promote nationwide standardization of transparency in
primary-level government affairs
China will comprehensively promote the standardization
of transparency in primary-level government affairs as part
of its effort in building a services-oriented government to
better meet the needs of businesses and the people.
A host of steps in this respect were adopted on Dec 18
during the State Council¡¯s executive meeting chaired by
Premier Li Keqiang.
The standardization of transparency in primary-level
government affairs is an important reform task the CPC
Central Committee set out. General Secretary Xi Jinping
pointed out that piloting the standardization of government
affairs transparency at the primary level is an important
outcome of our comprehensive deepening of reform. Premier Li
Keqiang, underlining the imperative of work on this front,
reviewed and approved the pilot reform program.
¡°Government affairs at the primary level are closest to the
daily lives of the people. We must do a better job in making
primary-level government affairs open by promoting the
standardization of the practice, making sure that disclosure
of decision-making information will be the norm, whereas the
lack of it, an exception,¡± Premier Li said.
Attendees at the meeting decided that building on pilot
reform, standardization shall be further promoted for the
transparency of government affairs covering all government
services at counties, city districts, and at the township
and community levels.
Wider public involvement in the administrative
decision-making process will be encouraged. Primary-level
governments shall clearly define the scope and format for
public involvement in administrative decision-making, and
disclose this information to the public. They must promptly
respond to any public concern about policy implementation
and project development.
¡°There must be sufficient public involvement as we promote
government affairs transparency. The views and suggestions
of the people must be fully heeded through public hearings
and discussions when it comes to issues that involve
people¡¯s interests,¡± Premier Li said, ¡°Our effort in
promoting government affairs transparency should be
compatible with the self-governance of villagers and
Primary-level governments should formulate, by the end of
2020, a catalog of government affairs to be made public.
Governments at the primary level shall release their service
items, as well as guidelines and processes for accessing
these services, both online and offline.
To make it easier for businesses and people to access
government services, county-level governments shall open
unified online portals for accessing government services.
¡°In promoting the standardization of transparency in
primary-level government services, we must follow a
realistic approach in light of local conditions. Given the
size of our country and how much regions vary from each
other, we must take into full account the realities on the
ground. This will help ensure that work on this front
achieves its desired results,¡± Premier Li said.
(Dec.19,2019) from english.gov.cn
days ahead for foreign investors in China
China rolled out a guideline for foreign investment that
focuses on safeguarding national treatment of foreign-funded
enterprises, and addresses specific issues of concern.
For a start, China will continue to cut the negative list
for foreign investment access in national and pilot free
trade zones, and eliminate restrictions that are not on the
China will accelerate opening-up of the financial sector and
optimize foreign investment policies for automobiles.
Second, China will optimize scientific and technological
innovation services for foreign-invested enterprises,
improve construction of pilot free trade zones.
Third, China will lower the cost of cross-border capital
use, make it easier for foreigners to work in China, and
optimize the approval process for land use in foreign-funded
Fourth, to protect the legitimate rights and interests of
foreign investors, China will fully implement the foreign
investment law, establish and improve institutions for
The guideline called for respect for the market value of IPR
and intensified efforts to crack down on malicious and
repetitive IPR infringements.
China has been working to set up a punitive compensation
system and an IPR credit system, substantially raising the
cost of IPR infringements. One dishonest behavior in the
field of IPR will result in restrictions at every turn.
China bans the use of administrative measures to force
foreign investors or enterprises to transfer technology.
Administrative organs and their staff should strictly keep
any business secrets of foreign investors.
The guideline urges local governments to ensure equality for
both domestic and foreign companies to participate in
standardization work, encouraging foreign enterprises to
contribute to setting standards in medical equipment, food,
medicine and information products, to increase industrial
To create a fair government procurement system, the
guideline requires all local governments and departments to
not discriminate against foreign-funded enterprises. They
should not restrict ownership, organization, equity
structure or investor country, or service brands of
suppliers, in government procurement.
If foreign-funded enterprises are not treated equally, they
can raise complaints with the procurer, and if the procurer
fails to give a reply within the time limit, or if the
supplier is dissatisfied with the reply, they can file a
complaint with the financial department at the same level.
Foreign-funded enterprises that do not participate in
government procurement can also report to the Ministry of
Finance if they find unfair practices.
According to the World Investment Report 2019 of the United
Nations Conference on Trade and Development, China is the
world's second-largest recipient of foreign investment. From
January to October, foreign investment utilized by China
reached $110. 78 billion, up 2. 9 percent year-on-year.
According to a report released by the World Bank, China's
business environment ranking moved up again. China is one of
the top 10 improvers two years in a row.
(Dec.12,2019) from english.gov.cn
trade rises 2.4% so far this year
China's foreign trade volume over the first 11 months of
2019 expanded 2.4 percent year-on-year to 28.5 trillion yuan
($4.14 trillion), registering steady growth, the General
Administration of Customs said on Dec 8.
Exports climbed 4.5 percent to 15.55 trillion yuan, and
imports totaled 12.95 trillion yuan. The trade surplus
widened by 34.9 percent to 2.6 trillion yuan during the
For November, exports and imports hit 2.86 trillion yuan,
growing 1.8 percent year-on-year, with imports increasing
2.5 percent to 1.29 trillion yuan.
Li Kuiwen, director of the GAC's statistics and analysis
department, said China's foreign trade remains resilient as
the national economy develops stably and continues to grow,
despite the slowdown in the global economy and trade growth
Import growth in November reflected China's improved
domestic market demand, he told China Central Television.
The European Union was China's largest trading partner from
January to November, with the bilateral trade volume up 7.7
percent year-on-year to 4.4 trillion yuan. The Association
of Southeast Asian Nations was second largest, up 12.7
percent to 3.98 trillion yuan.
Trade growth with the Belt and Road economies was higher
than the overall growth, as imports and exports with those
economies hit 8.35 trillion yuan in the first 11 months,
increasing 9.9 percent year-on-year and accounting for 29.3
percent of China's total foreign trade, up 2 percentage
points, the GAC said.
In contrast, China's trade with the United States declined
11.1 percent year-on-year from January to November to 3.4
trillion yuan. Exports dropped 8.4 percent to 2.64 trillion
yuan, and imports declined 19.5 percent to 763.05 billion
yuan. The trade surplus with the US fell 3 percent to 1.88
The China-US trade decline came while the two countries have
not yet addressed their trade disputes, but China's overall
foreign trade is expected to continue its expansion, experts
Qin Tai, a macroeconomy researcher at securities services
provider Shenwan Hongyuan Group Co, said next year, as
China-US consultations are expected to make progress and
uncertainties in the external environment may improve, the
impact of the trade dispute on China's exports may be
"On the whole, both the country's exports and imports are
projected to continue their growth in 2020," Qin said in a
recent research note.
Yang Changyong, a researcher at the Chinese Academy of
Macroeconomic Research, said newly emerged business models
like cross-border e-commerce, have created new opportunities
for trade companies and have injected fresh impetus into
foreign trade development.
The GAC data also showed China's foreign trade structure is
improving. General import and export trade rose 4.8 percent
year-on-year to 16.87 trillion yuan from January to
November, accounting for 59.2 percent of the total foreign
trade, which was up 1.4 percentage points year-on-year.
Private enterprises also contributed more. Their exports and
imports valued 12.12 trillion yuan in the January-November
period, up 10.4 percent and accounting for 42.5 percent of
the country's total foreign trade, which was up 3.1
percentage points.(Dec.9,2019) from english.gov.cn
unveils plan on construction of leadership teams of Party,
The General Office of the Communist Party of China
Central Committee has unveiled an outline of a plan for the
construction of leadership teams of the Party and
governments from 2019 to 2023.
According to a statement released by the office, it is a
guiding document for meeting the general requirements for
Party building and implementing the Party's organizational
line in the new era, as well as strengthening the
construction of the leadership teams of the Party and
governments for the new era.
A circular was also released by the office asking
departments and organizations across the country to
implement the plan based on their actual conditions.
(Dec.5,2019) from english.gov.cn
Bay Area sees influx of talent
The economic vitality and sound infrastructure of the
Guangdong-Hong Kong-Macao Greater Bay Area is helping it
attract more talent and become one of China's strongest
In the third quarter of this year, the Bay Area gained 1.3
percent more talent than it lost, up from 1.24 percent in
the same period last year, according to a report released
recently by Zhaopin, an online recruitment platform in
The quality of talent in the Bay Area also improved in the
third quarter, with 55.93 percent of the work force having a
bachelor's degree or higher, up from 54.48 percent last
year. The level of work experience also rose, up by 1.81
percentage points year-on-year.
Shenzhen and Guangzhou, both in Guangdong province, were the
most popular Bay Area cities among job seekers, attracting
nearly 71 percent of the flow of talent in the third
quarter, the report said.
Higher salaries may be one of the Bay Area's main
attractions for job seekers.
The report said the average monthly salary in the area in
the third quarter was 9,344 yuan ($1,330) ¡ª up 6.63 percent
year-on-year ¡ª and above the national average of 8,698 yuan.
Hong Kong had the highest average monthly salary in the Bay
Area in the third quarter at 21,017 yuan, with Macao second
at 14,038 yuan. Shenzhen, at 10,320 yuan, and Guangzhou,
9,115 yuan, offered the highest monthly salaries among
mainland cities in the Bay Area.
The influx of talent has, however, intensified the
competition for jobs, especially in Shenzhen and Guangzhou.
Last quarter, the number of job applicants rose 36.89
percent year-on-year, while the number of positions
available rose by 11.5 percent.
Those seeking jobs in the e-commerce and real estate sector
faced the fiercest competition, while salespeople and
skilled workers were in greatest demand by employers.
The report said the imbalance could be due to the
stereotypes people held about skilled work and job seekers'
preference for a good working environment.
Expensive housing and unbalanced education and healthcare
resources could hinder the Greater Bay Area's efforts to
attract talent, according to the report.
"In order to lure more talent, it's important to help them
solve problems ¡ª for example, expensive housing that might
not be affordable to them ¡ª and also create a good ecosystem
for entrepreneurs," Fan Gang, director of the National
Economic Research Institute, told a human resources forum in
Guangzhou on Nov 30.
"It's a shared responsibility for both government and
society to create a good environment for innovation and
entrepreneurship. It will be good for young people to find
jobs that can unleash their potential and prove their
Wang Shitong, a member of the standing committee of the
Communist Party of China municipal committee in Guangzhou,
the capital of Guangdong, told the forum the city is making
great efforts to attract talent and give them preferential
policies to ensure they have a good working and living
"For example, the city's Haizhu district released a policy
(in April), giving priority to talent in the areas of
housing, children's education, healthcare and
transportation," he said. "In the next five years, there
will be 2,000 professional units in Guangzhou offering human
resources services to people who desire to work here."
Chen Yuyuan, a supervisor at Guangzhou's human resources and
social security bureau, said the city's human resources
services had improved in recent years.
"On Oct 17, 2018, we set up a State-level human resources
industrial zone, and we will endeavor to build this zone
into a human resources hub for the Greater Bay Area in the
near future," he told the forum.
(Dec.2,2019) from english.gov.cn
reform to pick up momentum
The Financial Stability and Development Committee under
the State Council held its 10th meeting, to discuss
financial reform in multiple aspects, highlighting
precautions against grave financial risks.
Liu He, member of the Political Bureau of the Communist
Party of China (CPC) Central Committee, vice-premier of the
State Council and director of the financial committee,
presided over the meeting.
The committee has resolved major financial risks in a timely
and efficient manner and contributed to a stable and orderly
financial market, with significant achievements made in the
current phase of financial reform.
Further efforts should be made to optimize policies and
measures, maintain a balance between steady increase and
risk prevention, enhance counter-cyclical adjustment,
support small and medium-sized banks, and improve the
long-term mechanism to deal with risks, in a bid to
safeguard a stable financial system and economic growth.
Financial reform and opening-up is key to better services
for the real economy and prevention against financial risks.
Thanks to the previous implementation of financial reform
and opening-up, China's financial market has been
substantially strengthened over the past few years.
In the next stage, the committee should continue deepening
reform in the capital market and small and medium-sized
banks, directing privately offered funds to develop,
improving incentive and restriction mechanisms, and making
the financial system more adaptable, competitive, and
A slew of measures were decided during the meeting,
featuring better services for the real economy, further
improvement in capital market basic system, and reform
measures in expanding financial opening-up, among others.(Nov.29,2019)
financial assets reel in foreign investors
Chinese financial assets are becoming an indispensable
part of global investors' holdings, as economic upgrade has
nurtured new opportunities and the nation has opened wider
to foreign investment, officials and experts said.
Foreign investors have continuously increased Chinese stock
and bond assets holdings over the course of this year, with
the stock market having attracted more than 240 billion yuan
($34 billion) in foreign capital, according to China's top
securities regulator on Nov 23.
This development attested to global investors' confidence in
China's capital market reforms and economic prospects, China
Securities Regulatory Commission Vice-Chairman Li Chao said
at a forum.
The commission announced nine measures to further open the
capital markets in June, and now six of them have taken
effect, Li said£they include relaxing foreign access to fund
custodian services, expanding trials of the H-share full
circulation program to the whole market and giving foreign
capital wider access to mainland-listed futures.
Next, the commission will step up efforts to refine
qualified foreign institutional investors programs to expand
market access and broaden access channels to exchange bond
markets for foreign capital, Li said.
"Not only is China now more open to investment, it is also
the source of new business opportunities£driven particularly
by a growing middle class and domestic consumption," said a
recent BlackRock report, which found that China represents
"an opportunity too big to ignore" for global investors.
"China has many world-class investment opportunities. In
many cases we don't need to look abroad for shares with
high-growth potential because we can reach them
domestically," said Iris Pang, China director and economist
of ING, a Netherlands-based global financial institution.
Pang told China Daily she was especially upbeat about listed
firms that could contribute to or benefit from China's
development of 5G, which is set to be a major growth driver
in 2020, while calling for reform measures to align the
domestic bond rating system with global standards.
Capital market reform efforts will focus on making the
markets more inclusive to different firms and furthering
market-oriented improvement in fundamental institutions,
said Li from CSRC.(Nov.25,2019)
willing to uphold free trade, boost global growth
Premier Li Keqiang said on Nov 20 that China is willing
to deepen mutually beneficial cooperation with partners
across the world, safeguard the free trade system, and
inject impetus into global economic growth.
Premier Li made the remarks when meeting with World Bank
President David Malpass at the Great Hall of the People in
Beijing, noting that the world economy is facing mounting
The Chinese economy has been deeply integrated into the
world, the Premier said. "We are deepening reform, expanding
opening-up, and accelerating the building of
market-oriented, internationalized business environment
based on the rule of law to further energize market
entities," he added.
China is willing to deepen cooperation with the World Bank
in areas such as environmental protection, biodiversity as
well as poverty reduction and development, he said.
Malpass said the world economy is facing severe challenges
and called on all sides to work together to address them.
He noted that there is huge potential for the development of
the Chinese economy, underscoring China's remarkable
achievements in its opening-up.
The World Bank looks forward to strengthening cooperation
with China, he told Premier Li.
The Premier held a roundtable meeting with leaders of six
major international economic and financial institutions in
Beijing on Nov 21. The six leaders are Malpass,
International Monetary Fund Managing Director Kristalina
Georgieva, World Trade Organization Deputy Director-General
Alan Wolff, International Labor Organization Director
General Guy Ryder, Organization for Economic Cooperation and
Development Secretary General Angel Gurria and Financial
Stability Board Chairman Randal Quarles.(Nov.21,2019)
investment outlook 'optimistic'
China is "optimistic" about meeting the goal of stably
attracting foreign investment in the mainland through the
year, as the January-October figures were sound, the
Ministry of Commerce said.
Zong Changqing, director-general at the ministry's
department of foreign investment administration, said it is
expected that FDI flowing to the Chinese mainland will
remain stable for the whole year.
So far this year, FDI has been growing steadily, with more
big-ticket projects in high-end sectors, Zong said at a news
conference on Monday.
The ministry's data showed FDI into the Chinese mainland
amounted to 752.41 billion yuan ($107.28 billion) in the
first 10 months, up 6.6 percent year-on-year.
A total of 33,407 new foreign-funded enterprises were
established in the market between January and October, the
data showed. In October alone, FDI climbed 7.4 percent
year-on-year to 69.2 billion yuan, according to the data.
"This year, there have been more than 1,300 foreign-funded
projects, with investment of more than $50 million. The
number has increased by 5.4 percent, compared with the same
period last year," Zong said. "In the meantime, the
structure of FDI has been optimized."
In January, German chemical giant BASF signed a framework
agreement with Guangdong provincial government to further
clarify the planning details for its $10 billion Verbund
chemical complex. The site would ultimately be the
third-largest BASF site worldwide.
Also in January, Tesla Inc's Shanghai gigafactory, the
largest foreign-invested manufacturing project in the city,
broke ground. It has started trial production ahead of
China has rolled out a series of measures to stabilize
foreign capital, such as renewing the negative lists,
promoting the Foreign Investment Law and establishing new
pilot free trade zones.
Early this month, the State Council issued a guideline on
better using foreign investment, with a focus on
safeguarding the national treatment of foreign-funded
Ye Wei, deputy director-general of the department, said the
commerce ministry has been working with relevant departments
to work out supporting regulations for the Foreign
Investment Law, which will come into force in January. The
draft of the law is available online for public comment, and
judicial interpretation is also being formulated, he said.
The ministry has also been training local offices in
understanding the significance of the law, so as to provide
a foundation for its implementation, he said.
In October, MAXAM, a provider of energetic materials and
blasting solutions, opened its first plant in Shandong
province. Jose Fernando Sanchez-Junco Mans, company chairman
and CEO, said China's economy is now on its strategic
transformation trajectory to sustainable and high-quality
growth, which provides tremendous business opportunities for
unveils experiment for landing on Mars
China on Nov 14 unveiled an experiment simulating the process of a
probe hovering, avoiding obstacles and descending to land on
The experiment was held on a trial ground, the largest one
in Asia for test landing on extraterrestrial bodies, in
Huailai county, North China's Hebei province.
China plans to launch the Mars probe in 2020, aiming to
complete orbiting, landing and roving in one mission, an
unprecedented achievement, according to the China National
How to safely land on Mars is one of the biggest challenges
facing the mission.
The experiment simulated the gravity of Mars, about
one-third of the gravity on Earth, to test the design of the
Ambassadors and diplomats from 19 countries including
France, Italy and Brazil, as well as representatives from
the European Union, the African Union and the Asia-Pacific
Space Cooperation Organization were invited to visit the
Zhang Kejian, administrator of the CNSA, said since the
official kick-off in 2016, China's Mars exploration program
has progressed well. The hovering and obstacle avoidance
test for the Mars lander is a crucial step of the project.
Zhang said China has been actively promoting international
cooperation in space exploration. To date, China has signed
over 140 space cooperation protocols with 45 countries and
China has collaborated with France, Italy and Brazil in
developing satellites for ocean, earth resources and
astronomical observation and the study of seismic
precursors, Zhang said.
China's Chang'e-4 mission embodies China's hope to combine
wisdom in space exploration with four payloads developed by
the Netherlands, Germany, Sweden and Saudi Arabia.
In April, the CNSA announced opportunities for cooperation
with Chang'e-6 and asteroid exploration missions.
Earlier this month, China announced it would make the
16-meter optical data obtained by the Gaofen-1 and Gaofen-6
satellites available to global users.
"All these measures have enabled more countries, especially
developing countries to enjoy the benefits brought by space
technology and to advance social-economic development,"
technology expected to launch around 2030
While most people haven't even got their hands on a 5G
smartphone yet, countries around the world are already
preparing to compete in the field of 6G.
This echoes what Wu Hequan, academician of the Chinese
Academy of Engineering (CAE), has said ¡ª that human beings
will endlessly pursue industry and technologies.
Recently, a launching ceremony for 6G technology was jointly
held by relevant departments in China, where a work team and
an expert R&D team were established.
However, Wang Xi, vice-minister of Science and Technology,
noted that 6G research is still at an early stage, and no
clear direction has been set technologically. There¡¯s no
unified definition of key indexes and application scenarios,
At present, 5G has been applied to commercial use, and the
next generation of telecommunication technology is expected
to emerge around 2030.
Yi Zhiling, a chief scientist of the China Mobile Research
Institute, said that the updating of telecommunication
technologies is not decided by only technology. ¡°We don¡¯t
know when 6G will be applied, but the time needed would be
shorter than before,¡± Yi added.
According to the world¡¯s first white paper on the
next-generation telecommunication technology, Key Drivers
and Research Challenges for 6G Ubiquitous Wireless
Intelligence, apart from the obvious improvement in
transmission capabilities, 6G will realize seamless
connection among ground, satellite and airborne networks.
When 6G integrates the digital and physical world, many of
today¡¯s fantasies will become a reality.
Most of the 6G performance indexes will outnumber those of
5G by 10 to 100 times, and its maximum transmission speed
could hit 1Tbps, meaning a high-definition movie can be
downloaded within a second.
¡°More things will become endogenously smart,¡± Yi said. She
explained that the one application of 5G is to connect
physical matters with non-intelligent nodes, but in the
future, even parts of ourselves will be virtualized, which
will open up a whole new world.
Industrial research has planned many potential application
scenarios of 6G, one being extended reality (XR), which is
combined with virtual reality (VR), augmented reality (AR),
and mixed reality (MR).
It is expected to create virtual objects in physical
reality, objects which are changeable at will. Therefore, it
enables people at different geographic locations to feel
like they were actually in the same space, with a seamless
connection between devices and senses.
Now, the US, China, Japan, South Korea and Finland have all
started research on 6G, and scientists are trying to find a
clear path of development for the technology.
Wang Xiaofei, a professor from the School of Computer
Science and Technology of China¡¯s Tianjin University,
believes that countries need to team up for this research as
core technologies require a huge investment. Besides, 6G
research must be elevated to the level of national
strategies, he added.(Nov.11,2019)
support for WTO reforms 'very important'
China's show of support for reforms to the World Trade
Organization (WTO) during the ministerial meeting on the
sidelines of the China International Import Expo (CIIE) on
Nov 5 will be pivotal in helping kickstart the process,
according to Keith Rockwell, director of the information and
external relations division of the WTO.
"Reform means different things to different members. For
some it means implementing the Doha Development Round. To
others it means addressing the way in which national
security exemptions are being implemented. There is a whole
range of things and discussions are underway for each of
these aspects," said Rockwell.
"The push to do so provided by the Chinese government this
week has been very important in getting the reform effort up
Though he acknowledged the need for reforms, Rockwell said
he is confident that the WTO will always be relevant and
necessary to world trade.
"The starting point for every regional trade agreement is
the WTO. The multilateral trading system is the foundation
on which the global economy rests. Issues like dispute
settlement, rules for e-commerce, agriculture, fishery
subsidies£where else are you going to negotiate these
things?" he said.
He noted that while unilateral actions taken by various
countries in the past few years have been "a source of
serious concern", these measures and their ramifications
have also proven that the WTO's multilateral function is
integral to the stability of the world economy. He referred
to the International Monetary Fund's report last month which
spelled out that the ongoing trade friction between China
and the US will cause global growth this year to drop to its
slowest pace since the 2008-09 financial crisis.
Rockwell, who is attending the CIIE for the second time,
said that the expo can be seen as an example of how a
country can prosper through trade.
"China has been an example of how, when a country follows
the right policies and pursues matters in a certain way,
gains from trade can be quite phenomenal. To lift 800
million people out of poverty is an unprecedented
achievement in development," he said.
Rockwell also applauded the expo for lending a helping hand
to businesses from lesser developed nations.
He said that inviting 40 least developed countries to the
expo has allowed entrepreneurs from nations such as Nepal,
Afghanistan, Cambodia to meet potential customers from all
over the world, something that might not have been possible
without the CIIE.
"China once benefited from the wisdom of other countries as
it was developing and now it's sharing its wisdom with
people from the poorer countries. I think that's very
impressive," he said.(Nov.8,2019)
service trade maintains steady growth
China's service trade totaled 4.02 trillion yuan (about $571 billion)
in the first three quarters of this year, up 3 percent
year-on-year, the Ministry of Commerce (MOC) said on Nov 4.
Service exports increased by 9.4 percent year-on-year to
1.42 trillion yuan, while imports came in at 2.6 trillion
yuan, down 0.2 percent from a year ago, said the MOC.
The service trade deficit went down 9.8 percent to 1.18
trillion yuan in the period.
The MOC data also showed China's trade of
knowledge-intensive services maintained rapid expansion,
increasing by 11 percent year-on-year to 1.37 trillion yuan.
Exports of knowledge-intensive services grew by 13.7 percent
to 717.72 billion yuan, while imports grew by 8.2 percent to
652.5 billion yuan.
In contrast to merchandise trade, trade in services refers
to the sale and delivery of intangible products such as
transportation, tourism, telecommunications, construction,
advertising, computing and accounting.
China has taken steps to improve the development of trade in
services, including gradually opening-up the finance,
education, culture and medical treatment sectors.(Nov.4,2019)
to further open seafood sector
China will continue to open its fast-growing seafood
sector to the world and support free trade in the industry,
an official said on Oct 30.
"China firmly upholds opening-up and will create
opportunities for win-win cooperation in seafood trade for
all countries," said Vice-Minister of Agriculture and Rural
Affairs Yu Kangzhen on the sidelines of the China Fisheries
and Seafood Expo (CFSE), which opened on Oct 30 in the
eastern coastal city of Qingdao, Shandong province.
The country will continue to expand cooperation in fishery
and seafood sectors with other countries, sharing its
strength in technology, talents and capital, Yu said.
China has been increasing seafood imports as consumer demand
grows. In 2018, the country imported about 5.2 million tons
of seafood, rising nearly 7 percent year-on-year.
In the first eight months of this year, the country's
seafood imports surged more than 24 percent year-on-year in
terms of value, Yu noted.
"The increase indicated rapid growth in demand for
high-quality seafood," Yu said. "On the other hand, it shows
China's commitment to the multilateral trade system and firm
stance toward free trade."
Founded in 1996, the CFSE is held annually and is one of the
world's largest fishery expos. The expo this year attracted
about 1,600 exhibiting enterprises from 53 countries and
regions around the world.(Otc.30,2019)
iron and steel industry sees rising revenue
China's iron and steel industry reported business
revenue growth of 8.9 percent year-on-year in the first
eight months, official data showed.
Business revenue hit 5.58 trillion yuan (about $788.7
billion) in the first eight months, according to a statement
by the Ministry of Industry and Information Technology.
From January to September, the output of cast iron reached
612 million tons, up 6.3 percent year-on-year and that of
crude steel grew 8.4 percent from one year earlier to 748
During the period, rolled steel output in the country
climbed 10.6 percent year-on-year to 909 million tons.
Steel exports fell 5 percent to about 50.3 million tons,
whereas imports saw a decrease of 12.2 percent to hit 8.75
million tons in the first three quarters.(Otc.28,2019)
on path of stability
China's economy is expected to stabilize in the fourth
quarter, as positive factors will drive a rebound for the
economy, said experts and officials.
Wei Jianguo, vice-president of the China Center for
International Economic Exchanges, said the economy is
running steadily with a slower growth trend.
"It is unlikely we will see GDP moderate to lower than 6
percent growth, as we will see a spike in consumption in the
fourth quarter," Wei said at a forum held by China News
Service. "It is expected we will see 6.2 percent growth in
GDP in the fourth quarter."
Considering a number of favorable conditions, China is set
to meet the full-year target and the economy will recover in
the next year, Wei added.
In the first three quarters, the number of newly employed
people in urban areas totaled 10.97 million, which was 99.7
percent of the full-year target.
"China's employment situation is holding steady, better than
other major economies," he said. Wei told the media that the
current employment situation will lay a solid foundation for
stable and healthy economic development next year.
China's economic prospects will remain solid next year, with
its ongoing efforts in deepening reform and opening-up as
well as economic and trade cooperation with foreign
countries, Wei added.
Wei's comments came as China's GDP slowed to 6 percent in
the third quarter, the weakest pace in almost three decades,
official data showed. In the first quarter, GDP rose by 6.4
Ning Jizhe, vice-chairman of the National Development and
Reform Commission and head of the National Bureau of
Statistics, said the Chinese economy remained remarkable in
the third quarter when compared with others, with the
fastest growth rate among major economies worldwide.
"China is now transitioning from the high-speed growth
pattern to a stage of high quality development, paying more
attention to creating jobs, increasing people's incomes and
protecting the ecology and the environment, "Ning told media
on Oct 23 at a State Council Information Office news
conference in Beijing.
Notably, China's value-added industrial output in September
jumped 5.8 percent year-on-year, 1.4 percentage points
higher than that in August.
Zhu Jianfang, chief economist with CITIC Securities,
believes China is able to meet the full-year goal of growth
in a range of 6 percent to 6.5 percent this year.
"The government's previous positive measures are taking
effect, and it is possible to see the economy stabilize in
the fourth quarter with 6 percent growth," Zhu said at a
recent monthly conference of China Macroeconomy Forum in
Brian Householder, CEO of data specialist vendor Hitachi
Vantara, a wholly owned subsidiary of Hitachi, said he saw
the big potential in the Chinese market amid sluggish global
growth. "The downward pressure is increasing, and we all see
the difficult market circumstances not just in China but
Householder noted an increasing number of Chinese companies
are actively embracing digital transformation, which will be
a big push for the new data economy and the most resilient
part of the Chinese economy.
"We see great opportunities in the Chinese market,"
Householder added. "Seeing the growing trend in digital
market, we will continue to invest in and develop the
business in the China market."(Otc.25,2019)
enterprises invest nearly 14b yuan for poverty alleviation
Over 88,000 private enterprises in China have
contributed more than 13.9 billion yuan ($1.99 billion) of
social investment towards targeted poverty reduction and
The figures were announced on Oct 14 in Beijing at a forum
on the nationwide targeted poverty alleviation action.
By the end of June, these companies have also created
661,500 jobs and had 941,000 people trained through
investing more than 75.4 billion yuan in industrial sectors,
according to the forum.
Since October 2015, China's private companies have been
encouraged to join in poverty alleviation efforts through
assisting poor villages and households.(Otc.15,2019)
on global Chinese language media held in N China
The Tenth Forum on the Global Chinese Language Media
opened on Oct 12 in the city of Shijiazhuang, northern
China's Hebei province.
The forum, co-sponsored by the Overseas Chinese Affairs
Office of the State Council, the People's Government of
Hebei province and China News Service, focused on Chinese
language media and China's stories.
Addressing the opening ceremony, Shen Yueyue,
vice-chairwoman of the National People's Congress Standing
Committee, encouraged Chinese language media to tell China's
stories well, so as to enhance connection, communication and
cooperation between China and the world.
More than 600 guests attended the opening ceremony,
including executives of over 400 Chinese language media
organizations from around the world, as well as heads of
China's major news outlets and influential media
leads emerging economies in latest global competitiveness
China is by far the best performer among the five BRICS
economies in terms of competitiveness, said the World
Economic Forum (WEF) on Oct 9 in the latest annual report
assessing the productivity and long-term growth of 141
China ranks 28th among the world economies, 15 places ahead
of the Russia, 32 places ahead of South Africa and some 40
places ahead of both India and Brazil, showed the 2019
Global Competitiveness Report by the WEF.
China's position in the ranking was unchanged from last
year, but its overall score increased by 1.3 points, the
The report measured an economy's performance through 103
indicators in 12 "pillars", showing that China has obvious
strengths in various areas such as the sheer size of its
market, macroeconomic stability, the Information
Communication and Technology (ICT) adoption, and increasing
In the ICT Adoption, China outperformed 25 of the 36 member
countries of the Organization for Economic Co-operation and
Development (OECD). As to the healthy life expectancy, China
scores better than the United States and slightly under the
With a score of 84.8, Singapore took the crown of the
world's most competitive economy this year from the United
The IMF lowered the US competitiveness to the second place
partly due to the country's trade uncertainty, as its trade
openness is more than four points lower than that in 2018,
according to the report.
China's Hong Kong Special Administrative Region, the
Netherlands and Switzerland are among the top five, followed
by Japan, Germany, Sweden, the United Kingdom and Denmark,
the report showed.(Otc.9,2019)
paper published to enhance understanding of China's
China on Sept 27 published a white paper, titled "China and
the World in the New Era," to help the international
community better understand China's development, on the
occasion of the 70th anniversary of the founding of the
People's Republic of China (PRC).
Issued by the State Council Information Office, the white
paper systematically introduced China's achievement and path
of development, as well as where China is going, according
to Xu Lin, director of the State Council Information Office.
Noting that over the last 70 years the PRC has witnessed
profound changes and achieved a miracle of development
unprecedented in human history under the leadership of the
Communist Party of China (CPC), Xu said that China now has
an impact on the world that is ever more comprehensive,
profound and long-lasting, and the world is paying ever
greater attention to China.
The white paper said that China has completed a course that
took developed countries several hundred years in just a few
China has now become the world's second largest economy,
taken care of the material needs of its nearly 1.4 billion
people and achieved moderate all-around prosperity,
according to the white paper.
The white paper also highlighted that China's development
lies in self-reliance and hard work, the country is
developing through interactions with other parts of the
world and has injected positive energy into world peace and
In the past seven decades, the ultimate reason for China's
success is that China has found and will continue on the
right path ¡ª socialism with Chinese characteristics, under
the leadership of the CPC, it said.
The path is based on China's actual conditions, which
prioritizes the people's interests, said the white paper,
adding that it is a path of reform and innovation, of
seeking common development through opening up and of
"China is the main stabilizing force and power source of the
world economy," read the white paper.
China's all-around opening up has created more opportunities
for all countries to share the benefits of China's
development, the country is providing more public goods to
the international community as well as experience and
reference for other developing countries, and China will
never seek hegemony, it said.
As the world is undergoing the greatest changes in a
century, the white paper called for building a community
with a shared future for humanity, which offers a new option
to the international community.
All countries should join forces to build a new model of
international relations, promote a new model of economic
globalization, uphold the international system with the
United Nations at its core, and promote exchanges and mutual
learning among civilizations.
"China cannot develop in isolation from the rest of the
world, nor can the world as a whole maintain peace,
development, prosperity and stability without China," the
white paper said.
China continues to place its own development in the
coordinated system of human development, while pursuing
mutually beneficial cooperation and common development,
upholding and advancing economic globalization, developing
global partnerships, supporting multilateralism and
upholding international equity and justice, as well as
taking a lead in reforming and developing the global
governance system, according to the white paper.
"In this new era, China will not waver in its commitment to
forging ahead on the path of socialism with Chinese
characteristics, pursuing mutual learning and mutually
beneficial cooperation, and working together with the rest
of the world," said the white paper.
In the future, China will embrace the world in a more open
and inclusive manner, engage in more interactions with other
countries, and bring more progress and prosperity, it said.
The white paper, which includes preface, main body and
conclusion, is published in eight languages: Chinese,
English, French, Russian, German, Spanish, Arabic and
Japanese, by the People's Publishing House and the Foreign
It is available at Xinhua Bookstore outlets across the
food and catering expo opens
The 2019 China International Food & Catering Expo
opened in the city of Changsha, Central China's Hunan
province on Sept 20.
The expo, held by the Ministry of Commerce and the Hunan
provincial government, will last for three days.
A total of 1,600 enterprises from home and abroad are
attending the expo, presenting over 10,000 kinds of food
such as coffee from Brazil, honey from Australia, wine from
Austria and chili sauce from China in six exhibition halls.
A forum on the development of China's food and beverage
industry will also be held to discuss the future development
trend of the industry.(Sep.20,2019)
internet security industry continues to grow
China's internet security sector has maintained continuous
growth in recent years, said a report released by the China
Academy of Information and Communications Technology (CAICT).
The market scale of the sector went up 19.2 percent
year-on-year to 51.1 billion yuan (about $7.22 billion) in
2018, and is expected to reach 63.1 billion yuan this year,
said the report.
China's environment for the development of internet security
has been constantly optimized, with the number of
enterprises in the sector nearing 2,900, said Wang Zhiqin,
deputy director of the CAICT.
In the meantime, security products and service systems for
the industrial internet have been initially established, and
the research and development of 5G network security is
underway, according to Wang.(Sep.18,2019)
retail sales up 7.5% in August
China's retail sales of consumer goods rose 7.5 percent
year-on-year in August to 3.39 trillion yuan ($479.78
billion), the National Bureau of Statistics said on Sept 16.
The pace was 0.1 percentage points lower than the previous
Sales of consumer goods, excluding automobiles, rose 9.3
percent year-on-year in August to 3.08 trillion yuan. The
pace was 0.5 percentage points higher than the previous
Retail sales in urban areas surged 7.2 percent to 2.91
trillion yuan. Rural retail sales climbed 8.9 percent to
476.2 billion yuan.
In the first eight months, retail sales of consumer goods
climbed 8.2 percent year-on-year to 26.22 trillion yuan. The
pace was 0.1 percentage points lower than that in the first
Online sales surged 16.8 percent year-on-year to 6.44
trillion yuan in the first eight months, and the growth rate
was similar to that in the first seven months.
