• January 02, 2018

As the year 2017 draws to an end, let's take a look at 10 keywords for China's economy this year. 1 Xiongan New Area On April 1, the central government announced it would develop Xiongan New Area in North China’s Hebei province, about 100 kilometers southwest of downtown Beijing. It will be the third national special economic zone after Shenzhen Special Economic Zone and Shanghai Pudong New Area. According to a circular issued by the Communist Party of China (CPC) Central Committee and the State Council, the move will help phase out non-capital functions from Beijing, explore a new model of optimized development in densely-populated areas, and restructure the urban layout in the Beijing-Tianjin-Hebei region. The new area will cover around 100 square km initially and will be expanded to 200 square km in mid-term and about 2,000 square km in the long-term. 2 C919's maiden flight China's homegrown largest passenger jet C919 took to the sky on May 5. The orders for C919 reached 785 aircraft by Dec 6. 3 Real estate market China has carried out a series of measures to boost home rental market, and is building a long-term mechanism to maintain stability in the property market. In July, Chinese city Guangzhou announced move to provide tenants equal rights to educational resources as homeowners. In the same month, China's Ministry of Housing and Urban-Rural Development and other eight government departments issued a notice that said measures will be taken in cities with net population inflows, including increasing rental housing supplies and setting up a government-backed home rental service platform. In September, Beijing authorities announced a new rental policy to speed up development of home rental market. General Secretary of the Communist Party of China Central Committee Xi Jinping reiterated in his report to the 19th CPC National Congress that "houses are for living in", which has set the tone for China's housing development, and a variety of housing reforms and measures are expected to be rolled out over the next five years. In his report, Xi once again said that housing is not for speculation and the country will accelerate the building of a rental market in the country. China will move faster to put in place a housing system that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both housing purchases and renting in 2018, according to a statement released after the annual Central Economic Work Conference. 4 AI guideline On May 27, AlphaGo, DeepMind's artificial intelligence Go-playing program, defeated world's top-ranked player Ke Jie for the third consecutive game between them. In July, the State Council unveiled a plan calling for developing technology, research and educational resources in AI to achieve major breakthroughs by 2025 and make China an AI innovation center by 2030. In December, the Ministry of Industry and Information Technology unveiled a three-year plan to boost the appl...

• December 25, 2017

China's cabinet has ordered temporary adjustment of state regulations in Beijing as the country's capital opens its service sector wider to foreign investment. The move came after the central government approved a pilot program in June to ease market access for foreign investment in Beijing in such areas as science and technology, culture and education, financial services, business and travel, and health and medical services. A State Council document said authorities will adjust rules on administrative approvals and market access, including those on entertainment performances and venues, foreign-funded banks and foreign investment in civil aviation in Beijing. The changed rules will allow foreign investors to set up firms operating performance venues with no ownership restrictions. Foreign investment will also be permitted in air transport service sales agencies. China will push for nationwide implementation of a pre-establishment national treatment system as well as a negative list that determines where foreign participation is prohibited or limited, according to the Central Economic Work Conference, which concluded Wednesday. The negative list will become shorter, while laws and regulations on foreign investment will be improved, and protection of intellectual property rights will be enhanced, said a statement released after the annual tone-setting conference.

• December 18, 2017

The Central Economic Work Conference opened Monday, as Chinese leaders began to review the country's economic performance in 2017 and make plans for 2018.  While reviewing the economic work during the past five years, the meeting will focus on implementing decisions at the 19th National Congress of the Communist Party of China and making arrangements for economic tasks in 2018, with high-quality development as a fundamental requirement.  Observers noted that the decisions to be made at the meeting will reflect China's new development concept featuring high-quality development.  Curbing major risks, eradicating poverty and pollution control would be the "three tough battles" for 2018, with substantial progress expected.  The economic agenda will focus on deepening supply-side reform, invigorating market participants, applying rural revitalization strategy, pushing coordinated rural-urban development and all-around opening up.  The work in the next year will also be aimed at helping improve people's living standard, building a housing mechanism with lasting effects, and supplying more high-quality ecological products.  China's GDP expanded 6.9 percent year on year in the first three quarters, above the government's target of around 6.5 percent for this year.  The economy has shown improving structures with new economy contributing over 10 percent to the overall growth, and the growth rate of residents' income outstripping the overall economic growth.  With an average growth of over 7 percent in the past 5 years, the Chinese economy contributed over 30 percent of global economic growth, seen as powerhouse and anchor of the global economy.  However, the world's second largest economy still faces complicated global environment and domestic structural conflicts, potential risks in the financial system, and disparities by industries and regions.  The International Monetary Fund (IMF) recently pointed out China's rapid build-up of credit and risky lending moving away from banks toward less-regulated parts of the financial system known as "shadow banking".  "The system's increasing complexity has sown financial stability risks," the IMF said, advising China to take measures such as strengthening of systemic risk oversight and improving regulation.

