world largest – Bizchina Update http://bizchina-update.com/ Sun, 27 Mar 2022 00:44:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bizchina-update.com/wp-content/uploads/2021/10/icon-120x120.jpg world largest – Bizchina Update http://bizchina-update.com/ 32 32 The Chinese economy accelerates in January-February; Omicron cases cloud outlook https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Tue, 15 Mar 2022 06:17:00 +0000 https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9% Retail sales +6.7% y/y vs f’cast +3.0% Investment in fixed assets +12.2% y/y, vs f’cast +5.0% Strength may not last as COVID cases jump – analysts BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ […]]]>
  • Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9%
  • Retail sales +6.7% y/y vs f’cast +3.0%
  • Investment in fixed assets +12.2% y/y, vs f’cast +5.0%
  • Strength may not last as COVID cases jump – analysts

BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ expectations, although an increase in Omicron business, weak real estate and heightened global uncertainties weigh on the outlook.

Industrial production rose 7.5% in January-February from a year earlier, the fastest pace since June 2021 and up from a 4.3% increase seen in December, Tuesday showed data from the National Bureau of Statistics. This compared to a 3.9% rise expected by analysts in a Reuters poll.

Retail sales, a lagging indicator of consumption since the hit of COVID-19, rose 6.7% year-on-year amid rising demand during the Lunar New Year holidays and the Olympics. winter. It also marked the fastest clip since June last year and beat expectations for a 3.0% rise in the poll.

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It posted a 1.7% gain in December.

The surprisingly strong performance of the world’s second-largest economy in the new year may have enabled the People’s Bank of China (PBOC) to keep its policy rates stable on Tuesday, said Iris Pang, chief economist for Greater China at ING, in a note.

The PBOC kept its one-year medium-term lending rate unchanged earlier in the day, dashing expectations of a cut, although investors believe policymakers may soon resume monetary easing to support the slowdown. economy. Read more

The statistics released combine economic data from January to February to help smooth out distortions caused by the Lunar New Year holiday, which fell in early February this year.

One of the data highlights was strong retail sales growth, which was boosted by sales of Winter Olympics-related products, such as ski gear and ice sports, Fu said. Linghui, spokesperson for the statistics bureau, at a press conference.

Bing mascot Dwen Dwen was an unexpected star of the Beijing Olympics, with thousands of fans queuing in sub-freezing temperatures to buy goods – from magnets and key rings to bags and soft toys – and factories scrambling to make more. Read more

The strong numbers came after growth lost momentum throughout last year due to a liquidity crunch in the housing market and stringent anti-virus measures that hit consumption.

“Indeed, every data point has bounced back, mainly because the political effects started early this year, with an easing in the infrastructure and real estate sectors. Restoration spending also remained relatively strong,” said Qu Qing, chief economist at Jianghai Securities.

However, analysts warn that any nascent recovery, which would help China reach an ambitious target of around 5.5% for 2022, could not be sustained due to the surge in COVID cases, a weak real estate market and the uncertain global recovery. Read more

Chinese stocks fell sharply on Tuesday as a rise in coronavirus cases overshadowed data and threatened the outlook.

“The momentum of economic recovery in January-February has been good. At the same time, we must also see that the external environment is still complex and severe, and China’s economic development faces many risks and challenges. “said Mr. Fu from the statistics office.

Analysts expect the central bank to continue to ease policy to support the economy.

“We still need to cut interest rates and reserve requirement ratios as soon as possible. There should be no hesitation in supporting easing policies,” said Wang Jun, chief economist at Zhongyuan Bank.

Premier Li Keqiang said last week that he was confident of achieving the economic growth target of around 5.5% for this year despite challenges including the war in Ukraine. Li also promised to provide more political support during the year. Read more

RESUMPTION OF INVESTMENTS IN INFRASTRUCTURES

Investments in fixed assets rose 12.2% in January-February from a year earlier, compared with a 5.0% increase predicted by a Reuters poll and 4.9% growth in 2021. The figure was the highest since July last year.

Investments in infrastructure rose 8.1%, helped by the move to this year’s early-loading 2022 local government special bonds.

Real estate investment rose 3.7% year on year in the first two months of 2022, following a 13.9% plunge in December, the data showed.

The slowdown in the housing market has also shown signs of easing, but sales are still mired in contraction while new construction starts have fallen by double digits.

“We continued to stabilize land prices, house prices and expectations, and there were positive changes in the real estate market,” Fu said.

China’s property market cooled last year as Beijing’s deleveraging drive triggered a liquidity crunch in some major property developers, leading to bond defaults, plummeting stock prices and suspended or suspended projects. left unfinished.

“The resurgence of COVID in several provinces is an additional drag on activity growth. Despite the relaxation of local real estate policy, real estate indicators, in particular new housing starts and land sales, have continued to Further policy easing would be needed to meet the challenging roughly 5.5% ‘growth target this year,’ Goldman Sachs analysts wrote in a note.

The national survey-based unemployment rate rose to 5.5% in February from 5.3% in January, but Fu said the rise was largely due to seasonal factors and the rate could drop after March.

