Month: June 2020

(Xinhua)07:55, August 06, 2019

Gold futures on the COMEX division of the New York Mercantile Exchange rose more than one percent on Monday, as the Dow had lost more that 900 points amid rising concerns over trade tensions between the United States and China.

The most active gold contract for December went up 19 dollars, or 1.3 percent, to settle at 1,476.5 dollars per ounce.

The U.S. stock benchmark indexes slipped more than 3 percent on Monday as investors dumped risky stocks for safe haven assets, such as gold.

The Dow Jones Industrial Average used to plunge more than 900 points on Monday. The SP 500 and Nasdaq Composite Index followed Dows plunge.

When equities post sharp losses, the precious metal usually gains significantly, as investors have to look for a safe haven.

A weakening U.S. dollar also supported gold futures.

The U.S. dollar index, a measure of the greenback against a basket of other major currencies, retreated 0.6 percent to 97.48 shortly before the golds settlement.

Gold and the dollar typically move in opposite directions. When the dollar goes down, gold futures will rise as gold, priced in the dollar, becomes less expensive for investors holding other currencies.

U.S. President Donald Trump tweeted last week to threaten imposing an additional 10 percent tariff on the remaining 300 billion U.S. dollars worth of Chinese imports starting on Sept. 1.

The unexpected move triggered fear among market participants, who have become increasingly concerned over escalation of U.S.-China trade tensions.

As a result, December gold rose 1.75 percent last Friday. Monday was the second consecutive session with more than one percent increase in gold futures.

As for other precious metals, September silver went up 12.3 cents, or 0.76 to close at 16.393 dollars per ounce. The October platinum rose 4.90 dollars, or 0.57 percent, to settle at 857.90 dollars per ounce.

(Xinhua)07:58, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Chinas central bank reiterated on Monday that it is confident in its capability of keeping the yuans exchange rate basically stable, after both the onshore and offshore yuan fell beyond seven against the U.S. dollar.

The Peoples Bank of China (PBOC) attributed the weakening of the currency beyond 7 yuan per U.S. dollar on Monday to factors including unilateral and protectionist measures, as well as the expectation of additional tariffs on Chinese goods, according to an online statement.

RESPONSIVE TO MARKET FORCES

The U.S. threat of imposing an additional 10 percent tariff on 300 billion dollars worth of Chinese goods starting Sept. 1 disrupted market expectations, causing global stock and foreign exchange markets to slump, said Zhang Yansheng, a researcher with the China Center for International Economic Exchanges.

China is the victim of U.S. trade bullying, he added.

Wang Youxin, a researcher with the international financial research institute under the Bank of China, regarded the yuan devaluation as a normal response to external changes.

The additional tariff hikes on Chinese goods will undoubtedly bring shocks to Chinas exports and forex revenue. Thus, it is in line with expectations that the yuans exchange rate fluctuates in accordance with external changes, Wang said.

REMAINS A STRONG CURRENCY

Despite recent weakening, the yuan has strengthened 20 percent against the dollar over the past two decades, the strongest among major currencies in the world.

The yuan remained basically stable and strong against a basket of currencies, with the China Foreign Exchange Trade System yuan exchange rate composite index up 0.3 percent since the beginning of the year.

Although the yuans central parity rate had weakened about 0.53 percent against the dollar by Friday, its depreciation was much smaller than those of the Korean won, the Argentine peso and the Turkish lira.

Seven is just a number. It is normal to rise and fall, said Bai Ming, deputy director of the International Market Research Department under the Ministry of Commerce.

CAPABLE OF KEEPING YUAN STABLE

The PBOC has the experience, confidence and capability necessary to keep the yuans exchange rate basically stable at a reasonable and balanced level, the statement said.

The yuans exchange rate is determined by long-term economic fundamentals, although it is affected by the market supply and demand as well as the dollars movement in the short term.

From the macro perspective, the yuans exchange rate is buoyed by the countrys sound fundamentals, strong economic resilience, stable fiscal position, controllable financial risks, balanced cross-border capital movement and sufficient foreign exchange reserves.

The central bank said China is likely to become a hot spot for global capital, as the country is the only major economy that keeps normal monetary policy while many developed economies have loosened their monetary policies.

The central bank has accumulated considerable experience and policy tools in coping with exchange rate fluctuations, and will continue to innovate and improve its toolkit, crack down on short-term speculation and stabilize market expectations in the future, according to the statement.

(Xinhua)08:14, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Chinas agriculture sector has seen rapid growth over the past 70 years, with grain output expanding 4.8 times, according to a report from the National Bureau of Statistics (NBS).

Chinas grain output grew at an average annual rate of 2.6 percent from 1949 to reach 658 billion kg in 2018, managing to feed around 20 percent of the worlds population with only less than 9 percent of the worlds arable land, according to the report.

