Archive for ‘overcome’

13/05/2020

Xinhua Headlines-Xi Focus: Xi stresses achieving moderately prosperous society in all respects

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about poverty alleviation efforts at an organic daylily farm in Yunzhou District of Datong City, north China’s Shanxi Province, May 11, 2020. (Xinhua/Li Xueren)

— Xi stressed addressing the difficulties faced by enterprises in resuming production and operation.

— Xi underscored lifting the remaining poor population out of poverty.

— Xi required implementing pro-employment policies.

TAIYUAN, May 12 (Xinhua) — Chinese President Xi Jinping has stressed efforts to complete building a moderately prosperous society in all respects, and ride on the momentum to write a new chapter in socialism with Chinese characteristics for a new era.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks during an inspection tour in north China’s Shanxi Province.

Xi called for efforts to overcome the adverse impacts of the COVID-19 epidemic and make greater strides in high-quality transformation and development to ensure that the target of poverty eradication is reached and the building of a moderately prosperous society in all respects is completed.

During the tour from Monday to Tuesday, Xi inspected work on coordinating the regular epidemic response with economic and social development, and on consolidating the poverty eradication results.

While visiting an organic daylily farm in Yunzhou, Datong City, on Monday, Xi said what he cares about the most after poverty eradication is how to consolidate the achievements, prevent people from falling back into poverty, and make sure rural people’s incomes rise steadily.

He said an important benchmark to evaluate an official’s job performance is to see the amount of good and concrete services he or she has delivered to the people.

When visiting a community of relocated villagers, Xi said relocation is not only about better living conditions but also about chances to get rich. He called for follow-up support to residents with tailor-made rural business projects to ensure sustainable development.

Highlighting that whether the people can benefit shall be a top concern, Xi demanded more supporting policies be put in place in terms of industrial development, financing, agricultural insurance, among others.

Xi applauded the strenuous efforts made by primary-level officials on helping people fight poverty.

At the home of villager Bai Gaoshan, Xi chatted with Bai’s family as they sat on a “kang” — a bed-stove made out of clay or bricks in north China.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about poverty alleviation efforts in a village of Xiping Township in Datong City, north China’s Shanxi Province, May 11, 2020. (Xinhua/Xie Huanchi)

Xi said the CPC wholeheartedly seeks happiness for the Chinese people, having stopped collecting agricultural taxes and fees, helping the impoverished rural residents with housing and medical service, training them with skills, and finding ways for them to live a prosperous life.

“I believe our villagers will enjoy better days ahead,” Xi said.

On top of that, he called for consolidating achievements in poverty alleviation, and then focusing on rural vitalization to ensure a better life for rural residents.

He then went on to visit the 1,500-year Yungang Grottoes, a “treasure house” of artifacts featuring elements blending Chinese and foreign cultures, as well as cultures of China’s ethnic minorities and the Central Plains.

Xi stressed that historical and cultural heritages are irreplaceable precious resources, and protecting them should always be put in the first place in tourism development.

Noting that tourism should not be over-commercialized, Xi said tourism should become a way for the Chinese to understand and appreciate the culture of the nation and enhance their cultural confidence.

The historical implications of communication and integration behind the Yungang Grottoes should be further explored to enhance the sense of community for the Chinese nation, said Xi.

During a research tour in a stainless steel manufacturer in the provincial capital Taiyuan on Tuesday morning, Xi said products and technology are the lifeline of businesses, calling for more efforts in technological innovation to make a greater contribution to the development of advanced manufacturing.

He also called on businesses to strictly implement epidemic prevention and control measures to ensure the safety and health of their workers, while promoting the resumption of work and production to make up for the time lost.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, waves to workers during a research tour in a stainless steel manufacturer in Taiyuan, capital city of north China’s Shanxi Province, May 12, 2020. (Xinhua/Li Xueren)

Later on, Xi went to check the ecological protection work of the Fenhe River in the city, and urged the incorporation of environment protection, energy revolution, green development, and economic transformation.

