I do not think it will be contentious to say that China is becoming one of the most important players on the world stage – economically, politically and socially. The country has been hard at work reestablishing itself as the ‘Middle Kingdom’ the nation that sits at the centre of the world.
While I would certainly not go that far, I must admit they have been leading the way in many aspects – EV production, AI advancements and infrastructure growth. The country also contributes to an estimated 25% of the world’s food supply despite having less than 9% of the globe’s arable land (which explains the amount of investment the government has put into protecting its agriculture industry).
Its main competitors are lagging due to various reasons. Its biggest competition, the US, is withdrawing into isolationist and protectionist policies, opening the way for China to make bigger inroads across the globe. US President Trump’s continued propositions of trade wars means that China can – and will – position itself as a stable global player and reliable trading partner. As some have said, “China is winning without even having to play.”
That is not to say it’s all sunshine and roses. There is still a lot of work to be done in terms of infrastructure in its rural areas, insurance penetration remains low, and its economic growth has slowed significantly since its pre-COVID heyday.
Early in March, the National Bureau of Statistics declared that the country’s Consumer Price Index (CPI) fell by 0.7% in February from the previous year, emphasising the persistent deflation that has been plaguing China’s economy. While the government is confident in its plan to boost the economy and achieve its ambitious 5% growth target – as it declared during the National People’s Congress in Beijing on 5 March – it also has a whole slew of issues to fix first, from the real estate crisis to high local government debt to weak consumer demand.
Beyond finance, the Chinese government also has many detractors – the social credit system has come under much scrutiny from political pundits, there have been many critics about the government’s censorship laws and it also has a poor record of human rights abuses.
At the same time, talk about trade wars, tariffs and economic pressures tends to forget the most important aspect – the people. Beyond the numbers and growth targets, the people on the ground will be the ones to feel the pressures first, with potential increases in cost-of-living and day-to-day expenses.
And while the US and Chinese governments might continue to posture at each other, its people have much less reason to be at each other’s throats.
Earlier in January, when the US government was planning to ban TikTok, many of its American users fled to a Chinese social media app in protest – RedNote, or LittleRedBook. During that brief few weeks, Chinese and American citizens communicated with each other, potentially for the first time, without the screen of government propaganda – and that time, they found that they had much more in common with each other than first expected.
(It was mostly “a love for cats” pictures.) A
Ahmad Zaki
Editorial director
Asia Insurance Review