China Economy Forum

[TaiShang]

Vietnam’s trade gap with China tops US$3b
August 18, 2015, Tuesday |

PRINT EDITION

VIETNAM saw a trade deficit of over US$3 billion with China in July, bringing the figure in the first seven months of 2015 to around US$19.3 billion, said Vietnam Customs yesterday.

A report released by Vietnam Customs on its website said the country spent US$4.36 billion importing goods from China, while earning US$1.34 billion from exports there in July.

In the seven-month period, Vietnam’s export and import value with China reached over US$9 billion and US$28.4 billion respectively.

In the January-July period, Vietnam exported 37 groups of items to China. Exports of the computers, electronic products and accessories group earned revenue of US$1.45 billion while the remaining groups earned under US$1 billion in exports, according to the customs.

The spending on imports from China of machines, tools, equipment, accessories totaled US$5.29 billion, while cell phones and accessories amounted to US$3.88 billion and fabrics totaled US$2.98 billion.

***

China's housing market continues to pick up
August 18, 2015, Tuesday |

ONLINE EDITION

China's housing market continued to pick up in July, with new home prices in an increasing number of surveyed cities registering month-on-month rises.

Of 70 large and medium-sized cities surveyed in July, new home prices climbed in 31, up from the 27 in the previous month, while 29 reporting month-on-month price declines, down from June's 34, according to data released on Tuesday by the National Bureau of Statistics.

 

[TaiShang]

China imposes anti-dumping measures on Japanese, U.S. fiber preforms
0
2015-08-19

The Chinese Ministry of Commerce will impose anti-dumping measures on optical fiber preforms after ruling that Japanese and U.S. companies are engaged in dumping.

A probe, launched on March 19 in 2014, found the two countries' dumping activities were damaging the interests of Chinese optical fiber producers, and that there was a causal link between the dumping and the damage caused.

The ministry told domestic importers of fiber optics from the two countries to pay anti-dumping tariffs ranging from 8 percent to 41.7 percent to customs.

The ruling will affect products with Harmonization System Code (HS-Code) 70022010, but exclude those with a diameter smaller than 60 millimeters.

Optical fiber preform is a piece of glass used to make optical fiber.

 

[ahojunk]

China imposes anti-dumping measures on Japanese, U.S. fiber preforms
0
2015-08-19

The Chinese Ministry of Commerce will impose anti-dumping measures on optical fiber preforms after ruling that Japanese and U.S. companies are engaged in dumping.

A probe, launched on March 19 in 2014, found the two countries' dumping activities were damaging the interests of Chinese optical fiber producers, and that there was a causal link between the dumping and the damage caused.

The ministry told domestic importers of fiber optics from the two countries to pay anti-dumping tariffs ranging from 8 percent to 41.7 percent to customs.

The ruling will affect products with Harmonization System Code (HS-Code) 70022010, but exclude those with a diameter smaller than 60 millimeters.

Optical fiber preform is a piece of glass used to make optical fiber.

What?

China is now dishing out the same medicine which was dished out to it previously.

How things have changed.....

 

[jmacmac]

What?

China is now dishing out the same medicine which was dished out to it previously.

How things have changed.....

that just how the game is played, we didn't make the rules

 

[TaiShang]

US 'biased' in investigating Chinese imports
August 19, 2015

China has slammed a U.S. Department of Commerce investigation that believed Chinese state-subsidized plastic resin being imported into the United States.

Shen Danyang, spokesperson for China's Ministry of Commerce, accused the Department of Commerce of using "biased and discriminatory practices" after its preliminary determination that Chinese producers of polyethylene terephthalate imported into the United States had received subsidies of up to 18.88 percent from the Chinese government.

China hopes the final ruling, expected at the end of December, can be made in a "fair and balanced manner," Shen said at a press conference on Wednesday.

He also questioned another U.S. ruling in June that calculated high dumping margins and countervailable subsidies for Chinese tires.

Shen said this probe was also discriminatory and that the decision had greatly damaged the interests of Chinese enterprises. The spokesperson called on the United States to reverse its final ruling in the case to "protect economic relations."

***

China increases tax breaks for small businesses
August 19, 2015

The State Council, China's cabinet, on Wednesday decided to extend tax breaks to more small businesses for their roles in generating jobs and growth.

From Oct. 1, 2015 to the end of 2017, companies with annual taxable income under 300,000 yuan (46,900 U.S. dollars) will have their corporate tax halved, said a statement released after a meeting chaired by Premier Li Keqiang. Previously, the threshold was 200,000 yuan.