The country increased the diversity of food supply by developing the breeding industry, with the output of aquatic products ranking first in the world since 1989, which stood at 64.6 million tonnes in 2018, 143 times higher than 1949.

The structure of the agriculture industry was continuously optimized, with a modern pattern promoting all-round development of farming, forestry, animal husbandry and fishery replacing the traditional farming pattern, the NBS said.

Scale operation of agriculture was enhanced by the progress of rural land circulation. Over 35 million hectares of family contracted farmland was circulated in 2018, posing a sharp contrast to the 58 million mu in 2004.

The country also fostered new types of entities of agricultural production and service. By the end of 2018, 600, 000 family farms and 2.17 million farmer cooperatives had been registered.

(Xinhua)08:17, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Chinas banking system saw improved concentration with the asset proportion of five large state-owned banks in a reasonable range, the countrys banking and insurance regulator said Monday.

The total asset of the five state-owned banks stood at 105 trillion yuan (about 15.17 trillion U.S. dollars), accounting for 37 percent of all banking financial institutions, the China Banking and Insurance Regulatory Commission (CBIRC) said on its website.

The five state-owned comprehensive commercial banks include the Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of Communications.

By the end of 2018, China had 4,588 banking financial institutions covering over 20 types of banks, CBIRC data showed.

Of the sectors total, the balance of deposits and loans of the five state-owned banks made up 44 percent and 38 percent, respectively.

Compared with the United States and major economies in Europe, Chinas domestic banking system posted a lower concentration, the CBIRC said.

With mixed-ownership reform promoted in recent years, the number of financial institutions controlled by private capital has exceeded 3,000. Private capital accounts for 40 percent, 50 percent and 80 percent in the capital stock of joint-equity banks, city commercial banks and rural cooperative banks, respectively.

China would continue to accelerate financial supply-side structural reform and optimize the banking service system, said the CBIRC.

(Xinhua)08:18, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Some U.S. politicians are overdrawing the nations credit as breaking promises has become their signature move, according to experts with think tanks.

The United States once again broke its word by announcing the plan to impose an additional 10 percent in tariffs on 300 billion U.S. dollars worth of Chinese imports starting on Sept. 1.

Those who light the powder keg are bound to get burnt, said scholars and experts at a symposium held by the Renmin University of China (RUC) Monday.

The U.S. side lacks sincerity in consultation and is used to exerting maximum pressure, said Yu Miaojie, deputy director of the National School of Development at Peking University.

On the contrary to Chinas problem-solving stance, the U.S. holds an attitude of making trouble, said Cheng Dawei, a researcher with the National Academy of Development and Strategy, RUC.

China has always kept its word, and the country, based on market principles, has recently created favorable conditions for domestic companies to purchase U.S. agricultural products, Cheng said.

The flip-flopping has brought no benefit to the United States. The countrys GDP growth slowed to 2.1 percent in the second quarter, down from the 3.1 percent of growth for the first quarter, latest data from the U.S. Commerce Department showed.

Consumer goods accounted for a considerable proportion in the United States latest tariff threat against China. The tariff hikes would harm the interests of a vast number of American consumers if they take effect and trigger inflationary pressures in the country, said experts at the symposium.

It is necessary to recognize the complexity and long-term nature of China-U.S. economic and trade frictions, said Huo Jianguo, vice chairman of the China Society for WTO Studies, adding that for the two largest economies in the world, the decoupling theory is unrealistic.

China should maintain a clear understanding and strategic determination by focusing on high-quality development, so as to stimulate market vitality and enhance economic resilience, according to the experts.

(Xinhua)08:30, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Chinas foreign service trade totaled 2.61 trillion yuan (about 377 billion U.S. dollars) during the first half of the year, up 2.6 percent year on year, the Ministry of Commerce (MOC) said Monday.

In breakdown, service exports grew 9 percent from a year earlier to 933.37 billion yuan, while imports dipped 0.6 percent to 1.68 trillion yuan.

The service trade deficit amounted to 745.71 billion yuan in the first six months, down 10.5 percent year on year.

The service trade growth came amid strong development of Chinas service industry, which reported an output growth of 7 percent in the January-June period.

Mondays data also showed the countrys trade of knowledge-intensive services maintained rapid expansion, increasing 9.4 percent year on year to 892.39 billion yuan.

Imports of knowledge-intensive services grew by 6.5 percent to 424.98 billion yuan, while exports grew by 12.1 percent to 467.41 billion yuan, showed the MOC data.

By RenHuanyu (Peoples Daily)09:58, August 06, 2019

“Despite our geographical distance, we have become like-minded partners, thanks to our common pursuit of peace and development and shared aspiration for a better life for our people.”

