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