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Sunday, May 28, 2023

"The New China Playbook – Beyond Socialism and Capitalism"

 

 

The New China Playbook: Beyond Socialism and Capitalism

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Keyu Jin

Associate Professor of Economics

Department of Economics

Keyu Jin

LSE

https://www.lse.ac.uk › economics › people › faculty
Faculty page of Dr Keyu Jin. ... Keyu Jin. Associate Professor of Economics. Department of Economics. Email. k.jin@lse.ac.uk. Room No. SAL.1.17.

 

Summary

“Keyu Jin is a brilliant thinker.” —Tony Blair, former prime minster of the United Kingdom

A myth-dispelling, comprehensive guide to the Chinese economy and its path to ascendancy.

China's economy has been booming for decades now. A formidable and emerging power on the world stage, the China that most Americans picture is only a rough sketch, based on American news coverage, policy, and ways of understanding.

Enter Keyu Jin: a world-renowned economist who was born in China, educated in the U.S., and is now a tenured professor at the London School of Economics. A person fluent in both Eastern and Western cultures, and a voice of the new generation of Chinese who represent a radical break from the past, Jin is uniquely poised to explain how China became the most successful economic story of our time, as it has shifted from primarily state-owned enterprise to an economy that is thriving in entrepreneurship, and participation in the global economy.

China’s economic realm is colorful and lively, filled with paradoxes and conundrums, and Jin believes that by understanding the Chinese model, the people, the culture and history in its true perspective, one can reconcile what may appear to be contradictions to the Western eye.

What follows is an illuminating account of a burgeoning world power, its past, and its potential future.

* This audiobook edition includes a downloadable PDF of charts, graphs, and other key visual aids from the book.

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Debate emerges over college students raising children; Chinese demographers call for more open-mindedness

 

Children ride hoverboards at a kindergarten in Nanjing, capital of East China's Jiangsu Province on April 21, 2023. Photo: VCG

 

Getting married and childbearing in college is not something unusual in the modern world, but a student raising a child on campus still being a holder of multiple scholarships is mind-boggling.

Smiling and a sense of happiness can always be seen on face of Xiaoli who is now in her college senior year from Southwest China's Guizhou Province when she brought her suckling child in her dormitory and had her roommates playing with the infant or spent leisure time around her campus.

Seemingly she is able to handle the child-raising, a heavy work in nature while not letting her study fall behind. She was even awarded with university scholarship and national ones for high grades in study.

Xiaoli posted about just 10 videos on her social media account about her child-raising student life in university, but it has already made her story one of the most-discussed controversial subjects in the country.

Some netizens are amazed at how the 23-year-old is able to be a mom while being a student with good grades at the same time, exclaiming that's "a coolest life that they ever saw."

But some criticized raising a baby at an age when normally even they could not figure out whom themselves are, is merely irresponsible. Others argued Xiaoli's story should not be encouraged considering the costs of raising a child in the country, not to mention for a student.

More open-mindedness


Getting married and bearing a child at an appropriate age has always been a reasonable option for university students since a regulation on university students by the Ministry of Education in 2005 has scrapped previous requirement that an approval must be obtained from their university when they register for a marriage.

Though getting married and having a child is an option for marriageable students, the average age of young generations to enter into their first marriage has actually been gradually moving back over years.

A report on China's population development was released by the YuWa Population Research think tank last year showed comparing with other countries China has the highest legal age for marriage, with male in their 22 and female in their 20. But the average age of first marriage in China is 28.67, the data a decade ago was 24.89, according to "China Census Yearbook 2020" released by the National Bureau of Statistics in June 2022.

"In Chinese society, the mainstream cognition on marriage tends to link with personal career. For students who have yet financially independent, getting married and even raising a child is not a common option for Chinese college students," Song Jian, a demographer from the Center for Population and Development Studies of the Renmin University of China, told the Global Times.

The fact that Chinese students usually live in dormitory in some way also restricts them to consider having a child on campus a top priority in their study time. Some other obstacles are natural difficulties to balance a heavy study load and raising a child, Song noted.

But Chinese students still value marriage. A survey result showed that university students believe that having 1.86 children in a family would be ideal, and more than 80 percent of them believe two children are ideal as part of their future family.

However, the average number of children actually sought by college students themselves in the future in this survey was 1.36, and nearly 50 percent of college students wish to have less than two children.

The gap - between the ideal number of children and the desired number of children - mirrors the obstacles and reluctance of young generations to have children, Li Ting, a professor at the School of Sociology and Population Studies, Renmin University of China and lead author of the controversial survey, told the Global Times.

