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China Economy Forum

ZTE sees profits ramp up in 2017
By Ma Si | chinadaily.com.cn | Updated: 2017-07-20 09:27

ZTE Corp, a major telecom equipment market in China, posted a near 30 percent jump in profits during the first half of the year, on the back of rapid growth in network infrastructure and mobile device business.

The Hong Kong-listed company said on Tuesday based on preliminary figures, its profits for the first six months increased 29.9 percent year-on-year to 2.29 billion yuan ($339 million).

Its revenue jumped about 13 percent to 54 billion yuan.

ZTE attributed this surge to growth in operations, including wireless network, wireline network, and handsets with improvements in gross profit margins.

The company said its smartphone business is booming, as it ramps up efforts to explore overseas markets. Unlike most Chinese smartphone vendors which have limited presence in the United States, ZTE is very popular.

ZTE said last month it would invest 2 billion yuan ($294.8 million) in 5G research and development every year, in a move to gain a lead in the next-generation mobile communication technology.

http://www.chinadaily.com.cn/business/2017-07/20/content_30181781.htm

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July 24, 2017 / 4:14 PM / 10 hours ago
IMF could be based in Beijing in a decade: Lagarde

WASHINGTON (Reuters) - The International Monetary Fund could be based in Beijing in a decade if growth trends for China and other big emerging markets continue and these are reflected in the Fund's voting structure, IMF Managing Director Christine Lagarde said on Monday.

Lagarde said at a Center for Global Development event in Washington that such a move was "a possibility" because the Fund will need to increase the representation of major emerging markets as their economies grow larger and more influential.

"Which might very well mean, that if we have this conversation in 10 years' time...we might not be sitting in Washington, D.C. We'll do it in our Beijing head office," Lagarde said.

She added that the IMF's bylaws call for the institution's head office to be located in the largest member economy.

Since the IMF was launched in 1945, that has always been the United States, which currently has an effective veto over IMF decisions with a 16.5 percent share of its board votes.

But economists estimate that China, with growth rates forecast above 6 percent, will likely overtake U.S. gross domestic product sometime over the next decade to become the world's largest economy in nominal terms. Some, including the IMF, have argued that China already contributes more to global growth on a purchasing power parity basis, which adjusts for differences in prices.

The IMF last revised its quota system, or voting structure in 2010, but is set to launch another review next year.

Reporting by David Lawder; Editing by David Gregorio


IMF could be based in Beijing in a decade: Lagarde | Reuters
 
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China's 37th nuclear reactor online (Fuqing Unit 4 at 1 GigaWatt)

China just connected its 37th nuclear reactor to the power grid. The Fuqing Unit 4 nuclear reactor has a net power output of 1.087 GigaWatts and is based on the CPR-1000 nuclear reactor design. "CPR" is an acronym for Chinese Pressurized-water Reactor.

Nuclear reactors are important, because they provide an independent source of electricity. Unlike nuclear, oil-based or LNG-based electricity-generation is susceptible to energy embargoes. In contrast, nuclear-supplied electricity lasts for decades with stockpiled uranium.
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Fuqing Unit 4 joins power grid | CNNC

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CNNC Connects Fuqing Unit 4 To Grid | NuclearStreet

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China's consumer inflation muted, economy solid

2017-08-10 08:51

Xinhua Editor: Gu Liping

China's consumer and factory-gate inflation held steady in July as the world's second-largest economy stayed on track for solid growth.

The consumer price index (CPI), a main gauge of inflation, rose 1.4 percent year on year in July, the National Bureau of Statistics (NBS) said Wednesday.

It was slightly down from June's 1.5 percent. On a month-on-month basis, the index was up 0.1 percent, according to the bureau.

Food prices, the biggest component of the CPI, were down 0.1 percent, dragging down the growth rate of the index by 0.02 percentage points, the NBS said.

Vegetable prices surged 7 percent after declining for five straight months as a scorching summer and heavy rain restricted output. Fruit prices shed 9.2 percent due to oversupply. Pork prices declined 0.7 percent as consumption fell in summer.

Year on year, food prices dropped 1.1 percent in July while non-food prices rose 2 percent.

Excluding volatile food and energy prices, the core CPI increased 2.1 percent year on year in July.

In the first seven months, the CPI rose 1.4 percent year on year.

