaba claimed that they
will develop suites of new technol-
ogies to support and promote un-
manned supermarkets. Ma hopes
that it will spur a new round of in-
novation in the retail industry.
During the five-day Maker Fes-
tival, Tao Coffee reportedly saw
nearly 6,000 customers who made
around 7,000 purchases. Many
investors have been optimistic
about its future, while the public
has expressed concern that if the
unmanned supermarkets spread,
people will lose their jobs. Photos by CNS, VCGBusiness
Jaguar Leaps Into China
Jaguar Land Rover (JLR) is owned by India’s Tata Motors, but for many customers, the vehicles JLR
produces are as British as fish and chips.
With £1bn invested in its UK engine plant in the last five years and vehicle production getting close
to capacity, the company has opened its first overseas engine-making venture in China.
The project is part of its RMB10.9bn (£1.22bn) joint venture with Chery Automobile Ltd and will
be based at the existing facility in Changshu (Jiangsu province) that has made 100,000 vehicles since
opening three years ago.
“Our new engine plant in Changshu supports our strategy to become a more competitive global
business. It will strengthen our international manufacturing capabilities and complement our existing
facilities in the UK,” said Qing Pan, President of JLR China.
Jaguar Land Rover first established a presence in China over a decade ago and sales in the country in
the first half of 2017 have increased by 26 per cent.
The country is the world’s largest car market and a way for JLR to hedge against Brexit tariffs on
engines and make a big leap in its commitment to China.
Politics
Soft Power Rise
China has risen three places in the respected 2017 Soft Power 30, now ranking 25th among 30
world powers. Co-publishers PR firm Portland Communications and the University of Southern
California Centre on Public Diplomacy commented, “This impressive three-place jump is a reflection
of China’s more committed approach to soft power in recent years.”
The most visible manifestations of China’s soft power are brands pushing for a global image, in-
cluding Huawei and Alibaba, and the ubiquitous Confucius Institutes that often operate in partner-
ship with local affiliate colleges and universities around the world.
These symbols of economic and cultural reach create perceptions alongside the projection of mili-
tary strength, especially from the point of view of some Asian nations that have disputes with China.
The authors conclude by making recommendations as to how China can do even better. Their tips
include greater opening up and a digital diplomacy drive.