28/04/2020
BEIJING (Reuters) – China’s factory activity likely rose for a second straight month in April as more businesses re-opened from strict lockdowns implemented to contain the coronavirus outbreak, which has now paralysed the global economy.
The official manufacturing Purchasing Manager’s Index (PMI), due for release on Thursday, is forecast to fall to 51 in April, from 52 in March, according to the median forecast of 32 economists polled by Reuters. A reading above the 50-point mark indicates an expansion in activity.
While the forecast PMI would show a slight moderation in China’s factory activity growth, it would be a stark contrast to recent PMIs in other economies, which plummeted to previously unimaginable lows.
That global slump, caused by heavy government-ordered lockdowns, as well as the cautious resumption of business in China, suggests any recovery in the world’s second-largest economy is likely to be some way off.
“The recovery so far has been led by a bounce-back in production, however, the growth bottleneck has decisively shifted to the demand side, as global growth has weakened and consumption recovery has lagged amid continued social distancing,” Morgan Stanley said in a note.
“The expected slump in external demand has likely capped further recovery in industrial production.”
The latest official data showed 84% of mid-sized and small business had reopened as of April 15, compared with 71.7% on March 24.
Hobbled by the coronavirus, China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction since current quarterly records began.
That has left Chinese manufacturers with reduced export orders and a logistics logjam, as many exporters grapple with rising inventory, high costs and falling profits. Some have let workers go as part of the cost-cutting efforts.
A China-based brokerage Zhongtai Securities estimated that the country’s real unemployment rate, measured using international standards, could exceed 20%, equal to more than 70 million job losses and much higher than March’s official reading of 5.9%.
Sheng Laiyun, deputy head at the statistics bureau, said on Sunday migrant workers and college graduates are facing increasing pressures to secure jobs, while official jobless surveys show nearly 20% of employed workers not working in March.
Chinese authorities have rolled out more support to revive the economy. The People’s Bank of China earlier in April cut the amount of cash banks must hold as reserves and reduced the interest rate on lenders’ excess reserves.
Source: Reuters
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20/04/2020
BEIJING, April 19 (Xinhua) — China will step up efforts to expedite technological research on the construction and application of digital infrastructure, according to the Ministry of Industry and Information Technology (MIIT).
More support should be provided to the research and development of 5G enhancement technology and 6G technology, while the accurate matching of innovation, industrial, capital and policy chains should be promoted, said Chen Zhaoxiong, vice minister of the MIIT.
Chen also stressed the importance of emphasizing the huge demand for digital transformation and improving new digital infrastructure to facilitate economic and social upgrade of the country.
The MIIT will take a string of measures to optimize industrial development, such as expediting construction of 5G and industrial internet connecting people, machine and things, developing new types of intelligent computing facilities, advancing orderly construction and application of large data centers while upgrading micro and small data centers, enriching application scenarios and building a network security system.
Source: Xinhua
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10/04/2020
BEIJING, April 9 (Xinhua) — Chinese Vice Premier Hu Chunhua held a phone conversation on Thursday with British Chancellor of the Exchequer Rishi Sunak on advancing bilateral cooperation on epidemic prevention and economic development.
Hu, who leads the Chinese delegation to the China-UK Economic and Financial Dialogue (EFD), noted that Chinese President Xi Jinping and British Prime Minister Boris Johnson recently held two phone conversations and reached important consensus on jointly dealing with the pandemic and developing China-UK relations.
The Chinese side stands ready to work with the British side to implement the consensus reached by the two leaders, deepen practical cooperation in such fields as epidemic prevention and finance, and provide Britain with support and assistance within its capabilities in medical supplies and other fields, Hu said.
The vice premier expressed hope that the two sides will further strengthen cooperation under the framework of the United Nations and the Group of 20, promote macroeconomic policy coordination, cut tariff, remove barriers, and facilitate the flow of trade, so as to maintain the stability of the global industrial supply chain and promote sustainable growth of the world economy.
For his part, Sunak thanked China for its support and assistance, adding that Britain stands ready to strengthen bilateral cooperation in epidemic prevention, economy and finance through channels like the China-UK EFD, so as to continuously advance bilateral relations.
Source: Xinhua
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