China's producer price index (PPI), which measures costs for goods at the factory gate, rose 5.5 percent year on year in July, according to the NBS.

It was unchanged from the previous two months. On a month-on-month basis, the index was up 0.2 percent.

Factory-gate prices rose in the ferrous metal mining and non-ferrous metal smelting industries, which widened to 2.7 percent and 1.5 percent from a month earlier, respectively, said NBS senior statistician Sheng Guoqing.

Meanwhile, prices in the oil and gas extraction and refining industries dropped 5.3 percent and 3 percent month on month, respectively.

China's PPI has remained in positive territory since September, when it ended a four-year streak of declines, partly due to the government's successful campaign to cut industrial overcapacity, which benefited the wider economy.

Analysts estimate consumer inflation will remain muted for the whole year.

Wen Bin, chief researcher with China Mingsheng Bank, said that with holidays approaching, food prices are expected to rebound on rising consumption. The overall pace will be mild.

China reported 6.9-percent GDP growth for the first half of 2017, exceeding the 6.7-percent rise in 2016 and beating expectations.

The country's manufacturing purchasing managers' index (PMI) came in at 51.4 in July, down from 51.7 in June. The non-manufacturing PMI came in at 54.5 in July, down from 54.9 in June.

It was explained by economists as a normal fluctuation and did not tell much about the cyclical trend of China's economy. The positive economic outlook remained unchanged.

Taming inflation leaves the central bank leeway to stay composed in raising interest rates. China's monetary policy in 2017 is set to be "prudent and neutral" to keep appropriate liquidity levels and avoid large injections.

Over the past year, the bank has steered clear of interest rate cuts and avoided tinkering with reserve requirement ratios while adopting an expanded range of tools, such as reverse repos and lending facilities, for more nimble maneuvering.

http://www.ecns.cn/business/2017/08-10/268742.shtml
 
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China's Economic Outlook in Six Charts
China continues to enjoy strong growth—projected at 6.7 percent for 2017. And the country has potential to sustain strong growth over the medium term. But to do so safely requires speeding up reforms to make growth less reliant on debt and investment, the IMF said in its latest annual assessment of the economy.
Here are the six things you need to know about this report.
  • IMF staff have revised up China’s growth outlook compared to last year’s report. Growth between 2017 and 2021 for the world’s second largest economy is now expected to average 6.4 percent, compared to 6.0 percent last year.
    eng-aug-7-china-1.ashx

  • But at a cost of higher debt, which leads to rising risks. According to the IMF’s report, total non-financial sector debt—which includes household, corporate and government debt—is expected to continue to rise strongly, reaching almost 300 percent of GDP by 2022, up from 242 percent in 2016. This raises concerns for a possible sharp decline in growth in the medium term.
    eng-aug-7-china-2.ashx
  • Given strong growth momentum, now is the time to intensify deleveraging efforts. The Chinese government has started to take important initial steps to facilitate private sector deleveraging—credit growth is slowing and the large “credit gap” is narrowing. These efforts should intensify, with the overarching priority being to focus more on the quality and sustainability of growth, and less on quantitative targets.
    eng-aug-7-china-3.ashx
  • To grow strongly, but also sustainably, China needs to boost consumption. At 46 percent of GDP, China’s national savings are 26 percentage points higher than the global average, largely due to the household sector, with consumption correspondingly low. This reduces the current welfare of Chinese citizens, fosters high levels of investment which are unlikely to be absorbed efficiently, and, were investment to fall, would lead to even larger current account surpluses, worsening global imbalances.
    eng-aug-7-china-4.ashx

  • Social spending in China is on the rise, but more can be done. Increasing government spending on health and pensions would increase government consumption, but also private consumption by reducing households’ need to save. Increasing the progressivity of the tax system could finance higher social spending and reduce income inequality, which is among the highest in the world.
    eng-aug-7-china-5.ashx

  • China also needs to increase productivity. This can be done by making better use of resources that are currently going to loss-making (“zombie”) companies, overcapacity industries, and State-Owned Enterprises (SOEs). The IMF estimates that such efforts could increase the contribution of productivity to growth by about 1 percentage point over the long term.
    eng-aug-7-china-6.ashx


    http://www.imf.org/en/News/Articles/2017/08/09/NA081517-China-Economic-Outlook-in-Six-Charts

