http://en.xfafinance.com us-en Xinhua Finance Agency desdev@vip.qq.com http://en.xfafinance.com/html/In_depth/2023/910684.shtml Xinhua Finance Agency In-depth Fri, 14 Jul 2023 12:25:35 +0800 http://en.xfafinance.com/html/In_depth/2023/910684.shtml
BEIJING, July 14 (Xinhua) -- As many cities in China are hit by high temperatures this summer, escaping the summer heat by travelling to cities blessed with abundant summer tourism resources has become an increasingly popular choice among Chinese travellers.

In the third quarter of this year, the overall travel intention of high-temperature cities reached 94.6 percent, according to the data center of the Ministry of Culture and Tourism.

Boasting a cooler climate, Changchun City, in northeastern China's Jilin Province, serves as a summer refuge for many domestic tourists each year.

To welcome visitors from across the country, the Zoological and Botanical Garden of Changchun has unveiled a park themed around the famous Chinese novel "Journey to the West." Tourists can catch glimpses of familiar characters like the Monkey King and Pigsy while immersing themselves in the charm of traditional Chinese culture.

During the three-day Dragon Boat Festival holiday which started on June 22, the park received 149,900 visitors, an 18-fold increase year on year.

"With intellectual properties of traditional culture, China's localized amusement parks have great potentials," said Du Guijiang, who is a project leader of the garden.

"Consumption scenarios like water parks, summer resorts and cold drink stores have become popular this summer," Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said.

China's summer resort tourism and related markets have reached 1.2 trillion yuan (about 168.26 billion U.S. dollars) to 1.5 trillion yuan in value, according to a report released by the China Tourism Academy.

Data from online travel agency Trip.com Group shows that summer travel orders for destinations in the cities of Chengde, Xining, Yichun, Kunming and Guiyang had grown by 170 percent, 77 percent, 71 percent, 63 percent and 57 percent year-on-year, respectively, as of July 3.

In order to meet the increasingly customized and diversified needs of tourists, popular tourist destinations such as Hubei, Shaanxi and Heilongjiang have been exploring practices including camping bases, intangible cultural heritage experiences and night markets.

The "summer economy" can also drive the development of tourism, catering and other related industries, injecting new vitality into economic growth, Hong said.

China will further optimize its modern tourism system, while promoting the development of business forms such as summer tourism, said a development plan for the tourism sector during the 14th Five-Year Plan period (2021-2025). ]]> http://en.xfafinance.com/html/In_depth/2023/910098.shtml Xinhua Finance Agency In-depth Wed, 12 Jul 2023 08:49:45 +0800 http://en.xfafinance.com/html/In_depth/2023/910098.shtml
HONG KONG, July 11 (Xinhua) -- The economies in the Asia-Pacific have been showing resilience and are poised to gain steam mainly owing to faster growth of the Chinese economy after its reopening from the COVID-19 pandemic.



ASIA-PACIFIC ECONOMY POISED TO MOVE FORWARD

Developing economies in Asia and the Pacific this year are projected to see better performances than in 2022 as the continued easing of pandemic restrictions boosts consumption, tourism and investment, the Asian Development Bank (ADB) has said, highlighting "China's reopening is the main factor brightening the region's growth prospects."

Economies in Asia and the Pacific are forecasted to grow 4.8 percent this year and next year, compared to an increase of 4.2 percent in 2022, according to the latest Asian Development Outlook report released in April.

Improved consumption and investment are boosting recovery in many regional economies, offsetting the impacts of elevated food and energy prices triggered by the Russia-Ukraine conflict and other global headwinds, the report said, adding that tourism and remittances are trending upward as pandemic restrictions ease further, and in many tourism-dependent economies, visitor arrivals are steadily improving toward pre-pandemic levels.

With the adjustment of its COVID-19 strategy, the Chinese economy is expected to grow 5.0 percent this year and 4.5 percent in 2024, compared with a 3.0-percent growth in 2022, it said.

Strong tourism performance and robust domestic demand are boosting Southeast Asian economies such as Indonesia, the Philippines and Vietnam, with the subregion projected to grow 4.7 percent this year and 5.0 percent in 2024, it added.

"Prospects for economies in Asia and the Pacific are brighter, and they are poised for a strong recovery as we return to normalization following the pandemic," ADB Chief Economist Albert Park said.

"People are starting to travel again for leisure and work, and economic activities are gathering pace. Because many challenges remain, governments in the region need to stay focused on policies that support stronger cooperation and integration to promote trade, investment, productivity and resilience," he said.

However, risks still persist, the report said, citing the Russia-Ukraine conflict which could stoke renewed spikes in commodity prices and global inflation and induce further monetary tightening if protracted or escalated.

Trade in goods and services, cross-border investment, labor mobility, and technology transfers all support the creation of a much larger, regionally integrated market, which is catalyzed by the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade pact taking effect to all its 15 members in June, according to trade experts.

ADB experts told Xinhua that RCEP is expected to help facilitate intraregional trade and investment through tariff elimination, streamlined rules of origin and regional cumulation provisions, which are expected to provide flexibility to businesses to tap into the benefits of preferential market access, while strengthening regional supply chains.

Also, the Belt and Road Initiative (BRI), a reference to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, initiated by China in 2013 to build trade and infrastructure networks connecting Asia to Europe and Africa on and beyond ancient Silk Road trade routes, pushed ahead with connectivity in the Asia-Pacific region.

Joseph Matthews, professor at the BELTEI International University in the Cambodian capital Phnom Penh, told Xinhua that the BRI has complemented the Master Plan on ASEAN Connectivity, and the initiative has provided great benefits to Cambodia, ASEAN and the rest of the world.

Pointing to Asia's pivotal role in climate change and sustainability, AI and digital, as well as innovation, the aphorism that the world's center of gravity is shifting toward Asia could be in mind, said Neeraj Aggarwal, chair of the Asia Pacific at the Boston Consulting Group (BCG).

"Over the last decade, market capitalization in Asia-Pacific increased by 15 trillion U.S. dollars, nearly doubling the size of the region's equity markets. Not just this, Asia is home to one-third of the world's unicorns and within a couple of years is predicted to have more unicorns than the rest of the globe," he said.



CHINESE ECONOMY REMAINS DRIVING FORCE OF GLOBAL GROWTH

According to the latest data from the National Bureau of Statistics, the purchasing managers' index (PMI) for China's manufacturing sector came in at 49 in June, up from 48.8 in May, ending a three-month decline, another encouraging sign of strengthening economic momentum.

China aims to expand its economy by around 5 percent in 2023, according to this year's government work report. The country's GDP grew 4.5 percent year-on-year to 28.5 trillion yuan (about 3.97 trillion dollars) in the first quarter of 2023, official data showed.

Amid challenges on both domestic and external fronts, mainly weak domestic demand and geopolitical risks, the government has ramped up efforts to shore up growth momentum.

The central bank has reduced the one-year interest rate of its medium-term lending facility, a tool adding liquidity to the banking system, by 10 basis points to 2.65 percent. About 237 billion yuan (33.15 billion U.S. dollars) was pumped into the market through the operation.

The government has worked to lower financing costs for business entities and increase loans to small and micro firms. Sectors dedicated to technological innovation or key industrial chains will enjoy tailor-made tax and fee cutting measures, and small taxpayers with monthly sales of less than 100,000 yuan (13,880 U.S. dollars) will be exempted from value-added tax by the end of this year.

In May, China's value-added industrial output went up 3.5 percent year-on-year, retail sales of consumer goods gained 12.7 percent, and the service sector index rose 11.7 percent, the statistics agency said.

China's economic growth in the second quarter will be significantly faster than in the January-March period and economic performance will return to normal level in the second half, Fu Linghui, spokesperson for the National Bureau of Statistics, said.

Despite challenges ahead, China, with its solid material and technological foundation, huge market and strong innovation capacity, is capable of overcoming difficulties and promoting the recovery and improvement of the economy, Fu said.

Experts believe that China's economic outlook for upward trajectory in the long term remains unchanged.

