Archives for: 2017


Permalink 04:54:06 pm, by dacare, 311 words, 400 views   English (US)
Categories: News of China

'Corporate service labs' to support startups in first three months

Shanghai's first "corporate service lab" has opened in a number of downtown districts to offer legal, financial and other support to local startup companies.

The service project, named "wehome LINK", was initially established in two major Dobe innovative parks in Changning and Jing'an districts as the first batch of "service labs" to serve hundreds of locally based startup firms in a trial operation.

Under the scheme, service providers such as law firms, human resource management companies, insurance providers and incubators will offer services to the small and medium-size enterprises for three months. The parks' operator will evaluate their performances and decide whether to retain or substitute them with better service providers.

This scheme will support a large swathe of startup companies under the government's mass entrepreneurship campaign, especially during the bottleneck period that most local innovative firms are undergoing.

"We found many young entrepreneurs, though they do have achievements in their fields, can hardly figure out many problems during the management and operation of their startup companies, such as share allocation, legal disputes and financial issues," said Jia Bo, chairman of Dobe Group, a major developer of local innovative parks.

"Some small and medium size companies don't even know how to apply for government subsidies that they are entitled to, and lost the opportunity to further develop," Jia said.

The first batch of seven service providers has entered the two innovative parks and begun serving startups on these issues. They include the Watson & Band law firm, online insurance company Qibao 360 and other service suppliers in print, office decoration, air purification and housekeeping.

Currently, most of the startup companies receive basic administrative services from incubators who merely help the entrepreneurs register their companies, pay taxes and apply for patents.

Most of the incubators neglected other more essential demands from startup companies, which hampered their development, according to mobile-Internet consultancy iiMedia Research.

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Permalink 02:21:42 pm, by dacare, 129 words, 276 views   English (US)
Categories: News of China

Shanghai aims to be global cultural, creative center by 2035

Shanghai municipal government said Thursday it will develop the city into a cultural and creative center with international influence by 2035.

According to a newly-issued document, which introduced 50 promotional measures, the added value of the cultural and creative industry will account for about 15 percent of the city's GDP in the next five years, and about 18 percent in 2030.

Shanghai Mayor Ying Yong said the cultural and creative industry is a pillar industry for Shanghai, and plays an important role in the city's development and the people's livelihood.

The document said Shanghai will become a global film and television production center, a performance capital in Asia, a global animation and game production base, a leader in domestic Internet culture and publication, an international creative design highland, and an international art trading center.

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Permalink 04:46:10 pm, by dacare, 476 words, 141 views   English (US)
Categories: News of China

Google to open China AI center

Customers try the Google Daydream VR at a Google pop-up shop in the SoHo neighborhood in New York City. The shop lets people try out new Google products such as the Pixel phone, Google Home, and Daydream VR

Amid the enthusiasm shown by the government and domestic technology companies for research and development of artificial intelligence, global technology giant Google announced on Tuesday the opening of its AI center in China.

Li Feifei, chief scientist of AI and machine learning at Google Cloud, announced the launch of the AI center during the Google Developer Day in Shanghai. Based in Beijing, the center will host a group of researchers supported by hundreds of engineers in the country.

The China AI center is the first of its kind in Asia. It will join similar overseas centers operating in New York, Toronto, London and Zurich.

Li will lead the center, which will focus on basic AI research. She said this is one of the first steps for Google to conduct long-term research in China.

"There are a large number of scenarios where AI technology can be applied in China. The talents here are also top-class if put in an international context," said Li.

Scott Beaumont, president of Google in China, expressed his confidence about the AI center, since he has witnessed the vibrancy of local developers and Chinese people's willingness to embrace new technologies, which is hardly found elsewhere in the world.

According to global market consultancy Roland Berger, China now ranks second globally in the quantity of AI enterprises, patent applications, and the scale of financing across the world, only next to the United States. It is expected that AI technology will create 10 trillion yuan ($1.5 trillion) in profits for related industries by the end of 2030.

Finance, automotive, medical and retail will be the four industries in China seeing the most benefits by adopting AI technology, according to Roland Berger.

Leading Chinese technology companies such as Baidu Inc, Alibaba Group Holding Ltd and Tencent Holdings Ltd are making inroads into AI development in the form of self-driving cars, energy-efficient automobiles and educational equipment.

Simon Lance, managing director of global human resources company Hays in China, said that the AI sector faces a great shortage of candidates in China at the moment, since the country is "moving away from manufacturing and toward AI and robotics".

It is calculated by domestic online recruitment platform that the demand for AI talents in China has doubled so far this year, with the biggest demand for algorithmic engineers.

Regarding the rise and prospects of the AI industry in the country, the central government released the first number of national-level open innovation platforms for AI in November. AI technology has been used at Customs and procuratorates to seek innovation in different scenarios. Such adoption at the government administration level will be extended in 2018.

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Permalink 03:02:50 pm, by dacare, 185 words, 135 views   English (US)
Categories: News of China

Google to open AI center in Beijing

Global technology giant Google announced on Wednesday the opening of its artificial intelligence (AI) center in China during its second developers conference in Shanghai.

The new AI center will be based in Beijing. A small group of researchers supported by hundreds of Chinese engineers will be working there. Basic AI research will be the main area that the center will be focusing on.

Li Feifei, chief scientist of AI and machine learning at Google Cloud, will lead the research group of this new center. The center will seek cooperation with the local academia and other possible partners since China is one of the world leaders in AI technology development with ample supply of top talents in this area, she said.

"The center is a corporate-level effort. It is one of the first steps for Google to carry out long-term research in the Chinese market," she said.

The preparation for this center started in January. A number of Google's teams, such as the one for Tensor Flow - computation using data flow graphs for scalable machine learning, have taken part in the establishment of this center.

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Permalink 05:00:29 pm, by dacare, 1128 words, 143 views   English (US)
Categories: News of China

Water diversion project drives environmental improvements and provides new jobs for locals

Residents stroll through the streets of Ankang city, Shaanxi province.

Tuesday marks the third anniversary of the start of operations of the central route of the South-to-North Water Diversion Project, a massive infrastructure program designed to transport water from the south of the country to the arid northern regions via three separate channels.

So far, more than 10 billion cubic meters of water have been carried to North China via the central route, benefiting more than 53 million people.

The environmental improvements that have resulted from protection efforts in the regions that supply the water?the provinces of Henan, Hubei and Shaanxi?have attracted investment and brought new job opportunities in green industries, including tourism and ecological agriculture, benefiting people in the areas that supply the water.

Xia Qinghua is one of them. The 43-year-old was employed in a small toy factory in Shenzhen, Guangdong province, for 12 years before he returned to his home, Chenjiawan, a village in Hubei's Shiyan city, in June.

He had long wanted to return, but was prevented by a shortage of jobs. However, the situation changed after Hubei Beidouxing Eco-agriculture and Forestry Co began investing in the area in 2014, lured by the cleaner environment.

"Great improvements have happened to the environment in my hometown. When I left at age 17, I had never seen an egret. Now, there are birds everywhere. They are beautiful," he said.

Though he earned more than 5,000 yuan ($756) a month in Shenzhen, Xia often had to work until 11 pm.

"The salary was good, but I felt lonely and helpless because I had no family around me," he said.

In 2011, he attempted to return to Chenjiawan, but the move wasn't successful. "There weren't many business opportunities in the poverty-stricken area at the time," he said. Xia had spent 50,000 yuan on a small truck and started a transportation business, but he lost his investment and was 20,000 yuan in debt after a year, so he was forced to return to Shenzhen.

After that, he only returned home once a year, for the Spring Festival holiday, and leaving his family was always a tearful affair.

"I remember very clearly leaving home on the evening of the fifth day of the Lunar New Year in 2013. My wife, my daughter and I cried in each other's arms. They all didn't want me to go," he recalled, tears glinting in his eyes.

Now, he works in the warehouse at a farm operated by Hubei Beidouxing, making about 2,000 yuan a month. Even though he earns less than he did in Shenzhen, Xia is much happier because he is close to his family and can care for his 70-year-old father, who is unwell. He supplements his income by leasing 0.5 hectares of farmland to Hubei Beidouxing, which brings in an extra 4,000 yuan a year.

The Danjiangkou Reservoir in Shiyan, Hubei province, is a source area for the South-to-North Water Diversion Project.

Li Wei, head of the farm, said the company rents 200 hectares of land from residents of three nearby villages, which have a combined population of about 5,000. While 500 villagers work on the farm full time, a further 2,000 are employed seasonally every year.

So far, the company has invested 280 million yuan in the farm, which has been in operation since 2014. However, the enterprise only became profitable this year; Hubei Beidouxing made more than 2 million yuan from the sale of fruits and flowers, and the farm attracts a steady flow of visitors who come to view the blossoms on the trees and pick fruit, he said.

The company has bought a number of vehicles to provide free transportation for sightseers. "The purpose of offering these services is not to make money. Instead, we hope to attract tourists and create business opportunities for people in local villages," Li added.

Some local residents have also started providing services in their homes, such as restaurants and guest rooms. In response to the rise in the number of visitors, Xia plans to provide tourist services too.

The most recent data is not yet available, but the Office of the South-to-North Water Diversion Project said that between 2011 and 2015 the central government invested more than 17 billion yuan in environmental protection measures in the area that supplies the central route.

Beijing and Tianjin, two of the prime beneficiaries of the project, have also invested a combined 2.3 billion yuan in 650 projects, including a number designed to protect the environment and develop ecological industries, such as eco-agriculture and tourism. The municipalities have also mobilized local businesses to invest 88 billion yuan in 118 projects.

People stroll on a walking path near an embankment of Hanjiang River in Ankang, Shaanxi province.

Marketing opportunities

Last year, Chen Guosheng returned to his hometown of Shiquan county in Ankang city, Shaanxi, which is also located in the source area for the water diversion project.

The entrepreneur was prompted to return by the rise in the number of business opportunities resulting from the improvement to the local environment.

"The improvements have resulted in a lot of high-quality farm produce, but the local farmers don't know how to market or sell the goods," he said.

In response, Chen's company, Shaanxi Baren Tourism and Culture Co, is building marketing channels, and has invested 20 million yuan to transform Zhongba, a small village, into a business hub.

His plan is that tourists will be able to visit for sightseeing and also learn how to make local delicacies, including tofu and cooking oil, using local farm produce and traditional facilities and methods. A trial has been in operation since Oct 1, while the village is being redeveloped.

Chen also rents 67 hectares of land, which he has turned into a tea plantation. The leaves grown on the plantation are highly rated by a tea merchant in Guangdong province, who has ordered a continuous supply.

Business opportunities are also being nurtured in Madeng township, Nanyang city, Henan, via a 1,667-hectare forestry project intended to restore desertified land in a mountainous area.