State support has a downside for China’s tech titans
Are China’s internet titans about to conquer the world? Listen to the talk in Beijing and in some circles in the west and the triumph of Chinese tech is all but certain. At the very least it will compete on an equal footing with the world-beating incumbents headquartered in Silicon Valley. Take Richard Liu. The founder and chief executive of JD.com, China’s second-largest e-commerce company and the world’s third-largest internet company by revenue, believes his business and competitors such as Alibaba, Tencent and Baidu will one day pose a serious challenge to the likes of Google, Facebook and Amazon — but not for at least another decade. Instrumental in this is the support of the Chinese state. To a greater or lesser extent, all of China’s big and successful internet companies have benefited from the communist party’s efforts to exclude Silicon Valley’s finest. Facebook, Google, Twitter, Instagram and YouTube are all blocked in China. On top of that, the government has announced plans to shut down all non-official virtual private network services that allow paying customers to circumvent the “great firewall” censorship system and access overseas websites. Beijing claims foreign websites must be blocked under censorship and “national security” laws but the bans are effectively non-tariff trade barriers that potentially violate World Trade Organisation rules. The results in commercial terms for the companies have been outstanding, as shown until recently by the performance of Baidu, China’s most protected internet champion. The company, often referred to as the “Google of China”, was the direct and immediate beneficiary of Beijing’s decision to block Google in 2010 after the US group refused to censor its search results. In the absence of serious international competition, China’s internet companies have been left to capitalise on the emergence of the world’s largest online market. The number of internet users in China has doubled since 2010 to reach 750m today, according to official government figures. The growth of e-commerce has been especially impressive — China is by far the largest online retail market in the world, accounting for nearly 40 per cent of all online sales globally. Transactions through Alibaba’s online platforms alone totalled $500bn last year, equal to the gross domestic product of Argentina and more than the combined transactions of Amazon and eBay. Yet state protection brings downsides that may end up harming the companies it seeks to help. In a recent interview Mr Liu said the fact that the Beijing government blocks most major US internet companies from its enormous market stops Chinese enterprises from being truly competitive. “It’s like people — if you are put into a big sterile box on the day you are born and not exposed to any microbes or diseases and only given purified air and water then when you come out you will get sick very soon,” he noted morbidly. “You will die very soon out in nature.” Success within the state-censored ‘intranet’ of China has made some of the sector’s champions arrogant, complacent and liable to spend on acquisitions abroad Baidu is a case in point. Despite, or perhaps because of, its privileged position as the dominant search engine in China since the decision to block Google, it is flailing. Its market capitalisation is just one-fifth that of Alibaba and Tencent and its growth has been subdued. It appears to be ailing even before it is let out of the sterile box. Success within the state-censored “intranet” of China has also made some of the sector’s champions arrogant, complacent and liable to hugely overspend on acquisitions abroad. Yes, some of the services they provide within China are impressive. Tencent’s WeChat messenger app is better than most similar services, widespread adoption of online payment systems are moving China towards a cashless society and e-commerce delivery services are exceptionally reliable and fast. But none of these services are unique or “game-changers” and there is no way the Chinese companies can replicate their domestic prowess or scale outside the walled garden of China’s internet. At home their services are grafted on to the state-owned banking and logistics industries. They also receive preferential regulatory treatment in the form of cheap loans and land from a party-state that relies heavily on them for tax revenues, employment growth and online surveillance of citizens. Even in Hong Kong, which maintains a largely separate political and legal system from the rest of China, these companies have failed to make real inroads even though several of their founders and top executives live in the city most of the time. Residents overwhelmingly prefer WhatsApp to WeChat and almost nobody does their shopping through Alibaba or JD.com. An international advertising campaign for WeChat featuring star footballer Lionel Messi a few years ago turned out to be an expensive flop. Today, Tencent and its competitors are expanding into markets in Southeast Asia and eastern Europe that they think will be easier to crack. There are sure to be many more embarrassing failures as the Chinese internet titans attempt to emerge from their sterile, state-protected box.
https://www.ft.com/content/76bece9a-81a1-11e7-a4ce-15b2513cb3ff

China replaces Japan as largest US bond holder in June
China surpassed Japan as the largest holder of U.S. Treasury securities in June for the first time in nine months, according to U.S. government data released Tuesday.

China's holdings of U.S. debt totaled $1,146.5 billion as of the end of June, up $44.3 billion from a month earlier. The tally compared to Japan's $1,090.8 billion, down $20.5 billion, the Treasury Department said.