In its China Economic Update, the World Bank maintained its China growth forecast at 5.6 percent in 2023, led by a rebound in consumer demand, stressing that capital spending on infrastructure and manufacturing is expected to remain resilient.

The Organization for Economic Cooperation and Development said that China's reopening will provide impetus for world economic growth.

According to a recent report by the China Council for the Promotion of International Trade, 97 percent of the surveyed foreign companies rated China's foreign investment policy since the fourth quarter of last year "satisfied" or above.

A report issued by the EU Chamber of Commerce in China shows that the size of China's market, strong demand, the fast pace of commercialization of R&D results and ample local talents steer a large share of European companies toward deeper localization, and close to 60 percent of the companies surveyed said that they would increase R&D expenditure in China in the coming five years.

An AmCham China survey shows that 66 percent of U.S. companies in China will maintain or increase investment in China in the coming two years.

Liao Tianshu, chairman of BCG Greater China, told Xinhua that there is huge potential for the Chinese economy, and over the medium and long term, consumption market will be on the rise due to expansion of middle class, and advanced digital technology will play a big role in promoting economic growth.

(Xinhua reporters Wu Changwei in Phnom Penh and Liu Kai in Manila also contributed to the story) ]]> http://en.xfafinance.com/html/In_depth/2023/884007.shtml Xinhua Finance Agency In-depth Fri, 24 Mar 2023 16:15:52 +0800 http://en.xfafinance.com/html/In_depth/2023/884007.shtml
NANNING, March 24 (Xinhua) -- Zhou Min, a car salesperson at an Audi 4S store in Nanning, capital of south China's Guangxi Zhuang Autonomous Region, handed over the key of an Audi Q4 to a buyer, marking his 16th sale of an Audi vehicle this year.

"We have had a promotional campaign recently. The cash discount for the Audi Q4 has been increased from 23,000 yuan (about 3,368 U.S. dollars) to 60,000 yuan," Zhou said.

Stimulated by preferential measures, such as giving discounts and offering gift packs, the Audi retail dealer has attracted more potential buyers coming for a closer look since the campaign launched at the beginning of March.

Due to some incentive policies in 2022, such as halving the car-purchase tax for passenger vehicles priced at no more than 300,000 yuan and with 2-liter engines or smaller, and purchase tax exemption for new energy vehicles (NEV), China's auto market maintained growth last year.

Data from the China Association of Automobile Manufacturers (CAAM) showed that the country's auto sales reached 26.86 million units last year, up 2.1 percent year on year. During the same period, the country's NEVs sales rose 93.4 percent to about 6.89 million units. The total production and sales volume of automobiles in China has ranked first in the world for 14 consecutive years, according to the CAAM.

However, affected by the epidemic and the termination of the car-purchase tax cut policy and the government subsidy program for NEVs at the end of last year, China's auto sales significantly declined in the first two months of this year, according to the CAAM.

The country's domestic demand has not yet been fully released. The steady growth of the Chinese automobile industry still needs relevant policies to boost it, said Chen Shihua, deputy secretary general of the CAAM.

The first quarter is usually a period of slack sales of vehicles. But with stimulus policies and measures, sales will gradually pick up, said a senior manager from SAIC-GM-Wuling (SGMW), a major Chinese automobile manufacturer based in Liuzhou in Guangxi.

To stimulate auto consumption, SGMW has cooperated with local commerce authorities to roll out various incentive policies, including providing government subsidies and consumption coupons to buyers to reduce their costs, according to sources with SGMW.

Auto enterprises and some local governments have launched a series of sales campaigns.

In central China's Hubei Province, the Dongfeng Motor Corporation launched a massive car sales promotional campaign in March. Buyers who purchase certain Dongfeng Motor models can enjoy a 90,000 yuan cut in price with subsidies offered by the local authorities and the company, according to Dongfeng Motor.

Thanks to the continuous provision and implementation of suitable local policies, including offering financial subsidies and coupons for consumers to support and encourage the development of the NEV industry and automobile consumption nationwide, sales of NEVs in China maintained a positive growth trend.

The production and sales of NEVs in the country reached 977,000 and 933,000 units in the first two months of 2023, up 18.1 percent and 20.8 percent year on year, respectively, the CAAM said.

In February, the recovery of the NEV market was notably on the rise. BYD, China's largest NEV manufacturer, said its NEV sales jumped 112.6 percent to 193,655 units.

Looking at startup carmakers, NIO delivered 12,157 NEVs in February, up 98.3 percent from 2022. Li Auto delivered 16,620 units during the same period, up 97.5 percent.

"We are optimistic about the annual sales growth," said Li Bin, founder of NIO, noting that the company's overall sales have improved significantly recently, and its market share in the high-end, pure electric market has continued to increase.

"The auto market did not have a good start in January. It is a reasonable trend in line with expectations," said Cui Dongshu, secretary general of the China Passenger Car Association.

Stabilizing and expanding auto consumption is a significant part of consumption promotion. The stimulus policies of the government and auto manufacturers to boost auto consumption will stimulate the auto market, Cui added.

"China's domestic auto market still has enormous potential, with economic growth and personal consumption gradually strengthening. I have confidence in the development of the auto market this year," Cui said. ]]> http://en.xfafinance.com/html/In_depth/2023/871948.shtml Xinhua Finance Agency In-depth Mon, 30 Jan 2023 11:00:29 +0800 http://en.xfafinance.com/html/In_depth/2023/871948.shtml
LONDON, Jan. 30 (Xinhua) -- A rebound in travel and consumption during the Spring Festival holiday illustrates the resilience of the Chinese economy and supports forecasts of a further recovery, analysts have said.

"The global consumer goods industry has its eyes on the Chinese Spring Festival 2023 -- the acid test for the Chinese consumption engine," said consumer analyst Bobby Verghese at the data analytics and consulting company GlobalData in a written interview with Xinhua.

Verghese added that manufacturers, retailers, and hospitality operators are enthused by the positive consumer response to the holiday celebrations.

The analyst noted that both multinational and regional companies have rolled out customized offerings for the Year of the Rabbit, with marketing campaigns themed on the revival of family gatherings and traditional rituals.

"Luxury brands and service providers are at the forefront, tapping the resumption of travel and tourism, outdoor dining, and gifting activities," Verghese said, noting that many companies are using this occasion to showcase their latest offerings and deliver novel digital brand-engagement experiences to shoppers.

Official statistics showed about 308 million domestic trips were made in China during this year's Spring Festival holiday, up 23.1 percent year on year. The holiday box office sold a total of more than 187.6 million tickets as of 12 p.m. (1600 GMT) Friday, generating a whopping revenue of 6.76 billion yuan (about 988 million U.S. dollars).

In China, mobility started to recover quickly in early January. Intra-city traffic has nearly returned to pre-COVID-19 levels, noted an analysis published by multinational financial services company Societe Generale on Thursday.

A consumption recovery is also underway, with sales of food, beverages and clothing rising month on month in the first half of January at key retailers and the booking rate rebounding to over 80 percent in some hotels and bed-and-breakfasts in Shanghai and Yunnan, the analysis added.

"We now see an early and strong recovery starting in 1Q, with three quarters of above-trend growth. Private consumption, particularly that of services, is set to lead the recovery, supported by pent-up demand, a recovering labour market and excess savings," it noted.

A report published by the investment banking company UBS on Thursday also mentioned that travel and box office data during the first four days of China's Lunar New Year showed signs of recovery.

"The latest data supports our view of a recovery in consumption and activity in the current quarter, with such momentum picking up pace from 2Q onwards," it added.

In recent decades, China has evolved into a global economic leader in consumption, trade and investment, another UBS report said on Wednesday.

"As a result, the country has played a meaningful role as a global growth engine -- not only benefiting Chinese companies and its people, but many other developing and developed markets," it added. ]]> http://en.xfafinance.com/html/In_depth/2023/871917.shtml Xinhua Finance Agency In-depth Mon, 30 Jan 2023 09:37:58 +0800 http://en.xfafinance.com/html/In_depth/2023/871917.shtml
BEIJING, Jan. 30 (Xinhua) -- In its three-year-long fight against COVID-19, China posted outstanding results in economic development and epidemic control, reinforcing its status as a leading engine for the global economy.