Two scenic spots are the township's main tourist attractions, generating annual revenue of 35 million yuan. Now, the local government is using the forestry project, which has attracted investment of 82 million yuan, to widen the area's appeal to visitors.

Cherry and Chinese cherry apple trees will be planted along roadsides to create attractive scenery, while pomegranates and walnuts will be cultivated to allow tourists to pick their own fruit, said Zhou Yushan, head of the Madeng government.

In 2009, the per capita income in the township was about 3,000 yuan, but this year the figure is double that thanks to the tourism boom. There are now more than 100 "farm resorts" in the township, according to Zhou.

"The environmental improvements are bringing more opportunities for the development of tourism. All nine registered impoverished villages in the township will be lifted out of poverty by the end of the year," he said.

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Permalink 04:01:49 pm, by dacare, 1710 words, 174 views   English (US)
Categories: News of China

China increasingly attractive to foreign professionals

It took Nikita Ermakov, a second-year Russian student at Peking University's Yenching Academy, four months of job hunting and many interviews before he finally got an offer from the HNA Group, a Chinese conglomerate on the Fortune 500 list. He is currently negotiating the offer with them, and hopefully, he will start the job after graduation.

Ermakov, 25, got his bachelor's degree at a university in South Korea and a master's in Russia before coming to China. He has three years of work experience from his time in South Korea and Russia and can speak four languages: English, Korean, Russian and Chinese.

"China has become the new U.S., a new land of opportunities," he said. "The U.S. is a country of immigrants, but it is already a developed country. With President Trump's new policies, the country has become stricter with visa and immigration regulations. China is still developing; it has a huge market."

Ermakov is just one of many foreign talents who choose to come to China for career development.

According to the HSBC's 2017 Expat Explorer Global Report in October, a move to China offers expats numerous career and income advantages.

The report showed that China, as one of the world's economic powerhouses, now comes in second in HSBC's global rankings for career progression. A total of 70 percent of the 27,500 expats surveyed said the Chinese mainland offers strong job prospects compared with only 54 percent globally and 48 percent in Eastern Asia, a 16 percent increase over last year's figures.

Half of the surveyed expats on the Chinese mainland said they have more opportunities to acquire new skills here than at home, and they earn significantly more than the average expat - typically around $171,000 annually compared with $100,000 globally and $115,000 regionally, according to the report.

Wang Huiyao, founder and president of the Center for China and Globalization (CCG), said China is now involved in "global talent circulation."

"There is a new trend in which more foreign talents will go to China to develop their career in the next decade or two. China's international talent competitiveness is growing," he said.

Hot areas for foreign professionals

According to the HSBC report, the top three employment sectors are the education, service, and financial services sectors, which account for 31, 17 and 9 percent of the employment market respectively. The service industry includes hospitality, travel and leisure, tourism and customer service.

Ermakov thinks that foreigners, especially recent graduates and young specialists, face fierce competition from Chinese professionals. But as the HSBC report showed, the education, services and finance industries require the highest level of qualifications, so foreign talents can still compete with domestic specialists.

"In spite of the fact that foreigners have lower language skills, lack connections and have a limited knowledge of the market, they have comparative advantages: international networking experience, mobility, knowledge of specific business cultures, foreign languages or business English, special areas of expertise and so on," he said.

Eric Tarchoune, founder and managing director of the Dragonfly Group, an HR consulting firm in China, said foreigners who have competencies in big data, artificial intelligence, digital marketing, research and development, knowledge management, brand management, and smart data analysis are in greater demand. They have years of work experience and can bring innovative and different ways of working to their job in China, he explained.

Hays, a British recruitment company with offices in China, said the industries on the Chinese mainland that offer good job prospects for foreigners include science, technology, engineering and mathematics (STEM), the Internet, e-commerce and digital technology, and medical care in its December 5 release on the top 10 recruiting tendencies on the Chinese mainland in 2018.

"Candidates with well-developed soft skills and technical or product knowledge in their area of expertise are also in high demand for these roles and are well positioned to command the most attractive remuneration packages in the coming months," said Simon Lance, managing director of Hays China.

Attracting high-end talent

National initiatives such as the Belt and Road initiative and national technology projects are attracting more high-end foreign professionals.

Jurriaan Meyer, a 52-year-old man from the Netherlands, recently resigned from his post as Asia Pacific director at an international software company in Beijing to work as the general manager of Shandong SRCC Rail Transit Technology, a new Jinan-based company that does innovative propulsion systems for both the local and international markets. Meyer has been in China for over 15 years.

"This project is part of the Belt and Road initiative and is supported by the governments of Shandong and the Netherlands," said Meyer. "Jinan wants to build a local rail industry, and SRCC will be one of the first companies to contribute to this plan with local assembly facilities. If we succeed, this project could truly be the crown of my career in China."

A new work permit system was implemented across China on April 1. Under the new system, foreigners fall into the categories of A, B or C based on their educational background, qualifications and work experience. The policy, which was launched by the State Administration of Foreign Experts Affairs, shows that China wants more high- and mid-level foreign talents.

According to Shanghai-based newspaper Jiefang Daily, Ben Feringa, the winner of the 2016 Nobel Prize in chemistry and Kurt Wüthrich, winner of the 2002 Nobel Prize in chemistry, are expected to obtain a Chinese green card in December.

Meyer also applied for a Chinese permanent residence card last year, which is expected to be granted to him in 2018.

"I think China is right to attract foreign talent while focusing on high quality," said Meyer.

Meyer thinks that compared with big cities like Shanghai and Beijing, where the living costs are becoming excruciatingly expensive, second- and third-tier cities also offer a lot of opportunities these days.

"Facilities in China are very good these days. The transportation infrastructure is awesome, and the Chinese people and companies are usually very supportive and go to great lengths to accommodate foreign talent," he said.

A new generation of expats

Madeleine, a 21-year-old woman from Indonesia, works as an event manager for, a Beijing-based startup recruitment company.

She came to Beijing in 2013 and studied marketing for four years at the University of International Business and Economics (UIBE). She also does public relations for Global Foundation of Young Entrepreneurs (GFYE) at UIBE.

"Startup environments attract me a lot, as they are very challenging and give me the opportunity to learn every single day," said Madeleine.

She started building her career here in 2016 by taking different internships and part-time jobs and has built her network from hundreds to thousands within a year.

Running events with NGOs and big job fairs, and meeting inspiring people are just some of her memorable experiences so far.

Madeleine thinks there is a bright future for bilingual professionals who speak Chinese and are passionate about China, its fast economic growth, growing advanced technology and diversity.

"Nowadays, employers and companies are hiring younger professionals because they're known to be very tech savvy, entrepreneurial, adventurous and very talented overall," she said.

Meyer agrees.

"I think a new generation of expats is coming who are younger and better prepared for China. Most speak Chinese, which is a great development," said Meyer, who passed HSK 5.

He explained that the new generation of candidates compromises millennials, those who are born after 1990, and Generation X or those who are born after 2000. They are coming to China to study and then work. They learn Chinese at an early age and mix with the younger generation in China, he said.

"They are very well integrated into the culture and business environment and are of great value to China and their home countries," he said.

"China is making a smart move by inviting many young people from abroad to study in China. This helps groom a pool of future 'ambassadors for China' who can help develop understanding and cooperation to the benefit of China and its counterparts abroad."

How to grasp the opportunities?

Meyer finds that after coming to China to work, he has learned much more and is earning more as well.

He said that while China is developing fast and Chinese graduates and professionals are catching up quickly, some high-level foreign workers are still sought after for their unique combination of academic, professional and soft skills and language abilities.

"Soft skills and foreign languages are a weak spot for some Chinese candidates, particularly those outside of the big cities, so there are opportunities for those who can help bridge the gap between China and the world," he said.

He thinks that to be successful in China, one needs many skills, such as in-depth experience in their related field of work.

He said recent graduates from abroad would have a hard time finding a job in China, as many graduates from China or Chinese returning from overseas are stiff competition.

Intercultural skills are also needed. Meyer said an excellent command of the Chinese language and an understanding of the business culture must be brought to the table. Flexibility and an innovative mind comprise the third and final essential factor.

"China will develop more and more, and the labor market will be even more competitive even for the most skilled talent from abroad. However, some very good ones will always be required and welcome if only to help China succeed on the world stage, away from the familiar home markets in China," he said.

Nicolas Fusier, operations director of Dragonfly Group, said more and more Chinese companies that are going global recruit foreigners to develop in the North American and European markets. He said for these specific jobs, it's definitely an advantage to be a foreigner because they know the culture and have their network.

However, Madeleine thinks that despite the good prospects, getting a work visa still poses a challenge.

"Be ready for the long process of applying for a work visa. It is sad because I have seen and met hundreds of young talent who did not get the work visa but are actually very enthusiastic and passionate," she said.

Fusier sees things differently.

"It takes time to get a visa, but I think the most important thing when it comes to attracting high-quality foreign talent is to offer them interesting and innovating challenges while working here in China," he said.

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Permalink 02:39:58 pm, by dacare, 251 words, 156 views   English (US)
Categories: News of China

Graduates must adjust to new job market: expert

More than 8 million students will graduate from Chinese universities in 2018 and must adjust to lower-income opportunities amid intensifying competition, experts told the Global Times on Thursday.

The number of China's university and college graduates is estimated to reach 8.2 million in 2018, the People's Daily reported on Wednesday.

Students should be encouraged to seek jobs in grass-roots work units, the military, newly emerging fields and international organizations, Lin Huiqing, Vice Minister of Education, said at a meeting about the employment of university and college graduates on Wednesday in Beijing.

Lin said that the concept of innovation and starting up should be involved in education, the Beijing-based national newspaper reported.

Discrimination in any form, job hunting traps and pyramid schemes should be firmly opposed to protect college and university graduates' legal rights, Lin said.

"China's employment rate is actually among the highest in the world," Xie Zuoxu, a professor of high education at Xiamen University told the Global Times on Thursday.

"We are not lacking positions. In fact, many grass-roots positions such as escort service, sales and teachers, urgently need to fill positions. It is a question of whether college and university students would like to take those jobs," Xie said.

Young people should first increase their own capability to get the jobs they want. Newly graduated students needed to adjust their attitude especially toward grass-roots work, Xie believed.

The number of China's college and university graduates has been increasing constantly since 2001. The number reached 7.95 million in 2017, 300,000 more than 2016, Xinhua News Agency said Thursday.

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Permalink 11:50:54 am, by dacare, 481 words, 73 views   English (US)
Categories: Announcements

Global firms hike spending on R&D

As China shifts its focus to attract more foreign investment in high-end manufacturing, services and green industry to transform its economy, overseas companies are pouring in additional funds to develop research and service-based businesses in China to maintain robust growth.

