Category Archives: Business

business news from China, Sweden and the world.

Commentary: Time for EU to grant China market economy status

by Xinhua writer Chen Jipeng

BEIJING, Jan. 13 (Xinhua) — It is high time for European Union (EU) member states to grant full market economy status to China, the second largest trading partner of the 28-nation bloc.

The market economy status is relevant for Chinese exporters because it determines the way in which dumping is assessed in EU’s trade remedy cases against imports from China. With market economies, the assessment of dumping is based on a comparison of the export price and the domestic price of the product in question.

However, China’s non-market economy status is often cited so that the domestic price in China is not considered a suitable benchmark. The export price is compared with domestic price of a surrogate country.

In one of such cases, the United States was chosen as a surrogate country to assess the price levels of stainless steel from China. This is obviously unfair given the much higher labor cost in the United States and the tendency of the producers in the United States — who compete against Chinese companies — to inflate price estimates.

Fortunately, the legal basis for such an obviously unfair practice will no longer exist starting from Dec. 11 this year, under the provisions of the World Trade Organization accession protocol signed by China.

Commissioners from the EU’s 28 members will on Wednesday debate for the first time the issue of granting China full market economy status from December.

Legal experts are of the opinion that the European Union should grant China full market economy status, according to European media reports.

The non-market economy status of China, however, has often become a convenient weapon for trade protectionists. Some of the EU members have continued to be swaying over the issue to retain an unfair advantage.

Nevertheless, the undoubtedly protectionist practice is obviously out of time. Despite its existence, bilateral trade between China and the EU have been growing quickly. China is now the EU’s second largest trading partner and one of the biggest markets for the 28-member bloc. The idea of free trade and comparative advantage has been the driving force behind the phenomenal growth. Sticking to a weapon of protectionism would only increase frictions rather than help the gigantic bilateral trade.

It is known that China has built an efficient market economy to achieve remarkable growth over the decades and it is duly recognized by more than 80 countries, including Russia, New Zealand, Singapore and Australia.

A quick look at the list of the countries that the EU has recognized as market economy tells us that China deserves the market status, too.

It is advisable for some of the EU members to dump the idea of resolving to labelling one of their top trading partners as a non-market economy for a bit of protection. If history tells, it is much wiser to continue opening up and practise free trade.  Enditem

 

China’s economy likely to bottom up in 2016, economist

BEIJING, Jan. 11 (Xinhua) — China’s economic growth is likely to touch the bottom and recover to 6.8 percent in 2016, said Li Daokui, director at of the Center for China in the World Economy (CCWE) at Tsinghua University.

Li said at the 26th quarterly forum of the CCWE that domestic consumption in China has started to recover in the second quarter of 2015 from around 10 percent to 11.2 percent. He expected the trend will continue in 2016 and help drive up overall China’s economy.

Li estimated China’s domestic consumption grew 10.7 percent in 2015 and the growth rate would reach 11 percent in 2016.

As China’s efforts to reduce production capacity and inventory gradually take effect, real estate investment is expected to bottom up. Moreover, stabilized commodity prices and recover in major world’s economies would help stable China’s export.

China’s fixed-assets investment may stand at 10 percent in 2016, taking predictions of investment in infrastructure, manufacturing industry and real estate into consideration, said Li.  Enditem

 

 

China financial system “largely stable”: forex regulator

 

BEIJING, Jan. 9 (Xinhua) — China’s financial system is “largely stable” and foreign exchange reserves are “relatively abundant”, the State Administration of Foreign Exchange (SAFE) said Saturday.

The official remarks came after the Chinese yuan, under persistent depreciation pressure, dipped to a five-year low against the U.S. dollar this week.

The SAFE said in an online statement that it will further facilitate cross-border trade and investment, and continue to promote the yuan’s convertibility under the capital account in an orderly manner.

The administration will strengthen the monitoring of China’s balance of payments, and improve the management of foreign debt and cross-border capital flows.