From 2020 to 2022, China's economy posted an annual average growth of 4.5 percent, outpacing the world average of around 2 percent, according to Yuan Da, director of the Department of National Economy of the National Development and Reform Commission.

In 2022, the economy grew 3 percent year on year to a record high of 121 trillion yuan (about 18 trillion U.S. dollars), with the increment standing at 6.1 trillion yuan, equivalent to the economic aggregate of a medium-sized country.

It also marks a new and higher level in terms of economic aggregate after the Chinese economy topped the thresholds of 100 trillion yuan and 110 trillion yuan in 2020 and 2021, respectively -- maintaining its position well as the world's second-largest economy.

Analysts attributed the hard-won results to the country's effective coordination in fighting COVID-19 and its economic fallouts simultaneously.

Thanks to effective virus control and timely pro-growth policies, China's economy has quickly emerged from the epidemic-induced slump and consolidated its recovery momentum for a brighter outlook.

CURBING THE VIRUS

To cope with the constantly evolving epidemic situation, China has been dynamically optimizing its control measures while enhancing the treatment and vaccination capacity, effectively safeguarding the lives and health of its 1.4 billion population at minimum costs.

As of Jan. 13, 92.9 percent of the Chinese population has been fully vaccinated, with more than 90 percent of people above 60 covered by vaccination.

With Omicron much less pathogenic and deadly, China, in December last year, announced ten new measures to lift numerous COVID-19 restrictions. On Jan. 8, its management of COVID-19 was officially downgraded from Class A to Class B.

Less than one month after the optimization of COVID-19 response measures in December 2022, China reported declining numbers of fever patients and critical COVID-19 cases as both had passed the peak.

ECONOMIC RESILIENCE

In the just-concluded Spring Festival holiday, China's consumption made a strong comeback.

During the week-long holiday, sales revenue of China's consumption-related sectors rose 12.2 percent from the same holiday period in 2022. Its cinemas sold 129 million tickets, generating a whopping revenue of 6.76 billion yuan, the second highest-grossing to date.

Wen Bin, the chief economist with China Minsheng Bank, said that warming demand at home would propel the turnaround in the Chinese economy this year and estimated the country's full-year GDP growth at around 5.5 percent.

Aside from the overall economic growth, China also made significant headway in maintaining consumer price stability, guaranteeing food and energy security, and improving people's livelihoods.

In 2022, China's CPI grew by 2 percent, a fraction of the increases reported in the United States, the eurozone, and Britain. It is also lower than those of other emerging economies.

Amid a global food crisis, the country has secured a bumper harvest for the 19th year in a row, with its grain output at about 686.53 billion kg in 2022, up 0.5 percent from 2021.

A total of 11.86 million, 12.69 million, and 12.06 million new urban jobs were created in 2020, 2021, and 2022, respectively, all surpassing the targets set for each year.

Despite the gloomy global investment environment, China remains one of the most attractive investment destinations in the world. Foreign direct investment (FDI) in the Chinese mainland, in actual use, expanded 6.3 percent year on year to 1.23 trillion yuan in 2022.

China has now become a major trading partner for more than 140 countries and regions, with its total trade of goods up 7.7 percent year on year in 2022, topping the world for six consecutive years.

BRIGHTER OUTLOOK

Recently, multiple international investment banks and financial institutions, including Morgan Stanley, Goldman Sachs, HSBC, Barclays, and Natixis, have upwardly revised their forecast for China's economic growth rate in 2023, betting on the country's rosy prospects and strong resilience.

China has remained a glimmer of hope despite the bleak outlook of the global economy grappling with recession fears and persistent economic weakness.

A recent flagship report by the United Nations painted a gloomy picture of the global economy. It warned that multiple and intersecting crises would likely add more damage to the worldwide economy. It is projected that global economic growth would slow from 3 percent in 2022 to 1.9 percent this year.

However, despite the downbeat global outlook, the report projected China's GDP growth to hit 4.8 percent in 2023.

China "can play a vital role in stimulating global growth," said Hamid Rashid, chief of the Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs. He cited China's ample room for monetary policy maneuvers, low inflation rate, and strong consumption recovery momentum.

Echoing Rashid's point, Bob Moritz, global chairman of PricewaterhouseCoopers, said he is bullish on China's economic outlook, given its strong consumer base, technological advancement, and top exporter's position.

"China has always been very impressive in dealing with challenges. I'm quite optimistic about the outcome," Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef told Xinhua, adding that China would play an essential role in helping to boost global economic growth. ]]> http://en.xfafinance.com/html/In_depth/2022/865349.shtml Xinhua Finance Agency In-depth Wed, 28 Dec 2022 09:53:11 +0800 http://en.xfafinance.com/html/In_depth/2022/865349.shtml
BEIJING, Dec. 28 (Xinhua) -- The year 2022 has seen the world economy limping on through the shockwaves of a barrage of unknowns. And the year 2023 could be off to a fairly rough start due to the continued impact of such undesired events like the Ukraine crisis, the U.S. Federal Reserve rate hikes, a worldwide inflation, the energy and food crises, as well as the lingering pandemic.

Against the backdrop of such a volatile international landscape, China has maintained sound fundamentals and pursued high-quality development. The resilience and potential of its economy have inspired hope among the international community.



"WORLD WITH MORE FRAGILITY"

Ordinary people around the world have already been leading a difficult life in 2022: renting a house is too expensive, the energy bill is too high to afford, going to the supermarket often means snapping up vegetables in sales.

"We may be entering a new era of Great Stagflationary Instability," Nouriel Roubini, a professor emeritus of economics and international business at New York University's Stern School of Business, wrote in a Time magazine article in mid-October.

Devastating inflation has been felt in both developed and developing countries. The annual inflation rate of the United States reached 9.1 percent in June, the highest in almost 41 years, and it remained as high as 7.1 percent in November. Eurozone's inflation has been in double digits for three consecutive months. Core consumer prices in Japan jumped 3.7 percent in November, the biggest since December 1981. Türkiye's annual inflation rate accelerated to 85.51 percent in October, its highest level since 1997. Inflation in Argentina is expected to hit almost 100 percent by the end of the year.

The United States and its allies imposed rounds of sanctions on Russia in hopes of choking the country's energy export channels and destroying its economy. However, those sanctions have backfired and hurt U.S. allies, and have triggered a worldwide energy crisis.

"The global economy is reeling from the largest energy crisis since the 1970s. The energy shock has pushed up inflation to levels not seen for many decades and is lowering economic growth all around the world," Alvaro Santos Pereira, chief economist ad interim of the Organization for Economic Cooperation and Development (OECD), wrote in late November.

Adding to those troubles is a United States continuously introducing destructive policies that weigh on the world economy by driving up global prices, disturbing financial markets and undermining the global economic and trade order.

To bring down inflation, the Fed has raised interest rates seven times this year with a total increase of 425 basis points, and signaled that it will continue to raise rates in early 2023, and will not begin to cut them until 2024. The rest of the world has felt the pain.

The International Monetary Fund (IMF) forecasted that global economic growth will slow from 6.0 percent in 2021 to 3.2 percent this year. Many developing countries have seen their currencies weaken against the dollar, while some low-income countries are already at high risk of or in debt distress.

The global economy is "dangerously close" to a recession, as inflation remains elevated, interest rates rise, and a growing debt burden hits the developing world, World Bank President David Malpass said in October.

"We are experiencing a fundamental shift in the world economy from one of relative predictability ... to a world with more fragility," IMF Managing Director Kristalina Georgieva said in early October.



A POINT OF DIVERGENCE

The IMF already lowered its global growth outlook for 2023 to 2.7 percent in October. However, Georgieva reiterated in mid-December that the likelihood of further downgrades in its projections will be "high," calling 2023 a "very difficult year."

