Channels, Fall 2020

Page 40 Beale • Equivalence in Translation head of the Chinese Statistics Office, Ning Jizhe, cited several worldwide sources of instability and risk leading to the economy experiencing “increasing downward pressure.” The slightly improved atmosphere at year’s end may be connected to the de-escalation of the trade war between Beijing and Washington, according to observers. President Trump announced in October the settlement of a partial agreement which was signed this week. The agreement provides for the two sides to not protect themselves with additional punitive tariffs. Furthermore, China has committed itself to considerably increasing its imports from the US. However, most observers do not see this deal as the end of the conflict between the old world power and newcomer China. Weakening Retail The Chinese retail market is also weakening, achieving a mere increase from 8.0% to 8.2% in the third quarter. The administration plans to stimulate companies in the internal market with measures such as tax cuts in order to reduce dependence on foreign exports. At the same time, online trade posted a growth of 16.5%. Experts continue to emphasize the contradiction between growing state control and the the necessity of creating a decentralized and consumption-driven economic system to reach sustainable growth. Historically Low Birth Rate Yet another statistic could serve as a source of unease in Beijing - the birth rate has fallen to its lowest level in 70 years. For every 1,000 inhabitants, only 10.48 children were born - the low est number since 1949. Even the administration’s abandonment of the so called One Child Policy has not brought about the hoped-for increase in the population. Above all else, observers see the economic concerns of young couples as the reason for the low birth rate. Many such couples hesitate to start a family, as they don’t feel they are able to provide health insurance, upbringing and education for a child, in addition to the high cost of living and rent. Aging Population Growing into a Problem At the same time, more marriages are being divorced than ever before - in the first three quarters alone, 3.1 million couples filed for divorce. According to information from the Statistics Office, China currently has 1.4 billion inhabitants. As all Chinese are promised healthcare and retirement, the rapidly aging society could become a major problem for Beijing in light of the weakening economy. Business Text B: Trump Praises Economical Development under His Administration in Davos President Trump’s second appearance at the World Economic Forum was awaited with bated breath. Above all else, in his address he praised the United States’ economic success and the trade deal with China.