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Additional reporting by Ellen Zhang, Liangping Gao and Ryan Woo; Editing by Sam Holmes, Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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World’s largest spider discovered in UK after traveling 5,000 miles in shipping container https://bizchina-update.com/worlds-largest-spider-discovered-in-uk-after-traveling-5000-miles-in-shipping-container/ Mon, 21 Feb 2022 10:52:18 +0000 https://bizchina-update.com/worlds-largest-spider-discovered-in-uk-after-traveling-5000-miles-in-shipping-container/ The Huntsman spider is not native to the UK but was accidentally shipped from China, the poisonous arachnid can reach a leg span of 12 inches and is known to eat birds and lizards The hunter’s poisonous spider has been discovered in Hull ( Image: RSPCA/TNG) The world’s largest spider has been discovered in the […]]]>

The Huntsman spider is not native to the UK but was accidentally shipped from China, the poisonous arachnid can reach a leg span of 12 inches and is known to eat birds and lizards

The hunter’s poisonous spider has been discovered in Hull

The world’s largest spider has been discovered in the UK after traveling 5,000 miles in a shipping container.

A venomous Huntsman spider has been found in Hull after surviving in a cargo store for about a month on its journey.

The spider, which can measure up to 12 inches in wingspan, was accidentally shipped thousands of miles from China.

It scared the staff when they unpacked it, and not out of recklessness they decided to drop it.

Although the bite of the arachnid is not fatal to humans, it can still cause heart palpitations, vomiting, and headaches.

On Friday, the RSPCA captured the spider safely.

A spokesperson for the animal welfare charity said: “Inspector Boyd has recovered this Huntsman spider.







The journey the spider Huntsman made from China to England
(

Picture:

RSPCA/TNG)

“He was craving a vacation so he hopped on a shipping container in China and ended up in Hull.

“He scared the staff very much.

“He now has some R&R in a specialized rescue center”

Worryingly for arachnophobes, this is far from the first time the terrifying spider has visited the UK.

Two years ago, as the country emerged from its first lockdown, a warehouse in Southwold, Suffolk suffered a similar discovery.

A container was discovered to hold the exotic arachnid, and staff promptly called the RSPCA back.

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At the time, RSPCA inspector Jason Finch said: ‘Huntsman spiders can reach up to 30cm (12 inches) in leg span, so they are quite varied.

“This spider was smaller and only measured about 6cm (2.5 inches) from leg to leg.

“He had obviously been in the container for some time with no access to food or water, but he was still active and appeared to be fine.”

He added that finding exotic spiders, insects or reptiles in shipping or moving containers “happens quite often.”

He added: “These creatures are often picked up by mistake and end up locked in containers or boxes.

“Huntsman spiders are venomous but not dangerous to people although they can give a bad bite so we always advise caution around them.

“We always advise to treat any unidentified animal with caution until it is accurately identified and not to attempt to handle an accidentally imported animal that has been discovered.”

Instead of building webs, hunter spiders earn their name by stalking and killing their prey.

They are native to parts of Australia, Africa, Asia, the Mediterranean basin and the Americas.

The giant spider reaches about six inches in wingspan on average, and several species of hunters use a bizarre cartwheel-like motion to get around, rolling on its legs.

Because they are not native to the UK, releasing these spiders into the wild or allowing them to escape would be an offense under the Wildlife and Countryside Act 1981.

Read more

Read more

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China’s economy overtakes EU’s for first time https://bizchina-update.com/chinas-economy-overtakes-eus-for-first-time/ Tue, 01 Feb 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-overtakes-eus-for-first-time/ By 2030, China is expected to become the largest economy in the world, for now it has just overtaken the EU. At a pivotal moment, China’s economy overtook the whole of the European Union (EU), for the first time. Figures released this week by the European Statistical Office (Eurostat) show that the EU’s gross domestic […]]]>

By 2030, China is expected to become the largest economy in the world, for now it has just overtaken the EU.

At a pivotal moment, China’s economy overtook the whole of the European Union (EU), for the first time.

Figures released this week by the European Statistical Office (Eurostat) show that the EU’s gross domestic product (GDP) grew by 5.2% for 2021, following a record recession in 2020.

EU GDP stood at just over $17 trillion, reverting to pre-Covid-19 size.

GDP is a measure of the market value of all final goods and services produced during a given period.

On the other hand, China’s GDP for 2021 grew by 8.1 percent, according to figures released last month by the National County Bureau of Statistics. Full-year GDP led to an increase in the value of China’s economy by $3 trillion between 2020 and $17.7 trillion in 2021, outpacing the EU.

The second largest economy in the world benefited greatly during the Covid-19 crisis from its status as the factory of the world. However, most of China’s economic gains have been driven by strong industrial production and exports.

China, however, has largely followed a zero Covid-19 policy, meaning the country has often locked down entire cities in an effort to prevent the spread of the virus.

The result has been that while the country’s manufacturing sector continues to grow, growth in services, consumption and investment has not returned to pre-pandemic levels due to localized outbreaks across the country that have prevented a return to normal.

China’s GDP growth rate easily exceeded the government’s target of more than 6% growth, and the country is now expected to account for more than 18% of global GDP.

As the country rebounded from the worst of the pandemic, analysts warn the country is still reeling from a weak real estate sector that saw businesses go bankrupt last year.

Likewise, the EU has yet to fully recover from the tight restrictions of the Omicron variant, which have led to tighter restrictions across the economic bloc, resulting in lower consumer spending and bottlenecks in the supply chain, affecting manufacturing.

China’s ability to leapfrog the bloc has also been influenced in part by the UK’s withdrawal from the EU after Brexit. The UK’s GDP of $2.7 trillion was the second largest in the bloc after Germany.

Beijing still has a long way to go before becoming the largest economy on the planet.