Meanwhile, many observers believed that 2023 could be a point of divergence, with developed countries possibly sliding into a recession and emerging economies starting to recover.

An economic outlook note on the United States by OECD said real GDP is projected to grow by 0.5 percent in 2023. More pessimistically, a recession probability model by Bloomberg economists forecasted a 100-percent chance of a recession in the country by October 2023.

The market has expected the Fed to cling to its aggressive monetary policy. Economists surveyed by Bloomberg see median estimate of the policy benchmark peaking at 4.9 percent in 2023, as the central bank will likely introduce two more rate hikes of 25 basis points next year.

"Inflation is eroding everything," said Jamie Dimon, chairman and chief executive officer of JP Morgan, in early December. "When you're looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about."

Things could be worse for Europe. The European Central Bank has raised interest rates four times since July with a total increase of 250 basis points. In the meantime, the EU's sanctions have largely reduced Russia's energy exports to Europe, pushing energy prices higher and further exacerbating Europe's pain.

For 2023 as a whole, the European Commission's autumn forecast projected real GDP growth in both the EU and euro area at 0.3 percent -- well below the 1.5 percent and 1.4 percent expected in the previous July forecast.

"The surge in energy prices and rampant inflation are now taking over and we are facing a very difficult period both from a social and economic point of view," European Commissioner for Economy Paolo Gentiloni warned in November.

He said the outlook for next year has "weakened significantly," and most EU countries will be in recession in the fourth quarter of this year.

The path forward for emerging economies is a bit sunnier. While the United States and European economies falter, the emerging markets of Asia will altogether account for three-quarters of world growth next year, the OECD said.

"While external demand will remain soft through the first half of 2023, Asia's domestic demand is supported by reopening and the easing of financial conditions," two Asia economists of Morgan Stanley wrote in November on Singapore-based The Business Times. "In 2023, Asia's growth will be able to outperform on the back of robust domestic demand."

East Asia will sustain strong economic growth in 2023, said Kiatipong Ariyapruchya, senior country economist of the World Bank for Thailand, adding that China's economic recovery will serve as a "tailwind" for global economic revival.



CUTTING THROUGH DARKNESS

In the face of multiplying crises in 2022, China has maintained the overall stability of its economy by effectively coordinating COVID-19 policy with economic and social development, and introducing a series of stimulus packages to support enterprises, stabilize consumer prices, and boost the confidence of global investors.

Looking ahead, China has not only prioritized economic stability, aiming to pursue steady progress while ensuring economic stability, but also pledged to further expand domestic demand and give full play to the fundamental role of consumption and the key role of investment in 2023.

Considering the fact that Beijing has a diverse toolbox at its disposal to secure a resilient recovery, observers predict the Chinese economy will have a sound performance next year, which will inject strong momentum into world recovery.

The Chinese market continues to show its appeal. Data from China's Ministry of Commerce said foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 9.9 percent year-on-year to nearly 1.16 trillion yuan in the first 11 months of the year. In U.S. dollar terms, the inflow went up 12.2 percent year-on-year to 178.08 billion dollars. The FDI inflow of high-tech industries jumped by 31.1 percent from a year earlier.

Fukaishi Akihiro, president of Epson (China) Co., Ltd., said that under the pandemic, the company still sees steady business growth and development in China.

China's economic potential has also grown. In the Global Innovation Index 2022 released by the World Intellectual Property Organization, China has risen to the 11th rank among the 132 economies surveyed. It marks the country's 10th consecutive ascent.

"All fundamentals are in place" in China for continued economic growth over the next 20 years, BHP Group CEO Mike Henry said in late November, adding that "obviously, China is going to provide a bit of stability to global growth over the next year."

As has been witnessed, China's development has shown a strong positive spillover effect worldwide. A total of 73.52 billion dollars worth of tentative deals were reached for one-year purchases of goods and services at the fifth edition of the China International Import Expo, up 3.9 percent year-on-year. The China-proposed Global Development Initiative has won the support of more than 100 countries and international organizations, and China has signed Belt and Road cooperation documents with 150 countries and 32 international organizations. It has been proven that with concrete actions to open its door wider to the rest of the world, China is making the pie of global common development even bigger.

China is carrying out win-win cooperation and establishing mutually beneficial economic and trade relations with countries around the world, which is of great significance to the world economy, said Argentine economist Jorge Marchini.

There are so many countries willing to work with China because it has helped them tremendously in development, said Helga Zepp-LaRouche, founder and chairwoman of German think tank the Schiller Institute. "That's the secret of the Belt and Road Initiative and why many countries want to cooperate with China." ]]> http://en.xfafinance.com/html/In_depth/2022/863715.shtml Xinhua Finance Agency In-depth Mon, 19 Dec 2022 14:30:54 +0800 http://en.xfafinance.com/html/In_depth/2022/863715.shtml
BEIJING, Dec. 19 (Xinhua) -- While the world's growth will likely weaken significantly in 2023, the Chinese economy is expected to see an independent upward trajectory with an overall recovery, a senior official said.

The official of the office of the Central Committee for Financial and Economic Affairs made the remarks after last week's tone-setting Central Economic Work Conference.

The bright prospect can be attributed to the optimized epidemic response, effective pro-growth policies, and a low base this year.

China's improved COVID-19 response will exert a major positive influence on the economy, the official said, predicting a faster recovery in the first half of 2023, especially the second quarter.

The country will retain its existing policies of increasing demand and promoting structural improvement next year and introduce new measures in line with actual needs as well, the official said.

Given lower-than-expected growth this year, as long as the economy returns to normal growth, the base effect will provide support for the economic data next year, the official said.

Although the Chinese economy faces multiple challenges at home and abroad, its sound fundamentals remain unchanged, with strong resilience, enormous potential, and great vitality.

To promote the economic recovery next year, the official cited policy support in fiscal, monetary, industrial, scientific, technological, and social fields.

China will step up the proactive fiscal policy with better effectiveness and make the prudent monetary policy targeted and effective, with stronger support for micro and small businesses, technology innovation, and green development.

The stronger coordination of various policies will form a combined force to push forward high-quality development, the official said. ]]> http://en.xfafinance.com/html/In_depth/2022/861343.shtml Xinhua Finance Agency In-depth Wed, 07 Dec 2022 04:06:24 +0800 http://en.xfafinance.com/html/In_depth/2022/861343.shtml
ROME, Dec. 6 (Xinhua) -- Record rates of inflation that have hit European Union (EU) member states this year are a symptom of a wider economic paradigm shift, an Italian economist has said.

Inflation in the 19-nation eurozone was 10 percent in November, following a record-high of 10.6 percent the month before, and the highest year-on-year price increases since the creation of the euro currency have all taken place in the last nine months.

Carlo Altomonte, professor of political economics at Bocconi University in Milan, told Xinhua the record price increases are part of a broad economic shift for European countries. This shift is even more extreme than that of the 2008-2009 financial crisis, he said.

High energy prices sparked by the conflict between Russia and Ukraine have been the main driver behind extreme price increases, forcing the European Central Bank (ECB) to raise interest rates in order to curb inflationary pressure. This makes it more expensive for companies and individuals to borrow money, resulting in slower economic growth and higher unemployment.

Philip Lane, ECB's chief economist, said this week that while European inflation is probably near its peak, the ECB does "expect that more rate increase will be necessary."

According to media reports, the ECB is likely to increase interest rates by 50 basis points at its Dec. 15 meeting, adding to previous increases of 200 basis points since July.

Lane said the ECB could not rule out inflation remaining high into next year, and that the return to "normal" levels will be slow. "The journey of inflation from the current very high levels back to 2 percent will take time."

Altomonte noted that the price increases would likely result in an economic recession, meaning back-to-back quarters of negative economic growth.

"In Europe, we are used to cheap energy that has helped fuel export-driven economic growth," said Altomonte. "Regardless of how the Ukraine crisis plays out, we will no longer have access to that cheap energy and economies will have to adapt."

While exports account for 10 to 12 percent of the gross domestic product in the United States, the figure in Europe is far higher, he said.