Online sales of physical commodities surged 20.8 percent
year-on-year to 5.07 trillion yuan, accounting for 19.4
percent of the total volume of consumer goods sales. The
ratio was 2.1 percentage points higher than the same period
to speed up creation of world-class energy interconnection
The State Grid Corporation of China (SGCC) will
accelerate the creation of a world-class energy
interconnection enterprise, said Liu Guoyue, the SGCC deputy
In his speech at the two-day 2019 Global Grid Forum, which
kicked off in Vancouver on Sept 10, Liu introduced the SGCC
practice in the construction of ultra-high-voltage (UHV)
projects in recent years.
The forum, which is jointly held by the Canadian Electricity
Association, the Edison Electric Institute of the United
States and the Global Energy Interconnection Development and
Cooperation Organization (GEIDCO), centers on global power
grid development, innovation and investment in the new
century. It seeks to shed light on some core issues
including the development of renewable energy and
transmission, multinational power interconnection, power
grid planning, and technological innovation.
Liu said the SGCC has developed technologies of
long-distance and large-capacity power transmission.
It has built a total number of 19 UHV projects. Eight are
alternating current projects and the rest direct current
projects, known as "8 AC 11 DC," with an inter-regional and
inter-provincial power transmission capacity of 210 GW and a
total grid-connected installed capacity of 1,470 GW, among
which renewable energies including hydro, wind and solar
power account for 36 percent.
Liu told Xinhua that the power system will continue to
develop toward highly clean power sources and extensively
interconnected power grids, which is determined by the
transition to clean and low-carbon energy. In the future, a
power transmission and distribution network with stronger
resource allocation capabilities, intelligent interaction
capabilities, and security capabilities needs to be built at
a faster pace. The SGCC will accelerate the creation of a
world-class energy interconnection enterprise featuring
"three characteristics and two networks."
"Three characteristics" means it serves as a hub and a
platform offering shared benefits. "Two networks" means to
promote the construction of a strong smart grid and a
ubiquitous power Internet of Things in a coordinated manner.
Meanwhile, Bi Yaxiong, vice-president of China Southern
Power Grid Corporation, who also attended the forum, said
that to date, over 50 percent of the installed capacity and
power generation from service areas of China Southern Power
Grid are from non-fossil fuel resources.
His company has extracted more than 80 percent of its
hydropower resources from the west region while about 60
percent of the electricity load and electricity consumption
are concentrated in the east.
"That's why 18 trans-provincial and trans-regional power
transmission channels of 500 KV and above have been built by
China Southern Power Grid so that clean energy in the west
could be continuously delivered to load centers thousands of
miles away in the east," he said.
At the forum, the GEIDCO has called on all parties to make
concerted efforts toward new prospects for global energy and
power development by innovating in four aspects, namely the
development concept, technical equipment, business model and
China sees growing new yuan loans for real economy
China saw growing financing support for the real
economy, with yuan loans to the field rising at a faster
pace in the first seven months of this year.
Outstanding loans supporting real economic activities
increased 10.8 trillion yuan (about $1.5 trillion) in the
period, up around 780 billion yuan from the increase during
the same period of 2018, according to the China Banking and
Insurance Regulatory Commission.
Infrastructure, one of the focuses of financing support, saw
outstanding loans rise 1.7 trillion yuan. High-tech sector,
manufacturing upgrades and social services were also major
Inclusive loans to small and micro firms rose 26.5 percent
in the period, while their overall financing costs dropped
by more than one percentage point.
China has been stepping up efforts to improve financing
efficiency for the real economy, with targeted measures to
expand financing channels and reduce financing costs for
small and micro firms.
hybrid rice benefits the world
With high yield and superior quality, Chinese hybrid
rice varieties have been introduced around the world,
benefiting more people.
Hybrid rice started to go abroad in 1979. Back then, the
Ministry of Agriculture presented 1.5 kg of hybrid rice
seeds to the Occidental Petroleum Corporation, an American
oil and gas exploration and production company. The yield of
the hybrid rice was over 33 percent more than that of local
Since then, China has continued to work with the US on
hybrid rice research. This year, hybrid rice accounted for
60 percent of the total rice area in America, said Yuan
Longping, a pioneer in hybrid rice research who has been
invited to the US several times to share the hybrid breeding
The technology has since spread to more countries. The
hybrid rice research center in Central China¡¯s Hunan
province and a local agriculture company have jointly held
nearly 100 international workshops on hybrid rice technology
and trained over 10,000 technicians from around 80
developing countries in Asia, Africa and Latin America.
Yuan said that to date, the overseas planting area of hybrid
rice has exceeded 7 million hectares, with India owning the
largest area of more than 2 million hectares.
Hybrid rice is produced by crossbreeding different varieties
of rice. The average yield of hybrid rice is at least 20
percent more than that of regular rice, feeding 70 million
more Chinese people annually, Yuan said.
pushes for forest tourism
Amid China's ecological protection efforts, the government
is pushing for realizing the economic value of lucid waters
and lush mountains through tourism development and poverty
More than 300 experts, scholars and officials of forest
parks and scenic spots attended a symposium on "poverty
alleviation through developing forest parks and forest
tourism" in the city of Guyuan, Northwest China's Ningxia
Hui autonomous region, on Aug 20.
Speaking at the symposium, Lan Siren, president of the
Forest Park and Forest Tourism Branch of the China Forestry
Association, said most of the poverty-stricken areas in
China are located in mountainous and forest areas, and
poverty alleviation through forest tourism has unique
geographical and industrial advantages.
According to the latest data from the State Forestry and
Grass Administration available at the symposium, there are
898 national forest parks in China, covering an area of
14.66 million hectares, which together draw 1.6 billion
visitors annually, accounting for 28.9 percent of the total
number of domestic tourists.
Forest tourism has created a comprehensive social output
value of 1.5 trillion yuan ($212 billion), accounting for
29.2 percent of the country's domestic tourism income.
The figures also showed that there are 1.1 million
impoverished individuals living in the forest areas. The
local authorities are making efforts to increase their
income by developing forest tourism, which contributes an
average annual income of 3,500 yuan per household.
The symposium was held in Guyuan to showcase the city's
forest tourism development achievements.
Located in the southern mountainous region of Ningxia,
Guyuan was considered "unsuitable for human survival" by the
United Nations Food and Development Program in 1972, because
of its fragile ecology and persistent droughts.
After decades of ecological rehabilitation efforts, coupled
with grazing bans, it now boasts a total area of forestry
land of 4.22 million mu (281,333 hectares) with a 73 percent
coverage rate of forest and grass.
Pengyang county in Guyuan received 300,000 visitors during
its Mountain Flower Festival in April. Through developing
tourism, the county officially lifted its cap on poverty at
the end of April.
Lan Siren warned that the development of domestic forest
tourism is still at its initial state with problems of
low-level infrastructure and a lack of forest tourism
products. After tackling the hard nut of poverty
alleviation, local authorities should consider the promotion
of eco-tourism, he said.(Aug.21,2019)
center efforts gaining speed in China
China has taken the lead over global peers in data
center construction, with more enterprises looking to scale
up their data centers to ensure reliability and stability of
data services, as the application of 5G, the internet of
things, wearable devices and artificial intelligence spurs a
burgeoning demand for computing power, experts said.
The total market size of China's booming data center
industry stood at 122.8 billion yuan ($17.8 billion) last
year, up 29.8 percent year-on-year, and the size is expected
to reach 200 billion yuan by 2020, according to a report
released by idcquan.com, a Beijing-based industry
information provider and consultancy.
"With the rapid development of 5G, the internet of things,
artificial intelligence, virtual reality and the commercial
application of these new cutting-edge technologies, the
demand for data processing and information interaction is
increasing, which will speed up the construction of data
centers and lead to explosive growth of the industry," said
Wang Ruobing, a senior analyst with idcquan.com.
Wang said he remains bullish on prospects for the data
center sector, with the market size reaching 190 billion
yuan by 2019. "Internet companies have made the biggest
contribution to the sector, followed by traditional
financial industry, governments, manufacturing industry and
energy industry," Wang said.
In addition, China is boosting its computing power and has
become the world's leader in terms of supercomputer volume.
The nation continues to dominate the list of the world's
fastest supercomputers by the number of computer units,
according to a semiannual ranking of the Top 500 list.
China topped the supercomputer list with 219 systems, or
43.8 percent of the total, followed by the US with 116
systems and Japan with 29, followed by France, Britain and
Germany, according to the ranking.
Major Chinese supercomputer vendors all improved their share
in the past six months. Lenovo has the greatest number of
systems on the list£173£followed by Inspur with 71£and Sugon
The Top 500 list is considered one of the most authoritative
rankings of the world's supercomputers. It is compiled on
the basis of machine performance on the Linpack benchmark by
experts from the United States and Germany.
China's leading supercomputer manufacturer Dawning
Information Industry Co Ltd, also known as Sugon, is beefing
up efforts to build a national-level advanced computing
innovation center in Tianjin, considering the burgeoning
demand for computing power. The center is set to be
completed in 2021.
Cao Zhennan, vice-president of Sugon, said the company
focuses on building data centers across the nation,
including Jiangsu, Shanxi and Gansu provinces, and promotes
the layout of industries related to the advanced computing,
in a bid to boost the development of industrial internet,
intelligent manufacturing, intelligent city and artificial
"We will promote the integration of advanced computing with
industry applications," said Cao. He also noted that green
computing, which means the environmentally responsible and
eco-friendly use of computers and their resources, has
become a trend for the construction of IT infrastructure,
adding the company has invested a lot in saving energy,
improving computing efficiency and integrating advanced
Sugon is one of China's earliest and largest
high-performance computing vendors. Moreover, it is
dedicated to developing servers, storage, urban and
industrial cloud computing, and big data businesses, and
promoting the building of cloud data service networks
covering hundreds of cities and sectors.
He Baohong, the cloud computing and big data research
institute under the China Academy of Information and
Communications Technology, said both data centers and
computers provide computing resources and services for
users, adding the data centers will become more and more
open and standardized in the future.
Tech giants like Apple Inc, Tencent Holdings Ltd and Huawei
Technologies Co are stepping up efforts to build data
centers in Southwest China's Guizhou province due to its
mild climate and ample power resources.
Last year, a data center belonging to Tencent began trial
operations in Guizhou. The core data center facilities have
been deployed inside tunneled caves drilled inside a hill of
about 100 meters high in the Guian New Area.
Pony Ma, chairman and CEO of Tencent, said the Qixing data
center will store the company's most important data in the
future. The new mega data center will include more than
30,000 square meters of tunneled caves, while the total data
center area covers about 513,000 square meters.
With an investment of $1 billion, Apple's data center, which
will cover 67 hectares in Guian New Area, will offer iCloud
services on the Chinese mainland. Starting Feb 28, 2018,
iCloud services on the Chinese mainland are being operated
by a local partner, Guizhou-Cloud Big Data Industry Co Ltd.(Aug.9,2019)
boosts financing for small firms
China's central bank has lifted its re-lending quota by
50 billion yuan ($7.25 billion) to boost financial support
for small and private businesses and support economic
The move came after China's top leadership vowed to
encourage financial institutions to increase medium-and
long-term financing to manufacturing companies and private
firms at a key meeting held on July 30.
The re-lending quota will be granted to five types of local
financial institutions£city commercial banks, rural
commercial banks, rural cooperative banks, village banks and
private banks, the People's Bank of China said in a
statement on July 31.
The decision was seen by analysts as a direct response to
the central leadership's order to solve the persisting
problems of credit shortage and high financing costs for
small and private businesses.
Since the beginning of this year, the central bank has
enhanced financial support for small businesses, with
outstanding re-lending loans reaching 226.7 billion yuan by
the end of June. After the increase, the country's
re-lending quota supporting small firms amounted to 369.5
Re-lending is a monetary tool used by the central bank to
increase financial institutions' liquidity and guide credit
A meeting of the central bank on July 31 also urged lenders
to improve their credit structure and asked them to
"reasonably control" credit allocation to the property
sector and boost financial support to micro companies,
advanced manufacturers and high-tech firms.
Cao Chao, an analyst at Huatai Futures Co Ltd, said that the
increased re-lending quota will make banks' credit provision
"more targeted" and will help reduce smaller businesses'
A survey of more than 500 small-and medium-sized enterprises
nationwide in China by Standard Chartered showed that
business sentiment softened in July and their investment
appetite weakened due to falling profits and rising
uncertainties amid a slowing economy.
However, credit conditions for small businesses improved,
driven mainly by better bank credit access for SMEs, the
"The reading for banks' willingness to lend to SMEs rose to
60.4 in July, reversing the downward trend in the second
quarter. This suggests that commercial banks likely enhanced
credit support to SMEs again, after the surge in the first
quarter," it said.
Despite the improved credit conditions, borrowing costs for
SMEs remain elevated and their cash flow is still under
pressure, pressing for moves to lower real lending rates for
SMEs, the survey said.
The official purchasing managers' index for China's
manufacturing sector also showed a divergence in the
activities of big companies and smaller ones in July. The
reading for large companies rose to 50.7 while the index for
activities of SMEs dropped.
"The indicators of the performance of smaller companies were
more volatile than that of the large companies, meaning that
there are still a lot uncertainties in the operating
environment for smaller firms and there is still a lack of
business confidence. Future policies should continue to
offer more support to them," Wu Chaoming, vice-president of
the Institute of Caixin International Economics Co Ltd, said
in a research note.(Aug.2,2019)
manufacturing PMI sees uptick in July
The purchasing managers' index (PMI) for China's
manufacturing sector grew to 49.7 in July, up from 49.4 in
June, the National Bureau of Statistics (NBS) said on July
A reading above 50 indicates expansion, while a reading
below reflects contraction.
That was the first month-on-month PMI growth in four months,
said NBS senior statistician Zhao Qinghe.
The sub-index for production gained 0.8 points to 52.1 in
July, signaling faster expansion, while that for new orders
rebounded by 0.2 points to 49.8.
Among the 21 industries surveyed, 12 were in the expansion
zone, up from 9 in June, Zhao said when elaborating on the
Market sentiment warmed up as the sub-reading for business
expectation rose to 53.6 in July, he said.
The policies of cutting taxes and fees and targeted reserve
requirement ratio reduction have further eased the burden on
enterprises and stabilized their confidence, Zhao said.
The PMI of large enterprises was higher than those of small
and medium ones, which saw up to 0.4 points of
A meeting held on July 30 by the Political Bureau of the
Communist Party of China Central Committee decided the cuts
would be further implemented amid holistic efforts to
maintain stable growth.
The financial supply-side structural reform will be advanced
and financial institutions should be encouraged to increase
medium- and long-term financing to the manufacturing
industry and private companies.
Targeted measures will be taken to support the development
of private enterprises, according to a statement released
after the meeting.
The data on July 31 also showed the China's composite PMI
went up 0.1 points to 53.1, which pointed to steady business
leads in Fortune Global 500 list of firms
The latest Fortune Global 500 list reveals more than
that Chinese firms outnumber counterparts from the United
States, but also demonstrates how China¡¯s private sector is
reshaping the global business landscape, experts said.
Chinese companies accounted for 129 of the world¡¯s 500
largest corporations by revenue, according to the list
published on July 22, exceeding the US, at 121, for the
first time since the rankings began in 1990.
China was also the top performer in terms of newcomers and
companies with the largest leaps in rankings. Most Chinese
enterprises on last year¡¯s list had higher rankings this
¡°China¡¯s performance indicates that the torrents of merger
and acquisition activities aiming to forge globally
influential conglomerates are starting to pay off,¡± said
Jiang Qingyun, a business professor at Fudan University¡¯s
School of Management. ¡°It¡¯s a natural reflection of the
country¡¯s overall economic status.¡±
Of the 25 companies that made their debut or reentered the
list, 13 were from China. They included State policy lender
China Development Bank, the world¡¯s largest rolling stock
manufacturer CRRC and mobile phone maker Xiaomi.
China led in the number of metal, construction, automotive
and real estate companies. However, healthcare and medical
companies in the US outnumbered Chinese counterparts on the
¡°On the plus side, China is shaping up to have a number of
major enterprises in select industries,¡± Jiang said.
¡°Meanwhile, the temporary lack of consumer-sector businesses
from China on the list indicates that the vast domestic
market has yet to be fully tapped and there is plenty of
room for growth.¡±
Chinese technological powerhouses are making strides. Huawei
moved up to 61 from 72 last year. Among the 10 companies
registering the biggest jumps, six came from China,
including tech titans Alibaba Group which was up 118 spots
to 182, as well as Tencent, which moved up 94 places to 237.
¡°The fostering of Chinese companies in the digital area,
such as providing better financing channels like the STAR
Market, is bound to catapult them to the forefront of
driving the next wave of economic growth,¡± said Zhuo Fumin,
chairman of Vstar Capital.
The 12th Global Innovation Index, soon to be published by
researchers from INSEAD, Cornell University and the World
Intellectual Property Organization, depicts China¡¯s
continued progress as a global innovator.
Bruno Lanvin, executive director for Global Indices at
INSEAD, said China broke into the top 20 of the index last
year and the country continued to make progress in the area
of quality innovation where it remains a strong leader among
The combined revenue of Chinese companies accounted for 25.6
percent of the Fortune Global 500 list¡¯s total, behind the
US at 28.8 percent.
The average profit of the 119 Chinese companies£not
including those based in Taiwan£on this year¡¯s list stood at
$3.5 billion, lower than the list¡¯s average of $4.3 billion.
But it also improved from $3.1 billion for the 111 Chinese
companies on last year¡¯s list.
¡°That is a fact to be expected. Chinese companies are
relatively smaller in profitability but they are growing at
a much faster pace,¡± Jiang said.(July24,2019)
economic journey wins international plaudits
China is giving more weight to its quality of growth
according to a recent article published by the UN Economic
and Social Commission for Asia and the Pacific.
The country¡¯s policies and measures focusing on technology,
innovation and sustainable development can provide an
example for other developing countries, the article read.
Despite the sluggish global economy, China has made
remarkable achievements in innovation and a switch toward
high-quality growth, the article said.
China, the world¡¯s second-largest economy, has managed to
balance economic growth and inclusiveness, innovation and
As China¡¯s structural reform is in full swing, the article
pointed out, ¡°the country could maintain relatively high
rates of economic growth.¡±
Accelerated urbanization, a rising ¡°middle-class¡± population
and increasing government measures to optimize the social
security system could narrow rural and urban income
disparities as well.
In a report released in March this year, ESCAP held China¡¯s
transformation toward an innovative, inclusive and
sustainable economy has ushered in significant chances in
the Asian-Pacific region. It also predicted in the coming 10
years, Asian-Pacific countries will obtain $349 billion in
net benefits from China¡¯s economic development.
Hikaru Nagano, an expert from the Asahi Broadcasting
Corporation, said China has turned from its sole
concentration on growth rate in favor of quality and
Green development is among the more noticeable changes in
China¡¯s economy. The country has pushed forward
international green cooperation and contributed to a greener
earth by establishing the Belt and Road International
Alliance for Green Development and promoting implementation
of the Paris Agreement on climate change.
The article also said China has put in great effort to curb
pollution while speeding up the transition to clean energy.
A carbon emission trading system was launched in the country
in late 2017 in order to reach 20 percent of all energy via
renewables by 2030.
Eiichi Shindo, honorary professor at the University of
Tsukuba in Japan, said China is a new pioneer of advanced
green technology. There is a huge cooperation space for
China and Japan in the application of environmental
protection technology, he added.
Innovation is yet another focus of China¡¯s supply-side
structural reform. If all goes according to plan, by 2030 it
will be a leading player in artificial intelligence and a
global innovative hub.
Thomas Bernes, executive director of Canada¡¯s Centre for
International Governance Innovation, said China, as a
powerhouse of technology and innovation, has actively
promoted cooperation to make the world economy sustainable.
Although any economy will inevitably face downward pressure
when it matures, the quality of growth differs largely
depending on policy choices. Per the article: ¡°It¡¯s highly
important and urgent for policymakers to switch their
mindsets to prioritize policies that support people and the
The successful case of innovative, inclusive and green
development in China should be studied by Thailand and other
Southeast Asian countries, said Tang Zhimin, head of the
China-ASEAN Research Center at the Panyapiwat Institute of
Tang concluded China has set a good example in its
governance ability, infrastructure construction in public
transport and mobile internet, and integration of farmers
and small and medium-sized enterprises with domestic and
Dr. Tharakorn Wusatirakul, deputy head of the China-Thai
Belt and Road cooperation research center at the National
Institute of Development Administration of Thailand, used
the term ¡°center of technology and innovation¡± to describe
China, and noted its transformation has been an inspiration
for countries in Southeast Asia.(July16,2019)
bank unveils plan on digital currency
The central bank is accelerating its efforts to
introduce a government-backed digital currency, aiming at
securing a cutting-edge position in the global
cryptocurrency race, a senior official said on July 8.
The People¡¯s Bank of China, the central bank, is organizing
market-oriented institutions to jointly research and develop
a central bank digital currency and the program has been
approved by the State Council, the country¡¯s Cabinet, Wang
Xin, director of the PBOC Research Bureau, said at a seminar
at Peking University.
The central bank has been watching the emergence of a new
global digital currency called Libra, introduced by Facebook,
the world¡¯s biggest social network company, on June 18.
¡°We will keep a close eye on the new global digital
currency,¡± said Wang, making the latest comment on Libra
from the country¡¯s monetary authority.
Unlike other cryptocurrencies, such as Bitcoin, Libra is
described in a Facebook white paper as a currency ¡°fully
backed by a reserve of real assets¡±. A basket of bank
deposits and short-term government securities will be held
in a Libra reserve to guarantee its value.
Twenty-seven companies and entities have joined the Libra
founder group, including the world¡¯s traditional payment
giants Visa and Mastercard.
Facebook has indicated it intends to establish a worldwide
independent governance body, based in Geneva, aiming to
ultimately include 100 members by the scheduled launch time
¡°From the government¡¯s perspective, we pay more attention to
its influence on financial services, monetary policy and
financial stability,¡± Wang said.
He said that if Libra can be successfully launched, it may
challenge the existing United States dollar-centered
international monetary system, a possibility that must be
Huang Yiping, director of the Digital Finance Research
Center of Peking University and a former member of the PBOC
monetary committee, said the birth of Libra serves as an
¡°alert¡± for China¡¯s digital currency innovators and
Any role for Libra beyond the payment function could bring
changes to the rules of the global monetary system, and
regulators should pay close attention to that possibility,
The world¡¯s economies have yet to decide how to cope with
the challenge by the Libra system, though accelerating the
launch of their own digital currencies could be a
counterbalance, according to Wang of the PBOC.
Wang also said that the central bank digital currency could
be a new monetary policy tool, or an investment asset that
carries an interest rate to satisfy investors¡¯ demand for
value. Wang¡¯s discussion of the matter indicates it might
also be used as a reference for bank interest rates on
¡°A digital currency issued by the central bank can improve
the efficiency of monetary policy, and help to optimize the
payment system,¡± he said.
Some experts suggested launching a Chinese version of Libra,
using Facebook as a reference, to compete in the global
cryptocurrency race, and they said the Chinese digital
currency also could be used domestically. But ¡°everything is
just under discussion¡±, the PBOC¡¯s Wang told China Daily.
Li Zhenhua, executive director of the Ant Financial Research
Institute, part of the Alibaba Group, said the market is
worried about whether Libra will develop into a type of
credit money. If that were to happen, it would challenge
central banks¡¯ monetary sovereignty, Li said. Credit money
is a future monetary claim, like an IOU.
¡°We will improve international coordination and cooperation
in digital finance, and to enhance global communication on
Libra and CBDC. China will push forward the establishment of
unified standards and regulatory rules,¡± said Wang.
The PBOC was one of the earliest central banks to start
digital currency innovation. The program began in 2014, led
by former governor Zhou Xiaochuan.
China¡¯s monetary authority identifies the nature of digital
currency as ¡°a substitute for cash¡±, rather than a
speculative instrument, according to the central bank.
Research work is led by the PBOC¡¯s Currency Gold and Silver
Bureau. The department, primarily in charge of traditional
currency management, is shifting to digital currency
innovation because the use of cash is declining in China
amid booming digital payment systems.
Peking University launched a new program on July 8 called
Open Research Initiative of Digital Finance to provide a
research platform for innovation in digital financial
New Energy Vehicle Congress starts in China¡¯s island
The 2019 World New Energy Vehicle Congress kicked off on July 2 in the
city of Boao, South China¡¯s island province of Hainan, as
industry heavyweights and policy makers gathered to discuss
the future of the booming field.
The congress, which will be concluded on July 3, focuses on
discussions about new energy vehicles (NEVs) market among
leading worldwide vehicle manufacturers.
China is a global leader in manufacturing NEVs with more
than 200 types of new energy cars launched in the first half
of 2019, and the Chinese government has a clear road map to
beef up the industry, said Horbert Diess, chairman of the
Board of Management of Volkswagen AG, at the congress.
¡°Reform and opening-up is a driving force for China¡¯s auto
industry since it enables the industry to go global and
attract world attention,¡± said Fu Yuwu with the China
Society of Automotive Engineers.
First Automotive Works (FAW), one of the leading automakers
in China, said 40 percent of the passenger vehicles produced
by the company will be NEVs by 2025. The ratio is expected
to go up to 60 percent by 2030, according to Xu Liuping,
chairman of the board with FAW Group.
SAIC Motor said it is applying 5G technology to make driving
more intelligent. Chongqing Changan Automobile Co Ltd aims
to mass produce Level-3 auto-driving cars and connect all of
its new products to the internet by 2020.
The ongoing technological revolutions have also propelled
the auto industry into vigorous and prompt actions, said Wan
Gang, president of the China Association for Science and
Wan added that auto retailers around the world should seek
cooperation and innovation and make due contribution to the
industrial upgrading of the auto market.
By the end of 2018, over 5.64 million NEVs have been sold
around the world, and China accounted for 52.8 percent of
city Dalian leads in linking China and Europe under BRI
A container train fully loaded with automobiles and
steel pipes left Dalian Port on June 24 in Dalian, Liaoning
It will arrive in Moscow, Russia, within 14 days. The
traditional waterways would have taken 45 days, said Xia
Ting, a manager with the Dalian Port Container Development
Co Ltd of Liaoning Port Group.
¡°As a port city, Dalian has significant advantages in
opening the China-Europe freight train route,¡± said Xia,
since it costs less and can reach other regions more
Dalian Port has opened 18 routes to European cities since
2013. Last year, the transport capacity of the port reached
28,000 twenty-foot equivalent units (TEUs).
¡°The development of China-Europe freight train at Dalian
Port has effectively promoted the interconnection of railway
facilities between Dalian and countries and regions along
the Belt and Road Initiative, and has led to more investment
and trade,¡± said Qi Yonghong, deputy director of the Dalian
Municipal Development and Reform Commission.
In 2015, the National Development and Reform Commission of
China and the Ministry of Commerce put forward ¡°the Vision
and Action on Jointly Building the Silk Road Economic Belt
and the 21st-Century Maritime Silk Road,¡± which emphasized
the port construction of 15 coastal cities, including Dalian.
Over the past four years, Dalian has continuously improved
the level of foreign exchanges and cooperation and actively
integrated into the Belt and Road Initiative.
Dalian Port has established trade exchanges with more than
300 ports in more than 160 countries and regions around the
world. More than 98.5 percent of foreign trade containers,
all of the commercial vehicles and more than 60 percent of
imported crude oil in Northeast China have been transferred
from Dalian Port, making it the largest port of foreign
trade in the region.
On June 22, the world¡¯s first smart very large crude carrier
(VLCC) with a capacity of 308,000 metric tons was delivered
to its owner in Dalian and left the port for Singapore on
its maiden voyage.
Niu Shuhong, assistant to chief engineer of DSIC, said it is
the sixth-generation VLCC independently developed by Dalian
Shipbuilding Industry Co Ltd, and the 97th VLCC successfully
delivered by the corporation.
DSIC currently has orders for 109 very large crude carriers,
accounting for more than 15 percent of the world VLCC fleet.
Relying on industrial advantages and scientific and
technological innovation, Dalian promotes the transformation
of traditional manufacturing to intelligent manufacturing
and encourages local enterprises to expand international
cooperation, said Jiang Sijin, an official with the Dalian
Municipal Science and Technology Bureau.
The establishment of the Dalian area of the China (Liaoning)
Pilot Free Trade Zone also promotes the city¡¯s engagement in
With innovations in administrative service modes and
mechanisms, the area put forth China¡¯s first regulatory
system on bonded blend ore.
More than 15 million tons of offshore transshipments have
gone to Japan and South Korea.
Zhang Hongguang, deputy director of the administrative
commission of the area, said the bonded blend ore mode was
listed among the experimental methods in the reform of free
trade experimental areas which can be replicated in the
China sees bustling container business as ports get
Containers pile up below automated cranes in the
container terminal of the Port of Qingdao, East China¡¯s
Shandong province, where self-driving container haulers have
replaced old-school trucks.
The smart container lifting system at the fully automated
terminal enables rail mounted gantry cranes to lift
containers without hoisting trucks underneath.
¡°Integrated with AI, 5G and image recognition technologies,
the system has greatly boosted the lifting efficiency. Now,
the average crane capacity of the port is 36.1 containers
per hour, 50 percent higher than the world average level,¡±
said Li Fengli, chairman of Qingdao Port (Group) Co Ltd.
In China, technologies such as big data, AI and 5G are
making the likes of the Port of Qingdao increasingly
automated, thus boosting the container business of the
Blockchain technology can also help. ¡°Based on blockchain,
it becomes possible to obtain real-time information of the
entire shipping process, thus improving the shipping
efficiency,¡± Yin Lin, deputy director of the China Transport
Telecommunication and Information Center under the Ministry
of Transport, told China¡¯s Smart Port Conference 2019, which
concluded in Qingdao on June 21.
¡°China¡¯s ports are becoming deeper, larger and more
specialized. They are also getting automated quickly,¡± said
Chen Yingming, executive vice-president of the China Port
Five port clusters have taken shape in the Bohai Bay area,
the Yangtze River Delta, the Pearl River Delta and the
southeast and southwest coastal regions.
In 2018, the container throughput of China¡¯s major ports
reached about 250 million standard containers, or
twenty-foot equivalent units (TEUs), up 5.3 percent from
2017, according to the Ministry of Transport.
Besides, seven out of the world¡¯s 10 largest ports in terms
of annual cargo and container throughput last year were in
¡°With the top ports, such as Shanghai and Qingdao, getting
more automated, the automation of China¡¯s ports is gaining
momentum,¡± said Yin.
Port automation is extending beyond the eastern seaports to
the inland ports. The Port of Tangshan in North China¡¯s
Hebei province plans to promote automation by adopting
technologies such as mathematical modeling and big data.
Automation can also improve safety. Facilities including a
weather monitoring system and automatic fire extinguishing
system have provided greater safety assurance for container
terminals, according to Port of Qingdao.
¡°Automation will bring profound changes to the operation and
management of ports and create an efficient, safe, smart,
open and inclusive port ecosystem in the future,¡± said Chen.(June24,2019)
transport projects to benefit global economy, says World
Transport infrastructure projects under the Belt and
Road Initiative have the potential to ¡°substantially¡± boost
trade and reduce poverty in participating economies, as well
as to generate a positive impact for the wider global
economy, said a report released by the World Bank Group on
To achieve the full potential of the BRI, the report called
for joint efforts from China and other participating
economies to adopt deeper policy reforms, and adhere to high
quality standards of transparency, environmental, social and
¡°If fully implemented, BRI transport infrastructure can
reduce travel times for economies along transport corridors
by up to 12 percent, reducing trade costs,¡± the report said,
after assessing the network of proposed transportation
projects in about 70 countries along land and maritime BRI
corridors that connect Asia, Europe, and Africa.
The full implementation of proposed projects is estimated to
increase trade by between 2.8 and 9.7 percent for economies
along the corridors. For low-income corridor economies,
foreign direct investment could rise by as much as 7.6
percent, said the report.
Non-BRI economies will also benefit from access to improved
rail links and ports in the participating economies, raising
trade worldwide by between 1.7 and 6.2 percent.
Increased trade is expected to raise global real income by
0.7 to 2.9 percent, not including the cost of infrastructure
investment, according to the report.
Moreover, around 32 million people could be lifted out of
moderate poverty as a result of the initiative, with another
7.6 million to be lifted from extreme poverty, mostly in
corridor economies, the report said.
The report£which aims to help policymakers in developing
economies weigh the potential prospects of participating in
BRI projects£also pointed out that the initiative entails
risks common to large infrastructure projects.
The study finds that among the 43 low and middle-income
participating economies for which detailed data are
available, 12, with already elevated debt levels, could
suffer a deterioration in their medium-term outlook for debt
¡°This highlights the risks associated with BRI, but risks
can be mitigated with appropriate policies,¡± Michele Ruta,
an economist with the World Bank who led the study, said in
a written interview with China Daily.
¡°Assuming sound public investment management, favorable
financing terms, and continued growth dividends, the BRI¡¯s
impact on debt sustainability could be positive over the
long term,¡± Michele Ruta, an economist with the World Bank
who led the study, said in a written interview with China
There is thus a need to enhance the transparency of the
terms and conditions of BRI projects and improve recipient
economies¡¯ ability to assess these conditions, Ruta said,
adding that the improved fiscal frameworks and regulatory
environments of recipient economies will also help.
The report prioritized transparency as one of the three core
principles that BRI participating economies should comply
with to maximize benefits and mitigate risks brought by the
Specifically, it called for more public information on
project planning, fiscal costs and budgeting, and
procurement to encourage community involvement and build
public trust in investment decisions.
The other two core principles are to deepen country-specific
reforms and multilateral cooperation.
From 2013 to 2018, direct investment by Chinese enterprises
in economies involved in the BRI had exceeded $90 billion,
with an average annual growth rate of 5.2 percent, according
to the Ministry of Commerce.
Li Qiang, regional co-managing partner of Asia at DLA Piper
Global Law Firm, said Chinese investment in economies
involved in the BRI is helping to fulfill the huge potential
of bringing mutual benefits, citing the importance for
Chinese companies to sharpen their skillset of communicating
with local communities.
to boost prospects for global growth
The Belt and Road Initiative could play a key role in
shoring up the precarious global economic recovery clouded
by trade tensions, as it could not only bolster
international trade and investment but help improve global
governance, experts said on June 11.
¡°The BRI can bring common benefits to different participants
and stakeholders, and therefore can act as an important
mechanism offsetting global downside pressure,¡± said Wei
Jianguo, a former vice-minister of commerce.
Wei¡¯s remarks came after finance ministers and central bank
governors from the group of 20 major economies gathered in
Japan over the weekend and stressed the downside risks
brought by Sino-US trade tensions.
¡°Global growth appears to be stabilizing, and is generally
projected to pick up moderately later this year and into
2020,¡± the G20 officials said in a joint communique, which
was published on the website of Japan¡¯s Ministry of Finance.
¡°However, growth remains low and risks remain tilted to the
downside. Most importantly, trade and geopolitical tensions
have intensified,¡± the communiqu¨¦ said, adding that
international trade and investment are still important
engines of growth.
¡°The trade and geopolitical tensions mentioned in the
communiqu¨¦ refer to various factors, but mainly trade
tensions between the world¡¯s two biggest economies,¡± Wei
The biggest reason behind Sino-US trade tensions is the lack
of mutual trust, Wei said, citing the importance of
strengthening global governance via international
cooperation, which is expected to enhance mutual trust.
¡°The BRI has helped to strengthen global governance and
could to play a bigger role in the future, considering its
continuous efforts to tighten the bond between peoples and
encouraging cultural exchanges,¡± Wei said.
Meanwhile, the initiative can help shore up global growth by
boosting international trade and investment, said Liu
Chunsheng, an associate professor of international trade at
the Beijing-based Central University of Finance and
¡°As trade tensions sour, economies caught up in these are
looking for new partners. This gives the emerging market
economies involved in the BRI a great potential in
stabilizing international trade and investment, considering
their large population and market vacuums,¡± Liu said.
During the January-May period, the value of China¡¯s trade in
goods with economies taking part in the BRI reached 3.49
trillion yuan ($504.7 billion), up 9 percent year-on-year,
faster than the 4.1 percent of China¡¯s total foreign trade
in goods, according to customs data released on June 10.
¡°The initiative is helping to unleash that potential, as it
has established a platform of information sharing, enabling
both participants and non-participants in the initiative to
identify, discuss and evaluate investment opportunities in
the economies taking part in the BRI,¡± Liu said.
Also, Chinese investments in infrastructure across the
participating economies have helped to elevate their
economic efficiency, which will bring more international
investment, Liu said.
The G20 officials also endorsed the G20 Principles for
Quality Infrastructure Investment as a common aspiration,
aiming to maximize the impact of infrastructure on
sustainable growth while preserving debt sustainability and
integrating environmental and social considerations,
according to the communique.
¡°Infrastructure investment financing is indispensable for
the development of emerging markets, while both the funds¡¯
recipients and providers should pay close attention to
ensuring the induced economic growth could cover the debts,¡±
It would be a ¡°prejudice¡± against China to say the
principles are especially targeted at Chinese investments in
economies involved in the BRI, Liu said. ¡°The recipient
countries will need to strike that balance wherever they get
the investments, and China does not attach any additional
conditions, particularly political ones, to the
Chinese companies can pursue the aspired quality
infrastructure investment by better understanding and
communicating with local markets, experts said.