• December 18, 2017

The inaugural China-Africa Industrial Capacity Cooperation Expo, which concluded in Kenya's Nairobi on Saturday, has seen a strong interest in Sino-African industrial cooperation. The maiden expo has attracted more than 50 Chinese firms drawn from diverse sectors to showcase their products and services. It also featured interactive sessions between Chinese and African firms keen to forge partnerships. Adan Mohamed, Kenya's Cabinet Secretary for Trade, Industry and Cooperatives, said the Nairobi expo reinforced the critical role of China to advance industrial progress in Africa. "The China-Africa forum happening for the first time on the African continent symbolizes the confidence China has on Africa and its desire to deepen that partnership to a higher level," Mohamed said. At the four-day event, African officials also participated in roundtables aimed at showcasing investment opportunities in their home countries to Chinese investors. Managing Director of Kenya Investment Authority Moses Ikiara said the expo offered a platform for both sides to explore new partnerships that can unleash mutual benefits. "We hope African countries will be able to tap into China's strength in areas of technology, manpower and finance to develop a strong manufacturing base," Ikiara remarked. He added that implementation of China's Belt and Road Initiative will spur industrial progress in Africa while modernizing the continent's economies. The expo has attracted delegations from 30 African countries that were keen to gain understanding of China's manufacturing prowess. Aschalew Tadesse, Investment Promotion Team Leader at Ethiopia Investment Commission (EIC), said the expo was held at an opportune moment when African countries were keen to harness China's expertise, capital and technological edge to establish robust industrial parks. "Chinese investments in our priority sectors like manufacturing, infrastructure and agro-processing are timely to help drive economic growth and create employment for skilled youth," said Tadesse. Chinese investors who participated in the Nairobi expo expressed optimism about emerging opportunities in Africa. Qiu Fan, Sales Director of Shenzhen-based Romer Environmental Protection, said Africa presents new opportunities for Chinese investors thanks to rising purchasing power occasioned by strong economic growth. Qiu said his company, engaging in sea water desalination and borehole water purification, has received orders from Kenyan clients wishing to purchase water treatment technologies to deal with water-borne diseases. "We have already ventured into four African countries and are confident our returns on investment will be guaranteed," Qiu told Xinhua. "We received orders from large companies and individuals who expressed confidence in our water purifiers. There is a possibility of setting up a factory in Kenya in the near future," said Qiu. Jiang Xuejun, chief of the Office for Asia and the Pacific at the International Trade Centre (...

• December 11, 2017

China on Saturday encouraged the members of the World Trade Organization (WTO) to safeguard multilateral trade and jointly build an open global economy. Speaking to a round table on China's program for less developed countries known as the "China Program" during a WTO summit in Buenos Aires, Chinese Commerce Minister Zhong Shan said that China will promote the creation of a new configuration of integral opening-up, firmly support the multilateral trade regime and encourage the construction of a global open economy. He added that the elimination of poverty is a joint mission for humanity and that WTO members had to make joint efforts to achieve the UN's 2030 Agenda for Sustainable Development. This would see priority being given to less developed countries and those living in extreme poverty to create well being for all peoples.  The Chinese minister pointed to the fact that the multilateral trade system is an important safeguard for common prosperity. He said it offered a guarantee to less developed countries that, once they boosted their development capacity, they would integrated global value chains and achieve sustainable development.  Speaking about the "China Program," Zhong indicated that "China boosts less developed countries to join the WTO and asks for multi-directional help from all parties."  WTO director-general Roberto Azevedo said the China Platform offered a dialogue platform to discuss policies and exchange experiences to help poorer countries join the WTO.  He added that six less developed countries had joined the WTO in the last five years, showing the importance of Chinese contributions to multilateral trade. China and the WTO signed the "China Program" in July 2011.

