Must-Read China Economic News (Dec.27-Jan.2)
Xi's 2024 New Year message; Better payment environment for foreigners; New measures to attract foreign investment; Industrial profits; Manufacturing, non-manufacturing PMI...
Greetings and welcome to the latest edition of PekingEnsight! We're thrilled to have you join us once again as we navigate the ever-evolving landscape of the Chinese economy.
We've implemented some exciting changes to enhance your understanding of China's unfolding narrative.
At Peking Ensight, we've painstakingly gathered all the essential updates to help you unravel the complexities of this pivotal moment. Your journey through China's economic landscape is about to become even more enlightening, and we're thrilled to have you along for the ride.
⭐Under Spotlight:
Xi Jinping's 2024 New Year message
Chinese President Xi Jinping urged efforts to steadfastly advance Chinese modernization, deliver a better life for the people, and strive to make the world a better place for all in the upcoming 2024.
Delivering his New Year message in his office in central Beijing, Xi summarized 2023 as a year when the country has marched forward with solid and robust steps, in high spirits and with great confidence.
Acting on the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old, the country will work to consolidate and strengthen the momentum of economic recovery, and achieve steady and long-term economic development, he said.
Xi stressed the needs to deepen reform and opening up across the board, further enhance people's confidence in development, promote vibrant development of the economy, and redouble efforts to boost education, advance science and technology and cultivate talents.
📢Voices on Spot:
"European firms not leaving Chinese market"
Jens Eskelund, president of the European Union Chamber of Commerce in China, said "European companies are not running for the exit. Instead, most of our member companies remain committed to the Chinese market."
"China to deliver decent future growth despite challenges"
Morgan Stanley Chief China Economist Robin Xing said China has made remarkable progress in its economic recovery.
Although there are still challenges, he is optimistic about the country's economic growth prospects. "There is not much question that China can achieve its 5-percent government target for this year," Xing said.
"China's MOC warns of harm from U.S. action on chips"
Spokesperson for China's Ministry of Commerce He Yadong said at a press conference that any actions that go against market principles and sever the global semiconductor market will not only undermine the rights and interests of Chinese enterprises but also weigh on those from other countries, including the United States.
📊Key Macroeconomic Indicators:
Industrial profits
The profits of China's major industrial firms with annual main business revenue of at least 20 million yuan (about 2.82 million U.S. dollars) increased by 29.5 percent in November from the same period last year.
In the first 11 months of the year, the profits of major industrial firms reached 6.98 trillion yuan, down 4.4 percent year on year, with the rate of decline narrowing by 3.4 percentage points from the first 10 months.
(Source: National Bureau of Statistics)
Current account surplus
China's current account surplus amounted to 209 billion U.S. dollars in the first three quarters of 2023. The current account surplus to GDP ratio was 1.6 percent during this period, which is within a reasonable and balanced range.
(Source: State Administration of Foreign Exchange)
Manufacturing, non-manufacturing PMI
China's purchasing managers' index (PMI) for manufacturing sector was 49 in December, down from 49.4 the previous month, while non-manufacturing PMI expanded to 50.4 in December.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
(Source: National Bureau of Statistics)
⭐Policy Moves Much-Talked:
New measures to attract foreign investment
China will roll out a package of measures in 2024 to boost efforts in soliciting foreign investment, an official from the country's top economic planner has said.
The country will work to solve existing problems that foreign businesses face in investing in the country, as well as to lift all the restrictions on foreign investment in the manufacturing sector and continue to open up the service sector, said Zheng Chiping, head of the National Development and Reform Commission's department of foreign investment utilization and outbound investment.
Better payment environment for foreigners
China will continue to work on accepting foreign bank cards, mobile payments, cash use and account services to create a more convenient payment environment for foreign visitors, said a central bank official.
Many foreign visitors use bank cards and cash when making payments in China, but mobile payment is more the norm in the country, making it inconvenient for foreigners when they make payments, said Zhang Qingsong, deputy governor of the People's Bank of China.
Efforts will be made to make foreign bank cards more widely accepted by businesses in major business districts, airports and train stations, said Zhang.
Newly-revised Company Law adopted
China's lawmakers voted to adopt a revised Company Law, which will take effect on July 1, 2024.
The newly revised law, with a total of 15 chapters, including those related to foreign company branches and legal liabilities of companies, was adopted at the seventh session of the Standing Committee of the 14th National People's Congress, China's top legislature.
The law was enacted for the purposes of regulating the organization and conduct of companies and protecting the lawful rights and interests of companies, shareholders, employees, and creditors.
⭐Read More:
Viral dance challenge "Kemusan" brings joy, pride, debate to Chinese youngsters
People spring into a freestyle street dance to the pulsating rhythm of an upbeat Chinese song, swinging their knees and ankles sideways while performing dazzling hand moves, including rapid wrist-twisting actions.
This so-called "Kemusan" dance, translated as "Subject Three" dance, has become the latest internet hit in China. Social media platforms have been overwhelmed with user-generated video clips of men and women, professional and amateur dancers, Chinese and foreigners, performing the "Subject Three" dance moves in diverse circumstances.
New high-speed railway paves way for seamless tourism in east China
A new high-speed railway connecting a series of popular tourist attractions in east China commenced full operation, which is poised to boost the development of tourism and other industries.
The entire 560-km-long Hangzhou-Nanchang high-speed railway is now operational after the section connecting Huangshan City in Anhui Province and Nanchang City in Jiangxi Province was officially put into use following over five years of construction.
The railway route passes through a region rich in tourist attractions featuring scenic lakes, mountains, ancient villages and cultural treasures like porcelain and tea.
Compiled by Ding Yinghua