Alan Wang, partner at Freshfields Bruckhaus Deringer LLP, a
multinational law firm headquartered in London, said both
Chinese companies as well as host countries partners are in
the process of getting to know each other better to achieve
As Chinese companies continue to mature with better
understanding of local business environments and more
efficient commercial viability assessments, Wang expects to
see more cooperation and smoother project implementation
under the BRI.(June12,2019)
confident in stable, healthy, sustainable development of
China¡¯s economy will have enough factors of support to
maintain stable, healthy and sustainable development,
President Xi Jinping told Russian media on June 4.
Xi made the remarks during a joint interview with TASS
Russian News Agency and Rossiyskaya Gazeta newspaper on the
eve of his state visit to Russia.
Responding to a question on China¡¯s economic outlook, Xi
said his country has made remarkable achievements in
economic development in the past 70 years since the founding
of New China, especially in the past 40 years since the
implementation of the reform and opening-up policy.
China is now the world¡¯s second largest economy, the largest
manufacturer, the largest trader in goods, and holder of the
largest foreign exchange reserves, he said.
Against the backdrop of a slowdown in the world economy and
trade, Xi said, the Chinese economy got off to a good start
in 2019 as key indicators were kept in a reasonable range.
In the first quarter, China¡¯s GDP grew by 6.4 percent,
sustaining its momentum of steady growth in recent years and
representing the 14th consecutive quarter of staying in the
6.4 percent to 6.8 percent range, he said.
¡°Domestic consumption remained the main driver of growth,¡±
Xi listed that employment continued to expand, with 4.59
million urban jobs added in the first four months of 2019,
personal income grew faster than the economy, and prices
were generally stable, with consumer prices posting a modest
growth of 2 percent.
Total imports and exports were up by 4.3 percent
year-on-year, and China¡¯s foreign exchange reserves stayed
above $3 trillion, he said.
Apart from all this, Xi said, China is in the process of
optimizing its economic structure, transforming the model of
development and enhancing the quality and efficiency of
economic performance, thus strengthening the momentum of
steady and robust growth.
The trajectory of China¡¯s economy toward sound and stable
growth remains unchanged and will not change, Xi said.
Looking into the future, a number of factors will support
the steady, healthy and sustainable growth of China¡¯s
economy, including abundant human resources, strong internal
driving forces, growing development dynamism and
mobilization capability, he said.
Therefore, China has all the necessary conditions,
capability and confidence to deal with any risks and
challenges, Xi said.(June5,2019)
sees stable growth in China
China¡¯s economy is expected to grow by 6.2 percent this
year and by 6.1 percent next year, despite rising global
uncertainties, the World Bank said on May 31.
The world¡¯s second-largest economy has remained resilient,
although new trade tariffs have taken effect and global
growth slowed, the multilateral lending organization said.
¡°China¡¯s economy will need to rely increasingly on domestic
demand to sustain rapid growth,¡± it said in the May edition
of the China Economic Update.
China¡¯s growth in the first quarter was stronger than
expected, and the growth momentum increased in March.
Another positive factor to support the projection at 6.2
percent for this year is the government¡¯s strong fiscal
stimulus package, according to John Litwack, the World
Bank¡¯s lead economist for China.
¡°Next year, the escalation of trade tensions would not only
affect China, but also the rest of the world. Partly because
the prospects for world economic growth look lower than
before,¡± Litwack said in an interview with China Daily.
Although the direct impact on trade will be measurable and
manageable, the impact on investor sentiment is difficult to
gauge, and will depend on the degree to which the trade
tensions are expected to be temporary as opposed to a longer
duration, the economist said.
The renewed trade tensions have increased fluctuations in
the foreign exchange market. Some investors speculated that
the Chinese currency is under pressure, and the yuan¡¯s
exchange rate against the US dollar may slip to around 7£an
important psychological threshold for stabilizing market
¡°The exchange rate policy in China is more transparent than
it used to be,¡± said Litwack. ¡°The main trends in the yuan
exchange is mainly determined by economic fundamentals, but
it can also be influenced by short-term speculative factors.
The Chinese central bank has done well in smoothing
volatility from speculative factors while allowing the
market forces to determine the currency value.¡±
China negotiates to join Hague system protecting industrial
Chinese intellectual property professionals applauded the
country¡¯s ongoing negotiation to join the Hague Agreement
regarding industrial design, which is seen as a crucial step
to show China¡¯s commitment to intellectual property
¡°Joining the international agreement means our protection of
patents should be further intensified or, more precisely, it
means the length of the time that we protect industrial
design patents must be extended,¡± Ma Yide, an IP professor
from Zhongnan University of Economics and Law, said on May
¡°The extension will be beneficial for patent owners and also
help our country¡¯s patent protection align with
His remarks came as Shen Changyu, director of the National
Intellectual Property Administration, said at the opening of
the 15th China (Wuxi) International Design Expo on May 26
that China is negotiating with the World Intellectual
Property Organization to join the agreement.
Shen said that by joining the system Chinese companies will
have better protections for their own industrial designs,
and Made in China products can better integrate into the
The Hague Agreement for the international registration of
industrial designs, a mechanism aimed at intellectual
property protection, currently has 70 contracting parties
worldwide. An industrial design will be protected by all
contracting parties through a single application.
Gao Xiaoli, a Beijing lawyer specializing in patent-related
cases, said it would be good news for Chinese individuals
and enterprises with industrial design patents if China were
to join the agreement.
It requires each contracting party to protect industrial
design patents for at least 15 years£¡±which is longer than
the 10 years of protection in our country,¡± she said. ¡°The
longer a patent is protected, the more benefits the patent
owners will have.¡±
China has now begun the steps required to join, including
amending its laws. For example, a draft amendment of the
Patent Law extends industrial design patent protection to 15
years from 10 years.
The draft was submitted to the Standing Committee of the
National People¡¯s Congress, the country¡¯s top legislature,
for its first review in December. In general, a draft needs
to be reviewed three times before becoming law.
¡°China has also begun improving the quality of patents in
light of the rapid growth of applications in recent years.
It aims to better protect IP rights by making strict demands
on itself,¡± Gao said.
27,2019) from english.gov.cn
China intl cultural fair concludes with higher level of
The 15th China (Shenzhen) International Cultural
Industries Fair concluded on May 20 in the southern Chinese
city of Shenzhen, showing a higher level of
internationalization, organizers say.
The fair attracted 22,167 overseas business people from 103
countries and regions, including exhibitors and buyers,
according to the organizing committee.
Consisting of nine pavilions, the main display venue covered
105,000 square meters, 23.5 percent of which were for
The five-day event showcased China¡¯s cultural development,
progress in advancing Guangdong-Hong Kong-Macao cultural
integration and innovation, integrated media development and
innovations and creative designs.
The event attracted more than seven million visitors as of
May 19, with the number of visitors to the main venue
shooting up over 10 percent from last year.
cheaper internet services to boost demand, benefit people
China will extend 1,000-Megabyte broadband connection to
more than 300 cities and cut the average service rates by 15
percent for small and midsized enterprises this year. The
measures are designed to achieve multiplying effects of
expanding domestic demand, boosting employment and improving
The decision was made at the State Council¡¯s executive
meeting chaired by Premier Li Keqiang on May 14.
The Chinese government puts high importance on work relating
to broadband connections at reasonable rates. General
Secretary Xi Jinping issued instructions on several
occasions, stressing the need for enhanced information
infrastructure building to provide people with accessible,
affordable and user-friendly information services. Premier
Li Keqiang emphasized that solid efforts must be made for
faster and more affordable internet services and sharpen the
country¡¯s international competitiveness in this regard.
Figures from the Ministry of Industry and Information
Technology show that 1,000M broadband has been piloted in
100-plus Chinese cities. The country now has more than 3.76
million 4G base stations and 1.17 billion-strong 4G network
It was agreed at the meeting that as required by the Central
Economic Work Conference and the Government Work Report,
efforts must be intensified to make internet services faster
at a lower rate. This will not only benefit and facilitate
companies and the people, but will also help boost effective
investment and harness the digital economy¡¯s role in driving
China¡¯s economic and social development.
¡°We need to upgrade our internet services. This is a key
measure to boost consumption and meet the needs of our
massive cellphone users,¡± Premier Li said.
Participants at the meeting agreed that upgrading and
expanding the capacity of internet infrastructure should be
an important area in boosting effective investment. By the
end of this year, fiber-to-the-home (FTTH) ports relative to
all broadband ports will be raised to more than 90 percent,
1,000M broadband will be extended to more than 300 cities,
and base stations for mobile internet will be upgraded with
expanded capacity. The goal is to raise the speed of both
fixed-line and mobile internet services to 1,000M.
Broadband networks will cover 97 percent of primary and
middle schools nationwide this year, and dedicated internet
services will be made available over time in hospitals and
medical consortiums above the county level.
¡°The industrial internet, education and medical care are our
priorities in upgrading internet services in order to boost
industrial development, improve access to quality medical
resources and promote fairness in education,¡± Premier Li
Basic telecommunication service providers will be encouraged
to further lower prices. The goal this year is to cut the
average broadband service rate for small and midsized
enterprises by 15 percent, the average rate for mobile
internet services by more than 20 percent, and roaming
charges for internet traffic between the mainland and Hong
Kong and Macao by 30 percent. A ¡°floor-price¡± rate will be
set for low-income and elderly populations.
Basic telecommunication service providers will be urged to
ensure that cellphone users nationwide can switch service
carriers without changing phone numbers by the end of
November, and any extra term required for this service will
be looked into. These companies will also be urged to
straighten out their service packages to trim the packages
available by more than 15 percent within this year, bringing
more benefits to consumers.
¡°There is huge consumer demand for internet services in our
country. We must encourage fair competition, and ensure that
our measures to lower internet service charges are fully
delivered as they are an important part of our efforts in
improving people¡¯s lives,¡± Premier Li said.(May
China Summit: More technologies to upgrade traditional
With China¡¯s digital economy accounting for over one
third of its GDP, many hope new policies can better protect
data and properly regulate its usage. That¡¯s one reason why
thousands have descended on the second Digital China Summit
in East China¡¯s Fujian province.
More than 1,500 officials, company representatives and
scholars are attending this second Digital China Summit in
Industry leader Digital China Group is one of them. Its
Chairman Guo Wei says the key is properly applying 5G and AI
¡°One of our major challenges is how to use the latest
technologies to upgrade the infrastructure of traditional
sectors. Many digital companies don¡¯t understand the real
needs of traditional industries,¡± Guo said.
From e-governance to smart cities and factories, China¡¯s
digital economy has produced a vast expanse of data. Many
companies expect more policy support to share and make the
best use of the data value.
Chen Tao, executive president of IFLYTEK Co Ltd said: ¡°Data
among government departments is shared, but whether it is
possible to open data sources to companies for public use,
there is no clear policy.¡±
According to a recent white paper, China¡¯s domestic digital
economy reached 31.3 trillion yuan in 2018. That¡¯s about
$4.6 trillion, and roughly 34.8 percent of China¡¯s GDP.
Through this summit, these companies hope that more
collaboration will find new solutions for challenges ahead.
practices from FTZs to be replicated nationwide
The State Council issued a circular on April 30 that
decided to replicate the fifth batch of pilot practices from
free trade zones.
The circular covers a total of 18 practices, 17 of which are
expected to be replicated nationwide and one within free
In the investment management field, the circular decided to
replicate five practices nationwide involving simplified
notarization, tax files, online cross-region tax-related
matters, optimized tax handling procedures, and application
of company names.
As for trade facilitation, six items concerning facilitating
import and export clearance of international vessels, export
rebates of production-oriented export enterprises,
transportation mode of China-EU freight trains, and other
items will be promoted nationwide.
Six practices regarding public credit information
management, inspection of imported grains quarantine, and
supervision on bonded oil will also be replicated
Pilot cooperative notary organizations will be replicated in
the investment field of pilot free trade zones, according to
the circular. (May 5,2019)
Committee issues regulation on evaluation of officials
BEIJING ¡ª The Communist Party of China (CPC) Central
Committee has released a regulation on the evaluation of
Party and government officials, according to a CPC Central
Evaluation of officials is an important measure for adhering
to and strengthening the overall leadership of the CPC and
promoting the implementation of decisions and arrangements
made by the CPC Central Committee, according to the
It is also a major tool for encouraging officials to
shoulder responsibilities and make achievements, and for
advancing their career development, the circular said.
The regulation, with 11 sections, stresses that officials
should be evaluated based on their morality, capability,
work conduct, work performance and integrity.
It also defines awards and punishments based on evaluation
The regulation went into effect on April 7.
New rules on
inspecting, assessing government websites and new media
nationwide government websites and new media outlets should
be inspected semi-annually, and supervision of them be
assessed annually, according to a circular released by the
general office of the State Council on April 18.
According to the circular, a government website or new media
outlet will be assessed as unqualified if any of the
following problems are found: disclosure of state secrets,
occurrence of safety accidents, or failure to update
homepages, among others.
Their evaluation points will deducted if there are any
defects in releasing news and policy analysis, offering
government service, or responding to users¡¯ messages and
inquiries, among others.
Meanwhile, a government website or new media portal will get
bonus points if data can be updated in a timely manner,
policies can be interpreted accurately, or high-quality
government service can be provided, among others.
investors benefit from opening-up of China¡¯s financial
From April, China¡¯s yuan-denominated bonds start to
become part of the Bloomberg Barclays Global Aggregate Index
(GAI), a global benchmark, giving investors greater access
to the world¡¯s third-largest bond market.
A total of 356 yuan-denominated government and policy bank
bonds will be added into the Bloomberg Barclays GAI over the
next 20 months, making Chinese bonds the fourth largest
urges government information publicity
all levels should strengthen the publicity of government
information, with the general office of the State Council
and local governments at or above county level leading the
work, according to a State Council circular released on
Government at all levels should establish a system for
publicizing government information, and designate a
department to take care of its daily work, the circular
All information, except for any involving State secrets,
business secrets, individual privacy, and internal affairs
of the government, should be open to the public by active
disclosure or upon application, the circular added.
tasks laid out for implementing govt work report
The State Council released a document on April 9
detailing the division of main work tasks among ministries
and departments for implementing the 2019 Government Work
A total of 98 tasks in 13 aspects are appointed in line with
The implementing of major social economic goals is the
responsibility of the National Development and Reform
Commission, Ministry of Finance, Ministry of Human Resources
and Social Security, Ministry of Ecology and Environment,
Ministry of Commerce, the central bank, General
Administration of Customs, China Banking and Insurance
Regulatory Commission, State Administration of Foreign
Exchange and others.
According to the Government Work Report, the main targets
for economic and social development in 2019 are set as
follows: GDP growth of 6¨C6.5 percent; over 11 million new
urban jobs, a surveyed urban unemployment rate of around 5.5
percent, and a registered urban unemployment rate within 4.5
percent; CPI increase of around 3 percent; a basic
equilibrium in the balance of payments, and stable,
better-structured imports and exports; a macro leverage
ratio that is basically stable, and effective prevention and
control of financial and fiscal risks; a reduction of over
10 million in the rural poor population; personal income
growth that is basically in step with economic growth; a
further improvement in the environment; a drop of about 3
percent in energy consumption per unit of GDP; continued
reductions in the discharge of major pollutants.
The Ministry of Finance and State Taxation Administration
will lead the job of implementing tax cuts. The policy of
reducing employers¡¯ social insurance premium payment burden
will be led by the Ministry of Human Resources and Social
Security and Finance Ministry.
The General Office of the State Council will lead the
implementation of the further reform of streamlining
administration, delegating power and improving regulations
According to the Government Work Report, the government will
promote high-quality manufacturing, strengthen the
foundations of industry and the capacity for technological
innovation, boost the integrated development of advanced
manufacturing and modernized services, and work faster to
make China strong in manufacturing. That work will be taken
by the Ministry of Industry and Information Technology, the
National Development and Reform Commission, and the Ministry
of Science and Technology.
The National Development and Reform Commission, the Ministry
of Finance, and the State Taxation Administration will be
responsible to increase urban and rural personal incomes,
boost capacity for consumption, and fully implement the
revised Individual Income Tax Law to see that approximately
80 million taxpayers to whom reductions apply get the most
out of these policies.
The National Development and Reform Commission also will
lead the work of allocating 577.6 billion yuan ($86 billion)
in the central government budget for related investment in
2019, an increase of 40 billion yuan from last year.
The State Council Leading Group Office of Poverty
Alleviation and Development will lead the work of
intensifying poverty alleviation in areas of extreme
poverty, strengthen infrastructure development in such
areas, and ensure social safeguards for the most vulnerable
The National Development and Reform Commission and other
relative departments will be responsible for promoting
coordinated development across regions and improving the
quality of new urbanization.
The Ministry of Ecology and Environment and other
departments are responsible for preventing and controlling
pollution. This year, sulfur dioxide and nitrogen oxide
emissions should be cut by 3 percent, and there should be a
continuous decline in PM 2.5 concentrations in key areas,
according to the Government Work Report.
The State-owned Assets Supervision and Administration
Commission, National Development and Reform Commission, and
some other departments are responsible of accelerating state
capital and SOE reforms, strengthening and improving the
regulation of state assets, and continuing to conduct trial
reforms to establish state capital investment and management
According to the Government Work Report, China will follow
the principle of competitive neutrality, treat enterprises
under all forms of ownership equally when it comes to access
to factors of production, market access and licenses,
business operations, government procurement, public
biddings, and so on. The National Development and Reform
Commission, the Ministry of Industry and Information
Technology and the Finance Ministry will be responsible to
deliver that work.
The National Development and Reform Commission and the
Ministry of Commerce will be responsible for further easing
controls over market access, shortening the negative list
for foreign investment, and permitting wholly foreign funded
enterprises to operate in more sectors.
In 2019, government budgetary spending on education will
remain above 4 percent of GDP, and central government
spending on education will exceed 1 trillion yuan, which
will be delivered by the Finance Ministry and the Ministry
The document also directs specific departments to implement
policies on ethnic affairs, religion, overseas Chinese
nationals, national defense, Hong Kong, Macao and Taiwan
affairs, and diplomacy.
amends 6 regulations to fit online govt services
Council released an order on April 10 amending six
administrative regulations that are not compatible with the
development of online government services.
The amendments are meant to advance the reforms to
streamline administration, delegate power, improve
regulation and upgrade services, and to promote online
government services, the order said.
After reviewing some regulations that go against the trend
that all government services can be accessed through one
website, the State Council decided to amend some articles of
six regulations, according to the order.
The amended regulations are on urban road oversight, levying
of social insurance premium, housing fund oversight, the
operation of internet bars, immovable property registration
and the development and operation of urban real estate.
introduce policies to lessen burden on businesses and
China will take
measures to reduce government-levied charges and operating
service charges in order to further lessen the burden on
businesses and individuals. The personal postal articles tax
rates will also be lowered to expand imports and boost
consumption, the State Council executive meeting chaired by
Premier Li Keqiang decided on April 3.
General Secretary Xi Jinping stressed at the Central
Economic Work Conference that it is crucial to effectively
reduce the burden on companies, make electric power
transactions more market-based, and cut electricity and
logistics costs. Premier Li Keqiang pledged in the
Government Work Report this year to take reform measures to
lower business-related charges. Electricity costs in
manufacturing will be reduced, and the average utility rates
for general industrial and commercial businesses will be cut
by another 10 percent. A number of railway and port charges
will be abolished or reduced. Average broadband service
rates for small and medium-sized enterprises will be cut by
another 15 percent, and the average rates for mobile
internet services, by more than 20 percent.
It was decided at the meeting that starting from July 1,
charges on real estate registration will be cut or canceled.
The coverage of patent applications and annual fee
reductions will be expanded.
Charges on exit and entry travel documents such as private
passports, registration of certain trademarks, and radio
frequency uses in electricity and the Internet of Vehicles
will be further reduced. Significant reductions in these
charges are part of the plan. For example, ownership
registration fees for real estate such as garage and parking
spots will be reduced from 550 yuan to 80 yuan each. And the
registration fee for continued use of trademarks will go
down from 1,000 yuan to 500 yuan.
Payments by airline companies to the civil aviation
development fund and national major water conservancy
construction fund will be halved. Charges for national
cultural programs faced by centrally administrated
enterprises and institutions will be cut by half, effective
until the end of 2024.
It was also decided at the meeting that mobile internet
service rates and broadband service rates for small and
medium-sized enterprises will be reduced by about 180
billion yuan in 2019; average electricity rates for general
industrial and commercial businesses will be trimmed; prices
for rail freight transport will be lowered; port charges
will be cut or merged, and the charge for citizens¡¯ ID
information certification will be revoked.
The measures identified at the meeting are the most recent
moves for fee reduction following the lowering of the social
insurance contribution rate. Full delivery of these measures
is expected to lighten the fee burden on companies and
individuals by more than 300 billion yuan in 2019.
¡°Tax and fee cuts are a key measure to tackle the downward
economic pressure this year. They are a major policy
initiative. Cutting fees could serve multiple purposes. All
government departments must do their best to effectively
ease the burden on businesses and deliver real benefits to
consumers,¡± Premier Li said. ¡°This will also boost our
The meeting also worked out measures for cutting personal
postal articles tax rates. Starting from April 9, the tax
rate on food and medicine will be cut from 15 percent to 13
percent, and the tax rate on textiles and electrical
appliances will be trimmed from 25 percent to 20 percent.
stresses heavy price for food safety violations
¡°Those responsible for any serious food safety incidents
must be punished to bankruptcy!¡± Premier Li Keqiang said at
the State Council executive meeting on March 26.
The meeting adopted the draft regulation on the
implementation of the Food Safety Law of the People¡¯s
Republic of China.
The draft defines the main responsibility of production
operators, supervision duties and accountability measures of
It also outlines decisions to severely punish enterprises
and their legal representatives who violate laws and
regulations, and to improve food safety standards and risk
¡°Although some progress has been made in food safety work in
recent years, it is still far from the expectations of the
people,¡± the Premier said, adding that the bottom line must
be firmly held to ensure food safety and safeguard people¡¯s
Premier Li reiterated that penalties should be further
increased for violators and their legal representatives, and
study on a punishment mechanism to expel them from the
market for life must be accelerated.
¡°It is necessary to clarify the departments responsible for
executing large-scale fines according to legal procedures,
ensuring reasonable punishment rules, and powerful law
enforcement,¡± he said.
The regulation must be put into real practice to ensure that
the punishment serves as a real deterrent, the Premier said.
preferential policies for foreign investment come into play
Keqiang delivered a speech at the Boao Forum for Asia annual
conference on March 28, introducing a round of preferential
policies conducive to the expansion of financial market
The proposed Foreign Investment Law, the Premier said, will
play a significant role in establishing a law-based,
international, and convenient business environment.
The Chinese government has set about enacting related
regulations to underpin the Foreign Investment Law, with
concrete rules. And the overall preparation campaign will be
rounded out by the end of 2019, in a bid to implement the
law on Jan 1, 2020.
China will stick to reform, opening-up, and a neutral stance
on competition. In the meantime, any rules or regulations
that go against the Foreign Investment Law should be amended
China will continue with the expansion of its financial
market opening for foreign investment, allowing the
management mode of pre-establishment national treatment
(PENT) with a negative list to come into full play.
The negative lists for foreign investment will greet a new
amendment by the end of June, along with a guiding list of
industries calling for active participation from foreign
investors. Modern service sectors featuring medical
institutions and education, transportation sectors,
infrastructure and more will open to foreign investment.
Enterprises of all types of ownerships will receive equal
treatment and compete on a level playing field. And costs
for customs services will be substantially reduced, with
customs clearance taking less time, Premier Li said.
China will protect the legal rights of enterprises across
the board, whatever their ownership structure. And China
will unswervingly safeguard intellectual property rights,
with an amendment on the Patent Law under deliberation.
Harsher compensations for property rights violations will be
taken into account. And forcible technology transferring
will be banned, the Premier said.
Further improvements will be made in the complaint mechanism
for foreign enterprises. Meanwhile, a widely accessible
channel for coordination between the government and foreign
enterprises will become an efficient platform to safeguard
their legal rights.
China¡¯s finance industry will continue to open up, with an
all-around market access expanding to the sectors of
banking, bond, and insurance. And the business scope of
foreign banks will also see considerable expansion.
Foreign investors will be encouraged to establish
investment-oriented startups with more favorable policies
The bond market, the Premier said, will continue to open up,
with improved policies conducive to overseas investment and
transactions of Chinese bonds.
Playing a significant role in the process of China¡¯s
opening-up, enterprises established by entrepreneurs from
Hong Kong, Macao, and Taiwan will continue to enjoy
More opportunities will come to the fore for these
enterprises, highlighting wider market access to industries
including finance, professional services, and high-end
manufacturing, among others.
Additionally, measures conducive to the exchange of talent
and production factors between the mainland and Hong Kong,
Macao, and Taiwan will continue to come into play, in a bid
to form a positive environment for investment.
further improve business climate focusing on weak links
China will work harder this year for a more enabling
business environment by tackling areas of weakness to better
energize the market and stimulate social creativity, the
State Council¡¯s executive meeting chaired by Premier Li
Keqiang decided on March 26.
The Chinese government puts great emphasis on improving the
business climate. General Secretary Xi Jinping stressed the
need to improve the investment and market environment by
advancing opening-up and cutting costs for market operations
in an effort to create a fair, transparent and predictable
business environment. Premier Li Keqiang said in the
Government Work Report this year that the government will
work to energize market entities, and maintain and increase
their level of activity by improving the business
environment and cutting institutional transaction costs.
The meeting on March 26 called for redoubled efforts to
tackle the pressing issues and measure up to advanced
standards in fighting the tough battle of improving the
The government will further streamline administration by
cutting procedural requirements, including shortening the
negative list on market entry, separating business licenses
and operating permits, simplifying the review process for
construction projects, and reducing the types of industrial
production permits. The goal is to cut the time required for
starting a business to within five working days, and for
companies to access electricity service to within 45 working
days before the end of this year.
¡°Governments at all levels must take improving the business
climate as a key measure for stimulating market dynamism.
Just as the tax and fee cuts are designed to lessen
corporate burdens, improving the business climate is meant
to serve the same purpose. In face of fierce international
competition, we must tackle all the areas of weakness in our
business environment, such as access to credit service and
bankruptcy filing,¡± Premier Li said.
It was also decided at the meeting to implement the
principle of competitive neutrality, and overhaul the
policies and measures that hamper the growth of private
businesses or fail to treat domestic and foreign investors
as equals. The fair competition review system will be
implemented in all governments, including and above the
county-level, before the end of this year. Under this
system, all business-related policies will go through fair
competition review, and mechanisms for filing complaints and
third-party evaluation will be established to forestall or
redress any action that precludes or constrains competition.
In the meantime, it is imperative to enhance impartial
regulation and tackle inadequacies in government oversight
or corporate enforcement of their primary responsibilities.
In areas concerning public safety and health, a system of
hefty fines and compensations will be set up to hold
companies accountable for the grave consequences arising
from their breach of law.
The meeting also urged comprehensively enhancing the
protection of intellectual property and promoting credit
rating-based regulation to foster a dynamic, fair and
¡°We must move quickly to sort through existing decrees to
see that our policies are open, transparent and pro-free
trade,¡± Premier Li said. March 27, 2019,
pledges favorable policies concerning people¡¯s livelihoods
Premier Li Keqiang pledged to continuously improve
people¡¯s well-being in the process of developing the Chinese
economy and to put focus on the key areas and major
difficulties faced by the people during a meeting with the
press on March 15.
Provide public rental housing units for free to certain
According to Premier Li, to address issues related to aged
and child care, the government needs to provide policy
support. For example, the government may provide public
rental housing units for free to private operators as venues
of facilities for providing assisted meals, assisted
mobility, day care, rehabilitation, and even open senior
The government also may provide tax exemption or tax-free
treatment for these service providers in terms of their
expenses for water, electricity and natural gas, he added.
The main job of community-level officials and competent
departments is to ensure fair market access and enhance
oversight so that these services will be both safe and
reliable, and those who break the rules will be driven out
of the market, the Premier said.
¡°In this way, we will be able to keep our senior citizens,
our children and all families reassured,¡± he said.
Provide more policy support for those companies that hire
The status of the jobs-first policy is elevated to a macro
policy with the fiscal policy and monetary policy this year
for the first time, Premier Li said, adding that the tax
cuts under the fiscal policy, as well as cutting real
interest rates under the monetary policy, are all designed
to ensure employment.
Efforts will be made to apply a combination of measures,
including promoting employment for key groups of people,
like college graduates, demobilized military personnel and
laid-off workers, the Premier said.
To make sure there will be no zero employment families, the
government will provide more policy support for those
companies that hire more, while expanding the platforms to
encourage business startups and innovation as a way to
generate more jobs, he added.
The Premier also stressed that rural migrant workers must be
treated with kindness, vowing to ensure that they will not
only find jobs but also get paid for their work.
Lower the payout threshold and raise the reimbursement rate
This year the government plans to do its utmost in taking
two major steps, Premier Li said. First, it will make
outpatient drugs for chronic diseases, like high blood
pressure and diabetes, reimbursable, and set the
reimbursement rate at 50 percent.
Second, when it comes to the serious illness insurance plan,
which already covers nearly 1.4 billion people, the
government will lower the payout threshold and raise the
reimbursement rate so that this can truly produce amplifying
effects to benefit as many people as possible.
¡°The government and private entities must work together in
this respect to meet people¡¯s health needs,¡± he said,
¡°Without health, there would be no happy life for our
Concerning the question as to whether there would be a
three-day national holiday for the May 1 Labor Day this
year, Premier Li said, ¡°We would ask relevant departments to
study this expeditiously, taking full account of the views
of the general public.¡±March 20,2019,
Council to reshuffle flood control and drought relief
The State Council decided to reshuffle the panel of the
State Flood Control and Drought Relief Headquarters,
according to a circular on March 19.
State Councilor Wang Yong will become the commander of the
headquarters. Other members are from various ministries and
bureaus such as the Ministry of Emergency Management, the
Ministry of Water Resources, and the Meteorological
The office is located at the Ministry of Emergency
Management, headed by Li Kungang, who is also director of
the department of flood control and drought relief at the
Marathon" was selected again "Chinese athletics association
gold medal competition"
On March 11,
2018 Chinese athletics association marathon annual press
conference was held in Xiamen, Bayuquan Marathon was listed
in , and was selected as the gold medal event of Chinese
athletics association again. March 14,2019
Govt urged to
heed advice from enterprises, industrial associations in
Council released a notice on March 13, urging
provincial-level governments and State Council departments
and units to fully draw on advice from enterprises and
industrial associations when making administrative rules and
The government should evaluate the rules to be established
based on their influence on enterprises and industries, and
collect opinions from representative enterprises, industrial
associations, chambers of commerce and lawyers¡¯
Authorities should use the internet and media to collect
public opinions, and build advice soliciting platforms on
their official web portals. Measures such as holding
symposiums, conducting surveys and field visits are
encouraged, according to the notice.
The acceptance of opinions should be made public through
government portals and newspapers, or be passed on to
A reasonable buffer period should be set as preparation for
enterprises to adopt the rules.
The circular also stressed stepping up filing and review of
newly released rules and review of normative documents in
terms of legality.
In addition, the government should actively learn about the
needs and difficulties of enterprises.
According to the circular, the government should improve the
work mechanism regarding enterprises and industrial
associations¡¯ participation in institution building,
establish constant contact with enterprises, and take the
initiative to resolve major issues. March 14,2019,
Administrative approval items further canceled or delegated
The State Council has decided to cancel 25
administrative approval items and delegate six to
lower-level authorities, according to a circular released on
For another five administrative approval items set according
to related laws, these laws will be submitted to the
Standing Committee of the National People¡¯s Congress for
revision, the circular said.
Approvals of overall plans for developing petroleum and
natural gas with foreign companies, and those of
transmission network construction projects, as well as 23
other kinds of administrative permits, will be scrapped.
Six approval items will be delegated to authorities at lower
levels. For example, the issuance of permits for passenger
vessel business and shipping of dangerous bulk liquid cargo
between the mainland and Hong Kong and Macao will be
delegated from the Ministry of Transport to provincial
Related departments in various regions should ensure the
implementation of the measures, and publish specific
supervision rules within 20 working days after the
circular¡¯s release. March 13,2019,
reduce immovable property registration time
The State Council issued a circular on March 10 to
reduce the time required for immovable property
According to the circular, the time required for general
registration and mortgage registration of immovable property
should be cut to no more than 10 and five working days,
respectively, in all cities and counties across the country
by the end of this year. And both should be reduced to no
more than five working days before the end of 2020.
Information sharing and integration should be promoted among
departments to increase information quality and usage
efficiency. Related departments should provide information
on immovable property registration in a timely manner and
strengthen coordination with registration institutions to
achieve connectivity and sharing before the end of 2019.
Efforts should be made to make full use of such technologies
as the internet, big data, facial recognition and online
payment to promote ¡°Internet Plus immovable property
registration¡±, said the document. An online registration
center with various platforms, like web and WeChat versions,
should be established to make applications available at any
time and any place.
Meanwhile, local government should accelerate the
integration and quality improvement of stock data and
complete data improvement and exchanges before the end of
2019, said the document.
Additionally, the circular also stressed the integrated
process with optimized procedures and streamlined materials.
A comprehensive window should be established at the
administrative service hall or immovable property
registration hall to deal with related items and collect all
materials in one visit.
Unnecessary and similar procedures of property registration
should be incorporated, and application materials should be
streamlined. Materials that can be obtained through
information sharing should not be submitted, and hard to
obtain materials, such as certificates on death and relative
relationships, should be replaced with a written document.
In places where information sharing and integrated process
are not available, convenient services can be offered
through centralized work, said the document.
unveils guideline to toughen supervision over food safety
China has unveiled a guideline to enhance the
accountability system of local governments to strengthen
supervision over food safety.
Food safety will be included in the performance assessment
of the Party and government leading officials, according to
the guideline released by the Central Committee of the
Communist Party of China (CPC) and the State Council over
The guideline aims to promote local government¡¯s food safety
work and improve people¡¯s well-being.
Food safety, including the safety of agricultural products,
will be included in the national economic and social
development plan of local governments. It will also be put
on local government¡¯s work priorities and subject to
supervision of lawmakers and political advisers, according
to the guideline.
The guideline specifies major requirements for local
governments to toughen supervision over food safety,
including improving the food safety supervision and
accountability system, strengthening food safety supervision
capability and efficiency, and formulating emergency plans
for food safety incidents.
The guideline also outlines rewards and punishments for
local authorities in managing food safety work. Feb.28,2019, from english.gov.cn
govt¡¯s key words on boosting trade
Boosting foreign trade has always been on top of the
government¡¯s agenda. The year 2018 witnessed some new
measures from the State Council executive meetings to
facilitate trade, which play a key role in connecting China
with the world.
The measures, covering tariff cuts, customs clearance,
rebates, and cross-border e-commerce, became buzzwords on
the government¡¯s agenda, demonstrating China¡¯s decision to
deepen reform and opening-up.
The video explains some of those measures. We hope it will
help you get an idea about the government¡¯s work. Feb.27,2019, from english.gov.cn
Big data to
reshape economic landscape
Core industries in China¡¯s big data sector could earn
more than 720 billion yuan ($106.3 billion) this year, said
a report on the sector¡¯s outlook from think tank CCID.
China¡¯s big data sector will witness 25 to 30 percent growth
in 2019, facilitating the transformation and upgrading of
regional economic structures, the report said.
Apart from East China where the sector is flourishing,
Southwest China¡¯s Sichuan and Guizhou provinces and
Chongqing municipality are expected to be front-runners for
new growth, according to the report.
As part of the development of the digital economy, China is
accelerating the integration of big data and the real
economy, said Wei Kai, a researcher with the China Academy
of Information and Communication Technology.
Wei said the development of big data in China is still
unbalanced, such as unbalanced business types and uneven
To maximize the use of big data, the country should make
efforts to establish all-in-one big data platforms and
effective mechanisms for data management, Wei added.
Officials in Guizhou province said they will boost the
output value of big data, electronic information and other
industries to over 100 billion yuan this year, as well as
accelerate the development of intelligent terminal
manufacturing and supporting facilities.
It will also focus on the development of electronic
components and materials, and foster the development of
integrated circuits and new display industries.
Since 2015, China International Big Data Industry Expo has
been held for four times in Guiyang, capital city of Guizhou
province. Last year, the expo attracted over 40,000
participants from nearly 30 countries.
As China¡¯s first big data pilot zone, the mountainous
province of Guizhou has attracted heavyweight firms,
including Apple, Qualcomm, Huawei, Tencent, Alibaba and
Foxconn, to establish cloud computing and big data centers
as well as regional headquarters.
In addition, Hunan has formulated six measures to boost the
big data industry, such as cultivating enterprises engaged
in big data industry, as well as promoting research and
development and innovative applications of big data
technologies and products.
The sales revenue of big data industry in Hunan is expected
to surpass 100 billion yuan by 2021, with a compound annual
growth rate of over 30 percent in the next three years,
according to the local authority.
A booming digital economy is reshaping China¡¯s economic
landscape as technology such as artificial intelligence, big
data and cloud computing revives traditional industries and
casts new light on high-quality development.
