Weblog with daily updates of the news on a frugal, fair and beautiful China, from the perspective of internet entrepreneur, new media advisor and president of the China Speakers Bureau Fons Tuinstra
A US judge has delayed US President Trump’s action on Tiktok, and now the Chinese government is watching closely what happens after November 12, the next deadline, says political economist Shirley Yu at Bloomberg. And what will Tencent do, now a ban on WeChat is still pending?
China’s currency, the yuan, still has a long way to go on its road to become an international currency, says political economist Shirley Ze Yuat the S&P Global. The need for China to internationalize its currency “is both strategic and opportune,” Yu said.
The S&P Global:
“The BRI (Belt&Road Initiative) region is China’s natural region to succeed in building a multilateral currency order, to rival the 20th-century U.S.-dominated global monetary system,” said Shirley Ze Yu, a political economist and a fellow at Harvard Kennedy School’s Ash Center.
To be sure, China needs to allow the yuan to float more freely. The digital yuan won’t be “a standalone entity,” Yu said, adding, the digital yuan cannot become a global center currency, unless the yuan “itself becomes one.”
The depth and width of the capital market is still the most significant variable, because no country or individuals would hold on to a yuan-denominated asset if there is insufficient market liquidity globally. The yuan “has a long road to travel still,” she said.
Yu said that it is crucial for China to internationalize the yuan now, especially since the U.S. dollar has enjoyed its reign as “the ultimate currency of last resort” post-World War II and dominates the global monetary system. The need for China to press the gas pedal on its yuan internationalization agenda also became more pronounced recently as the U.S. announced sanctions against Chinese and Hong Kong officials. China has to be prepared for its banks to be excluded from international monetary clearing systems, including SWIFT and CHIPS systems, down the line, she said.
The need for China to internationalize its currency “is both strategic and opportune,” Yu said. “In the current decade, we might inevitably see two parallel global monetary systems” — the dollar-based system and a rising and regional yuan-based system.
Attention has been focused on the expected purchase of Bytedance’s Tiktok by Oracle, but authorities in Beijing fear this will only be the start of more pressure on Chinese tech companies, says political economist Shirley Yuon CNN.
CNN:
“Beijing wants to protect its ascending status in global technology,” said Shirley Yu, visiting fellow at the London School of Economics and founder of an eponymous company that assesses strategy, business, and political risk for companies working in China.
If the United States succeeds in forcing TikTok to sell key tech to an American company, “China would be concerned that, as its technology companies continue to ascend, more Chinese companies … might be targeted by the United States in a similar way,” she said.
Ironically, TikTok has become the ideal platform to spread American soft power, says business analyst Shirley Yu at Yahoo Finance. “The fundamental competition between the US and China is going to be technological competition,” which will have a big impact on the media landscape and the way in which we live, she says.
Yahoo Finance:
With the world’s second largest economy investing heavily in technology and innovative startups, China’s digital footprint is growing while the US seeks to dominate the digital landscape. This is leading to profound changes taking place within society as digital infrastructure plays a bigger role in our daily lives and people become more interconnected globally, and at high speed.
Shirley Yu, a Harvard-educated political economist and expert in strategic and economic affairs said this week that “the fundamental competition between the US and China is going to be technological competition,” which will have a big impact on the media landscape and the way in which we live. The global media figure, former CGTN news anchor and founder of Business Talk Show Hey China! said that despite China’s economic growth and recent successes including TikTok, it had yet to make its mark culturally around the world in the same way that the US has done so. “China does not, or has not produced very many strong public voices on the global stage who can communicate effectively in policy, in media, or even in politics, in a sophisticated way, with the rest of the world,” said Yu. Despite the success of Bytedance’s TikTok, the Hey China! talk show host admitted that it is a crucial moment for the world to give a voice to the change-makers, thought leaders and Gen Z doers, who can tell their untold paradigm changing stories about China to the world, and bring inclusion to the media.
“China has not been able to develop a generation of global media icons, nothing near what the US has accomplished in this regard,” Yu reflected. However, when asked about the potential banning of TikTok in the U.S., Yu noted that, “If you watch TikTok, TikTok has become ironically the perfect platform to spread American soft power, through the songs, dances and culture. American youth have successfully used a Chinese platform to spread American soft power all over the world.”
But as the technological competition heats up between the two world powers, companies like TikTok and Huawei have been caught up in the geopolitical confrontations, facing boycotts and bans in various countries. However, the technological shift toward 5G and China’s large investments in areas including IoT, AI, smart cities and digital tech means that the rest of the world including the US will be eager to match that effort – changing how we communicate and connect over the long-term.