The SAFE will also try to better operate and manage the country’s foreign exchange reserves.  Enditem

 

 

 

 

China’s textile industry starts to make overseas layout in line with B&R drive

BEIJING, Jan. 11 (Xinhua) — China’s textile industry has entered a new development phase by making overseas layout, according to the National Textile Industry Transfer Work Conference held last Friday.

“The Belt and Road Initiative has provided an unprecedented opportunity for China’s textile industry,” said Xia Lingmin, vice president of the China National Textile and Apparel Council (CNTAC), adding that China’s acceleration of overseas layout was the result of market option and efficiency priority.

“On the one hand, China’s textile enterprises have built processing bases overseas in a bid to reduce labor costs. On the other hand, some enterprises seek to establish multinational groups with global competitive edge by settling different links of the industrial chain in different countries,” explained Xia.

According to statistics released by the CNTAC, by the end of 2014, Chinese enterprises had set up over 2,600 textile manufacturing, trading and design enterprises in at least 100 countries and regions. In 2015, Chinese textile enterprises have accelerated its pace to “go out.”

China has been a big textile exporter for a long time. However, its textile industry has been dampened by the sluggish economic situation worldwide in recent years. Xia noted that “going out” was an important selection for the textile industry during the 13th Five-Year Plan period (2016-2020).  Enditem

 

RMB rate to depend more on basket of currencies: PBOC economist

   BEIJING, Jan. 11 (Xinhua) — The Chinese yuan’s exchange rate will be determined with more reference to a basket of currencies, as it faces persistent depreciation pressure against the U.S. dollar, according to a senior economist with the central bank on Monday.

“Giving more consideration to a basket of currencies means the RMB’s value will be kept basically stable against the whole basket,” said Ma Jun, chief economist of the People’s Bank of China’s research bureau.

“That will be the keynote of the yuan’s exchange rate formation mechanism in the foreseeable future,” he said.

China will guide the market to form a yuan/dollar rate, so as to help stabilize the yuan’s value against the currency basket, said Ma.

“The central bank will ask market makers to consider the yuan’s stability against the currency basket when reporting their central parity quotes to the China Foreign Exchange Trade System,” he said.

The yuan’s value will be increasingly stable against the currency basket, while the yuan/dollar rate will fluctuate wider in a two-way manner, rather than in a single direction, Ma predicted.

When investors understand the basket-based exchange rate formation mechanism, short selling of the yuan will decline, according to him.

“The yuan’s exchange rate is currently not pegged to the U.S. dollar nor is it allowed to float in an unchecked way,” he said.

“We will introduce a mechanism to properly limit daily yuan/dollar rate fluctuation,” said Ma.

Giving stronger consideration to a basket of currencies will not hurt the Chinese government’s autonomy in making monetary policies, he said, adding that the yuan’s rate will not be strictly pegged to the basket.

Ma’s remarks came after the Chinese yuan, under persistent depreciation pressure, dipped to a five-year low against the greenback last week.  Enditem

 

 

China to continue to have abundant labor force: official

BEIJING, Jan. 11 (Xinhua) — China will have an abundant labor force for decades to come, though its overall quality needs to be improved, said a senior official with the National Health and Family Planning Commission (NHFPC) on Monday.

Wang Pei’an, deputy head of the NHFPC, said at a press conference that in 2015, China had a labor force of one billion, which is expected to slip slightly to 958 million in 2030.

According to the official, the labor force is estimated at around 827 million for 2050.

Therefore, the challenge for the nation in the next few decades lies not in the size of the labor force but in its quality, said Wang.

Wang highlighted the nation’s need to allow all couples to have two children.

The new family planning law took effect on Jan. 1, ending the one-child policy that had been in place for decades.