The meeting also extended tax breaks for companies with a monthly revenue of 20,000 to 30,000 yuan from the end of 2015 to the end of 2017. They will be exempted from value-added tax and business tax.

The move is the latest attempt to help small businesses, as they provide nearly 80 percent of urban jobs.

In the first six months, about 2.39 million small and micro enterprises in China paid reduced taxes, savings them about 8.6 billion yuan, according to figures from the State Administration of Taxation.

 

[Jlaw]

US 'biased' in investigating Chinese imports
August 19, 2015

China has slammed a U.S. Department of Commerce investigation that believed Chinese state-subsidized plastic resin being imported into the United States.

Shen Danyang, spokesperson for China's Ministry of Commerce, accused the Department of Commerce of using "biased and discriminatory practices" after its preliminary determination that Chinese producers of polyethylene terephthalate imported into the United States had received subsidies of up to 18.88 percent from the Chinese government.

China hopes the final ruling, expected at the end of December, can be made in a "fair and balanced manner," Shen said at a press conference on Wednesday.

He also questioned another U.S. ruling in June that calculated high dumping margins and countervailable subsidies for Chinese tires.

Shen said this probe was also discriminatory and that the decision had greatly damaged the interests of Chinese enterprises. The spokesperson called on the United States to reverse its final ruling in the case to "protect economic relations."

***

China increases tax breaks for small businesses
August 19, 2015

The State Council, China's cabinet, on Wednesday decided to extend tax breaks to more small businesses for their roles in generating jobs and growth.

From Oct. 1, 2015 to the end of 2017, companies with annual taxable income under 300,000 yuan (46,900 U.S. dollars) will have their corporate tax halved, said a statement released after a meeting chaired by Premier Li Keqiang. Previously, the threshold was 200,000 yuan.

The meeting also extended tax breaks for companies with a monthly revenue of 20,000 to 30,000 yuan from the end of 2015 to the end of 2017. They will be exempted from value-added tax and business tax.

The move is the latest attempt to help small businesses, as they provide nearly 80 percent of urban jobs.

In the first six months, about 2.39 million small and micro enterprises in China paid reduced taxes, savings them about 8.6 billion yuan, according to figures from the State Administration of Taxation.

Shen need not get upset. Just ask Chinese government to reciprocate the love.

 

[cirr]

Coca-Cola to invest $4 billion in China

Friday, 21 August 2015 - 8:33pm IST | Place: Beijing | Agency: PTI

By 2017, the new 50,000-square metre plant will have four production lines, adding 100 million unit cases to annual production in China。

Coca Cola

Coca-Cola will invest $4 billion in China over the next three years, its CEO Muhtar Kent on Friday announced at the site of a new plant in the soft drink giant's third largest market.

The new round of investment follows 9 billion dollars by the company between 1979 and 2014.

"China is our third largest market by volume and is critically important to the future growth of our business," said Kent.

At a cost of $56 million, the new Huabei plant, located in Xianghe county in northern Hebei province, will feature nine production lines, and produce a total of 250 million unit cases annually, Kent said.

By 2017, the new 50,000-square metre plant will have four production lines, adding 100 million unit cases to annual production in China.

Following the groundbreaking of a new plant in central China two weeks ago, the Huabei plant is the second Coca-Cola plant to be built under the new investment plan, state-run Xinhua news agency reported.

"We are committed to investing and growing here. Apart from infrastructure and system development, the new round of investment will focus on enhancing consumer experiences through marketing and (projects with) our loyal retail partners," Kent said.

In addition, Coca-Cola's local bottling partners - COFCO Coca-Cola Beverages, Swire Beverages and Coca-Cola Bottling Investments Group China - will also invest in local infrastructure and growth drivers, including new investments in production, distribution and marketing.

Coca-Cola's sales volume has continued to grow in China, up by 6 per cent in the second quarter of 2015 over the same period last year.

Coca-Cola to invest $4 billion in China | Latest News & Updates at Daily News & Analysis

 

[LowPost]

Michael Bloomberg upbeat about Chinese economy despite fluctuations

BEIJING, Aug. 25 (Xinhua) -- Weak economic figures, a plunging stock market and the depreciating Chinese yuan have raised concerns globally about China's economy, but Michael Bloomberg doesn't seem worried.


Bloomberg, founder of Bloomberg L.P. and former New York City mayor, had an unusual reason for his optimism: the many smiling faces in Chinese cities.

"One of the things I do when I'm in a city outside of New York (is that) I always look out of the car windows to see if the people walking down the streets are smiling," he said.