Ireland came third with $302.5 billion and Brazil was fourth with $269.7 billion. Cayman Islands followed with $254.0 billion, it said.

Japan had been the largest U.S. debt holder since October last year when it outpaced China.

China reduced its Treasury securities holdings sharply in October and November last year as it conducted dollar-selling, yuan-buying interventions to shore up the value of the Chinese currency, also known as the renminbi.

However, Beijing has gradually picked up its purchases of Treasury securities.

Similarly, China's foreign exchange reserves totaled $3,080.7 billion as of the end of July, up $23.9 billion from a month earlier for the sixth straight month of increase, according to Chinese central bank data released earlier this month.

https://mainichi.jp/english/articles/20170816/p2g/00m/0bu/072000c

China reclaims position as world's largest holder of U.S. treasuries
China reclaimed its position as the world's largest holder of U.S. Treasury securities in June after nine months, the latest data from the U.S. Treasury Department showed on Tuesday.

China's holdings of U.S. treasuries increased by 44.3 billion U.S. dollars in June, the fifth consecutive monthly rise, with the total holdings up to 1.1465 trillion dollars.

Japan, which overtook China as the largest holder of U.S. treasuries last October, cut its holdings by 20.5 billion dollars to 1.0908 trillion dollars in June.

By the end of June, the overall foreign holdings of U.S. Treasury securities rose to 6.1713 trillion dollars from 6.1236 trillion dollars in the previous month.

The rise of China's holdings of U.S. treasuries comes as pressure from China's capital outflows eased and the Chinese currency renminbi strengthened.

China's foreign exchange reserves rose for a sixth consecutive month in July, reaching 3.081 trillion dollars, according to the People's Bank of China.
http://english.cctv.com/2017/08/16/ARTILosEdvuEsjJTzP9ETaAk170816.shtml
 
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China installs more robots than any other nation | Bloomberg

In the first chart below, Bloomberg shows China installed 90,000 new industrial robots last year. In contrast, all of North America (ie. United States, Canada, and Mexico) collectively installed less than 40,000 new industrial robots.
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China’s Robot Revolution May Affect the Global Economy

"China is installing more robots than any other nation, and that may affect every other nation.

Shipments jumped 27 percent to about 90,000 units last year, a single-country record and almost a third of the global total, and will nearly double to 160,000 in 2019, the International Federation of Robotics estimates."


qE3uhXL.jpg
 
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Large gas field discovered in north China
Source: Xinhua| 2017-08-24 14:59:39|Editor: Yang Yi



TAIYUAN, Aug. 24 (Xinhua) -- North China's Shanxi Province has discovered a large gas field with an estimated reserve of 545.6 billion cubic meters.

Shanxi is a major coal producer and has the country's second-largest known coal reserve. It also has estimated coal-bed gas and shale gas reserves of 12.7 trillion cubic meters.

Authorities discovered a large coal field in the area bordering Yushe, Zuoquan and Wuxiang counties in 2006. Further exploration found it contained high levels of gas.

Since exploration started in 2015, the field has been estimated to contain 241.5 billion cubic meters of coal-bed gas and 304.1 billion cubic meters of shale gas, said Zhou Jipeng, deputy director of the provincial land and resources department.

Shanxi is speeding up gas exploration while reducing coal output as China seeks to power its economy with cleaner energy to reduce pollution.
 
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China is the world's largest operator of Industrial Robots | Financial Review

From the Financial Review article (fifth paragraph): "New figures from the International Federation of Robotics show China overtook Japan last year to be the world's biggest operator of industrial robots, after annual sales reached the highest level ever recorded by a single country."
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China's robot revolution has foreign firms on edge | Financial Review

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July 24, 2017 / 4:14 PM / 10 hours ago
IMF could be based in Beijing in a decade: Lagarde

WASHINGTON (Reuters) - The International Monetary Fund could be based in Beijing in a decade if growth trends for China and other big emerging markets continue and these are reflected in the Fund's voting structure, IMF Managing Director Christine Lagarde said on Monday.

Lagarde said at a Center for Global Development event in Washington that such a move was "a possibility" because the Fund will need to increase the representation of major emerging markets as their economies grow larger and more influential.