He said the timing for the new policy is good, considering the trend of a declining labor force,  and rising demographic dependency ratio, which rose from 34.2 in 2010 to 36.2 in 2014, in addition to the population of child-bearing women, which has dropped from the peak of 380 million in 2011.  Enditem

 

 

Beijing to ease entry, residence policy for overseas talent

BEIJING, Jan. 12 (Xinhua) — The Ministry of Public Security (MPS)announced on Tuesday it will ease rules for foreign talents to enter and exit Beijing, and provide favorable terms to acquire permanent residence.

The MPS will run the pilot program in Beijing’s Zhongguancun Science Park to provide convenience for foreign talents such as special offices for permanent residence examination and approval, streamlined approval procedures and more favorable conditions for foreigners with doctorate degrees or above to get a Chinese green card.

The new regulations will also allow short-term internships in Beijing for foreign students and permit them to run their own start-ups in Zhongguancun.

Foreign tech and senior management talents are also encouraged to join China’s creative companies and file application to get permanent residence, the MPS said.

The MPS said it will help the Beijing municipal government launch a “Transit Without Visa” project for certain foreign nationals to stay in Beijing for no more than 144 hours without an entry visa.

The new regulations, scheduled to take effect on March 1, are aimed at promoting Beijing’s soft environment for innovation and start-ups, the MPS said.  Enditem

 

 

China-initiated development bank to be highlighted at 2016 Davos meeting

BEIJING, Jan. 13 (Xinhua) — China-related topics, the recently launched Asian Infrastructure Investment Bank (AIIB) in particular, will be among the major highlights of this year’s World Economic Forum (WEF) annual meeting to be held next week in the Swiss town of Davos.

AIIB President-designate Jin Liqun is scheduled to speak on infrastructure construction in Asia during the four-day meeting, probably his first appearance at a global forum since the official establishment of the China-initiated institution on Dec. 25, 2015.

David Aikman, chief representative officer of Greater China and managing director of the WEF, said the launch of the AIIB shows China’s increasing role in leading and innovating institutions to address the trillion-dollar infrastructure gap around the world.

“China has a lot to bring in terms of experience with the large-scale infrastructure projects and really has an opportunity to innovate,” he told Xinhua. “I think the world wants to hear and interact with those leaders.”

Aikman also said that policymakers from Latin America and Africa will be interested in coming to the forum and understanding infrastructure investment in the Asian context.

The inauguration ceremony of the AIIB, a complement to existing international financial system, is scheduled on Saturday. The bank now has 57 members and will finance infrastructure — airports, mobile phone towers, railways and roads — in Asia.

More than 2,500 participants from over 100 countries will attend the 46th WEF annual meeting, scheduled between Jan. 20 and Jan. 23. A senior delegation from the Chinese government is expected to attend the meeting.

Themed “Mastering the Fourth Industrial Revolution,” this year’s WEF annual meeting will also focus on security and other global issues.  Enditem

Traditional Chinese medicine hospitals on the increase

BEIJING, Jan. 14 (Xinhua) — The number of traditional Chinese medicine (TCM) hospitals in China has increased by 500 in five years, a rise of 15.5 percent, a TCM official said on Thursday.

Meanwhile, the number of TCM outpatient departments and clinics increased by 531 and 5,890, said Wang Guoqiang, director of the State Administration of TCM at the 2016 national TCM meeting.

In 2014, there were 530 million visits to TCM hospitals, accounting for 17.9 percent of total hospital visits across the country, Wang said.

In addition, the TCM industry became a 730 billion yuan (110.8 million U.S. dollars) industry in 2014, representing one third of the total industrial output of China’s medical industry.

The import and export revenues for the TCM industry amounted to 4.63 billion U.S. dollars in 2014, according to Wang.

China has been promoting the modernization of TCM and has been pushing for TCM to be accepted and popular worldwide. Tu Youyou’s winning the Nobel Prize with a TCM-based anti-malarial drug served as a boon to the industry.  Enditem

 

China doesn’t restrict forex sales to individuals: regulator

BEIJING, Jan. 13 (Xinhua) — The State Administration of Foreign Exchange (SAFE) said Wednesday it does not limit foreign currency sales to individuals, although China faces dropping forex reserves.

