Category Archives: News

Silk Road economic belt-focus of 2015 Euro-Asia Economic Forum

BEIJING, July 29 (Greenpost) — The 2015 Euro-Asia Economic Forum, scheduled on September 23-26, will be held in Xi’an, capital of northwest China’s Shaanxi Province, with the Silk Road Economic Belt high on the agenda, the organizer said Wednesday.

The forum aims to explore the innovation model of Asian and European countries in building the Silk Road Economic Belt and promote in-depth regional cooperation, said Li Jing, deputy secretary-general of the forum and deputy mayor of Xi’an.

The forum features several main seminars on cultural heritage, ecological safety, economic growth, education, energy development, financial cooperation and tourism development, offering a platform for exchanges between officials, businessman and experts from countries along the ancient Silk Road.

The Silk Road refers to the land trade route opened when Zhang Qian was sent west on a diplomatic mission more than 2,000 years ago. Starting from the city known today as Xi’an, the ancient Silk Road ran through northwest China’s Gansu Province and Xinjiang Uygur Autonomous Region, and Central and Western Asia, before reaching the Mediterranean. Enditem

Source Xinhua

China pledges more reform on tourism development

BEIJING, July 29 (Xinhua) — China will carry out more reforms to boost investment and consumption in tourism industry, the State Council, or China’s cabinet, decided on Wednesday.

Tourism development is significant in fostering the country’s modern service sector, increasing employment and income, as well as improving people’s livelihoods, according to a statement released after an executive meeting of the State Council presided over by Chinese Premier Li Keqiang.

The meeting urged improving tourism consumption. Construction of regional airports, roads to scenic spots, parking lots and washrooms in destinations, especially in less-developed central and western China, should be supported, the statement said.

Personalized tourism products focusing on rural areas will be supported, the meeting decided. The government will encourage college graduates and migrant workers who have returned to home villages to start their own rural tourism businesses, as a way to alleviate rural poverty, the statement said.

New popular tourism consumption choices should be discovered and well utilized, the cabinet said. Internet-related business mode such as online vacation rentals and transport rentals, should be easier to enter. Various tourism products such as for the elders, and for studying purposes, should be developed. Governments at all levels should further implement the paid-leave system, the cabinet said.

The meeting agreed to promote public-private-partnerships (PPP) in developing tourism projects, with more government investment and individual capital participation. It also urged to widen financing channels for tourism enterprises, and encourage financial institutions to increase credit support for those enterprises.

Better and colorful tourism activities will enrich people’s life, and also boost economic development, the statement said. Enditem

 

China, the kingdom of potatoes in world

Stockholm, Aug. 3(Greenpost)–  China has become the world’s largest potato producer, accounting for 25 percent of global production, according to Xinhua News Agency.

The country grew 5.6 million hectares of potato in 2014, yielding in excess of 95 million tonnes, according to the Ministry of Agriculture .   China’s potato acreage makes the crop the country’s fourth staple after rice, wheat and corn.

Last year, despite enjoying the 11th consecutive year of bumper grain harvests, the country still imported 71.4 million tonnes of soybean and 19.5 million tonnes of rice, wheat and corn, up 12.7 percent and 33.8 percent, respectively.

With a shortage of farmland in China, the ministry stressed that it is difficult to improve the yield of wheat and rice but easier with potatoes.

It’s hoped that the name of Kingdom of bikes will come back one day when the crazy wave of industrialization ebbs.

More for the following, stay tuned.

China becomes biggest potato producers and consumer

 

BEIJING, July 29 (Xinhua) — Planting area and output of potato in China each have accounted for about a quarter of the world’s total, making it the biggest potato producer and consumer in the world, according to the 2015 Beijing World Potato Congress and China Potato Expo on Wednesday.

However, per unit area yield and per capita consumption of potato in China are still low, showing the big development potential.

In 2014, the country’s planting area of potato amounted to 5.57 million hectares, accounting for a quarter of the world’s total.

Meanwhile, China yielded more than 95 million metric tons (tonnes) of potato last year, representing a quarter of the world’s total.

Despite the high yields, per unit area yield of potato in China was only 17.7 tonnes per hectare, far lower than that in developed countries.

