China Economic Quarterly International (CEQI)

 

Volume 6, Number 1

March 2026

 

Shifting the safety net: Does social health insurance reshape intergenerational support?

Si Shi, Bingxin Hu, Yawen Jiang

 

From algorithm to alliance: The role of AI in shaping corporate collaborative innovation

Sijin He, Pengfei Li

 

Internal and external uncertainties and macroeconomic downside risk in China

Yongdong Shi, Xiaofeng Xu, Hongxian Zhen

 

The policy of tax credit bank loan promotes employment in small and micro enterprises

Chen Feng, Shuning Liang, Cong Li, Xiaofang Xu

 

Environmental and ecological taxation in the People's Republic of China and the case for the introduction of a carbon tax

Anwar Shah

 

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Shifting the safety net: Does social health insurance reshape intergenerational support?

Si Shi, Bingxin Hu, Yawen Jiang

Abstract

This study investigates the impact of China's Urban-Rural Resident Basic Medical Insurance (URRBMI) integration on intergenerational economic transfers within rural families. Exploiting its staggered rollout as a quasi-natural experiment, we employ a difference-in-differences design with the China Health and Retirement Longitudinal Study. Results show that the integration policy significantly increases downward transfers from parents to children, particularly among married, healthier parents with fewer children and no grandchild-care responsibilities in eastern and central regions. Conversely, we find no significant effect on upward transfers from children to parents. Mechanism analyses suggest that the policy enhances parents' willingness and capacity to support children by alleviating medical expenses and uncertainty about future health costs, rather than increasing labor participation. Overall, URRBMI integration shifts private family risk-sharing toward children without reducing upward transfers. The concentration of benefits among relatively advantaged parents indicates uneven distributional effects and limited protection for more vulnerable rural elders.

 

From algorithm to alliance: The role of AI in shaping corporate collaborative innovation

Sijin He, Pengfei Li

Abstract

Based on data from Chinese manufacturing listed companies between 2010 and 2024, this study empirically examines the impact of corporate artificial intelligence (AI) adoption on collaborative innovation performance and its underlying mechanisms. The results indicate that AI application not only directly enhances collaborative innovation but also exerts an indirect effect through two mediating channels: reducing knowledge acquisition costs and strengthening knowledge integration capability. Further analysis of moderating effects reveals that this positive impact is more pronounced in contexts characterized by a strong collaborative culture and a lower regional litigation risk. By adopting a dual-mechanism perspective of “cost and capability” in knowledge management, this research systematically uncovers the intrinsic pathways through which AI enables collaborative innovation, providing valuable theoretical insights and practical implications for understanding how AI technology reshapes inter-organizational knowledge collaboration and innovation models.

 

Internal and external uncertainties and macroeconomic downside risk in China

Yongdong Shi, Xiaofeng Xu, Hongxian Zhen

Abstract

Focusing on the macroeconomic downside risk under uncertainty shocks, we begin by refining the measurement of China's internal and external economic uncertainties, and the adjustment for extreme outliers caused by the COVID-19 pandemic is effective in enhancing the accuracy of uncertainty measurements. We then employ a quantile vector autoregression model to investigate the relationship between internal and external economic uncertainties and China's macroeconomic downside risk. The results indicate that when the economy is experiencing slow growth, the negative effects of internal uncertainty shocks become more pronounced. A high-intensity internal uncertainty shock may significantly increase the downside risk of China's economic growth. External uncertainty shocks can not only exert a direct impact on the downside risk of China's economy but also induce indirect disturbances by amplifying the internal uncertainty.

 

The policy of tax credit bank loan promotes employment in small and micro enterprises

Chen Feng, Shuning Liang, Cong Li, Xiaofang Xu

Abstract

Using the policy of tax credit bank loan (TCBL) as a case study, this paper examines how the reduction in asymmetry in the information of “Banks, Tax Authorities, and Enterprises” affects the level of employment of small and micro enterprises. This paper finds that the implementation of the TCBL can significantly increase the employment level and employment growth rate of SMEs. This effect primarily stems from the increase in the financing level of micro and small enterprises and the expansion of the sector. Moreover, the policy is associated with positive gains in firm productivity and production capacity.

 

Environmental and ecological taxation in the People's Republic of China and the case for the introduction of a carbon tax

Anwar Shah

Abstract

This paper examines the evolution of environmental and ecological taxation in the People's Republic of China (PRC), tracing the transition from a "command-and-control" regulatory model to a sophisticated, market-based legal framework centered on the 2018 Environmental Protection Tax (EPT) Law. While the current regime successfully targets air, water, solid waste, and noise pollution, significant gaps remain regarding carbon emissions, plastics, and road congestion. Drawing on international comparisons from the European Union's centralized price signals and the United States' incentive-based model, the study argues for the introduction of a revenue-neutral carbon tax to complement China's National Emissions Trading Scheme (ETS). Such a tax is projected to yield "quadruple dividends" by combating climate change, reducing local pollution, improving public health, and enhancing economic efficiency through the replacement of distortionary enterprise taxes. Ultimately, the paper outlines an integrated policy architecture aligned with the 15th Five-Year Plan (2026–2030), emphasizing the strategic use of carbon taxation to ensure international competitiveness—particularly as a defense against the EU's Carbon Border Adjustment Mechanism (CBAM)—while facilitating China's transition to a sustainable, green economy.