China Economy Forum

[GS Zhou]

See what I say yesterday??
@grey boy 2 @long_ @TaiShang @cirr @AndrewJin

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Let's do some crosscheck to test the credibility of the growth rate.

1. Electricity consumption
The electricity consumption of China Q1 to Q3 2016 grows by 4.5%. Considering China's power consumption is even 15% bigger than US, the 4.5% yoy growth is actually a very nice result.

In addition, the economy growth contribution from the service sector is growing more rapidly than the manufacturing sector. That means the electricity reliance is decreasing. For example, to generate 10,000 RMB GDP from steel making and tourism respectively, the electricity required from steel industry is obviously much larger than requirement from tourism.

2. Semi-trailer tractor trucks (半挂牵引车)
Tractor trucks is the core tool to long-haul transportation. The in-flow, or out-flow transportation needs of the manufacturing plants both rely on the support of tractor trucks.

Guess what is the yoy sales growth Q1 to Q3 2016 for tractor trucks sales of China? 31.8%!!! Such "horrible" growth shows the booming of the manufacturing activities throughout China.

3. Passenger car sales
Car sales is a perfect indicator to showcase how the economy is running. Not only because car industry itself is the pillar to the manufacturing sector, but also because car consumption clearly shows the pocket size of the normal people.

Let's look at the passenger car sales in China Q1~Q3, 2016. The car sales in China for the first nine months 2016 stands at 16.2 million units. Guess its growth rate? 17.8%!!

BTW, the car market size of China (19.7 million unis, 2015 sales) is 7.3x of that in India (2.7 million units, 2015 sales). So a 17.8% growth means the incremental volume alone is equivalent to 1.3x of the total size of India.

But that's just the comparison of volume (how many units). If we look at value, the difference is even far larger.
Below is the volume comparison by segment between the two countries:
- A is mini car segment, typical model is Suzuki Alto (奥拓);
- B is small car segment, typical model is Suzuki Swift (雨燕), Chevrolet Sail (赛欧)
- C is compact car segment, typical model is VW Sagitar (速腾), Toyota Corolla (卡罗拉), Chervolet Cruze（科鲁兹）
- D is medium car segment, typical model is VW Passat (帕萨特), Toyota Camry (凯美瑞), Honda Accord (雅阁)
- E&F are larger car segment, like Audi A6, BMW-5 series, Mercedes E-class

Apparently, nearly half of car demand in India comes from the mini cars like Suzuki Alto. But for cars like Alto, they are actually seen like toy cars in China, few people are willing to own them.

 

[bobsm]

China scores WTO victories against some U.S. anti-dumping methods

Wed Oct 19, 2016 | 4:34pm EDT

Cargo containers at the Port of Los Angeles in a file photo. REUTERS/Bob Riha, Jr.

By Tom Miles and David Lawder | GENEVA/WASHINGTON

China won the bulk of a World Trade Organization complaint against certain U.S. methods of determining anti-dumping duties on Chinese products in a WTO dispute panel ruling released on Wednesday.

China brought the complaint in December 2013, one of a string of disputes challenging Washington's way of assessing "dumping," or exporting at unfairly cheap prices.

Specifically, the panel found fault with the U.S. practices of determining dumping margins in certain cases of "targeted dumping," in which foreign firms cut prices on goods aimed at specific U.S. regions, customer groups or time periods.

Dumping is normally found when a foreign producer's U.S. prices are lower than its home market prices for the same or similar goods, or when the imports are sold at prices below production costs.

The panel ruled against the U.S. Commerce Department's practise of "zeroing" in cases involving targeted dumping. In zeroing, the department typically assigns a value of zero any time a producer's export price is above that producer's normal home market price, partly to account for freight and customs charges.

In practice, the zeroing methodology tends to increase the level of U.S. anti-dumping duties on foreign producers.

Some points of China's argument were rejected by the WTO panel, including a claim that the Commerce Department systematically punishes Chinese state enterprise by assigning them high anti-dumping rates.

Either side can appeal the ruling within 60 days.

China's Ministry of Commerce welcomed the ruling saying that the WTO panel had "upheld China's principal claims" on the unlawfulness of targeted dumping and the separate rate applied in certain U.S. anti-dumping measures.

The dispute related to several industries including machinery and electronics, light industry, metals and minerals, with an annual export value of up to $8.4 billion, it said.

"The United States is disappointed by these findings," a spokesman for the U.S. Trade Representative's office said in a statement.

"We will carefully review the report and consider next steps. Nothing in the report will undermine the commitment of the United States to impose antidumping duties to address injurious dumping," the USTR spokesman added.

(Reporting by Tom Miles in Geneva and David Lawder in Washington; editing by Dominic Evans and Alan Crosby)

http://www.reuters.com/article/us-china-usa-wto-idUSKCN12J1RP

 

[艹艹艹]

@GS Zhou
In the course of China's development, Skepticism and collapse theory has never stopped.