Many of these opportunities also come from the country's growing demand for consumption-related products and services, diversified market channels created by the Belt and Road Initiative and free trade deals with partner countries, as well as the hunger for more homemade sophisticated industrial products.

Thanks to the government's resolve to attract more foreign direct investment this year, segments newly identified as key to sustained growth?automation,

digitalization, financial and healthcare services, aviation, environmental technologies and renewable energy businesses?are all expected to benefit.

China's key areas for economic reform and industrial upgrading will grow into new opportunities in many German companies' investment plans, said Alexandra Voss, a member of the German Chamber of Commerce's all-China board.

"Consumption-related sectors will remain hot, and sectors that get well with China's new direction of economic growth, including high-tech, services and new energy, will also see more foreign investment," said Voss.

"Due to rising labor costs and weak global market demand, China is veering towards growth reliant on domestic consumption, rather than exports," said Gao Peiyong, director of the Institute of Economics at the Chinese Academy of Social Sciences.

Gao said companies from Europe, Japan and the United States have already discovered that it is time to invest more in Chinese research and development, as well as its science and technology and design businesses.

New growth points are expected to present themselves as the economy becomes more sophisticated.

Under government policies issued in January, foreign companies will be encouraged to invest in high-end, smart and green manufacturing; to set up research and development centers; and to strengthen cooperation with domestic peers. They will also be allowed to join national science and technology programs.

US-based Emerson Electric Co opened a new measurement technology center in Beijing on November 14 to serve its automation solutions business in China and across Asia. The facility, representing an investment of $28 million, includes the company's first China solutions center for customers and a newly built and expanded manufacturing plant to meet domestic and Asia-Pacific market demand.

David Farr, chairman and chief executive officer of Emerson, said with this new center, the company will be able to engage in closer collaboration with its customers in China in helping the industry adopt digital transformation technologies, as a growing number of Chinese companies are leveraging the growth potential arising from digitalization.

Siemens AG and Ningbo-based Consinee Group also kicked off their cooperation in a project for the first intelligent factory in China's wool textile industry on Nov 27. Involving a total investment of $50 million, Siemens will help its Chinese partner build 10 pilot intelligent production lines with an annual output of 1,000 metric tons of premium cashmere yarns.

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Permalink 04:45:28 pm, by dacare, 587 words, 118 views   English (US)
Categories: News of China

Co-working space sector set to boom

The flagship working space of co-working company WeWork in Shanghai at a renovated hundred-year-old UK-style building.

Freelancers and small and medium-sized companies that yearn for better working environments can increasingly avail themselves of a new option, co-working spaces.

With the rise of millennials in the workforce and the government's supportive policies such as the so-called mass entrepreneurship innovation, the co-working space sector is booming, along with much of China's emerging sharing economy.

According to an annual report released by the National Development and Reform Commission, more than 5.5 million new companies were registered last year, growing 24.5 percent year-on-year.

By the end of 2016, the country had nearly 26 million registered enterprises, up 18.8 percent year-on-year. And the report noted that 41.7 percent of the entrepreneurs are young people, especially millennials.

Seeing the huge potential in innovating away from traditional working offices, Hu Jing, the former executive vice-president of Chinese property developer Greenland Holding Group Co Ltd, established his co-working startup Distrii, to offer co-working spaces, coupled with online mobile office solutions.

"As more cities in China become highly developed and business concentrated, traffic congestion, air pollution and other city diseases pop up now, and the cost of commuting also has increased. All those problems are the real pain points for cities and will also reduce people's work efficiency," said Hu, now CEO of Distrii.

Hu aims to build a community that allows employees to set up workplaces in the nearest co-working offices, instead of traveling for hours to a far-away office.

"Advances in technologies will enable us to live in the flexible, mobile, productive and convenient working environment, marking a key point to the smarter future.

"Co-workers are able to deal with company tasks online via our mobile office solutions and communicate with other company employees in the working building to expand their social circles," he said.

According to statistics on the official website, more than 450 companies have registered to use properties offered by the Shanghai-based co-working space operator.

Currently, Distrii has set up 15,000 working spaces in four cities, Beijing, Shanghai, Hangzhou, and Singapore. The company said it would unveil its flagship franchise in Singapore next April.

In September, the company announced it had raised 200 million yuan in series A financing to further expand its light-asset office network and start to tap into overseas markets in the Asia-Pacific, Southeast Asia and North America regions.

"Our co-working mode is more than simply renting working offices. We aim to connect people with the facilities via the internet, making them into part of the smart city plan," Hu added.

Once users sign up to use the co-working building, they can simply use smartphones to unlock the office door and check in automatically via the internet. And the serviced offices will offer more functions, including tele-conferencing and video-conferencing.

"Currently, we especially target small and medium-sized companies, which account for around 70 percent of the total domestic firms, aiming to help them reduce the costs on operation and IT spending."

A report released by consultancy iResearch showed that there is huge potential in China's co-working industry. According to the report, the domestic market in China reached 4.29 billion yuan ($650 million) in 2016, and the number is expected to hit 9.35 billion yuan by 2019.

Feng Chao, an analyst at internet research company Analysys, noted that co-working companies need to offer favorable prices and comfortable working environments to accumulate enough users.

"The key is to introduce more value-added services," Feng said. "It should be more than simply providing renting offices and should involve more needed services, such as training and a community network."

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Permalink 11:25:32 am, by dacare, 196 words, 56 views   English (US)
Categories: Announcements

Chinese firms need specialist expertise

Chinese companies will continue to see rising demand for bilingual talent, experts in Internet technology and human resources in 2018 amid globalization and China's Internet Plus strategy.

People who move to new jobs can expect an average salary increment of 10 to 20 percent while those who stay in their jobs can see a 5 to 8 percent rise in China in 2018, according to a report by Robert Walters, a global recruitment consultancy.

This year is likely to see a generally steady salary increase with an average 15 to 20 percent rise, but cooling from a rally last year.

With China being the biggest e-commerce market globally with rapid development in digital payments, automation, big data and artificial intelligence under the Internet Plus strategy, employees in information technology companies who change jobs may see a 12 to 18 percent jump in salary, according to the report yesterday.

The Belt and Road initiative and the Go Globally strategy are also driving Chinese companies to pursue bilingual professionals who have experience in international companies and understanding of local markets.

"The demand for bilingual talents is expected to rise sharply by over 50 percent in several years," said Sean Li, associate director of the Shanghai branch of Robert Walters.

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Permalink 04:52:37 pm, by dacare, 166 words, 190 views   English (US)
Categories: Opinion and View

Financial jobs mostly likely to be replaced by AI: Deloitte

Finance employees are most likely to be replaced by artificial intelligence (AI) in the future, said a research report by Deloitte on Nov. 30, China News reported.

The research investigated nearly 500 managerial staffs in different fields in China, of which more than 80 percent said that AI is most likely to be applied to financial work, and over three quarters said that AI could be used to provide assistance for their management work in five years.

According to the report, most of the respondents think jobs requiring carefulness and preciseness are more likely to use AI than those requiring professional knowledge, logical analysis, and communication and coordination skills.

Enterprises, therefore, should make full use of innovative technologies and tools such as big data and cognitive computing to get ready for both the opportunities and challenges to be brought by AI, said Xie An, a business partner of Deloitte.

Xie added that China's education sector should also make appropriate adjustments to cultivate talents for the coming era of AI.

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Permalink 04:53:36 pm, by dacare, 454 words, 80 views   English (US)
Categories: News of China

Industrial internet to boost smart manufacturing

China's push to develop industrial internet will inject a fresh impetus to the development of smart manufacturing as well as the integration of the industry and the internet, analysts said on Wednesday.

"Accelerated steps on industrial internet are of significance to China's advanced manufacturing amid fierce competition from abroad. It will help promote deeper integration of the country's real economy with internet, big data and artificial intelligence," said Yang Chunli, a researcher at the China Center for Information Industry Development, a Beijing-based think tank.

The State Council, China's cabinet, earlier this week unveiled a guideline that aims to build three to five industrial internet platforms, which will reach international standards by 2025 and lead the world in key areas by 2035.

Specifically, the country will build about 10 cross-industry platforms by 2020 to accelerate digital transformations at enterprises. The industrial internet refers to a network of combined, advanced machines with internet-connected sensors and big-data analytics. It is designed to boost the productivity, efficiency and reliability of industrial production.

Qianzhan Industry Research Institute forecast that the market size of China's industrial internet sector will hit 10.8 trillion yuan ($1.64 trillion) in 2025, without disclosing the figure for this year.

"To compete with the world in internet and manufacturing, China must foster national platforms, which will act as main pillars of future industrial transformation. Key industries such as automobiles, digital, energy and aerospace are some of the potential areas to establish such national platforms," Yang said.

According to a recent report from Alliance of Industrial Internet, China's industrial internet sector is still in its infancy, as a group of Chinese companies, including Sany Heavy Industry Co Ltd, started tapping into the sector several years ago.

Earlier this year, the Ministry of Industry and Information Technology also selected 206 smart manufacturing pilot projects, of which 28 are related to industrial internet innovation.

Now, around 50 percent of the world's industrial platforms are provided by US enterprises and China still faces a gap with developed countries in terms of function, degree of commercialization and integrity of the whole ecosystem, according to the report.

Yang also noted that a group of companies including Rootcloud and Haier Group did quite well in industrial internet but most of them focus on certain vertical areas with limited users and resources, which still lag behind world-leading platforms such as General Electric's Predix and Siemens' MindSphere.

"However, most industrial platforms across the world are in the early stage of commercialization and are still on the way of exploring the market. In other words, China stands almost at the same starting line with developed countries," Yang said.

"Even though some enterprises started to map out industrial internet long before, they just launched their products and the service system still needs to be improved," she added.

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Permalink 04:54:14 pm, by dacare, 115 words, 65 views   English (US)
Categories: News of China

Coca-Cola opens biggest bottling plant in N. China

Coca-Cola's biggest bottling plant in north China began operating Thursday in Xianghe County of Hebei Province, southeast of Beijing.

The plant will produce bottled water, Coke and Sprite, mainly to serve Beijing, Tianjin, Hebei and neighboring regions, according to Luan Xiuju, president of COFCO Coca-Cola Beverages, a joint venture of Coca-Cola and China's COFCO Corporation.

The first phase of the plant involved investment of 500 million yuan (76 million U.S. dollars).

As Coca-Cola's third-largest market, China offers exciting opportunities and the firm has full confidence in the Chinese market, said James Quincey, President and Chief Executive Officer of Coca-Cola.

Quincey said the firm will continue to work with COFCO to offer new products for Chinese consumers.

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Permalink 01:37:10 pm, by dacare, 108 words, 147 views   English (US)
Categories: News of China

JAC, Volkswagen to jointly develop multi-functional cars

Anhui Jianghuai Automobile (JAC Motors) and Volkswagen Monday signed a memorandum on a joint venture to develop and market multi-function vehicles.