SAFE denied media reports that Chinese banks put restrictions on foreign currency sales as many people are buying the U.S. dollar, which has been appreciating against the yuan.

As usual, everyone with an ID card can freely buy foreign currency worth 50,000 U.S. dollars every year from Chinese banks, according to SAFE, and those with proper reasons can buy more.

China’s foreign exchange reserves fell by 107.9 billion U.S. dollars in December to 3.33 trillion at year end, the lowest level in more than three years.

The December decline, the sharpest monthly fall on record, was partly due to an interest rate hike last month by the U.S. Federal Reserve and possible future rises as capital flowed out of China for higher returns.  Enditem

FDI rises 6.4 pct despite slowing economy

 

BEIJING, Jan. 14 (Xinhua) — Foreign direct investment (FDI) into the Chinese mainland maintained steady growth in 2015 despite the economic slowdown in the world’s second-largest economy.

FDI, which excludes investment in the financial sector, rose 6.4 percent year on year to 126.27 billion U.S. dollars in 2015, the Ministry of Commerce (MOC) said on Thursday.

Investment in the country’s burgeoning service industry continued robust growth, accounting for 61.1 percent of total flows during the period.

FDI in the manufacturing sector came in at 39.54 billion U.S. dollars, accounting for 31.4 percent of the total. Flow to high-tech manufacturing gained 9.5 percent to 9.41 billion U.S. dollars.

The MOC attributed the growth to the government cutting red tape around investment approvals and accelerating construction of free trade zones.

Foreign mergers and acquisitions in China increased sharply, with their share of total FDI surging from 6.3 percent in 2014 to 14.1 percent in 2015.

The Chinese economy expanded 6.9 percent in the first three quarters of 2015, the lowest reading since the second quarter of 2009.

China is due to release annual growth data next Tuesday.  Enditem

 

 

Swedish Spring Film Premiere 2016 held in Stockholm

STOCKHOLM, Jan 13. (Greenpost)–Swedish Spring Film Premiere 2016 was held on Monday in Stockholm.

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Kristina Börjeson, Head of Film Support speaks at the opening.

IMG_9852Kristina Börjeson,  Head of Film Support said that since the beginning of the 1990s, Swedish government has decided to support film production in the country. The funding almost all comes from the Film Support. For example 12 of the 16 films are supported by Swedish Film Support.  Directors can apply for many kinds of subsidies to produce films. There has always been a great enthusiasm in making films in Sweden.

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Erik Gandini directed The Swedish Theory of Love which was also screened in the International Film Festival in Stockholm in November.

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Suzanne Osten directed The Girl, Mother and Demons describing a lonely and psycologically problematic mother with her daughter who is just 7 years old.  Esther Quigley is seen as a young star.

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Linda Hambäck, director of Bajsfilmen-Dolores och Gunnellens värld said this was the first time she directed a film wholly by herself.  She was South Korean origin and adopted by Swedish parents.

 

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“I have got some flavor of my own background in the film, it’s about friendship. When one of the two friends wants to go outside world, the other was almost mad,” said Linda Hambäck to Green Post.

IMG_9938In the film, she shows one girl with western face and the other with an Asian face.

Famous TV host Cecilia Nilsson was the MC of this premiere.

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Another film aroused our attention was The last Generation. It is about Sami culture and Sami people.  Petri Storlöpare who directed the film told Green Post that he lived around many Samis.  He was born in Finland but lives in Sweden all his life.  He was luckily able to follow the main charactor in the film for a year to experience his life as a reindeer herdsman.

He wanted to show the sami people, sami culture and hope that they will not disappear so soon.

A  lot of funds were invested in promoting sami culture during the 2014 European Cultural Festival.

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CREW of Rubbish Helicoptor were interviewed by Cecilia.

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Similar documentary about Swedish famous singer and her colleague famous singer BABs  was also screened.IMG_9913

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Cecilia Nilsson, Petri Storlöpare.