After hearing the work reports of the CPC Shanxi Provincial Committee and the provincial government on Tuesday afternoon, Xi stressed that no relaxation is allowed in epidemic prevention and control, noting that efforts should be made to guard against both imported infections and domestic rebounds, improve regular prevention and control mechanism, and prevent new outbreaks.

Xi called for efforts on more promptly and effectively addressing the difficulties faced by enterprises in resuming production and operation, on solid implementation of all the policies and measures for expanding domestic demand, and on strengthening the competitiveness and quality of the real economy, especially the manufacturing industry.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, speaks with workers during a research tour in a stainless steel manufacturer in Taiyuan, capital city of north China’s Shanxi Province, May 12, 2020. (Xinhua/Xie Huanchi)

Continuous efforts should be made to promote the adjustment and optimization of China’s industrial structure, and scientific and technological innovations should be greatly enhanced to continue achieving breakthroughs in new infrastructures, technologies, materials, equipment as well as new products and business models, Xi said.

He stressed overcoming the difficulties and obstacles facing reforms in key areas, including state-owned enterprises and assets, the fiscal, tax, and financial system, business environment, the private sector, domestic demand expansion, and urban-rural integration.

Xi also highlighted efforts to improve the country’s system and mechanism for opening-up.

China will uphold the concept that lucid waters and lush mountains are invaluable assets, and steadily implement the national strategy for ecological protection and high-quality development of the Yellow River basin, he said.

More should be done to accelerate institutional innovation and strengthen the implementation of institutions to help form a green way of production and living, he said.

Efforts should be made to solidify the foundation for the development of agriculture and rural areas, beef up policy support for grain production and lift the remaining poor population out of poverty, Xi said.

Authorities should adhere to the people-centered development philosophy and ensure the bottom line of people’s livelihood, Xi said. He added that efforts should be made to implement pro-employment policies and facilitate the employment of key groups such as college graduates, veterans, rural migrant workers and urban people facing difficulties.

Efforts should be expedited to improve the weak areas in the public health system exposed by the epidemic and shift the focus of social governance to the primary levels, Xi said.

The rich and colorful local history and culture as well as revolutionary cultural resources should be fully drawn on and used to promote cultural advancement, Xi said.

He stressed consistent efforts to promote core socialist values to guide Party cadres as well as the public to enhance morality, cultivate good ethics and strengthen cultural confidence.

Xi also called for efforts to improve the Party’s political ecosystem, strictly observe the Party’s political discipline and rules and fight against corruption and undesirable conduct.

Source: Xinhua

25/04/2020

Coronavirus: China’s belt and road plan may take a year to recover from slower trade, falling investment

  • But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
  • China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature

Belt and Road Initiative

and a dip in trade with partner countries that could take a year to overcome, analysts say.

But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.

Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.

His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.

“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.

“The second quarter will really depend on how the epidemic is contained in belt and road countries.”

Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.

“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.

“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.

“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”

Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.

China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.

Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.

Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.

“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.

“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”

Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Source: SCMP
12/03/2020

Coronavirus: China should not rely on massive stimulus to overcome ‘unprecedented’ economic slowdown

  • In response to the 2008 global financial crisis, China pumped a 4 trillion yuan (US$575 billion) into its economy but it led to a mountain of local government debt
  • Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some suggestions it will suffer a first contraction since 1976
President Xi Jinping said China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction” in response to the economic impact caused by the coronavirus outbreak. Photo: Xinhua
President Xi Jinping said China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction” in response to the economic impact caused by the coronavirus outbreak. Photo: Xinhua

China should not try to bolster its coronavirus-hit economy by again resorting to a massive debt-fuelled fiscal and monetary stimulus programme, according to a group of government advisers.

Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some even suggesting it will suffer a first contraction since the end of the Cultural Revolution in 1976.

This raises the question if China will miss its key 2020 growth target, with voices on both sides of the debate discussing what stimulus policies are needed to offset the deep impact of the coronavirus.

China is already leaning towards some additional stimulus, with Premier Li Keqiang ordering the central bank pump additional money into the banking system, while President Xi Jinping has announced the need for more spending on “new infrastructure”.