China¡¯s big data sector aims to increase its annual sales to
1 trillion yuan by 2020 from an estimated 280 billion yuan
in 2015, said a plan released by the Ministry of Industry
and Information Technology. Feb.22,2019, from english.gov.cn
development plan for Guangdong-Hong Kong-Macao Greater Bay
authorities unveiled the outline development plan for the
Guangdong-Hong Kong-Macao Greater Bay Area on Feb 18, aiming
to develop the region into ¡°a role model of high-quality
The plan was released by the Central Committee of the
Communist Party of China and the State Council.
Promoting the development of the Greater Bay Area is a major
decision made by the CPC Central Committee with Comrade Xi
Jinping at the core, said an official in charge of the
office of the leading group for developing the area.
¡°It is a national strategy General Secretary Xi Jinping has
planned for, made decisions about and promoted in person,¡±
the official said.
The bay area consists of the Hong Kong Special
Administrative Region (HKSAR), the Macao Special
Administrative Region (Macao SAR), as well as nine cities in
Guangdong province ¡ª Guangzhou, Shenzhen, Zhuhai, Foshan,
Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing.
Covering a total area of 56,000 square kilometers, the bay
area had a combined population of about 70 million at the
end of 2017 and its gross domestic product reached around 10
trillion yuan ($1.48 trillion) in 2017.
¡°As one of the most open and economically vibrant regions in
China, the Greater Bay Area plays a significant strategic
role in the overall development of the country,¡± says the
The development of the area is hailed not only as a new
attempt to break new ground in pursuing opening-up on all
fronts in a new era, but also a further step in taking
forward the practice of ¡°one country, two systems.¡±
The plan covers the period from now to 2022 in the immediate
term and extends to 2035 in the long term.
The plan has 11 chapters: the background, the overall
requirements, the spatial layout, developing an
international innovation and technology hub, expediting
infrastructural connectivity, building a globally
competitive modern industrial system, taking forward
ecological conservation, developing a quality living circle
for living, working and traveling, strengthening cooperation
and jointly participating in the Belt and Road Initiative,
jointly developing Guangdong-Hong Kong-Macao cooperation
platforms, and the implementation of the plan.
WORLD-CLASS CITY CLUSTER
The plan says the bay area will be turned into a vibrant
world-class city cluster, a globally influential
international innovation and technology hub, an important
support pillar for the Belt and Road Initiative, a showcase
for in-depth cooperation between the mainland and Hong Kong
and Macao, and a quality living circle for living, working
Efforts should be made to build on the four core cities of
Hong Kong, Macao, Guangzhou and Shenzhen as core engines for
regional development, continue leveraging their comparative
advantages in striving for excellence and achievements, and
strengthen the radiating effect in leading the development
of nearby regions.
Setting development objectives, the plan says by 2022 the
framework should essentially be formed for an international
first-class bay area and world-class city cluster that is
vibrant and highly innovative with an optimized industrial
structure, a smooth flow of various factors and a pleasant
By 2035, the bay area should have an economic system and a
mode of development mainly supported by innovation, with its
economic and technological strengths vastly increased and
its international competitiveness and influence further
strengthened, it adds.
By then, the markets within the Greater Bay Area should
basically be highly connected, with a very effective and
efficient flow of various resources and factors of
production; the coordination of regional development should
remarkably improve, with the influence on neighboring
regions further strengthened.
The people should become wealthier; the level of social
civility should reach new heights, with cultural soft power
demonstrably strengthened, Chinese cultural influence
broadened and deepened, and exchange and integration between
different cultures further enhanced, the plan says.
Meanwhile, the levels of conservation and efficient use of
resources should be significantly improved, the ecological
environment should be effectively protected, and an
international first-class bay area for living, working and
traveling should be fully developed.
The People¡¯s Daily hailed the plan, saying the Greater Bay
Area facilitates the enrichment of the implementation of the
¡°one country, two systems,¡± creates more opportunities for
the socio-economic development of the two special
administrative regions and for Hong Kong and Macao
compatriots wishing to develop careers on the mainland.
We must ¡°free our minds, make active explorations and bold
trials, and strive to play a pioneering role,¡± the article
Both HKSAR and Macao SAR governments issued statements
welcoming the promulgation of the plan.
An HKSAR government spokesperson said the Greater Bay Area
will help Hong Kong find new drivers for economic growth and
advance the diversified development of local economy and
industries, as well as expand the living and development
space of Hong Kong residents.
¡°Bay areas play a big role in global economic powerhouses
such as the United States and Japan,¡± said Liang Haiming,
head of China Silk Road iValley Research Institute. ¡°China¡¯s
bay area will become a world-leading one and demonstrate the
vitality of our systems.¡±
Lin Jiang, vice-dean with the Center for Studies of Hong
Kong, Macao and Pearl River Delta at Sun Yat-sen University,
noted the complexity of building this bay area because
different social and legal systems, three separate customs
territories and three currencies are involved.
¡°Such uniqueness brings challenges,¡± Lin said, but adding
that they can be overcome by improving the unified mechanism
of regional public goods.
Ip Kuai Peng, pro-rector of the City University of Macau,
said he is confident that the Greater Bay Area will evolve
into a vibrant, innovative world-class area with high
efficiency, rich resources, a strong economy, and good
¡°The high degree of resource flow and integration in the
area will truly enhance the well-being of Macao residents,¡±
he said. ¡°For example, the ¡®one-hour living circle¡¯ will
greatly facilitate the life and employment of bay area
Fang Zhou, research director of the Hong Kong-based
One-Country-Two-Systems Research Institute, said developing
the bay area will provide young people with new
It will allow Hong Kong residents to further enjoy the
benefits of the country¡¯s economic development and sustain
Hong Kong¡¯s long-term prosperity and stability, he said. Feb.19,2019, from
reviews its commercial development in 2018
China saw stable commercial development last year in
consumption, trade and foreign investment, Ministry of
Commerce (MOFCOM) said in a media briefing on Feb 12.
Below is a summary of key points from the briefing:
Consumption plays a bigger role
Consumption has served as a primary driving force for
economic growth for five consecutive years.
With the retailing of consumer goods in 2018 growing nine
percent year-on-year to 38.1 trillion yuan ($5.6 trillion),
consumption contributed 76.2 percent of economic growth,
18.6 percent higher than the previous year.
Backed by the development of e-commerce, supply chain and
digital consumption, the online retailing reached nine
trillion yuan in 2018, 23.9 percent up year-on-year.
New trade record
Last year saw a total trade revenue of 30.5 trillion yuan
with a 9.7 percent year-on-year growth, according to data
from MOFCOM, a new record for trade amount.
The new record came with better structure. China¡¯s trade
with Belt and Road countries accounted for 27.4 percent of
its total trade and the country¡¯s middle and western regions
contributed 15.8 percent of China¡¯s total trade.
Meanwhile, private enterprises made up 48 percent of China¡¯s
export, remaining the largest export entity.
The growing goods trade was also more balanced last year
with the surplus dropping to 18.3 percent and service trade
ranking second in the world for five consecutive years.
In terms of trade system and governance, China has continued
to support the multilateral trade system and declared its
principles and claims in the reform of the global trade
system in a white paper named China and the World Trade
China also actively participated in global trade governance
through G20, Shanghai Cooperation Organization Qingdao
summit and BRICS summit.
China has made new progress in cooperation with Africa
through 2018 China-Africa Cooperation Form Beijing Summit,
and launched plans in eight fields, including technology,
investment, trade, and communication.
Stably rising FDI & OFDI
While global cross-border investment saw a drop of 19
percent, China¡¯s foreign direct investment (FDI) embraced a
stable and high-quality increase. Over 60,000 foreign-funded
enterprises were established last year, a year-on-year
increase of 69.8 percent.
The country¡¯s actual use of foreign capital was 885.6
billion yuan, growing by 0.9 percent, which was equivalent
to $135 billion, up three percent.
Investment from developed economies grew rapidly. Investment
from the UK, Germany, South Korea, Japan, and the US into
China increased by 150.1 percent, 79.3 percent, 24.1
percent, 13.6 percent and 7.7 percent respectively.
China continued to optimize its use of foreign capital, with
the proportion of foreign capital used in manufacturing
sector increasing to 30.6 percent, and in high-tech
manufacturing increasing by 35.1 percent.
China¡¯s outward foreign direct investment (OFDI) for the
year stood at $129.8 billion, with an increase of 4.2
percent year-on-year. The investment into economies along
the Belt and Road was $15.6 billion, up 8.9 percent.
The country¡¯s OFDI structure continued to be optimized, with
investment mainly put into such fields as rental sector,
business services, manufacturing, wholesale and retail, and
China¡¯s contracted projects overseas promoted the host
country¡¯s economic and social development, creating annual
turnover of $169 billion and 840,000 local jobs. The
projects also drove China¡¯s export of equipment and
materials to $17 billion.
Three major tasks
Vice-Minister of Commerce Qian Keming reviewed three major
accomplishments last year: the hosting of the first
International Import Expo (CIIE), dealing with trade
frictions with the US and promoting Hainan Free Trade Zone.
In 2019, the ministry will continue efforts for the second
CIIE, the ongoing trade friction and for FTZs as well as
free trade ports, in a bid to achieve a strong domestic
market and comprehensive opening-up.
Council encourages vocational education reform
The State Council issued a circular on Feb 13, detailing
the reform plan for China¡¯s vocational education to
cultivate high-quality workers and technical personnel.
The circular said that by 2022, 50 high-level advanced
vocational schools with 150 key majors should be
established, and a national standard system of vocational
education that covers most industries and meets
international advanced levels will be created. Enterprises
will show more willingness to participate in vocational
education, and teachers with both theoretical and practical
skills will account for over half of the total number of
To achieve these goals, efforts should be made to improve
the framework of the national vocational education system,
enhance secondary vocational education, and promote the
high-quality development of advanced vocational education,
as well as intensify the training system for high-level,
application-oriented personnel, according to the circular.
It also emphasized the fundamental role of standards in
improving the quality of vocational education, and decided
to initiate the pilot work of academic certificates plus
vocational skill level certificates (1+X) system,
encouraging students to learn more skills while obtaining a
Vocational training in about 10 industries that are short on
skilled talent will be conducted, and enterprises are also
encouraged to participate, the circular added.
The circular also urged the integration of production and
education by encouraging universities and enterprises to
work together to make training plans, promoting
comprehensive and deepened cooperation, and constructing a
number of high-level training bases.
Benefits for technical personnel will be improved, as will
the educational fund investment mechanism, according to the
It also urged improving the quality evaluation and
supervision system of vocational education.
up 5G commercial use, adding value up to $4.4t
Despite the complicated international and domestic
economic environment in 2018, the scale of the industrial
sector in China continued its expansion, and the total
national industrial added value surpassed 30 trillion yuan
($4.4 trillion) for the first time in 2018. Leading China to
rank first in the world, said Miao Wei, head of the Ministry
of Industry and Information Technology (MIIT) on a news
release conference on Jan 29 this week.
Miao also said that China¡¯s industrial output above
designated scale grew 6.2 percent year-on-year, which is
better than expectations. The profit of industrial
enterprises above designated size also increased by 10.3
Another uptick is China¡¯s industrial investment.
Manufacturing investment rose by 9.5 percent year-on-year in
2018, increasing for the past consecutive nine months, and
investment in high-tech manufacturing saw growth of 16.1
percent, according to Miao.
Among the manufacturing investment, about 50 percent of
total new investment was used at technologies upgrading,
which is in line with China¡¯s goal of becoming a more
advanced manufacturing powerhouse.
China will continue to push forward the development of
quality manufacturing in 2019, boosting connected vehicles,
4K (Ultra HD) video transmission, cruise ship-building
industry, information technology sector and
In 2018, China also lifted its access restrictions to
foreign manufacturers of ship, plane and new-energy car.
Meanwhile, the government also clarified the open-up
schedules of other types of car manufacturers to
international businesses. As of 2018, China has opened up
it¡¯s entire general manufacturing to foreign investors. The
country¡¯s manufacturing industry used $41.2 billion in 2018,
grew 22.9 percent year-on-year.
While the Chinese companies hit blocks while push 5G
technologies overseas, it has made breakthrough domestically
According to Miao, the third stage test of technical
experiments for 5G research and development has been
finished, and the 5G system¡¯s devices have the ability for
The development of 5G will significantly boost the Chinese
economy; an MIIT official said that the first five years of
implementing 5G would generate 10 trillion economic output
and over three million new jobs. MIIT also released a time
map for 5G commercial use, during the first half of 2019,
China will launch 5G terminal chip, and in the middle of
2019, China will roll out 5G smartphone terminal. The
commercialization of 5G will create many new opportunities,
give the entire industrial chain of the chip, terminal,
system and the application a strong boost.
China will also continue to improve the internet coverage
rate in small cities and villages, by the end of 2020, 98
percent of the poverty strike villages will have the
internet connection, letting more Chinese share the
dividends of the information communications technology
Council calls for development of bonded zones
The State Council recently issued a circular, outlining
plans for the increased development of bonded zones.
Comprehensive bonded zones, according to the circular, need
further innovation and upgrading, along with more
contributions to opening-up, in a bid to let bonded zones
blossom into international hubs of manufacturing, research
and development (R&D), design, and maintenance.
Manufacturing enterprises will be allowed to engage in
overseas projects with their spare capacity, the circular
A number of items produced inside the comprehensive bonded
zones will be exempt from the cargo-handling list for
automatic import licensing, including key products like
mobile phones and automobile accessories, to facilitate
their domestic sales.
With preferential policies in comprehensive bonded zones,
departments concerned should support the development of
national centers for industrial innovation, technical
innovation, and engineering research, as well as emerging R
& D institutions inside the zones.
Logistics distribution centers should be established, with
trade procedures further simplified inside the bonded zones.
Goods not subject to import tariffs, trade restriction
certificates, and tax reimbursement, will have an easier
journey entering and exiting the bonded zones.
Enterprises in bonded zones will be allowed to conduct
high-technology and high added-value tests and global
Remanufacturing operations will be allowed in the bonded
zones, including aerospace and engineering machinery,
according to the circular.
Centers for marketing services will be established to
cultivate new drivers of development, the circular said.
Cross-border e-commerce, outsourcing services, and future
delivery will also be encouraged in the bonded areas.
Council promotes development of cities without waste
The State Council decided to promote a pilot program for
cities without waste, according to a circular issued on Jan
Cities without waste means an urban development model that
is aimed at minimizing landfills and the environmental
impact of solid waste by promoting green development modes
and lifestyles, reducing solid waste from the source and
transforming them into resources.
A total of 10 cities with necessary conditions and moderate
scale will be selected nationwide to carry out the pilot
According to the circular, by 2020, an index system, an
integrated management system and a technical system for
construction of cities without waste should be established,
and significant progress should be made in key areas in the
The circular emphasized macro guidance by the government
while implementing green production in industrial and
It also advocated a green lifestyle to reduce household
waste at the source and transform them into resources.
Comprehensive safety control of hazardous waste should be
strengthened, it said, adding that new models of industrial
development should be cultivated to energize market players.
Financial support and supervision of the pilot program
should be enhanced, the circular stated.
13th Liaoning snow and ice hot spring tourism promotion
season was launched in Bayuquan District
On the evening of January 14th, the 13th Liaoning snow
and ice hot spring tourism promotion season launching
ceremony and Liaoning four seasons tourism promotion film
launching ceremony was held in Bayuquan District Honghai
river snow and ice carnival.Yu Gongbin, deputy secretary of
the CPC Yingkou committee and mayorof Yingkou municipal
government, Wang Xiaojiang, deputy director of the
provincial department of culture and tourism, Zhong Weiliang,
chairman of the provincial tourism investment group, Ji
Zhaohui and Fang Jingguang, city leaders attended the
opening ceremony. Jan.17,2019
trade port efforts gain traction
China will step up efforts to accelerate free trade port
construction this year, a further step to build on the
success of free trade zones across the country, the Ministry
of Commerce said.
Assistant Minister of Commerce Ren Hongbin said one of the
ministry¡¯s priorities in 2019 is to advance the building of
free trade zones and explore steps to construct free trade
ports in China.
The ministry will draw on international experience and come
up with policies and institutional systems for building free
trade ports ¡°as soon as possible¡±, Ren said at a news
conference on Jan 16.
Free trade ports are regarded as the world¡¯s most open form
of economic zone, which has brought prosperity to places
such as Singapore thanks to broad-based preferential
policies on trade and investment.
It is open to all commercial vessels on equal terms. Goods
may be unloaded, stored and shipped without the payment of
According to last year¡¯s government guidelines, a free trade
port system will be ¡°basically established¡± in Hainan by
2025. Last April, China announced it would develop the
island into a pilot free trade zone, through which Hainan
will be granted more capacity to reform, and speed up the
fostering of a law-based, international, and convenient
Zhao Ping, a senior researcher at the China Council for the
Promotion of International Trade Academy, said: ¡°It is
necessary to create a high-tech talent pool to help to speed
up the pace of transforming Hainan into a free port. Key
focus areas would include shipping, logistics and finance,
so talent in these sectors should be valued.¡±
Sang Baichuan, a professor at the University of
International Business and Economics, said specially
tailored policies are also needed in terms of market access,
financial systems and taxation.
Tianjin, a coastal city in northern China, plans to apply
for the establishment of a free trade port, which can
further integrate the development of the Beijing-Tianjin-Hebei
region, said the administration of China (Tianjin) Pilot
Free Trade Zone. In a recent emailed interview with China
Daily, the administration revealed that the construction
plan will be submitted to the higher authorities ¡°in due
About five years ago, China set up its first FTZ in Shanghai
as a way to promote trade and investment. Since then, pilot
FTZs have sprung up across the country. In all, 12 have been
built or planned.
Ren said in 2019, the ministry will support Shanghai to
boldly innovate in facilitating investment and trade.
The ministry will further reduce the negative list for
foreign investment access in the pilot FTZs, and accelerate
the further opening of key areas such as medical care and
education, Ren said. Jan.16,2019 from:english.gov.cn
tax cuts to be introduced for small, micro businesses
China will unveil larger-scale tax cuts and tax
exemptions for micro and small enterprises (MSEs), a State
Council executive meeting chaired by Premier Li Keqiang
decided on Jan 9.
Further tax and fee cuts reflect intensified implementation
of the proactive fiscal policy and are an important step in
deepening supply-side reform. At the annual Central Economic
Work Conference held in December 2018, President Xi Jinping
stressed the need to introduce tax and fee cuts on a larger
scale and more inclusive tax breaks for MSEs. Premier Li
Keqiang said at the conference that MSEs, as major job
creators, should be given priority in such tax cuts.
Reducing tax burdens for MSEs has been on the agenda of the
State Council¡¯s executive meetings four times throughout
2018. Statistics from tax authorities show that from January
to November 2018, tax cuts for MSEs totaled 184 billion yuan
($27 billion). These tax cuts have helped to lower the cost
of entrepreneurship and innovation and help businesses gain
vitality, create more jobs and ease their financing woes.
¡°Amid increasing downward pressure, it is essential to
introduce tax and fee cuts for small and micro firms, as
this will be conducive to boosting employment and shoring up
private businesses at the same time,¡± Premier Li said.
The meeting rolled out a host of inclusive tax breaks for
MSEs. The eligibility of small and low-profit businesses to
benefit from preferential corporate tax will be
significantly expanded, and deeper cuts on corporate tax
will be introduced. Small and low-profit businesses with an
annual taxable income of less than 1 million yuan and
between 1 million and 3 million yuan will be eligible to
have their tax calculated based on 25 percent or 50 percent
of their taxable income. This is expected to reduce tax
burdens of such enterprises to 5 percent and 10 percent. The
adjusted tax incentives are expected to cover 95 percent of
corporate tax payers, 98 percent of which will be private
At the same time, VAT threshold on small-scale tax payers,
which mainly includes MSEs and individual businesses and
other types of individuals, will be raised from 30,000 yuan
to 100, 000 yuan of monthly sales.
Provincial-level governments will also be given the
authority to cut taxes up to 50 percent for small-scale VAT
taxpayers under several local tax items, including resources
tax, as well as education and local education surcharges.
The scope of tax incentives applied to investment in
high-tech start-ups will be expanded to give more tax breaks
to venture capital firms and angel investors investing in
At the same time, central government finance will provide
stronger general transfer payment to local authorities to
make up for possible funding gaps at local levels caused by
large-scale tax and fee cuts.
The tax incentives will cover all taxes incurred since Jan
1, and will be effective for a tentative three years. They
are expected to save about 200 billion yuan for small and
micro businesses every year.
¡°Since last year, the government has spent within its means
and enacted several rounds of tax incentives for small and
micro firms. The latest round of tax cuts will be the most
substantial so far, and it is also appropriately
structured,¡± Premier Li said. ¡°The government must tighten
its belt to give more benefits to businesses and energize
the market.¡± Jan.11,2019
Yu gongbin met with guests fromNorway
morning, deputy secretary of CPC Yingkou committee and mayor
Yu gongbin met with the mayor and his delegation of
Nangaranga city, Finmark province, Norway at the Yingkou
Guest House.Municipal standing committee, vice mayor Dong xu
was present at the meeting. Jan.8,2019
new chapter of opening up and development of Yingkou city
office of Yingkou municipal government held a press
conference. Yingkou comprehensive bonded zone has passed the
inspection, marking a new chapter of opening up and
development of Yingkou city. Jan.3,2019
State Council unveils policy support for SME growth
Premier Li Keqiang visits Luolai Lifestyle Technology Co
during an inspection in Jiangsu province on Nov 29.
China will intensify its support for the development of the
private sector, and small and medium-sized enterprises (SMEs)
to boost the vitality of market entities and enhance their
confidence, an executive meeting of the State Council,
China¡¯s cabinet, decided on Dec 24. The meeting was chaired
by Premier Li Keqiang.
The growth of SMEs has been high on the Chinese government¡¯s
agenda. An array of policy incentives in the fiscal, tax,
and financial fields and in relation to the business climate
and public services has been introduced to support SME
development. These policies have paid off.
President Xi Jinping emphasized on several occasions the
need to protect the lawful rights and interests of private
enterprises. Premier Li Keqiang called for giving stronger
support to private businesses and SMEs to ease their
financing woes and promote the integrated development of
businesses of all sizes.
The private sector in China, which is mainly composed of
SMEs accounting for 90 percent of all businesses, now
contributes more than 50 percent of tax revenue, over 60
percent of GDP, more than 70 percent of technological
innovations and over 80 percent of urban employment. Private
businesses have become a key driving force for economic
growth and social progress.
¡°Intensified support for growth of the private sector,
especially SMEs, helps enhance the internal dynamism for
economic growth,¡± Premier Li said. ¡°To boost the private
sector of the economy and micro and small businesses, it is
crucial to create a level-playing field, especially in
property protection and market access for these businesses
to compete in a law-based, neutral environment.¡±
Efforts will be made to foster a fair and convenient
business environment. The views of businesses must be heeded
in deciding business-related policies, and reasonable
transition periods should be arranged. Businesses of all
sizes and all types of ownership will be treated as equals
in the tendering, land use and other respects under the
principle of competitive neutrality.
Unless otherwise stipulated, all restrictions on the minimum
registered capital and the equity structure of private firms
will be removed when the firms in question invest in
resources development, transportation and public utilities.
Stronger innovation capacity will be supported. Catalogues
of recommended products and services will be issued to help
high-tech SMEs gain better access to the market. Private
firms will also be supported in participating in the R&D of
core technologies and the formulation of national standards.
Deeper tax and fee cuts will be introduced. Financing
services will be improved. The required reserve ratio cuts
targeting inclusive finance will be refined. The re-lending
policy targeting small firms will be expanded to qualified
small and medium-sized banks and new-type internet banking.
The permitting processes for the listing of private firms
and re-finance will be accelerated. Asset management
products and insurance funds will be employed in addressing
the risks of equity ¡ª backed mortgage of listed private
The lawful rights and interests, including their safety and
property, of private entrepreneurs will be protected in
accordance with the law, the meeting on Dec 24 urged. No
government department, public institution or State-owned
enterprise should defer contractual payments owed to private
Premier Li stressed the importance of keeping policies
well-coordinated, consistent and credit-worthy to provide
businesses an enabling environment and anchor market
China gears up for upcoming New Year, Spring Festival
BEIJING ¡ª Transport authorities have been told to
thoroughly prepare for the upcoming busiest travel season,
the New Year and Spring Festival holidays, according to an
official directive published on Dec 23.
Administrations of railway, highway, waterway, civil
aviation and urban public transport have been ordered to top
their capacity and prioritize migrant workers and students,
according to a directive issued by the general offices of
the Communist Party of China Central Committee and the State
The transport authorities should step up efforts to crack
down upon ticket scalpers and dangerous driving and try
their best to prevent serious traffic accidents and traffic
jams, the document said.
The directive also ordered authorities of civil affairs to
take good care of disadvantaged people, commercial
departments to maintain market order, and the workplace
safety authorities and the police to look out for serious
public security accidents.
Senior officials were warned against violations of the
Party¡¯s frugality rules during the upcoming festivals, such
as spending public money on expensive dinners, handing out
and taking gifts, and holding luxury ceremonies.Dec.25,2018
Premier calls for joint efforts from all countries
¡°In its 40 years of reform and opening-up, China has
taken both developed and developing countries¡¯ development
as its opportunity,¡± Premier Li Keqiang said while meeting
with representatives at the third Understanding China
Conference on Dec 17.
Over the past few years, China has learned a lot while
expanding its opening-up and strengthening all-around
cooperation with other countries. And China is willing to
further expand its opening-up, and reinforce complementary
advantages with other countries, achieving common
development and prosperity, the Premier said.
Premier Li also heard speeches from former Mexican president
Ernesto Zedillo, former British prime minister Gordon Brown,
former Danish prime minister Helle Thorning-Schmidt, former
Greek prime minister George Papandreou and former World
Trade Organization director-general Pascal Lamy, and
answered their questions.
The Understanding China Conference is an important platform
for the world to understand China¡¯s development. More than
30 former politicians, strategists, entrepreneurs and
scholars attended the conference.
The delegates shared their concerns about the current
Zedillo said that world politics and the economy are facing
Schmidt called for strengthened dialogue and cooperation in
the era of globalization to make contributions to human
Brown said that countries should join hands and promote the
reform and improvement of international rules, avoiding a
lose-lose situation due to protectionism.
Achievements in world peace and poverty alleviation over the
past 70 years mainly benefited from multilateralism, free
trade and a rules-based international order, the Premier
responded. He added that the world should reinforce
multilateralism and free trade under the complicated
political and economic situation, and solve the problems
arising in globalization and world trade in light of
He said it is necessary to uphold the purposes and
principles of the UN Charter, safeguard the framework and
basic rules of the WTO, and solve problems through reform,
rather than reversing globalization or even interrupting
Reform needs joint efforts from all over the world, he
China supports the reform and improvement of the WTO rules
to advance with the times, and the reform must stick to the
general direction of free trade, accommodate the concerns
and interests of all parties, defend the development rights
of developing country members, and narrow the gap between
the North and the South, the Premier said, while responding
to Lamy about how to reform the WTO.
¡°No matter what kinds of contradictions or frictions, the
basic direction of safeguarding lasting peace and common
prosperity and development of the world should not be
violated,¡± the Premier said, quoting a Chinese saying that
minor principles should be subordinated to major ones.
This basic direction is the major principle, because
everyone wants a better world, he added.
According to Zedillo, the third Understanding China
Conference was held at the right time, as China is
celebrating the 40th anniversary of its reform and
opening-up. Brown congratulated China on its great
achievements in economic development, poverty reduction and
education since the reform and opening-up policy was
Premier Li said China has seen remarkable achievements over
the past four decades, which brought benefits to not only
the Chinese people but the world at large, and was the
result of painstaking efforts made by the Chinese people.
As it did in the past, the country¡¯s development will rely
on reform and opening-up in the future, the Premier said,
adding that China will continue to promote reform and
opening-up, and make efforts to create a level-playing field
for both domestic and foreign companies and develop an open
economy at a higher level.
China has become the second-largest economy in the world,
but its per capita income is still below the world average,
he said. According to current standards of any international
organization, China remains a developing country, which is
quite special from either a historical or a global
¡°Development is the foundation of and key to addressing all
problems in China,¡± the Premier noted. ¡°China will continue
to pursue economic development as its central task and
properly handle its internal affairs to maintain stable
economic operation and boost high-quality development.¡±
Premier urges efforts from all countries
¡°I¡¯m paying close attention to some major economies, whose
fluctuations are never gains for the Chinese economy,¡±
Premier Li said. ¡°On the contrary, I hope other countries
could regard China¡¯s development as an opportunity.¡±
A complete global industrial chain has been formed with the
development of globalization, and it will suffer if any part
of it goes wrong, the Premier said, adding that China has
become a key part of the chain, and is providing
irreplaceable energy to it.
¡°The prosperity of human society is not a zero-sum game, but
the result of mutual development, so China is willing to
complement its advantages with other countries to achieve
win-win cooperation,¡± Premier Li added.
Responding to a question by Schmidt concerning IPR
protection, the Premier said China will further improve
related laws and regulations, strengthen the crackdown on
IPR infringement, and will never break international rules
in this field.
¡°We should continue to abide by the rules and consensuses we
made in the past, push on reform and improve the global
governance system,¡± Premier Li stressed.
China to promote competitive sports industry
The State Council released a circular to speed up
development of the competitive sports industry, in an effort
to tap consumption potential, improve livelihoods, and build
a new driver for economic growth.
According to the circular, by 2025, the scale of the
competitive sports industry will reach 2 trillion yuan, and
an industrial system with abundant products, reasonable
structure, and balanced development should be established.
A number of cities and clusters will be built for sporting
events and performances, and 100 influential sports events
will be organized.
Meanwhile, a group of competitive sports enterprises will be
supported, with 100 brands built with independent
intellectual property rights, making the industry an
important force for social and economic development.
As the circular stated, the nation will develop professional
sports, with particular emphasis on football, basketball,
volleyball, table tennis, badminton, and ice hockey.
Irrational investments and disorderly competition should be
Top international competitions with popular brand
recognition and a wide market potential will be introduced,
and amateur sports events such as marathons, martial arts,
and outdoor sports will be supported.
As the Beijing Winter Olympics approach, ice and snow sports
will also be promoted, the circular said.
To optimize the market environment, efforts are also pledged
to reform the commercial system, cultivate independent and
legitimate industrial organizations, encourage consumption
in sports events with better fan etiquette, and promote
scientific planning and operation of sports venues.
Tourism, traffic, entertainment and other support services
are also stressed in the circular.Dec.20,2018 from:english.gov.cn
Premier Li urges easing VC firms¡¯ tax burdens
Premier Li Keqiang has called for efforts to reduce tax
burdens on individual partners of Chinese venture capital
firms at the State Council executive meeting on Dec 12.
The Premier also urged for improvements in preferential tax
policies for venture capital funds.
Following his remarks, a decision was made to introduce more
income tax incentives to promote venture capital investment
and increase support for innovation and entrepreneurship.
China¡¯s venture capital industry, ranked second in the world
in terms of scale, plays a significant role in innovation
and entrepreneurship as well as employment, and is of great
importance to capital market development, Premier Li said.
As small and micro-sized enterprises still encounter
difficulties in financing, many have received funding from
venture capital, he added.
He called for the continuing promotion of employment driven
by entrepreneurship, with more support from the government
pledged at the meeting.
Meanwhile, the market was also encouraged to play its role
to raise efficiency of innovation and entrepreneurship, and
expand employment and commercialization of research
It was decided at the meeting that venture capital income
tax will be calculated on a single investment fund from Jan
1 next year, as 70 percent of seed investments was
For individual partners, incomes from share transfer and
dividends of taxable funds will be subject to a 20 percent
individual income tax.
Venture capital firms¡¯ income tax can also be levied based
on annual incomes, and incomes of individual partners will
be subject to a progressive rate of five to 35 percent.
The policy will be in place for five years, in an effort to
reduce tax burdens for individual partners of venture
¡°The overall principle is to reduce tax burdens for
enterprises to send a clear signal and stable expectation to
the market,¡± Premier Li said.
China grants more support to local governments with good
The Chinese government will increase the number of
incentive measures to local governments scoring obvious
results in implementing major policies from 24 in 2016 to
30, according to a circular released by the State Council on
Compared to the former 24 items, the government added nine
incentive measures, removed three and improved the 21
measures that remained.
Those local governments will be given priority treatment on
development projects, pilot reforms, and use of funds,
according to the circular.
Local governments with remarkable achievements in business
reform will be included in related pilot programs first, and
those largely promoting foreign trade and foreign investment
will be supported with precedence in growing bases for
foreign trade transformation and upgrade, the circular said.
Eligible projects in a provincial region, where annual
fixed-asset investment retained stable growth and investment
projects performed well within the budget of the central
government, would be granted certain investment funds within
the central budget, the circular stated.
Provinces, autonomous regions and municipalities directly
under the central government that performed well in fiscal
management will be given incentives to support model cities
In provincial regions that met the annual target in
transportation construction, put in place local investment
and rolled out effective measures in bringing in private
capital, eligible local transportation construction projects
will be placed on top of the three-year rolling plan,
according to the circular.
Also, those that performed well in financial risk control,
building sound financial order and protecting financial
consumers¡¯ rights, will be given support to conduct pilot
projects in financial reform, the circular stated.
All departments are asked to put the incentive measures in
place and improve assessment of local governments¡¯ work in
inspection. Local governments that win praise are required
to build a work mechanism to implement those incentive
measures, according to the circular.Dec.13,2018
Yingkou Area of Liaoning Free Trade Zone was commended by
The general office of State Council recently conducted
the fifth major inspection on the implementation of major
decisions and arrangements, and commended the typical
practices found in the inspection. Yingkou Area of Liaoning
Free Trade Zone was listed as one of the areas with
experience in continuously optimizing the business
environment through institutional innovation.
State Council promotes stable employment
The State Council emphasized stable employment in a
circular released on Dec 5.
The circular said that enterprises with no or few layoffs
can get back 50 percent of actual unemployment insurance
premiums paid in the previous year.
It also stated that governmental-secured financing
institutions should provide more support to small and micro
enterprises with a lower rate of security.
Self-employed entrepreneurs can apply for guaranteed loans
for entrepreneurship of up to 150,000 yuan, and small and
micro enterprises with 25 percent of their employees hired
as required by the loan could get up to 3 million yuan.
Meanwhile, authorities were urged at all levels to relax
requirements for application of guaranteed loans, the
The State Council also encourages the establishment of
start-up incubators to provide low-cost venues, guidance and
policy support for entrepreneurs, and those that perform
well will be rewarded.
Trainee subsidies will be extended from unemployed graduates
to unemployed youth aged 16 to 24, according to the
Weak companies are encouraged to conduct on-the-job training
for employees, the circular said, adding that colleges,
vocational training institutions, and qualified enterprises
are encouraged to carry out vocational and entrepreneurship
training for the unemployed.
Those with vocational qualification certificates can apply
for skills promotion subsidies, and the condition will be
relaxed from three years payment of unemployment insurance
to one year, according to the circular.
The unemployed can register at the public employment service
agencies of their permanent residences, and enjoy local
employment and entrepreneurial services, employment support
policies, and tax incentives.
Eligible unemployed persons also can receive unemployment
insurance benefits, and laid-off workers with financial
difficulties will be offered interim living subsidies.
Local governments at all levels should play an effective
role in promoting employment in the region, the circular
The circular also urged relevant departments to ramp up
publicity about the policies, optimize workflow, and
strengthen supervision, ensuring that recipients can benefit
from the policies and the funds.
The social responsibilities of enterprises also are
mentioned in the circular. Dec.5 2018, from:english.gov.cn
China¡¯s January-October industrial profits up 13.6%
China¡¯s major industrial enterprises achieved a total
profit of 5.52 trillion yuan ($795.4 billion) from January
to October, up 13.6 percent year-on-year, data showed on Nov
The figure was down 1.1 percent compared with that from
January to September and it came from weakening demand
caused by the China-US trade frictions.
¡°There are signs that overall demand is weakening. That
could lead to production decline and falling profits,¡± said
Xu Wei from Development Research Center of the State
In October alone, the total profits of China¡¯s major
industrial enterprises with annual revenue of more than 20
million yuan (about $2.89 million) increased 3.6 percent
year-on-year to reach 548.02 billion yuan ($78.97 billion),
0.5 percentage points lower than last month.
Analysts attributed the slowdown to easing factory-gate
inflation, despite a strong rebound in output.
Profits of major industrial enterprises in the first ten
months registered a decrease of 1.1 percentage points
compared with last year, but remained a steady growth on the
whole, according to He Ping, from the Industrial Division of
the National Bureau of Statistics (NBS).
Those with more new profits were heavy industries like
steel, petroleum, chemical, and building materials. The
Steel industry, for example, enjoyed a profit increase of
63.7 percent from January to October.
The debt-asset ratios of major industrial firms dropped 0.5
percentage points year-on-year to 56.7 percent by the end of
October. Nov.30,2018, from:english.gov.cn
State Council reshuffles National Textbook Committee
The State Council announced the reshuffle of the
National Textbook Committee on Nov 28, appointing
Vice-Premier Sun Chunlan as the head.
Minister of Education Chen Baosheng, Vice-Minister of
Publicity Department of the CPC Central Committee Wang
Xiaohui, and Deputy Secretary General of the State Council
Ding Xiangyang will serve as deputy heads of the committee.