"Which might very well mean, that if we have this conversation in 10 years' time...we might not be sitting in Washington, D.C. We'll do it in our Beijing head office," Lagarde said.

She added that the IMF's bylaws call for the institution's head office to be located in the largest member economy.

Since the IMF was launched in 1945, that has always been the United States, which currently has an effective veto over IMF decisions with a 16.5 percent share of its board votes.

But economists estimate that China, with growth rates forecast above 6 percent, will likely overtake U.S. gross domestic product sometime over the next decade to become the world's largest economy in nominal terms. Some, including the IMF, have argued that China already contributes more to global growth on a purchasing power parity basis, which adjusts for differences in prices.

The IMF last revised its quota system, or voting structure in 2010, but is set to launch another review next year.

Reporting by David Lawder; Editing by David Gregorio


IMF could be based in Beijing in a decade: Lagarde | Reuters
Hope not. Just a dirty trick to infiltrate Chinese banking system
 
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India should refrain from abusing trade remedy measures: MOFCOM
India should refrain from abusing trade remedy measures and should carry out trade investigations in line with relevant WTO rules, Gao Feng, the spokesperson for the Ministry of Commerce (MOFOM), told a press briefing in Beijing on Thursday.

In recent months, anti-dumping investigations launched by India against China have been on the rise. A total of 13 anti-dumping investigations have been initiated against Chinese products in 2017 so far, according to Gao, and since 1994, there have been a total of 212 cases.

As one example, India announced on Monday that it would impose anti-dumping duties of up to $136.21 per ton on Chinese imports of tempered glass, a material mostly used to protect touch screen mobile devices, the Economic Times reported.

"China has paid high attention to the increasing number of trade investigations launched by India. We urge India to use trade remedy measures in a cautious and restricted manner so as to avoid any negative influence on bilateral trade relationships," Gao noted.

He also stressed that China is resolute in protecting the legal rights and interests of Chinese enterprises and will encourage and support the investigated firms to actively participate in the work involving responses to prosecutions.

As BRICS nations and major developing countries, China and India should join hands to maintain a free and open multilateral trade system as well as serve as stabilizers for global economic development, Gao added.

"Dialogue and negotiation is the only effective mechanism in solving trade friction, and China is willing to work with India to establish such a platform," Gao said, noting that through cooperation, the two sides can achieve mutual benefits.

At the briefing, Gao also urged India to strictly follow international standards on foreign investment and avoid setting "discriminatory" entrance conditions targeting Chinese firms.

India is now tightening the rules for Chinese companies entering into its power transmission sector and stringently checking on both power and telecoms equipment for malware, Reuters reported on August 17.

"In fact, India's economy has maintained a robust growth rate, partly thanks to mounting foreign investment… So we believe that the Indian government is willing to create a fair, transparent and convenient investment environment for foreign investors, including for Chinese firms," Gao noted.
http://www.globaltimes.cn/content/1062943.shtml
 
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China becomes world’s top three shale gas producer

August 29, 2017

China has become the world’s third largest shale gas producer after the U.S. and Canada, delivering an output of 7.88 billion cubic meters in 2016, according to a recent press conference of the Ministry of Land and Resources.

The Fuling shale gas field, located in southwest China’s Chongqing municipality, has a proven reserve of 600.8 billion cubic meters, the world’s second largest shale gas field after the U.S. The gas field aims to raise its annual shale gas output to 10 billion cubic meters by the end of this year.

In the future, China is likely to build two shale gas bases, one in the southwestern city of Zunyi in Guizhou province and the other in Yichang City in Hubei province.

Shale gas is natural gas that provides a new clean energy source. In 2011, the State Council of China categorized shale gas as the country’s 172nd mineral asset and started to manage the gas as an independent mineral resource. The U.S. started to explore shale gas in the 1980s.


FOREIGN201708291724000549937745759.jpg

▲ Shale gas is natural gas that provides a new clean energy source

http://en.people.cn/n3/2017/0829/c90000-9261848.html

Energy based on combustion of hydrocarbons that produces CO2 greenhouse gas can never be called "clean". :crazy:
 
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Five things you may not know North Korea has imported from China

UPDATED : Saturday, 02 September, 2017, 2:00pm

China is widely known as North Korea’s primary trading partner – a status it attained as the Land of the Morning Calm increasingly opened itself to the world.

