China Economy Forum

[cirr]

Information sector: new engine to boost China's economic growth

English.news.cn 2013-08-20 14:45:33

By Lu Hui

BEIJING, Aug. 20 (Xinhuanet) -- China aims to boost the consumption of information products and services, making the sector a new engine for boosting domestic demand and a new driver of economic growth, according to a guideline released by the State Council, or China's cabinet.

As China's personal consumption is upgrading and the country is undergoing the processes of industrialization, informationization, urbanization and agricultural modernization, information consumption has a sound foundation and tremendous potential.

By the end of 2015, the consumption of information products and services is expected to grow at an annual pace of at least 20 percent to reach 3.2 trillion yuan , according to the guideline.

The value of industries that are supported by information consumption is expected to be boosted by 1.2 trillion yuan by the end of 2015, the guideline said.

As China is reducing the economy's reliance on investment-led growth and exports and gearing it more towards a consumer-led expansion, promoting the consumption of information can invigorate domestic demand and act as a new growth point for the economy, as well as upgrade the service industry and promote economic restructuring.

According to the data published by the Ministry of Industry and Information Technology (MIIT), China's e-commerce sector raked in 4.98 trillion yuan in revenue in the first half of this year, up 45.3 percent year on year. And consumption of information products and services jumped 20.7 percent year on year to 2.07 trillion yuan.

As growth in traditional industries slows, the nation is seeking new growth engines in emerging industrial sectors.

Zhu Hongren, the Ministry of Industry and Information Technology's chief engineer and spokesman, said the ministry hopes to make the IT sector the nation's third-largest, after real estate and vehicles.

Xiong Wei, chief research officer of an investment consulting company in Beijing, regarded information consumption as a new direction of China's economic transformation and update, calling for new technologies and services in the sector.

The State Council elevated national broadband development as as a national strategy, which aims to achieve WiFi coverage in key public urban areas by 2013 and fixed broadband coverage for half of Chinese households by 2015.

The government will release 4G mobile communications licenses later this year and promote the convergence of the telecommunication, Internet and broadcasting networks into one complete system.

China, which has the largest number of mobile phones in the world at 1.2 billion, is already building 4G trial networks in major cities.

However, China needs to take never-stop forward steps in the campaign.

"Generally speaking, China's broadband development is at the middle and lower levels across the world. The situation does not match the country's position as the world's second largest economy," said Fu Liang, a Beijing-based independent telecom analyst.

Compared with neighboring countries such as Japan and South Korea, which emphasized broadband development and invested heavily in related projects decades ago, China has been left far behind, he said.

To better coordinate with public sectors in implementing the guideline, private capital will be encouraged to invest in telecom infrastructure construction, according to government officials.

Besides, small information business-based companies will be entitled to enjoy preferential financial support. And the government will continue to simplify the administrative approval procedures and cut taxes for those businesses, they added.

Information sector: new engine to boost China's economic growth - Xinhua | English.news.cn

 

[sms]

Hello SMS, may I know what is your job in China? Or sector...if you don't want leak you personal infor

I work for an American Multinational in Shanghai operation. We did contact Foxcon as an option to producs fewsub system. We could get most cost effective solution but finally we decided not to select them.

 

[Star Wars]

By ​Keith Bradsher

New York Times Aug 17, 2013, 04.39AM IST

As the Chinese economy boomed, few cities soared faster or higher than Shenmu, a community of nearly 500,000 in northwestern China.


Top luxury clothing stores in this city's downtown were recording as much as $500,000 a day in sales. Tables at the best restaurants had to be reserved weeks in advance. The new Fortune Garden Club for the city's business elite made headlines by paying $1 million for a king-size mahogany bed, to be used by members and their companions.But a painful credit crisis is now spreading across Shenmu and cities nearby, as thousands of businesses have closed, fleets of BMWs and Audis have been repossessed and street protests have erupted.

Now the leading purveyors of Western fashions are deserted, monthly sales at restaurants are down as much as 97 percent and the marble entrance to the Fortune Garden Club is shuttered. All but one of the city's car dealerships have failed. The owner of the city's largest jewelry store was detained by the authorities a week ago after creditors found him secretly packing millions of dollars' worth of gold and jewels into cases and accused him of preparing to flee the city without settling his debts. A top restaurant closed a day earlier, and its owner left town, as have the founder of the Fortune Garden and many other executives.