In a report released last month, the British consultancy Center for Economics and Business Research (CEBR) predicted that China will overtake the United States as the world’s largest economy by 2030.

In 2021, US GDP was just under $23 trillion, an increase of $2.10 trillion from 2020 figures.

The CEBR report projects that the US economy will continue to grow without any of the growth spurts needed to maintain its lead. He also added that China’s massive pool of engineers would be an important engine of growth unlike the United States, which cannot produce the same level of highly skilled labor.

In recent years, Chinese leaders have shifted their focus from achieving maximum levels of GDP growth to a high-quality growth stage.

Chinese President Xi Jinping said at the 19th National Congress of the Communist Party of China in 2017 that the country’s economy was emerging from a phase of rapid growth.

This means that the country is now seeking to invest and manufacture high-end products through innovation and technological self-sufficiency.

In a report on China’s reforms towards higher quality growth, the World Bank said the country needed to rebalance “external demand towards domestic demand and growth led by investment and industry towards greater dependence on consumption and services”.

The report adds that the country will also need to transition from a high-carbon to a low-carbon economy. China is already a world leader in renewable energy production figures and is currently the largest producer of wind and solar power in the world. It also has the largest electric vehicle market in the world.

Source: World TRT

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China’s economy starts the year faltering https://bizchina-update.com/chinas-economy-starts-the-year-faltering/ Sun, 30 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-starts-the-year-faltering/ BY JONATHAN CHENG | UPDATED JANUARY 30, 2022 12:54 AM EST Manufacturing and services sector surveys show pullback in January as latest Covid-19 outbreaks hit domestic demand China’s economy started the year on an uncertain footing as Covid-19 outbreaks disrupted factory activity and consumer spending, according to a trio of manufacturing and service sector surveys. […]]]>

BY JONATHAN CHENG | UPDATED JANUARY 30, 2022 12:54 AM EST

Manufacturing and services sector surveys show pullback in January as latest Covid-19 outbreaks hit domestic demand

China’s economy started the year on an uncertain footing as Covid-19 outbreaks disrupted factory activity and consumer spending, according to a trio of manufacturing and service sector surveys. published on Sunday.

Two gauges of China’s manufacturing activity – one official and one private – each retreated in January, while a third measure, of the country’s service sector, shed light on the heavy toll that the latest spike in coronavirus infections coronavirus has inflicted on domestic demand.

China’s official manufacturing purchasing managers’ index fell to 50.1 in January, the National Bureau of Statistics said, from 50.3 in December and just above the 50 mark that separates the expansion of contraction activity.

The result was in line with the median forecast of economists polled by The Wall Street Journal and marked the third month in a row that the measure has been in expansionary territory.

However, the sub-index measuring total new orders contracted further, falling to 49.3 in January, while new export orders improved to 48.4 in January, still in contraction territory. . Factory output in January weakened to 50.9 and likely would have been even weaker had it not been for an acceleration in consumer goods production ahead of the Lunar New Year holiday which begins on February 1, the statistics office said. .

Meanwhile, the Caixin China manufacturing PMI, a private gauge that’s more focused on smaller private companies than the official manufacturing index – which is weighted more towards large state-owned companies – fell to 49.1 in January, its highest. low level since February 2020, at the peak of the initial Covid-19 outbreak in China.

The sharp decline in Caixin’s manufacturing PMI, from a reading of 50.9 in December, came as the production and total new orders sub-indexes fell to their lowest levels since August, said Caixin.

Overseas demand also contracted at a faster pace than usual as the rapid spread of the Omicron variant of the coronavirus dampened global consumer sentiment.

Weak demand prompted manufacturers to slow their pace of hiring in January to cut costs, the Caixin employment sub-index showed.

“This year, policymakers should focus on stability,” Wang Zhe, an economist at Caixin Insight Group, said in a press release accompanying the data release on Sunday.

Separate data on China’s services sector, also released by China’s statistics bureau on Sunday, showed renewed weakness in a part of the economy that has lagged the broader pandemic recovery for nearly two years.

While Chinese leaders have stressed the importance of orienting the Chinese economy more towards domestic consumption, this effort has repeatedly been hampered by new Covid outbreaks and the government’s strict measures to contain them.

China’s official non-manufacturing PMI, which includes both services and construction activity, fell to 51.1 in January from 52.7 in December, the statistics bureau said on Sunday.

The sub-index measuring services activity fell to 50.3 in January, the lowest level in five months, from 52.0 in December, dragged down by coronavirus outbreaks across the country.

Sub-indices tracking sectors of the economy requiring close human contact, including hospitality and consumer services, fell below 45, reflecting lower consumer willingness to spend, Zhao Qinghe said, Senior Statistician at the Chinese Bureau of Statistics.

The sub-index measuring construction activity also weakened to 55.4 in January, from 56.3 the previous month, as weather conditions and the return trips of construction workers for the New Year’s Eve festival Lunar year have taken their toll, the statistics office said.

Economic data releases this year give a first glimpse of the health of the world’s second-largest economy, which quickly lost momentum in the final months of 2021.

For the whole of last year, China recorded an expansion of gross domestic product of 8.1% compared to the previous year, but the growth profile was unbalanced. In the third and fourth quarters, year-over-year GDP growth was 4.9% and 4.0%, respectively, which is below China’s pre-Covid growth trajectory.