Deputy Minister of Education Zhu Zhiwen will serve as
Group members are senior officials from State Council
departments and experts from academic institutions across
The group office was set up at the Ministry of Education.Nov.28 ,2018, from:english.gov.cn
Measures rolled out for further reform, innovation in pilot
The Chinese government has rolled out a series of
measures to support pilot free trade zones and deepen reform
and innovation, according to a circular released on Nov 23.
The 53 measures improving the investment environment, trade
facilitation, financial innovation and the human resources
sector can help improve the quality of pilot FTZs, according
to the circular.
To improve the business environment, the ratio requirement
for foreign technical personnel in foreign-invested
construction and engineering design enterprises, as well as
restrictions on recruitment agencies, will be relaxed.
Also, land use for pilot FTZs in some provinces and
municipalities should be given priority in the overall
In an effort to facilitate trade, qualified pilot zones will
be encouraged to conduct pilot programs on parallel import
The circular also stressed financial innovation to serve the
real economy. Efforts should be made to simplify
administrative approval procedures for insurance branches,
and establish and improve the information sharing system
about enterprises¡¯ demand for insurance in pilot FTZs, the
Pilot practices in the human resources sector were also
encouraged. The authority to approve Sino-foreign joint
ventures and wholly foreign-owned agencies with talent
intermediary service in pilot FTZs will be delegated to
local authorities in the zones, according to the circular.
The circular also urged local governments and all related
departments to put importance on improving construction and
management of pilot FTZs, and promote implementation of
those measures.Nov.22,2018, from:english.gov.cn
New patent agency regulations issued
The amended patent agency regulations, which were passed
at the State Council executive meeting on Sept 6, were
released on Nov 19 according to a State Council decree
signed by Premier Li Keqiang.
They will be put into effect on March 1, 2019.
The regulations are aimed at standardizing patent agent
behaviors in order to protect the legitimate interests of
agencies and agents.
The State Council department in charge of patent
administration shoulders management and supervision of
patent agency nationwide, the regulations state.
The regulations set certain rules in terms of regulations on
agencies and agents. For example, the organization form of
patent agencies shall be a partnership or limited liability
company, among others.
Chinese citizens with science and engineering majors in
degrees higher than junior college are eligible to
participate in the national examination for patent agents,
the regulations read.
As to agent practice, it was stated agencies and agents are
liable for keeping secrets for creations they have knowledge
of, except for those patents already published.
Illegal behavior will have consequences. Qualification
certifications will be revoked if obtained via dishonest
means, and fines up to 100, 000 will be imposed if agencies
let out the content of their bailers¡¯ creation, to give some
Foreign patent agencies setting up representative
institutions in China shall first be approved by the State
Council¡¯s patent administration department, according to the
regulations. Nov.20,2018, from:english.gov.cn
Leading group for 2nd pollution census reshuffled
The State Council released a circular on Nov 12, stating
a national group for the second census on pollution source
will be readjusted and renamed.
The leading group will be led by Vice-Premier Han Zheng,
with three deputy heads ¡ª Ding Xuedong, deputy secretary
general of the State Council; Li Ganjie, minister of ecology
and environment; and Ning Jizhe, head of the National Bureau
of Statistics.Nov.15,2018, from:english.gov.cn
Multi-pronged measures to help ease financing woes of small
China will make more targeted efforts to boost the
financial sector¡¯s support for the real economy and tackle
financing difficulties for small and micro businesses, the
State Council¡¯s executive meeting chaired by Premier Li
Keqiang decided on Nov 9.
The meeting heard a report on delivery of the policies
regarding accessible and affordable financing for micro and
The Chinese government places great importance on financial
services targeting micro and small businesses. President Xi
Jinping stressed the need for better financial services and
smooth channels for financial services to flow to the real
economy, especially smaller companies. Premier Li Keqiang
underlined the importance of smoothing the policy
transmission channels with targeted measures and encouraging
financial institutions to raise the share of loans to micro
and small companies and cut their financing costs.
The People¡¯s Bank of China, China¡¯s central bank, has
conducted targeted cut to required reserve ratio (RRR) four
times this year, releasing a liquidity of 2.3 trillion yuan.
By the end of September, outstanding loans for micro and
small firms totaled over 33 trillion yuan, up by 11.4
percent year on year.
¡°Government departments are encouraged to take a
multi-pronged approach, and we must waste no time in helping
small firms tackle their liquidity difficulties,¡± Premier Li
said. ¡°No loans extended should be willfully withdrawn.¡±
Greater efforts will be made to enhance financial services
for the private sector, especially micro and small firms.
Financing channels will be widened. The scope of qualified
collateral for the Medium-term Lending Facility (MLF) will
be expanded to cover loans for micro and small firms with a
credit quota of up to 10 million yuan per company. Support
will be given to more firms for equity and bond financing.
Financial institutions will be encouraged to make their
lending businesses to micro and small firms part of the
internal performance evaluation, and allocate corresponding
The meeting urged hitting the target of lower lending rate
for micro and small firms. Major commercial banks were
called upon to work hard to cut their average lending rate
by one percentage point in the fourth quarter compared with
the first quarter, and any unnecessary procedures or
surcharges in financing will be removed. The meeting also
called for effective measures to prevent credit risks.
Financial institutions will be encouraged to take
substantive measures to further tilt policies in favor of
micro and small firms as well as other private companies,
Premier Li said.
The government must also provide support in terms of
guarantee and taxation, he added.
The meeting also discussed how to better leverage
government-managed guarantee funds to make more financial
resources available to micro and small companies. It was
decided at the meeting that supporting agricultural and
rural development as well as small companies should be the
primary business of all government-managed guarantee and
re-guarantee institutions, with priority given to micro and
small firms as well as entities engaged in agricultural and
rural development with a guarantee volume of up to 5 million
yuan per entity.
Financing costs will be lowered. The State Financing
Guaranty Fund should not set its guarantee fee rate higher
than provincial institutions. Risks should be shared, with
both the State Financing Guaranty Fund and financial
institutions shouldering no less than 20 percent of risks.Nov.9,2018, from:english.gov.cn
Intensive platform of government websites on pilot run
The State Council issued a circular for the pilot run of
intensive platforms of government websites.
The move is set to integrate scattered websites, connect
data, and resolve inconveniences through intensive platforms
built on a unified information and resource base.
The circular called for active application of new
technologies, coordinated top-level design, strict budget
and project management, and stable progress in the pilot
According to the circular, intensive platforms should be
completed before the end of December 2019 in 10
municipalities, regions, and autonomous regions.
Intensive platforms should be built with unified standards,
technical platforms, security control, and maintenance, for
integrated and connected data, services, and application,
the circular stated.
The intensive platforms should be able to support management
of websites, columns, resources, authorization, content
release, interaction, user registration, complaint report,
security control, and other functions necessary for
government websites and services.
Construction of the pilot platforms should set requirements
on information classification, formats, and interfaces, and
establish standards on data, for unified resource usage and
monitoring, the circular said.
Meanwhile, a unified information and database should be
built, featuring scientific classification, collective
management, and sharing, with the goal of resource
utilization across websites, systems, and levels.
Local government service platforms should be connected with
the intensive platform of the region to provide unified and
convenient information services for the public.
The platforms should enhance security levels with
preferential procurement of domestic hardware and software,
and IPv6 will also be supported, the circular stated.
Govt to issue policies easing businesses¡¯ concerns
The State Council released a document on Nov 8 focusing
on improving the business environment, urging policies to be
accurately carried out regarding easing enterprises¡¯
Fairness is highlighted on the list of priorities. A revised
negative list must be finished and put into practice by the
end of 2018, which will lower the market threshold for
social capital in civil aviation, railroad and other areas,
and give the green light to more projects that represent
A slew of favorable policies to help relieve financing
difficulties for medium-sized, small and micro enterprises
should be issued and implemented in a timely manner, local
protection and administrative monopolies should be
eradicated, and government credit must be enhanced, as
requested in the document.
Opening-up is set to be increased to a higher level. It is
asked that access limitation outside the negative list for
foreign investment be canceled before next March.
Large-scale foreign investments eligible for major project
development plans will receive support such as land and
sea-use approval procedures. Quickened custom clearance
procedures and export rebates are also urged.
Moreover, cutting red tape in administrative approval must
be stepped up, and a unified government service mode should
be spread nationwide.
Fees will be reduced in a more extensive way, especially in
logistics, certification, inspection and testing and public
use sectors. Illegal charges from industry associations,
intermediate agencies and institutions under government
departments should be stopped, so as to eliminate
unreasonable margins for enterprises. The burden of the
social insurance rate also needs to be cut down for
Meanwhile, protection to intellectual property rights will
also be scaled up. The censoring period for trademark
registration should be compressed to six months, and
regulations over law enforcement in online shopping, export
and import should be formulated before the year¡¯s end.
Divisions of responsibility for supervision and organization
are made explicit to ensure the policies are thoroughly
China advances to global top 50 in business climate
China is now one of the top 50 economies in the world
for ease of doing business, due to a record number of
reforms carried out last year, according to the World Bank
Group in its annual doing business report released on Oct
¡°China advanced to a global ranking of 46 this year, up from
78 last year, as the country implemented the largest number
of reforms in the East Asia and Pacific region,¡± the report
Bert Hofman, World Bank country director for China, said:
¡°China has made rapid progress in improving its business
climate for domestic small and medium enterprises in the
past year. The progress signals the value the government
places on nurturing entrepreneurship and private
China¡¯s reforms in areas including cutting administrative
red-tape earned the country a spot in this year¡¯s top 10
global improvers, according to the report.
Progress made in the areas of starting a business and
getting electricity was particularly impressive.
Since last year, three procedures were removed and
consequently it now takes 9 days to start a business, on par
with most OECD high-income countries.
¡°Beijing is now one of only two cities in the world where
the process of starting a business is completely free. China
is now ranked 28 in the area of starting a business,¡± the
Getting an electricity connection is also entirely free in
China. Japan and the United Arab Emirates are the only two
other countries in the world to have this distinction. As a
result, China has earned a global rank of 14 in the area of
China also remains one of the best economies in the world to
resolve a commercial dispute. It takes 496 days and costs 16
percent of the value of the claim, far better than the OECD
high-income average of 582 days and 21 percent.
Despite progress made since last year, China still has room
for improvement in terms of dealing with construction
permits, with a global rank of 121 in the area.
Premier Li underlines China-Japan relations
Premier Li Keqiang held a talk with the visiting
Japanese Prime Minister Shinzo Abe in Beijing on Oct 26.
Premier Li said China and Japan are important neighbors, so
developing a long-term healthy and stable relationship is in
accordance with the benefits of the two countries and its
people, and also has huge significance to the region and the
international community. China attaches great importance to
bilateral relations and President Xi Jinping will also meet
with the prime minister soon, he said.
On the basis of four political documents between the two
countries, including China-Japan Treaty of Peace and
Friendship and Sino-Japanese Joint Statement, China is glad
to join hands with Japan to promote the new development on
back-on-track bilateral relations and will try to achieve
further development, said the Premier.
He said Prime Minister Shinzo Abe has expressed positive
views many times toward Sino-Japan relations, so he hopes
the two countries could cherish and secure the positive
trend in bilateral ties, strengthen sound interactions,
manage historical issues, Taiwan question and East China Sea
issue to promote the continuous improvement of bilateral
China is also willing to carry out dialogues with Japan in
political and economic fields, strengthen policy connection
and coordination, deepen cooperation in tech innovation,
energy saving and green development, medical field and
senior care, finance, disaster prevention and agriculture,
making the third-party market a new pillar for the pragmatic
cooperation of the two countries, said the Premier.
He called for boosting the establishment of related projects
as soon as possible through well-organized dialogues on
innovation. Premier Li also urged the two sides to open the
direct liaison hotline under the China-Japan maritime and
air liaison mechanism, increase the communication between
maritime law-enforcement institutions, making East China Sea
a place of peace, cooperation and friendliness.
Efforts should also be made to promote the cooperation on
judicial law-enforcement, exchanges on teenagers, sports and
local fields, and effective measures to facilitate the
exchanges of people in the two countries, he added.
Under the current international background, China and Japan,
as major economies of the world, should jointly safeguard
multilateralism and free trade and promote the establishment
of an open world economy, said the Premier.
Efforts should be made to accelerate negotiations on
China-Japan-ROK free trade zone and the Regional
Comprehensive Economic Partnership (RCEP) to facilitate
regional trade and investment.
Abe said, Premier Li¡¯s visit to Japan this May has brought
bilateral ties back to normal, which should be taken as a
chance to start a new era of China-Japan ties, featuring
cooperation instead of competition.
China and Japan are important neighbors and strategic
partners without threats for each other, he said, adding
that China¡¯s development is an important opportunity for
Japan is willing to strengthen high-level exchanges with
China and expand cooperation in the fields, such as economy
and trade, investment, finance, innovation, third-party
market, teenagers, sports, and regional cooperation on the
basis of the four political documents between the two sides,
Cooperation between China and Japan is the current trend,
and is helpful to solve common concerns facing the whole
world said the prime minister.
The two sides should work hard to promote the RCEP
negotiation to achieve practical results, enhance the
establishment of free and fair international economic order
and contribute to free trade and world economic development.
During the meeting, both sides also exchanged ideas on
international and regional issues of common concerns.
After the meeting, the two prime ministers witnessed the
signing of cooperation agreements on politics, innovation,
finance, customs, and sports.
Before the meeting, Premier Li held a welcome ceremony for
Abe at the Great Hall of the People.
State Councilor and Foreign Minister Wang Yi, Vice-Chairman
of Chinese People¡¯s Political Consultative Conference (CPPCC)
Yang Chuantang, and CPPCC Vice-Chairman and Head of the
National Development and Reform Commission He Lifeng
attended the meeting.
More enabling business environment to be created
The government will do more to resolve the concerns of
businesses identified during State Council inspection tours,
ensure full delivery of all pro-business policies and build
a national Internet Plus regulation system to make
government regulation smarter, more standardized and better
targeted, the State Council decided during an executive
meeting chaired by Premier Li Keqiang on Oct 22.
The government places high importance on improving the
business environment. President Xi Jinping stressed the need
to improve the investment and market environment, cut the
cost of market operations and foster a stable, fair,
transparent and predictable business environment. Premier Li
pointed out that it is critical to deepen the reform of
government functions for notable improvement in the business
environment to improve market exceptions and boost market
¡°We need to foster a market-driven, law-based business
environment that meets international standards,¡± Premier Li
said. ¡°The reform of government functions in the past
several years has delivered real benefits to market
entities. The international community also regards the
improvement of our business environment as an important
condition for cooperation with China.¡±
The government must redouble its efforts for a more enabling
business environment by resolving the pressing concerns of
businesses, delivering on all policy incentives and
eliminating the obstacles to business development to bolster
corporate confidence and competitiveness, those at the
Market access restrictions on private investors will be
further eased. An updated version of the market access
negative list will be released and fully implemented by the
end of the year. All market access restrictions on foreign
investors that are not on the negative list will be
eliminated by next March, creating a level playing field for
investors from both home and abroad.
The number of items subject to government approval will be
cut. All existing items requiring government approval will
be thoroughly reviewed, and a list of administrative review
items will be released by the end of next March when any
administrative review conducted outside the list¡¯s purview
will be seen as a breach of regulation.
The reviewing procedures for corporate investment will be
further streamlined. Measures for reforming the process of
business registration cancellation will be formulated by the
end of the year.
The meeting also urged reducing the tax and fee burden on
enterprises, as well as their social security contribution
rate. More concrete measures shall be formulated in these
The government must enhance the efficacy of its services.
These services must be standardized. The items subject to
administrative penalty will be streamlined and measures to
regulate the exercise of discretion will be formulated. No
arbitrariness or a one-size-fits-all approach will be
allowed in law enforcement.
¡°There is a direct linkage between the state of a business
environment and efforts of the government,¡± Premier Li said.
¡°It is important that the government works out a law-based
list of items subject to government approval. Issuance of a
business license and that of administrative permits must be
To improve compliance oversight and build on the regulatory
approach of random selection of inspectors and market
entities to be inspected, as well as public release of the
inspection results, it was decided at the meeting that an
Internet Plus regulation system will be established based on
the national government service platform.
This will enhance oversight of the regulatory work of local
authorities and government departments, and help forestall
and detect lurking problems and cross-sectoral,
inter-regional risks by pooling and sharing information.
This system will be uploaded online with the national
government service platform by the end of next September.
¡°We must lose no time in building a ¡®nerve center¡¯ for
government regulation, and the Internet Plus approach is a
good way to start,¡± Premier Li said. ¡°Given the uneven
regulatory capacities across regions and departments and
lack of information sharing, the key to a successful
Internet Plus regulation platform is to ensure that all
information is shared and open to the public. This will help
level the playing field for all businesses.¡±
State Council adjusts leadership of openness in government
The national leading group for openness in government
affairs is to be reshuffled, according to a circular
released by the State Council on Oct 17.
State Councilor and Secretary General of the State Council
Xiao Jie will become the group leader, and Deputy Secretary
General of the State Council Peng Shujie will become the
Deputy Director of the State Council Information Office Guo
Weimin and 18 other officers from different ministries will
become members of the group.
The office for the leading group is located in the General
Office of the State Council, which will undertake the daily
work, make policy suggestions for promoting openness in
government, and implement decisions made by the leading
Any changes in membership need approval from the group
leader, the circular said.
Govt approves Hainan Free Trade Pilot Zone
A free trade pilot zone in Hainan was approved by the
State Council in a circular released on Oct 16.
According to the circular, the pilot zone will cover the
whole island of Hainan.
It also said the development and utilization of the land and
sea area must strictly abide by national laws and
regulations, as well as the integrated plan of Hainan
While intensively using the land and sea, uninhabited
islands should be used in strict accordance with the Law of
the People¡¯s Republic of China on Protection of Islands, it
The scope of special customs oversight areas and the
application of taxation policies in Hainan Free Trade Zone
will remain unchanged.
The Hainan provincial government, the Ministry of Commerce
and other related departments should carry out the
organization and implementation of the overall plan, the
Zhao Changfu meets with guests attending the 2018 national
conference on private enterprise cooperation
Wu Shaowei attended the meeting.
Last night, Zhao Changfu, secretary of CPC Yingkou
committee and director of the standing committee of the
municipal people's congress, met with guests from China
association for individual investors and the state
administration of market supervision who attended the 2018
national conference on private enterprises cooperation held
Yu Gongbin meets with entrepreneurs attending the 2018
national conference on private enterprise cooperation
Yesterday afternoon, mayor Yu Gongbin met with
entrepreneurs attending the 2018 national conference on
private enterprises cooperation.(Oct.011,2018)
Yingkou Beihai Economic Development Zone held a special
promotion meeting for health care in Beijing
From September 25 to 29, the provincial government
launched a series of activities to promote investment
promotion week in Beijing, during the time Beihai Economic
Development Zone of Yingkou, in combination with its own
industrial development reality, held a special promotion
meeting for "keeping good health in North East China " in
the afternoon of September 26 at Liaoning Building in
Vice mayor Weng yongcai attended the meeting and made a
comprehensive introduction on city's the urban construction,
development of medical and health industry advantages and
China to introduce more measures to facilitate foreign
The Chinese government will roll out more measures to
facilitate the delivery of major foreign-invested projects,
lower tariffs on some imported goods and streamline customs
clearance procedures at a faster pace, in an effort to
expand opening-up and foster a fairer, more convenient and
more enabling environment for foreign investment, it was
decided at the State Council executive meeting presided over
by Premier Li Keqiang on Sept 26.
The Chinese government places great importance on foreign
investment facilitation. President Xi Jinping has
underscored China¡¯s firm commitment to pursuing the
fundamental national policy of opening-up, promoting
high-standard investment, protecting lawful rights and
interests of foreign investors, and fostering a more
attractive investment environment. Meanwhile, Premier Li
Keqiang has emphasized on many occasions the pledge to widen
market access, give equal treatment to Chinese and foreign
companies, more effectively protect intellectual property
rights, and better facilitate foreign investments in China.
It was decided at the meeting on Sept 26 that an online
filing process will be introduced in regulating foreign
investment in China. Unified market access criteria will be
applied to both Chinese and foreign investment in areas
outside of the negative list. Large-scale foreign
investments eligible for major project development plans
will receive support on land and sea-use approval
procedures, and accelerated environmental impact assessment
and their logistic costs will be reduced.
More areas will be open to foreign investment. The
withholding tax deferral policy for reinvestment by foreign
investors in China will be expanded from the designated
encouraged projects to any areas and projects that are not
prohibited. The meeting also called for intensified
protection of intellectual property rights.
¡°This year marks the 40th anniversary of reform and
opening-up in China. Given the evolving situation at home
and abroad, it is important to firmly commit to fostering a
greater opening-up and attracting foreign investment to help
anchor market expectations,¡± Premier Li said.
Statistics from the Ministry of Commerce show that paid-in
foreign investment reached $86.5 billion between January and
August 2018, a 6.1 percent increase year-on-year.
More steps were approved at the meeting to cater to diverse
consumer needs and facilitate industrial upgrading. Starting
from Nov 1 this year, import tariffs on a total of 1,585 tax
items will be slashed. The average tariff rate for
high-demand products in domestic markets such as machinery
and industrial instruments will be cut, from 12.2 percent to
8.8 percent, textile and construction materials from 11.5
percent to 8.4 percent, paper and other resource-based
products and primarily processed goods from 6.6 percent to
5.4 percent. Tax brackets will be consolidated for goods in
the same or similar categories.
Tariff cuts introduced to date will help reduce corporate
and consumer tax burdens by nearly 60 billion yuan and lower
China¡¯s overall tariff rate from 9.8 percent last year to
More efforts will be made to expedite customs clearance. The
meeting decided that by Nov 1 this year, the number of
customs clearance documents subject to verification at ports
will be reduced from 86 to 48. The list of administrative
charges at ports will be released before the end of October.
Compliance costs for containers clearing will be reduced by
at least $100 by the end of this year.
Overhaul of fees must be completed without delay in order to
abolish unreasonable charges and cut compliance costs,
Premier Li urged at the meeting.
¡°Competent departments must make concerted efforts to
enhance oversight and treat foreign and domestic businesses
as equals,¡± he said.(Sep.28,2018)
Ten years after first spacewalk, China aims more ambitious
Exactly 10 years ago, Chinese astronaut Zhai Zhigang
emerged from the airlock, in space, of Shenzhou-7 spacecraft
and became the first Chinese to conduct a spacewalk.
Ten years on from Sept 27, 2008, astronauts at the China
Astronaut Research and Training Center have been training
hard in a neutral buoyancy pool, a very deep pool used to
simulate zero gravity in space, to prove the validity and
rationality of China¡¯s future plan for extravehicular
missions, and to prepare for future space missions.
China¡¯s current space lab, Tiangong-2, has been in orbit for
two years. However, it was designed more as a test bed for
technology rather than long-term space station and is set to
be decommissioned next year.
China is planning to launch a space station, much larger,
with a longer lifespan. Zhai¡¯s spacewalk lasted for 19
minutes and 40 seconds. However, for missions on China¡¯s
future space station, the spacewalk will be much more
frequent and complex. The Astronaut Center has designed
specific training for this.
¡°For our future space station, under our current plan each
spacewalk will last for about six hours,¡± said Yin Rui,
deputy commander of the astronaut system at the Astronaut
Center of China, ¡°This will bring a heavy workload and
difficult mission for our astronauts.¡±
So Chinese astronauts are training hard for future missions.
¡°Every maneuver needs to be perfect. We practice each move
thousands of times, so that we can complete every maneuver
even subconsciously,¡± said Chen Dong, who traveled to space
in Shenzhou-11 mission and stayed in Tiangong-2 space lab
for a month.
¡°There are margins for error. I mean, spacecraft engineers
have left margins for error for us. But we reduce that room
intentionally during training.¡±
However, more training means less time for family. China is
extremely tough when picking its astronauts, and even more
so when training them. Chen trained for six years before his
¡°One¡¯s time is limited. I think every astronaut has to make
sacrifices. I spent very little time with my family during
my six-year training,¡± Chen admitted. ¡°My wife had to carry
up all the family responsibility. I think families of
astronauts are also making sacrifices and their support is
also essential to China¡¯s space program.¡±
China¡¯s manned space program has made tremendous progress
since the first spacewalk.
In November 2011, unmanned Shenzhou-8 made China¡¯s first
space rendezvous and docking with the ¡°target spacecraft¡±
Tiangong-1. Less then a year later, Shenzhou-9 made the
first manned docking with the same spacecraft.
In June 2013, crews of Shenzhou-10 made a short-term stay on
Tiangong-1 and conducted 27 experiments on board. In
September 2016, China launched its first space station
Tiangong-2 and Shenzhou-11 docked with the space station a
month later with astronauts Jing Haipeng and Chen Dong, who
lived and conducted experiments aboard the space station for
a month. (Sep.27,2018)
China to further develop private economy
Premier Li Keqiang received three rounds of applause
during his opening speech at the 2018 Summer Davos Forum in
Tianjin on Sept 19, especially when he spoke about the
Premier Li reiterated that China will unswervingly
consolidate and develop the public sector of the economy,
while encouraging, supporting and guiding the development of
the nonpublic sector of the economy.
He also said that China will further implement and improve
policies and measures to support the development of the
private economy, and eliminate obstacles that hinder that
He added that the Chinese government will make more efforts
to ease market access for private enterprises.
The Chinese government has taken various measures to ease
difficult and costly financing for small and medium-sized
enterprises, and most among them are private enterprises,
the Premier said, adding that private enterprises not only
contribute more than 50 percent to the tax revenue of the
country, but also supply China¡¯s largest employment.
Xi calls for strengthening cooperation in Northeast Asia for
regional peace, prosperity
President Xi Jinping addresses the plenary session of
the fourth Eastern Economic Forum (EEF) held in Vladivostok
in Russia¡¯s Far East, on Sept 12, 2018. [Photo/Xinhua]
VLADIVOSTOK ¡ª President Xi Jinping called on countries in
Northeast Asia to seize the historical opportunity and
conform to the trend of the times to strengthen cooperation
in the Russian Far East and Northeast Asia for a better
future of the region.
He made the remarks while addressing the plenary session of
the fourth Eastern Economic Forum (EEF) in Vladivostok in
Russia¡¯s Far East on Sept 12.
¡°Under new circumstances, we should join hands and
strengthen cooperation to promote peace, stability,
development and prosperity in the region,¡± Xi told the
forum, which was also attended by Russian President Vladimir
Putin, Mongolian President Khaltmaa Battulga, Japanese Prime
Minister Shinzo Abe and Prime Minister of the Republic of
Korea Lee Nak-yon.
President Xi Jinping (3rd L, rear) attends the plenary
session of the fourth Eastern Economic Forum (EEF), together
with Russian President Vladimir Putin, Mongolian President
Khaltmaa Battulga, Japanese Prime Minister Shinzo Abe and
Prime Minister of the Republic of Korea Lee Nak-yon, in
Vladivostok in Russia¡¯s Far East, on Sept 12, 2018. [Photo/Xinhua]
Xi proposed that countries in Northeast Asia should build up
mutual trust to safeguard regional peace and tranquility;
deepen cooperation to achieve mutually-beneficial and
win-win outcomes; learn from each other to consolidate their
traditional friendship; and take a long-term perspective to
realize integrated and coordinated development.
¡°A harmonious, united and stable Northeast Asia with mutual
trust conforms to the interests of all countries and the
expectations of the international community, and is also
significant for safeguarding multilateralism and promoting a
more just and equitable international order,¡± Xi said,
noting that the international situation is now undergoing
profound and complicated changes with rising power politics,
unilateralism and protectionism.
The Chinese president said that the six Northeast Asian
countries account for 23 percent of the global population,
and their gross domestic product make up 19 percent of the
As a member of Northeast Asia, China has always upheld the
concept of peaceful development to create a harmonious and
friendly neighboring environment; participated in regional
cooperation in the spirit of mutual respect and in a
constructive manner; and endeavored to promote exchanges and
dialogues while taking into consideration the concerns of
all parties, Xi said.
¡°The Chinese side is willing to continue to work with all
other sides to constantly consolidate unity, build up mutual
trust, explore effective ways to maintain lasting peace and
stability in Northeast Asia, and make unremitting efforts to
achieve peace, stability and development in the region,¡± he
Xi said the regional countries should actively align their
development strategies, strengthen policy communication and
coordination, improve cross-border infrastructure
connectivity, promote trade and investment liberalization
and facilitation, jointly build an open regional economy,
and boost sub-regional cooperation to benefit the people in
¡°In this regard, the Chinese side supports the Asian
Infrastructure Investment Bank and the Silk Road Fund in
playing a greater role by guaranteeing the project fund,¡± he
Xi expressed the hope that the regional countries can expand
ways of communication, innovate forms of cooperation, and
facilitate the exchanges among the people of all age groups.
The President also called on the regional countries to
explore new models for coordinated development in Northeast
Asia, speed up scientific and technological innovation,
foster a resource-saving and environment-friendly industrial
pattern and way of life, and jointly tackle the regional
environment issues that all countries are facing.(Sep.14,2018)
Premier promises level playing field
Premier Li Keqiang promised a level playing field for
both domestic and overseas enterprises while meeting with
Darren Woods, CEO and chairman of ExxonMobil, in Beijing on
ExxonMobil discussed a $10 billion exclusively funded
petrochemical project in South China¡¯s Guangdong province
with the Chinese side.
Premier Li said that a thriving two-way investment mode
between China and the United States is conducive to both
parties, the stable development of the global economy, and
growth in international trade. Nations around the globe
should join hands to safeguard free and convenient trade, as
well as investment.
China is a huge market where investors can get a fair and
reasonable return, the Premier added.
ExxonMobil regards this investment as an important step
toward its long-term cooperation with China, Woods said,
adding that the company appreciates recent moves by the
Chinese government in opening-up, business environment
optimization and protection of intellectual property rights.
These measures will help China realize its development
goals, and provide broad opportunities for ExxonMobil and
other foreign enterprises, he said.
¡°The Chinese government will adopt a stricter intellectual
property protection system. If foreign companies encounter
infringements of intellectual property rights in China, they
can complain to relevant departments or to the State Council
directly. We will crack down on them according to law with
severe punishments,¡± Premier Li assured the foreign guests.
It will protect not only the legitimate rights and interests
of foreign-funded enterprises, but also the enthusiastic
Chinese science and technology personnel, thus promoting
transformation and upgrading of the Chinese economy, the
¡°Competition is welcomed and we will grow better from that,¡±
Woods responded when learning of the 10 billion-euro
investment from BASF Group of Germany to construct a fine
chemical integrated base in Zhanjiang, Guangdong province.
Competition creates a fair market, which incubates advanced
enterprises, the Premier concluded, saying that it is the
responsibility of the Chinese government to provide a level
playing field and continuously optimize the business
environment for all types of enterprises.
China hopes that US enterprises, including ExxonMobil, will
make an active move to expand their investment in this
country, and mirror China¡¯s reform and opening-up and
development to the world with an objective and fair voice.
China will further deepen reform and expand opening-up,
provide more convenience for foreign companies to invest in
China, and remain an ideal place for foreign investment, the
ExxonMobil is willing to boost China¡¯s manufacturing with
world-leading technologies and efficient products, and
conduct more long-term cooperation, Woods said, showing
confidence in the project.
Inspired by new policy, new energy vehicles on a roll
Workers assemble electric vehicles at a new energy
vehicle factory in Zhejiang province. [Photo provided for
Both sales and production of new energy vehicles in China
continued to rise in the first half of this year, and are
expected to sustain the growth momentum during the second
half, analysts said.
New energy vehicle sales increased 111.5 percent
year-on-year to 412,000 units in the first half, while
production rose 94.9 percent to 413,000 units, according to
data from the China Association of Automobile Manufacturers.
According to Kou Nannan, senior associate with Bloomberg New
Energy Finance¡¯s advanced transport sector, the upsurge in
new energy vehicles during the first half reflects the
¡°consumption in advance¡±, a response to Beijing¡¯s gradual
reduction of subsidies.
Kou expects the growth rate to be less drastic in the second
half. Manufacturers, especially those producing low-end
products, are likely to raise prices to avoid death due to
decline in government subsidies.
¡°Those making high-end products might maintain their prices
as subsidies for this sector have actually increased this
year,¡± he said.
Headroom for price cuts has been sufficient for certain new
energy vehicles, especially e-buses, as well as cost savings
through economies of scale and battery technology
According to a new policy, subsidies for new energy vehicles
with a driving range below 150 kilometers stopped from June
12, while vehicles with a 150 km to 300 km driving range
will receive minimal subsidies.
Battery power/weight requirements for receiving subsidies
have been also increased from 90 watt-hours/kilogram to 105
wh/kg, according to the new policy released by the Ministry
Authorities had said subsidy for new energy vehicles will
reduce in phases from 2017 to 2020, with tighter technical
Industry insiders said the subsidy cut, which is meant to
aid the industry¡¯s development in high quality segments and
avoid blind expansion, would further boost sales as the sum
accounts for only a small percentage of the cars¡¯ price
¡°The new policy will enhance energy density and upgrade the
industry,¡± said Cui Dongshu, secretary-general of the China
Passenger Car Association.
According to Fitch Ratings, thanks to policies like consumer
purchase incentives and license-plate restrictions, China¡¯
new energy vehicle market will expand steadily to meet its
sales target of 2 million units by 2020, from around 507,000
in 2016 and 777,000 in 2017.
However, the development of the new energy vehicles for the
medium- to long-term market will have to ensure advances in
battery technology and charging infrastructure, it said.
China has remained the world¡¯s largest new energy vehicle
market for three consecutive years, as the country
intensified efforts to encourage the use of such vehicles to
ease pressure on the environment by offering tax exemptions
and discounts for car purchases.
The government expects annual new energy vehicle output to
hit 2 million units in 2020, and sales to make up 20 percent
of the overall auto market by 2025.
Silk Road to Silk Railroad
With its origins in the Han Dynasty (207 BC-220 AD), the
Silk Road was an ancient network of trade routes that
extended from China, across Central Asia, as far as Europe.
Historically, the Silk Road was a key link between China and
the West. Along with it, not only goods but also ideas were
exchanged between the two great civilizations of Rome and
However, a trip along the ancient Silk Road was never a
romantic journey as the name suggests. While traveling
thousands of kilometers, merchants had to contend with
extreme climates and terrains as they had to cross
snow-capped mountains and vast deserts, among other
Due to such hardships, it was rare for anyone to undertake
the entire journey. Instead, goods would usually be carried
by teams of caravans, working in relays.
Time flies, today, the camel caravans have been replaced by
And goods are being shipped at a pace that the ancient
merchants could never have imagined.
Two thousand years ago, it would take a year for merchandise
to be transported between China and Europe. But today,
consumer goods from China can reach London in just 14 days,
thanks to the Silk Railroad ¡ª an international freight
railway network that connects China to cities across Europe.
A key stop on this network is Yiwu, in East China¡¯s Zhejiang
province. Today, the city is one of China¡¯s leading trade
Until recently, Europe bound goods from Yiwu would take two
hours by the road just to reach the nearest seaport in
China, followed by a two-month journey across the ocean.
Today, Yiwu is thriving, thanks to a direct overland rail
connection to Europe ¡ª the Silk Railroad.
One of the destinations is Madrid. The 10,000- kilometer
journey from Yiwu, across Kazakhstan, Russia, Belarus,
Poland, Germany, France and into Spain, takes 16 days,
compared to the six-week journey-time by sea.
The trains, when they return, carry cargoes that include
fine Spanish wines and other luxury items that are finding a
growing market in China.
The Yiwu-Madrid line and other rail routes that are being
established are carrying trade between China and Europe into
a new era of connectivity. (Sep.05,2018)
disputes to be settled legally
Regulation on prevention and settlement of medical
disputes, which was passed at the State Council executive
meeting on June 20, was recently promulgated.
The regulation is meant to protect the legitimate interests
of medical staff and patients by preventing and resolving
disputes to maintain order and ensure security in medical
It advocates mutual respect in medical treatment and the
rule of law in safeguarding rights. Fairness, justice and
promptness should be upheld in dealing with medical
Governments above the county level should enhance leadership
in tackling medical disputes, and include it in the
governance system of public security. A coordinating
mechanism should be established to divide responsibilities
among government departments, as required in the regulation.
Medical institutes and their staff are asked to put patients
first, giving them humane care. And medical institutes
should enhance training on related laws and professional
When disputes occur, medical staff and patients can pursue
the following: negotiating on a voluntary basis, applying
for mediation, asking for administrative conciliation,
filing a lawsuit with the people¡¯s court and other
approaches regulated by the law.
The regulation will be enforced starting on Oct 1, 2018.(Sep.04,2018)
Li: China to adopt stricter IPR protection system
Premier Li Keqiang said China will adopt stricter rules
to protect intellectual property rights, during his meeting
with Francis Gurry, director general of the World
Intellectual Property Organization (WIPO) in Beijing on Aug
Protecting property rights is the cornerstone of the market
economy, while protecting intellectual property rights is a
prerequisite for innovative development, according to
To protect IPR is to protect innovation and passion of
creative talent, which is of great importance to a nation¡¯s
development. And developing countries will not achieve
transformation without innovation, he said.
As the world¡¯s largest developing country, China is at a
critical stage of economic upgrading, said Premier Li,
adding that China will adopt a stricter IPR protection
system, in which acts of compulsory transfer of and
infringement on intellectual property rights will be
China rises to 17th in 2018 Global Innovation Index
Gurry presented Premier Li the 2018 Global Innovation Index
report released recently by WIPO.
