Must-Read China Economic News (March 27-April 2)
Chinese premier on equipment upgrades, trade-ins of consumer goods;green development to nurture 10-trln-yuan market each year;central bank governor calls for IMF quota reform...
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:
Chinese premier pledges efforts to promote equipment upgrades, trade-ins of consumer goods
Chinese Premier Li Qiang on March 28 pledged to take concrete action to promote large-scale equipment upgrades and trade-ins of consumer goods, in an effort to facilitate economic transformation and improve people's livelihoods.
Speaking during a State Council video conference, Li, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, highlighted the strategic significance of the upgrade campaign and its benefits for the economy, businesses and individuals.
He called on all regions and government departments to attach great importance to the campaign and make solid efforts to carry it out.
Li said the campaign should be market-oriented and government-guided, and it should include four major areas: equipment renewals, trade-ins of consumer goods, the recycling of used goods, and the leveling-up of standards.
China to lift anti-dumping tariffs on Australian wine
China's Ministry of Commerce (MOC) announced that the country will lift anti-dumping and anti-subsidy tariffs on Australian wine from March 29.
Given the changes in the relevant wine market in China, it is no longer necessary to impose such tariffs on imports of wine originating in Australia, the ministry said in a statement.
The anti-dumping tariffs were imposed on March 28, 2021 for a five-year period.
British biopharmaceutical giant eager to seize opportunities created by China's innovation drive
Inspired by China's efforts in opening-up and fostering innovation, British biopharmaceutical giant AstraZeneca is committed to the Chinese market.
"AstraZeneca has been present in China for over 30 years. In that time, China has become an important growth engine," said Pascal Soriot, CEO of the company.
Soriot attended the two-day China Devlopment Forum 2024, an annual high-level international conference, seeking to identifying new partnerships and opportunities.
"It serves as an excellent platform for international exchange and cooperation," said Soriot.
Global market pulp giant set for thriving growth with Chinese economy
Brazil-headquartered global leading market pulp firm Suzano said it plans to deepen its roots and expand presence in China as the world's second-largest economy's shift to high-quality growth provides fertile soil for business growth.
"The Chinese economy is like a eucalyptus, which grows fast and provides sustainable solutions for the world and the future," Suzano's global CEO Walter Schalka said.
Celebrating its centennial anniversary this year, Suzano has been in the Chinese market since the 1980s, witnessing the country's steady rise to its largest export market.
The Chinese market accounts for roughly 40 percent of the total global exports of Suzano, whose market pulp from eucalyptus provide printing and writing paper, paperboard packaging, textiles, among others, to consumers in over 100 countries.
"China is by far the most relevant market for us," said Schalka, adding that there is still much growth space in the huge market in terms of per capita tissue consumption when compared with some developed countries.
China central bank governor calls for IMF quota reform
Pan Gongsheng, governor of the People's Bank of China, the Chinese central bank, called on Asian countries on March 27 to jointly push for the quota reform of the International Monetary Fund (IMF) so that the international financial institution can better play its role as the center of the global financial safety net.
Pan made the remarks while attending a sub-forum of the Boao Forum for Asia Annual Conference 2024, titled "Deepening Financial Cooperation in Asia," held in Boao, south China's Hainan Province.
Asian countries should work together to promote IMF quota reform and achieve quota adjustment as soon as possible to better reflect the due positions of Asian countries in the global economy, and especially to enhance the voice and representation of emerging markets and developing countries, Pan said.
Asian countries can push for a consensus on a new quota formula as soon as possible, laying the foundation for quota adjustment. "This is to ensure that the IMF is a rule-based institution that truly practices multilateralism," he said.
📢Voices on Spot:
China strongly opposes revised U.S. chip export restrictions
China has expressed strong opposition to the latest U.S. revised rules on semiconductor export rules, saying that it will disrupt the global semiconductor market as well as cooperation between enterprises.
The latest revision of semiconductor export controls came less than six months after the United States introduced the rules on Oct. 17, 2023, said China's MOC on March 31.
Global companies, including the U.S. ones, need a stable and predictable business environment, but the United States has overstretched the concept of national security and arbitrarily revised the rules to tighten control measures, setting more obstacles for the normal trade cooperation between Chinese and American enterprises, imposing a heavier compliance burden and bringing remarkable uncertainties in the global semiconductor sector, it noted.