Late last year, Chinese leaders began to signal a move towards promoting stability rather than the structural reforms and disciplines they unleashed on a number of key drivers of economic growth, including the real estate, technology and private education sectors.

The Chinese central bank lowered its key benchmark rates twice, in December and January, while freeing up to lend a large sum of funds that it had forced banks to keep in reserve. Authorities have also recently encouraged banks to provide more home loans and made it easier for cash-strapped property developers to offload troubled assets.

However, Sunday’s release of relatively weak PMI numbers “indicates that the government’s policy easing measures have yet to trickle down to the real economy,” Zhang Zhiwei, an economist at Pinpoint Asset Management, wrote in a statement. note.

Zhang said the pandemic, combined with the collapse of the real estate sector, remained the main risks for the Chinese economy. He predicted that the government would further increase political support in the coming months, including through increased budget spending.

Last week, Chinese Premier Li Keqiang reiterated his promises to give more tax breaks to companies, especially small private companies.

More broadly, economists widely expect Beijing to roll out more easing measures as leaders prioritize stability in a politically important year when Chinese leader Xi Jinping will almost certainly seek and obtain a third term in office.

Across China, provincial and regional governments have set economic targets for 2022 that are roughly in line with last year’s growth rates, despite the heightened headwinds the economy is currently facing.

With the exception of Tianjin, a directly administered municipality that has yet to release its 2022 target, the country’s other 30 provincial governments directly administered by Beijing have a weighted average GDP growth target this year of 6.1 percent. , according to China. International Capital Corp., a Chinese investment bank.

This matched the weighted average GDP target set by all provinces and municipalities in 2021 and close to the national target of “6.0% or more” set in March 2021 by China’s top legislature, the CICC said. . Beijing is expected to release its annual growth target for 2022 in early March.

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China’s economy starts the year with a bang https://bizchina-update.com/chinas-economy-starts-the-year-with-a-bang/ Sun, 30 Jan 2022 05:54:00 +0000 https://bizchina-update.com/chinas-economy-starts-the-year-with-a-bang/ China’s economy started the year on an uncertain footing as Covid-19 outbreaks disrupted factory activity and consumer spending, according to a trio of manufacturing and service sector surveys. published on Sunday. Two gauges of China’s manufacturing activity – one official and one private – each retreated in January, while a third measure, of the country’s […]]]>

China’s economy started the year on an uncertain footing as Covid-19 outbreaks disrupted factory activity and consumer spending, according to a trio of manufacturing and service sector surveys. published on Sunday.

Two gauges of China’s manufacturing activity – one official and one private – each retreated in January, while a third measure, of the country’s service sector, shed light on the heavy toll that the latest spike in coronavirus infections coronavirus has inflicted on domestic demand.

China’s official manufacturing purchasing managers’ index fell to 50.1 in January, the National Bureau of Statistics said, from 50.3 in December and just above the 50 mark that separates the expansion of contraction activity.

The result was in line with the median forecast of economists polled by The Wall Street Journal and marked the third month in a row that the measure has been in expansionary territory.

However, the sub-index measuring total new orders contracted further, falling to 49.3 in January, while new export orders improved to 48.4 in January, still in contraction territory. . Factory output in January weakened to 50.9 and likely would have been even weaker had it not been for an acceleration in consumer goods production ahead of the Lunar New Year holiday which begins on February 1, the statistics office said. .

Container ships at a terminal in the port of Taicang in China’s Jiangsu province.


Photo:

Finn / Costfoto/Zuma Press

Meanwhile, the Caixin China manufacturing PMI, a private gauge that’s more focused on smaller private companies than the official manufacturing index – which is weighted more towards large state-owned companies – fell to 49.1 in January, its highest. low level since February 2020, at the peak of the initial Covid-19 epidemic in China.

The sharp decline in Caixin’s manufacturing PMI, from a reading of 50.9 in December, came as the production and total new orders sub-indexes fell to their lowest levels since August, said Caixin.

Overseas demand also contracted at a faster than usual rate as the rapid spread of the Omicron variant of the coronavirus dampened global consumer sentiment.

Weak demand prompted manufacturers to slow their pace of hiring in January to cut costs, the Caixin employment sub-index showed.

“This year, policymakers should focus on stability,” Wang Zhe, an economist at Caixin Insight Group, said in a press release accompanying the data release on Sunday.

Separate data on China’s services sector, also released by China’s statistics bureau on Sunday, showed renewed weakness in a part of the economy that has been lagging the broader pandemic recovery for nearly two years.

The 1000 Trees shopping center in Shanghai.


Photo:

alex plavevski / Shutterstock

While Chinese leaders have stressed the importance of orienting the Chinese economy more towards domestic consumption, this effort has repeatedly been hampered by new Covid outbreaks and the government’s strict measures to contain them.

China’s official non-manufacturing PMI, which includes both services and construction activity, fell to 51.1 in January from 52.7 in December, the statistics bureau said on Sunday.

The sub-index measuring services activity fell to 50.3 in January, the lowest level in five months, from 52.0 in December, dragged down by coronavirus outbreaks across the country.

Sub-indices tracking sectors of the economy requiring close human contact, including hospitality and consumer services, fell below 45, reflecting lower consumer willingness to spend, Zhao Qinghe said, Senior Statistician at the Chinese Bureau of Statistics.

The sub-index measuring construction activity also weakened to 55.4 in January, from 56.3 the previous month, as weather conditions and the return trips of construction workers for the New Year’s Eve festival Lunar year have taken their toll, the statistics office said.