Chinese President Xi Jinping’s remarks at the welcoming banquet of the second Belt and Road Forum for International Cooperation are still resonating.

In the first half of 2019, the Chinese President took 5 overseas trips and left his footprints on 8 Asian and European countries. Besides, he also received a total of over 60 meetings with foreign heads of state, government principals and leaders of international organizations at home.

Xi’s sincere exchanges with foreign leaders marked new achievements made by China as it is continuously expanding the network of global partnerships. Such efforts will be recorded by history.

With improved diplomatic agenda and expanded space for strategic planning, China’s diplomacy is seeing a larger international influence.

At present, the world is experiencing fiercer international competition and friction, rising geo-political practices, as well as damages to the international mutual trust and cooperation. All of these are posing challenges to the globe. As a result, the world needs to work hand in hand more than ever before to overcome the difficulties.

Proposing to build a new type of international relations and a community with a shared future for mankind, Xi is leading the trend of time to promote partnership, the spirit of win-win cooperation and common development, and his practice has been well received by the international society.

The vision of the Chinese leader and the sense of responsibility of China are injecting more stability and positive energy to the changing world.

China has revitalized traditional friendships and consolidated the foundation for the global network of partnerships. From Rome, Monaco to Paris, and from Moscow, Bishkek to Dushanbe, President Xi and his foreign counterparts reviewed their traditional friendly exchanges and ushered in new chapters of comprehensive cooperation, pushing bilateral relationships onto new levels.

Italy became the first G7 member to participate in the Belt and Road construction; China and Monaco agreed to constantly enrich the connotation of bilateral cultural exchanges; China and France inked agreements on the third round of the BRI-related demonstration projects in third-party markets.

Besides, China and Russia upgraded their relations to a comprehensive strategic partnership of coordination for a new era; China further deepened its comprehensive strategic partnerships with Kyrghyzstan and Kazakhstan, and ushered in a new chapter of its ties with the Democratic Peoples Republic of Korea (DPRK).

All countries, big or small, strong or weak, rich or poor, are equal members of the international community. China has always treated every country equally and sincerely, putting the rich connotation of partnership into practice and setting an example of friendship and cooperation between different countries.

China has advanced interconnected development through practical cooperation, and enhanced the impetus for global partnership network. Faced with the rising trend of anti-globalization, President Xi is firmly upholding multilateralism and actively guiding international cooperation.

The second Belt and Road Forum on International Cooperation has yielded fruitful results, and over 100 bilateral and multilateral documents have been signed by relevant countries and international organizations. The joint construction of the Belt and Road is turning from “painting broad strokes” to “refining the details”, starting a new phase of high-quality development.

China advocates common development and builds cooperation frameworks at all levels. It promotes practical cooperation that is results-oriented, and is actively establishing a global partnership for interconnectivity to achieve common prosperity.

Now more and more countries are joining the Belt and Road Initiative (BRI) and become partners of China. Those who share the same ideal and follow the same path can be partners. Those who seek common ground while shelving differences can also be partners.

At the G20 Osaka Summit, Xi has given profound expounding on the differences of interests and opinions faced by countries in their respective development phases. The important thing is to always promote our partnership and treat each other with respect and trust, and in that spirit, engage in consultation as equals, manage differences while seeking common ground, and build greater consensus, he remarked.

By announcing a series of major opening up measures and concrete actions, China is continuously expanding the common interests with each country and improving the quality of its global partnerships, injecting new vitality and energy into the high-quality development of the world economy.

China is embarking on a new path of state-to-state relations where dialogue and partnership prevail over confrontation and alliance, which further highlights the value of the global partnership network.

The country steadfastly upholds rules-based multilateralism and the UN-centered international system, and promotes a global governance system of wide consultation, joint contribution and shared benefits. It is also safeguarding international justice and promoting the building of a new type of international relations.

The world is currently facing deficits of governance, trust, peace and development. At a China-France global governance forum, President Xi advised to put mutual respect and mutual trust in the first place, make use of dialogue and consultation, seek common ground while shelving and narrowing differences, increase strategic trust, and reduce mutual suspicion.

At the 19th Shanghai Cooperation Organization (SCO) summit in the Kyrgyz capital of Bishkek, Xi also proposed to improve the organization’s network of partnerships, encourage broader participation in cooperation by observer states and dialogue partners, strengthen exchanges with the UN and other international and regional organizations, play a more active role in international and regional affairs, and jointly contribute to durable peace and common prosperity of the world.

“Mutual respect and trust is required in developing state-to-state relations,” Xi stressed when addressing the fifth Summit of the Conference on Interaction and Confidence-Building Measures in Asia. His remarks pointed a clear direction for building an Asia where countries enjoy mutual respect and trust.