"With high energy prices, that level of economic dependence on exports cannot be sustained.

"Inflation per se will not be the driver of the crisis, but rather a symptom of a much deeper economic shift," he said. ]]> http://en.xfafinance.com/html/In_depth/2022/859908.shtml Xinhua Finance Agency In-depth Wed, 30 Nov 2022 09:47:52 +0800 http://en.xfafinance.com/html/In_depth/2022/859908.shtml
BEIJING, Nov. 30 (Xinhua) -- A decade after the Chinese Dream of national rejuvenation was first put forward as a concept, China has taken great strides toward this goal, making unremitting efforts to build a great modern socialist country.

The development of the world's second-largest economy not only benefits China itself, but also injects a strong impetus into the global economy and provides enormous opportunities for the rest of the world.

Below are some key figures that show how China's remarkable achievements in the past decade play a positive role in the international economic landscape.

WORLD ECONOMY LOCOMOTIVE

China is moving toward its realization of the Chinese Dream. The country has maintained stable economic expansion over the past decade, making it a leading growth engine for the global economy.

The Chinese economy expanded at an average annual growth rate of 6.6 percent in the 2013-2021 period, a much higher rate than the global average of 2.6 percent and the developing economy average of 3.7 percent.

During this period, China's contribution to global economic growth averaged 38.6 percent, exceeding the combined contribution of the Group of Seven countries.

China's economic resilience was also seen in 2020, when it was the world's only major economy to register positive growth.

In 2021 alone, China's gross domestic product was 17.7 trillion U.S. dollars, accounting for 18.5 percent of the global total and up 7.2 percentage points from 2012.

A MAJOR IMPORTER

From toys and furniture to mechanical equipment and automobiles, China provides a variety of quality goods for the world while being the second-biggest importer among all countries.

China's combined foreign trade in goods hit 262.3 trillion yuan (about 36.4 trillion U.S. dollars) in the 2013-2021 period, rising at an annual growth rate of 5.4 percent. Imports climbed to 117.6 trillion yuan during the period, an annual growth rate of 4.7 percent.

China's imports contributed 13.4 percent of the world's import growth in 2021, vigorously promoting global economic recovery.

China's imports of consumer goods grew to 1.7 trillion yuan in 2021, more than double the 2012 figure, partly due to growing demand for premium products from the country's expanding middle-income group.

A robust increase in imports has not only helped improve Chinese people's livelihoods, but has also boosted growth and employment in export-oriented countries.

INDUSTRIAL CHAIN BUILDING

As the world's manufacturing powerhouse, China boasts the world's biggest and most complete industrial system, making it a key contributor to global industrial chains.

The global economy now faces multiple challenges, and China has offered solid support for both domestic and foreign companies, including support related to raw materials, production capacity, logistics and sales. By keeping its industrial chains resilient, China has helped ease the inflation pressure globally.

The added value of China's manufacturing sector overtook that of the United States for the first time in 2010, and has since ranked first globally. In 2020, Chinese manufacturing's added value accounted for 28.5 percent of the global total, up 6.2 percentage points from 2012.

Solid infrastructure is one of the factors behind China's industrial prowess. China has the world's largest 5G network, high-speed railway system and expressway network.

Efforts have also been made to advance technological innovation to facilitate an industrial upgrade. High-tech manufacturing accounted for 51.5 percent of the value of industrial exports from China's major companies, up 8.7 percentage points from 2012.

MAGNET FOR INVESTMENT

China has become an increasingly important destination for foreign direct investment (FDI), given its industrial strength, sound infrastructure and massive domestic market of 1.4 billion consumers.

FDI in the Chinese mainland, in actual use, climbed from 113.3 billion U.S. dollars in 2012 to 173.5 billion U.S. dollars in 2021, with an average annual growth rate of 4.8 percent.

China has shortened its negative list for foreign investment for five consecutive years, widening market access for foreign businesses in such areas as financial services, high-end manufacturing and electronic information.

In addition to attracting foreign investors, China has also encouraged domestic companies to expand internationally. China's outbound direct investment flows amounted to 1.4 trillion U.S. dollars from 2013 to 2021, an annual growth rate of 8.2 percent.

FREE TRADE ADVOCATE

On the way to realizing the Chinese Dream, China has undertaken win-win economic cooperation with the rest of the world by steadily opening its super-large domestic market and championing institutional arrangements that facilitate free trade.

In 2013, the first pilot free trade zone (FTZ) was established in Shanghai, serving as a testing ground for new trade policies and a platform for institutional opening up. To date, China has established 21 pilot FTZs across the country, making it easier for foreign businesses and their products to enter the Chinese market.

China has signed 19 free trade agreements with 26 countries and regions, up from 10 free trade pacts a decade ago. The trade volume between China and its free trade partners accounted for 35 percent of the country's total trade volume in 2021, a significant jump from 17 percent in 2012.

China has actively promoted the implementation of the Regional Comprehensive Economic Partnership, the world's biggest free trade deal, and is also seeking to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement to propel multilateralism and free trade further.

As China aims to increase its middle-income population to more than 800 million in the next 15 years, its growing free trade ties with the rest of the world, along with stronger domestic demand for quality international products, will create new opportunities for foreign businesses.
  ]]> http://en.xfafinance.com/html/In_depth/2022/858720.shtml Xinhua Finance Agency In-depth Thu, 24 Nov 2022 09:37:49 +0800 http://en.xfafinance.com/html/In_depth/2022/858720.shtml
BEIJING, Nov. 24 (Xinhua) -- The quality of companies listed on the A-share market has been improving steadily, mirroring China's high-quality economic development, the country's top securities regulator and industry insiders have said.

The structure of the listed companies has gone through profound improvement in recent years. Companies are larger, more profitable, and have a more balanced financing mix, said Li Ming, an official with the China Securities Regulatory Commission (CSRC), at the Annual Conference of Financial Street Forum 2022.

Li said that more listed companies are from emerging industries, and industry development is more balanced.

The number of listed companies now exceeds 5,000, up nearly a third from the end of 2019. More than half of them are in the strategic emerging industries, the CSRC data showed.

Profits of non-financial listed companies account for 57.3 percent of the total, surpassing those of financial listed companies, according to the data.

Sha Yan, general manager of the Shenzhen Stock Exchange, said there are more than 1,200 companies listed on the tech-heavy ChiNext board now, with a total market value of over 11 trillion yuan (about 1.54 trillion U.S. dollars).

Some 486 companies are now listed on the Shanghai Stock Exchange (SSE)'s sci-tech innovation board, raising more than 730 billion yuan in initial public offerings. Their total market value exceeded 6 trillion yuan, according to Cai Jianchun, the general manager of the SSE.

The sci-tech innovation board boosts the virtuous cycle of science and technology and capital and industry, said Cai.

In the first three quarters of the year, listed companies reported combined operating revenue of 52.37 trillion yuan, up 8.51 percent year on year, data from the China Association for Public Companies showed.

Their net profits reached 4.75 trillion yuan, up 2.46 percent from a year earlier.

To further improve the quality of listed companies, Li said the CSRC mulled another three-year action plan to optimize the structure of listed companies, improve market ecology, and make the regulatory system more mature.

The action plan will focus on further improving rules and regulations for listed companies, enhancing listed companies' governance level, deepening reforms, and improving the adaptability and timeliness of supervision.

Both Shanghai and Shenzhen bourses plan to provide better service to listed companies and improve the market ecology. ]]> http://en.xfafinance.com/html/In_depth/2022/838790.shtml Xinhua Finance Agency In-depth Tue, 23 Aug 2022 03:28:25 +0800 http://en.xfafinance.com/html/In_depth/2022/838790.shtml
NEW YORK, Aug. 22 (Xinhua) -- Tensions between the United States and China are not helping U.S. President Joe Biden's efforts to control inflation, economist Jeffrey Sachs has told CNBC's "Street Signs Asia."

Sachs said the Biden administration should not have continued Trump-era tariffs on China, noting that "Biden's pretty much following the same anti-China line, almost perhaps even intensifying it relative to Trump."