Economic data releases this year give a first glimpse of the health of the world’s second-largest economy, which quickly lost momentum in the final months of 2021.

Chinese authorities encouraged banks to provide more home loans and made it easier for cash-strapped property developers to offload troubled assets.


Photo:

Andrea Verdelli/Bloomberg News

For the whole of last year, China recorded gross domestic product growth of 8.1% over the previous year, but the growth profile was unbalanced. In the third and fourth quarters, year-over-year GDP growth was 4.9% and 4.0%, respectively, which is below China’s pre-Covid growth trajectory.

Late last year, Chinese leaders began to signal a move towards promoting stability rather than the structural reforms and disciplines they unleashed on a number of key drivers of economic growth, including the real estate, technology and private education sectors.

The Chinese central bank lowered its key benchmark rates twice, in December and January, while freeing up to lend a large sum of funds that it had forced banks to keep in reserve. Authorities have also recently encouraged banks to provide more home loans and made it easier for cash-strapped property developers to offload troubled assets.

However, Sunday’s release of relatively weak PMI numbers “indicates that the government’s policy easing measures have yet to trickle down to the real economy,” Zhang Zhiwei, an economist at Pinpoint Asset Management, wrote in a statement. note.

Zhang said the pandemic, combined with the collapse of the real estate sector, remained the main risks for the Chinese economy. He predicted that the government would further increase political support in the coming months, including through increased budget spending.

Last week, Chinese Premier Li Keqiang reiterated his promises to give more tax breaks to companies, especially small private companies.

More broadly, economists widely expect Beijing to roll out more easing measures as leaders prioritize stability in a politically important year when Chinese leader Xi Jinping will almost certainly seek and obtain a third term in office.

Across China, provincial and regional governments have set economic targets for 2022 that are roughly in line with last year’s growth rates, despite the heightened headwinds the economy is currently facing.

With the exception of Tianjin, a directly administered municipality that has yet to release its 2022 target, the country’s other 30 provincial governments directly administered by Beijing have a weighted average GDP growth target this year of 6.1 percent. , according to China. International capital company.

a Chinese investment bank.

This matched the weighted average GDP target set by all provinces and municipalities in 2021 and close to the national target of “6.0 percent or more” set in March 2021 by China’s top legislature, the CICC said. . Beijing is expected to release its annual growth target for 2022 in early March.

-Grace Zhu contributed to this article.

Write to Jonathan Cheng at Jonathan.Cheng@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Chinese economy: MOFCOM: foreign trade hits a new high in 2021 https://bizchina-update.com/chinese-economy-mofcom-foreign-trade-hits-a-new-high-in-2021/ Thu, 27 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinese-economy-mofcom-foreign-trade-hits-a-new-high-in-2021/ China has become the world’s second-largest consumer market, the largest trader of goods for five consecutive years and the second-largest destination for foreign direct investment in 2021, the Chinese ministry announced on Tuesday. of Commerce during a press conference while unveiling the affairs of the country. and business performance for 2021. Yang Shanshan has more. […]]]>

China has become the world’s second-largest consumer market, the largest trader of goods for five consecutive years and the second-largest destination for foreign direct investment in 2021, the Chinese ministry announced on Tuesday. of Commerce during a press conference while unveiling the affairs of the country. and business performance for 2021. Yang Shanshan has more.

Despite COVID-19, China’s foreign trade hit new highs in 2021, with total imports and exports up 21.4 percent to RMB 39.1 trillion, or about $6 trillion. However, China’s Ministry of Commerce warns that the global economy still faces uncertainties in 2022.

LI XINGQIAN Head of Department of Foreign Trade Ministry of Commerce “The pandemic continues and there is still a risk of supply chain cuts, which could slow down the global economic recovery. We will support trade enterprises, diversify trade routes, use the international e-commerce platform to promote trade, improve the digitalization of trade, and develop green trade.

In 2021, China’s domestic consumption gradually recovered, and the total retail sale of consumer goods increased by 12.5%. As the world’s second-largest consumer market, consumption has remained the main driver of China’s economy. China also becomes the second largest destination for foreign direct investment in 2021, as well as a major global investor.

CHEN CHUNJIANG Head of Trade Service Department Ministry of Commerce “We will continue to reform and open up to the rest of the world. We will ease the automotive industry and provide land and tax policy to attract more foreign investors to invest in high-tech industries, advanced manufacturing, digital and green economy, as well as low-carbon technologies. carbon. We will also help foreign companies to solve their difficulties in China.

YANG SHANSHAN CGTN Reporter “To help support China’s economic growth, China promises to improve the business environment for investors and promote global trade through bilateral and multilateral cooperation. Yang Shanshan, CGTN.
Source: CGTN

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China’s economy is estimated to be off to a good start (Best Economic Planner) https://bizchina-update.com/chinas-economy-is-estimated-to-be-off-to-a-good-start-best-economic-planner/ Tue, 18 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-is-estimated-to-be-off-to-a-good-start-best-economic-planner/ A worker checks a chip product at a factory in Sihong Economic Development Zone in Sihong County, east China’s Jiangsu Province on Monday. At present, Sihong County has formed electronic information, new materials, mechanical and electrical equipment and other leading industry development poles. Photo: CGV China’s top economic planner, the National Development and Reform Commission […]]]>

A worker checks a chip product at a factory in Sihong Economic Development Zone in Sihong County, east China’s Jiangsu Province on Monday. At present, Sihong County has formed electronic information, new materials, mechanical and electrical equipment and other leading industry development poles. Photo: CGV

China’s top economic planner, the National Development and Reform Commission (NDRC), is confident of achieving a smooth start to this year’s economy in the first quarter of 2022 while envisioning stable, healthy growth. and sustainable, an official said Tuesday.