Another film aroused our attention was The last Generation. It is about Sami culture and Sami people.  Petri Storlöpare who directed the film told Green Post that he lived around many Samis.  He was born in Finland but lives in Sweden all his life.  He was luckily able to follow the main charactor in the film for a year to experience his life as a reindeer herdsman.

IMG_9960He wanted to show the sami people, sami culture and hope that they will not disappear so soon.

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Henrik Andersson talks about his daily life as a sami.

A  lot of funds were invested in promoting sami culture during the 2014 European Cultural Festival.

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This was a very heavy film describing relationship between father and daughter.IMG_9995Sixteen films were introduced during the spring film premiere.

Photo/text   by Xuefei Chen Axelsson

China Focus: China suspends stock market “circuit breaker”

BEIJING, Jan. 7 (Xinhua) — China announced Thursday night that it will from Friday suspend the stock market “circuit breaker” mechanism that has been implemented since the beginning of this year.

“Currently, the negative effects of the mechanism are greater than the positive effects. Thus, the China Securities Regulatory Commission (CSRC) had decided to suspend the circuit breaker mechanism to maintain market stability,” CSRC spokesperson Deng Ke said in a statement.
Under the mechanism that became effective on Jan. 1 to tame the wildly fluctuating Chinese stock market, trading will be halted for 15 minutes if the Hushen 300 Index, which reflects the performance of bluechips listed in Shanghai and Shenzhen, moves up or down by 5 percent before 2:45 p.m. If the movement reaches 7 percent when trading is resumed, the market closes for the day.
The circuit breaker was triggered on both Monday and Thursday, as plunges in the Hushen 300 Index reached 7 percent in both trading days.
“The mechanism was introduced with the aim of providing a calm-down period for the market to avoid or reduce hasty trading decisions in the case of sharp fluctuations, protecting the interests of investors. It also provides time for dealing with technological and operational risks,” Deng said.
He said the mechanism “is not the major reason for the market plunge, but it failed to achieve the anticipated effects,” adding that the mechanism in effect accelerated the plunge as some investors decided to sell when the index’s drop neared 5 percent or 7 percent.
The CSRC decided to introduce the circuit breaker system and conducted a public consultation on the plan for its introduction in September 2015 to prevent further abnormal fluctuations.
The benchmark Shanghai Composite Index surged about 154 percent from July 2014 to as high as 5,178 points on June 12, 2015, but then plunged about 45 percent from the peak by Aug. 26, 2015. The sharp falls gave rise to calls of a “circuit breaker.”
The new mechanism would help prevent excessive reactions of investors and give them more time to confirm whether a stock’s price is reasonable, according to the plan.
With no precedent, the market has taken time to adapt. “Next, the CSRC will carefully sum up the experience and lessons, organize research on improving the mechanism and seek extensive public opinions,” Deng said.
Trading on the Shanghai and Shenzhen bourses stopped early on Thursday after shares tumbled 7 percent within the first 30 minutes of trading, triggering the circuit breaker mechanism. It was the shortest trading time in the history of China’s stock market.
At 9:42 a.m., trading was suspended for 15 minutes after the Hushen 300 dropped by over 5 percent. The index dived a further 2 percent in just 2 minutes after reopening at 9:57 a.m., and trading was ceased.
Following the trading suspension Thursday, the CSRC unveiled new rules to limit big shareholders from selling their stocks.
Big shareholders, the management and those who hold more than 5 percent of a company’s shares were asked not to sell more than 1 percent of the company’s shares within any three-month period, a notice said.
Those who want to reduce their holdings have to publicize their plans 15 trading days beforehand. The new rule will take effect on Jan. 9.
On Thursday, several state-owned enterprises, including China Aerospace Science and Industry Corporation and China National Offshore Oil Corporation, announced that they will not sell shares of listed companies they control in order to help maintain market stability.  Enditem

