Case 1 – China Investment Demand
China seeking private investment in major projects -Xinhua
China cuts key rates as weak batch of July data darkens economic outlook
China is seeking private investment in 4,894 major projects with total investment of 5.27 trillion yuan ($717.69 billion), Xinhua news agency said, citing the top state planner. The projects mainly involve urban construction, highways, ports, agriculture and tourism, the agency quoted the National Development and Reform Commission as saying.
China has in recent weeks unveiled a series of policy measures to aid private businesses after the sector has been bruised by COVID-19 curbs and a wide-ranging regulatory crackdown that targeted industries from technology to property. Fixed-asset investment by private companies shrank 0.5 per cent in the first seven months of the year, bigger than the 0.2 per cent decline for the first half. Investment in the property sector tumbled 8.5 per cent year-on-year in January to July, after shrinking 7.9 per cent in January-June, extending its fall for the 17th consecutive month.
Source: Adapted and edited from CNA, 15 Aug, 2023, 9 Sep 2023

Explain any ONE (1) determinant resulting in the decrease in investment demand by private companies in China. (
Discuss any TWO (2) ways for China government to incentivise private companies to increase investment demand going forward.

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

Determinant Resulting in Decrease in Investment Demand by Private Companies in China

One determinant resulting in the decrease in investment demand by private companies in China is the regulatory crackdown. The Chinese government has implemented strict regulations targeting various industries, including technology and property. These regulations have created uncertainty and increased compliance costs for private companies, leading to a decline in their investment activities.

The regulatory crackdown has created a challenging business environment for private companies, as they face increased scrutiny and potential penalties for non-compliance. This has made them more cautious about investing in new projects or expanding their operations. The fear of being targeted by regulatory authorities has dampened private companies’ confidence in making long-term investment commitments.

Moreover, the regulatory crackdown has also affected investor sentiment, both domestically and internationally. Investors are concerned about the unpredictability of the regulatory environment and the potential impact on their investments. This uncertainty has led to a decrease in investment demand as private companies adopt a wait-and-see approach before committing to new projects.

Ways for China Government to Incentivize Private Companies to Increase Investment Demand

To incentivize private companies to increase investment demand, the Chinese government can take the following two measures:

Provide Tax Incentives: The government can offer tax breaks or credits for private companies that invest in targeted sectors or regions. By reducing the tax burden on these companies, the government can encourage them to allocate more funds towards investment activities. This would make investment more attractive and help stimulate economic growth. Additionally, the government can consider extending tax incentives for longer periods to provide stability and certainty for private companies’ investment decisions.

Streamline Regulations: The government can work towards simplifying and streamlining regulations that affect private companies. This would reduce compliance costs and administrative burdens, making it easier for companies to invest and operate. Clear and transparent regulations would improve investor confidence and encourage private companies to make long-term investment commitments. Additionally, the government can establish a dedicated agency or department to provide guidance and support to private companies navigating the regulatory landscape.

By implementing these measures, the Chinese government can create a more favorable investment environment for private companies. This would help boost investment demand and support economic growth, while also signaling a commitment to supporting and revitalizing the private sector. It is essential for the government to strike a balance between regulation and incentives to ensure a conducive investment climate that encourages private companies to contribute to China’s economic development.

 

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