Category Archives: Ministry of Commerce

China’s manufacturing sector contracts in July

MOFCOM.  China’s manufacturing sector posted a slight drop in July dueto the flood season and weak demand, official data showed Monday. The purchasing managers’ index (PMI) came in at 49.9 in July, slightly lower than June’s50, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing. A reading above 50 indicates expansion, while a reading below 50 reflects contraction. NBS statistician Zhao Qinghe said floods across much of the country disruptedmanufacturing activity and transportation. Torrential rain was seen across more than half of China’s territory this summer, resultingin floods, landslides and causing heavy economic losses and fatalities. In addition, slowing market demand and weak investment sentiment in the private sectorcontributed to the contraction in the manufacturing sector, Zhao added. During the January-June period, fixed-asset investment increased 9 percent year on year, 0.6 percentage points lower than that recorded between January-May. Private sectorinvestment growth slowed further to 2.8 percent in the first six months. The manufacturing sector contracted as the country has embarked on painstakingmeasures to reduce excessive industrial capacity such as steel and cement. The sub-index for sectors with high energy consumption fell 0.5 percentage points to 47.7,the fourth consecutive monthly decline. The sub-index measuring production stood at 52.1,0.4 percentage points lower than amonth ago. The sub-index for new orders settled at 50.4,0.1 percentage points lower than theprevious month, declining for a fourth month in a row. Amid gloomy manufacturing activities, Zhao observed some positive factors, as the sub-index for high-tech manufacturing hit 53.2, the highest level this year. The Caixin General China Manufacturing PMI, an indicator of factory activity based on aprivate survey, added two points to post 50.6 in July, the first increase since last February,according to the data released Monday. It showed productions, new orders and stockpiles in private sector all resumed expansion. “With the proactive fiscal policy generating effects, China’s economy is showing signs ofstabilizing,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, asubsidiary of Caixin Insight Group. Downward pressure still remains, however, and supportive fiscal and monetary policymeasures are still necessary, he added. While the manufacturing sector slowed, the service sector expanded faster in July,presenting a new growth engine for the economy. NBS data showed that the index for services grew 0.2 percentage points to 53.9, its highestpoint this year. China’s GDP expanded 6.7 percent in Q2, the lowest growth rate since the global financialcrisis in early 2009. The economy is widely expected to follow an L-shaped path as downward pressurecontinues and new growth momentum is yet to pick up. At a high-level meeting held last week, China underlined the importance of proactive fiscalpolicy and prudent monetary policy, as well as the careful management of the speed anddirection of macro-economic policy. Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or

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China Central bank takes steps to regulate liquidity in July

MOFCOM.The People’s Bank of China (PBOC), the central bank,announced on Monday that it launched a series of targeted measures in July to regulateliquidity. The central bank said it injected 900 million yuan (135.8 million U.S. dollars) throughstanding lending facility (SLF) to ensure provisional liquidity demand from financialinstitutions. Meanwhile, the PBOC retrieved a net 43 billion yuan of liquidity from the financial systemin July in open market operations via medium-term lending facility (MLF). The MLF tool was first introduced in 2014 to help commercial and policy banks maintainliquidity by allowing them to borrow from the central bank by using securities as collateral. By the end of July, liquidity injected through pledged supplementary lending (PSL) toChina Development Bank, Agricultural Development Bank of China p and the Export-ImportBank of China, had risen to 1.8 trillion yuan, said the PBOC. The fund was earmarked tosupport projects such as substandard housing renovation and major water conservationprojects. The PSL mechanism is a monetary tool created in 2014 that allows the central bank toextend loans to policy banks at low interest rates.   Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a

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Foreign trade steams ahead in China’s southwest