"I think that's bad for the world for a lot of dangers. It doesn't help the inflation side," said the Columbia University professor and president of the UN Sustainable Development Solutions Network.

The professor said he expects inflation to remain high for the foreseeable future.

"We keep stoking the supply side shocks with war, with sanctions, with the geopolitical tensions," Sachs said. ]]> http://en.xfafinance.com/html/In_depth/2022/838602.shtml Xinhua Finance Agency In-depth Mon, 22 Aug 2022 11:00:37 +0800 http://en.xfafinance.com/html/In_depth/2022/838602.shtml
BEIJING, Aug. 22 (Xinhua) -- China is capable of keeping overall prices in a reasonable range despite soaring inflationary pressures worldwide and fluctuations in food prices in the near term, officials and analysts said.

China's consumer price index (CPI), a main gauge of inflation, rose 2.7 percent year on year in July. The producer price index (PPI), which measures costs for goods at the factory gate, went up 4.2 percent year on year.

"In the next stage, upward pressures on consumers exist, but China still has multiple conditions favorable to the overall price stability," said Fu Linghui, an official with the National Bureau of Statistics (NBS).

STABLE GRAIN OUTPUT

The supply for the domestic market is generally abundant, Fu said, citing the bumper harvests for consecutive years and the harvest of early rice this year.

China has managed to ensure sufficient grain output to contain food inflation, which accounts for a big share of the CPI basket. The country saw its summer grain output increase by 1.435 billion kg this year and has harvested over 60 percent of its early rice, laying a foundation for a bumper harvest for the whole year.

Efforts have also been made to ensure the autumn grain output, which accounts for three-quarters of the total annual.

Despite the impacts of extremely hot weather and the flood disasters, the sown area of China's autumn grain has increased this year with a good basis for stable annual grain production, said Fu. He added that the current growth of corn, middle-season rice, soybean, and other major autumn crops is the same as last year.

"Going through rounds of tests of pandemic and extreme weather, China is rich in experience of safeguarding the supply of important livelihood commodities, adding confidence to the overall prices stability," Guo Liyan, a researcher with the Chinese Academy of Macroeconomic Research said.

FIREWALL AGAINST IMPORTED PRESSURE

In the first half of the year, many major economies have witnessed their prices reach the highest level in four decades, causing concerns about imported pressure. However, these impacts on China's consumer prices are "limited," according to Guo.

Echoing the view, Fu noted that the imported inflationary pressures are expected to ease due to the slowing global economic recovery, tightening monetary policies in major economies, and the fall in commodities prices globally.

Facing fluctuations in international energy prices, China has stepped up efforts to ensure capacity and stabilizing prices, erecting a firewall against the imported risks.

China has taken steps, including tailoring measures to ease supply-demand imbalance, ramping up market regulations, and curbing price gouging to stabilize the commodity prices. The production capacities of energy have also improved.

Thanks to these efforts, China currently has ample energy storage and supply despite some regions experiencing relatively tight supply during peak hours due to rapid economic recovery and continuous high temperatures, according to the National Development and Reform Commission.

In July, the raw coal output expanded rapidly, with about 370 million tonnes produced, surging 16.1 percent year on year, data from the NBS showed.

PRUDENT MONETARY POLICY

Aside from the efforts to stabilize the commodity and food prices, there is no monetary basis for price hikes thanks to China's adherence to not resorting to the "flood-like stimulus," Fu Linghui said.

A report released by the People's Bank of China (PBOC) last week said that the country is capable of achieving its whole-year inflation target of around 3 percent, citing stable monetary policy, high food self-sufficiency rate, and other factors.

The central bank also warned of structural inflation pressure, noting that the CPI growth might top 3 percent in a few months.

In the future, the PBOC said it would heed the price changes at home and abroad and adhere to a prudent approach in its monetary policy.

Looking into the second half, although there might be some months with sharp rises in prices, "China has conditions to keep prices generally stable for the whole year," Fu said. ]]> http://en.xfafinance.com/html/In_depth/2022/836340.shtml Xinhua Finance Agency In-depth Fri, 12 Aug 2022 06:59:18 +0800 http://en.xfafinance.com/html/In_depth/2022/836340.shtml
ROME, Aug. 11 (Xinhua) -- The United States' monetary policy adjustments by the Federal Reserve are having huge and largely negative impacts on the 19-nation euro currency zone, especially high-debt countries like Italy, a leading economist has said.

Marcello Messori, director of the School of European Political Economy at Rome's LUISS University, said that in Italy and in the wider euro zone, the short-term gains represented by a relatively weak euro currency, such as making euro-priced Italian exports cheaper and attracting more tourism from outside the eurozone, would not be enough to counterbalance the currency's weakness.

"It is difficult to conceive that the long-term prospects of an important economic area such as the euro area can be based on growth led by exports," Messori said in an interview with Xinhua.

The U.S. Federal Reserve hiked interest rates by 75 basis points in both June and July as part of its broad efforts to increase borrowing costs and slow down inflation. The move in June was the largest single rate hike in the U.S. since 1994, and after the July increase the U.S. benchmark interest rate is at its highest level since December 2018.

The European Central Bank has followed suit, raising its own benchmark interest rate by 50 basis points in July, which was the first rate hike for the euro zone in 11 years.

Both the U.S. Federal Reserve and the European Central Bank said further rate hikes are likely.

One result of the moves is that the dollar has strengthened against the euro, briefly surpassing the value of the euro several times in mid-July and since then trading broadly in step with the euro.

According to Messori, the moves by the U.S. Federal Reserve may have helped force the hand of the European Central Bank.

"The European Central Bank had to strengthen its restrictive monetary policy to avoid lagging behind in terms of interest rate structure because of the restrictive monetary policy of the Federal Reserve," Messori said.

He said another motive behind the European Central Bank's move was to provide support for the euro, without which the currency could have lost even more ground to the dollar.

Messori said the inflation-related challenges the European Central Bank is facing are greater than those in the U.S. because European countries are more dependent on energy imports and international supply chains which are now disrupted by the ongoing Ukraine crisis, which has sparked an increase in energy prices and limited food supplies.

"Handling supply bottlenecks is harder to confront with monetary policy than rising prices created by higher demand," the professor said.

While Italy -- the European Union's second largest exporter after Germany and a major global tourism destination -- will see some short-term gains from a weaker euro, Messori said long-term problems for the country stemming from the European Central Bank's monetary policy could be difficult because of the country's high deficits. A weaker currency makes servicing debts and selling new debts more expensive.

Italy has one of the highest levels of public debts in the world when measured as a percentage of the country's gross domestic product.

"Countries with high public debts don't have a significant fiscal capacity to help handle a possible recessionary phase or to handle a possible stagflation," Messori said.

"In the case of Italy, it seems to me that the possible impact from changes in European Monetary Policy and the impact of changes in U.S. monetary policy is particularly significant." ]]> http://en.xfafinance.com/html/In_depth/2022/828274.shtml Xinhua Finance Agency In-depth Fri, 08 Jul 2022 10:45:07 +0800 http://en.xfafinance.com/html/In_depth/2022/828274.shtml
BEIJING, July 8 (Xinhua) -- Expanding business volume, growing new orders and faster capital turnover, China's logistics market, a closely watched herald of economic operation, is making a comeback into the boom zone after being weighed upon by the COVID-19.

The index tracking the country's logistics market performance stood at 52.1 percent in June, climbing above the boom-bust of 50 percent for the first time after staying in the contraction zone for three months, according to the China Federation of Logistics & Purchasing (CFLP).

The sub-indices for business volume, new orders, capital turnover and employees all posted marked rebounds as the logistics delivery's reach and efficiency keep improving.

Chinese authorities, led by the Ministry of Transport, have in recent months revved up efforts to address blocks in logistics to help the economy recover from the impact of COVID-19 outbreaks.

Echoing the smoother transportation network, another index that tracks the country's warehouse sector showed that the average inventory turnover ended about a half year's downward trend by climbing 8.4 percentage points to reach 53.9 percent in June.