According to official statistics, per capita consumption of potato in China was only 41.2 kg at present. Enditem

Xinhua Insight: Producers hope potatoes takes root in China

by Xinhua writers Tan Yixiao, Cheng Lu and Wei Mengjia

BEIJING, July 29 (Xinhua) — Potatoes seem like an unlikely ingredient for ice cream, but the allure of tasting the strange concoction had dozens of visitors lining-up at the China Kitchen exhibition at the 2015 World Potato Congress in Beijing.

The 1,000-square-meter stall was serving up to 100 potato-based foods, from noodles to sweet purple drinks, developed by Xisen Potato Industry Co. Ltd., the country’s biggest potato producer. By combining potatoes with traditional Chinese cuisine, the company is at the congress looking for partners to promote their new products being tested at the China Kitchen.

With China promoting potato acreage and encouraging the vegetable as one of the country’s staple foods, more companies like Xisen want to take a bigger slice of the growing market.

Around 500 km away from Beijing, Linkage Potato Co. Ltd., based in Inner Mongolia, China’s major potato production base, is expanding its product portfolio to satisfy people’s appetite.

With five farms and a 70,000-mu (around 4,667 hectares) high standard planting base, the company produces potatoes and seeds and processes potato flakes.

Yan Hongxin, vice president of Linkage, told Xinhua that the company will set up a new production line in autumn to increase its annual output of potato flakes from current 3,000 tonnes to 15,000 tonnes.

In addition, they are eyeing the frozen French fry market as domestic demand grows, driven by expanding fast food chains.

In March this year, it has established a joint venture with Farm Frites, a Dutch enterprise with over 40 years experiences in potato processing, in Wudan Town, Chifeng City in Inner Mongolia.

The new production line will have a capacity of 70,000 tonnes frozen French fries annually with consumption of 140,000 tonnes of fresh potatoes. The fries will be put into the market by 2017 and expansion will continue after that, Yan said.

NO SMALL POTATO

His confidence in the domestic potato market is justifiable.

China is the largest potato producer in the world with a planting area of 5.5 million hectares. However, average Chinese consumption of potatoes is 41.2 kilograms, far below the consumption level of European and American countries, data from China’s Ministry of Agriculture showed.

“Its nutritious value is often overlooked,” said Bi Yang, professor of Gansu Agricultural University.

He pointed out that an average-size potato contains as much protein as an egg, and 10 times more vitamin C than an apple.

With the country’s gross domestic product (GDP) per person surpassed 7,000 U.S. dollars last year, people’s need for improving food nutrition patterns has grown. Bi said potato is a good option to improve nutrition.

In addition, potato is more resistant to the cold and the drought compared with wheat and rice. China is boosting its acreage to make potato as one of the country’s staple foods to better ensure its food security under the pressure of less farmland, water, labor and chemicals.

After years of research, steamed buns made from potato flake made their debut in more than 200 supermarkets in Beijing last month, one step closer to make it a centerpiece of people’s dining table.

LONG WAY TO GO

Seed quality, production cost and eating habits all pose a challenge for potato companies.

Kiremko, a food processing equipment company from the Netherlands, has cooperated with 15 Chinese potato companies for over 30 years.

Joost Miltenburg, area sales manager of Kiremko, said two kilograms of European potato can make one kilogram of French fries with the company’s processing equipment, but some Chinese potatoes fail to produce the same amount of French fries owing to poor quality.

He sees a lot of potential in China but also a lot of waste in potato storage and transportation, inefficient planting and irrigation.

Companies are also seeking ways to lower cost. The potato yield per hectare is 16 tonnes in China, while the number is around 50 tonnes in developed countries, making potato flakes three times more expensive than wheat flour, said Lu Xiaoping, director of International Potato Center’s branch in Asia and the Pacific area.

“Only by establishing a high-tech breeding base and producing in a mechanized way can we guarantee high-quality seeds,” said Liang Xisen, chairman of Xisen Potato Industry Co. Ltd.

But the most difficult problem facing potato companies is to change Chinese people’s long-standing diet habits and give potatoes similar role as rice and wheat.

Miltenburg said Chinese potato noodles and steamed buns are new for him. Although it takes time to change people’s habit, he believes that providing more choices can earn potato fans sooner or later. Enditem

Congratulations to Beijing for winning the right to hold 2022 Winter Olympics

By Xuefei Chen Axelsson

Stockholm, Aug. 4(Greenpost)-Chinese people all over the world are happy for Beijing and Zhangjiakou to win the right to host 2022 Winter Olympics.