MOFCOM.Chongqing Municipality in southwest China has seen aboom in foreign trade in recent years, primarily due to the extensive expansion of itstransport network. The Yuxin’ou Railway, which starts in Chongqing and ends in Duisburg, Germany, openedin 2011 and has seen a growing number of journeys every year since. The name of therailway is an acronym consisting of Yu (Chongqing), Xin (Xinjiang) and Ou (Europe). A total of 16 cities now receive regular freight on the route, and the line transports abouthalf of all rail freight between China and Europe, said Luo Shuquan, chairman of the boardwith the Chongqing Western Logistics Park, which operates the railway. “As trade on the east coast faces difficulties, inland cities like Chongqing are expandingtheir roles in foreign trade. It is no exaggeration to say the age of sea is giving way to theage of land,” he said. In the past five years, import and exports in Chongqing, a regional economic center on theupper reaches of the Yangtze River, have grown by more than a third every year,according to recently released trade statistics. Last year import and export values reached 464 billion yuan (about 71.4 billion U.S.dollars) in Chongqing, almost five times the 2010 figure. “In the past few years, Chongqing has been building land, air and water transportnetworks to facilitate logistics and trade,” Luo said. Provinces such as Henan and Shaanxi are also following suit to boost foreign trade, headded. Both provinces posted double-digit growth in their total import and export valueslast year. Chongqing transport authorities said that the cargo handling ability of ports in themunicipality will rise from the current 180 million metric tons per year to 220 millionmetric tons by 2020. Trains depart from Chongqing at least three times per week, and in peak season this canrise to seven times per week. For the return journey from Duisburg, trains depart betweentwo and five times per week. In 2015, a total of 257 freight journeys were recorded on the Yuxin’ou route, and thatnumber will increase to 300 this year, said Yang Liqiong, director of Chongqing LogisticsOffice. Initially transporting just IT products, the railway network has now expanded into autoparts, cosmetics, frozen food, wine, coffee and more. “With growing demand, rail freight will increase every year. And as costs are lowered, railfreight become as competitive as other means of transport, such as air and maritime,”Yang said. From 2014 Chongqing was given approval by the central government to import vehiclesvia rail from Germany. The journey takes 13 days from Duisburg to Chongqing, saving twothirds of the time it would take to ship them, resulting in significantly lower logistics costs.In June,600 BMW vehicles arrived in Chongqing via the Yuxin’ou railway. Wu Xi, a resident of Chongqing, received his new car just 20 days after he placed his order,a journey that would have taken two months by sea. “Growing trade between Chongqing and Europe has brought convenience to buyers,” saidWu. China has made the opening-up of inland provinces one of its top priorities, said Chi Fulin,director of China Institute for Reform and Development. “Central and western provinces have great potential to tap foreign trade as a growthpoint,” he said.   Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any

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U.S. punitive duties on solar imports from China disrupt industry chain: MOC

MOFCOM. The Ministry of Commerce (MOC) on Tuesday said China was disappointed at the United States’ punitive duties on Chinese solar products,sayingthe practice disrupted the global industry chain. “We were disappointed by our U.S. counterpart as we believe its constant anti-dumpingand antisubsidy measures on Chinese photovoltaic products has seriously disrupted thedevelopment of the global industry chain,” said MOC spokesperson Shen Danyang during aroutine press conference. The U.S. Commerce Department decided recently to levy antidumping duties rangingfrom 6.12 percent to 12.19 percent and countervailing duties of 19.2 percent on imports of photo voltaic products from China. Photovoltaic products are beneficial to environmental protection and pollution reduction.With relatively advanced technology, China has developed lot of qualityphotovoltaicproducts and services, whil importing a large amount of raw materials and equipment,Shen said. In this respect, and as major photovoltaic markets, China and the U.S. have a promisingcooperation future, he said. Shen said he hopes to enhance dialogue and consultation with relevant countries, includingthe United States, to solve trade frictions in this field via industrial cooperation tocontribute to global climate change tasks Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with

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China service sector continues to expand: Caixin PMI

MOFCOM. Business activity in China’s service sector continued toexpand in July, a private survey showed Wednesday. The Caixin China General Services PMI (Purchasing Managers’ Index) came in at 51.7 inJuly, according to the survey conducted by financial information service provider Markitand sponsored by Caixin Media Co. Ltd. A reading above 50 indicates expansion, while a reading below 50 represents contraction. However, the growth rate retreated from an 11-month high of 52.7 in June. The deceleration can be attributed to slowing new order growth and falling servicesemployment, with the latter appearing to be the first time in four months. Servicescompanies were downsizing to cut costs, but the overall employment decline was modest. The surveyed companies saw their unfinished work drop for the second month along withthe weakest increase in costs for a year and a half. Prices charged by services providersincreased slightly. Companies still maintained a positive stance toward future business activity with forecastsof improving economic conditions and an expanding market size. The optimism edged up toa three-month high. The Caixin China General Services PMI is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 companies. The Caixin General China Manufacturing PMI, an indicator of factory activity, added twopoints to post 50.6 in July, the first increase since February 2015, according to datareleased Monday. The two indices signalled a stronger expansion in Chinese business activity at the start ofthe third quarter. Another major Caixin economic indicator, the Composite Output Index, rose from 50.3 inJune to 51.9 in July, the fastest rate of growth since September 2014. China’s economy grew slightly faster than expectations in the second quarter of 2016, withits GDP expanding 6.7 percent year on year, official data showed. Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be

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China’s central bank drains money from market

MOFCOM. China’s central bank drained money from the market this week due toeasing liquidity strain. From Monday through Friday, the People’s Bank of China (PBOC) pumped 375 billion yuan(56.47 billion U.S. dollars) into the money market via seven-day reverse repos, a processby which central banks purchase securities from banks with an agreement to sell themback in the future Taking into account reverse repos that have matured, the central bank effectivelywithdrew 235 billion yuan. China’s liquidity tightening has been greatly eased. The benchmark overnight ShanghaiInterbank Offered Rate, known as Shibor, witnessed a week-long losing streak. On Friday’s interbank market, Shibor stood at 2.002 percent, much lower than 2.038percent, the highest in a month, seen on July 27 The PBOC adopted various open market operations to regulate liquidity in the market thisyear, including standing and medium-term lending facility and pledged supplementarylending, a PBOC statement said Monday Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of