¡°Congratulations to China for moving up another five spots
from last year. Since 2013, China¡¯s ranking has moved from
35th to 17th. I believe China will continue its
development,¡± Gurry said during the meeting.
¡°We are aware that China is a developing country, with a
long way to go to realize modernization. Chinese people are
expecting better lives. To meet their demand faster, an
important measure is to promote innovation,¡± Premier Li
The Premier said that in recent years, China has been
implementing an innovation-driven strategy and promoting
mass entrepreneurship and innovation. This can help gather
wisdom to push forward innovation, while creating a large
number of job vacancies. People can start their own
businesses through innovation, and also innovate through
¡°There is still a big gap between China and developed
countries at the moment. We are eager to learn advanced
technologies from developed countries. We are also willing
to let companies cooperate on paid-transfer of IPR through
consultations on an equal footing, based on respect for and
protection of IPR as well as commercial and market rules,¡±
he said. (Aug.30,2018)
medical reform to be cemented
Reform on medical care, insurance and medicine should be
reinforced to relieve the difficulty of receiving treatment,
Premier Li Keqiang said in a written instruction to a
national teleconference on medical reform in Beijing on Aug
Premier Li said the new round of medical reform has brought
significant achievement with Chinese special methods. This
is mostly due to contributions by reform participants and
medical staff, who have dedicated themselves to carrying out
medical reform and protecting the public¡¯s health.
In the new era, tough measures will be taken on the
integrated reform of medical care, insurance and medicine,
the Premier said. Breakthroughs must be made in reducing
extortionate drug prices, deepening reform on public
hospitals, improving basic healthcare insurance and the
tiered diagnosis and treatment system, as well as developing
Internet Plus healthcare.
All these efforts are being made to encourage society to
respect healthcare workers and value health, and to build a
healthy China, the Premier stressed.
Vice-Premier Sun Chunlan attended the meeting. She noted the
current reform needs more efforts to help policies settle in
and eliminate any major problems. Sustainable financial
input should be given to reform to bring real benefits to
the public and incentives to medical staff, then the
healthcare cause can welcome prosperity.
Local governments and related departments should coordinate
medical care, and insurance and medicine systems to enhance
the construction of a basic medical and health system with a
focus on addressing the issues, such as unbalanced medical
sources and expensive medical treatment, the vice-premier
Efforts should be made to accelerate the price reduction of
anti-cancer drugs, promote pilot work on national
centralized procurement of drugs, and improve basic medicine
system to squeeze drug prices and ensure quality and safety.
She also called for further reforms in medical service
prices, financial input and salary systems to improve
hospital management and performance appraisal, and mobilize
the enthusiasm of medical staff.
The vice-premier urged reforming medical insurance payment
methods and strengthening comprehensive medical assistance
to prevent patients and their families from falling into or
returning to poverty due to illnesses.
Allocation of medical resources should be optimized; there
should be an improved grassroots talent incentive mechanism
covering general practitioners and family doctors, and
social forces¡¯ participation in this move should be promoted
to provide qualified healthcare services for the general
public, according to the vice-premier. (Aug.28,2018)
Tailored measures to help financing for SMEs
China will improve the transmission mechanism of its
monetary and credit policies to ensure full delivery of
measures to make financing more accessible and affordable
for small and micro businesses, the State Council¡¯s
executive meeting chaired by Premier Li Keqiang decided on
The Chinese government attaches great importance to
financial services for small and micro businesses. President
Xi Jinping stressed that serving the real economy is the
central mission of the financial sector and underlined the
need for better financial services for micro and small
firms. Premier Li Keqiang said that employment and growth
prospects hinge on a vibrant micro and small business
community. He called for more effective and efficient
transmission channels for monetary and credit policies to
ensure that all policy incentives targeting SMEs are fully
¡°There is now a pressing need for the financial sector to
serve the real economy, micro and small businesses in
particular, as these businesses play a critical role in
creating jobs,¡± Premier Li said.
Making financing more accessible and affordable for small
and micro businesses has been on the agenda of the State
Council¡¯s executive meeting many times since the start of
this year. In June, re-lending and rediscount quota for
small companies and for agriculture and rural areas was
increased by 150 billion yuan ($23.11 billion). Application
requirements for such lending facilities were eased, new
lending formats were introduced, and the scope of qualified
collateral widened. In July, re-lending and rediscounts for
small companies and for rural areas rose by 19.1 billion
¡°There have been some new developments both internally and
externally this year, while financing difficulties facing
micro and small businesses are acutely felt,¡± Premier Li
said. ¡°It is imperative to smooth the transmission mechanism
of financial policies and keep our measures well-calibrated
to ensure that liquidity remains reasonably ample.¡±
The country will stick with prudent monetary policies and
refrain from resorting to a deluge of strong stimulus
policies, it was stressed at the meeting. The government
will work to improve the transmission mechanism of its
monetary and credit policies to ensure full delivery of
measures aimed at lowering financing costs for small and
More financing support will be given to small and micro
businesses, including setting proper time frames and options
for loan payment and shortening the time required for credit
approval for small and micro businesses, and increasing the
share of mid- and long term loans as appropriate.
An incentive mechanism linking performance assessment of
financial institution with the amount of loans they issue to
small and micro businesses will be established, and a more
accommodating approach will be exercised over the
loan-to-deposit ratio of financial institutions to further
motivate them to better serve small businesses.
Regulatory and evaluation mechanisms will be improved. An
indicator on small and micro businesses loans will be added
to the evaluation mechanism. Irregularities such as linking
loans with deposits and arbitrarily requiring the purchase
of financial products will be resolutely prohibited.
All policy incentives introduced must be implemented to see
results delivered as soon as possible, and it is important
to give equal emphasis to promoting development and staving
off risks and help ensure a better economic performance in
the remainder of the year, Premier Li stressed.(Aug.23,2018)
Inter-ministerial joint conference system on left-behind
The State Council recently issued a written reply to the
Ministry of Civil Affairs, in which permission was given to
establish an inter-ministerial joint conference system on
caring for left-behind children and securing the well-being
of children in need.
Under the leadership of the State Council, the system will
coordinate and conduct overall plans to help children who
are either left behind or living with difficulties. That
includes formulating related policies and measures,
presenting motions to the State Council, organizing and
steering daily routine work, and promoting ministerial
The conference system consists of wide-ranging ministries
and commissions, highlighting the Ministry of Civil Affairs,
the political and judiciary commission under the Central
Committee of the Communist Party of China, the Office of the
Central Cyberspace Affairs Commission, and the National
Development and Reform Commission.
Huang Shuxian, the minister of civil affairs, will serve as
the convener, with 26 members from other ministries and
A plenary session will be held once a year, presided over by
the convener or anyone entrusted by the convener. A
provisional session may be organized if instructed by the
State Council or called for by administrative work.
There should be a liaison¡¯s session prior to the plenary
session, which should take on the discussions on motions and
related matters to be presented to the plenary session. And
the latter should have minutes to specify items for
discussion. Significant matters should be presented to the
All member units should take on their fair share in
accordance with their respective duties, hinging on
organization by the Ministry of Civil Affairs. And the
office of the joint conference system should follow up with
the implementation of agreed items and report their progress
to all related members.(Aug.22,2018)
Tax cuts to benefit people far and wide
The State Council has long been introducing tax
reduction policies on a consistent basis. These measures
have ushered in ample benefits to market entities, as well
as citizens, which has helped people save a substantial
amount of money.
As Premier Li Keqiang stated at a press conference during
the two sessions this year, reduction on taxes and fees is
an out-and-out pragmatic reform by the government, which
should be pushed forward at full capacity. With less fiscal
revenue, more money will be saved for people at large.
According to the report on the final State accounts in 2017,
the lump sum of the annual newly-added tax reduction
outstripped 380 billion yuan ($55.23 billion).
When it comes to 2018, the figure will be larger than that
again for enterprises and citizens. It¡¯s worth noting that
there are two milestone dates in the process of realizing
the 800 billion yuan tax cuts, May 1 and July 1.
On May 1, the government rolled out a slew of VAT reform
policies that benefit both domestic and overseas
enterprises, which will effect a 400 billion yuan tax
reduction. Logistics enterprises were granted a 50 percent
reduction valid from May 1 to Dec 31, 2019 on urban land
utilization taxes and import tariffs on 28 drugs, including
cancer treatment medication, came into force on May 1.
On July 1, China introduced an average 8.8 percent tax rate
decrease on import tariffs for 1,449 taxable items that are
daily consumer goods. An average 46 percent tax reduction
was enforced on automobile products¡¯ import tariffs and a
preferential policy was carried out, benefiting venture
capital firms, personal angel investment at the seed stage
and technology start-ups with taxable income deduction on 70
percent of the investment volume. A preferential policy was
implemented catering to scientific and technical personnel,
for whom only 50 percent of the cash bonus translated from
professional technology achievements is subject to
individual income tax payment. A 50 percent reduction on the
vehicle purchase tax was put into effect for trailer
purchasers, which remains valid until June 30, 2021.
Additionally, a draft of the amendment to the Law on
Personal Income Tax was presented to the Standing Committee
of the National People¡¯s Congress on June 19 for discussion.
The amendment proposed raising the threshold of individual
income tax from 3,500 yuan to 5,000 yuan per month. In
addition, expenses on children¡¯s education, further
education and medical treatment for serious diseases, house
loan interest, and house rents and the like will be deducted
for the very first time.(Aug.14,2018)
Measures end unnecessary certificates
The Chinese government has rolled out measures with a clear
timetable to end unnecessary certificates, or certificates
with no legal basis, to bring convenience to citizens and
enterprises in handling government-related affairs,
according to a circular issued by the State Council in June.
It came after an announcement on relaxing market entry made
by Premier Li Keqiang during the news conference for the
first session of the 13th National People¡¯s Congress in
The circular urged departments and local governments to
study and offer advice on canceling or reserving
certificates item by item, and remove certificates no later
than the end of 2018, to ensure any license without a legal
foundation will be canceled.
For necessary certificates, a list of their legal bases,
issuing departments and process guidance should be
published, and any government organ is banned from creating
certificates beyond the list, according to the circular.
Any government unit issuing unnecessary certificates or
raising requirements should be investigated, and those who
cause adverse social impact should be held accountable.
Also, the circular stressed enhancing technical support for
information sharing among and within government departments,
to thoroughly address the problem.(Aug.14,2018)
State Council vows to cut red tape via better e-services
The State Council has vowed to cut red tape by building
a better national e-government service platform and
integrating online and offline service, according to a
notice issued in June.
A unified identity authentication system will be adopted for
online government services across the country.
E-government services will be extended to Weibo, WeChat and
the app platform. State Council departments are encouraged
to connect to the State Council app.
According to the notice, by the end of 2019, 90 percent of
government services at the provincial level should be
accessible online, and 70 percent of municipal government
services should be online.
On-site paperwork will be reduced and put online, such as
registration and making appointments.
On June 11, a complaint platform was opened at the State
Council website. People can use it to report any
inconveniences in government services.
Premier Li Keqiang also asked the State Council General
Office to launch inspections for the implementation of a
red-tape cutting campaign.
During the two sessions in 2018, the Premier pledged to ease
market access through a slew of measures, including cutting
the approval process for starting a business, reducing
permitting time for construction project, and building a
better e-government. (Aug.11,2018)
Lives improved since Government Work Report issued
Since the Government Work Report was released in March, many
promises in the report have been fulfilled. Social-economic
indicators are as expected.
Projected annual GDP growth rate: 6.5 percent
Actual GDP growth rate in first half: 6.8 percent
Projected rise in CPI: 3 percent
Actual half-year rise in CPI: 2 percent
Projected new jobs in 2018: 11 million
Actual new jobs created in first half: 7.5 million, or 68
percent of projected number
Projected urban unemployment rate in 2018: below 5.5 percent
Actual urban unemployment rate: 4.8 percent; the number is
below 5 percent for three months in a row
Cancel data traffic roaming charges
From July 1, domestic data roaming charges were canceled.
Provincial data were upgraded to domestic data, excluding
Hong Kong, Macao and Taiwan.
Raise personal income tax threshold, and add expense
deduction items for children¡¯s education and treatment for
In the draft amendment for personal income tax law, the
personal income tax threshold will be raised to 5,000 yuan a
month, with expense deductions for items such as children¡¯s
education and treatment for serious diseases, home loan
interest and home rent. The draft has been submitted for
review by the standing committee of the National People¡¯s
Lower import tariffs on automobiles, some everyday consumer
From July 1, import tariffs on automobiles and their parts
were reduced, as well as most-favored-nation tax rates on
some everyday consumer goods.
Continue raising basic pension for rural and nonworking
Minimum monthly pension for rural and nonworking urban
residents was raised from 70 yuan per person to 88 yuan.
Establish central adjustment system for employees¡¯ basic
pension funds to be used inter-provincially
From July 1, the central adjustment system for employees¡¯
basic pension funds to be used inter-provincially was
China gets tough on forex violations
BEIJING ¡ª China¡¯s foreign exchange regulator dealt with
1,354 forex-related violation cases in the first half of
this year, up 19.7 percent year-on-year, an official
statement said on July 24.
The State Administration of Foreign Exchange said in an
online statement that it fined and confiscated a total of
345 million yuan ($50.8 million), nearly 60 percent higher
than the same period last year.
Among those cases, 559 were committed by individuals, 455 by
financial institutions, while the rest were by enterprises.
The regulator has stepped up inspections of financial
institutions to ensure a healthy and orderly forex market.
The administration said it would continue to crack down on
market irregularities such as fraud and underground bank
cases to safeguard economic and financial security.
Fiscal, financial policies to bolster real economy
China will continue with stable macro policies and adopt a
combination of fiscal and financial measures in an effort to
boost domestic demand and bolster support for real economy,
the State Council¡¯s executive meeting chaired by Premier Li
Keqiang decided on July 23.
The government will give targeted and well-timed regulation
in face of external uncertainties and maintain that economy
performs within a reasonable range, adding that it will
firmly refrain from resorting to a deluge of strong stimulus
policies, the meeting announced.
The Chinese government puts developing the real economy high
on its agenda. President Xi Jinping underlined the
importance of improving the fiscal spending structure by
prioritizing funding in key areas and projects. In this
year¡¯s Government Work Report, Premier Li Keqiang stressed
the need to focus on the real economy and leverage the
proactive fiscal policy to tackle the financing difficulties
facing small and micro businesses.
In the first half of 2018, the government made tremendous
efforts to cut costs for the real economy, including by
maintaining robust public spending and scaling up tax and
fee cuts. The government also introduced tax incentives and
other measures to make financing more accessible and
affordable for small and micro enterprises.
The meeting agreed that a more proactive fiscal policy will
be pursued. The government will focus on introducing deeper
tax and nontax fee cuts, and more companies will be eligible
for the preferential policies of the additional deduction of
R & D spending in taxable income, a policy which is expected
to cut another 65 billion yuan of tax within this year on
top of an initial goal of cutting taxes and fees by 1.1
trillion yuan this year.
Efforts will be stepped up in issuing the 1.35 trillion yuan
of special bonds for local government to see more tangible
progress on ongoing infrastructure projects.
Prudent monetary policy will be neither too tight nor too
loose, and aggregate financing and liquidity will remain
sufficient, the meeting announced. A better and smoother
transmission mechanism is needed to see credit policy
incentives effectively introduced and delivered. Financial
institutions will also be called on to use the money
released from cuts in their required reserves to support
small and micro businesses and debt-to-equity swap.
The government will step up efforts to ensure delivery of
the state financing guarantee fund, targeting at 140 billion
yuan of loans for about 150,000 small and micro firms each
Solid implementation is urged of the re-lending policy
targeting small businesses. Commercial banks will also be
encouraged to issue financial bonds to these businesses with
the bond issuers exempted from the requirement of continuous
Local authorities that have made visible progress in
expanding financing guarantee and reducing costs for small
businesses will be meaningfully rewarded.
At the same time, the government will resolutely phase out
the ¡°zombie¡± companies to free up their underused funding,
and crack down on illegal financial institutions and
activities to forestall risks.
¡°Any financial and fiscal policy measure must be considered
in a broader context and all measures be well synergized and
fully delivered to reduce costs for businesses in the real
economy and sustain the sound momentum of growth through the
latter half of the year,¡± Premier Li stressed.
grows 6.8% in H1
BEIJING ¡ª China¡¯s gross domestic product expanded 6.8
percent year on year in the first half of 2018 to about
41.90 trillion yuan ($6.27 trillion), data from the National
Bureau of Statistics (NBS) showed on July 16.
The pace was well above the government¡¯s annual growth
target of around 6.5 percent.
In Q2, China¡¯s GDP rose by 6.7 percent year on year,
slightly lower than the 6.8 percent from the previous
quarter but representing the 12th straight quarter that GDP
growth rate has stayed within the range of 6.7 to 6.9
percent, according to NBS data.
China¡¯s economy expanded 6.9 percent in 2017, picking up the
pace for the first time in seven years.
NBS spokesman Mao Shengyong told a press conference that the
Chinese economy has been running soundly in the first six
months, offering ¡°a good start¡± for the country¡¯s pursuit of
high-quality development with further restructuring progress
and improved economic quality and efficiency.
The service sector expanded 7.6 percent year on year in H1,
outpacing a 3.2-percent increase in primary industry and 6.1
percent in secondary industry, according to NBS.
Consumption continued to play a more prominent role in
driving growth, with final consumption contributing to 78.5
percent of the economic expansion in January-June, up from
77.8 percent in Q1 and 58.8 percent last year.
The domestic job market remained stable in June, with the
surveyed unemployment rate in urban areas at 4.8 percent,
unchanged from the level in May and down 0.1 percentage
point from June last year.
China¡¯s energy consumed per unit of GDP declined 3.2 percent
year-on-year in H1, exceeding the initial target of having
energy consumption per unit of GDP cut by at least 3 percent
However, noting increasing external uncertainties and the
fact that China is still going through a critical stage in
structural adjustment, Mao said the country would stick to
the supply-side structural reform and coordinate efforts to
ensure stable and sound economic performance.
Commenting on China-US trade frictions, Mao said its impact,
if any, would have been limited on the Chinese economy in
H1, and requires further observation to judge the potential
impact on the economy in H2.
With the global economy deeply integrated, the trade
frictions, unilaterally stirred up by the United States,
would ¡°affect the global economic recovery and
sustainability of global trade growth,¡± he told reporters.
For the rest of the year, Mao said China¡¯s economy would
stay sound and stable as domestic demand is now the deciding
force behind economic growth. He expects consumption to
continue its upward trend, and investment to remain stable.
He said while external demand remains an important factor in
growth, despite China¡¯s challenges in foreign trade in H2,
there are still favorable conditions to support stable and
relatively fast trade growth. (July
Air pollution prevention group revamped
The State Council released a circular on July 3, stating
a prior collaboration group on air pollution prevention in
Beijing, Tianjin, North China¡¯s Hebei province, and adjacent
regions will be readjusted and renamed a leading group on
air prevention instead.
According to the circular, the newly established leading
group will be in charge of implementation of policies on air
contamination, joint control of air pollution, overall
planning and supervision on pressing matters and research on
measures improving regional air quality.
The leading group will be helmed by Vice-Premier Han Zheng
and flanked by four deputy heads ¡ª Li Ganjie, minister of
ecology and environment, Chen Jining, mayor of Beijing,
Zhang Guoqing, mayor of Tianjin, and Xu Qin, governor of
The new lineup also includes other members from ministries
and provincial regions, and its steering office will be at
the Ministry of Ecology and Environment.
China to solidify strong employment momentum
The Chinese government will take concrete measures to
boost and expand employment, focusing on college graduates,
veterans, laid-off and relocated workers, it was decided at
the State Council¡¯s executive meeting chaired by Premier Li
Keqiang on July 4.
¡°Maintaining steady employment is of primary importance for
China¡¯s economic development and is the foremost livelihood
issue,¡± Premier Li said. ¡°With the economy looking up in
recent years, employment has expanded steadily.
Nevertheless, employment must stay high on the government
agenda for steady creation of new jobs and improvement in
the employment structure.¡±
New urban employment has been running at a high level in
recent years. According to the Ministry of Human Resources
and Social Security, 6.13 million urban jobs were added
between January and May this year, an increase of 140,000
from last year, hitting a new record.
It was emphasized at the July 4 meeting that considering the
challenges and uncertainties China still faces on the
employment front, government departments at all levels must
remain focused on their employment tasks and take
multi-pronged measures to fulfill them.
The government will closely monitor the employment situation
in key regions and among major groups, and make targeted
plans to forestall potential problems.
The reform to transform government functions will be
deepened to improve the business environment and ease
corporate burdens. Policy incentives will be introduced to
encourage companies to keep their payrolls stable.
Better and more targeted services will be provided under the
program to upgrade the nationwide initiative of business
startup and innovation. More measures will be taken to
support flexible employment and job creation in new forms of
industries and the services sector to help more market
entities survive and thrive.
Priority will be given to the employment of college
graduates, veterans and laid-off workers. Vocational
training will be intensified to better equip these groups
for job seeking. And migrant workers will receive better
services in landing jobs and starting their own businesses.
Local governments were urged at the July 4 meeting to
earnestly fulfill their employment responsibilities as a top
priority and pool efforts of all stakeholders to boost
¡°No jobs means no wealth creation and possibly less social
stability,¡± Premier Li said. ¡°All government departments
must live up to their responsibility and make employment
plans for the remainder of this year and next. No one should
take this issue lightly.¡±
In his Government Work Report in March, Premier Li made it
clear that the government will work to create over 11
million new urban jobs and keep the surveyed urban
unemployment rate within 5.5 percent in 2018.
He stressed at the July 4 meeting that institutional
transaction costs should be further reduced to cut labor
costs and lighten corporate burdens, to enable them to hire
more and boost economic growth.
¡°A multi-pronged approach will be adopted to push
entrepreneurship and innovation across the country. Efforts
will be made to expand the channels and opportunities for
flexible employment, and priority groups, including college
graduates, veterans and laid-off workers, will receive more
employment guidance, training and support,¡± Premier Li said.
(July 05,2018) from: english.gov.cn
China steps up efforts to promote trade
2018 marks the 40th anniversary of the start to China¡¯s
reform and opening-up policy. China is stepping up its game
in promoting trade this year as it marks the occasion.
40 years have passed since China extended open arms to
international trade and investment and dedicated itself to
creating a positive business environment for companies from
around the world.
WANG TINGTING, GREATER CHINA VICE-PRESIDENT DECATHLON ¡°We
can see that China still provides huge business
opportunities for foreign investments. The market potential
is still huge.¡±
China has been one of the most attractive markets for
multinationals for four decades. Foreign firms now
contribute 50 percent of all imports and exports, 25 percent
of industrial output and 20 percent of China¡¯s tax revenues.
This country has become the largest overseas market for many
global fortune 500 companies.
RACHEL DUAN, PRESIDENT & CEO GE CHINA ¡°GE actually has been
in China for 100 years. But obviously our fastest growth has
been the last three decades. So we have been here since the
very beginning of the China opening door policy and economic
reform. We benefitted from it a lot.¡±
YANG CHENGXI SHANGHAI ¡°The first China International Import
Expo will be held in Shanghai during the 40th anniversary
year of China¡¯s reform and opening-up. The government sees
the expo as one of its most important global events in
Over one thousand firms from more than 120 countries say
they will attend the November expo. Among them are nearly
100 global fortune 500 companies, including L¡¯Oreal, the
world¡¯s largest cosmetics conglomerate.
JEAN-PAUL AGON, CHAIRMAN & CEO L¡¯OREAL ¡°L¡¯Oreal China is
growing very fast. It¡¯s developing very well. We have been
very successful, we have been here for 20 years.¡±
The Ministry of Commerce says China will import over $10
trillion worth of goods and services during the next five
years. The ministry also says that the upcoming China
International Import Expo will be a symbol of the vast
potential in the Chinese market.
(July 05,2018) from: english.gov.cn
Premier Li envisions closer cooperation with CEE countries
SOFIA ¡ª Premier Li Keqiang on July 4 wrote a signed
article entitled ¡°New Beginning, New Vision and New Journey¡±
for mainstream Bulgarian newspapers, 24 Chasa and Standard,
prior to his official visit to Bulgaria and the seventh
Summit of Heads of Government of China and Central and
Eastern European Countries (CEEC).
Premier Li began his article by expressing delight in
visiting Bulgaria and attending the seventh China-CEEC
Summit in Sofia. This is the first visit by a Chinese
premier in 18 years, and the first stop of his first visit
to Europe after the formation of the new Chinese government.
The visit aims to inject new impetus to the growth of
China-Bulgaria relations and China-CEEC (16+1) cooperation.
According to the article, China will enhance complementarity
between the Belt and Road Initiative and Bulgaria¡¯s
development strategy, and encourage more Chinese companies
competitive in equipment and engineering to invest in
Bulgaria and get actively involved in infrastructure
projects tailored to local needs. The two sides will work
together to promote balanced growth of bilateral trade, and
provide greater convenience for mutual visits and tourism.
They will also strengthen exchanges in culture and
education, between the youth and at the sub-national levels,
to keep the tree of friendship well-nourished and evergreen.
Premier Li pointed out that China and the CEE countries are
at similar levels of development and are all committed to
common development through closer cooperation based on
complementarity. Both sides are in the process of economic
transformation and upgrading. 16+1 cooperation is
results-oriented and guided by the principles of mutual
respect, equality and noninterference in internal affairs.
Such cooperation has no political strings attached.
The two sides will pursue win-win outcomes and form greater
synergy between their respective development strategies and
needs by working out a medium-to-long-term plan of
cooperation and promoting more balanced and sustainable
growth of two-way trade and investment. They are committed
to an open and inclusive 16+1 cooperation rather than making
it a closed or exclusive club. They will continue to conduct
cooperation within the framework of relevant EU laws and
regulations and according to the principle of openness and
transparency. China is ready to enhance communication with
the EU and welcomes discussions on cooperation in
The Premier stressed that China remains a supporter of
European integration and hopes to see a united, stable, open
and prosperous EU and a strong euro. As an important part
and useful complement to China-Europe relations, 16+1
cooperation will help narrow the development gaps within
Europe, promote balanced development between the East and
the West, and instill new vitality into the all-round
cooperation between China and Europe.
(July 05,2018) from: english.gov.cn
State Council releases white paper on China and WTO
The State Council Information Office has released a white
paper on China and the World Trade Organization (WTO). The
document is a summary of China¡¯s achievements, contributions
and commitments to the WTO.
The ¡°China and the World Trade Organization¡± White Paper is
divided into four parts. Each part focuses on an important
aspect regarding China¡¯s 17-year contribution to the WTO.
China joined the WTO as its 143rd member on Dec 11, 2001.
Since then, the country has conscientiously fulfilled its
WTO commitments and brought benefits not only to the
country¡¯s people, but also for the rest of the world, the
White Paper said.
China has been consistently reforming in order to develop a
socialist market economy and has rigorously improved its
According to the White Paper, the government modified more
than 2,300 national laws and regulations to adapt to WTO
commitments, while localities modified or canceled 190,000
related local laws and regulations, to improve policy
transparency and ensure conformity with WTO rules.
¡°By 2010, China had fulfilled its tariff-cutting promises
for WTO membership by cutting overall tariff levels from
15.3 percent to 9.8 percent by 2010.¡±
China has also honored its commitments on trade-in-services,
by opening up its markets and slashing investment
restrictions. China has also enhanced intellectual property
right protection. It has set up IPR courts in Beijing,
Shanghai and Guangzhou and special judicial organs at 15
China is a staunch supporter of the multilateral trading
system and has taken concrete actions to uphold its
It has safeguarded the effective operation of the WTO
dispute-settlement-mechanism and has properly handled trade
disputes with other members. It has been actively
participating in trade policy reviews. It has called upon
the WTO to focus more on the concerns of developing member
countries. China also stands firmly against unilateralism
China has embraced the world with open arms and has made
significant contributions to the global economy since it
joined the WTO.
Since 2002, China¡¯s contribution to global economic growth
has approached 30 percent on average. It¡¯s a major trading
partner of over 120 countries. The Belt and Road Initiative
is China¡¯s latest move to share its economic development
with the world.
China will hold the annual International Import Expo from
Nov 5 to 10 this year in Shanghai and is seeking to buy more
goods from the world and boost consumption. The expo will
further increase access to China¡¯s burgeoning domestic
China will take measures this year to solicit more foreign
investment, the White Paper said.
¡°The country will greatly relax market access, facilitate
investment with better services and encourage foreign
capital into more regions ¡ the negative list approach to
market entry, which states sectors and businesses that are
off limits to foreign investment, will be expanded
Looking ahead, China is willing to work hand-in-hand with
its trading partners to make globalization more open and
inclusive, the White Paper said.
(June 29,2018) from: english.gov.cn
Reform of government services to be directed by plan
To give more convenience to enterprises and citizens, the
State Council approved a plan to boost Internet Plus
administrative services, according to a circular released on
The move is expected to construct an online administrative
service system that integrates data from different regions,
government departments and application items, with which
enterprises and citizens can obtain one-stop service by
logging onto one website or visiting one service hall.
By the end of 2018, preliminary effects are set to be
achieved, and successful experiences in advanced areas will
be expanded nationwide.
By the end of 2019, the reform on application items in key
fields and items frequently applied should be completed.
A national government service platform should be built to
work as a hub providing access to the service platforms of
all departments and regions nationwide. The data, as well as
the real name authentication of people, are shared across
these platforms, making it easier for people conducting
business on different platforms.
Governments at different levels should improve and
constantly update their data resources, and make them widely
shared across different service platforms.
Except for special circumstances, all service items should
be processed online following certain standards of the
national public service platform.
Mobile applications are encouraged to provide the services.
For offline services, provinces, cities, counties and towns
should build or improve their service halls, using data from
online platforms to facilitate the process, allowing all
application items to be conducted in just one place.
Application items that must be conducted offline should be
clearly listed, with processes streamlined and unnecessary
materials trimmed. Public services are supported to be
available in lower level regions, to strive for ¡°one-stop
services¡± for people.
The service platforms should also serve market regulation by
monitoring and analyzing big data from the market.
Meanwhile, security on the service platforms will be
enhanced to better protect privacy.
Regulations that are not accommodated for developing
Internet Plus administrative services should be amended or
Public supervision is welcomed in public services. The State
Council¡¯s and local governments¡¯ websites and service
platforms at all levels should open hotlines for people¡¯s
consultation or complaints.(June26,2018)
State Council approves establishment of Chinese Farmers¡¯
The State Council has approved setting up the Chinese
Farmers¡¯ Harvest Festival, in a reply to the Ministry of
Agriculture and Rural Affairs.
It decided to make the annual Autumn Equinox, the 16th solar
term of the year on the Chinese lunar calendar, as a day to
celebrate the harvest, and authorized the ministry to work
out details with other related departments.
(June22,2018) from: english.gov.cn
China to promote utilization of foreign investment
The State Council released on June 15 a circular on
measures to effectively utilize foreign investment and
promote high-quality development of the economy.
The steps include lowering market threshold, deepening
administrative reform, promoting high-quality investment,
creating a high-standard business environment, optimizing
investment layout, and enhancing the role of national
development zones, according to the circular.
To ease market access in a large scale, the nationwide
practice of pre-establishment national treatment and
negative list on foreign investment will be improved.
The special administrative measures on foreign investment
nationwide and in free trade pilot zones, known as ¡°negative
list¡±, will be revised and published before July 1, 2018,
aiming to enhance opening-up in an all-around way.
The circular also stressed further opening-up in the
financial sector, services sector and sectors such as
agriculture, mining and manufacturing.
It called for efforts to ease restrictions on setting up
foreign financial institutions, revise regulations related
to Qualified Foreign Institutional Investors (QFII) and RMB
Qualified Foreign Institutional Investors (RQFII), develop
the market of crude oil futures, and attract overseas trader
in iron ore futures trading.
The administrative reform will be deepened for foreign
investment facilitation, according to the circular.
Provincial-level governments will be entitled to review
registration and modification of foreign-invested
enterprises investing less than $1 billion in sectors
included in the negative list.
Local governments were encouraged to carry out integrated
approval procedures, and review enterprises¡¯ registration
and filing in one platform.
Capital use of foreign-invested enterprises, foreign
talents¡¯ work in China, and their exit and entry will be
easier than before, according to the circular.
Efforts should be made to attract foreign investors with
advanced technologies and management experience, support
their participation in the construction of free trade port
in Hainan province, and strengthen the leading role of pilot
free trade zones in attracting foreign investment, the
It also encouraged foreign-invested enterprises to reinforce
R&D, put more capital in advanced technologies, and
participate in merger and acquisition in China.
The circular also stressed measures to protect intellectual
property right (IPR) and other rights, including lifting the
upper limit of IPR infringement compensation, strictly
cracking down on illegal activities such as business secrete
invasion and trademark squatting, and prohibiting compulsory
For a better layout of foreign investment, it encouraged
foreign-invested enterprises in western and northeastern
regions to expand financing channels through issuing bonds,
and urged cutting logistic costs through a full range of
Also, the government will support the development of key
border areas and the establishment of international
cooperation zones in western regions which will play a
leading and exploratory role in utilizing foreign capital.
(June20,2018) from: english.gov.cn
to boost imports for balanced trade, consumption upgrade
China will take a slew of incentives to further boost
imports in order to drive domestic industrial upgrading and
better meet the increasingly diversified consumption demands
of people, the State Council decided at an executive meeting
chaired by Premier Li Keqiang on June 13.
The measures are expected to advance China¡¯s win-win
strategy of opening-up. Expanding imports while keeping
exports stable will help raise the supply quality and
The Chinese government puts great emphasis on boosting
imports. In his keynote speech at the Boao Forum for Asia
Annual Conference in April, President Xi Jinping announced
that China will expand imports and achieve greater balance
in international payments under the current account, and
will import more products that are competitive in light of
market demand. Premier Li Keqiang stated in the Government
Work Report in March that China will actively expand imports
and lower import tariffs on goods such as automobiles and
everyday consumer products, to promote industrial upgrading
and more balanced development of trade and further diversify
China has made notable achievements in foreign trade since
reform and opening-up. The country has been the world¡¯s
largest exporter and second largest importer of goods for
nine consecutive years, and is now the world¡¯s largest
importer of energy resources.
¡°Expanding imports is crucial for upholding free trade.
Priority should be given to meeting the needs of everyday
life and boosting trade in services,¡± Premier Li said. ¡°Our
deficit in services trade may be turned into a catalyst for
upgrading the services sector.¡±
The June 13 meeting decided that more support will be given
to importing daily consumer goods, medicine, as well as
nursing and rehabilitation facilities, to meet the demand of
consumption upgrading and improve supply quality. The
government will also cut the import tax on some goods and
reduce institutional procedures and unreasonable price
increases, so that consumers can benefit from the import
Trade in emerging services will be boosted, and imports of
producer services covering research and design, trade
logistics, consulting services, energy conservation and
environmental protection will be encouraged.
Policies on duty-free shops will be made more flexible, with
more duty-free products introduced and shopping experiences
improved. Imports of technological facilities needed for
domestic industrial upgrading will be supported.
The meeting also called for optimizing customs clearance
procedures and promoting the Authorized Economic Operator (AEO)
mutual recognition with other countries to better facilitate
imports. New approaches to importing trade were called for
at the meeting, and cross-border e-commerce and border trade
will be further developed. At the same time, a credit
information system in foreign trade as well as enhanced
intellectual property rights protection are needed so that
foreign trade and foreign investment will complement one
¡°Our initiative of boosting imports demonstrates China¡¯s
commitment to a new round of high-standard opening-up, to
economic restructuring, and to economic transformation and
high-quality development,¡± Premier Li said.
April¡¯s statistics from the General Administration of
Customs show a good momentum in China¡¯s foreign trade in the
first quarter of this year. Trade in goods totaled 6.75
trillion yuan, up 9.4 percent year-on-year, and trade
surplus fell 21.8 percent. (June 14.2018)
China sees improvement on IPR development
The comprehensive development level of intellectual
property rights (IPR) in China has kept rising and the
quality of patents is improving, said an official at the
State Intellectual Property Office on June 12.
Han Xiucheng, director of the office¡¯s Intellectual Property
Development Research Center, made the remarks at the launch
of a report about China¡¯s IPR development in 2017.
The report shows that China has made progress in IPR
creation, application, protection, management and service,
and the gap with major IPR powers has narrowed. China¡¯s IPR
development ranked 10th out of 40 countries in 2016, up from
19th in 2012.
In 2017, China¡¯s patent retention rate reached 60 percent,
up 3.9 percentage points from a year earlier, and the
average duration of invention patents reached 6.2 years, the
report said. Though the quality of China¡¯s patents has
improved, it still lags far behind increases in quantity and
Han also said China would step up IPR protection by raising
legislative standards, improving law enforcement, and
promoting innovation in the trial of IPR cases, in order to
impose tougher punishment on the infringement of IPR.
¡°The improvement of the IPR system, steady increase in the
number of service organizations and personnel, as well as
fast growing of public awareness has made the IPR
environment in China much better,¡± Han said.
China to improve quality of domestic dairy and milk products
To further revive the milk industry and improve the
quality of domestic dairy products, the State Council has
released a circular to guide the industry¡¯s development.