The two companies will discuss possible options for a joint venture which will develop pickup trucks, MPVs and electric cars.

The venture will be half-owned by JAC and half-owned by Volkswagen. It will be based in Hefei, capital city of central China's Anhui Province, hometown of JAC.

It will be the second joint venture between JAC and Volkswagen, as the two companies signed an agreement in Germany in June to establish a 50-50 joint venture to develop, produce and market new energy cars and related mobility services.

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Permalink 02:32:40 pm, by dacare, 148 words, 208 views   English (US)
Categories: News of China

Chinese companies abroad hire more local employees

Chinese companies abroad hired 118,000 more local employees in 2016 than in 2015, according to the country's top economic planner.

The number of local employees working for Chinese companies abroad rose to more 1.3 million last year, said Zhou Xiaofei, deputy secretary-general of the National Development and Reform Commission, at the 2017 International Industrial Capacity Cooperation Forum and the 9th China Overseas Investment Fair, held in Beijing.

China's global outbound direct investment, which includes corporate mergers, acquisitions and start-ups, reached nearly 1.4 trillion U.S. dollars by the end of 2016.

Foreign direct investment (FDI) into the Chinese mainland added up to 1.8 trillion U.S. dollars by the end of last year, according to Zhou.

FDI into the Chinese mainland claimed has been third highest in the world for nine years in a row.

"Foreign-funded enterprises contributed one-fourth of the country's industrial output, one-fifth of its treasury income and one-tenth of urban employment," Zhou said.

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Permalink 03:43:42 pm, by dacare, 567 words, 161 views   English (US)
Categories: News of China

Alibaba places $2.8 bln bet on 'new retail' amid saturated markets

Places $2.8 bln bet on 'new retail' amid saturated markets: analysts

Alibaba Group announced on Monday that it would invest about $2.88 billion into one of China's largest grocery operators as part of a broader drive to integrate traditional offline and online retailing and create a "new retail" environment.

The move represents the e-commerce giant's answer to pressure from rival Inc, which has a big presence in online grocery retailing, as well as to saturated online and physical retail markets, experts noted on Monday.

Alibaba said that, as part of a strategic alliance with Auchan Retail SA and Ruentex Group, it will invest HK$22.4 billion ($2.88 billion) to acquire a total direct and indirect stake of 36.16 percent in Sun Art Group.

Under the alliance, Auchan Retail and Ruentex will hold 36.18 percent and 4.67 percent stakes, respectively, in Sun Art, which operates 446 hypermarkets in 29 provincial-level regions in China, the companies said in a joint statement on Monday.

"The alliance reflects Alibaba's 'New Retail' vision to leverage its Internet-based approach and new technology, while working closely with retail partners to provide a seamless online and offline experience to consumers in China," read the joint statement.

"By fully integrating online and physical channels together with our partners, we look forward to delivering an original and delightful shopping experience to Chinese consumers," Alibaba CEO Zhang Yong was quoted as saying in the statement.

"I think this deal will have a positive impact for both parties. From the Alibaba side, the deal will further strengthen its efforts to integrate online and offline to build the 'New Retail' environment," Veronica Wang, an associate partner at global consultancy OC&C Strategy Consultants, said in a note to the Global Times on Monday.

Wang added that Sun Art could potentially leverage Alibaba's strong digital capabilities, not only at the consumer level but also through the back-end supply chain, to provide a seamless online-to-offline (O2O) experience for consumers in China.

The alliance represents the latest move in Alibaba's aggressive investment in brick-and-mortar retailers in recent years, including electronics retailer Suning Commerce Group and supermarket chain Sanjiang Shopping Club Co. Since 2015, Alibaba has invested more than $9.3 billion in physical stores, Reuters reported on Monday.

Lu Zhenwang, founder of Shanghai Wanqing Commerce Consulting, said that Alibaba's approach in the physical retail market is aimed at "huge competition from" because the latter has built up a big presence in online grocery retailing with its own robust off-line resources such as storage, while Alibaba was focused on increasing independent sellers and brands on its platforms.

"Retail markets both online and off-line have peaked in recent years and growth has been showing signs of slowing, and Alibaba is trying to create a new retail environment that could extend into the O2O retail market," Lu told the Global Times on Monday, adding that Sun Art's strong presence across China could support Alibaba's efforts.

At the end of the Alibaba "New Retail" push is the much larger consumer base than those currently online, and that's a "huge potential" market for Alibaba and for physical stores, according to Liu Dingding, a Beijing-based independent analyst.

"Think about it. There are only 700 to 800 million Internet users in China but the population is 1.3 billion. What about the rest? They are also consumers, so I think that's what Alibaba is after; it wants to reach everyone in China," Liu told the Global Times on Monday.

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Permalink 04:56:56 pm, by dacare, 209 words, 124 views   English (US)
Categories: News of China

Macao restaurants, retailers business performance better than expected

The proportions of restaurants and retailers reporting a year-on-year growth of revenue were higher than those in August, and they were optimistic about the business prospects in October, the Macao Special Administrative Region's (SAR) statistics department said on Sunday.

Latest report by the Statistics and Census Service (DSEC) indicated that the business performance of the interviewed restaurants or similar establishments and retailers in September 2017 was better than expected with improved business conditions.

Among the interviewed restaurants or similar establishments, 45 percent registered a year-on-year rise of revenue in September, up by 12 percentage points from August.

For retail trade, the proportion of interviewed retailers reporting a year-on-year sales increase in September 2017 went up by 10 percentage points from August to 51 percent. On the other hand, 24 percent of the interviewed retailers registered a year-on-year sales decrease, down by 17 percentage points over August.

The DSEC report also said that benefited from the long holidays for National Day and Mid-Autumn Festival in October 2017, the interviewed restaurants or similar establishments expected a slight improvement in their business, with 27 percent anticipating a year-on-year rise in receipts in October, up by 6 percentage points from September.

Retailers were more optimistic about their business prospects in October, with 33 percent predicting a year-on-year sales increase, up by 8 percentage points from September.

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Permalink 11:01:35 am, by dacare, 407 words, 181 views   English (US)
Categories: News of China

Baidu may divest global assets, shift focus to AI

Internet giant Baidu Inc is considering spinning off its international division, as it focuses more on prioritizing artificial intelligence as a growth driver, according to a source familiar with the matter.

Following the closure of its mobile healthcare segment and the sale of its takeout delivery unit earlier this year, analysts said the Beijing-based company is aiming to reposition itself as a leader in artificial intelligence.

"Baidu wants to spin off those businesses that have less relevance to its AI strategy. As for the international unit, the company's executives have been in negotiations about detailed issues, such as the price and shareholding structure," said the person on condition of anonymity.

"When it is divested from Baidu, the international unit is very likely to be renamed," the source added.

He said many issues need to be discussed, so the results may still be pending by the end of this year.

Baidu's international unit has seven offices around the globe. Its products include the mobile ad platform DU Ad Platform, as well as several other mobile applications such as DU Speed Booster and Battery Saver. These international apps have more than 2 billion users in 200 countries and regions worldwide.

"The idea behind this spinning off is to gear up efforts to develop AI, since Baidu lost its luster in the age of mobile internet," said Wang Huie, a senior analyst at Beijing-based internet consultancy Analysys.

Baidu did not confirm this information on Thursday.

The tech giant has been consolidating its core resources on AI-enabled business, in order to keep pace with its faster-growing rivals.

On Thursday, it announced it would roll out driverless buses next year. In addition, it has expanded its business into voice-assisted products and video-streaming entertainment.

Analysts spoke highly of Baidu's strategy to refocus on AI.

"It's a wise move. Baidu would stay ahead of the curve in the AI era, because it boasts massive data acquired from its search engine and rich funds." said Wang, adding that Baidu might axe unprofitable non-core segments in the future.

But she was skeptical about Baidu's plan to realize the mass production of driverless vehicles by next year.

Li Zhi, an analyst with Prestige Securities, said Baidu's concentration on AI would help to shore up its profit margins.

The search engine company's profit in the third quarter more than doubled, compared to a year earlier. In the same period, its total revenue rose to 23.49 billion yuan ($3.6 billion) from 18.25 billion yuan.

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Permalink 02:37:59 pm, by dacare, 240 words, 147 views   English (US)
Categories: News of China

Shanghai’s AI sector set to flourish

Shanghai's artificial intelligence industry revenue will hit 100 billion yuan ($15.2 billion) by 2020, and likely become the city's new growth engine, top government officials said yesterday.

It will be a big market because AI is set to integrate with many sectors, including finance, transport, agriculture, healthcare and medical and automotive industries.

Shanghai plans to incubate AI "unicorns," which are private firms with market value of over US$1 billion each, Chen Mingbo, chairman of the Shanghai Municipal Commission of Economy and Information Technology, said.

The city will build six industrial zones focusing on AI applications, establish a government-backed fund and open up data from government and telecommunications carriers. By 2020, Shanghai will be home to 10 global AI giants, according to a new government AI blueprint released yesterday.

"Shanghai doesn't have BAT (Baidu, Alibaba and Tencent) now but I am confident we will own world-class AI unicorns in the future," Chen said during a city government-held conference.

Open data, high-end talent and eco-systems covering finance and information infrastructure are Shanghai's unique advantages, Chen added.

So far, Shanghai has opened up 17,000 categories of government data containing 260,000 projects, covering e-government and telecom data — more than other Chinese cities have released.

Shanghai firms have invested heavily in intelligent connection, robotics, smart devices and industrial-use sensors based on advanced smart manufacture and chip industries.

Meanwhile, Shanghai is drafting plans to attract overseas AI giants to set up facilities in the city as AI is a "globalization industry," Chen added.

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Permalink 04:13:04 pm, by dacare, 241 words, 123 views   English (US)
Categories: News of China

China's online retail sales near $1t mark in 2017

China's 2017 online retail sales is approaching $1 trillion that will buttress the country's position as the largest e-commerce market in the world, S&P Global Ratings said on Monday.

The rating agency said the estimation is based on record online spending during the country's Singles Day shopping carnival last Saturday. Driven by that, China's online retail industry's annual growth will be 20-25 percent in next 12-24 months.

According to Syntun, a Beijing-based e-commerce data provider, the online sales totaled 254 billion yuan ($38.26 billion) at this year's event.

The huge number of transactions last Saturday indicated that Chinese online retailers still have enough space to grow, financial news portal said quoting Shalynn Teo, an analyst at S&P.

More product categories will go online, and the increasing mobile penetration will promote the online sale momentum, Teo said.

In addition, purchasing online will become more popular in China's third- and fourth- tier cities and rural areas, the analyst added.