"You see a lot of smiling faces here. Very few people are dour and look depressed. Most people here are happy, gung-ho. They have an enthusiasm," Bloomberg told Xinhua in a recent interview in Beijing.

China's economy has slowed significantly in the past two years to what is officially called the "new normal." Annual growth rates have fallen from 10 percent to the current 7 percent.

Adding to that pressure is a stock market rout, with the key Shanghai market index falling more than 38 percent from its peak of 5,178 points in June to 3,210 at close on Monday, and a sudden depreciation of the yuan in mid-August.

"I suppose it's normal that people will look at it and say, 'Oh, is this the beginning of the end?' or 'Is this the beginning of a bull market?'" Bloomberg said.

He said that in the longer term, China's economy is still growing, and small fluctuations are natural, given the impressive progress and length of growth.

"China is a civilization with 5,000 years of history and you're worried about two months? Seriously, you can't worry about the short term," he said.

Bloomberg said that there is still enormous potential in China for a number of reasons, including a population of 1.3 billion, a huge amount of resources, educated workers, and a strong work ethic.

Michael Bloomberg upbeat about Chinese economy despite fluctuations
- Xinhua | English.news.cn

 

[Hamartia Antidote]

Acer founder says open to takeover amid stock price slide| Reuters

Acer Inc founder Stan Shih said he would welcome a takeover of the struggling Taiwanese computer maker after a steep fall in its share price, while warning any potential buyer would pay a heavy price.

"Welcome," Shih told reporters in response to a question about whether Acer would be open to a takeover. He added however that any buyer would get an "empty shell" and would pay dearly.

"U.S. and European management teams usually are concerned about money, their CEOs only work for money. But Taiwanese are more concerned about a sense of mission and emotional factors," he said.

His remarks were first reported by Taiwanese media on Thursday and were confirmed by a company spokesman.

Acer has reported steep on-year sales falls in recent months, including a 33 percent drop in July.

It suffered a T$2.89 billion ($90 million) loss in the first six months of 2015, versus a slight profit in the same period last year. It booked losses for all of 2011, 2012 and 2013 amid cratering PC sales.

 

[IR-TR]

Lenovo might still want to grow a bit more? One company two systems

 

[xunzi]

It's no surprise. Lenovo X1 Carbon is simply the best PC laptop period. Acer is bound to fail as there are too many competitions and their computer business is 2nd rate along with Toshiba, Sony nowadays.

 

[Martian2]

China's 2014 nominal GDP was $10.4 trillion. Once China moves from the old SNA 1993 to the SNA 2008 accounting standard, the Rhodium Group estimates China's nominal GDP will increase by 13.2% to 16.3%. This would mean an increase of $1.3 to $1.6 trillion in China's nominal GDP.

SNA 2008 should increase China's 2008 nominal GDP by 13.2% to 16.3%

There are two revisions.

The first one is minor, which added $308 billion (3.4% of GDP). The upward revision was due to a 2013 national economic census, which provided better data.

A Better Abacus for China | Rhodium Group

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We are waiting for the big one; the SNA (System of National Accounts) 2008 accounting standard with 17 chapters.

China is currently using the old 1993 SNA accounting standard to determine its nominal GDP.

The citation below estimates the upcoming SNA 2008 accounting standard update should add 13.2% to 16.3% onto China's 2008 GDP. The range of estimate is due to uncertainty over the size of China's R&D budget.

A Better Abacus for China | Rhodium Group

----------

Additional References.

China's revised nominal GDP for 2015 should be about $13.3 trillion

China is updating its GDP methodology to a more recent version. It affects the way services is counted and other issues. The net effect is a Chinese nominal GDP of around $13.3 trillion for 2015. The revision is supposed to happen sometime this year.

Reference: Next Big Future: China will pass Europe in nominal GDP this year
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China is moving to the SNA (ie. System of National Accounts) 2008 international accounting standard.

Reference: China Economic Watch | China's New GDP Measurement: Impact on Growth, Income, and Productivity

 

[XiaoYaoZi]

装穷是门技术活。

 

[empirefighter]

Impossible，the prediction number is too high，and the government has already told pubic they will not make adjustment of all items ，that means they will not follow the SNA2008 fully，so the final numbe maybe about 0.5-0.8trillion.

 

[cirr]

Under-reporting economic output is an art that is only mastered and practiced by countries of ancient history、culture and civilization。

It therefore comes as a huge surprise that India，being one of only a few befitting the title of “ancient civilization”，has adopted SNA 2008 as the basis for calculating its GDP at earliest time possible。