Yuan Da, spokesperson for the NDRC, said China’s economic development in 2022 still faces serious challenges, although the country has made remarkable achievements in 2021, pointing out that the complicated international environment and the Unbalanced and insufficient domestic economic development were among the challenges.

The response came as reporters asked for the NDRC’s opinion on the economic challenges facing the country during a press conference held on Tuesday. The Central Economic Labor Conference in December listed the challenges as “declining demand, supply shocks and weakened expectations.”

Yuan said sporadic COVID-19 outbreaks in China will continue to affect domestic consumption, in addition to uncertainties regarding the investment and foreign trade situation in the coming months.

Micro, small and medium-sized enterprises have encountered more difficulties in their normal operations, which has negatively impacted market expectations and business confidence, Yuan added.

China achieved strong performance in economic growth and coronavirus containment last year. The country’s national strength is now consolidating, with a GDP exceeding 114 trillion yuan ($17.98 trillion) in 2021, reflecting the growing resilience of the country’s industrial supply chains, Yuan said.

China recorded GDP growth of 8.1 percent in 2021 on Monday, defying market expectations and further cementing the leading position of the world’s second-largest economy in the global economy’s recovery from the COVID-19 pandemic.

Yuan noted that supply shortages have been largely resolved, with the price of coal falling and power supply stabilizing, with more than 20 days of coal reserves available. In 2021, semiconductor production increased by 33.3% compared to a year ago.

And, the country has upgraded and promoted digitalization of a number of key industries while deepening reform in key areas and accelerating opening up, Yuan said, adding that the economy would be boosted by higher levels. equality based on supportive government policies.

world times

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Iron ore price falls as Chinese economy slows https://bizchina-update.com/iron-ore-price-falls-as-chinese-economy-slows/ Mon, 17 Jan 2022 15:56:04 +0000 https://bizchina-update.com/iron-ore-price-falls-as-chinese-economy-slows/ According to Fastmarkets MB, benchmark 62% Fe fines imported into North China were changing hands for $125.65 a tonne during morning trading, down 2% from Friday’s close. May’s most traded iron ore contract on China’s Dalian Commodity Exchange ended the day down 2.4% at 705 yuan ($111.12) a tonne, near a session low of 700 […]]]>

According to Fastmarkets MB, benchmark 62% Fe fines imported into North China were changing hands for $125.65 a tonne during morning trading, down 2% from Friday’s close.

May’s most traded iron ore contract on China’s Dalian Commodity Exchange ended the day down 2.4% at 705 yuan ($111.12) a tonne, near a session low of 700 yuan, its lowest since Jan. 10.

China’s central bank cut borrowing costs on its medium-term loans for the first time since April 2020, suggesting an intensification of the economic slowdown, even as the world’s second-largest economy recorded faster-than-expected annual growth of 4 % during the last quarter of 2021.

“The lagged economic data and the PBOC rate cut were already priced in, in our view,” said Atilla Widnell, managing director of Navigate Commodities in Singapore.

“Consumption remains the weakest link in China’s growth story right now and that will continue overall for much of this year,” said Louis Kuijs, head of Asian economics. at Oxford Economics. “We think Beijing has a net profit of around 5%. As is the case now, if growth is weaker than this, they will feel a strong incentive to pursue further policy easing.

The better-than-expected economic expansion, however, was China’s slowest pace of growth in a year and a half, and some analysts said the weakness is likely to persist in part due to ongoing covid-related restrictions. 19.

Iron ore was expected to correct following recent rallies, Widnell said, adding that improving weather conditions at the main Brazilian supplier and increased shipments from Australia could release some air. “overinflated” prices.

(With files from Reuters and Bloomberg)

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‘Zero COVID’ and Xi’s ambitions could slow China’s economy in 2022 https://bizchina-update.com/zero-covid-and-xis-ambitions-could-slow-chinas-economy-in-2022/ Mon, 17 Jan 2022 08:00:00 +0000 https://bizchina-update.com/zero-covid-and-xis-ambitions-could-slow-chinas-economy-in-2022/ BEIJING – China’s economy is expected to slow ahead of the ruling Communist Party’s two-decade congress in the fall of 2022, as President Xi Jinping’s sweeping “COVID zero” policy and socialist ambitions are expected to stifle private spending in the country. Even after the end of the Beijing Winter Olympics, which are scheduled to begin […]]]>

China’s economy is expected to slow ahead of the ruling Communist Party’s two-decade congress in the fall of 2022, as President Xi Jinping’s sweeping “COVID zero” policy and socialist ambitions are expected to stifle private spending in the country.

Even after the end of the Beijing Winter Olympics, which are scheduled to begin on February 4, the Communist Party-led government is likely to continue to implement strong anti-epidemic measures, including the lockdown of major cities and the suspension of all public transport services.

To succeed in the economic sphere and secure a controversial third term as party leader in congress, Xi would also promote “common prosperity”, aimed at narrowing income gaps in the country, by imposing more regulations on the country’s lucrative sectors. .