China Voice: Yuan’s substantial depreciation unlikely

BEIJING, Jan. 6 (Greenpost) — The continued depreciation of the yuan against the U.S. dollar since August should not be grounds for doom and gloom, as a multitude of factors underpin the Chinese currency in the medium and long term.This March 17, 2010 illustration in Beijing shows China's 100 Yuan, or Renminbi, notes, the largest denomination in Chinese currency. The World Bank has urged China to let its currency rise to contain inflation and stop the economy overheating, predicting that growth will gallop ahead at 9.5 percent this year. China is facing growing international pressure, particularly from the US, to let the yuan appreciate but Chinese Premier Wen Jiabao's insisted over the weekend that Beijing would resist any foreign pressure for a stronger yuan, currently pegged within a narrow range at about 6.8 to the USD. AFP PHOTO/Frederic J. BROWN (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)   The yuan has been heading south since the People’s Bank of China (PBOC), the central bank, revamped the foreign exchange mechanism in August to make the rate more market-based.

The onshore yuan (CNY), traded in the Chinese mainland, declined 4.05 percent against the greenback in 2015. During the first two trading days of 2016, the offshore yuan (CNH) traded in Hong Kong, has consistently gone down, losing as much as 1.3 percent at one point and putting pressure on the onshore yuan to sink lower.
Short-term volatility of the yuan is understandable as “hot money” makes an exit out of China, whose economy is heading for its slowest pace in a quarter century as industrial overcapacity and housing overhang still haunt. Meanwhile, the United States is seeing recovery and raised interest rates in December, with more rises expected in 2016.
However, there is no risk for the yuan to see substantial depreciation in the long term.
China has a mammoth foreign exchange reserve (3.4 trillion U.S. dollars), sound economic fundamentals, commendable growth in labor productivity and determination to carry out necessary reforms to unlock vitality.
The inclusion of the yuan by the International Monetary Fund in its elite basket of currencies, effective this October, will give the yuan a leg up toward internationalization.
Another favorable factor is the continued weakness of global commodity prices. Reduced costs help China, the world’s biggest commodity consumer, boost its current account surplus, thus offsetting capital outflows and the depletion of its foreign exchange reserve.
A drop of 10 dollars in average oil prices, for example, would reduce the costs by 25 billion dollars a year, according to Goldman Sachs’s estimate. Low crude prices may prop up the surplus to about 360 billion dollars this year, it added.
The authorities wouldn’t want or tolerate substantial declines in the yuan either. A typical goal is to keep the currency “basically stable.”
When the PBOC introduced the new foreign exchange rules in August, there were doubts that China was purposely devaluing the yuan to boost exports. That assumption was unfounded. The authorities have no intention to manipulate any drastic depreciation as the contribution of foreign trade to the country’s economic growth has declined to the level seen at the beginning of the century.
China is capable of keeping the yuan’s exchange rate at a “reasonable” level and sees no basis for continued depreciation, PBOC Vice Governor Yi Gang said at a recent press briefing.
“In the event of drastic fluctuation or abnormality in international balance of payments and cross-border capital flow, the central bank will not hesitate to intervene,” Yi added.
To reduce the market’s fixation on the yuan-dollar rate and better reflect the market, China Foreign Exchange Trade System (CFETS) began to release a yuan exchange rate composite index in December that measures the currency’s strength relative to a basket of 13 currencies, including the U.S. dollar, euro, and Japanese yen.
An update released on Monday showed that on the last day of 2015, the CFETS yuan index stood at 100.94, meaning the yuan appreciated 0.94 percent compared to the level at the end of 2014.  Enditem

Xinhua Insight: Fulfilling lots, China expects new goals

BEIJING, Jan. 2 (Xinhua) — One week before New Year, light came to 39,800 people in remote northwest China, the last group being able to light their homes in the world’s most populous country.