 

[Shotgunner51]

http://asia.nikkei.com/Business/Com...-make-cutting-edge-industrial-robots-in-China

October 12, 2016 2:00 am JST

Kawasaki Heavy to make cutting-edge industrial robots in China

The Kawasaki Heavy robots are capable of working alongside personnel on an assembly line.

TOKYO -- Kawasaki Heavy Industries will manufacture collaborative industrial robots in China, aiming to tap strong local demand driven by rising wages and a worker shortage.

The Japanese company owns 51% of a Chinese joint venture that plans to construct a factory in the inland city of Chongqing, looking to start production by year-end. The joint venture partner -- a local manufacturer of conveyor systems -- will pay for the building and some other costs, so Kawasaki Heavy's outlays are expected to be small.

The plant will produce collaborative robots for tasks such as assembly of electronic devices and packing of cosmetics in boxes. These human-friendly robots feature technology that stops movement when sensors detect imminent contact with people. This ability allows automation of just a portion of the work, if desired. For example, on a line that requires 10 personnel, five robots can be installed to handle the work of five employees.

Conventional industrial robots can handle only certain tasks because they need to be separated from workers to prevent injuries caused by collisions. With the new plant, Kawasaki Heavy will become the first Japanese company to manufacture such human-friendly industrial robots in China.

The plant's annual capacity is expected to reach 1,000 units in the first year and rise to 5,000 eventually. Though key components such as bearings and motors will be shipped from Japan, some parts will be procured locally. Each robot is expected to carry a price tag of 2.8 million yen to 3 million yen ($27,000 to $29,000).

Kawasaki Heavy builds some 2,500 collaborative robots a year at its plant in Hyogo Prefecture and ships them worldwide. The new factory will allow robots for the Chinese market to be manufactured locally.

In China, a shortage of factory workers has led the minimum wage to double over the past five years. Demand is growing for robots that help factories automate, with China expected to account for almost 40% of the global total in 2018.

 

[艹艹艹]

RAPOO joins robot manufacturing industry

 

[AndrewJin]

RAPOO joins robot manufacturing industry

View attachment 344932

View attachment 344933

I only know RAPOO produces very good computer/gaming peripherals......

 

[ahojunk]

China's fixed-asset investment grows 8.2% in the first three quarters
2016-10-19 10:35 | Xinhua | Editor: Mo Hong'e

China's fixed-asset investment (FAI) in the first three quarters grew 8.2 percent year on year, slowing by 0.8 percentage points compared with the first two quarters, official data showed on Wednesday.

September FAI growth accelerated to 9 percent year on year, compared with 8.2 percent in August.

Fixed-asset investment includes capital spent on infrastructure, property, machinery and other physical assets.

 

[ahojunk]

China's economy stabilizes with better quality
2016-10-19 10:49 | Xinhua | Editor: Mo Hong'e

China's economy grew 6.7 percent in the third quarter of 2016, holding steady from the second quarter and fueling hopes that the Chinese government will achieve this year's GDP target.

The figure, released by the National Bureau of Statistics (NBS) on Wednesday, remained within the government's targeted range of between 6.5 and 7 percent for 2016.

On a quarterly basis, the economy increased 1.8 percent from the second quarter.

GDP expanded 6.7 percent year on year in the first three quarters of 2016 to reach 52.997 trillion yuan (7.87 trillion U.S. dollars).

NBS spokesperson Sheng Laiyun said China's economy grew steadily with progress made and quality improved, as a result of appropriately expanded aggregate demand, the supply-side structural reform, positive development anticipation and accelerated fostering of new drivers.

Read more: China's property investment growth further accelerates

China's fixed-asset investment grows 8.2% in the first three quarters

China Jan-Sept. retail sales growth accelerates to 10.4 pct

China's industrial output expands 6 pct in Jan.-Sept.

China's fiscal revenue rises 4.9 pct in September

 

[ahojunk]

Steps planned to boost economy in the northeast
2016-10-19 08:42 | China Daily | Editor: Wang Fan

A series of major measures will be adopted in an effort to further revitalize the slowing economy in Northeast China, especially as the region's pillar industries are cutting production capacity and private investment has dropped.

The measures were in two support documents, including the 13th Five-Year Plan for Revitalizing Northeast China, approved by the central government on Tuesday at the second meeting of the Leading Group for Revitalizing Northeast China and Other Old Industrial Bases. The meeting was presided over by Premier Li Keqiang.

The documents aim to boost local economies and private investment in Liaoning, Jilin and Heilongjiang provinces and the eastern part of the Inner Mongolia autonomous region. Details of the documents were not immediately available.

The region was vital to the country's establishment of a complete industrial system, but it has relied on heavy industries such as steel and coal mining, according to the National Bureau of Statistics.

As the country cuts overcapacity in industries that pollute heavily, GDP growth in Liaoning and Heilongjiang during the first eight months has been below the national average.