"It's an economic crisis just like the United States has had; just like it," said Wang Ting, an operator of an illegal casino in Fugu, near Shenmu. "There's no cash, everyone stays home without a job, there's no way the economy can recover."

Shenmu, and nearby cities like Ordos and Fugu, are at the leading edge of broader troubles that are beginning to afflict the entire Chinese economy. Across China, growth has slowed. With the slowdown have come rising defaults on loans made outside the conventional banking system, chronic overcapacity in many industries like coal mining and steel production and, in particularly troubled cities like Shenmu, a sharp decline in previously debt-fueled prices for real estate and other assets.

The cracks are showing in many sizable cities like coastal Wenzhou, where informal lending, a big part of so-called shadow banking, has dominated for a quarter-century. Cities with economies linked to commodities with falling prices have also been affected, as more people have defaulted on loans. The biggest, most economically diverse metropolitan areas like Beijing and Shanghai seem considerably less affected, but also have many small and medium-size businesses that depend on informal lending.

Lending has collapsed here in northern Shaanxi province, where it had been particularly speculative and frenzied, and where the local coal industry has also been crippled by steeply falling prices.

As some borrowers began defaulting early this year, worried lenders in the informal sector raised interest rates for small and medium-size businesses, previously 25 to 40 percent a year, to as much as 125 percent a year. The increase set off a much broader wave of defaults in recent weeks, as owners found themselves unable to repay billions of dollars in bad debts, many of them handwritten and hard to enforce in court.

"Almost no one will give you a loan," said a construction executive who gave only his surname, Xie, as he stood next to his white Toyota Land Cruiser outside a project that had been halted.

Although changes are being slowly introduced, state-owned banks have long been allowed to lend only at low, regulated rates barely above the inflation rate, with the total value of loans controlled by quarterly quotas. All over China, these loans go overwhelmingly to large state-owned businesses, government officials and politically connected individuals, who then relend the money at much higher interest rates to small and medium-size businesses in the private sector that need money to grow.

Liu Linfei, a government official from nearby Yulin, stood on a Shenmu street corner in a T-shirt and shorts on a recent weekend afternoon, outside two high-rise hotels where construction had been stopped just before the windows could be installed. He said he had borrowed 600,000 renminbi, almost $100,000, from a bank shortly before the collapse, at an interest rate of 4.1 percent a year.

Liu then lent the cash to moneylenders here at an interest rate of 10.4 percent, planning to pocket the difference.

The moneylenders who borrowed from Liu defaulted, and now he is struggling to repay the bank. "I'm not going to lose my house, because I'm repaying it little by little with money I borrow from my relatives," he said.

The Chinese are finding it harder to repay loans because the economy is slowing. Most analyses of China's economy look only at the real economic growth rate, around 7.5 percent this year. But for companies' sales and profits, which determine their ability to repay debts, what really matters is the nominal growth rate, which is real economic growth plus inflation.

Credit crisis begins to cripple Chinese cities - Economic Times

 

[djsjs]

oh ,shenmu now is world well known,several years ago ,it's a small county that more than 99% Chinese don't know.
this is the small town

OMG WEHZHOU

 

[shuttler]

Argentina to purchase Chinese trains


Chinadaily
Updated: 2013-08-21 11:33 ( Xinhua)


BUENOS AIRES - The Argentine government Tuesday approved a contract to purchase railway equipment from a Chinese firm, said a government gazette.

The contract was signed by the Argentine Ministry of the Interior and Transportation and the Chinese firm CSR Qingdao Sifang Co, Ltd on May 23, 2013 and officially approved with Administrative Decision 584/2013,published Tuesday in the gazette.

The gazette said the contract will supply railway equipment, as well as technical services and training to renovate rails and wheels for the General Roca Line, which will link the capital city Buenos Aires with a populous metropolitan area to the south.

The Chinese-built trains adopt the latest technology, assuring comfort, speed and safety, the Argentine government said.