At the end of 2015, China met its goal of providing electricity to all its people, set out in the 12th five-year plan (2011-2015).
Universal power access was one of the goals China fulfilled in the past five years, ranging from railway construction to pollution control, from economic growth to resident income, and to poverty reduction.
Those achievements mark a satisfying end of the five-year plan and lay a solid foundation for the whole nation to march toward realizing its first centenary goal in the coming five years, analysts say.
The goal, one of “two centenary goals” put forward by the ruling Communist Party of China in 2012, is to double the 2010 GDP and per capita income of urban and rural residents and to complete the building of a moderately prosperous society by 2020.
On Wednesday, a new 345-km stretch of high-speed railway in the southernmost province of Hainan began operation, making it the world’s first of such railway to circle an island.
With Hainan’s high-speed loop line, China’s length of operating railways exceeded 120,000 km, including 19,000 km high-speed rail, both the longest in the world.
The economically advantaged Jiangsu Province in east China is also speeding up railway construction in its northern part to connect all its major cities with high-speed railways.
Over the past five years, China saw an annual average economic growth of 7.8 percent, and its per-capita GDP is expected to increase to approximately 8,000 U.S. dollars from 4,516 U.S. dollars.
The number of newly employed reached about 64 million and the rural poverty-stricken population fell from 166 million to about 60 million.
China also achieved reduction targets outlined in the 12th five-year plan for four major pollutants — sulfur dioxide and chemical oxygen demand, ammonia nitrogen and nitrogen oxide, six months ahead of schedule, official statistics showed.
“Fulfilling major economic targets of 2015 will mark the smooth completion of the 12th five-year plan and allow the country to develop on a higher platform,” said a statement issued after the Central Economic Work Conference on Dec. 21.
Hu Angang, director of the center for China studies at Tsinghua University in Beijing, gave a “high score” for the implementation of the 12th five-year plan.
“The completion of the 12th five-year plan is a vital step toward completing the building of a moderately prosperous society and consolidating a basis for the country’s modernization and national rejuvenation,” he said.
He attributed the plan to better ruling by the CPC and the remarkable progress in the country’s governance system.
Because 2016 is the first year of the 13th five-year plan period it is important for China, as a good start is half the battle.
China needs to face up to the challenges ahead in achieving an average annual growth of no less than 6.5 percent over the next five years while cutting excessive capacity, treating pollution and reducing poverty.
In his New Year speech, President Xi Jinping called for confidence and hard work for a good beginning in the home stretch of building a moderately prosperous society in all respects. He urged joint efforts to lift tens of millions of rural people out of poverty.
The country’s amended law on air pollution control took effect on Friday, dealing tougher punishments to industries and seeking to curb air pollution at its root.
According to Environment Minister Chen Jining, some major pollutants must be cut by another 30 to 50 percent for remarkable improvement of environment.
On Wednesday, the country unveiled an environmental protection plan for the most polluted region, which includes Beijing, Tianjin and Hebei. Bouts of heavy smog choked the region several times this winter.
Under the guideline, in 2020, the region should realize a significant reduction of major pollutants and a 40 percent fall of the density of PM2.5 (particulate matter smaller than 2.5 micrometers) from 2013.  Enditem

 

Headlines: Winter economy thaws frozen Northeast China

HARBIN, Jan. 1 (Xinhua) — The bitter cold in Northeast China’s Heilongjiang Province, powerful enough to cause frostbite, is heating up the economy of the frozen land.

Harbin’s International Ice and Snow Festival, in trial operations, is drawing global tourists with its shimmering castles, huge towers and thrilling slides, all made of ice and snow.

The largest winter festival in China, the frozen structures have been built in the provincial capital every winter since 1999, earning Harbin a fame of “Ice City.”

The park this year has been the largest ever, the size of 112 football fields. A record 330,000 cubic meters of ice and snow were used.

“The main tower, 46.5 meters high, was built with 20,000 cubic meters of ice,” Wang Zengyu, deputy general manager of the park, said. “It might be the highest ice tower in the world.”