It expects the industry to increase its own production
capacity through technological innovation, system reform in
management and cost reduction while increasing efficiency.
Development of the industry should also be coordinated with
By 2020, progress should be made in building a modernized
milk industry, with more than 99 percent of the products
qualifying and re-use rate of the waste in cattle raising
reaching more than 75 percent. The whole milk industry
should be revitalized by 2025, with milk source bases,
product processing, quality and industry competitiveness
reaching the world¡¯s top levels.
To improve milk source bases, the government urges efforts
to consolidate the current bases in the north, while
expanding new areas in the south. It calls for developing
standardized cattle breeding methods, improving the quality
of milk cows through big data and online evaluation
platforms, and producing high-quality fodder for the cows.
According to the circular, the State Council encourages the
integration of dairy enterprises, promotion companies and
e-commerce retailers, in order to lower costs while
enhancing efficiency to increase the competitiveness of
Regulations and rules on dairy products will also be
improved, with strengthened supervision through the whole
production process of dairy products.
More strict measures will be taken to ensure the quality of
formula milk powder for infants, and illegal actions such as
mixing inedible ingredients and overuse of food additives
will be strictly banned.
It clearly forbids importing milk powder in bulk and
splitting them before sales, while encouraging companies to
set up their own milk bases to improve the quality for
Dairy enterprises should also make efforts to improve their
image through activities such as inviting visitors to the
farms, publicizing the production process to inspire market
The government will provide policy support in breeding and
product processing, and help strengthen coordination among
different regions and departments, according to the release.
(June 13,2018) from: english.gov.cn
Chinese businesses see technology investment as the way to
hedge against risks
Chinese businesses see technology investment as the way
to hedge against current trade and policy risks ¡ª that was
the consensus from CEOs attending the recent annual China
Enterprises Summit in Jiangyin city, East China¡¯s Jiangsu
The pulse of the real economy is humming. Profits are
picking up pace thanks to faster production and supply side
reforms, but the corporate sector is not being complacent.
Huaxi village, known as China¡¯s No. 1 village, which used to
be heavily steel-dependent, has shut down nine plants in the
past few years and is investing in display technology,
financial services. Wu Xie¡¯en, the Party chief of Huaxi,
said that they ¡°started reforms on HR (and) organization
structure to revitalize the company.¡±
Chinese retail giant Gome is also trying to make
improvements. Its board member Huang Xiuhong, who is also
the chairwoman of Eagle Holdings, said that they want Gome
to go beyond appliance retail to build a smart homes
ecosystem. She continued that sales are expected to grow
50-70 percent this year, since ¡°our mobile platforms are
going to get smarter and offer fuller services.¡±
Far East Holdings Group is an example, as well. The company
last year invested in a $1.8 billion joint venture with
Detroit Electric to produce electric cars. The company will
be rolling out more models internationally, according to its
Chairman Jiang Xipei.
On the hot button China-US trade issue, CEOs were in
wait-and-see mode. ¡°We¡¯d be more cautious about overseas
expansion. There are many policy developments we don¡¯t
understand. I think the Chinese market is big enough,¡± Huang
noted. Jiang hold the similar opinion and said, ¡°We¡¯d be
more cautious about US investments in the future, because we
want to make sure the macro environment is positive for our
The CEOs not only discussed the challenges, tighter
financing conditions, stricter environment rules and trade
uncertainties, but they are also finding the opportunities
from new energy, seeking new partners, freer trade.
The one thing they all have in common is the thirst for
technology talent. ¡°The hard thing is getting talent in high
tech, new technologies, right now almost all companies want
to get into tech, it takes considerable time to build up the
talent pool and reward them,¡± Huang told CGTN.
¡°I think getting talent is not just about money, we need to
give them acceptance, to back them up when they¡¯re being
misunderstood or run into difficulties,¡± Wu mentioned.
¡°My biggest concern is talent. We used to lack technology,
capital, management experience, now we hope the real economy
can attract more top graduates from all disciplines,¡± Jiang
Deyi, chairman of BBMG Corporation stressed on talent, too.
Unlike past years when the ¡°real economy¡± sounded staid
compared to financial expansion, property speculation and
overseas spending sprees, the 2018 mood is ¡°back to basics¡±
¡ª a strategy that should help corporate China ride out the
current policy turbulence.(June12,2018)
The development of China¡¯s digital economy
China¡¯s Cyberspace Administration takes a look at the
country¡¯s booming Information Technology (IT) sectors in a
fresh report. The report on the development of China¡¯s
digital economy shows that the area has expanded rapidly in
In 2017, China¡¯s digital economy had a total output of 27
trillion yuan ($4.2 trillion), up more than 20 percent from
the previous year. That made up almost one third of China¡¯s
GDP. Analysts say the application of IT is an important
driver in China¡¯s economic upgrading.
The development of digital economy was thanks to the
In 2017, China produced 97 million smart televisions, up
about 4 percent from 2016. In addition, Chinese
manufacturers assembled 130 thousand industrial robots, up
81 percent from 2016. Also last year, China produced 2.9
million civilian drones, with a 67 percent increase.
As a result, China¡¯s ever pervasive mobile payment sector
processed transactions exceeding 200 trillion yuan ($31.2
Big data is an emerging segment in the IT sector. And it¡¯s
viewed by many industrial players as a strategic area and
potential source of growth.
The total output of the sector amounted to 23 billion yuan
($3.6 billion) last year. Although that is still a small
number, the sector¡¯s growth has been fast. China Academy of
Information and Communications Technology estimates that the
sector¡¯s output will reach 33 billion yuan ($5.2 billion) in
30,2018) from: english.gov.cn
Li urges economic upgrade for high-quality development
Premier Li Keqiang urged upgrading the economy,
promoting high-quality development and improving people¡¯s
lives at a State Council plenary meeting he chaired on May
The Premier said China¡¯s development faces both precious
opportunities and challenges hard to foresee, as the
international political and economic landscape is being
He said the reforms of streamlining administration,
delegating power and improving service should be continued
to stimulate the market, in addition to easing market access
and cutting taxes and administrative fees. The market should
play a decisive role in resource allocation while the
government should play a better role, he said.
Efforts should be made to strengthen market supervision to
create an environment for fair competition, while cutting
repetitive supervision and red tape and reducing the
discretionary powers of the government, he noted.
A unified online administrative service platform should be
built to facilitate people¡¯s lives and businesses.
Opening-up should be expanded, so that domestic and foreign
companies can compete fairly in China¡¯s vast market, he
The Premier stressed the need to transform economic
structure, nurture new growth drivers and upgrade
traditional drivers to promote industries to the middle- and
He urged more efforts in basic research and key
technologies, encouraging entrepreneurship and innovation,
and promoting new technologies and new industries through
inclusive and prudent supervision.
It is important to eliminate backward capacity and develop
environmentally friendly industries in order to achieve a
win-win situation between ecological protection and economic
development, he said.
Premier Li asked related departments to stick to
people-oriented development concepts, with priorities on
securing people¡¯s basic livelihoods. Guarantee mechanisms
should be constantly improved in poverty alleviation,
employment, compulsory education, basic healthcare, basic
pension insurance and basic living allowances, among which
more efforts should be put on targeted anti-poverty
measures, distribution of pensions in full amounts and on
time, as well as increasing reimbursement ratios and
coverage for major illness insurance. In addition, more
nonbasic public services will be provided to meet the
diversified demands of society.
He also stressed risk prevention and emergency management in
finance, urban governance, safe production, pollution
control, natural disasters and major challenges from
international society, so as to secure steady economic and
social development. (May 29,2018) from: english.gov.cn
guidelines to strengthen scientific integrity
BEIJING ¡ª China issued guidelines on May 30 to
strengthen scientific integrity, encourage innovation and
scale heights in science and technology, to lay a solid
social and cultural foundation for building the country into
a world scientific power.
A scientific integrity mechanism will be built to encourage
innovation and tolerate trials and errors while maintaining
zero tolerance for severe academic dishonesty, and anyone
who violates the integrity rules will be held accountable by
law, according to a document released by the General Office
of the Communist Party of China (CPC) Central Committee and
the General Office of the State Council.
China¡¯s Ministry of Science and Technology (MOST) and the
Chinese Academy of Social Sciences (CASS) will take the
leading responsibility in coordinating and managing the work
of scientific integrity in the fields of science and social
According to the guidelines, MOST and CASS plan to build an
integrity information system to record and assess conduct of
scientists and scientific institutions across the country.
The guidelines strictly prohibit practices such as
plagiarism, fabrication of data and research conclusions,
ghost-writing, and peer review manipulation.
The guidelines say great efforts will be made to reform the
scientific research evaluation system, making scientific
integrity an important indicator in various evaluations.
Papers, patents, titles, projects, and honors should not be
taken as the restricting qualifications for evaluation,
according to the guidelines.
MOST also plans to build a journal warning mechanism to put
any domestic or international academic journals that ignores
academic quality while seeking high payments onto a
blacklist, and papers published in such journals will not be
recognized in any kind of assessment.
The guidelines say intermediary service agencies which
engaged in illegal activities such as buying and selling
scientific papers, ghost writing, and forging, fabrication,
and distorting research data, will be punished severely.
Those who are found to have committed academic misconduct
will be banned from teaching or doing any kind of research
work in government-run schools and scientific institutions.
Their research grants will be canceled and honors revoked,
according to the guidelines.
The guidelines encourage Chinese researchers to conduct
exchanges and cooperation with relevant countries and
international organizations, strengthen study on scientific
integrity, jointly improve international norms of scientific
research, and positively cope with transnational cases
regarding scientific integrity, the guidelines say.
Premier urges cutting logistics costs, improve efficiency
At the State Council executive meeting on May 16, Premier Li
Keqiang pledged to cut costs in the logistics industry and
improve its efficiency.
He said the government has taken effective measures in
recent years to cut logistics costs. Data show that in 2017,
social logistics costs accounted for 14.6 percent of GDP,
down by 3.4 percent from 2012, falling five years in a row.
¡°There is still room for reform,¡± the Premier said. ¡°During
my local visits, I found that the number of permits for
passenger vehicles is still too high.¡±
Measures were issued at the meeting. From May 1, 2018, to
Dec 31, 2019, the land use tax for warehouses of logistics
enterprises will be cut by 50 percent. The vehicle purchase
tax for trailers will be cut, also by a half, from July 1,
2018, to June 30, 2021.
The annual verification, examination and exhaust gas
inspection for trucks will be consolidated. Getting permits
for them will be simplified. The certificate for trucks
under 4.5 metric tons will be canceled.
The government will also try to cancel toll stations at
provincial boundaries on highways and simplify procedures
for logistics enterprises to set up branches.
Earlier this year, a policy was issued to adjust the
value-added tax, which resulted in the reduction of railway
freight. With these measures taken this year, logistics
costs are expected to be cut by over 12 billion yuan.
¡°Besides cutting transportation costs, we should also
develop a combined transport by highway, railway and
waterway to improve logistics efficiency,¡± the Premier said.
At the meeting, he urged further streamlining
administration, delegating power and cutting taxes and
institutional trade costs.
(May 22,2018) from: english.gov.cn
China will further cut red tape to spur foreign investment
China will further simplify procedures for setting up
foreign-invested enterprises to promote high-standard
facilitation of free trade and investment, the State Council
decided at an executive meeting chaired by Premier Li
Keqiang on May 16.
It was decided at the meeting that a single form and
one-stop services will be introduced for the business filing
and registration of foreign-invested enterprises. The whole
process will be conducted online and free of charge, without
the need for paperwork or appearance in person. This
practice, which will take effect from June 30, is expected
to significantly shorten the time required for FIE-related
Real-time sharing and coordinated management of FIE-related
information will be promoted among banking, customs,
taxation and foreign exchange authorities. Government
inspections will also be strengthened to ensure that
measures are implemented in full.
In the Government Work Report this year, Premier Li said
that procedures for setting up foreign-invested enterprises
will be simplified, and business filing and registration
will be processed together.
The Premier said at the meeting that consolidating the
filing and registration procedures for FIEs is a matter of
high priority. He called for all government departments
concerned to fully collaborate and coordinate with each
other in this process to make things easier for FIEs.
Statistics from the Ministry of Commerce show that over
35,600 foreign-invested enterprises were set up in 2017, up
27.8 percent year-on-year. And foreign investment rose 7.9
percent over 2016, hitting a record high of 877.5 billion
Concrete measures were also adopted at the meeting to
establish a uniform e-platform for accessing government
services and see that things requiring a personal appearance
will get done in one place, without the need for a second
It was decided at the meeting that an e-platform for
accessing interconnected government services at the
national, provincial and city levels will be established.
All government service items will be put on this platform
unless the laws otherwise stipulate or for confidentiality
reasons. The government will stay committed to a unified
e-platform for all government services by connecting the
separate networks, with few exceptions allowed for separate
networks or offline government services. In principle, no
individual department will be allowed to set up an
independent information system.
Standardized procedures will be laid out, and a list of the
items requiring appearance in person will be released, under
which single-window services will be provided to save
applicants the need for a second trip.
¡°Government services are to serve the public, and hence must
be universally accessible. Current technologies have made it
possible to have many things done online,¡± Premier Li said.
¡°What¡¯s important is to introduce a unified e-platform for
all government services by connecting the separate networks.
This should especially be the case for the portal websites
of central government departments.¡±
It was also decided at the meeting that procedures for
accessing government services will be further simplified.
There will be no repeated requirement for materials that can
be shared and reused. Related mechanisms will be amended
promptly in this respect. Electronic licenses will be more
widely introduced, and their reciprocal recognition will be
A uniform platform for data sharing and exchange will be
established. Agencies that fail to connect to government
information systems at different levels will lose their
eligibility for applying for new projects or funding for
At least 90 percent of the service items offered by
provincial-level authorities and 70 percent by city and
county-level authorities will be made accessible online
before the end of 2019.
The Premier stressed that standardization is the way to go
in applying the ¡°Internet Plus government services¡± model.
The regulatory authorities for cyber affairs should step up
supervision and oversight.
¡°Information security should always be a high priority.
Efforts must be stepped up to establish the corporate and
individual credit systems and a unified and open government
services system,¡± he said.
(May 17,2018) from: english.gov.cn
Results released for spot check on govt websites
Results for a spot check on government websites in the
first quarter have been revealed, according to a notice
issued by the State Council on May 16.
The State Council General Office checked 303 websites, 95
percent of which met quality standards. Regional governments
and State Council departments checked 11,639 websites under
their respective administrations, with a pass percentage of
In the first quarter, 272 officials were held accountable
for websites which failed to pass the check.
Problems in those unqualified websites included ineffective
management, inconvenient online service, restricted access
for exchange with users, and nonstandard domain names and
The notice urged regional governments and departments to
resolve the problems unveiled in this check, enhance online
service, streamline access for the public to submit
questions and suggestions, and protect website security.
As of March 1, 2018, the num ber of government websites in
operation in China was 23,269, according to the notice.
China joins ASEAN countries¡¯ chorus for free trade
JAKARTA ¡ª Premier Li Keqiang on May 7 pledged to jointly
promote trade and investment liberalization and facilitation
with the Association of Southeast Asian Nations (ASEAN), so
as to inject positive energy into the world economy.
He made the remarks while addressing a celebration ceremony
of the 15th anniversary of the China-ASEAN strategic
partnership at the ASEAN Secretariat in Jakarta, capital of
At the 32nd ASEAN Summit and related meetings held in
Singapore in late April, leaders of ASEAN countries agreed
to work toward an early conclusion this year of the Regional
Comprehensive Economic Partnership (RCEP), a free trade
agreement (FTA) scheme of the 10 ASEAN member states and its
FTA partners, namely China, Australia, India, Japan, the
Republic of Korea and New Zealand.
In his speech, the Premier also called for substantive
breakthroughs made in the negotiations on the RCEP.
China and ASEAN countries are all beneficiaries of free
trade, Premier Li said, adding that it is in line with their
common interest to safeguard multilateralism and the
international trading system.
China is ready to work with ASEAN countries to promote the
early completion of the RCEP, build the East Asian economic
community and promote trade and investment liberalization
and facilitation, so as to inject positive energy into the
world economy, he said.
He said the importance of cooperation between China and
ASEAN has gone beyond the bilateral scope and has
increasingly become the support and engine for maintaining
regional peace and stability as well as promoting regional
China has always put ASEAN as a priority for its foreign
policy with neighboring countries and stood for friendly
cooperation with ASEAN, said the Premier.
He said China supports the establishment of the ASEAN
community, supports ASEAN¡¯s central position in regional
cooperation and supports it to play a bigger role in
building an open and inclusive regional framework.
This year marks the 40th anniversary of China¡¯s reform and
opening-up, and the ASEAN also ushered in its second 50-year
period, said Premier Li.
Last month, President Xi Jinping proposed new initiatives
for furthering opening-up at this year¡¯s Boao Forum for Asia
Premier Li said China¡¯s development would bring new and
greater opportunities to all countries in the world
China is ready to work with ASEAN to build a closer
community with shared destiny and jointly write a new
chapter in their cooperation, said the Premier.
In his welcome remarks, Secretary-General of ASEAN Lim Jock
Hoi thanked Premier Li for his visit to the ASEAN
Secretariat and his attendance at the Launching Ceremony of
the 15th Anniversary of China-ASEAN Strategic Partnership.
China has always been an important partner of ASEAN, he
said, noting that China¡¯s support has strongly promoted the
integration of ASEAN, helped ASEAN narrow its internal
development gap and deepened the friendship between the
people of the two sides.
ASEAN is willing to work with China to strengthen economic
and trade cooperation, especially in such areas of
innovation and digital economy, so as to achieve common
prosperity and mutual benefit, said Lim.
Congratulating China on its tremendous achievements in
reform and opening-up, Lim said he appreciated China¡¯s
commitment to an open and rules-based multilateral trade
He said he believed that China¡¯s broad prospects for
development will not only benefit the Chinese people but
will also improve the well-being of all people in the
Premier Li launched the ceremony together with Lim and Tan
Hung Seng, the permanent representative of Singapore to
ASEAN. More than 200 participants attended the ceremony.
The Premier arrived in Jakarta on May 6 for an official
visit to Indonesia, the first stop on his first overseas
trip since the new cabinet took office in March.
(May 8,2018) from: english.gov.cn
China makes greater efforts to improve business environment
China will further improve its business environment by
halving the time required to open a business and start
construction projects, the State Council decided at an
executive meeting chaired by Premier Li Keqiang on May 2.
According to a decision at the meeting, the length of time
required to start a business in municipalities,
sub-provincial cities and provincial capitals will be
reduced from an average of more than 20 workdays to 8.5 by
the end of the year. This measure will also be introduced in
five leading cities, Dalian, Qingdao, Ningbo, Xiamen and
Shenzhen, with other areas also set to see positive
progress, to be followed by national implementation in the
first half of next year.
Measures to halve the time required for government approval
of construction projects from the current average level of
more than 200 workdays to 120 will be piloted in 15 cities,
including Beijing, Shanghai and Tianjin, and in Zhejiang
province, this year, whereby all government review items and
approval procedures concerning home building and urban
infrastructure will be simplified, optimized and
standardized. This pilot program will be rolled out
nationwide in the first half of next year.
President Xi Jinping emphasized that we must do away with
regulations and practices that impede the development of a
unified market and fair competition, stimulate the vitality
of all market entities and adopt policies to promote
high-standard liberalization and facilitation of trade and
Premier Li said that a good business environment is part and
parcel of enhancing competitiveness and productivity. ¡°In
spurring economic growth, our focus needs to shift from
investing in projects to improving the business environment.
The key is to press ahead with the reform of government
functions,¡± he said.
An estimate by the World Bank moved China up 65 spots
between 2013 and 2017 in the ranking of ease of starting a
business, and the length of time required was shortened from
33 days to 22.9.
According to a decision at the meeting, the procedures that
a new firm needs to go through to become initially
operational will be further streamlined. The whole business
registration process will be conducted online. Government
approval of business names before registration will no
longer be needed unless specifically required.
The record-filing procedure for official seals will be
included in the reform to integrate different certification
requirements for business registration. Applicants may also
choose their own providers for official seals.
No separate tax registration will be required, and no
separate social insurance registration certificate issued
for companies that have obtained business licenses with
unified social credit codes. The amount of time needed for
invoice application and social insurance registration will
also be reduced.
¡°An enabling business environment that unlocks market
vitality is crucial to achieving sustained, high-quality
development in China. The biggest potential for our
development lies in the vast domestic market and the
creativity of all market entities,¡± Premier Li said.
¡°Reducing government-imposed transaction costs will be the
priority of the reform of government functions going
forward, and there is still a great deal that can be done in
this respect. The government must continue to make
determined efforts to cut red tape, enhance compliance
oversight and provide better services,¡± he said.
To slash the review time for construction projects, the
following measures were decided at the meeting:
First, the number of items subject to government approval
will be further simplified. The record-filing requirement
for construction contracts and building efficiency design
review will be eliminated, and designs for fire control and
civil air defense will be incorporated into the construction
plan documents for review.
The review and approval of a project will no longer be
conditional on environmental impact and energy efficiency,
which will instead be subject to general assessment by the
Second, category-specific management will be introduced. The
approval procedures for privately invested small and
medium-sized construction projects will be simplified. No
government approval will be required for the design plans of
land-use right transfer projects with existing development
plans. For privately invested home building projects, the
project proprietors may decide how to award their own
Third, procedures will be streamlined. An interagency
approach with a clear time frame will be adopted for
simultaneous site inspection, mapping, surveying and drawing
inspections by competent authorities in planning, natural
resources and urban utilities. So in the future, the
government will formulate one single checklist laying out
all construction requirements, one single system for
approval and inspection services, one single window for
multiagency services, one single form for application
materials and one single mechanism for rules-based approval.
¡°The rebound in private investment this year has been
encouraging, yet lengthy reviews for construction projects
will drive up corporate costs,¡± Premier Li said.
¡°Reform must be pushed forward by breaking down the
departmental barriers of vested interests. We will advance
these reform measures step by step and keep in mind the
realities on the ground, and work to roll them out
nationwide next year.¡±
(May 4,2018) from: english.gov.cn
China will roll out fresh tax cuts to aid small businesses
China will make further tax cuts worth over 60 billion
yuan ($9.4 billion) to drive innovation and entrepreneurship
and boost the development of small and micro businesses, a
State Council executive meeting presided over by Premier Li
Keqiang decided on April 25.
The move aims to reduce the cost for innovation and
entrepreneurship, energize small and micro businesses and
spur job creation.
As part of the efforts to implement blueprints set out by
the Central Economic Work Conference and the Government Work
Report, the annual taxable income threshold of small and
micro businesses eligible for halved income tax will be
raised from 500,000 to 1 million yuan. The per unit value of
newly-purchased R&D instruments and equipment eligible for
one-time tax deduction will be raised from 1 million to 5
million yuan. These two measures will be effective from Jan
1, 2018 to Dec 31, 2020.
President Xi Jinping has stressed that the country needs to
encourage more entities to make innovations and start
businesses and support the innovations by small and
¡°We must work hard to cut the cost of the real economy,
bring out the vitality of all market entities by lifting the
discriminatory restrictions and hidden barriers in taxation
and other respects, and see that all the policy incentives
for SMEs and micro businesses are fully delivered,¡± Xi said.
In his Government Work Report delivered in March this year,
Premier Li said that the government will further lighten the
corporate tax burden. Far greater numbers of small,
low-profit businesses will see their income tax halved and
the ceilings on deductible business purchases of instruments
and equipment will be significantly raised. The pilot
preferential tax policies for venture capital investment and
angel investment will be extended nationwide, he said.
According to a decision made at the meeting, the tax
incentive enjoyed by venture capital firms and angel
investors that sees 70 percent of their investment deducted
from the taxable income of the seed and early stage
high-tech startups they finance will be extended nationwide.
The policy has been piloted in the country¡¯s eight
innovation and reform experimental zones, including the
Beijing-Tianjin-Hebei area, Shanghai and Guangdong, as well
as in the Suzhou Industrial Park. Such tax cuts will be
implemented from Jan 1 for corporate income tax and from
July 1 for personal income tax this year.
The meeting also decided to abolish the preclusion of the
expenses of commissioned overseas R&D from additional tax
deduction. The time limit for the capital loss carryover of
high-tech firms and technological SMEs will be extended from
5 to 10 years, pending approval by the Standing Committee of
the National People¡¯s Congress. All enterprises shall see
the tax deduction for their employee training costs raised
to 8 percent, the same rate as high-tech companies enjoy,
from the current 2.5 percent. These three measures are
effective from Jan 1 this year.
Premier Li said that while this round of tax cuts is
targeted at small and micro businesses to spur innovation,
the whole economy stands to benefit. Though being the
biggest job providers, small and micro businesses have long
had difficulty in accessing affordable financing. Supporting
their development is critical to ensuring employment.
The meeting also adopted measures of stamp duty relief for
books of account starting from May 1.
All the above mentioned measures are expected to reduce the
corporate tax burden by over 60 billion yuan. The move
follows a 400 billion yuan tax cut package for 2018, which
was decided at a State Council executive meeting on March
Premier Li stressed that while the well-established firms
receive due attention, greater support must be extended to
all growth enterprises, including SMEs and micro businesses.
¡°Tax cuts and fiscal input are like the two sides of a coin.
Both can catalyze innovation,¡± he said.
The Premier once again called for full implementation of the
above policies to deliver concrete benefits to all
businesses concerned. (April 27,2018) from: english.gov.cn
First Digital China Summit kicks off in E China
The First Digital China Summit opened in Fuzhou, capital
of East China¡¯s Fujian province, on the morning of April 22,
during which 293 exhibitors will display the latest digital
With the theme ¡°Facilitating information-driven development
and a digitalized China,¡± the three -day summit will display
the latest achievements in e-government and digital economy,
such as face recognition and voice recognition technologies.
The summit has a main forum and several sub-forums, covering
topics such as e-government, digital economy, smart society,
new smart cities, big data, digital Fujian, digital Maritime
Silk Road and the internet of things.
(April 24,2018) from: english.gov.cn
Charges,food among key issues raised
Administrative charges suspended
Some administrative fees, including those for first
identification cards, will be suspended or abolished, said a
joint notice by the Ministry of Finance and the National
Development and Reform Commission.
The notice said citizens, from April 1, would not be charged
for their first ID card. From Jan 1 this year to Dec 31,
2020, institutional supervision fees for securities and
futures were suspended, it said.
Crackdown on private equity fraud
The China Securities Regulatory Commission has cracked down
on 10 cases of illegal activity in private equities,
including eight cases that will be subject to administrative
penalties, the commission said on April 20.
The cases were related to illegal operations, transfers of
benefits, market manipulation and rat trading (using
personal accounts to purchase shares and then selling them
when the fund buys them), the commission said.
Governmental fund system change
To reduce costs for the public and support the real economy,
the Ministry of Finance recently released a notice to lower
the threshold for some governmental funds.
Starting this month, the employment guarantee, where
companies pay a levy to safeguard incomes for disabled
employees, will be lowered to twice the local average
income, from the previous thrice. Starting on July 1,
another 25 percent will be cut from funds collected for the
nation¡¯s major water resource projects. The funds were
previously reduced by 25 percent.
Food sold near schools targeted
A crackdown was launched to tackle substandard food sold
near school campuses, said a recent notice by the State
Administration for Market Regulation.
The notice required that all food sold around campus must
meet safety standards and cannot be additive-laden. All food
workshops without licenses must be closed and any food found
below standard will be removed from shelves, retrieved and
destroyed to avoid potential danger, it added.
New channel to buy train tickets
A new service hotline 12328 was introduced recently to make
it easier to get train tickets.
The public can also use the hotline¡¯s official WeChat
account to buy tickets online. So far, 337 cities around the
country have opened the hotline with functions such as
complaints and consultation for the transport sector.
Tax relief on cash for scientists
Income tax will be lowered for scientists when they get cash
incentives from technological transfers, according to a
State Council executive meeting on April 18.
Only half of the cash incentives will be subject to income
tax when scientists and technicians in nonprofit research
institute and universities are rewarded in the first three
years after their research or patents earned their
institutions profits, according to a statement released
after the meeting, which was presided over by Premier Li
(April 24,2018) from: english.gov.cn
China aims for mature free trade port system in Hainan
BEIJING ¡ª China is aiming to make the free trade port system
and operational mode of Hainan ¡°more mature¡± by 2035,
according to a document unveiled on April 14.
A free trade port system will be ¡°basically established¡± in
Hainan by 2025, according to the guidelines on supporting
Hainan¡¯s efforts to deepen reform and opening up jointly
released by the Central Committee of the Communist Party of
China (CPC) and the State Council.
China will also set up an investment fund to support
Hainan¡¯s development of a free trade port.
A free trade port is the world¡¯s most open form of economic
zone, which has brought prosperity to places like Singapore
and Hong Kong thanks to its broad-based preferential
policies on trade and investment.
President Xi Jinping on April 13 announced a decision by the
CPC Central Committee to support building Hainan into a
pilot free trade zone and gradually and steadily into a free
trade port with Chinese characteristics.
China welcomes investors worldwide to invest and start
business in Hainan and participate in the building of a free
trade port there, Xi said at a celebration marking the 30th
anniversary of the establishment of Hainan province and the
Hainan Special Economic Zone.
China will support the ¡°all-round participation¡± of foreign
firms in the development of the Hainan free trade port, and
multinational companies are encouraged to set up
international and regional headquarters there, according to
the document. (April 17,2018)
China steps toward intelligent manufacturing
Under the theme ¡°An Open and Innovative Asia for a World of
Greater Prosperity¡±, the Boao Forum 2018 opens this weekend
in South China¡¯s tropical Hainan province. In recent years,
Chinese companies have been shifting toward innovation and
exporting high-quality products that meet the rigorous
standards and expectations of global consumers. The
development of artificial intelligence (AI) and robots
signals a dramatic change in the manufacturing sector.
Athletes weren¡¯t the only attraction at the 2018 Winter
Olympics, 24 robots danced to the rhythm during China¡¯s
eight-minute show at the closing ceremony, causing a
sensation in the world of robotics. Head of the design crew,
Zhang Lei, once thought his brief was mission impossible.
¡°The organizing committee and my team were completely
stunned when the director of the eight-minute show revealed
the maneuvers he wanted the robots to perform. We had only
two to three months to prepare everything from scratch,¡±
said Zhang Lei, the head of the design crew from Siasun
Robot & Automation Co Ltd.
The eight minutes in Pyeongchang showcased how much China¡¯s
intelligent manufacturing has progressed in recent years. In
Northeast China¡¯s Shenyang, a city that boasts the country¡¯s
largest robot production base, more of its products are
being deployed to the service sector. While these robots are
mainly having a positive impact, in the reception of one
local electricity center, the manager points out some areas
where there¡¯s still room for improvement.
¡°Sometimes, the robot gets confused in noisy surroundings.
It can mix up the orders of different people. Other than
that, it is doing well, considering the service requirements
and the amount of information it provides to the customers,¡±
Ju Shibo told CGTN.
How do you determine how advanced a country is when it comes
One measure is ¡°robot density,¡± which shows the number of
robots per 10,000 workers. Robots are at the core of the
government¡¯s sweeping ¡°Made in China 2025¡± plan to upgrade
factories and make them highly automated. The country wants
to reach a robot density of 150 units by 2020.
The increase in robot density in China is the most dynamic
in the world, particularly between 2013 and 2016. The
density rate rose from 25 units in 2013 to 68 units in 2016.
Beijing intends to forge ahead and get China into the
world¡¯s top ten automated nations in just two years.
¡°It¡¯s a realistic target, as labor costs are rising in
China, pushing up the cost of manufacturing. Also,
production techniques for robots continue to improve, which
in turn makes the robots more cost-effective,¡± said Wang
Kecheng, a manager of the company.
The ¡°Made in China 2025¡± plan aims to move the country¡¯s
manufacturing sector up the value chain, but some argue the
level of automation required is several steps ahead of
China¡¯s current level. If domestic robot manufacturers hope
to fill the gap, they will no doubt face fierce global
Hainan given green light for medical tourism
The State Council decided to suspend implementation of
item 2, article 11 of Regulations for the Supervision and
Administration of Medical Devices in the Hainan Boao Lecheng
International Medical Tourism Pilot Zone, as a move to
support Hainan¡¯s international medical tourism industries.
According to the decision, if there is an urgent need in the
pilot zone for certain medical devices not legitimately
available in China, the Hainan provincial government can
authorize the imports but those devices must be used in
The State Council urges the State Drug Administration,
Hainan provincial government and other relative departments
to stipulate specific regulations on approval conditions and
processes for importing medical devices.
State Council releases regulation on scientific data
On April 2, the State Council issued a regulation on the
management of scientific data involved in natural science,
engineering and technology, and other science fields.
According to the regulation, research institutions and
scientific data producers should collect scientific data and
build a database and data quality control system based on
Central and local authorities should establish rules and
regulations while implementing national scientific data
policies. Scientific data centers should be set up by
qualified institutions and supervised by authorities, and
will be responsible for the collection, classification,
processing and analysis of data.
If data produced in government-funded research are used to
write papers and for publication in foreign academic
journals, they should be reported to related scientific data
centers before being published.
The data produced in the research projects funded by private
capital, if involving state secrets, national security and
the public interest, also should be reported.
Data produced through government funding should be open to
the public, except that which involves state secrets,
national security, the public interest, commercial secrets
and individual privacy.
Users of scientific data must abide by regulations on
intellectual property rights and give credit to the
producers of the data.
Authorities and research institutions should strengthen full
life circle security management on scientific data, such as
the authorization and authentication for downloading data.
(April 3,2018) from:english.gov.cn
China¡¯s new tax cuts to benefit real economy
BEIJING ¡ª China¡¯s new value-added tax (VAT) reform
measures are expected to reduce the burden on a range of
sectors in the real economy, analysts said.
China will cut VAT rates as part of a tax reduction package
amounting to 400 billion yuan (about $63.6 billion) this
year, according to a decision made at a State Council
executive meeting on March 28.
Starting from May 1, the tax rate will be lowered from 17
percent to 16 percent for manufacturing and some other
industries, and from 11 percent to 10 percent for
transportation, construction, basic telecommunication
services, and farm produce.
While it will be only a one percentage point cut in each tax
bracket, the reduction will impact a wide range of sectors
in the real economy, according to Li Xuhong, a researcher
with Beijing National Accounting Institute, a government
It was estimated that the reduction of taxes from lower VAT
rates could reach 240 billion yuan. Li said the estimate was
rather conservative, as tax reduction in the manufacturing
sector alone could reach that amount.
VAT tax cuts in the transportation industry will lower the
logistics costs for the real economy, Li said.
Investment bank China International Capital Corporation (CICC)
estimated that firms in the two tax brackets will see their
VAT tax burden decline by 6 percent and 9 percent,
¡°We believe that lower VAT rates will help reduce the prices
of products and services in a number of competitive sectors,
benefiting households and other sectors,¡± CICC said in a
In addition to the VAT rates cut, the reform also offers tax
incentives for some high-tech companies, a measure that
analysts said is aimed at supporting innovation-driven
Eligible enterprises in advanced manufacturing, modern
services, and electric utilities will receive a lump-sum
refund for their input VAT payments yet to be deducted.
The measure will have a ¡°far-reaching impact,¡± said Li, as
it could free capital previously frozen on companies¡¯
However, successful implementation of the refund policy
depends on advanced tax collection measures and the overall
level of honesty of taxpayers across society, Li noted.
The reform also includes measures to unify the standard for
small-scale taxpayers, as it raises the threshold of taxable
annual sales volume for industrial and commercial
enterprises from 500,000 yuan and 800,000 yuan, to 5 million
¡°Raising the revenue ceiling to 5 million yuan for
industrial and commercial sectors will help level the
playing field and support the growth of medium and small
firms in all sectors,¡± CICC said.
With all these measures, this year¡¯s VAT reform is more
intensive than last year, CICC said.
The VAT reform was first piloted in Shanghai before it was
rolled out nationwide. It has delivered a total tax cut of
2.1 trillion yuan over the past five years.
¡°We expect the reform to support China¡¯s economic growth in
not only second quarter of 2018, but also the whole year and
the first four months of 2019,¡± CICC said.
For Li, a more challenging job yet to be accomplished is to
further reduce VAT brackets from three to two. In 2017,
China streamlined its VAT brackets from four to three.
China aims to reduce taxes on businesses and individuals by
more than 800 billion yuan this year, according to a
government work report released in March.
While the VAT reform will help accomplish almost half of the
target, policies to cut the remaining 400 billion yuan of
taxes will be released soon, said Wang Jianfan, an official
with the Ministry of Finance. (April 2,2018)
China to roll out new tax cuts to fuel economic growth
China will cut the value-added tax rates as part of a
tax reduction package amounting to 400 billion yuan ($63
billion) this year to drive high-quality development, a
State Council executive meeting chaired by Premier Li
Keqiang decided on March 28.
The tax rate for manufacturing will be lowered from 17 to 16
percent, and the rate for transportation, construction,
basic telecommunication services and farm produce from 11 to
10 percent, according to a decision at the meeting.
Premier Li said that VAT reform is a major step in China¡¯s
tax regime reform.
