Profit at Chinese state industry rises with virus recovery
Profit at state-owned companies that dominate China’s banking, oil and most other industries rose by as much as 25% last year as the country recovered from the coronavirus pandemic, the government said Tuesday. Total revenue for national-level companies rose 2.2% over 2019 to 30.3 trillion yuan ($4.7 trillion), according to Peng Huagang, secretary general of the State-Owned Assets Supervision and Administration Commission. Speaking at a news conference, Peng said profit rose 2.1% to 1.4 trillion yuan ($215 billion).
China to support economic recovery, avoid ‘policy cliff’ – state planner official
China will provide necessary policy support for the economic recovery this year, to avoid a “policy cliff”, as small firms remain hard-pressed amid the pandemic, a senior official at the state planner said on Tuesday.
China’s 2021 Policy Priorities: Achieving Continuous, Stable, and Sustainable Growth
With many parts of the economy now stabilized, and the COVID-19 vaccine roll-out underway, the Chinese government is ambitious about the direction and scope of the country’s full recovery. For much of 2020, Chinese policymakers were consumed with containing the coronavirus outbreak and mitigating its economic fallout. However, by the end of 2020, we began to see the revival of long-term policy goals and national strategies and a steady shift from reacting to planning. 2021 marks the year of key milestones for China – it is the starting point for the 14th Five-Year-Plan and the centenary anniversary of the Chinese Communist Party (CCP). Market watchers should expect policy agendas to get amplified to meet long-running targets that will match the sense of occasion. In this article, we reflect upon what has transpired on the road to recovery, important policy commitments and economic adjustment strategies from last year, and what to expect in the next 11 months
China’s economic boom is a great story, but for many it still reads like Les Misérables
As China’s economic boom continues to predominantly favour the rich and powerful, there are questions about why life for many must be so hard in a period of prosperity Anecdotal examples of economic hardship are rife among China’s working class Chinese leadership has clearly seen the problem with leaving many people out in enjoying the fruits of the country’s economic growth. President Xi Jinping said in a recent speech that the country’s development must be for the people, and that the wealth gap must be tackled as a “political” problem as well. It will be worth keeping an eye on what Xi will do in 2021 to turn a good economic story into gains for the Chinese people.
With 2.3% growth, China likely to be only major economy to expand in 2020
China’s GDP grew 2.3% in 2020 as the world’s second-largest economy managed a steady recovery from the fallout of its Covid-19 outbreak a year ago, official data showed on Monday, reported Caixin.
The annual growth rate was the lowest since 1976, but still beat the International Monetary Fund’s (IMF) projection for a 1.9% increase. The organization expected China to be the only major economy to expand in 2020. China’s full-year GDP came in at RMB 101.6 trillion ($15.7 trillion), the first time it surpassed RMB 100 trillion, according to the National Bureau of Statistics (NBS).“Our country was early in containing the outbreak, early in resuming work and production, and early in achieving economic growth,” NBS head Ning Jizhe said at aMonday briefing, reported Caixin. The economic gap between China and the U.S. is becoming smaller, said Feng Xuming, a researcher at state-backed think tank the Chinese Academy of Social Sciences. Based on the latest IMF projection for the US’ GDP, China’s economy as a percentage of the US’ was likely to have increased to 70.8% in 2020 from 66.7% the previous year, he told Caixin.
WSJ report on China’s economy to reach parity with the US by 2028
2028 is five years earlier than pre-covid forecasts and comes in the light of China’s economy bouncing back (albeit in a patchy fashion, the consumer is still very weak) and the US’ relatively languishing under the weight of the mishandling of the crisis.
China’s national security screening rules for foreign investments enter force
Seen as retaliation for growing opposition to Chinese investments abroad, the laws require screening across a broad range of sectors Foreign businesses in China worry about further market distortions, but Beijing says rules mimic screening mechanisms in other countries
Is China’s Debt Crisis A Ticking Time Bomb For Luxury?
China’s rising national debt levels will eventually hamper economic growth and create a market with less disposable income for luxury. Total Chinese debt across all sectors (household, government, financial and non-financial corporate) rose to 318 percent of GDP in the first quarter of 2020, the Institute of International Finance reports. Household debt increased to 57.7 percent of China’s GDP in the first quarter of 2020.The luxury industry doesn’t seem to be equipped to face a reality check. And without the super-Chinese consumer, the industry can’t thrive or even survive. Total Chinese debt across all sectors (household, government, and corporate) rose to 318 percent of the GDP in the first quarter of 2020, according to the Institute of International Finance. And based on early signs, Beijing seems open to fiscal policies to keep China’s economy afloat that will balloon the national debt even more.