Consumption in China has been “tepid” as people’s movements have only recovered to half the level before the coronavirus outbreak began nearly two years ago, said Kokichiro Mio, senior researcher at the NLI Research Institute in Tokyo.

According to an academic familiar with Chinese government thinking, “the Communist Party’s zero COVID policy will certainly remain in place most of 2022, given President Xi’s insistence on successfully ending the congress after the Beijing Olympics. “.

“For at least another year, Chinese citizens and businesses would be frustrated by the harsh restrictions imposed by the authorities and lose their motivation to increase spending and investment. This would put strong downward pressure on the economy,” added the researcher on condition of anonymity.

On Friday, people walk under lanterns decorating a food court at a shopping mall in Beijing. | Reuters

The world’s second-largest economy grew 8.1% in 2021 from a year earlier as domestic demand recovered from the coronavirus shock, marking the strongest expansion in 10 years, government data showed on Monday.

The economy, however, grew by just 4% in the October-December 2021 period alone, as the outlook darkened amid growing fears of another wave of infections, detected for the first time. in the Chinese city of Wuhan at the end of 2019.

In Xi’an, more than 2,000 people have been infected with the virus for about a month since early December, prompting municipal authorities to lock down the central city of 13 million since the middle of the month.

Tianjin, known as a key gateway to Beijing, has also carried out COVID-19 nucleic acid tests targeting all of its 14 million people since the start of the month after community infections were identified. by the highly contagious omicron variant.

Beijing has not been spared either, with the city government saying on Saturday it had detected its first case of omicron.

In Shanghai, China’s largest shopping mall, some restaurants and shops have been closed since infections were confirmed there.

On Friday, customers take an escalator in a mall in Beijing.  |  Reuters
On Friday, customers take an escalator in a mall in Beijing. | Reuters

“We are not in a situation where we can just pretend nothing has happened,” said Hiroyuki Tanaka, a 36-year-old Japanese employee in the city. “What we have to do is stay in Shanghai and stay at home.

“Many Chinese have refrained from going out and tightened their wallets as they feel anxious about the future,” he said. “Under such circumstances, it is very difficult for the Chinese economy to maintain its growth momentum.”

In January, the World Bank said in a report that it had lowered its forecast for China’s economic expansion in 2022 to 5.1% from 5.4% amid the pandemic.

“I think the pace of China’s economic growth would be much slower than the World Bank estimates,” Tanaka said. “I don’t know what can boost China’s economy this year unless the coronavirus crisis recedes.”

Xi’s efforts to achieve common prosperity have also raised concerns that the most populous country will become a less attractive market, as the goal could place a heavy burden on the wealthy so the government can coercively rectify economic inequalities. .

Drastic policy changes aimed at emphasizing income distribution could “hinder technological progress based on the free ideas of the private sector,” said Kenta Maruyama, an economist at Mitsubishi UFJ Research and Consulting Co. in Tokyo.

A medical worker in protective gear takes a swab from a resident for a COVID-19 nucleic acid test at a makeshift testing site in Tianjin, China on Thursday.  |  CNSPHOTO / VIA REUTERS
A medical worker in protective gear takes a swab from a resident for a COVID-19 nucleic acid test at a makeshift testing site in Tianjin, China on Thursday. | CNSPHOTO / VIA REUTERS

Indeed, the Communist Party has tightened surveillance of the country’s IT giants to curb their monopolistic behavior and disorderly expansion of capital, raising concerns that the innovation of China’s high-tech industry could be hampered.

Large Chinese companies and business leaders would also be forced by central authorities to take measures that could help reduce income disparities, such as donating and providing social support.

“If the government uses common prosperity as a means of power struggle and moves forward in an unpredictable way, it could severely hamper the Chinese economy. Common prosperity is a double-edged sword,” Maruyama said.

Some observers, meanwhile, have said that a possible escalation of tensions between China and Taiwan would make foreign companies – especially those from democratic countries – reluctant to invest in the mainland, which would deal a serious blow to the economy. broadly this year.

Speculation is rife that Xi’s leadership may take military action against democratic Taiwan to unify the self-governing island with the mainland, ahead of the party congress where he would try to lay the groundwork to retain power. for life.

Chinese People's Liberation Army soldiers stand in front of a giant screen as President Xi Jinping speaks during a military parade marking the 70th anniversary of the founding of the People's Republic of China on October 1, 2019 in Beijing.  |  Reuters
Chinese People’s Liberation Army soldiers stand in front of a giant screen as President Xi Jinping speaks during a military parade marking the 70th anniversary of the founding of the People’s Republic of China on October 1, 2019 in Beijing. | Reuters

But Jeff Kingston, director of Asian studies at Temple University Japan, threw cold water on such a possibility.

“There is little chance of an invasion of Taiwan as it is a high risk option which could backfire on Xi,” he said.

China and Taiwan have been governed separately since their separation in 1949 following a civil war. Their relationship has soured since pro-independence President Tsai Ing-wen became the island’s leader in 2016.

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The most read topics on the Chinese economy in 2021 https://bizchina-update.com/the-most-read-topics-on-the-chinese-economy-in-2021/ Fri, 31 Dec 2021 08:00:00 +0000 https://bizchina-update.com/the-most-read-topics-on-the-chinese-economy-in-2021/ Skyline of Shenzhen, China. /APC Skyline of Shenzhen, China. /APC The year 2021 for the Chinese economy has been marked by growing uncertainties caused by scattered outbreaks of Covid-19 and decisive regulatory reform in key areas. As the pandemic continues to weigh on the economy, consumer spending is showing signs of slowing. With competition in […]]]>

Skyline of Shenzhen, China. /APC

Skyline of Shenzhen, China. /APC

The year 2021 for the Chinese economy has been marked by growing uncertainties caused by scattered outbreaks of Covid-19 and decisive regulatory reform in key areas.