• December 11, 2017

China's producer price inflation tamed down in November on low basis and government curbs on polluted industries, the National Bureau of Statistics (NBS) said Saturday. The producer price index (PPI), which measures costs for goods at the factory gate, rose 5.8 percent year on year in November. It was down from a growth of 6.9 percent recorded in October, on par with market forecast. On a monthly basis, it was up 0.5 percent. In the first 11 months, PPI climbed 6.4 percent from one year earlier. As northern China enters into winter heating season, the government has increased efforts to tackle smog, asking steel mills and smelters to halt production to curb pollution. Those measures cooled demand for industrial raw materials. Compared with a month ago, factory-gate prices gained faster in oil and natural gas developers and ferrous metal producers. Costs increased at slower pace in oil processing and chemical producing industries, NBS senior statistician Sheng Guoqing noted. Compared with a year ago, raw materials costs rose 7.5 percent, 1.5 percentage point down from that recorded in October. The PPI figures came alongside the release of the consumer price index, which rose 1.7 percent year on year in November, down from October's 1.9 percent, and missing market forecast of 1.8 percent.

• December 04, 2017

As infrastructure projects are the central focus of the "Belt and Road" initiative, the Chinese government program has an enormous impact on the capital markets due to the sheer scale of funding that it requires, experts said on Thursday during a financial forum. The event, "2017 Belt and Road Investing and Financing Forum," was put on by China Minsheng Bank and Caixin Media in Beijing. "There are 65 countries along the 'Belt and Road,' and the potential of the initiative to promote infrastructure development as well as other industries including logistics and trade will also have great impact on global investment," said Hong Qi, chairman of China Minsheng Bank. "Currently a global network of financial institutions has been built, but it's unable to meet the urgent needs of various projects due to the large scale of funding.  That's where China's financial institutions should come in," he added. China is working with 65 countries along the "Belt and Road" in the fields of infrastructure construction, production capacity, tourism and culture, all of which require a huge amount of funding. He Yafei, former Vice Foreign Affairs Minister says Chinese commercial banks will play an important role in sustainable development, especially in the developing countries. An advantage that Chinese financial institutions have is that they hold substantial foreign exchange reserves that can be used to invest in the projects, said Lin Yifu, professor of economics at Peking University.

• November 27, 2017

In a landmark decision, a court in Hangzhou, Zhejiang province, ruled in favor of e-commerce behemoth Alibaba after it sued a company for fabricating transactions and favorable comments related to online stores. It was the first such case in the country. The verdict was decided on Oct 27 and took effect on Nov 11. The defendant, Hangzhou Jianshi Network Technology, did not appeal within 15 days of the verdict. Xihu District People's Court ordered it to pay 202,000 yuan ($30,500) in compensation to Alibaba for violating the Law Against Unfair Competition and disturbing the market order of e-commerce platforms, according to a written statement from Alibaba, which is headquartered in Hangzhou. The case has far-reaching significance in the healthy development of e-commerce, Alibaba said, as "such a verdict serves as a warning to deter copycats". "Only when lawbreakers' income from illegal business is all used for compensation and they can no longer make a profit will the legitimate rights and interests of law-abiding companies and consumers be safeguarded," it said. To create a fair, transparent and honest shopping environment, Alibaba's Taobao and Tmall set up an evaluation system for consumers to evaluate products and services after each purchase, the company said. Being able to browse a product's transaction records and prior customers' evaluations has become an important decision-making tool for people selecting from a large number of products. The court said Hangzhou Jianshi established a website in 2014 specializing in accepting requests from online stores to make fake purchases and leave favorable user comments. The company made 360,000 yuan in brokerage and membership fees from September 2014 to March 2016, when its operation was suspended by Hangzhou's market supervision administration. Altogether, 3,001 Taobao and Tmall stores asked the company to fabricate transactions and user comments, according to court documents. Alibaba sued the company in December and requested compensation of 2.16 million yuan. A hearing was held on Feb 15. "Such fake evaluations constitute serious pollution of the evaluation data formed by real consumers, and mislead consumers who rely on the data to make purchase decisions," said Zhang Yiwen, a senior legal expert at Alibaba. China top legislature recently adopted a revision of its Law Against Unfair Competition, stating that e-commerce operators must not deceive consumers by faking sales volume or user comments.