China’s small exporters weakened by strong yuan and surging costs
Economic recovery comes at steep price for most vulnerable businesses An army of forklifts races to bring in pallet after pallet of medical supplies at a warehouse at Tianjin Binhai International Airport, roughly a half-hour drive from the heart of its namesake city. The heavily wrapped packages, containing masks and other materiel for the war on COVID-19, await shipment abroad.
China-EU investment deal shows a Joe Biden united front on trade will not be easy
The EU’s decision to proceed with the deal and ignore Biden’s requests to slow down shows the extent to which US and EU China strategies are not always in sync Some type of US-EU coalition on China is likely to materialise, but it will be more limited in scope and more complicated to manage than originally thought
US-China relations: calls for Biden administration to rebuild ties and reset policy
Chinese economist sees ‘partial recovery’ in the relationship and more cooperation under the new US leadership American business group warns of the damage that could be caused by a further escalation in trade tensions
The Ball Of De-Americanization Starts Rolling As China Seeks Secure Supply Chains
There were 413 equity investment cases in the domestic semiconductor industry in 2020, with an investment amount of more than RMB140 billion yuan, which is nearly five times as much as the investment of about RMB30 billion yuan recorded in 2019, according to statistics released by WINSOUL CAPITAL. This is also the year when Chinese investors have invested the most in the private market (not counting investments related to publicly listed companies) of semiconductors in history. Due to the strong demand for imports replacement highlighted by US export bans that put some Chinese companies to the verge of collapse, many semiconductor companies have experienced rapid growth in their performance in the past year. For venture and private investments, investors are favoring those with more mature outlook with investment after series C round increasing significantly.
Why China plans to tax the booming digital economy
Huge sector has drawn government interest as revenue target but task is not easy Now that digital commerce accounts for more than a third of its economy, China is looking for ways to more effectively tax domestic e-commerce titans like Alibaba, Tencent and Didi Chuxing.
China likely to pull ahead on digitization after growing economy despite coronavirus
In 2020, Japan ranked 27th among 63 economies in digital technology competitiveness, while China placed 16th in the global ranking released by the International Institute for Management Development, a business education school in Switzerland. “Only China can bring the virus under control and maintain a high economic growth rate in 2021,” wrote Yukio Noguchi, an adviser to Waseda University Institute for Business and Finance in Tokyo, in a post on Twitter. China’s advances in state-of-the art technologies “might continue,”
Pinduoduo worker deaths reignite debate on 996 and the dark side of China tech’s overwork culture
Pinduoduo confirmed the deaths of two young workers recently, sparking debate over a culture of overworking in China’s tech companies A ‘996’ work schedule of 12 hours a day, six days a week has become an unwritten standard for many of the country’s tech firms
China braces for another record year of bond defaults as cash-starved developers breach central bank’s red lines for borrowings
Only 6.3 per cent of all rated Chinese developers can comply with the central bank’s red line limits on debt, according to S&P’s analysis Seven developers, or more than 20 per cent of those listed on the Shenzhen, Shanghai or Hong Kong exchanges, are tagged red, according to Northeast Securities
China awards $9.02 billion of new foreign investment quotas
China’s foreign exchange regulator allocated an additional $9.02 billion of foreign investment quotas to qualified domestic investors to encourage more investment abroad, reported Caixin. According to the State Administration of Foreign Exchange (SAFE), 90% of the newly issued quotas, or $8.15 billion, were granted to mutual fund companies. As of Jan. 13, China has allocated a total of $125.7 billion of overseas investment quotas to financial institutions under the Qualified Domestic Institutional Investors (QDII) program, SAFE said.
China’s first carmaker FAW joins the rush to ditch petrol guzzlers in a 30 billion yuan venture with Audi to produce electric cars
FAW Group will own 40 per cent of the 30 billion yuan plant in Changchun, built with its German partner Audi The Audi-FAW plant will go into production in 2024
Hang Seng Index approaches 30,000 level on record trading volume as mainland cash fuels best start to year since 1985
Hang Seng Index came within 1.2 per cent of 30,000-point level last seen in May 2019 as HK$301.6 billion worth of stocks changed hands in market’s busiest day ever Stocks extended their best start to a year since 1985 with an 8.9 per cent rally, recouping US$2.5 trillion of market value from March 2020 lows
Nearly 100 million in China reportedly supplied with unsafe drinking water
Almost 100 million people of different cities of China have been reportedly supplied with potable water containing high levels of toxic chemicals. South China Morning Post (SCMP) reported that the cities of Wuxi, Hangzhou and Suzhou and Foshan have been impacted by the unsafe level of dangerous chemicals in water. A team of Tsinghua University found high levels of per- and polyfluoroalkyls (PFAS), which are used in fabrics and pesticides.
Is a China-ASEAN Comprehensive Strategic Partnership Likely in 2021?