China's online retail sales surged 34 percent year-on-year to 5.54 trillion yuan in the first 10 months of this year, surpassing the 10.3 percent increase in overall sales of consumer goods, official data showed on Tuesday.

In next 12-24 months, the intense competition will put pressures on the Chinese online retailers, Teo warned, adding that the pricing power in addition to rising marketing and delivery expenses will lead the industry's margins to slip.

"But higher growth and improving operating leverage will ease the risks," Teo said.

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Permalink 12:15:21 pm, by dacare, 457 words, 84 views   English (US)
Categories: News of China

Labor boom prompts call for additional vocational training

A technician of CRRC Qingdao Sifang Co Ltd, a high-speed train manufacturer, gives instructions to students at a vocational school in Shandong Province.

The labor market needs more vocational education to lift the number of skilled workers in China, experts said at a recent seminar.

According to the Ministry of Human Resources and Social Security, the working population in China will face a sharp drop to 700 million by 2050 from 911 million in 2015.

Such a drop is sparking the demand for vocational education and creating a profound market. At the seminar held by JP Morgan, experts addressed on the importance of vocational education.

"The speed of industrial upgrading is going beyond expectation," said Hao Jianbin, director of the Entrepreneurship and Employment Research Center at the Ali Research Institute. "It raised the salary for low-end labor and pushed the manufacturing factories (that) required less skills moving abroad."

He said it is not very likely the quantity of labor can increase in the short run. Hence the market needs to see more investment in human resources to train more skilled workers to make up for the shortfall.

According to Qianzhan Industry Research Institute's report, the market for vocational education in 2015 was 453.5 billion yuan ($68.3 billion), and the number is expected to double by 2020, creating a trillion-yuan market.

To promote people's employability in the fierce job market, some vocational education has already seen a growing volume of students. Emerald Group, an education institution focusing on inter-net technology and digital entertainment, is one example.

"We have seen a rising demand for internet engineers in the domestic job market every year since it is a very prospective occupation," said Chen Shengdong, chief executive officer of the group. "More and more graduates come here to enhance their competitive edge in the labor market."

Chen said the institution will constantly change their course syllabi according to what is hot in the labor market, thereby serving the companies that are upgrading but struggling to find suitable employees.

From January to August this year, net profit of the group has reached 50.25 million yuan. The group is expected to bring in an annual 90 million yuan in net profit and predicts a stable 30 percent growth rate during the next two years.

Education in the high-end financial sector is also booming. Earlier this year, PricewaterhouseCoopers, or PwC, started its You Plus Special Training Program in Shanghai's Lujiazui Financial City.

According to PwC's report, more than 80 percent of senior executives in Chinese corporations said it is hard to find talent with practical problem-solving skills.

The full-time PwC program lasts for 12 months and can cost up to 300,000 yuan.

Cai Xiaoying, general manager of You Plus, said such training will help solve the imbalance between the supply and demand in human resources for Chinese corporations.

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Permalink 01:40:27 pm, by dacare, 206 words, 188 views   English (US)
Categories: News of China

China's Internet of Things output reaches 930 bln yuan in 2016

China's industrial output in the Internet of Things exceeded 930 billion yuan (140 billion U.S. dollars) in 2016, a Ministry of Industry and Information Technology official said Thursday.

The value was almost six-times the level in 2009, when the sector saw 170 billion yuan of output, said Zhu Wan, deputy head of informatization and software service at the ministry, at the opening of a China Internet of Things conference in Fuzhou, capital of Fujian Province.

"Industrial chains have been formed in chips, sensors, terminal devices, application software, system integration and communication networks, with over 100 million machine-to-machine terminals set up via the mobile communication network," Zhu said.

In June, the ministry announced faster development of the Internet of Things infrastructure, and innovation in Internet of Things pilot zones. The zones aim to promote the Internet of Things in public safety, health care, urban management and well-being services.

"Accomplishment has been primarily achieved at the pilot zones, such as Fuzhou economic and technical development zone, with the Internet of Things integrated in fields of retail, transport, environmental protection, medical care and power grids," she said.

Zhu said the ministry would help companies that were influential and industry leaders, as well as encourage the creation of small and medium-sized Internet of Things startups.

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Permalink 02:46:29 pm, by dacare, 230 words, 95 views   English (US)
Categories: News of China

Over 1,000 new products to debut at China hi-tech fair

More than 1,000 new products will be released at the China Hi-tech Fair 2017 next week in the city of Shenzhen in Guangdong Province, authorities said Wednesday.

Scheduled for Nov. 16 to 21, the fair is themed "Innovation-driven development and supply quality upgrade," said Gao Yuyue, deputy secretary-general of Shenzhen city government, at a press conference.

More than 50 roadshows have been arranged for the fair to introduce new products, including an Intel robot 3D sorting system and a flexible rechargeable battery developed by the Chinese Academy of Science Institute of Advanced Technology.

The fair will have 12 exhibition zones, covering a total area of 120,000 square meters, said Gao, also deputy secretary-general of the fair's organizing committee

He said hi-tech products in environmental protection, biological sciences, new energy, new material, military and civil integration, and sensor technology would feature in the zones.

Around 100 technical meetings have also been scheduled on topics such as artificial intelligence, energy saving, aeronautics and astronautics, the Internet of Things, new material and smart cities.

The fair will be attended by more than 3,000 registered exhibitors from over 30 countries, including 27 Belt and Road countries.

The annual China Hi-tech Fair was inaugurated in 1999, and is the largest and the most influential state-level international fair in science and technology in China.

The Chinese ministries of commerce, science and technology, industry and information technology, agriculture, and the National Development and Reform Commission are among the co-organizers.

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Permalink 04:53:26 pm, by dacare, 261 words, 185 views   English (US)
Categories: News of China

China's cloud computing market projected to reach 686.6 bln yuan by 2020

China's cloud computing industry will grow by at least 30 percent year on year on average in the coming five years, the latest industry report showed.

By 2020, the aggregate market size of the country's cloud computing industry is expected to hit 686.6 billion yuan (about 103.6 billion U.S. dollars), according to the Report of Prospects and Investment Strategy Planning on China Cloud Computing Industry (2017-2022) published by Forward Intelligence Co., Ltd., a special market research institute.

The country's cloud computing industry has experienced robust growth since 2010 and its market size reached 178.2 billion yuan in 2016, up 18.8 percent year on year, said the report.

The growth was propelled mainly by public departments, who serve both as the customer and the government, as well as by telecom operators, the service provider.

Cloud-based infrastructure or infrastructure-as-a-service (IaaS) is playing a key role in the industrial development, while factors include the adoption of platform-as-a-service (PaaS) and software-as-a-service (SaaS) are also growing fast, according to the report.

The central government attaches great importance to using emerging information technology, including cloud computing and the Internet of Things, to shore up the digital economy, as information consumption, mobile payments and e-commerce grow rapidly in the country.

The cloud computing market is expanding fast worldwide. Last month, American market research firm Gartner's latest worldwide public cloud services revenue forecast showed the cloud computing market would reach 411 billion U.S. dollars by 2020, driven by robust growth of services including IaaS, PaaS and SaaS, according to media reports.

Cloud computing, also called on-demand computing, is the delivery of on-demand computing resources over the internet.

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Permalink 03:22:48 pm, by dacare, 324 words, 120 views   English (US)
Categories: News of China

China expects favorable trade environment in 2018

China's foreign trade environment will remain favorable in 2018, although the trade protectionism risks still keep growing, the commerce ministry said on Monday.

The Chinese government is implementing policies to cool the property sector and deal with debt risks in the economy. China's stronger than expected trade performance this year has provided support for the economy.

"Looking forward to 2018, China's foreign trade conditions are generally favorable as the global economy steadily recovers, and China's economy grows smoothly," the ministry said.

"But there are still many external risks and uncertainties with economic and non-economic factors intertwined. As trade protectionism continues to grow, domestic costs also continue to rise. As a result, pressure on business has increased, and the development of China's foreign trade continues to face many difficulties and challenges."

After several years of contraction, China's foreign trade has recovered this year, even though the government has not set a specific target for international trade growth in past two years.

Growth in foreign trade may slow down, but will remain at a high level in the fourth quarter, a ministry report said.

Economists expect China's exports have risen 7.2 percent on-year in October, slower than 8.1 percent the previous month.

Economists are positive about the Chinese export outlook due to the improvement in the global economy. Capital Economist Evans-Pritchard, still feels that China's imports may face "a sharper slowdown," because of that the support to the economy from a loose fiscal policy reverses. And local governments are forced to rein in spending in the final months of the year to meet budget targets.

With a GDP growth of 6.9 percent in the first half, China's economy is also on firmer footing this year, contributing to brisk import growth.

The IMF raised its forecast for China growth for the fourth time this year in its latest report. The IMF predicts that China's economy will grow 6.8 percent this year, and 6.5 percent next year, both 0.1 percentage point higher than its previous forecasts.

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Permalink 04:39:49 pm, by dacare, 365 words, 125 views   English (US)
Categories: News of China

Sodexo Group strengthens integrated support services for mainland corporates

Sodexo Group, a French services giant specializing in traditional segments such as catering and engineering, is expanding in the Chinese mainland market, its largest target in Asia, by enhancing its integrated corporate services in 50 Chinese cities.

Such services include asset lifecycle management, workplace setting improvement, facility and equipment maintenance.

As China opened up its services sector to strengthen industry, Sodexo started developing its business in more mid-western cities. Its on-site offerings now include business support services, lifestyle services and scientific services.

Optimal use of human resources; design, installation and maintenance of aesthetically appealing entrance areas, inner courtyards, terraces and floral decoration; upkeep of sophisticated buildings ... all these functions are now performed by Sodexo for its clients.

"We will cater to diverse segments as our clients are increasing," said Bruno Vaquette, CEO of Sodexo China. "For example, we're introducing wellness services in China as part of our 'Mindful' project."

The services, including staff training courses, have already become popular in some metropolises, thanks to agreements with corporate icons such as Inc and St Luke's Hospital in Shanghai.

The Sept 1 agreement with JD was for upgrading Sodexo's supply management.

Sodexo's wellness services include entertainment sessions and enjoyable short breaks during off-work periods, which are designed to raise awareness of fitness among employees of its corporate clients.

"Chinese companies have recognized the significance of employees' fitness to their business, and are investing more to improve the quality of their life. Their leaders know that employees' happiness is key to the company's success," Vaquette said.

"We will respond to industry trends and needs via innovation and more services."

With 425,000 employees worldwide, Sodexo takes the 19th rank among the world's largest employers and figures in the Global 500 list. Its China unit company employs 12,000 staff.

"Our Chinese on-site employees are all local people, and are supported by thousands of in-house experts, which helps in delivering services in time as per clients' demands," said Vaquette.