   Vice Premier Liu Yandong, head of the Beijing 2022 Winter Olympics bidding delegation returned to Beijing on August 2 and welcomed by various circles of the people in Beijing. Photo by Xinhua, Yao Dawei.

The news came out on July 31st. Immediately after that I saw my Wechat friends circle spread out this news.

I sat in front of my computer and watched Swedish SVT finding out that they got an one hour and 22 minutes live broadcasting program to specially live cover the voting site in Kuala Lumpur Malaysia.

I felt very excited when I heard the news and tears almost came out of my eyes. It was as if I won the world championship or in other words that I could feel the happiness of a winner in sport.

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Liu Yandong with delegates in Lausanne for Beijing’s bidding briefing for 2022 Winter Olympics Games.

It was such a short notice type of happiness. I heard the news last month that my former colleague Yang Binyuan who was a project leader during 2008 Oympic Games in Beijing were in Lausanne to participate in the bidding process with Chinese Vice Premier Liu Yandong, famous TV host Yang Lan, Sport star Yao Ming,  Beijing Mayor Wang Qishan and many others.

 

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The tallest in the middle is Yao Ming and the third from left Yang Binyuan. Photo from Yang Binyuan’s facebook.

According to SVT, Sweden also bid for 2022 Winter Olympics, but when it heard China also bid for it, it withdrew hoping for 2026. In fact, many countries withdrew at the news that China wanted to bid.

This time China seemed to prepare for the bidding not that long time ago, however many work has been done long time before thinking of bidding for Olympics. For example the skiing site was built many years ago just for people’s sports recreation so that people around Beijing can enjoy the pleasure similar to that in Northeast China’s Heilongjiang and Jilin provinces.

But I think this bid has great to do with the support of President Xi Jinping’s idea of cleaning the environment in Beijing, developing the surrounding areas. So he said if Beijing and Zhangjiakou can hold 2022 Olympic Games, it will drive a consumption population of 300 million. That is a great business opportunity.

http://www.tudou.com/programs/view/6v6h1NnzgBY/

His words moved many people.

“Beijing is like a vampire absorbing all the talented people and various resources while the surrounding province was deprived of these resources. It is time to help the surrounding city to develop. I believe the 2022 Winter Olympics will help Zhangjiakou to develop for the better, congratulations,” said Huang Nan, an independent English  language professor in his Wechat circle.

Professor Wu Wenzhong from Beihang University also congratulated Beijing.

“Talking about Olympics, I was the English judge for 2008 Beijing Summer Olympics judges. I will be 68 years old by 2022, I like to be a volunteer for the 2022 Winter Olympics if possible,” said Professor Wu in his Wechat friends circle.

Swedish Olympic Committee President Stefen Lindberg said in a telephone interview that Beijing’s winning is not unexpected.

“It’s not unexpected. Beijing has the basis from 2008 Olympic Games and Zhangjiakou can be a good place for skiiing. Sweden will be preparing for 2026,” said Lindberg.

photo (31)In Beijing, Lin Mei sent me a photo saying that she and Swedish Ice Hocky Coach were invited to celebrate the victory of bidding.

Geely Group P.R. chief Michael Ning said Volvo made a good decision to choose Zhangjiakou as one of its production bases. The 2022 Winter Olympics will definitely be beneficial for them.

Of course the greatest benefit for Beijing will be the blue sky. It is a dream for many to have the blue sky and white cloud.  Beijing has created Olympics blue and Apec blue. Unfortunately it is very difficult to keep it for the long term.

According to British Stern report, China’s greenhouse gas emission is expected to decrease by 2025. With the efforts to hold 2022 Winter Olympics, the blue sky is expected to be able to continue by then.

 

中国温室气体排放总量可望2025年出现拐点

 

 

China economy under downward pressure: finance minister

BEIJING, July 29 (Greenpost) — The country’s economy is stabilizing and recovering, but still facing significant downward pressure, Chinese Finance Minister Lou Jiwei said on Wednesday.

Speaking at a national financial work conference, Lou said the ministry will continue to ensure funds to the construction of major projects to offer fiscal support, while cutting tax and administrative fees to lower companies’ costs.

China’s economy posted a better-than-expected growth of 7 percent in the second quarter of the year. The growth, though unchanged from the first quarter, was its lowest level since the global financial crisis.

Lou said the ministry will continue to promote a public-private partnership (PPP) model for investment, regulate local government debt and promote “market-oriented transformation” of local government financing vehicles in order to turn these local government-backed investment bodies into independent entities.