The gazette added the spending needed will be covered by the credits granted to the ministry.

In February 2012, a train accident in Buenos Aires killed 51 passengers, which prompted the government to intervene in the privately-run operation and order the renovation of trains, an opportunity that had attracted the interest of Chinese firms.



That is additional to this contract:


CSR wins Argentina train set contract
(Xinhua)
08:45, January 14, 2013

Argentine President Cristina Fernandez de Kirchner has recently announced that CSR Qingdao Sifang Co., Ltd. CSR Sifang won an EMU purchase contract worth over 3.4 billion yuan, marking the largest-ever rail transit equipment order of Chinese enterprises in South America. CSR President Liu Hualong headed for Argentina to witness the contract signing.

Credit: CSR

Credit: Raillynews

CSR wins Argentina train set contract - People's Daily Online

BEIJING, Jan. 12 (Xinhua) -- CSR Sifang Co. said Saturday that the company has obtained a contract worth over 3.4 billion yuan (539.68 million U.S. dollars) to supply electric multiple unit (EMU) train sets for Argentina.

The deal represents CSR's single largest rail equipment order in South America, the company said in a statement filed to the Shanghai Stock Exchange.

CSR Sifang is expected to deliver the first batch of train sets in May 2014, with the remainder to be delivered in six months.

The EMU train sets will be used on the Sarmiento and Mitre train routes in Buenos Aires, the statement said.

CSR Sifang, based in the port city of Qingdao, is a subsidiary of China South Locomotive and Rolling Stock Corporation, the country's biggest train maker.

CSR's overseas orders increased substantially in 2012, as overseas demand for its products outstripped domestic demand. The total value of its overseas orders surged 148 percent year on year in 2012.

 

[shuttler]

Air conditioning vest

news.shangdu.com

8月13日，王彦现场演示空调背心穿戴及降温效果。
August 13, Wang Yan the inventor, demonstrates an air conditioning and cooling vest.

穿上南通空调背心者，可调整贴身环境温度，将高温降至19至25度
The Nantong air conditioning vest can be adjustable. It can lowered high temperature to within 19 to 25 degrees



炎炎夏日，许多人群在高温环境下坚持工作。为让这类人群在高温下可以较舒适地工作，江苏省南通市通州区平潮镇的王彦多年前便萌生发明空调服的想法。通过查询大量资料、请教专家，王彦从对制冷原理一无所知开始，反复摸索试验多年，最终通过空气压缩机搭配通风管成功研制出空调背心。在一些无法开启空调的高温环境下，工作人员穿上这种背心，可以将贴身环境温度迅速降至19至25度，并可以根据需要随时调节，为高温作业人员创造一个较为舒适的工作小环境。新华社发(崔根元 &#25668

空调背心简介：

空调背心又称人体空调衣，防热服、冷却背心、降温背心、涡流冷却背心、空调背心、高温防护服、人体冷却系统等。空调背心用于为需要在高温环境中工作的人们提供舒适的冷却和保护。空调背心通过压缩空气接入涡流管分离出冷气流和热气流两股气流，将冷气流通入背心里的导管，达到给人体降温的目的。

Summer, many people continued to work in high temperature environment. To allow such groups at high temperatures can be more comfortable to work in Nantong City, Jiangsu Province, Tongzhou District, the town of Wang Yan Ping Chao sprouted many years ago invented the idea of ​​air conditioning services. By querying large amounts of data, consult experts, Wang Yan started from nothing on the refrigeration principle, repeatedly experimented for many years, and ultimately through the air compressor with air conditioning duct successfully developed a vest. Unable to open air in some high temperature environment, the staff wear the vest, you can close the ambient temperature quickly dropped to 19-25 degrees and can be adjusted according to need, in order to create a high-temperature operating personnel little more comfortable working environment . Xinhua News Agency issued (Cui root per photo)

Air Conditioning Vest Description:

Air conditioning clothing vest, also known as the human body, heat protective clothing, cooling vests, cooling vests, vortex cooling vests, air conditioning, vests, heat protective clothing, body cooling systems. Air conditioning vest used to work in a hot environment need to provide people comfort cooling and protection. Access by compressed air conditioned vest isolated vortex tube air flow and heat flow two streams, the air circulation inside the catheter into the vest to achieve the purpose of cooling the human body.