A team of Chinese and Dutch designers spent three months in landscaping the park, which was built by more than 10,000 workers. The result is one of the most attractive festivals to date, Wang said.

The time and energy put into the festival is a sign of the hope local authorities have for winter tourism, a bright spot in Heilongjiang’s economy, which has been slowed by sagging energy and heavy industries.

Along with adjacent Jilin and Liaoning provinces, Heilongjiang has been a traditional industrial base for decades. From January to September, Heilongjiang’s economy expanded by 5.5 percent, ranking third from the bottom among China’s provinces, autonomous regions and municipalities.

However, the province’s tourism revenues grew by 35 percent during the first three quarters.

Even better growth is expected for this winter, as the popularity of winter sports is predicted to grow following the announcement that Beijing will host the 2022 Winter Olympics.

Last month, Heilongjiang provincial officials came to big cities such as Beijing, Tianjin, Shenzhen and Hangzhou to promote five new travel routes in Northeast China featuring frozen landscapes and winter activities.

In addition to tourism, Heilongjiang’s cold weather, with average January temperatures between minus 31 and minus 15 degrees Celsius, has created other business opportunities, such as mass storage of information data, among others.

Harbin is working to become a base for cloud computing, which allows users to store files in a remote data center, or “cloud,” to enable access from any computer.

The city is attractive to cloud computing companies due to its cool climate, with a yearly average temperature of 3 degrees Celsius. Low temperatures help save on the cost of operating heat sinks and other units required to keep massive banks of computers from overheating.

“According to our calculation, a data center’s power consumption here is 40 percent less than in South or Southeast China. We don’t need compressors for refrigeration for eight months a year,” said Tan Liyan, general manager of data service provider Gopha in Harbin’s cloud computing industrial park.

More than 300 companies have moved into the industrial park, named “China Cloud Valley,” since its launch in late 2010.

Companies in the park inked investment deals worth 31 billion yuan (4.7 billion U.S. dollars), official statistics said.

Hundreds of kilometers away from Harbin, Heihe City has become the first choice for auto makers and auto parts suppliers to test new products under extreme cold conditions, with roads and rivers frozen for more than 200 days a year.

Auto companies started coming to Heihe for testing in the 1980s and the local government began to provide services in 2006.

“We earned just over 100,000 yuan in our first year in 2006, now we have 20 testing grounds and are earning a lot more,” said Zhao Xinhong, general manager of Honghegu, the city’s largest vehicle testing service provider.

“Currently 80 percent of China’s vehicle tests for cold regions are carried out in Heihe,” Sun said.

Demand for the services has boomed despite an economic downturn. Chen Ying, a city official, said a record number of 75 companies brought more than 1,300 vehicles to Heihe last winter.

“As the auto market has been cooling, we should spend more on research and development to win customers,” said Deng Yongjun, an engineer with Chang’an Automobile based in Southwest China’s Chongqing. Deng’s team took 100 cars to Heihe last winter.

Once China’s industrial base, the northeastern provinces have experienced an even faster economic downturn than the rest of the country, with the slowdown in heavy industry, chemicals and the real estate sector being blamed for the sluggish growth.

The situation, however, is improving. During the first three quarters in 2015, Heilongjiang’s gross domestic product (GDP) gained 0.4 percentage point from the first half of the year.

Liaoning’s GDP expanded 2.7 percent in the first three quarters, the lowest in the nation, but higher than the 2.6 percent registered in the first half of the year. Jilin’s GDP expanded 6.3 percent, up from 6.1 percent during the first six months.

The Chinese government has been rolling out measures since 2003 to boost the region, free up private businesses and restructure state-owned enterprises.

By 2020, Northeast China is expected to achieve medium-high growth, and by 2030, it is encouraged to become an important region in sustaining national growth, one key meeting of China’s top leadership planned recently.

The leadership promised more market-oriented administration, structural reform, stimulation for innovation and entrepreneurship, and improved quality of life in the often frigid region.  Enditem