Companies
Economic momentum maintained
Encouraging signs as results exceed expectations in several main indicators
China continued its economic impetus last month, with better-than-expected results recorded in several major indicators, according to government data.
Analysts said the economy appears to be stabilizing, despite the fragile global market and problems remaining with domestic development.
The industrial sector continued the trend seen in July, with year-on-year growth climbing to 6.3 percent in August, a month-on-month increase of 0.3 percentage points. This was the fastest growth in five months, the National Bureau of Statistics said on Tuesday.
The market had expected industrial growth to expand by 6.1 percent, according to a Reuters poll.
Forecasts exceeded
Retail sales growth rose to 10.6 percent in August, compared with 10.2 percent in July, while fixed-asset investment grew 8.2 percent year-on-year in August, up by 4.3 percentage points from the previous month, according to the bureau.
Sheng Laiyun, spokesman for the bureau, said at a news conference: “On the whole, there have been positive changes in the national economy, with main indicators picking up, structural reform deepening and growth of new sectors accelerating. The over-all trend of economic growth stabilizing this year has continued (in August).”
Sheng said considerable headway has been made in structural reform. For example, steel industry stocks fell by 12.2 percent year-on-year in the first eight months, and the asset liability ratio of major industrial enterprises fell to 56.4 percent by the end of July, a 0.6 percentage point drop from a year ago.
Output of high-tech industries grew by 11.8 percent in August, higher than overall industrial output growth, while sales in emerging industries, such as online medical services and online education, saw fast growth.
Liu Dongliang, an economist at China Merchants Bank, said, “The August data beat market expectations, indicating that…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
(more…)Companies
Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
(more…)Companies
Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
(more…)- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
- Is journalist Vicky Xu preparing to return to China?
- Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
- China Unveils Plan to Upgrade Industrial Equipment
- China deepens engagement with new Indonesian president as top diplomat visits Jakarta