He also urged further advances in the country’s tax reforms, which includes replacing turnover tax with value-added tax and implementing consumption tax and resource tax reforms. Enditem

“The bid alone will boost participation in winter sports across the country,” Zhang said. Enditem

Source Xinhua

Editor Xuefei Chen Axelsson

News Analysis: Information Silk Road brings regional enterprises closer

BEIJING, July 19 (Xinhua) — When Damir Karcas, who markets drinks from Serbia, came to southeastern China to promote his products a month ago, he knew little about selling on Chinese e-commerce sites, an increasingly popular venue for food and beverage sales.

“I paid little attention to market information in this field before, but it seems necessary to keep yourself tuned in to changing market conditions in China,” said Karcas.

As infrastructure development progresses steadily along the China-proposed Belt and Road, a trade and infrastructure network that connects Asian, European and African countries, breaking invisible barriers of information asymmetry stands out as a key task.

Failures haunt many firms that venture overseas due to misunderstandings with local stakeholders and ignorance of the local regulatory and cultural environment.

Information asymmetry has become the top issue facing overseas investment by businesses as many firms are ignorant of possible risks, according to Jia Huai, deputy head of the economic information department of the China Council for the Promotion of International Trade.

“It is reality that information and communication gaps create differences among individuals, groups and countries and misunderstandings about specific issues or projects when there is little or incorrect information,” said Aman Ullah Khan, Chairman of the Pak-China Business and Investment Promotion Council.

Jia suggested that enterprises at home and abroad establish an information exchange platform to develop trade and investment strategies according to the target country’s political, economic, cultural and social conditions.

An open and sound information-sharing mechanism should be based on big data and include databases, business connection platforms, consulting services as well as information collection, publication, screening and other customized services to help investors gain insight and expand their influence in their targeted markets.

Chinese government organizations and media groups are working to bridge the information gap and build an Information Silk Road. The State Information Center is constructing databases of countries involved in the initiative, and Xinhua News Agency rolled out a new line of information products to help global investors form better partnerships under the Belt and Road Initiative.

China’s bilateral trade with countries along the Belt and Road Initiative remained robust amid downward economic pressure and reached close to three trillion yuan (490.2 billion yuan) in the first half of 2015, about one-fourth of total trade volume.

“To avoid misconceptions and misunderstandings and to increase trust among stakeholders, partners, and investors, there should be fair and accurate flow of information. With the passage of time, economic and financial information will be as important as investment and other projects,” Khan added. Enditem

Interview: Chinese economic data true to facts: vice FinMin

LONDON, July 20 (Xinhua) — China’s economy posted 7 percent growth year on year in the second quarter of 2015, Chinese Vice Finance Minister Zhu Guangyao told Xinhua in a recent interview here, emphasizing the data was realistic and serious.

Analyzing the data released by China’s National Bureau of Statistics (NBS), Zhu pointed out that China’s economic growth was 7.4 percent last year, and the growth rate remained above 9 percent in the past for a long time. Therefore, the 7-percent growth rate shows China’s economy is facing pressures, he said.

On the international side, China is in a severe external economic environment, including a divided trend of monetary policies in different developed economies and geopolitical risks. Zhu said the complex external environment has a negative impact on China’s economy.

On the domestic side, China has to deal with the slowdown in economic growth, making it difficult to make structural adjustments, and absorb the effects of previous economic stimulus policies.

Besides, the 7-percent growth rate also reflects China’s adjustment measures are being gradually put in place, Zhu stressed. The most important thing is to adhere to the proactive fiscal policy and a prudent monetary policy.

Zhu noted that China’s report on the work of the government showed four key factors that constitute proactive fiscal policy:

Firstly, the government budget deficit for 2015 will increase modestly, which means the deficit to gross domestic product (GDP) ratio will rise from last year’s 2.1 percent to this year’s 2.3 percent.

Secondly, the government will continue to make structural tax reductions and cut fees across the board so as to further lighten the burden on enterprises, particularly small and micro businesses.

Thirdly, the government will improve the mix of budgetary spending, redouble its efforts to put government funds on hand into use, and strengthen the effectiveness of government spending.

Fourthly, the supply of public goods and services will increase.