¡°VAT reform has helped reduce the overall corporate tax
burden, and improve the tax regime. The reform has proved to
be conducive to the transformation and upgrading of the
economy, unifying the tax structure and making taxation
fairer,¡± he said.
¡°This round of tax cuts will apply to all manufacturing
companies. All businesses registered in China, be they joint
ventures or wholly foreign owned companies, will be treated
equally,¡± the Premier said.
VAT reform was first piloted in Shanghai before it was
rolled out nationwide in May 2016. It has delivered total
tax cuts of 2.1 trillion yuan over the past five years.
The services sector has expanded significantly as a result.
Its added value rose by 8 percent and accounted for 51.6
percent of GDP in 2017, according to the National Bureau of
Statistics. The reform has also boosted entrepreneurship,
innovation and the development of new industries and new
forms of business. Micro and small firms have been the
biggest beneficiaries in this process.
The Premier said in his Government Work Report earlier this
month that efforts will be made to further lighten the tax
burden on businesses. The government will reform and improve
VAT, consolidate the three tax brackets into two and adjust
tax rates, prioritize lowering rates in manufacturing and
transportation, and raise the threshold for annual sales
volume for small-scale taxpayers.
As part of the tax cut package, eligible enterprises in
advanced manufacturing, modern services and electric utility
will receive a lump-sum refund for their input VAT payments
yet to be deducted.
The meeting also decided to unify the standard for
small-scale taxpayers, raising the threshold of taxable
annual sales volume for industrial and commercial
enterprises from 500,000 yuan and 800,000 yuan to 5 million
yuan. Enterprises registered as general taxpayers will be
allowed to switch their status to small-scale taxpayers
within a given time.
All the tax cuts will take effect starting on May 1.
The Premier said that reducing the three tax rate brackets
to two in one go is a hugely challenging job, as reforms are
normally pursued in small increments. Yet this goal is not
He stressed that no industry should see its tax burden
increase in the course of VAT reform; this will be the
guiding principle of all related reform measures.
Govt issues guidelines promoting region-based tourism
The State Council has issued a guideline to promote
region-based tourism, meaning identifying a whole area as a
tourism destination, with unified planning for modern and
The circular urged advancing the ¡°tourism plus¡± program,
promoting industrial integration and exploring new functions
in region-based tourism.
The region-based tourism modes should feature diversity and
environmental protection, the circular added.
The aim is to develop an integrated, quality, regulated
tourism ecosystem that can generate maximum benefit.
The circular stressed efforts to extend tourism in other
fields and industries, including integration with urban
planning to build tourist towns and counties, with
agriculture and forestry for sightseeing agriculture and
forest parks and with technology for development of high-end
The circular also urged exploring cultural traits and
folklore in tourism areas, upgrading quality of traditional
craft art products, and bringing in new technologies for
Entrepreneurship and innovation programs were also
encouraged, and diverse investment entities will be
According to the circular, tourism areas were encouraged to
enhance service quality, build high-quality tourism brands
and introduce intelligent services such as free Wi-Fi and
online booking and payment.
In addition, public facilities should be enhanced. The
circular called for efforts to push ahead the ¡°toilet
revolution¡± and improve transportation network, consultation
service centers in traffic hubs and guideposts.
The circular also urged protecting resources and the
environment, and carrying out poverty-alleviation work by
utilizing potential in tourism resources.
The government should increase policy support in finance,
land use and talent, the circular read.(March
Yingkou port plans to invest 2.5 billion Yuan by the end of
2020 in some other countries
At present, Yingkou Port is planning to transform from
terminal operator to line integrator, through investment in
logistics nodes along the route, participation in
management, realization of key node control, and enhancement
of the overall operation effect and full service capability
of China- Europe block train ferry. By end of 2020, the
total amount of overseas investment had reached 2.5 billion
Yingkou city ranked first in processing jellyfish in
Liaoning province last year
Yingkou city has actively promoted the deep processing
industry of jellyfish, and the jellyfish brand has achieved
remarkable results. By the end of last year, the processing
volume of jellyfish in our city had reached 90,000 tons,
accounting for about 80% of the total export of processed
jellyfish throughout the whole province. Processing output
in the province ranked first.
unveils major cabinet reshuffle
BEIJING ¡ª China unveiled a major cabinet reshuffle on
March 13, to make the government better-structured, more
efficient, and service-oriented.
The institutional reform plan of the State Council was
submitted to the ongoing first session of the 13th National
People¡¯s Congress for deliberations.
State Councilor Wang Yong briefed the lawmakers on the plan.
After merging, restructuring, creating and dissolving, there
will be 26 ministries and commissions. Among the new
entities are ministries for natural resources, veterans
affairs, and emergency management.
There will also be new administrations under the State
Council, such as an international development cooperation
agency, a state immigration administration, and a banking
and insurance regulatory commission.
Compared with the current cabinet setup, the number of
ministerial-level entities is reduced by eight and that of
vice-ministerial-level entities by seven.
Wang said the reform, focusing on institutional
restructuring in key areas, would strengthen the
government¡¯s functions on economic management, market
supervision, social management, public service, and
ecological and environmental protection.
¡°It focuses on the needs of development and meets the
people¡¯s expectations,¡± Wang said, adding that the
restructuring formed part of a broader plan by the Communist
Party of China to deepen the reform of the Party and state
He said the cabinet reshuffle dealt with the institutional
obstacles to make the market play a decisive role in
resource allocation. The reshuffle will also help China
build a modern economy with high quality growth.
In a big change, a banking and insurance regulatory
commission will be formed to replace the China Banking
Regulatory Commission and the China Insurance Regulatory
The move is aimed at solving existing problems such as
unclear responsibilities, cross-regulation and absence of
supervision, Wang said.
The new body will enhance oversight of both banking and
insurance industries and be more effective to forestall
risks in the financial sector.
The international development cooperation agency, to be
formed by merging parts of the functions of the Ministry of
Foreign Affairs and the Ministry of Commerce, will ¡°give
full play to foreign aid as a key means of major-country
diplomacy,¡± Wang said.
A state immigration administration is to be set up under the
Ministry of Public Security to formulate and enforce
immigration rules, as ¡°the number of foreigners working and
living in China has been increasing, raising new
requirements on immigration administration and services,¡±
according to Wang.
People¡¯s welfare will be better protected, with the
establishment of two new ministerial departments devoted to
healthcare and veterans affairs.
The ministry of veterans affairs will protect the rights and
interests of military personnel and their families, improve
the service and management system of demobilized military
personnel, and make military service an occupation that
enjoys public respect.
If passed, the cabinet reshuffle will be the eighth such
move in more than three decades.
Cutting bureaucracy has been a common pursuit of governments
around the world. Beginning 1982, amid its reform and
opening-up push, China began downsizing the central
government about every five years.
Ma Liang, a public administration professor of Renmin
University of China, said cabinet reshuffles throughout the
years aimed to develop a sound, service-oriented
administration able to satisfy the people¡¯s needs.
indicators of Xianrendao Economic Development Zone ranked
first in Yingkou¡¯s key parks
A few days ago, Xianrendao Economic Development Zone
held a general meeting to carry out the spirit of
"optimizing the Business Environment and promoting Project
Construction" in our city.
In 2017, the work of Xianrendao Economic Development Zone
was progressing smoothly, showing a good development trend.
There were 13 projects with more than 10 million Yuan under
construction, of which 11 were more than 100 million Yuan.
The total amount of export was 778 million Yuan, the
year-on-year increase is of 61.2%, these show that the two
indicators are ranked the first in the city's key parks.
Become the strategic platform and important economic growth
pole of our city carrying major projects.
of Xianrendao Energy and Chemical Industry District rose
sharply last year
Last year, Xianrendao energy and chemical industry
district's foreign trade export reached a new high of 778
million Yuan accumulated, exceeding the annual target of 530
million Yuan, and maintaining a rapid growth rate of 61.7%
over the same period last year.(March.8,2018)
of Premier¡¯s Government Work Report
Following are the highlights of a government work report
distributed to media ahead of the annual session of the
National People¡¯s Congress (NPC) on the morning of March 5.
OVER PAST FIVE YEARS
¡ª China¡¯ s gross domestic product (GDP) has risen from 54
trillion to 82.7 trillion yuan, registering average annual
growth of 7.1 percent.
¡ª More than 68 million people have been lifted out of
¡ª Tourist departures have grown from 83 million to over 130
¡ª Both energy and water consumption per unit of GDP have
fallen more than 20 percent, the release of major pollutants
has been consistently declining, and the number of days of
heavy air pollution in key cities has fallen 50 percent.
¡ª Personal income has increased by an annual average of 7.4
percent, outpacing economic growth and creating the world¡¯s
largest middle-income group.
¡ª More than 66 million new urban jobs have been added, and
the country, with its population of over 1.3 billion, has
achieved relatively full employment.
MAJOR TARGETS FOR 2018
¡ª GDP growth of around 6.5 percent
¡ª CPI increase of around 3 percent
¡ª Over 11 million new urban jobs, the surveyed urban
unemployment rate within 5.5 percent, and the registered
urban jobless rate within 4.5 percent
¡ª Basic parity in personal income growth and economic growth
¡ª A steady rise in import and export volumes, and a basic
equilibrium in the balance of payments
¡ª A drop of at least 3 percent in energy consumption per
unit of GDP, and continued reductions in the release of
¡ª Substantive progress in supply-side structural reform,
basically stable macro leverage, and systematic and
effective prevention and control of risk
WHAT ELSE TO DO THIS YEAR
¡ª This year¡¯s deficit as a percentage of GDP is projected to
be 2.6 percent, 0.4 percentage point lower than last year.
¡ª Cut steel production capacity by around 30 million metric
tons and coal production capacity by approximately 150
million metric tons.
¡ª Reduce taxes on businesses and individuals by more than
800 billion yuan.
¡ª This year will see 732 billion yuan invested in railway
construction and around 1.8 trillion yuan invested in
highway and waterway projects; the scale of investment in
ongoing water conservancy projects will reach 1 trillion
¡ª The general manufacturing sector will be completely opened
up, and access to sectors like telecommunications, medical
services, education, elderly care, and new-energy vehicles
will be expanded.
¡ª Actively expand imports, host the first China
International Import Expo, and lower import tariffs on
automobiles, some everyday consumer goods, and so on.
¡ª Promote the peaceful growth of cross-Strait relations on
the basis of the 1992 Consensus, and advance China¡¯s
¡ª Promote coordination and cooperation among major
countries, deepen friendships and achieve common development
with our neighbors, and enhance unity and cooperation with
other developing countries.
¡ª Ensure the success of the annual conference of the Boao
Forum for Asia, the Shanghai Cooperation Organization
Summit, the Summit of the Forum on China-Africa Cooperation.(March.07,2018)
moves on trial reform of IPR cases
BEIJING ¡ª The Chinese leadership on Feb 27 unveiled
guidelines for improving the trial procedures of
intellectual property rights (IPR) cases.
Reforms are needed to improve top-level dealing with issues
concerning the long-term development of the IPR case trials,
and to adapt to changes in the international environment;
judicial protection of IPR cases must be improved, according
to a document released by the General Office of the
Communist Party of China (CPC) Central Committee and the
General Office of the State Council.
¡°An open mind is in need as reform must be made based on
China¡¯s national conditions, while respecting international
rules and learning from successful experiences of global
cases,¡± the document said.
The reform targets higher efficiency, stronger IPR
protection and better IPR case trial credibility. IPR
infringement must be effectively curbed.
The detailed measures include building a compensation system
for IPR infringement, stepping up creation of IPR courts and
intensifying construction of IPR trial talent.
In 2016, Chinese courts handled 152,072 IPR cases, up 16.8
percent year on year. Over 3,700 people were arrested and
7,000 prosecuted, according to an IPR protection white
Port Cross-Border E- Commerce Direct Mail launched
According to news on February 17th, after the first
batch of 52 cross-border e-commerce direct mail packages
transferred by sea through Yingkou port were scanned in
turn, customs were cleared successively through the
automated inspection and sorting lines. Yingkou port
cross-border e-commerce business "Direct Mail by Sea" was
officially launched. Which is to be became the second
seaborne direct mail port in Northeast China.(Feb.22,2018)
Smart: Millennials to fuel China¡¯s sharing economy
Young people in their 20s and 30s are rapidly becoming
the backbone of China¡¯s widening spending power. Known as
millennials, they are more open to new ideas and business
models. They are also expected to help shape the future of
the sharing economy.
Chinese millennials were born when China started to have
more access to global markets. They are more eager to spend
on experiences than on possessions. They share everything
from bikes and homes to clothes and power banks.
¡°This new generation of consumers looks for information on
the internet rather than in the library, and the information
comes to them. The sharing economy meets their needs and
it¡¯s very easy and very fast,¡± said venture capitalist
Besides bike sharing and apartment rentals, fashion rentals
have emerged because of the booming sharing economy. Y
Closet is a Beijing-based rental platform that doles out
women¡¯s apparel and accessories. The company targets stylish
young people with big dreams and small budgets.
¡°These young millennials do not want to follow the crowd.
They want to have their own styles. But they¡¯re usually
limited with their incomes,¡± said Doris Ke, marketing
director of Y Closet. ¡°They¡¯re actually our core customers.¡±
Y Closet completed a 50-million-dollar fundraising round
last year that was led by Alibaba, Softbank and Sequoia
Capital. Now, the company teamed up with Taobao, China¡¯s
largest e-commerce platform.
The sharing economy is booming in China. When a good idea
emerges, attention will be gathered and capital will rush
in. But many players could not even survive their very first
¡°Last year, I looked at over 200 sharing economy projects.
But to be honest, over 99 percent of them do not exist
anymore,¡± said Tan.
How to keep a new idea in sharing economy from this curse of
a short life span? Tan suggested two key elements for
success: Technology and real demand.
Millennials¡¯ flexible, minimalist and sustainable living
styles are expected to help fuel China¡¯s sharing economy in
the coming years, while block chain and the internet of
things is driving the sector in terms of technology. But
analysts say that 2018 will still be a crossroad for the
sharing economy because the new technologies still need to
Council promotes separation of business operation permits,
licenses in Shanghai
The reform of separating business operation permits from
business licenses is to be further promoted in Shanghai
Pudong New Area, according to an approval released by the
A specific work plan was also released, covering the reform
in 10 areas: business system, medicine and medical
instruments, investment and construction engineering,
transportation, permission management of pawnshops,
agriculture, medical and healthcare, quality supervision,
culture and tourism, and supervision and service.
The work plan asks related pilot work leaders to assume
responsibility, and coordinate and solve any problems.
Education and training should be enhanced for related staff
members. Policy introduction is necessary as it can help
people and enterprises get better accustomed to the changes.
Unclear work division should be avoided. Supervision and
evaluation of the pilot work should be carried out.
Successful results should be promoted and duplicated.
The work plan is aimed at effectively defining the functions
of business operation permits and business licenses,
exploring new technology, new industry, new modes and new
products, and promoting an inclusive and deliberate
It will also encourage system innovation and government
function transformation, and break the systematic barriers
restricting enterprises and individuals. Fair market
competition is promoted for a better business environment,
and help the development of new driving forces. Market
vitality and social creativity are to be fully stimulated to
spur economy development.
rural transportation network to grow stronger
Winding roads, inaccessible spots and muddy fields have
long been the most impressive memories for us traveling in
China¡¯s remote and rural areas. But that was before the 18th
Communist Party of China (CPC) National Congress, held in
Beijing in 2012. If you look at the picture of those places
now, you can see a difference and changes could be seen
Great breakthroughs have been made in transportation reform
since the 18th CPC National Congress. The Ministry of
Transport says it regards the construction of ¡°Sihao Rural
Roads¡± as an important vehicle for completing the building
of a moderately prosperous society.
Transport Minister Li Xiaopeng reported that at present, the
network of rural roads in the country has reached 3.96
million kilometers. He noted that over 99 percent of
townships and 98 percent of established villages were built
with asphalt roads and cement roads, and equipped with
buses. Poorly constructed roads are a thing of the past.
Instead, paved roads and bus services are part of the real
lives of 600 million farmers in China.
In 2017, the ministry also achieved remarkable progress in
reducing logistics costs by upgrading transport
infrastructure, improving transport services, deepening the
transport sector¡¯s reform and strengthening new growth
drivers for transport development.
Remarkable as China¡¯s achievements in transportation,
there¡¯s still much room for improvements in terms of
infrastructure construction, services and governance.
Li told the press that even though China is a major
transport country, it is only big, not strong. There¡¯s still
a long way to go before becoming a powerful transport
country. The infrastructure is not good enough, our services
cannot fully meet the needs of the people, our logistics are
not yet developed, and the costs in logistics are still
Making China a stronger country in terms of transportation
is a new goal for the government. Li said that the
authorities will try hard to build a modern transportation
system. ¡°We will build this system with open integration,
sharing governance, green wisdom, civilization and
The government plans to achieve the basic goal of becoming a
¡°strong transport country¡± from 2020 to 2035, and to
comprehensively achieve that goal from 2036.(Feb.11,2018)
of Q4 govt website inspection issued
The State Council released a circular on the results of
a nationwide inspection of government websites conducted in
the fourth quarter of 2017.
As of Dec 1, 24,820 government websites were in operation,
including 1,961 affiliated with State Council departments
and 32 provincial-level government portal websites.
The State Council¡¯s general office conducted a random
inspection of 460 websites, of which 95 percent were
qualified. It¡¯s worth noting that the websites of Beijing,
Tianjin, Hainan, and the Xinjiang Production and
Construction Corps were rated as 100 percent qualified over
four consecutive quarters.
All provincial regions and 71 departments of the State
Council selected 12,336 websites under their respective
administrations, which accounted for 50 percent of
government websites with a 96 percent total qualification
Valid messages via platforms for people to mention errors on
government websites totaled 14,208 in the fourth quarter,
among which 99 percent were answered. For 25 websites
selected from the Inner Mongolia autonomous region,
Shanghai, Hunan, the Ministry of Public Security and the
Ministry of Environmental Protection, the figure reached 100
Also during the same period, 116 officials were punished or
received warnings for running unqualified websites.
In 2017, all regions and departments had inspected 43,139
government websites at all levels. A total of 21,513
websites with poor maintenance were integrated or migrated
and 625 officials were held accountable for the substandard
Some problems surfaced in the process, such as unregulated
domain names and logos, lack of overall rectification
measures, poor interactions with netizens and insufficient
Based on the results of the inspection, the circular urged
more efforts to supervise government websites and to provide
better government services online.
Regions and departments at all levels should enhance regular
website supervision, operationalize correction measures,
better interact with netizens to address their concerns, and
improve security mechanisms to ensure government websites
are safe and reliable.
(Feb. 8,2018 )
Yingkou Municipal Government and KPMG sign Framework
Agreement on Strategic Cooperation
Yu Gongbin , mayor of Yignkou municipal government, met with
Zou Jun, chief partner of KPMG Enterprise Consulting (China)
Co., Ltd., before signing the contract.
Yesterday, Yingkou municipal government and KPMG Enterprise
Consulting (China) Co., Ltd. signed a strategic cooperation
framework agreement. The two sides will have long-term
cooperation in the field of business consulting services.
Before signing the contract, Mayor Yu Gongbin met with Zou
Jun, chief partner of KPMG Enterprise Consulting (China)
signing the contract.
Promoting the Construction of Comprehensive bonded area in
an All-round way
Yingkou held a Party-government Meeting, had a special
research on the construction and operation of Yingkou
Comprehensive Bonded Zone. Zhao Changfu and Yu Gongbin
attended the meeting and delivered speeches.(Jan.29,2018)
Government Work Report should stand for social consensus
¡°The government, whether in its policymaking or
implementation, must stand for social consensus and try its
best to enhance reasonableness and democracy in its
policies,¡± Premier Li Keqiang said Jan 24 at a symposium.
The symposium was held to solicit advice from leaders of
democratic parties and the All-China Federation of Industry
and Commerce, as well as those without party affiliation.
He acknowledged that the symposium is a significant practice
of socialist deliberative democracy and a step for the State
Council to be subject to democratic supervision.
After the guests gave their opinions and advice, the Premier
said, ¡°Your advice is very important. It can represent, to a
great extent, social consensus and the people¡¯s will. The
Government Work Report should include your feedback as much
He also appreciated the support and help from the three
groups. ¡°Over the past five years, you have conducted
research on some major issues concerning socioeconomic
development and made many insightful suggestions. I and
other members of the State Council have read them all and
forwarded them to relevant departments.¡±
Noting that this year marks the 40th anniversary of China¡¯s
reform and opening-up policy, Premier Li said that making
new accomplishments would be one of the best ways to honor
the basic State policy.
The Premier urged that more efforts should be made to
promote high-quality development and establish a modern
economic system. Practical measures should be taken to
deepen reform and opening-up, enhance creativity and
competitiveness, and ensure better lives and well-being for
He stressed that the Government Work Report should ensure
that it reflects the best common desires of the people.
Premier Li encouraged the three groups to continue playing
an active role in political consultation and democratic
oversight, to give their consistent support and help the
government meet the social development and economic growth
Made in China 2025 roadmap updated
China aims to become the world¡¯s leading manufacturer of
telecommunication, railway and electrical power equipment by
2025, as the country ramps up its implementation of the Made
in China 2025 strategy, according to a new roadmap released
on Jan 26.
Qu Xianming, an expert involved in drafting the updated
version of the Made in China 2025 technology roadmap, said
China has already made great strides in the above three
areas, but more efforts are needed to crack the bottlenecks
of key components in order to achieve global supremacy.
¡°It is not just about production capacity. Instead, we aim
to become No 1 in research and development, as well as the
application of these products,¡± said Qu, an expert with the
National Manufacturing Strategy Advisory Committee, an
organization that advises the government on plans to upgrade
the manufacturing sector.
According to Qu, home appliances, petroleum refining
equipment and construction machinery are also likely to be
added into the key areas of Made in China 2025.
¡°It is still under discussion. But if they are added to the
list, the central government will roll out measures to
assist their development,¡± Qu added.
The first version of the Made in China 2025 technology
roadmap was published in 2015. It was designed to guide
local governments and enterprises in their manufacturing
investment and other business decisions.
But the past two years have witnessed new ideas and
technologies pop up, demanding an updated technology roadmap
to reflect the new trends and problems in the manufacturing
Xin Guobin, vice-minister of industry and information
technology, said China has already become one of the world¡¯s
largest producers of more than 220 types of products.
¡°But we are still facing big challenges in producing
reliable core components, and many products are still
mid-tier to low-end. We hope the roadmap can serve as
guidance for companies to cultivate innovation and upgrade
their plants,¡± Xin said.
According to the updated roadmap, China¡¯s homegrown
robotics, high-end automation and new energy vehicles
industries are all likely to rank No 2 or No 3 globally by
But China will still lag behind some foreign countries in
the fields of semiconductors, operating systems and
industrial software at that time.
beef up quality certification system
To boost supply-side structural reform and administrative
streamlining, China is stepping up efforts to boost quality
by enhancing the quality certification system and quality
management, according to a circular recently released by the
As a basic principle, a unified and top-level plan is
required, with no possibility for industry monopoly or
market barriers. The market should play a decisive role in
supply and demand with governmental guidance.
Meanwhile, compulsory and voluntary certification should be
combined to call up efforts from all walks of life to
enhance quality management.
These efforts are aimed at building a sound quality
certification system in three to five years, with improved
quality in primary products, projects, services, consumer
goods and food, and some internally competitive brands.
International advanced quality management standards will be
adopted, such as the new ISO 9001. Companies should be
encouraged to enhance quality management using these
standards, which are to be introduced throughout the
industry and social governance.
Governments at all levels are expected to employ the quality
management system to transform their management styles with
better administration efficiency and credibility.
Efforts will be made to spread the quality certification
system to different enterprises with necessary and
compulsory certification in place for products concerning
security, health, and environment under the rules of the
World Trade Organization.
The quality of new technologies, products and business
models should be supervised in an inclusive but prudent way
in order to foster new economic drivers and bolster
Apart from the unified certification system, other redundant
certifications and related charges should be cleaned up.
Certification institutions should provide an integrated
solution from test to certification, to lower costs for
Moreover, a supervision system involving different parties
will be enhanced, and international cooperation is
encouraged for mutual recognition of quality certification.
to uproot ¡®protective umbrellas¡¯ of organized crime
¡ª A document issued on Jan 24 stressed that a campaign on
organized crime should involve fighting corruption,
including lower-level corrupt officials, and deal with
¡°protective umbrellas¡± of gang crime.
Disciplinary agencies should punish Communist Party of China
(CPC) members involved in gang crime in disciplinary
supervision and inspection, according to the document
released by the CPC Central Committee and the State Council.
The document said that disciplinary agencies and political
and legal bureaus should find and tackle the corruption
behind gang crime.
Disciplinary agencies at all levels should deal with
¡°protective umbrellas¡± and investigate no matter who is
Organized crime is deeply interwoven with corruption and
cases related to poverty reduction should be given the
highest attention. (Jan.29,2018)
China to make cities safer
BEIJING ¡ª China unveiled a guideline to push for safe
development of cities, as some major accidents in cities
caused great casualties and property loss in recent years on
The country must uphold the vision of making development
people-centered and never seek development at the cost of
safety, according to the guideline made public by the
general offices of the Communist Party of China Central
Committee and the State Council.
By 2020, China aims to achieve ¡°noticeable progress¡± in safe
urban development, and create a number of demonstration
cities in line with the objectives for becoming a moderately
prosperous society in all respects, the guideline said.
By 2035, the country should put in place an improved system
for safe urban development and create safe cities that are
in line with the requirements for basically realizing
socialist modernization, it added.
With the acceleration of China¡¯s urbanization, the
population, functions and sizes of Chinese cities have been
expanding rapidly, but safety hazards are also on the rise
as cities become more complicated.
At the end of 2016, the ratio of permanent urban residents
to total population stood at 57.35 percent, up from 52.57
percent at the end of 2012, data from the National Bureau of
The country must raise the capability of ensuring urban
safety and prevent major accidents to create a sound
environment for people¡¯s lives and work, according to the
The notion of safe development should be reflected in making
plans for cities, including those for urban social and
economic development and for disaster prevention and relief.
For residential areas, commercial areas, development zones,
industrial parks and port areas, safety must be the
prerequisite in determining their spatial layouts, the
Safety-related laws, regulations and standards should be
improved to raise the country¡¯s ability to ward off risks
and ensure the safe functioning of urban facilities, it
¡°Safety must be put in the first place in urban
infrastructure construction,¡± according to the guideline.
China should push forward the construction of
multi-functional underground pipeline corridors in an
orderly manner, and reinforce the safety supervision of the
construction and operation of transport, water, drainage,
heating, natural gas and other infrastructure projects.
China should also strengthen safety risk control by
thoroughly identifying urban safety risks, building a risk
information management platform and drawing a map for the
distribution of such risks in four tiers, with red
representing the most severe, followed by orange, yellow and
The screening and overhaul of urban safety hazards will be
standardized by further improving the mechanism for the
identification, registration and supervision of major
sources of dangers, building a database for dynamic
management and raising the online supervision capacity, the
Emergency management and rescue capabilities will be
reinforced, as the country will pursue fast, scientific and
effective rescue efforts, improve the emergency rescue
management in cities and push for information sharing and
coordination of different departments.
The guideline also detailed measures on raising the
country¡¯s safety supervision efficiency, making cities
better at ensuring safety and improving leadership and
coordination. (Jan.12,2018) from:english.gov.cn
Consumer inflation stays within target in 2017
China¡¯s consumer inflation increased by 1.6 percent last
year, lower than the yearly control target of 3 percent.
Analysts said it will moderately rise by over 2 percent this
year, but will not trigger any major monetary policy
The Consumer Price Index accelerated to 1.8 percent in
December, the National Bureau of Statistics announced on its
Weakening food prices are a major contributor to the fall in
CPI inflation last month, Sheng Guoqing, a senior
statistician of the NBS, said in a statement. Non-food price
rises are the main cause of the overall growth, he said.
Whole-year CPI growth came in at 2 percent in 2016,
according to the NBS. China set the control target of 3
percent last year.
Looking ahead, the consumer inflation rate could surge in
February, in which the Spring Festival falls, analysts said.
The seven-day holiday for the festival generally boosts
consumption and consumer prices.
Zhu Jianfang, chief economist at CITIC Securities, said CPI
growth could reach 3 percent in February and the whole-year
reading could rise to 2.5 percent this year.
Huatai Securities forecast in a research note that average
CPI growth could be around 2.5 percent this year. If
international oil prices rose to about $75 a barrel, China¡¯s
inflation could reach 3 percent, it said.
¡°The expected high CPI reading in February could have a
short-term impact on monetary policymaking and the financial
market,¡± Zhu said.
But for the whole year, moderate CPI growth will not have a
major bearing on the current monetary policy stance, said
Yan Ling, analyst with China Merchants Securities. Yan
forecast whole-year CPI growth of 2.3 percent.
Monetary policy will become neutral this year, analysts
¡°This year¡¯s (financial) regulatory focus will be on
prevention of risks and cutting leverage,¡± according to a
Haitong Securities research note.
China¡¯s Producer Price Index, which gauges factory-gate
prices and is a major indicator of business health, rose 4.9
percent from a year earlier in December, compared with 5.8
percent in November. It is the slowest growth in 13 months.
The PPI decline is attributable to the weakening price
growth in such sectors as oil and gas exploration, ferrous
and non-ferrous metals, and coal mining and washing, which
had bolstered the strong growth of PPI in previous months.
For the whole of 2017, PPI rose by 6.3 percent, compared
with a drop of 1.4 percent for 2016, reversing the trend of
continual PPI decline since 2012. (Jan.12,2018) from:english.gov.cn
China steps up taxation reform
According to the State Administration of Taxation, in
2017, taxation issues were mentioned during 24 of 34 State
Council executive meetings, including optimization of the
taxation system, tax relief, and further improvements in the
business environment. This clearly demonstrates that tax
occupies an exceedingly important place in governance.
Optimization of taxation system
Value-added tax (VAT) reform was a major concern of the
State Council in 2017, for which a succession of
arrangements were made, covering streamlining VAT rates,
formulating detailed plans, legalizing VAT reform by
abolishing business tax regulations, and introducing
regulations in environmental protection, among others.
Taxation reform injects tremendous momentum into the
development of market economy and plays a significant part
in market regulation, economic restructuring, and the
upgrading of drivers, said Yue Shumin, a professor at the
School of Finance of Renmin University.
Tax relief is also a task of great importance, a key vehicle
for a slew of economic policies, including mass
entrepreneurship and innovation, sharing economy
facilitation, and Made in China 2025.
The implementation work of tax cuts, based on actual
conditions, was fulfilled by taxation authorities at all
levels, bolstering economic restructuring and safeguarding
people¡¯s well-being, said Yang Zhiyong, a researcher at the
National Academy of Economic Strategy of the Chinese Academy
of Social Sciences.
Further improvements in business environment
Streamlining multiple certificates into one has been in full
swing since April, for which the State Council stepped up
related legalization and policies in a bid to uphold
fairness and equity in the business environment.
In addition, taxation reform also acts as a capable driver,
highlighting streamlining administration and delegating
power while improving regulation, and enhancing public
services. This will boost the construction of an
internationalized and market-driven business environment
that is fully regulated by the law, said Li Wanfu, head of
the tax administration¡¯s Taxation Research Center.
(Jan.11,2018) from: english.gov.cn
Laws and regulations for FTZs to be temporarily adjusted
The State Council has decided to adjust some laws and
regulations adapted to China¡¯s Free Trade Zones (FTZs), in a
bid to better implement the opening-up and reform policies
in the zones.
Eleven administrative regulations, including the ship
registration rules, two State Council circulars on domestic
urban rail transit equipment and city rapid rail transit and
another two documents on industries for foreign investment
and foreign investment in aviation industry, will be
temporarily adjusted in the FTZs, according to the State
It also urged related departments and governments of the 11
provincial regions where the free trade zones are
established, such as Shanghai Municipality, Fujian, Zhejiang
and Henan provinces, to adjust local related laws and
regulations to adapt to the changes made by the central
President Xi delivers New Year speech vowing resolute reform
President Xi Jinping delivers a New Year speech to
extend New Year greetings to all Chinese, and best wishes to
friends all over the world, in Beijing, capital of China,
Dec 31, 2017.[Photo/Xinhua]
BEIJING ¡ª President Xi Jinping delivered a New Year speech
on Dec 31, vowing that China would resolutely carry out
reform in 2018.
¡°We will take the opportunity of celebrating the 40th
anniversary of the reform and opening-up in 2018 to further
carry out reform, as reform and opening-up is the path we
must take to make progress in contemporary China and to
realize the Chinese dream,¡± Xi said.
He cited a Chinese adage, saying that the Chinese people
would ¡°cut paths through mountains, and build bridges across
rivers¡± to move forward on reform.
He extended New Year greetings to all Chinese, and best
wishes to friends all over the world.
Xi said the year 2018 marked the first year of fully
implementing ¡°the spirit of the 19th National Congress of
the Communist Party of China,¡± which outlines China¡¯s
desired development blueprint over the next three decades.
¡°Building a high-rise begins with mounds of soil,¡± Xi said,
borrowing an ancient Chinese phrase to urge his fellow
Chinese to take a step-by-step approach and work hard to
turn the blueprint into a reality.
Xi said that by 2020 all rural residents living below the
current poverty line should have been lifted out of poverty.
It will be the first time in China¡¯s thousands of years of
history that extreme poverty is eliminated.
¡°It is our solemn promise,¡± Xi said. ¡°Only three years are
left to 2020. Every one of us must be called to action, do
our best, take targeted measures to secure victories one
¡°This is a great cause, important to both the Chinese nation
and humanity. Let¡¯s do it together and make it happen,¡± he
Xi said China¡¯s great achievement of development was made by
the people and for the people, and that among the people¡¯s
most pressing concerns were education, employment, income,
social security, healthcare, elderly care, housing and
The President admitted that there were areas where the
government¡¯s work fell short of expectations. Though
progress has been made, he said, issues of public concern
¡°That is why we should strengthen our sense of
responsibility, and do a good job of ensuring the people¡¯s
well-being,¡± Xi said. ¡°The well-being of our people is the
Party and the government¡¯s greatest political achievement.
Our cadres should put the people¡¯s state of living at the
heart, and help them live a better life.¡±
On international affairs, Xi said the world expected to hear
China¡¯s stance and attitude on issues concerning peace and
¡°As a responsible major country, China has something to
say,¡± Xi said.
¡°China will resolutely uphold the authority and status of
the United Nations, actively fulfill China¡¯s international
obligations and duties, remain firmly committed to China¡¯s
pledges to tackle climate change, actively push for the Belt
and Road Initiative, and always be a builder of world peace,
contributor of global development and keeper of
international order,¡± he said. ¡°The Chinese people are ready
to chart out a more prosperous and peaceful future for
humanity, with people from other countries.¡±
Economy to remain stable through 2018
China¡¯s economic growth results are expected to remain
stable not only in 2017 economic reports yet to be released
but also in 2018, despite a slight decline in a major index
measuring the expansion of the manufacturing sector in
December, analysts said.
While there is some variation in the forecast, analysts said
the country¡¯s GDP growth may register up to 6.9 percent for
The official manufacturing purchasing managers index,
released on Dec 31, dropped to 51.6 in December, compared
with 51.8 in November, according to the National Bureau of
Still, the index remained comfortably above the 50-point
mark that separates growth from contraction, with numbers
above 50 indicating expansion.
¡°The manufacturing sector is stable and improving, a trend
that has become more entrenched,¡± Zhao Qinghe, a senior NBS
statistician, said in a statement.
The annual average reading of the index for 2017 was 51.6,
which is 1.3 points higher than in 2016.
¡°The December reading dropped a little bit, but it still
reached the annual average level, indicating that expansion
of the manufacturing sector remains strong,¡± Zhao said.
As seen in PMI changes in 2017, the trend of an improving
economy has become more obvious, said Chen Zhongtao, an
analyst at China Logistics Information Center.
¡°The PMI has remained above 51 and even exceeded 52 in
September. The overall trend is stable, with only small
monthly fluctuations,¡± he said.
Based on the average monthly reading of PMI, Chen said
China¡¯s GDP growth could reach about 6.9 percent in 2017.
Growth in the fourth quarter could reach 6.7 percent and the
whole-year growth could be 6.8 percent, said Li Chao, an
analyst at Huatai Securities.
China achieved GDP growth of 6.9 percent for the first
three-quarters. Analysts generally predicted that growth
could dip in the fourth quarter as the effect of
environmental protection measures and slowing property sales
Growth in China¡¯s services industry picked up in December,
an official survey showed on Dec 31, as the sector continued
to show solid expansion.
NBS also said that China¡¯s official nonmanufacturing PMI
rose to 55 in December, up from 54.8 in November.
The services sector accounts for over half of China¡¯s
economic growth, and analysts said the strong
nonmanufacturing sector expansion, together with the
manufacturing expansion, will contribute to the stable GDP
growth this year.
The nonmanufacturing index reading has remained above 54 in
2017 except in August.
Qu Qing, an analyst at Hua Chuang Securities, said the
construction sector has helped bolster the index, indicating
that infrastructure investment remains stable, which will
help boost overall economic growth in 2018.
Despite its stable economic growth trend, China also faces
some challenges, such as an increase in raw materials prices
and rising corporate costs, said Chen of China Logistics