Internet translation

 

[BDforever]

China's manufacturing activity rebounded in August, a preliminary survey by HSBC has indicated, easing fears of a slowdown in its economy.

The bank's Purchasing Managers' Index (PMI), a key gauge of the sector's health, rose to 50.1 from 47.7 in July.

A reading above 50 shows expansion. For the first time in four months, the HSBC reading has passed that point.

China has taken various steps in recent weeks to boost its economic growth - which has slowed for two quarters.

Hongbin Qu, chief China economist at HSBC, said that the rebound in sector was in part due to those measures.

"This is mainly driven by the initial filtering-through of recent fine-tuning measures and companies' restocking activities, despite the continuous external weakness," he said.
'Upside surprises'

The data comes amid fears that China's growth rate - which has declined for two straight quarters - may slow further.

The world's second-biggest economy grew at an annualised rate of 7.5% in the April to June quarter, down from 7.7% in the previous three months.

One of the reasons that has played a key role in the slowdown has been the decline in demand for Chinese exports from key markets such as the US and Europe as those economies grapple with their own set of problems.

Prompted by the slowdown in external demand - Beijing has been trying to boost domestic consumption in an attempt to rebalance its economy and sustain high levels of growth.

From the start of this month, China has suspended the value-added tax and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125).

The cabinet said the move would benefit more than six million small companies and boost the employment and income for millions of people.

Beijing has also said that it will also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises.

Mr Hongbin added that as the impact of these steps starts to filter through even more, the bank expected "some upside surprises to China's growth in the coming months."

source: BBC News - China manufacturing activity sees sharp rebound

 

[StarCraft_ZT]

China

China’s Manufacturing Gains on Stronger Domestic Demand

 

[Chinese-Dragon]

China

China’s Manufacturing Gains on Stronger Domestic Demand

Good stuff.

Exports are up, imports are up, manufacturing is up, CNY is at record highs, all great news.

 

[StarCraft_ZT]

Good stuff.

Exports are up, imports are up, manufacturing is up, CNY is at record highs, all great news.

Correct! We could handle it very well and establish a closer relationship with BD.

The article also said The Shanghai Composite Index (SHCOMP) rose 0.1 percent at the 11:30 a.m.. For now, except China, all the stock markets in Asia are experiencing a slump, especially India and Philippines.

·ÆÂɱö¹ÉÊÐÖÜËĵø·ù³¬6%|·ÆÂɱö|¹ÉÊÐ|µø·ù_ÐÂÀ˲ƾ*_ÐÂÀËÍø

Philippines stock market declines 6% on thursday alone.

 

[cirr]

Good stuff.

Exports are up, imports are up, manufacturing is up, CNY is at record highs, all great news.

Yet we have restraining policies in place that regulate and curb the purchases of big items such as cars and properties。

Our bank reserve ratio is sky high at 20%（compared with India’s 3.5%），leaving room for providing ample liquidty。

Our one-year savings rate is well in the excess of the CPI，leaving room for lowering interest rates should the situation requires。

Our CAS is in hundreds of billion of dollars，in stark contrast to India's huge CAD。

Our fiscal debt is minimal。

Our economic rebalancing and restructuring are going according to plan。

Our unemployment rate is at historical lows。As a matter of fact，some enterprises are finding it hard to recruit enough workers。

etc etc

In short，we have all the policy tools to give the economy a shot in the arm if it further slows below 7.5%，and are well placed to benefit from any recovery in the world，especially in the US and the EU。

 

[Fattyacids]

China's manufacturing activity rebounded in August, a preliminary survey by HSBC has indicated, easing fears of a slowdown in its economy.

The bank's Purchasing Managers' Index (PMI), a key gauge of the sector's health, rose to 50.1 from 47.7 in July.

A reading above 50 shows expansion. For the first time in four months, the HSBC reading has passed that point.

China has taken various steps in recent weeks to boost its economic growth - which has slowed for two quarters.

Hongbin Qu, chief China economist at HSBC, said that the rebound in sector was in part due to those measures.