Are there other ways out for China except stimulus policies?Liu Shijin

“Are there other ways out for China except stimulus policies?” rhetorically asked Liu Shijin, who previously worked closely with Vice-Premier Liu He, the top economic aide to Xi, at the Development Research Centre, the think tank attached to the State Council.

“If it really works, why can’t Japan and the United States reach a 5 per cent growth rate?”
It is believed China will need to achieve an average 5.6 per cent growth in 2020 to achieve its goal of doubling the size of its economy from 2010, which is a key goal for

Xi to achieve his target

of creating a “comprehensively well-off” society.

China’s economy grew by 6.1 per cent in 2019, and while it was the slowest in 29 years, the US economy only grew 2.3 per cent, with Japan’s estimated to grow by 0.9 per cent.
What is gross domestic product (GDP)?
Liu Shijin, who is now a deputy head of the China Development Research Foundation and a policy adviser to the People’s Bank of China, argued that a growth rate averaging 5 per cent over the next decade is sufficient for China to meet its development goals.

Growth in 2020, though, may well be below 5 per cent given that the impact of the coronavirus is “unprecedented” and larger than both severe acute respiratory syndrome (Sars) in 2003 and the 2008 global financial crisis.

Xi said earlier this month that China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction already included in state plans” like additional high-speed railway lines in response to the economic impact caused by the coronavirus outbreak.
But as this will mainly rely on corporate and private investment, Liu Shijin feels it will be too small to engineer a major rebound in the growth rate.
When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right timeLiu Shijin
“It’s a different thing compared to real [government-led] economic stabilisation,” Liu Shijin told a web seminar hosted by Peking University’s National School of Development on Wednesday.

“When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right time.”

Instead, to support longer-term growth, China should put its efforts into the development of its “city clusters”, which could lead to higher spending on housing construction, urban infrastructure and manufacturing, added Liu Shijin, which would increase the growth rate by up to an additional percentage point over the next decade.

China has so far refrained from the massive stimulus programme it adopted in 2008 in response to the global financial crisis, which included a 4 trillion yuan (US$575 billion) plan that pumped cheap money into government-backed projects but also created a mountain of local government debt.

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Zhang Bin, a senior researcher at the Chinese Academy of Social Sciences, said infrastructure construction will remain an important part of any plan to support growth.

“If the funding [for the 4 trillion yuan stimulus] had come solely from treasury bonds or local government bonds [rather than risky lending], there wouldn’t be so much shadow banking, unmanageable credit expansion, high leverage, implicit liabilities or financial risks,” he said.

“If the balance sheets of corporations, households and local governments can’t be repaired, it might lead to insufficient demand and a decline into a vicious [downward] cycle.”

Zhang, like Liu Shijin, is a key member of the China Finance 40 Forum, a group of state economists who advocate more structural reforms to support the Chinese economy. In particular, Zhang has set sights on reforms that would boost consumption, which accounted for 58 per cent of Chinese growth last year.

“The biggest weak link of the Chinese economy is that 200 to 300 million migrant workers can’t [legally] settle in big cities,” he said. “Only if they are able to settle in the city that China can be called a real well-off society. It will also boost the economy, lift demand for manufactured goods and unleashed consumption potential.”
Currently, most large Chinese cities only provide social services including health care and schooling to residents who have a legal permit, or hukou. Most migrant workers who come to the big cities for jobs are blocked from obtaining a hukou, meaning they have to travel back to their rural hometowns to have access to basic social services, so often do not settle in their adopted city.
In response to this idea, Xu Yuan, a professor at Peking University, called for the government to build 10 million affordable housing units annually to accommodate new urban citizens, which would address short-term economic pain and serve the nation’s long-term development.
China will release its annual growth target as well as other key goals, including the fiscal deficit ratio and local bond quota, at the National People’s Congress, although the annual parliamentary convention, previously scheduled for March 5, has been postponed, with a new date yet to be announced.
Source: SCMP
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