As to the prudent monetary policy, Zhu indicated that the key is to stabilize renminbi’s (RMB) value, control inflation, and support the real economy. The RMB exchange rate has reached a balanced level, and China’s balance of payments is in an appropriate range. “We have made significant progress,” he said.

Zhu told Xinhua that in the first half of this year, China’s consumer price index (CPI) edged up 1.3 percent y-o-y, fixed-asset investment grew 11.4 percent y-o-y, retail sales of consumer goods rose 10.4 percent y-o-y, urban employment increased by 7.18 million, and the contribution of consumption toward economic growth rose to 60 percent.

“This is indeed very healthy data,” said Zhu.

Furthermore, the value added of the service sector increased to 49.5 percent of the GDP in the first half of this year, suggesting China is making progress in economic structural adjustment.

Zhu has full faith in China’s economy. “With strong macroeconomic policies, we are confident to achieve 7-percent growth target this year and keep the potential growth between 7-8 percent during the 13th five-year plan,” noted Zhu.

According to the latest forecast from the International Monetary Fund (IMF), global economic growth is projected at 3.3 percent in 2015. China’s contribution to the global economy is expected to reach 28.5 percent this year, said Zhu. Enditem

 

 

  

Xinhua Insight: A wave of startups raises tide of entrepreneurship

   Xinhua Insight: A wave of startups raises tide of entrepreneurship

 

BEIJING, July 20 (Xinhua) — Guo Xin, 23, an undergraduate at Nankai University, feels no pressure from China’s economic slowdown. Instead, he sees positive changes encouraging startups.

“The economy is facing great downward pressure, but for entrepreneurs, the business environment has never been better,” Guo told Xinhua.

Guo is CEO of a an Internet finance company and has established a start-up each year for the past three years.

Like Guo, hundreds of thousands of young Chinese have started their own companies or projects in the past year or two as a startup frenzy grips the nation. Partly thanks to serious reforms, especially business registration reform, it is easier than ever to start a business.

China is entering a new stage of slower but more resilient growth, which President Xi Jinping has called the “new normal.” The essence of the “new normal” is an improved economic structure that relies on services, consumption and innovation.

STARTUPS SHOOT UP

China’s GDP growth held steady at 7 percent in the first half this year, but another figure — the number of newly registered enterprises — is even more impressive. New registrations jumped 19.4 percent from a year ago to 2.1 million in H1.

“Creative, entrepreneurial spirit has been stoked by business reform,” said Yu Fachang with the state administration for industry and commerce (SAIC).

By the end of June, there were around 74.2 million businesses in China, including agricultural concerns and individual traders, up 7 percent from the end of 2014, SAIC data showed.

The number of new firms registered in the service sector accounted for 80.3 percent of the increase, or 1.6 million during the first six months, 22.6 percent more than in the same period last year.

This, Yu said, reflects a better economic structure, with the service sector playing its prescribed “bigger role” in growth and job creation. The sector has become the biggest driver of growth, expanding 8.4 percent in H1 and accounting for 49.5 percent of GDP.

Wang Bao’an, head of the National Bureau of Statistics, believes that a new wave of mass entrepreneurship and innovation is in the offing, given the huge success of many startups. The drive for mass entrepreneurship and innovation along with repeated cuts to red tape are feeding creativity and market vitality, Wang told the People’s Daily last week.

CONTINUOUS REVOLUTION

Premier Li Keqiang has repeatedly promised that the government will revolutionize itself to promote mass entrepreneurship and innovation.

In streamlining business registration since 2014, China has removed minimum capital requirements, replaced annual company inspections with a reporting system and loosened site requirements for businesses. Last month, the government announced that those wishing to start their own business would only need to apply to one office for the three essential business certificates, rather than the current regime of visits to three different offices. Business licenses, tax registration certificates and organization code certificates will all now be issued by the SAIC.

Guo Xin already feels the better business environment. “Entrepreneurship and innovation are state policies and there are many new government business incubators to assist new firms or projects,” he said, adding that other changes included easier financing, clearer procedures for starting a business, a much larger number of new entrepreneurs and an easier get-out processes for those who fail.

“Encouraging mass entrepreneurship and innovation has activated hundreds of thousands of cells in the market, which helped macroeconomic stabilization,” Premier Li told a conference earlier this month.

THE FOURTH WAVE

Economist Gu Shengzu believes that lowering the threshold for starting businesses, removing restrictions and the rise of the Internet economy may have created a “perfect storm” of entrepreneurship in China.

