Over the years, the Hong Kong government has accumulated a huge amount of reserves (roughly HKD 4000 billion). When such an amount of wealth is sitting around earning a modest rate of return, any economist would ask the question: is this the most efficient allocation of resources?
China’s Government Working Report proposed that future real estate measures would tailor to the regional circumstances, that is, de-stocking policies in regions with high housing inventories and strict regulations in some cities to constrain the excessive increase in housing prices.
India and Japan have joined hands in engaging in economic diplomacy with Africa and the rest of Asia, with the goal of social and economic development of the developing countries in these two continents.
China’s Belt and Road Initiative has its detractors and opponents. To some it is an existential threat. Given its Leviathan nature that is no wonder. Of course, the BRI also has its enthusiasts and supporters.
Out of the top ten biggest companies by market capitalization at the end of May 2017, seven belong to the new economy. Except for the third-ranking Microsoft, none of the other six was a household name twenty years ago.
Within the Asia-Pacific, there are opportunities for China’s role to grow, for example, by contributing to the region’s connectivity through the Belt and Road Initiative and the multilateral Asian Infrastructure Investment Bank.
In a surprising move on May 12, 2017, just a day before the opening of the Belt and Road Forum in Beijing, Nepal signed the framework agreement in Kathmandu. However, this has raised strategic apprehensions in India.
With deepening cooperation between China and countries along the Belt and Road, more needs to be done in institutional arrangement, policy chains, risk assessment and control as well as communication at different levels.