Day: April 24, 2021

(Xinhua)15:36, January 01, 2021

South Koreas export fell last year due to an economic fallout from the COVID-19 pandemic, but the slide was limited owing to a partial global demand recovery in the latter half of 2020, a government report showed Friday.

Export, which takes up about half of the export-driven economy, declined 5.4 percent over the year to 512.85 billion U.S. dollars in 2020, according to the Ministry of Trade, Industry and Energy.

Import contracted 7.2 percent to 467.23 billion dollars, sending the trade surplus to 45.62 billion dollars. The trade balance stayed in black for 12 straight years.

Last years export topped 500 billion dollars for the fourth consecutive year, while the trade surplus picked up 17.3 percent compared to the previous year.

For the whole year of 2020, the outbound shipment went down in single digits, but global demand partially turned around in the second half.

The countrys export retreated 11.3 percent in the first half, before rebounding 0.4 percent in the second half. During the October-December quarter, the shipment advanced 4.2 percent from a year earlier.

Semiconductor export added 5.6 percent over the year to 99.18 billion dollars in 2020, logging the second-highest yearly figure.

Computer shipment surged 57.2 percent as people worked from home and attended online classes on the fear of virus infections.

Shipment of medical supplies in the bio-healthcare sector surpassed 10 billion dollars for the first time, continuing to rise for 11 years running.

Meanwhile, the export advanced 12.6 percent from a year earlier to 51.41 billion dollars in December, exceeding 50 billon dollars in 25 months since November 2018.

The shipment tumbled more than 20 percent in April and May, before recording the first rebound in seven months in September. It retreated 3.8 percent in October, before expanding 4.1 percent in November.

The daily average export increased 7.9 percent over the year to 2.14 billion dollars in December, keeping an upward momentum for the third consecutive month.

Import climbed 1.8 percent to 44.46 billion dollars last month, sending the trade surplus to 6.95 billion dollars. The trade balance maintained a surplus trend for eight months in a row.

Among 15 major export items, 11 grew in December as the COVID-19 pandemic raised demand for tech products.

Chip export jumped 30.0 percent last month, continuing to rise in double figures for four straight months.

Display panel shipment reached last years monthly high of 2.11 billion dollars in December, and export for computer and consumer electronics grew in double digits.

Shipment for telecommunication devices, such as smartphone, surged 39.8 percent in December from a year earlier, posting the fastest increase in 62 months.

General machinery export rebounded in three months, and the shipment in the bio-healthcare sector kept advancing for 16 months through December amid strong demand for COVID-19 test kits.

Export to South Koreas four major export markets, including China, the United States, the European Union (EU) and the Association of Southeast Asian Nations (ASEAN), all increased for two straight months in December.

Shipment to Japan added 1.4 percent, and those to Latin American countries and India posted a double-digit gain last month.

(China Daily)09:42, January 02, 2021

Consumption, manufacturing, exports set to drive economic expansion in 2021

Chinas efforts to stimulate economic growth in 2021, including an expected stronger momentum in foreign trade, will continue contributing to global economic recovery and help stabilize global industrial chains amid the lingering fallout of the COVID-19 pandemic, officials and experts said.

The comments came as the worlds second-largest economy is forecast to see around 2 percent GDP growth in 2020 on the back of reviving consumption, manufacturing investment and resilient exports. These positive factors are expected to continue driving Chinas economic expansion in 2021, experts added.

Ning Jizhe, vice-minister of the National Development and Reform Commission, said that faced with an uncertain external environment, China will maintain its proactive fiscal policy and prudent monetary policy in 2021, and strive to stabilize the economy at a reasonable level.

China is still in an important period of strategic opportunity for development. We have confidence and the foundation to promote economic recovery and stable development, Ning said in an interview with Xinhua News Agency.

As the first year of Chinas 14th Five-Year Plan (2021-25), this year is of great significance in taking a good first step in building a new development pattern with the domestic market being the mainstay and the domestic and international markets supporting each other.

More efforts will be made to improve the quality of the supply system in 2021, which is the focus and foundation for building the new development pattern, Ning said, adding that China will accelerate steps to construct an innovation system, and implement key projects targeting breakthroughs in key technologies and solutions to bottleneck problems.

Meanwhile, the government will strengthen demand-side management by expanding domestic demand, and encourage new types of consumption, Ning added.

These policies to stabilize Chinas economic growth in 2021 will help the global economy better recover from the pandemic-related downturn and contribute to the stability of global supply chains, experts said.

Reuters said in a recent analysis that in a global economy hit hard by COVID-19, Chinas foreign trade in 2020 can be described as a dark horse, as it shouldered the responsibility for filling the gaps in global industrial chains.

Though it remains uncertain when the pandemic will end and global demand is still in recovery, Chinas foreign trade is expected to stabilize at a high level in 2021, Reuters said.

Bai Ming, deputy director of the international market research institute under the Ministry of Commerce, said if the epidemic situation remains under control this year, the outlook would be cautiously optimistic for Chinas overall foreign trade situation.