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China to maintain prudent monetary policy

MOFCOM  China will continue to adopt the prudent monetary policy inH2, while maintaining an appropriate degree of flexibility and making timely pre-emptiveadjustments, the central bank said on Friday. The People’s Bank of China (PBOC) will use various policy tools to maintain appropriateliquidity and reasonable growth in credit and social financing, according to a report postedon the PBOC’s website. The central bank promised to improve financing and credit structures to support thecountry’s economic restructuring and upgrades. More financial support should be given to major infrastructure projects and economic zonesincluding the Yangtze River economic belt. The bank will assist precision poverty relief, continue market-oriented reform on interestrates, and reduce social financing costs. The central bank reaffirmed that it will keep the yuan exchange rate basically stable at a”reasonable and balanced” level, improve the exchange rate formation mechanism, andaccelerate the development of foreign exchange market. The bank will also improve financial market system, and do everything possible to preventsystematic risks and ensure a stable financial market. To prevent hidden risks, more attention should be paid to industries beset withovercapacity, the property sector and local government debts, the central bank said.   Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a

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China’s forex reserves down slightly in July

MOFCO. China’s foreign exchange reserves dropped to 3.201 trillion U.S. dollars at the end of July,down from June’s 3.205 trillion, the People’s Bank of China, the central bank, said onSunday. The data was basically in line with market expectations after an unexpected rise surprisedinvestors in June. China began to see a falling trend in its forex reserves in November 2015 due to concernsover a weak yuan and capital outflow, but the reserves returned to growth in March asfears eased amid signs of stabilizing economic growth. China’s reserves, the largest in the world, fell to 3.19 trillion U.S. dollars in May, the lowestlevel in nearly five years. Forex reserves denominated in Special Drawing Rights (SDRs), an international reserveasset, rose to 2.297 trillion SDRs in July from 2.291 trillion in the previous month, the datashowed. China’s official gold reserves stood at 78.89 billion U.S. dollars in July, up from77.43 billion in June, according to the data. All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of “Source: Ministry of Commerce Website”.All articles posted on this

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China sees effects of coal capacity cuts: top economic planner

MOFCOM. China’s top economic planner said on Monday that the country hasmade progress in reducing excess coal capacity by advancing economic structural reform. Coal output declined 9.7 percent year on year to reach 1.63 billion tonnes in the first half of2016, widening from a 5.8-percent drop recorded in the same period last year, said theNational Development and Reform Commission (NDRC) on its website. Coal enterprises and major electric power plants saw their coal stockpiles drop as of theend of June, down 8.6 percent and 16.6 percent, respectively, according to the NDRC. The decline in coal stocks resulted in a narrowed decline for major coal business profits,reaching 3.5 billion yuan (525 million U.S. dollars) in the first five months, down 73.2percent year on year, compared with a 92.5-percent drop in the first quarter. The NDRC attributed the progress to the government’s continued efforts in reducingproduction output, eliminating outdated capacity and promoting mergers, reorganization,and industry upgrades. Meanwhile, coal consumption nationwide edged down 5.1 percent year on year to reach1.82 billion tonnes in H1, according to the NDRC. China is the world’s largest producer and consumer of steel and coal. The two industrieshave long been plagued by overcapacity and felt the pinch even more in the past two yearsas the economy cooled and demand has fallen. The Chinese government made reducing excess capacity a top priority in late 2015 at theCentral Economic Work Conference and put it at the center of the 13th Five-Year-Plan. China plans to cut steel and coal capacity by about 10 percent — as much as 150 milliontonnes of steel and half a billion tonnes of coal — in the next few years, with funds set asideto help displaced workers. Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a

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World’s fastest bullet train to start operating next month in China

MOFCOM.  The world’s fastest high-speed train with the maximum operatingspeed of 380 km per hour will run on Zhengzhou-Xuzhou high-speed track fromnext month. The engineers behind the Zhengzhou-Xuzhou high-speed railwayhave succeeded in finishing a key interconnecting facility to link the railwaywith Beijing-Guangzhou and Zhengzhou-Xi’an high-speed line, creating a seamlessconnection of high-speed tracks in China’s eastern and middle-western regions. After the new train is launched, the travel time betweenZhengzhou, Central China’s Henan province, and Xuzhou, East China’s Jiangsuprovince, will be shortened from 2-hour 33-minute to about 80-minute. Compared to the last generation bullet train, the new train’scontinuous operating speed has increased 50 km per hour to 350 km per hour, andthe highest speed is 400 km per hour in testing phase. In future, the newgeneration train will be mainly used to carry passengers in China.   Ministry of Commerce Website Copyright and Disclaimer Statement All articles marked with “Article type: Original” posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of

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