The National Development and Reform Commission has announced plans for 127 major projects for the region, at a cost of 1.6 trillion yuan ($237.3 billion), to boost local economies.

Premier Li urged local governments to stabilize investment and consumption. The region should also promote the service sector, including tourism and cultural events, to cultivate new areas for growth, he said.

Negative lists for corporate investment and market access will be established in the region, while reforms of State-owned enterprises will be conducted to boost private investment and raise confidence in a vigorous recovery of the local economy, Li added.

To attract and keep private investment, Li also called on local governments to make further efforts to improve the business environment by streamlining administrative procedures and strengthening governmental services.

Private investment in Northeast China has declined sharply, with that in Liaoning decreasing by 58 percent in the first half of the year.

At the meeting, the premier pledged support for resource-exhausted cities to upgrade local economies, and he encouraged the region to cooperate with rapidly growing provinces in southern China.

The region's economic slowdown stems from a worsening business environment and a lack of vitality for enterprises, said Nie Huihua, vice-president of the National Academy of Development and Strategy at Renmin University of China.

 

[艹艹艹]

BUSINESS NEWS|Thu Oct 20, 2016 | 9:29pm EDT
China to invest more than $148 billion in metros by 2020: state media

Workers clean a train car at a maintenance plant for the Kunming Metro, in Kunming, Yunnan province, April 13, 2016.REUTERS/Brenda Goh

China's investment in metro systems is expected to hit more than 1 trillion yuan ($148.28 billion) by 2020, as government planners accelerate approvals for such projects, the state-owned Economic Information Daily reported on Friday.

Since September, Beijing has approved more than 100 billion yuan worth of urban rail transit projects in the cities of Baotou, Urumqi and Xiamen, the newspaper said, adding that other localities were speeding up construction.

About 40 Chinese cities are currently building metro systems and 60 are designing and making plans, according to the China Association of Metros.

The newspaper said that, however, there has been growing concern over such projects' financing models as they tend to bring in low income but require large amounts of investment, and that the National Development and Reform Commission was encouraging governments to attract private funding.

 

[onebyone]

BUSINESS NEWS|Thu Oct 20, 2016 | 9:29pm EDT
China to invest more than $148 billion in metros by 2020: state media

Workers clean a train car at a maintenance plant for the Kunming Metro, in Kunming, Yunnan province, April 13, 2016.REUTERS/Brenda Goh

China's investment in metro systems is expected to hit more than 1 trillion yuan ($148.28 billion) by 2020, as government planners accelerate approvals for such projects, the state-owned Economic Information Daily reported on Friday.

Since September, Beijing has approved more than 100 billion yuan worth of urban rail transit projects in the cities of Baotou, Urumqi and Xiamen, the newspaper said, adding that other localities were speeding up construction.

About 40 Chinese cities are currently building metro systems and 60 are designing and making plans, according to the China Association of Metros.

The newspaper said that, however, there has been growing concern over such projects' financing models as they tend to bring in low income but require large amounts of investment, and that the National Development and Reform Commission was encouraging governments to attract private funding.

 

[grey boy 2]

China lays out plan for agricultural modernization by 2020
(Xinhua) 08:18, October 21, 2016

Villagers work in air drying corns in Qianpo Village of Yiyuan County, East China's Shandong Province, Sept. 22, 2016.[Photo/Xinhua]

BEIJING - China aims to achieve "marked progress" in agricultural modernization by 2020, according to a five-year plan released by the State Council Thursday.

The country will strive to ensure food security, improve the quality and efficiency of farm produce supply, and enhance the sector's international competitiveness by 2020, the plan said.

It also targets all-round moderate prosperity for rural residents, and a beautiful countryside.

Modern agriculture should be established in the country's eastern coastal developed regions, major cities' suburbs, state farms and several demonstration areas, according to the plan.

The plan specified tasks to promote innovation, coordination, green development, opening up and farmers' welfare.

Fourteen key projects will be carried out to attain the plan's goals. They include projects to cultivate high-standard farmland, integrate various sub-industries and ensure farm produce quality.


Fiscal and financial support will be given to the agricultural sector, while better land policies and farm produce market regulations will be introduced, the plan said.
http://en.people.cn/n3/2016/1021/c90000-9130529.html

 

[艹艹艹]

Sixth generation AMOLED production line settled in Guan, plans a total investment of nearly 30 billion
http://finance.ifeng.com/a/20161021/14954199_0.shtml

China officially launched 600 kilometers per hour maglev train research and development

 

[艹艹艹]

http://gree.com/pczwb/xwzx/cms_category_1261/20161015/detail-17491.shtml

 

[grey boy 2]

China's GDP growth steady at 6.7% in first 3 Qs of 2016
2016-10-21 09:47 Globaltimes.cn

http://www.ecns.cn/visual/hd/2016/10-21/108671.shtml