“Entrepreneurship and innovation are twins. To the Chinese economy, they mean not only a better today, but a better tomorrow and the day after tomorrow,” Gu told Xinhua.

The innovative power of the Chinese people is an important engine for stable growth and a smooth transition to the new normal, he said, calling this “the fourth wave” of mass entrepreneurship in nearly 40 years.

The first wave began in 1978 when reform and opening-up began, with farmers setting up township enterprises and urban dwellers starting small businesses. The second wave swept China after 1992, with about 100,000 public servants resigning from their “jobs for life” to go into business for themselves. The third came when China joined the World Trade Organization in 2001.

The past three waves gave rise to numerous top Chinese entrepreneurs who rose from nobodies to tycoons, including Alibaba founder Jack Ma, Tencent’s Pony Ma and smartphone manufacturer Xiaomi’s CEO Lei Jun.

Gu said the difference between the first three waves and this fourth wave is that the government has actively worked to bring about the arrival of the fourth through aggressive policies.

Wang Bao’an, the statistics chief, wants future reform to focus on four areas: price controls, market entry, R&D and invigorating State-owned firms. He maintains that only more reforms will guarantee future growth. “The policy goals of stabilizing growth, restructuring the economy and achieving innovation-driven growth can be reached only through more reform… The key is to leave the market to allocate resources,” he said. Enditem

China Voice: Chinese economy on slow, steady track to target growth

BEIJING, July 21 (Xinhua) — China has handed in its economic performance sheet for the first half of 2015. While it seems lackluster at first glimpse, a closer look reveals encouraging signs.

China’s headline GDP growth stayed flat at 7 percent in Q2 — not an impressive performance compared with the first half of 2014, leading to concerns of continuous slowdown and a possible hard landing.

However, these concerns have mischaracterized the current state of the Chinese economy.

The economy, which is in a “new normal” stage of slower but steadier growth, is showing signs of bottoming out.

The property sector, a key contributor to economic growth, saw its sales grow strongly in June and Q2, and infrastructure investment accelerated in June for the first time in three months.

Another happy surprise has been the growing role of the services sector. It expanded 8.4 percent in H1 and accounted for 49.5 percent of GDP, an outstanding sign of the country’s success in restructuring the economy and fostering new growth engines.

Chinese President Xi Jinping reassured local governments last week that the economy still enjoys a promising outlook despite downward growth pressure, and the leadership’s confidence is well-grounded.

The economic fundamentals are still sound with stable employment, prices, grain output and income growth.

High-end industrialization and urbanization remain two major drivers to power future growth as China aims to transform itself from the world’s factory into a more sophisticated manufacturer and urbanize rural areas with a current population of about 200 million.

Meanwhile, economic activity is likely to be more robust as the government’s efforts to offer policy and funding support for infrastructure, ease local governments’ financing pressures and loosen monetary and credit conditions gradually pay off in the second half of this year.

Last but not least, the optimism comes from increasing market confidence itself. China’s manufacturing PMI figures have been above the expansion/contraction threshold for the last four months and the industrial entrepreneur confidence index also remained in expansion range in Q2.

All these signs suggest the country’s GDP growth target of about 7 percent is attainable as growth picks up in the second half of this year.

The short-term outlook may still indicate structural slowdown as the economy works through a painful process of adjustment and deleveraging, but as the country’s market-oriented reform, public entrepreneurship and innovation gather steam, the Chinese economy is heading toward its target growth at a slow and steady pace. Enditem

China Voice: Why does a market-oriented China need a plan?

BEIJING, July 21 (Xinhua) — The 18th Central Committee of the Communist Party of China has just decided to hold its fifth plenary session in October. High on the agenda is the 13th five-year plan for national development (2016-2020).

Neo-liberals claim that economic planning is a key characteristic of centralized economies and runs counter to the market. Why then, is the world’s second largest economy, already pledged to let the market play a “decisive” role, still clinging to such a national plan?

China’s five-year plans are basically a series of social and economic development initiatives that came into being along with the socialist regime in the middle of the last century. Concerned mainly with government development priorities and growth targets, the plans are a guide for Chinese regulators.

For market economy die hards, a government cannot “plan” an economy, and especially cannot plan how enterprises and the market will operate, but in today’s world, where the concept of free market is considered sacrosanct, no economy functions without intervention.