The countrys foreign trade expanded 7.8 percent year-on-year in November, with exports jumping 14.9 percent on a yearly basis due to Chinas early recovery from the pandemic, its reliable supply chains and major trading partners better-than-expected economic performance, according to the latest customs data.

Gao Lingyun, a research fellow at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said the joint efforts made by China and its partners including the European Union, the Association of Southeast Asian Nations, Japan and South Korea to support free trade and the multilateral trading system will have a positive effect on the global economy in 2021.

In addition to stimulating trade and investment activities via regional economic and trade pacts such as the Regional Comprehensive Economic Partnership agreement and the future bilateral investment treaty between China and the EU, Chinas foreign trade is expected to grow steadily this year on the back of several factors, including a notable improvement in the industrial, supply and service chains, Gao said.

Southeast Asian countries will continue to increase their imports from China as their industrial structures remain highly complementary. Meanwhile, with continuous tariff cuts and the coming implementation of zero tariffs within the next decade under the RCEP agreement, ASEAN countries will import more industrial goods, including primary parts, raw materials and auto parts from China to support their production and supply chains, the researcher added.

CRRC Sifang, a unit of China Railway Rolling Stock, the countrys largest rolling stock manufacturer by production volume, announced last month that it had won a big-ticket contract to build trains for the Alameda-Chillan rail service in Chile, marking the second rolling stock tender the firm has won in the South American country.

The contract involves manufacturing six diesel-electric trains and 24 coaches that include WiFi, a coffee service facility and entertainment systems. It will be the first time for China to export dual-powered trains to an overseas market. The company said that the trains will be delivered to its Chilean client in 2022.

In the face of competition and the continuous emergence of new technologies, we will further enhance our scientific and technological innovation capability, and make breakthroughs in next-generation trains such as high-speed freight trains and greener urban rail transit vehicles, said Wang Jun, CRRCs vice-president.

(Xinhua)10:54, January 02, 2021

BEIJING, Jan. 1 (Xinhua) — Chinas proactive fiscal policy will be implemented in a more targeted and effective way this year to keep the economy running within a reasonable range, Finance Minister Liu Kun said.

In 2021, the proactive fiscal policy will be more sustainable in terms of expenditure scale and policy strength to stabilize growth while preventing risks. Liu made these observations at a national fiscal work conference.

The overall government leverage ratio will stay at a stable level to leave policy space for combating future risks and challenges, according to Liu.

The minister noted that China would maintain policy continuity and push forward tax and fee reductions.

Science and technology will be the key area of the countrys fiscal expenditure in 2021 to support development of key and core technologies, enhance national strategic science and technology strength, help upgrade industrial and supply chains and stimulate innovative vitality of enterprises.

Priorities will include improving investment structures, encouraging consumer spending, and facilitating new-type people-centered urbanization, said Liu.

Efforts will be made to guarantee the peoples well-being, improve policy support for agriculture, rural areas and farmers, as well as for rural vitalization, Liu said.

Investment will be made in pollution control to support green development, he said.

Liu also pledged efforts to fend off risks in key areas, deepen reform of the taxation system, and enhance fiscal management and supervision.

China will continue to implement proactive fiscal policies and prudent monetary policies in 2021 amid efforts to maintain the necessary support for economic recovery, according to the annual Central Economic Work Conference last month.

(Xinhua)10:59, January 02, 2021

BEIJING, Jan. 1 (Xinhua) — China will cut subsidies on new energy vehicles (NEVs) starting Friday to promote the healthy development of the industry, said a circular posted on the official website of the Ministry of Finance (MOF).

Subsidies for NEVs in public transportation, environmental sanitation, postal services and logistics, and civil aviation airports, among others, will be cut by 10 percent compared to that of 2020, said the circular.

Subsidies on other NEVs will be cut by 20 percent, according to the circular jointly released by the MOF, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission.

China will also strengthen regulations on the blind investment and manufacturing of NEVs to prevent over expansion in the sector, the circular said.

In November last year, China unveiled a development plan for its NEV industry in 2021-2035 that aims to accelerate the countrys transition into an automotive powerhouse.

The proportion of new NEVs in the sales of new vehicles is expected to rise to 20 percent by 2025, and vehicles used in public transportation will be completely electrified by 2035, according to the plan.

Boasting the worlds largest inventory of NEVs, China accounts for 55 percent of global NEV sales.

(Xinhua)09:47, December 30, 2020

BEIJING, Dec. 29 (Xinhua) — China on Tuesday set up a national fund to facilitate the mixed-ownership reform of its state-owned enterprises (SOEs), according to the countrys top state assets regulator.

With a total of 200 billion yuan (about 30.56 billion U.S. dollars), the fund aims to raise 70.7 billion yuan in the first phase, according to the State-owned Assets Supervision and Administration Commission (SASAC).

The fund was jointly established by the China Chengtong Holdings Group Ltd, a centrally administrated SOE pilot for state-owned capital operations, and other shareholders, expanding channels for social capital to join the mixed-ownership reform of SOE, the SASAC said.

Including making equity investments, the fund will focus on national strategic areas, competitive areas, scientific and technological innovation, and key parts of industrial chains. It is to improve the operating efficiency of state-owned capital and boost the vitality of all market entities.