China is not only an initiator, but also a practitioner of building a global partnership of shared future. Chinese schemes, centered with the spirit of partnership, are playing a vital role in safeguarding the peace and stability of the world.

The destiny of every country in the world is interconnected. China’s practice to expand the network of global partnerships is a distinguished feature of major country diplomacy with Chinese characteristics.

China, by building a comprehensive, diverse, and multi-dimensional network of global partnerships, has proved that different social systems and development modes can be inclusive and cooperate with each other, and that different cultures can communicate with each other. As a result, countries can achieve win-win outcomes and common prosperity.

“But either in good times or bad, either on a smooth road or a thorny path, we will uphold the spirit of partnership, keep in mind what brought us together, and march forward without hesitation,” Xi remarked at the welcoming banquet of the second Belt and Road Forum for International Cooperation.

What he said signaled that China is willing to join hands with its partners to sow the seeds of cooperation and reap the fruits of common development, so as to make the world a better place when building a community of shared destiny for mankind.

(Xinhua)11:01, August 02, 2019

BEIJING, Aug. 2 — The Peoples Bank of China (PBOC) launched its Wechat public account on Friday as a new channel of policy communication with the public.

Through this public account, we will release official information, interpret financial policies and introduce financial knowledge, PBOC governor Yi Gang said in the first post of the account.

The new platform will help people better understand the work of the central bank and facilitate the submission of opinions and suggestions on its work by the public, Yi said in the post.

We will continue to enrich and improve the communication between the PBOC and the public, and enhance the transparency and credibility of our policies, he added.

The first post, which was released at around 8 a.m., was read over 90,000 times and received over 1,600 likes within 1.5 hours.

In late 2013, the central bank opened an account on Chinas twitter-like platform Weibo, and now the account has over 2,200 posts and 3.17 million followers.

(Xinhua)13:12, August 02, 2019

WASHINGTON, Aug. 1 — The U.S.-China Business Council (USCBC) said Thursday that U.S. President Donald Trumps plan to impose more tariffs on Chinese imports will not facilitate an agreement, but lead to more difficulties.

Were concerned that todays action will drive the Chinese from the negotiating table, reducing hope raised by a second round of talks that ended this week in Shanghai, USCBC President Craig Allen said in a statement, after Trump tweeted he will place an additional 10-percent tariff on the remaining 300 billion U.S. dollars worth of Chinese imports starting on Sept. 1.

Allen said it was disconcerting that the additional tariffs were announced after learning yesterday that the talks were considered constructive, and that another meeting of negotiators would take place in Washington D.C. in early September.

Were concerned these additional tariffs will further erode our reputation as a reliable supplier, and our farmers, workers and consumers will suffer more, said Allen, adding that his organization is also worried about potential retaliation from China.

USCBC calls on both parties to refrain from the use of punitive tariffs and to resume talks without preconditions, he said.

Myron Brilliant, executive vice president and head of international affairs at the U.S. Chamber of Commerce, said in a statement that the new tariffs will only inflict greater pain on American businesses, farmers, workers and consumers, and undermine the U.S. economy.

We urge the two sides to recommit to achieving progress in the very near term before these new tariffs come into effect, and to remove all remaining tariffs as swiftly as possible, Brilliant said.

(Xinhua)13:15, August 02, 2019

WASHINGTON, Aug. 1 — The National Retail Federation (NRF) said Thursday retailers are disappointed that the U.S. administration is doubling down on a flawed tariff strategy, urging the government to seek new tools to achieve better trade relations.

The tariff strategy is already slowing U.S. economic growth, creating uncertainty and discouraging investment, the NRFs Senior Vice President for Government Relations David French said in a statement, in response to U.S. President Donald Trumps announcement to impose 10 percent additional tariffs on 300 billion U.S. dollars worth of Chinese goods beginning Sept. 1.

These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods, French said.

Noting that the tariffs imposed over the past year havent worked, French said theres no evidence another tax increase on American businesses and consumers will yield new results.

President CEO of Footwear Distributors and Retailers of America Matt Priest said we are dismayed at the presidents announcement on new tariffs, noting that his trade association has worked tirelessly to make the case against even higher tariffs on shoes.

President Trumps new tariffs should concern every American. 70 percent of every pair of shoes sold in the U.S. comes from China, said Priest, whose organization represents 90 percent of all U.S. footwear retailers and brands.

President Trump is, in effect, using American families as a hostage in his trade war negotiations, Priest said, adding that the fresh levy will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry.

We hoped that continued open communication channels between Washington and Beijing would allow time to ease trade tensions and eventually end the tariff threat, Priest said. It is clear political considerations are outweighing economic common sense.