Although China has agreed to stop buying North Korean iron, lead and coal as part of UN-approved sanctions last month, North Korea continues to be a major importer of Chinese goods. Imports from China represented 85 per cent of North Korea’s overall US$3.47 billion in imports in 2015, according to the Observatory of Economic Complexity, a US-based trade monitor.

A South China Morning Post examination of North Korea’s imports from China from the start of 2016 through mid-2017, showed that its importing of five rarely discussed items – out of more than 800 categories of imported goods – is about much more than mere survival.

(1) Gaming equipment

North Korea announced through its state-run media outlet Arirang Meari last week that the country’s new shooting simulation video game – in which US soldiers are the enemy – has “become very popular”.

The video game “Hunting Yankee” was the latest used by Pyongyang as to cultivate patriotism, which followed the war-themed games “Confrontation War,” “Guardian” and “Goguryeo Battlefield”, also released earlier this month.

It was unclear whether these games were designed to be played on computers or phones. Given that most North Koreans do not own their own computers for personal home use, the importing of “video game controllers and gaming equipment inside indoor entertainment venues” from China could offer a glimpse into the closed country’s gaming and entertainment culture.

North Korea has spent over US$2 million on purchases of entertainment items under this category in the past 1.5 years. This grouping includes not only hand-held game consoles but also pool tables, dice and card games and coin operated electronic game machines, according to Chinese customs data.

The quantity of imports in this category, however, is in sharp decline as the number fell from 7 million pieces in the first quarter of 2016 to just above half a million pieces in the latest quarter of 2017.

(2) Surveillance cameras

The world was taken by surprise when it first learnt that North Korea had bought 85,570 surveillance cameras from China from 2009 to 2011, according to South Korea’s Chosun newspaper. But it will now come as no surprise to observers that North Korea imported nearly 20 times that number in the 1.5 years to mid-2017, reflecting a trend toward tighter monitoring of activity within the country.

A total of 1,669,725 units were recorded under the “surveillance cameras, projectors and TV antennas” group of Chinese exports to North Korea. No breakdown was provided that would show how many of those items were surveillance cameras.

(3) Telephones

In case surveillance cameras are not sufficiently effective in monitoring North Koreans, analysts believe Pyongyang has increased imports of phones to increase ways of spying on people.

In the past year, a growing trend has been observed in the country’s imports under the category of “telephones, including those for cellular networks or for other wireless network” – meaning both corded and mobile phone devices.

North Korea imported 144,891 units of Chinese phones in the first quarter of 2016, but the number recorded in the past three quarters was kept at more than 400,000. Pyongyang bought 426,500 Chinese phones from April to June this year.

Phones may be used for more than communication. By giving citizens new networked technologies like mobile phones and tablets, the government is able to automatically censor unsanctioned content and observe everything citizens are doing on their devices remotely.

(4) Amusement park amenities

At least six known amusement parks reported opening in North Korea between the 1970s and 2012.

North Korea acquired “merry-go-rounds, swings, target boards for shooting, and other playground amenities” in the second and third quarter of 2016 and in the second quarter of 2017, according to the customs data.

It was unclear whether these new imports would go to old parks or be placed at new ones, but North Korea’s parks are built primarily for tourists, and reveals its ambitions of developing its tourism industry.

North Korea aimed to have the number of incoming visitors hit one million by the end of this year, although South Korean sources have estimated that 100,000 tourists visited the North in 2015, with 90 per cent being Chinese. Traditionally, only a few thousand Western tourists were understood to be visiting Kim Jong Un's Juche Korea.

(5) Musical instruments

North Koreans’ love for music seemed to have remain undimmed regardless of the turning of political tides as imports of musical instruments from China have been on increase in the past nine months.

There are seven music-related categories on the long list of Chinese imports in North Korea: “piano and other keyboard instruments; string instruments such as harp, violin and guitar; wind instruments; percussion; electronic instruments such as electronic guitar and keyboard; music boxes, fairground organs and accordions; and small parts of music instruments”.

The category seeing the greatest number of imports among musical instruments was “music boxes, fairground organs and accordions”, with 68,670 products being imported from China to North Korea in 1.5 years. In contrast, just 300 wind instruments and 503 pianos were sent into the country in the same period.