The semiconductor sector is highly globalized after decades of growth and this is the result of the law of the market and the choice of enterprises, it said.
As the world's largest semiconductor market, China is willing to work with all sides to boost mutually beneficial cooperation and promote the security and stability of the global semiconductor industrial chain and supply chain, it said.
China hopes Netherlands will ensure normal trade of lithography machines: minister
China hopes the Netherlands will ensure normal trade of lithography machines, Chinese Commerce Minister Wang Wentao has said.
Wang made the remarks on March 27 when meeting with visiting Dutch Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen.
China regards the Netherlands as a reliable economic and trade partner, and hopes that the Netherlands will uphold the spirit of contract, support enterprises in fulfilling their contractual obligations and ensure normal trade of lithography machines, Wang said.
He called for efforts to maintain the stable global semiconductor industrial chain and supply chain, and promote the sustained and healthy development of bilateral economic and trade relations.
⭐Policy Moves Much-Talked:
China's green development to nurture 10-trln-yuan market each year
China's top legislator Zhao Leji said on March 28 that China's green and low-carbon development will create a huge increase in economic growth and nurture a 10-trillion-yuan (about 1.4 trillion U.S. dollars) market for investment and consumption each year.
Zhao, chairman of the National People's Congress Standing Committee, made the remarks in a keynote speech at the opening ceremony of the Boao Forum for Asia Annual Conference 2024.
China to boost imports of high-quality consumer goods
China's MOC will continue to promote high-level opening up and expand imports of high-quality consumer goods, an official said on March 27.
Customs data shows that China imported 1.95 trillion yuan (274.65 billion U.S. dollars) of consumer goods in 2023, up 1.2 percent from the previous year, said Xu Xingfeng, director of the MOC department for market operation and consumption promotion.
Preliminary statistics show the total value of cross-border e-commerce retail imports reached 141.77 billion yuan in 2023, up 7 percent year on year, he said.
The ministry will further improve the level of import trade facilitation, give full play to the platform role of consumer exhibitions and enhance the convenience of cross-border business personnel exchanges, amid efforts to build China's super-large market into a large market shared by the world, he said.
📊Key Macroeconomic Indicators:
Industrial profits
Profits of China's major industrial firms increased 10.2 percent year on year in the first two months of the year.
The figure reversed a 2.3 percent decline registered in 2023.
Industrial firms with an annual main business revenue of at least 20 million yuan saw their combined profits reach 914.06 billion yuan during the period.
Among the 41 industrial categories monitored by the bureau, 29 recorded profit growth.
(Source: National Bureau of Statistics)
PMI
The purchasing managers' index (PMI) for China's manufacturing sector came in at 50.8 in March, bouncing back to the expansion zone.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The positive rebound followed five consecutive months of contraction that started in October 2023, indicating recovery in China's manufacturing activity.
Non-manufacturing PMI came in at 53 in March, up from 51.4 in February.
(Source: National Bureau of Statistics)
⭐Read More:
4th China International Consumer Products Expo set for biggest show
The fourth China International Consumer Products Expo, scheduled from April 13 to 18 in Haikou, the capital of south China's Hainan Province, will boast a sprawling floor area of 128,000 square meters, surpassing its previous editions.
The expo will feature more than 3,000 brands from 59 countries and regions, facilitated by Hainan's visa-free entry policy for these nations and regions, Vice Minister of Commerce Sheng Qiuping has said.
China to see more flights in summer-autumn aviation season
China's civil aviation transport will see steady growth in the summer-autumn aviation season this year, according to the Civil Aviation Administration of China.
From March 31 to October 26, 188 domestic and foreign airlines plan to arrange 122,000 passenger and cargo flights per week.
In terms of international flights, 17,257 passenger and cargo flights are scheduled every week, connecting China and 70 other countries, including 51 Belt and Road partner countries.
As for domestic flights, 51 domestic airlines plan to arrange 101,536 flights in the Chinese mainland every week, an increase of 2.5 percent compared with the same aviation season in 2023.
Compiled by WW