Paul Junck, managing director of the Luxembourg Private Equity & Venture Capital Association, said, "Opening up the services market is mutually beneficial for foreign investors and Chinese domestic players. Companies' development is stimulated by competition between players, and industry standards rise thanks to such development."

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Permalink 04:28:01 pm, by dacare, 270 words, 170 views   English (US)
Categories: News of China

Employment demand sees negative growth in first tier cities

Employment demand across China's first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen saw negative growth year-on-year for the first time, according to a report issued on Thursday by China Institute of Employment Research with Renmin University of China.

The CIER index, designed to monitor China's job climate, rose to 2.43 in the third quarter from 2.26 in the second, indicating continuous improvement in employment.

Increasing recruitment demand among enterprises, decreasing job-hopping in the job market and relatively less job hunting among graduates led to the rising CIER index, said Zeng Xiangquan, director of China Institutefor Employment Research.

The CIER index shows a progressive increase trend in China's first-tier, emerging first-tier, second-tier and third-tier cities, with that of first-tier cities seeing a slight drop over last month.

Employment demand in first-tier cities saw year-on-year drop for the first time, at 7 percent, according to data by recruitment website Zhaopin.

Urban resource optimization, a declining registered permanent residence quota and relocation of outdated industries are the main reasons behind decreasing demand, Zeng said, adding that the trend would continue.

More job applicants are supposed to flow to emerging first-tier cities, he said.

In the IT/Internet sector, which saw the highest employee increase, employment demand in emerging first-tier cities and third-tier cities increased 121 percent and 82 percent respectively, much higher than the national average level of 60 percent, while demand in first-tier cities saw negative growth, with a fall of 2 percent.

Employment in Northeast China saw and uptrend , with the CIER index rising to 1.42 from 1.33 in the second quarter. Employment demand in this region increased 57 percent over last year, much higher than 33 percent in East China.

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Permalink 04:54:24 pm, by dacare, 206 words, 114 views   English (US)
Categories: News of China

Xi'an to build new energy auto base

An intelligent manufacturing headquarter for new energy vehicles is to be laid in Xi'an High-Tech Industries Development Zone, according to an agreement signed on Oct. 30.

Thanks to the combined efforts of the Xi'an municipal government and the Skywell New Energy Vehicle Group, a total investment of 10 billion yuan ($1.5 billion) will be used to establish a manufacturing base that will have a profound influence across northwestern China.

Liang Gui, vice-governor of Shaanxi province, extended congratulations to the successful signing of the project, noting that the new energy vehicle industry is a typical sunrise industry which will likely spur the development of the real economy and bring unprecedented prosperity to the city.

The partnership with the leading commercial automobile manufacturer is bound to further upgrade the new energy car industry chain and enhance core competence.

Liang urged the government departments to actively support the construction of the base, and create a favorable environment to achieve a win-win result.

Chairman of the Skywell Huang Hongsheng appreciated the help from the authority and gave recognition to Xi'an's strategic role in the development of West China.

The company will exert its edge in research and production, boost related industries to settle in Xi'an and contribute to the economic and social progress.

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Permalink 04:54:45 pm, by dacare, 114 words, 83 views   English (US)
Categories: News of China

Shanghai to host first China International Import Expo

The first China International Import Expo, or CIIE, will be held from November 5 to 10, 2018, in Shanghai to further optimize the country's trade structure with rest of the world, the Ministry of Commerce announced.

The ministry established the China International Import Expo Bureau earlier this week to gear up preparation for the first expo.

Fu Ziying, China's international trade representative and vice-minister of commerce, said the expo is expected to host businesses from more than 100 countries and regions.

The sponsors of the expo will be the Ministry of Commerce and the Shanghai Municipal Government.

The total exhibition area of the CIIE will exceed 240,000 square meters, covering both national trade and investment fair and business fair.

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Permalink 04:55:37 pm, by dacare, 277 words, 82 views   English (US)
Categories: News of China, Manufacturing & Industry

Factory output posts slowest rise in 4 months

China's manufacturing activity was stable last month but production increased at its slowest rate in four months, a report released yesterday showed.

The Caixin China General Manufacturing Purchase Managers' Index stood at 51 for October, the same as September, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co Ltd.

A reading above 50 indicates expansion, while a reading below reflects contraction.

Sub-indices showed that new orders rose slightly faster, while output growth fell for the third straight month.

At the same time, companies continued to shed staff amid company-downsizing and efficiency-raising efforts, the report said.

The sub-indices for input costs and output prices both eased from the previous month but remained rather high.

"China's manufacturing sector expanded steadily in October," Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group said. "But the stringent production curbs imposed by the government to reduce pollution and relatively low inventory levels have added to cost pressures on companies in midstream and downstream industries, which could have a negative impact on production in the coming months."

Released yesterday, the official PMI in October fell to a three-month low of 51.6.

Divergence of the official data from Caixin data is common as the official manufacturing PMI survey covers 3,000 large and small companies, while the Caixin PMI covers 500, with a focus on small and medium sized businesses.

Wang Tao, chief China economist of UBS, said she expected October data to show softer activity with weaker industrial production and property investment, lower export growth, and largely stable overall fixed asset investment growth.

She said consumer inflation may be warmer last month but factory gate inflation was likely to be cooler.

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Permalink 04:23:35 pm, by dacare, 396 words, 163 views   English (US)
Categories: News of China

Chinese entrepreneurs' views on wealth changing: study

Chinese entrepreneurs' views on wealth are changing significantly as their fortunes increase, China National Radio reported on Monday, citing a new study.

Some 568 billionaires from greater China made the Hurun Global Rich List released early this year, the highest number from any country in the world and 33 more than the United States with 535. Among them, 470 were from the Chinese mainland, and 100 from Beijing.

A separate survey by the All China Federation of Industry and Commerce showed the total assets of the top 500 Chinese private enterprises increased to 17.3 trillion yuan ($2.6 trillion) in 2015 from 434.6 billion yuan in 2001, an average annual growth of 30 percent. The average asset value of these enterprises increased to 34.6 billion yuan in 2015, from 860 million yuan in 2001.

The latest study, jointly conducted by the Dacheng Enterprise Research Institute and the Social Sciences Academic Press (China) in Beijing, found private entrepreneurs now focus more on the relationship between the interests of the nation, their own and those of their enterprises, attaching greater importance to sustainable growth, competitive edge and contributions to society.

In the past 40 years since China began its reform and opening up, the number of private enterprises has been rising rapidly, bringing increasing fortunes to entrepreneurs.

The study attributed the rapid growth of Chinese private entrepreneurs' fortunes to their utilizing various opportunities with regard to policy, market, resources and business environment. Their actions, on the whole, conformed to laws, regulations and policies of the country, it added.

"Entrepreneurs' money is not their money," said Jack Ma, the founder of e-commerce giant Alibaba Group. "Some people said I was the richest person in China, but I think the 'fu ' in 'shouru' (the richest) actually means the 'fu' in 'fuze' (to take responsibility)." His company's charity activities now cover four fields, including eco-environmental protection as well as health and medical care.

Chen Yongjie, vice president of Dacheng Enterprise Research Institute, said the change in entrepreneurs' views on wealth, together with their charity campaigns, represent an important characteristic of China's economic, social and cultural development for the present and future.

"Chinese entrepreneurs' charitable activities have gradually grown into a trend, which is having and will continue to have a great impact on narrowing the wealth gap and adjusting China's income distribution and social conflicts," said Chen.

The study suggested China improve laws and regulations to allow entrepreneurs to reasonably, intelligently and effectively use and manage their fortunes.

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Permalink 03:24:17 pm, by dacare, 498 words, 73 views   English (US)
Categories: News of China

Why is 6 pct growth achievable for China's economy?

China is determined to put growth quality before pace, but that will not hold the economy back from growing faster than most of other countries in the coming decade, according to experts.

In a report delivered to the 19th National Congress of the Communist Party of China (CPC), the country's leadership called it "a new historic juncture in China's development," as the economy has been transitioning from a phase of rapid growth to a stage of high-quality development.

In the eyes of Chi Fulin, head of the China Institute for Reform and Development, that does not mean the growth rate will be mediocre.

Over the next five to 10 years, China's economy will be able to achieve at least 6 percent of annual growth thanks to improvement in industrial structure, upgrading of consumer spending and progress of urbanization, he said.

In the past five years, the global economy expanded at an average rate of 2.6 percent, while developing economies grew at 4 percent.

China has set 2020 as the target to finish building a moderately prosperous society in all respects, just one year before the CPC celebrates its 100th anniversary.

Chi estimated that by the end of 2020, China's economic rebalancing will yield eye-propping results.

By then, the value of the country's service sector will increase to about 50 trillion yuan (7.58 trillion U.S. dollars) from 38.4 trillion yuan recorded in 2016. Retail sales of consumer goods will also expand to about 50 trillion yuan from 33 trillion yuan recorded in 2016.

The integrated development of urban and rural areas is expected to generate investment and consumption of nearly 100 trillion yuan, which will be the most remarkable bonus for China's development in the medium to long run, he said.

Over this period, China's contribution to global economic growth would remain at around 30 percent. More than half of its population would become middle-income earners.

"A successful rebalancing of the world's second largest economy would not only upgrade China's economy, but also boost global economic recovery and growth," Chi said.

In the future, China's economic restructuring will be advanced together with opening up, of which the Belt and Road Initiative and the development of service trade and free trade zones will be the focuses, he said.

The IMF recently raised its forecast for China's economic growth in 2017 and 2018 to 6.8 percent and 6.5 percent respectively, both higher than the earlier forecast in July.

For an economy with a total volume of over 11 trillion U.S. dollars, maintaining such high growth is not easy, Chinese Vice Finance Minister Zhu Guangyao said.

China's stable economic growth mainly stems from major progress in economic reforms, particularly supply-side structural measures, and the government's ability to maintain a stable macroeconomic policy, he said.

While gains from structural reforms will come with a time lag, they will have a positive impact on China's economic growth in the medium term, said Changyong Rhee, director of the Asia Pacific Department at the IMF, adding China's growth has also provided ample opportunities for Asia to maintain its growth over the last ten years.

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Permalink 04:46:09 pm, by dacare, 1252 words, 185 views   English (US)
Categories: News of China

Cross-border e-commerce platforms are the stars of China's ever-rising foreign trade

? Chinese government encouraging the development of cross-border e-commerce along Belt and Road

? Such platforms are developing rapidly in China and enjoying the benefits of new policies, including tax breaks and duty-free warehouses

? Customers appreciate the convenience and affordability of buying authentic foreign products online

Whenever Liu Lin finds herself missing England, where she has previously studied, she just hops onto a cross-border e-commerce platform to buy herself some British-made merchandise.

"Some of the products I used to purchase there, such as a brand of combs made in England, aren't sold in China, so I buy them from overseas," she said.