Things look promising for an expansion of ASEAN-China ties – but some formidable hurdles remain. In a nutshell, it remains uncertain that a comprehensive strategic partnership between China and the grouping is within reach in 2021, even though this year appears at first glance to represent an appropriate occasion for the deepening of China-ASEAN ties. The above mentioned hurdles mentioned may hinder China’s efforts in this regard, despite Wang Yi’s charm offensive earlier this month. ASEAN may well embrace a “wait and see” attitude – a tactically risk averse move, given the ongoing U.S.-China competition – while keeping a watchful eye on the possible trajectories of President Biden’s China policy.
China still needs Australia to power its economic recovery
China and Australia spent much of last year in a tense standoff on trade. But as the recovery of the world’s second largest economy gathers pace, China needs more iron ore and Australia is still its main supplier. Beijing on Monday reported that China’s GDP grew 2.3% last year, averting the recession that gripped much of the world as the coronavirus pandemic spread. GDP in the fourth quarter grew by 6.5%, compared with a year earlier.
China and Pakistan fall out over Belt and Road frameworks
Deadlock over interest rates for major rail project stalls annual summit China and Pakistan are embroiled in their most serious disagreement relating to the Belt and Road Initiative, causing the annual bilateral summit of the China-Pakistan Economic Corridor (CPEC) to be delayed. An important long-term implication of this case for other BRI countries could be that China will be more wary of lending to countries that have entered loan agreements with global lenders such as the IMF. Hasaan Khawar, an Islamabad-based public policy analyst, views the situation from a different perspective. “The back-and-forth with China by Pakistan on the interest rate and additional guarantees for the ML-1 project is a good sign,” he told Nikkei. “The Pakistani side is appraising the terms carefully and trying to negotiate a better deal.”
Can Soft Power Rejuvenate China’s Belt And Road?
Due to the pressing relevance of the latter, China appears to have embarked on a so-called vaccine diplomacy. Considering that several wealthy countries have been accused of “hoarding” vaccines, the opportunity for Beijing to distribute vaccines among developing countries combined with assistance for post-emergency recovery might have a significant impact on China’s image and reputation. In a nutshell, the BRI’s potential is undeniable but the negotiation, execution, and reception are still in the making. Beijing might want to double down on its efforts to elevate the embedded soft-power factor in its grand connectivity masterplan. Although relations with the United States (US) are tense and clearly defined by hard power interactions, China’s relations with countries that have joined the BRI ought to be characterised by a combination of soft and economic strategies to pave the way to stronger and long-lasting collaboration. Ultimately, the post-pandemic period could prove crucial to revamp this ambitious effort while also constituting a unique opportunity for Southeast Asia and its peopl
China ‘must use its strengths’ to curb pro-independence forces in Taiwan
Wang Yang, a member of the top leadership body, says containing separatism and promoting integration are key priorities for the Communist Party’s centenaryUnlike last year he does not explicitly mention ‘peaceful reunification’ and analysts say Beijing wants wiggle room ahead of Joe Biden’s presidency
As Chinese cities face new Covid-19 lockdowns, have lessons of 2020 been learned?
Echoes in Hebei of measures a year ago in Wuhan, with students stranded in icy conditions and some people unable to get routine medical treatment Residents complain of mistakes being repeated, as countries continue to struggle to balance a speedy response with the public’s wider needs
Coronavirus pandemic review panel critical of delays by China and WHO, seeking ‘global reset’
Chinese officials could have applied public health measures more forcefully in January, says group of independent experts The panel called the global pandemic alert system ‘not fit for purpose’, saying the WHO should have declared an international emergency earlier
China and US clash at WHO over coronavirus investigation in Wuhan
The US wants China to share all scientific studies into animal, human and environmental samples taken in the city where Covid-19 was first reported China’s representative to the UN health agency’s executive board calls for end to ‘political pressure’
Wuhan medics undercover: ‘We were told to lie about Covid-19 outbreak’
Chinese medics have been filmed undercover for the first time admitting they realised coronavirus could be transmitted between humans but were told by the government to keep quiet. Senior medics in Wuhan who witnessed some of the first cases of the virus were secretly filmed by a citizen journalist for an ITV documentary. The medics said they were in no doubt how dangerous the virus was and that they were aware of deaths as early as the end of December 2019.
Their Only Child Gone, ‘Shidu’ Parents Shun China’s Kid-Centric Society
The country’s bereaved parents have a hard time socializing in an era of intensive parenting.
webinar today New Access2Markets portal, Exporting from the EU, Importing into the EU
The respect of free trade agreements is essential for companies that want to export, to explore new markets. This is demonstrated by the more than 500 participants in the webinar on the EU export platform #Access2Markets.
Service Asie Pacifique
Place Sainctelette 2
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2020 awex, All rights reserved