Hu Han, a researcher with China Logistics Information Center, also attributed the pick-up in logistics activities to growing demands from both the industrial and consumption fronts.

Logistics of industrial goods account for about 80 percent of the total value of China's social logistics, which in May reversed the downward trend.

The CFLP's latest data showed that industrial goods logistics registered a 0.7-percent year-on-year growth in May, compared with shrinking 2.9 percent in April.

"It was a turning point marking the shift from fall to rise," said CFLP's deputy director Cai Jin. "It has sent a signal that the economy is restoring growth on its supply side."

Consumption-related logistics also stayed active. The country's e-commerce logistics activities further consolidated its rebound in June with a related CFLP index climbing 2.8 percentage points over May.

During the mid-year shopping festival, major Chinese e-commerce platforms secured year-on-year transaction growths, with sales jumps in cellphones, home appliances and cosmetics.

The recovery of China's logistics sector and the economy at large is expected to sustain. A survey of the logistics firms showed that the optimism for continuous market growth rose 1.2 percentage points over the previous month, reaching a record high in four months.
  ]]> http://en.xfafinance.com/html/In_depth/2022/827414.shtml Xinhua Finance Agency In-depth Tue, 05 Jul 2022 16:07:56 +0800 http://en.xfafinance.com/html/In_depth/2022/827414.shtml
BEIJING, July 5 (Xinhua) -- China's economy is expected to gradually overcome the negative impacts of the epidemic in the second half of this year, with economic indicators showing improvement amid a raft of supportive policies, according to a report by the Bank of China.

Noting that risks including rising global inflation, geopolitical tensions and volatile international financial markets might continue to weigh on the economic outlook, the report said domestic demand will play a key role in stabilizing the country's growth during the second half of the year.

It added that China's economic fundamentals and potential for long-term growth remain unchanged.

Despite the challenges, the country's employment has remained stable and the price rise has been kept within a moderate range, leaving more room for authorities to maneuver macro policies, according to the report.

Going ahead, the report has suggested leveraging fiscal and monetary policies further to help enterprises tide over difficulties, and expand effective investment and stabilize growth.

More efforts should be made to spur consumption, promote the steady development of the real estate sector, and foster long-term competitiveness through technological upgrading and innovation, the report said. ]]> http://en.xfafinance.com/html/In_depth/2022/827018.shtml Xinhua Finance Agency In-depth Mon, 04 Jul 2022 00:29:40 +0800 http://en.xfafinance.com/html/In_depth/2022/827018.shtml
BEIJING, July 3 (Xinhua) -- China's digital economy logged rapid expansion in recent years, with its scale increasing from 11 trillion yuan (1.65 trillion U.S. dollars) in 2012 to over 45 trillion yuan in 2021, official data showed.

The proportion of the digital economy in China's GDP rose from 21.6 percent to 39.8 percent in the period, according to the Ministry of Industry and Information Technology.

China has sped up digital infrastructure construction. By the end of May, the country had built the world's largest and technologically advanced network facilities, covering prefecture-level cities with fiber-optic networks and having 1.7 million 5G base stations.

The country has also accelerated the integration of big data, cloud computing and artificial intelligence with such sectors as energy, medical care, transportation, education and agriculture.

In 2021, the value-added output of major electronic information manufacturers rose 15.7 percent year on year, hitting a record high in a decade, while the revenues of software and information technology services as well as internet and related services also registered double-digit growth, said the ministry. ]]> http://en.xfafinance.com/html/In_depth/2022/815120.shtml Xinhua Finance Agency In-depth Tue, 17 May 2022 11:19:16 +0800 http://en.xfafinance.com/html/In_depth/2022/815120.shtml
BEIJING, May 17 (Xinhua) -- China has made milestone achievements in economic and social development in the past decade, with its status as the world's second-largest economy cemented and improved, a senior official has said.

China has achieved the first centenary goal of building a moderately prosperous society in all respects, and began a new journey toward the goal of building a modern socialist country in all respects. Here are some highlights of the country's innovative, coordinated, green, open, and shared development in the past ten years.

LEAPFROG IN ECONOMY

China accounted for over 18 percent of the global economy in 2021, rising from 11.4 percent in 2012, said Han Wenxiu with the Central Committee for Financial and Economic Affairs.

The country's gross domestic products (GDP) topped 114 trillion yuan (about 16.79 trillion U.S. dollars) in 2021, and per capita GDP reached 12,500 U.S. dollars, close to the threshold for high-income economies.

The contribution of China's economy to the world economic growth has stood at around 30 percent in recent years, making it the largest growth engine for the global economy, Han added.

MORE INNOVATIVE SOCIETY

China's spending on research and development (R&D) hit 2.44 percent of its GDP in 2021, up from around 1.9 percent in 2012, said Han.

Last year, China's spending on R&D was 2.7 times its 2012 level, and its basic research expenditure was 3.4 times its 2012 level, according to Li Meng, vice minister of science and technology.

China rose to 12th on the Global Innovation Index 2021, up from the 34th in 2012, making it the only country globally to achieve a sustained and rapid rise, Li said.

MORE COORDINATED DEVELOPMENT

Official data showed a more coordinated development pattern between China's urban and rural areas.

China's urbanization rate of permanent residence hit 64.7 percent in 2021, up from 53.1 percent in 2012, and the urban-rural income ratio narrowed by 0.38 to 2.5 in 2021 in the past decade.

China's Gini coefficient, an index reflecting inequality where zero equals perfect equality, declined to 0.466 in 2021 from 0.474 in 2012.

BETTER ECOLOGICAL ENVIRONMENT

China's ecological environment has witnessed a historic turning point, Han said.

China's afforested land has accounted for about a quarter of the world's total, and its CO2 emissions per unit of GDP have dropped about 34 percent.

The country has also topped the globe in installed capacity of wind and photovoltaic power and other green energy and the production and sales of new-energy vehicles, Han said.

As a faithful advocate of the Paris Agreement, China announced targets of peaking CO2 emissions before 2030 and achieving carbon neutrality before 2060, noted Han.

WIDER OPENING-UP

China has created a series of new highlands and set up pilot zones for opening up, said Han, citing that the country has established 21 pilot free trade zones and the Hainan free trade port in the past decade.

China has strengthened its position as the world's top trading nation in goods as products exported from China account for 15 percent of the global total, said Han.

China has also introduced the negative list system and signed nine new free trade agreements in the past decade, bringing the total number of such agreements to 19.

SHARED DEVELOPMENT

China has eliminated absolute poverty after lifting nearly 100 million rural poor out of poverty, making significant contributions to world poverty reduction, Han said.

The country also established the world's largest education, social security, and medical and health care systems, with the average life expectancy of Chinese people increasing by 2.5 years to 77.9 in 2021.

The proportion of the middle-income group in China has expanded to one-third of the total population in the past decade, Han said. ]]> http://en.xfafinance.com/html/In_depth/2022/794644.shtml Xinhua Finance Agency In-depth Fri, 25 Feb 2022 09:40:58 +0800 http://en.xfafinance.com/html/In_depth/2022/794644.shtml
BEIJING, Feb. 25 (Xinhua) -- China's top economic planner is moving to improve the price formation mechanism in the coal market to guide price movements within a reasonable range as the country seeks to ensure stable energy supplies.

In a circular released Thursday, the National Development and Reform Commission (NDRC) put the relatively reasonable range for the medium and long-term trading of 5,500 Kcal thermal coal at Qinhuangdao Port at 570 yuan (about 90 U.S. dollars) to 770 yuan per tonne.

In full considerations of logistics and production costs, the NDRC accordingly proposed the ex-mine prices for medium and long-term trading in major coal production areas including Shanxi, Shaanxi and Inner Mongolia.

"Proposing a reasonable range is not to adopt government pricing for coal, but to establish a range regulation mechanism on the basis of market-formed prices," NDRC official Wan Jinsong explained, saying the move could enable better combination of the roles of the market and the government to avoid drastic ups and downs in the market.