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▲ Little known North Korean imports from China

http://www.scmp.com/news/china/poli...aling-things-you-may-not-know-north-korea-has
 

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Manufacturing stays on stable footing in August

2017-09-01 09:57

China Daily Editor: Huang Mingrui

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A technician tests a bicycle frame at a bike-manufacturing company in Lianyungang, Jiangsu province. (Geng Yue/for China Daily)

Index rose to 51.7 last month from 51.4 in July, amid tighter regulation, rising profits

China's manufacturing sector activity, measured by the Purchasing Managers' Index, continued to improve in August, and analysts said the rising index shows the economy remains on track and the country may register stable growth in the third quarter.

The index, which reflects market players' expectations of the health of manufacturing industries, rose to 51.7 last month from 51.4 in July, according to the National Bureau of Statistics on Thursday.

A reading above 50 indicates growth, while one below it signals contraction.

The index was the second highest this year, according to the bureau.

Supply and demand in the manufacturing sector, measured by the sub-indexes of production and new orders, which were 54.1 and 53.1, respectively, remained robust, the bureau said. Imports and equipment manufacturing expanded last month.

The ongoing supply-side structural reform, which has reduced excessive production capacity in some industries, such as steel and nonferrous metals, has pushed up raw material prices and raised the profit levels of the enterprises involved, the bureau said.

"The manufacturing sector has maintained its stable and improving development trend," said Zhao Qinghe, a senior official at the bureau, in a statement published at its official website.

Analysts said the August data show that the Chinese economy has remained on track despite the activity dampening and a tightening of financial regulation.

"The manufacturing PMI has been above 51 for 10 consecutive months, indicating that the operation of manufacturing enterprises has significantly improved," said Zhang Yiping, an analyst with China Merchants Securities. The impact of financial regulation on the real economy has largely been offset by the positive effect of the supply-side structural reform, Zhang said.

Zhang added that PMI averaged at 51.55 in July and August, 0.35 higher than that in the first two months of the second quarter. "It indicates that growth of the national economy may continue to be improving, and the possibility is rising that GDP growth in the third quarter could be at the same level as in the first half."

China's GDP growth reached a faster-than-expected 6.9 percent in the first half and looks set to meet its growth target of around 6.5 percent for this year. But some economists warned that growth could moderate in the second half due to the cooling of the real estate sector as a result of tightened government controls.

http://www.ecns.cn/business/2017/09-01/271682.shtml
 
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You can now smile to pay for your KFC meal in China
Diners at a KFC store in the eastern Chinese city of Hangzhou will have a new way to pay for their meal. Just smile.

Customers will be able to use a “Smile to Pay” facial recognition system at the tech-heavy, health-focused concept store, part of a drive by Yum China Holdings Inc to lure a younger generation of consumers.

Yum China, which spun off from its U.S. parent Yum Brands Inc last year, is trying to rev up growth in the world’s second largest economy, where food safety scares and changing consumer tastes have dented sales since 2012.

Yum is still the largest fast food chain in the market, where it has over 7,685 outlets. Its China same-store sales have also been slowly improving, rising in the second quarter of the year on a strong showing by its KFC brand.

The new outlet in Hangzhou, called KPRO, is targeting a younger generation of Chinese who are expected to drive the lion’s share of China’s consumption growth over the next decade.

Joey Wat, Yum China’s president, said the store was aimed at “young, tech savvy consumers who are keen to embrace new tastes and innovations”.

The Hangzhou store involves a tie-up with Ant Financial, which is behind the facial recognition software. Alibaba Group Holding Ltd affiliate Ant said this is the first commercial application of the technology worldwide.

Diners can pay by scanning their faces at an ordering kiosk and entering a phone number – which is meant to guard against people cheating the system.

“Combined with a 3D camera and liveness detection algorithm, Smile to Pay can effectively block spoofing attempts using other people’s photos or video recordings and ensure account safety,” Jidong Chen, Ant’s director of biometric identification technology, said in a statement.

The store’s menu offers seasonal produce, made-to-order salads and paninis. The chicken on the menu is “roasted”, while drinks include freshly squeezed juices, gourmet coffees and craft beer.

The concept store is not the first time Yum, or its major rival McDonald’s Corp, have tested new ideas in the market. Yum launched a swanky Italian diner as a test “lab” on Shanghai’s iconic riverside Bund in 2015.
http://nypost.com/2017/09/01/you-can-now-smile-to-pay-for-your-kfc-meal-in-china/
 

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