To boost fertility rates among young people, at this year's two sessions, a Chinese political advisor suggested making available birth insurance services to Chinese college students.

Society should provide more support to students with master and doctoral degrees to arrange their marriage properly, such as allowing them to alter their study schedule, and offering financial assistance and allowing them to enjoy birth insurance and medical allowances, He Dan, director of China Population and Development Research Center, who is also a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), noted in the proposal.

Official data showed in 2021, a total of 125,800 doctoral students were enrolled, 509,500 were studying and 72,000 were graduating.

"For the young generations, getting a job, building a family and then getting married usually overlaps with each other in a short period of time. If the university or the society could ramp up efforts to help students who have the desire to realize their marriage in university, I don't think it is a bad thing," Song noted.

"But I won't say getting married and raising a child in universities is an act should be discouraged or encouraged. We just need more open-mindedness to accept that it is one of available options for college students," Song said.

"What the country can do is able to clear the way for students who would like to get married and have a child in their college through some policies, but down to earth, getting married and bearing a child boil down to personal choice," Yuan Xin, a professor of demographics from the School of Economics at Nankai University told the Global Times.

A commentary piece by the Beijing Youth Daily proposed to provide some convenience to students who opt to get married and bear a child in university, such as allow those students to choose fewer lessons or receive a gap year so as to reduce their pressure.

The greater the independent choice space for students, the more diversified the learning and growth of college students will be. In a pluralistic environment, public opinion will no longer make a fuss about college students getting married and having children, the commentary noted.

For Xiaoli, she believed raising her child while studying is a rational decision for her to make. "I got married legally and having a child is a normal. Childbearing in college was a decision supported and blessed by every member of my family."

"I'm not from a rich family but my husband can take good care of us financially. Grandmother of the child also helps me take care of my child."

Xiaoli said she has never regretted her choice, but she does not encourage others to follow her way of living. "We're not running everything in a smooth way. But life is ours. I go for it when I believe I can handle it, no matter how others see it." 

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Reversing bankruptcy trend

 Amendments to Insolvency Act passed unanimously

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Two new categories for bankruptcy discharge under Insolvency Act... 

Insolvency Act amendment allows two new categories of ...

 Debt trap: Azalina disclosing that 40% of those who were declared bankrupt are between the ages of 35 and 44. — Bernama

CLOSE to 40% of those who were declared bankrupt are between the ages of 35 and 44, says Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said.

They made up 37.38% or 17,917 individuals who were declared bankrupt as of December last year.

She said a total of 47,929 individuals were declared bankrupt during the same period, of whom 10,378 were under 34 years old.

Personal loans are the main cause of bankruptcy at 49.22% compared to other loans.

“Urgent intervention must be done to address the rising number of bankrupts in the country,” she said when tabling the Insolvency (Amendment) Bill 2023.

The minister said gender-wise, more men were declared bankrupt compared to women.

“A total of 25,104 men were declared bankrupt compared to 8,912 women from 2019 to date,” she added.

Azalina said the department had initiated measures, including extensive outreach programmes to increase financial awareness, including among secondary and university students. Following the passing of the amendments to the Insolvency Act, individuals aged 70 and above will be considered for discharge from bankruptcy.

They will not be bankrupt if the Insolvency director-general determines that they no longer have the ability to contribute to or pay for the administration of their estate.

This is among the salient points of the amendment, which was passed by the Lower House unanimously by a voice vote.

According to Insolvency Department records, 19,913 bankrupts aged 70 and above are eligible for relief through certification from the director-general, if they meet conditions.

With the passing of the amendment, another category of individuals will be discharged from bankruptcy – those unable to manage themselves due to mental illness that has been verified by a psychiatrist at a government hospital.

“The amendment is in line with the government’s intention to preserve the welfare of bankrupts. They no longer have the means to cooperate and contribute to the bankruptcy administration,” said Azalina.

During the debate session, lawmakers from both sides requested more awareness of financial literacy among the youth to prevent the rise of bankrupts in the country as well as urgent assistance for those facing financial crises.

Former prime minister Tan Sri Muhyiddin Yassin urged the government to provide more flexibility in the conditional discharges offered to those who have been declared bankrupt.

During the Perikatan administration, the threshold for bankruptcy was raised to RM100,000 from RM50,000 under the Covid-19 Act to prevent Malaysians from facing financial crises during the three-year pandemic.

Jelebu MP Datuk Seri Jalaluddin Alias also called for an improved and updated syllabus on financial management to be introduced at secondary schools. 

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