China has relied on a strong government steering its economy for over 60 years, so it would be unwise not to draw on a tradition that has proven effective in the last few decades, especially with the economy at a crux of upgrades and changes of emphasis.

Critics of economic planning fear that government intervention erodes efficiency, but the market is not right all the time, although it is right most of the time. The free market itself can be a cause of low efficiency, as shown by the number of modern economic recessions. If we countenance government help when the economy needs rescuing, we should, in the same light, acknowledge government support during the good times.

When we eventually see the new five-year plan, we may be pleasantly surprised. The approach may be an inheritance from the age of planning, but it will be no meticulous description of every nut and bolt.

An economic plan does not mean a backing-off from the market economy nor stronger intervention by the state. Rather than a script, it is an extensive agenda of support. The plan may be more micro and specific than the goals set by European and American governments, but such an approach suits the developing economy.

The five-year plan offers investors, home and abroad, a chance to see the government’s priorities and make better plans themselves.

As one of China’s most prominent economists and most active reform advocates Fan Gang put it, the plan “puts forward the development vision and roughs out what the government’s [rather than the market’s] tasks are.” Enditem

 

 

 

 

China FDI growth to pick up amid challenges: vice minister

BEIJING, July 18 (Xinhua) — Foreign direct investment (FDI) in China will rebound in 2015 on the back of a robust expansion in the first six months, Vice Commerce Minister Wang Shouwen has said.

Wang expected the FDI in China for the whole 2015 to grow around four percent to 125 billion U.S. dollars, compared with a 1.7-percent expansion recorded in 2014.

Official data showed on Friday that the FDI rose eight percent in the first half of the year to 68.4 billion U.S. dollars, accelerating sharply from 2.2 percent in the same period last year.

Wang attributed the improvement to China’s continued efforts in widening pilot reforms in free trade areas, fewer government restrictions and active promotion of opening up in certain industries and inland areas.

However, he warned that FDI growth will probably drop in the latter half mainly due to a slow economic recovery in major FDI sources and the tapering of U.S. quantitative easing.

China became a net capital exporter for the first time in 2014 when the FDI was outnumbered by outbound direct investment (ODI).

In the first six months of 2015, China’s ODI grew 29.2 percent to 56 billion U.S. dollars, a higher speed but less volume than that of the FDI. Enditem

 

PBOC allows qualified foreign institutions to trade, after filing, interest rate swap on interbank market

BEIJING, July 15 (Greenpost) – Chinese central bank – the People’s Bank of China (PBOC) released late Tuesday a circular permitting qualified foreign institutions to trade, after filing, interest rate swap and other products on the domestic interbank market.
The decision was made to further boost foreign institutional investors’ investment in domestic interbank market.
Upon publication of the circular, such foreign institutions as foreign central banks, international financial organizations, and sovereign wealth funds are approved to file for recording to the PBOC before trading cash bonds, bond repos, bond lending, bond forwards, interest rate swap, forward rate agreements and others PBOC allows.
What’s more, foreign institutions are free to decide their investment size, according to the PBOC circular. Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

China central bank regulates overseas action in interbank market

    BEIJING, July 14 (Xinhua) — The People’s Bank of China (PBOC), the central bank, issued a notice on Tuesday regulating overseas investment in the country’s interbank market.

Institutional investors, including foreign central banks or monetary authorities, international financial institutions and sovereign wealth funds, are now required to register with the PBOC before investing in the interbank market.

After registration, investors can trade bonds in spot and forward markets, conduct interest rate swaps, and trade forward rate agreements. They will be free to decide on the size of their investment.

“Overseas institutions should be long-term investors and conduct business in China’s interbank market based on the reasonable need to preserve and increase the value of assets,” said the PBOC.  Enditem

China’s electroplating industry to embrace standard management

 

BEIJING, July 15 (Xinhua) — Chinese authorities have formulated standards for the domestic electroplating industry and are now collecting public opinions on the standards, according to the Ministry of Industry and Information Technology (MIIT) on Tuesday.


The enterprise scale will be a rigid threshold for access to the electroplating industry, which will help enhance market share of leading enterprises, say analysts.
According to the standards, electroplating enterprises are required to build qualified wastewater treatment facilities and the waste water processed by those enterprises and enterprises with electroplating facilities has to meet environmental standards.
Meanwhile, the total amount of the bath solution should be no less than 30,000 liters during the production process. In addition, annual output value of the electroplating enterprise should be more than 20 million yuan. Enditem

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