Shopping for foreign products has never been easier for Liu and other Chinese like her. But imported makeup, food and clothes from other countries can now all be obtained with one swipe of the phone.

China's cross-border e-commerce platforms have developed rapidly in just the past few years. Many online shops both in and outside of China, especially those from Belt and Road countries, are taking advantage of this phenomenon, with both the foreign retailer and the Chinese shopper benefiting.

Cross-border e-commerce is now a bright, shining highlight of China's ever-growing foreign trade. According to data from the China Electronic Commerce Association, in the first half of 2017, China's cross-border e-commerce trade reached 3.6 trillion yuan ($541.87 billion), up 30.7 percent from last year.

China has also released a series of new policies to further develop cross-border e-commerce, such as increasing the efficiency of products going through customs and supporting enterprises that establish overseas sales channels.

Selling by the millions

In September, Chinese premier Li Keqiang said at an executive meeting of the State Council that there needs to be more development of cross-border e-commerce on a bigger scale, including encouraging enterprises to develop through Belt and Road.

Data shows that the trade volume of countries along the Belt and Road accounts for a quarter of China's entire foreign trade. In this case, cross-border e-commerce can be a large boost for trade.

Shops both in and outside of China are benefiting from being placed on such platforms. At a recent cross-border e-commerce convention, the director of Jilin's Guhetai Machinery told Economic Information Daily that 80 percent of his company's clients were found via the platform.

In the 18 months since Guhetai Machinery first started using e-commerce platforms, the security safes it produces have been sold to numerous Belt and Road countries. According to a new research report from Chinese e-commerce giant Jingdong (JD), many Chinese companies have successfully extended their brands overseas.

Electronics brand Puppyoo, for instance, became the highest-selling small electronics seller after joining JD's cross-border e-commerce platform. Local wig maker Allrun has also successfully established clients in 92 countries. Earphone brand Bluedio and male clothing designer Freesoldier have likewise successfully exported through the platform.

Foreign companies are also placing themselves on Chinese e-commerce platforms in order to make direct contact with Chinese customers. By the first half of 2017, Internet giant NetEase's platform Netease Koala successfully established cooperation with 279 foreign brands along Belt and Road, with a sales volume of nearly 200 million yuan, according to Wang Zheng, senior press relations manager for Koala.

Famous foreign companies, such as Korean cosmetics titan L&P, Panasonic and Herobaby milk formula from Europe, have also signed contracts with Koala. The platform promoted Thailand's latex pillows and successfully doubled its sales in China in 2016. Koala was awarded by the Thai embassy in China for its success, Wang said.

The JD report also pointed out that many smaller countries prefer to focus on selling their specialties to China via these new platforms. A few examples are cotton products from Egypt, black tea from Sri Lanka, jade from Myanmar and rose essence oil from Bulgaria.

In 2016, companies from Belt and Road countries were on top of the list for increasing sales to China. Countries such as Bangladesh and Lithuania realized a 60 percent increase in sales compared to the year before.

Among the products being sold, food from the Belt and Road countries is the most popular. Fruits and vegetables are also rising stars in China's cross-border e-commerce. In 2016, Mexican avocados, Chilean cherries and Filipino dried mango were selling by the millions to Chinese online shoppers.

Authentic products

For Chinese consumers in years and decades past, the only way to buy foreign products without leaving the country was purchasing through an agent. But this way of shopping was very slow, sometimes taking months, and there was no way to ensure authenticity. Furthermore, agents charged considerable markups for their products, Liu said, sending the entire sector into chaos.

A local shopper surnamed Cheng told the Global Times that, for the past several years, she has been using Chinese e-commerce platforms to purchase products from Europe, U.S. and Australia. Specifically, she uses Xiaohongshu and Koala to buy cosmetics and handbags from those countries.

She said she appreciates the discounted prices, which are far cheaper than the same products being sold at brick-and-mortar foreign stores in China, as well as its convenience. "I can place an order without going out the door," she said.

Liu agrees that e-commerce platforms have made shopping in China much more convenient. In the past, when she wanted something from abroad, she'd either have to wait for a friend to visit that country or wait weeks and even months for old-school Western e-retailers like Amazon to ship them. Today, anything can be had in a matter of days.

"Sometimes, when I watch TV shows and see stars wearing foreign-brand clothes, I just hop on a platform like Koala and buy the same outfit," she said, adding that due to Taobao's reputation for selling counterfeits, fakes and knockoffs, she'd prefer to pay a bit more for the peace of mind that a trusted seller provides.

Government policies support cross-border e-commerce by cutting down on costs and increasing efficiency, Wang said. The government offers a 30 percent tax discount for cross-border e-commerce platforms, which allows local consumers to enjoy authentic, high-quality products at affordable prices.

The government is also now allowing cross-border duty-free warehouses. Zhang Chao, deputy director of startup, told media his company has benefited from these new governmental policies. An important feature of Xbniao, according to Zhang, is that it has overseas warehouses and operation centers, which allows them to ship products to 45 countries and regions around the world.

As the government supports Belt and Road construction, it also supports cross-border e-commerce companies establishing overseas warehouses along Belt and Road logistics hubs; platforms that already have warehouses, such as Xbniao, have a competitive edge.

There are problems that still need to be tackled. According to media reports, language is still a big barrier preventing Chinese companies from increasing their business in foreign countries through e-commerce. Media has reported on companies recruiting talents who speak the languages of smaller countries.

"It is shown that the government supports and encourages the development of cross-border e-commerce business and also regulates it," Wang said. "As policies improve and develop, the market is sure to welcome new development. Right now, the industry has become an important force in increasing domestic consumption and has obvious boosts on the domestic economy."

Belt & Road Best Sellers

Best-selling "Made-in-China" products along the B&R:

Cellphones, computers, Internet products, electronic components, furniture and textiles

Made-in-China products with the highest overseas sales growth:

Cars, food, sports products

B&R countries with the highest sales growth in China:

Lithuania, Montenegro, Bangladesh, Oman, Tajikistan

Best-selling products from B&R countries:

Food, wine, textiles, fruits, clocks and watches, sea food

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Permalink 04:47:26 pm, by dacare, 187 words, 88 views   English (US)
Categories: News of China

Shandong tightens investment regulations on vehicle production, overcapacity industries

East China's Shandong Province said Wednesday it has tightened its investment regulations, including a move to not approve new gasoline-powered car producers.

Meanwhile, new-energy vehicle manufacturers are now required to have power system and whole-vehicle research and development capacities before receiving government approval for establishment, the provincial government said.

China has been offering subsidies for new-energy vehicle purchases in a bid to increase the numbers of cleaner vehicles on the road.

It has signalled the intention to join countries such as Britain and France with plans to ban the manufacturing and sales of fossil fuel cars.

Xin Guobin, China's vice minister of Industry and Information Technology, said in September that China has begun researching a timetable to phase out the production and sales of fossil fuel cars.

The provincial government also announced that it would no longer approve new plants in industries plagued by overcapacity, such as steel, electrolytic aluminum, plate glass and shipbuilding.

In addition, it will not approve capacity increases for coal production companies, and new dangerous chemicals projects will now require investment of more than 300 million yuan (45.2 million U.S. dollars) to receive approval.

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Permalink 04:48:38 pm, by dacare, 367 words, 95 views   English (US)
Categories: News of China, Manufacturing & Industry

Tesla eyes Chinese campuses as it continues hunt for top talent

The Tesla logo is pictured on Feb 5, 2014 in its first Chinese mainland show room in Beijing.

Tesla Inc is conducting a nationwide campus recruitment drive in China as part of its efforts to get better established in the world's largest new energy car market.

The United States-based electric carmaker has been conducting job fairs at four universities in Beijing, Shanghai, Guangzhou and Chengdu to recruit forthcoming graduates to work in about a dozen tier-1 and-2 cities in the country.

"We conducted campus recruitment just as we did last year, with a focus on finding potential recruits for sales, service, IT and intern positions. We have not determined how many people will be hired yet," said Tesla in a statement. The Tesla job fairs run until this Friday.

There are eight posts available for new graduates, according to Tesla's page on popular recruitment website 51job. In total, Tesla is hiring people for 79 posts for its business in China.

It has 32 experience centers and eight service stores in the country but did not disclose the number of current employees.

This campus recruitment drive is unlikely to have any direct connection with Tesla's localization efforts, as most jobs available are sales and service-related instead of engineering and production.

Tesla had confirmed earlier that it was in talks with the Shanghai city government to establish a manufacturing facility.

The company has been growing steadily in China, with its revenue more than tripling from 2015 to 2016. It delivered 13,500 cars in the first nine months of 2017, more than double from a year earlier, according to statistics from the China Passenger Car Association.

The company is now looking to build on its current success in China, home to about 1 million new energy cars by the end of 2016.

On Monday, the carmaker unveiled in Shanghai its largest charging station in the world, which can accommodate 50 Tesla cars at the same time.

To date, Tesla has 700 charging posts in 170 cities in the country, with the number expected to rise to 1,000 by the end of the year.

Earlier this month, Tesla announced that it has modified the charging hardware for Tesla vehicles built for the Chinese market so that they can make use of the public charging infrastructure.

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Permalink 04:57:41 pm, by dacare, 295 words, 160 views   English (US)
Categories: News of China

Shanghai submits preliminary plan for free trade port to central gov't

Shanghai has submitted to the central government the first draft of plan to establish a free trade port in the city, the Shanghai Securities News reported on Saturday.

The plan falls under the China (Shanghai) Pilot Free Trade Zone (FTZ) Scheme announced by the State Council, China's cabinet, in March 2017, and it incorporates the Yangshan and Pudong airport zones.

The free trade port will adopt information technology to strengthen its supervision systems, which will reduce risks and simplify goods entry management measures, the report said.

The port will establish and improve a system for risk prevention and control purposes while staying in line with international practices of financing, foreign exchange, investment and visa controls.

''The biggest breakthrough is (a series of) preferential measures for import and export tariffs so as to meet China's upgraded consumption demand and improve export competitiveness,'' one source told the Shanghai News Securities.

"For instance, industry sectors at the port, such as cosmetics and food, will be moved from a single model of imports and exports of finished products into a full supply chain covering raw materials, procurement, production and sales," the source said.

"The move will facilitate the improvement of domestic brands' competitiveness when 'going global.' At the same time, domestic enterprises will drive further transformation and upgrading, reduce costs and offer better services for consumers," the source said.

"Shanghai's free trade port is part of our national strategy. It also exemplifies innovation and breakthroughs in free trade zones," Sun Yuanxin, deputy director of the Research Institute for the Shanghai FTZ at the Shanghai University of Finance and Economics, was quoted as saying in the report.

"The free trade port is also an important test of the waters for the city as the municipal government deepens its reforms."