"This is mainly driven by the initial filtering-through of recent fine-tuning measures and companies' restocking activities, despite the continuous external weakness," he said.
'Upside surprises'

The data comes amid fears that China's growth rate - which has declined for two straight quarters - may slow further.

The world's second-biggest economy grew at an annualised rate of 7.5% in the April to June quarter, down from 7.7% in the previous three months.

One of the reasons that has played a key role in the slowdown has been the decline in demand for Chinese exports from key markets such as the US and Europe as those economies grapple with their own set of problems.

Prompted by the slowdown in external demand - Beijing has been trying to boost domestic consumption in an attempt to rebalance its economy and sustain high levels of growth.

From the start of this month, China has suspended the value-added tax and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125).

The cabinet said the move would benefit more than six million small companies and boost the employment and income for millions of people.

Beijing has also said that it will also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises.

Mr Hongbin added that as the impact of these steps starts to filter through even more, the bank expected "some upside surprises to China's growth in the coming months."

source: BBC News - China manufacturing activity sees sharp rebound

No, no this is fake data. China's economy is crashing.

 

[Lightningbolt]

What a contrast between our economy and the collapsing Indian economy.

 

[Chinese-Dragon]

Yet we have restraining policies in place that regulate and curb the purchases of big items such as cars and properties。

Our bank reserve ratio is sky high at 20%（compared with India’s 3.5%），leaving room for providing ample liquidty。

Our one-year savings rate is well in the excess of the CPI，leaving room for lowering interest rates should the situation requires。

Our CAS is in hundreds of billion of dollars，in stark contrast to India's huge CAD。

Our fiscal debt is minimal。

Our economic rebalancing and restructuring are going according to plan。

Our unemployment rate is at historical lows。As a matter of fact，some enterprises are finding it hard to recruit enough workers。

etc etc

In short，we have all the policy tools to give the economy a shot in the arm if it further slows below 7.5%，and are well placed to benefit from any recovery in the world，especially in the US and the EU。

Yes we have a lot of room to further boost our economy if needed.

But I think it is better to keep it constant at 7.5% GDP growth per year, the official target.

It's good to leave ourselves a lot of extra/spare fiscal firepower, in case the world economy takes another dive. We should keep the economy as steady as possible, to give the Chinese people more stability in order to build their businesses and make their own opportunities.

We need 7.5% average growth for the next 10 years, that would be ideal.

 

[shuttler]

超深水海洋钻探平台“希望3号”举行命名仪式
Super Deep sea drilling platform - "Hope No. 3" - naming ceremony
2013年08月19日
August 19, 2013


sohu.com

8月20日在中远船务江苏启东海工基地拍摄的圆筒型超深水海洋钻探平台“希望3号”。当日，由中远船务设计承建的圆筒型超深水海洋钻探平台“希望3号”被正式命名为“SEVAN LOUISIANA”。该平台将用于墨西哥湾的深海油田开釆作业。“希望3号”是中远船务建造的希望号系列海工平台的第三座，平台总高135米，主船体最大直径99米，主甲板高度24.5米，上甲板高度36.5米，钻台高度44.5米，空船重量近3万吨，甲板可变载荷15000吨，作业设计水深3810米，钻井深度12000米。新华社发(丁晓春 &#25668

August 20, 2013 at COSCO Shipyard workers Jiangsu Qidong Tokai cylindrical base shooting ultra-deepwater offshore drilling platform, design & built by COSCO Shipyard cylindrical ultra-deepwater offshore drilling platform, was officially named "SEVAN LOUISIANA". The platform will be used to open the Gulf of Mexico deepwater preclude operation. "SEVAN LOUISIANA" is the third offshore platform of COSCO Shipyard's "Hope" series. The platform total height of 135 meters, maximum diameter of 99 m main hull, main deck height of 24.5 m, height of 36.5 meters on the upper deck, rig floor height 44.5 m, lightship weight of nearly 30,000 tons, a variable deck load of 15,000 tons, job design depth of 3,810 meters and drilling depth of 12,000 meters. (Source: Xinhua News Agency - Ding Xiaochun photo)