The new policy comes after surging coal prices last year prompted China's coal-fired power stations to reduce their output to avoid losses because of official caps on electricity prices, resulting in power outages that halted factory production.

Thermal power still takes up a large share of China's energy output, accounting for about 70 percent of the country's power generation.

Although authorities have since managed to cool down the coal price rally through a slew of measures, calls are growing for an improved mechanism to rein in drastic fluctuations.

To ease the risk of a further power crunch, in October last year, the NDRC improved the pricing mechanism for coal-fired power, adjusting the floating range of the market-based electricity transaction prices to 20 percent in either direction, compared with the previous ceiling of 10 percent and the floor of 15 percent from the benchmark price.

The market transaction prices of coal-fired electricity for enterprises with high energy consumption are not restricted by the ceiling of 20 percent upward fluctuation.

The latest move to range-guide coal prices should help enable the smooth transmission between coal and electricity prices, while tackling the persistent conflicts in the two markets, according to NDRC official Peng Shaozong.

Thursday's circular pledged to enhance the country's capacity to balance supply and demand, strengthen market supervision to prevent improper interventions and timely investigate illegal market practices.

The new mechanism sends a clear signal on the government's regulation of coal prices, which will guide market expectations for upstream and downstream industries and deter speculation, noted Peng.

He predicted coal prices would see a reasonable retreat from the current level.

Coal output and market supplies are now remaining largely stable, with daily production stabilizing at over 12 million tonnes and stockpiles at power generators at an elevated level.

As China's coal self-sufficiency rate exceeds 90 percent and the relationship between upstream and downstream sectors remains stable, China has the conditions to guide coal prices to operate within a reasonable range, said Wan from the NDRC. ]]> http://en.xfafinance.com/html/In_depth/2021/774455.shtml Xinhua Finance Agency In-depth Tue, 07 Dec 2021 08:51:11 +0800 http://en.xfafinance.com/html/In_depth/2021/774455.shtml
GENEVA, Dec. 7 (Xinhua) -- China's accession to the World Trade Organization (WTO) has accelerated the country's economic globalization process and promoted its rapid growth, said Sun Zhenyu, China's first ambassador to the WTO.

China officially joined the WTO on Dec. 11, 2001, becoming the 143rd member of the trade body. As China's first ambassador to the WTO, Sun began his nine-year diplomatic mission in Geneva in January 2002.

Since China became a WTO member, its trade has continued to grow rapidly. Chinese enterprises have withstood international competition and unleashed enormous potential, Sun told Xinhua in a written interview lately.

There were less than 20 Chinese companies on the Fortune Global 500 list two decades ago, but the number reached 133 in 2020, surpassing the United States for the first time.

China has fully delivered on its accession commitments to the WTO, revised its laws and regulations in line with its WTO commitments, and created an economic and trade system that meets WTO rules as planned, Sun said.

The average tariff has been reduced from 15.3 percent in 2001 to 9.8 percent in 2010. By 2020, the average tariff level has further dropped to 7.4 percent. Former WTO Director-General Pascal Lamy gave China an A+ rating for meeting WTO commitments, he added.

During his mission in Geneva, Sun witnessed China's influence in the WTO increasing. He said that China participated in all major WTO negotiations after the fifth WTO Ministerial Conference in Cancun, Mexico, in 2003.

Sun recalled that China's accession to the WTO came at the time when the Doha Round of WTO talks began, during which China cooperated with dozens of developing countries on agriculture, intellectual property rights and public health negotiations.

China has also made positive contributions to the WTO Trade Facilitation Agreement and the Information Technology Agreement expansion negotiations, he said.

Noting that unilateralism and anti-globalization have had a great impact on the multilateral trading system in recent years, Sun said the reform of the WTO under the new situation has no time to wait in the face of the global economic downturn triggered by the COVID-19 pandemic.

Regarding the restoration of WTO functions, Sun believes that the reinstatement of the Appellate Body should be high on the agenda, adding that the resumption of WTO trade negotiations should not be neglected.

He also suggested that in response to the pandemic, the WTO could learn from the successful experience of the negotiations over intellectual property protection and public health in 2003, and seek concrete results in waiving intellectual property rights on COVID-19 vaccines. ]]> http://en.xfafinance.com/html/In_depth/2021/770917.shtml Xinhua Finance Agency In-depth Wed, 24 Nov 2021 08:14:32 +0800 http://en.xfafinance.com/html/In_depth/2021/770917.shtml
BEIJING, Nov. 24 (Xinhua) -- The year 2021 saw almost all economies at the crossroads amid headwinds from COVID-19 to energy shortages and inflation. Yet China -- the only major economy to grow last year -- again demonstrated the power of resilience.

Despite multiple challenges, China's economy has seen a largely steady recovery this year and is set to achieve major annual targets, Chinese Premier Li Keqiang said while presiding over a recent symposium on the economy.

Recent economic data backs the premier's remarks. From foreign trade and industrial strength to vibrant consumption and inbound investment, the Chinese economy provides abundant evidence of its tenacity.

China's imports and exports of goods expanded to 31.67 trillion yuan (about 4.95 trillion U.S. dollars) in the first 10 months of 2021, 130 billion yuan higher than the pre-pandemic goods trade level for the whole year of 2019, official data showed.

"Global exports are mainly supported by prices. However, volumes have made a greater contribution to China's exports than prices in 2021, suggesting China's exports are indeed resilient," said a report by China International Capital Corporation Limited (CICC).

Bai Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, attributed the stable foreign trade to strong external demand as China's complete industrial system continued to play a key role in stabilizing the global industrial chain.

Industrial activities are holding up well against rising producer prices, sporadic resurgence of the epidemic and energy strain, as the government's epidemic control proved effective and efforts at ensuring stable prices and energy supply paid off.

In October, China's industrial production beat market expectations by reporting a 3.5 percent year-on-year rise, up 0.4 percentage points from September.

China's vibrant consumption and its lure for foreign investors also stood out, as the country's October retail sales rose above forecasts and foreign direct investment in 2021 is expected to post double-digit growth.

While worries run high over spillover effects of major developed economies' monetary policy adjustment on emerging markets, China's central bank said the adjustment will have "limited" impact on the country.

This resilience could be attributed to China's huge economic size, normal monetary policies, progress in market-oriented reform of the exchange rates of the Chinese currency as well as increasing attractiveness of Renminbi assets, the People's Bank of China said in its latest quarterly report on monetary policy implementation.

LONG-RUN GAINS

A key to sustaining China's economic vitality is the government's determined focus on reforms needed for long-term development, while sound economic fundamentals in return give China leeway to pursue more sustainable growth.

After accomplishing its "first centenary goal" of building a moderately prosperous society in all respects, China's leadership has put common prosperity in a more prominent position, aiming at affluence shared by everyone, both in material and cultural terms.

On carbon reduction, China in October unveiled an overarching guideline to achieve its carbon peak and carbon neutrality goals as well as an action plan to peak carbon dioxide emissions before 2030.

Also this year, China imposed intensive regulations on certain fields including tech, property and high-emission sectors to rein in disorderly expansion of capital and foster more sustainable and inclusive growth in the long run.

The CICC report noted that real estate regulation is conducive to the healthy development of the economy in the medium and long term, just as the carbon peak and carbon neutrality initiatives will improve the quality of China's economic growth.

Benefits of these far-reaching measures can already be felt. Morgan Stanley in a recent report forecast higher infrastructure investment growth next year driven by green investment. Manufacturing investment demand could also arise from equipment upgrades to improve energy efficiency, according to the report.

That said, authorities are cool-headed and prepared to brace for uncertainties, with more policies in the pipeline to shore up the resilience of the economy.

There are multiple challenges ahead for the Chinese economy to sustain stable growth from a high base, as new downward pressures emerged and domestic and external economic environment continued to be complex, the premier said during the symposium.

Efforts should be made to roll out new preferential tax policies, guarantee stable power supply, support new business models such as cross-border e-commerce, among others, to keep Chinese economy running within an appropriate range and ensure stable employment, according to Li. ]]>