As the pandemic continues to weigh on the economy, consumer spending is showing signs of slowing. With competition in the technology sector and new fabricated accusations against Xinjiang, tensions between China and the United States are rising. In the face of all domestic and international challenges, China has implemented a series of regulatory changes in key industries to resolve risks and ensure healthy development.

Here are the most watched and read topics on China’s economy and enterprises during the year on the CGTN website.

Consumption

As the pandemic spreads with epidemics, retail sales of social consumer goods in China in 2021 still recorded monthly growth, but were often below analysts’ expectations.

Chain stores that have expanded rapidly in recent years are now under pressure, such as popular Chinese hotpot chain Haidilao, which plans to close around 300 underperforming restaurants by the end of this year. The chain had more than 1,500 restaurants on the mainland as of mid-2021, according to its website.

Compared to physical stores, online business continued to experience strong growth this year, driven by e-commerce live streaming and emerging national brands.

During this year’s Double Eleven shopping festival (November 1-11), the two major online shopping platforms, Alibaba’s Tmall and JD.com, recorded growth of 8.45% and 29% respectively in year-on-year.

Read more:

Chinese hot pot chain Haidilao to close 300 restaurants by end of 2021 after massive expansion

Made in Xinjiang

In recent years, anti-China forces have been keen to play the Xinjiang card – alleging that Xinjiang products are made by “forced labor”.

Better Cotton Initiative (BCI), a London-based NGO, caught on to the trend and announced it had ceased all operations in northwest China’s Xinjiang Uyghur Autonomous Region over the same charge.

Some fashion companies, such as H&M and NIKE, claimed that they “do not work with any garment factories located in Xinjiang”, although without proof of the accusations, quickly received a boycott from Chinese consumers.

The BCI, however, quietly removed its Xinjiang statement from its website without giving a future explanation, while its Shanghai office said it found no cases of “forced labor” in Xinjiang in a press release published at the end of March.

Read more:

BCI removes Xinjiang cotton statement from its website

Tech War

After nearly three years of detention in Canada, Huawei Technologies chief financial officer Meng Wanzhou returned to China in September. It was widely seen as China’s victory in years of battle with long-arm US jurisdiction amid a escalating tech war between the world’s two largest economies.

Meng was arrested in December 2018 at Vancouver International Airport on a US warrant charging her with bank fraud for allegedly misleading HSBC Holdings about Huawei’s business dealings in Iran, but Meng and Huawei have denied the charges.

Chinese Foreign Ministry spokeswoman Hua Chunying said the charges against Meng were purely fabricated and that her detention was “arbitrary”.

She was deemed free to leave Canada without extradition proceedings in Canada or prosecution in the United States after reaching a deferred prosecution agreement with the United States Department of Justice.

Read more:

Meng Wanzhou returns to China after 3 years of detention in Canada

Where is Huawei going after the chip shortage?

The growing competition began under the Trump administration and continued under current US President Joe Biden.

Beginning as a trade dispute, the conflict quickly escalated into a battle over core technologies, including semiconductors, 5G and AI.

In December, more Chinese companies were added to the U.S. Commerce Department’s entity list and an investment blacklist by the Treasury Department.

Read more:

China condemns US unjustified suppression of Chinese companies

Carbon reduction

This year, China officially launched its long-awaited domestic carbon trading market in July.

China’s Emissions Trading System (ETS), which has replaced the EU’s as the world’s largest emissions trading system, is expected to help China deliver on its reduction in carbon emissions – reaching peak carbon emissions by 2030 and carbon neutrality by 2060.

China will firmly control energy-intensive and emission-intensive projects, aiming to improve its “double-checking system” on energy consumption and energy intensity, or the amount of energy consumed per unit of GDP.

Read more:

CGTN Explains: Understanding China’s Domestic Carbon Emissions Trading Market

Regulatory Storms

To avoid speculation and systematic risk, China established a new regulatory guideline in 2020 to control the leverage of real estate developers and asked banks to cap outstanding real estate and mortgage loans this year.

Some real estate developers who were exposed to high leverage and indiscriminate expansion, struggled with liquidity pressures and even defaulted, such as China Evergrande.

But market regulators, including the central bank, reiterated that individual cases will not impact regular market funding and local governments have worked with developers to address risks and maintain stable development of the market. Chinese real estate sector.

Read more:

PBOC: Evergrande’s debt issuance will have no impact on long-term funding

Another major regulation has landed on the after-school tutoring (AST) industry, which has boosted Chinese parents’ anxiety with soaring investment.

China announced in July that it would ban curriculum-based AST companies from raising capital through public listings, and listed companies will not be allowed to invest in curriculum-based ASTs. through equity investments or to acquire AST assets (through the issuance of shares or cash).

The new rules also prohibited the granting of new AST licenses, and existing AST operators were only allowed to register their schools as nonprofits.

The new regulations (which leave the sector once seen as a “cash cow” in the education sector abandoned by investors) aim to further improve the quality of education and school teaching.

Read more:

China bans tutoring institutions in basic school subjects from IPO and foreign M&A

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