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Permalink 02:47:41 pm, by dacare, 318 words, 168 views   English (US)
Categories: News of China

Economy defies doomsayers

China's economic growth looks set to accelerate this year, the first time in seven years, after it registered a 6.8 percent year-on-year GDP growth in the third quarter. Given that growth trend has been achieved against the backdrop of both domestic structural reforms and the still fragile global economic recovery, it showcases the exceptional resilience of the world's second-largest economy. [Special coverage]

China's GDP growth in the first three quarters has been in stark contrast to the scenario depicted by many doomsayers late last year. Even more reassuring, while a variety of economic indicators are showing signs of steady growth, the country has also made much headway in carrying out the tough task of economic restructuring.

Industrial output growth, for example, increased to 6.7 percent in the first three quarters from 6 percent a year ago, with high-tech manufacturing and equipment-making industries, which are the backbone of a country's industrial development, showing brisk performance. The growth in their output was 13.4 percent and 11.6 percent, respectively, 6.7 percentage points and 4.9 percentage points higher than that of overall industrial output.

Another case in point is retail sales growth, which remained strong at 10.4 percent in the January-September period. Although that was unchanged compared with a year ago, online sales increased by 34.2 percent, 8.1 percentage points higher than a year ago, indicating the bigger role played by this new driving force for consumption.

In terms of the supply-side structural reform, China has continued to reduce its leverage levels and the country's investment in environmental protection, public facility management and agriculture all registered much higher growth than overall investment expansion.

Such encouraging fundamentals have been achieved thanks to the government striving for innovative, coordinated, green, open and shared development.

As Xi Jinping, general secretary of the CPC Central Committee, said on Wednesday, while expansion of economic scale remains important, top priority must be given to the quality of growth.

It is a focus that will ensure sustainable long-term growth.

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Permalink 04:13:02 pm, by dacare, 198 words, 121 views   English (US)
Categories: News of China

Mid-size firms bullish over next 3 years

Medium-sized companies on the Chinese mainland are confident of the business growth over the next three years and are focusing on expanding in the domestic market, according to a HSBC report.

Generally, medium-sized companies surveyed saw both their revenue and profit margin to grow steadily in the next three years, the report said.

"As an important part of the national economy, mid-market companies have their own features in business development and market strategies." said Fang Xiao, vice president and director of commercial finance of HSBC China.

"Different from mega-sized companies which are actively expanding in global markets, we found that many mid-sized companies focus more on seizing the opportunities arising from China's economic upgrading and transformation and digging deep to tap the potential of local markets."

One-third of the mid-sized companies on the mainland highlighted tapping market potential as the main channel to increase revenue. This option topped expanding the domestic market which came in second at 24 percent while improving operational efficiency ranked third at 19 percent, according to the report.

Meanwhile, 61 percent of medium-sized enterprises on the mainland believe that investing in technology can bring new business opportunities and 54 percent see green development as the way to survive.

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Permalink 04:27:53 pm, by dacare, 362 words, 113 views   English (US)
Categories: News of China

More firms set to beef up travel budgets

Along with rising business confidence, as many as 31 percent of Chinese companies expect to increase their travel budgets over the next 12 months, surging from the 17 percent of respondents that predicted budget increases last year, a survey showed.

The 2017 China Business Travel Survey was published by the CITS (China International Travel Service) American Express Global Business Travel on Tuesday. It revealed that 40 percent of the polled organizations planned to expand their budgets to tap into the opportunities presented by the Belt and Road Initiative.

China became the country with the largest business travel expenditure of $317 billion in the world after overtaking the United States in 2016.

The survey indicated that 75 percent of China's business travel spending was made domestically, but Tan Haoling, vice-president of CITS American Express Global Business Travel, said they have also noticed the trend that many Chinese companies are looking outward for opportunities in global commerce.

"China's Belt and Road Initiative could benefit Chinese organizations with an international travel program (43 percent of companies), as well as those with a regional program (21 percent of companies)," said Tan.

The survey also highlighted the importance of business travel as a key driver of revenue for many Chinese organizations, with 90 percent reporting that increased client-facing travel would likely increase revenue, and 53 percent of the respondents believed an increase in client-related travel would improve overall revenue by between 10 percent and 20 percent.

"The research tells us Chinese companies believe there are savings to be identified within their current travel budgets, and that many intend to put measures in place to realize some of these savings next year," said Tan, who added inflexible travel policies (30 percent) and complex reimbursement processes (23 percent) are the top two complaints for business travelers.

The barometer is an annual report detailing the status of, as well as forecasts for, China business travel. This year's report surveyed executives from 150 companies in China, in a variety of enterprises in major Chinese cities.

CITS American Express Business Travel is a joint venture between American Express and CITS.

A white paper on China's business travel by Ctrip, China's largest online travel platform, published earlier this year, projected China's market will continue to see double-digit growth this year.

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Permalink 02:37:28 pm, by dacare, 290 words, 127 views   English (US)
Categories: News of China

Shanghai to help foreign-invested R&D centers

Shanghai will offer financial incentives and greater access to government-led projects for foreign-invested research and development centers as it bids to turn itself into technology and innovation center.

Foreign investors are encouraged to set up R&D centers and incorporate existing ones into their global R&D center as the government will offer a one-off 5 million yuan ($759,000) for foreign-invested R&D centers employing more than 100 employees, according to new rules released yesterday.

The R&D centers will also receive subsidies to cover as much as 30 percent of the rent for three years. Rent subsidies will also be granted for R&D centers if they share their resources with small businesses and entrepreneurs.

The government has also vowed to lift the proportion of foreign-invested R&D centers within state and city-level technical centers, and offer as much as 3 million yuan per project for city-level technical centers engaged in lifting basic innovative capability, breakthrough of core technology, and smart manufacturing.

"Promoting the role of foreign investment to build up Shanghai's technology and innovation center is a new path of innovation-driven development," said Shang Yuying, director of the Shanghai Commission of Commerce.

The incentives include funding for R&D projects in emerging industries, equal policy support between domestic and foreign investment on transfer of technology, faster import procedures for R&D materials, and financial awards for new patents.

Various government bodies will also enhance protection of intellectual property rights, simplify visa and work permit procedures, and offer more public services for foreign investment R&D centers.

There were 416 foreign-invested R&D centers in Shanghai by the end of August, accounting for a quarter of the total on China's mainland, according to official data.

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Permalink 05:42:53 pm, by dacare, 356 words, 115 views   English (US)
Categories: News of China

Shanghai now a sellers’ market for job hunters

Increasing demand for workers amid a shrinking labor pool is driving salary offers higher than job seekers' expectations.

"Offered salaries have been lower than job seekers' expectations for a very long time," said Wang Jiawen, a career information analyst at the city's employment promotion center, which released a study on the jobs market yesterday.

"But we noticed they began to exceed expectations in the fourth quarter last year and the trend has become increasingly very obvious in the past 10 months."

Average offers were 4,630 yuan ($700) a month in August, against average expectations of 4,474 yuan, the report said.

The average offers cover from entry-level to more experienced positions.

The shift reflects significant changes in the labor market.

"The recruitment needs have been high, but the working-age population is declining," Wang said.

Shanghai is expanding and upgrading its industrial infrastructure, fuelling strong growth in demand for skilled workers — and making it harder for employers to find people with the right skills and qualifications.

"Previously, people had to lower their expectations to get a job as soon as possible," Wang said.

"But now, employers have had to increase their offers to hire the right talent as soon as possible.

"The job market is no longer a buyers' market. It is a sellers' market."

He forecast that trend to continue over the long term, with salary offers continuing to rise.

The report also found the general average pay offered by employers across the total job market was 8.8 percent higher in August than the lame period last year.

But that is still below the average of 9.6 percent growth in recent years.

The finance industry has the best offers -— 5,436 yuan a month in August, up 5 percent from a year earlier.

Next best were hydraulic engineering, environment and public facility management averaging about 5,252 yuan a month and information, computer services and software, offering about 5,144 yuan a month — which showed the highest growth over last year at 15.6 percent.

Private companies offered the highest wages — 4,733 yuan a month.

Money offered by foreign ventures saw the highest growth, with a 9.2 percent increase to 4,484 yuan.

Men are still offered more than women — 4,825 yuan a month, compared with 4,609.

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Permalink 03:35:13 pm, by dacare, 404 words, 178 views   English (US)
Categories: News of China

Qihoo 360 sets up subsidiary in Xiongan New Area

Qihoo 360 Technology Co Ltd has completed its registration in China's Xiongan New Area to set up a subsidiary, becoming the first cybersecurity company to set its footprint in this new economic area, according to a report by Shanghai Securities News on Friday.

The subsidiary was established on Oct 12, 2017, with registered capital of 10 million yuan ($1.52 million), the report said, adding that Qihoo 360 has pledged its safety network will cover social and economic aspects in Xiongan and will help train more cybersecurity talents in the area as well.

Meanwhile, the People's Insurance Company (Group) of China, China's major insurer, announced On Oct 11 that its proposed subsidiary PICC Pension Company Limited (PICC Pension) has been granted approval to commence operation from the China Insurance Regulatory Commission.

The registered capital of PICC Pension will be 4 billion yuan, with its place of registration in Xiongan New Area and its place of operation in Beijing city, an announcement on PICC's website said.

And information on the National Enterprise Credit Information Publicity System showed that a unit of China's real estate giant Vanke Co Ltd was registered on Oct 10, with 2 billion yuan registered capital and Hebei's Xiongxian, part of Xiongan New Area, as its registration place.

These are among 48 companies in the first batch to have been given green light to set up units in the economic zone, including Alibaba Group Holding Ltd, Tencent Holdings Ltd, Baidu Inc, Jingdong Finance, Shenzhen Kuang-Chi, China Telecom, according to the administrative committee of Xiongan.

Fourteen companies are leading Chinese information technology firms, 15 are in finance, seven are research institutes, and five are focused on green technology.

Nineteen of them are centrally-administered State-owned enterprises and 21 are private companies.

The committee's official WeChat account said on Sept 28 that high-end and high-tech companies will be the mainstream of industry in the area.

While Chinese e-commerce giant Alibaba announced on Sept 29 that it will set up three subsidiaries in Xiongan with a total registered capital of 160 million yuan, tech giant Tencent also set up a subsidiary on Sept 26 in the new area with a registered capital of 20 million yuan, according to Tianyancha, an enterprise data query system.

The Xiongan New Area, a new economic zone about 100 kilometers southwest of Beijing, was announced in April. It covers Hebei's Xiongxian, Rongcheng and Anxin counties.

The project aims to relieve the pressure of population on Beijing and build another economic powerhouse along the lines of those built near Shenzhen and Shanghai.

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Permalink 04:11:48 pm, by dacare, 232 words, 126 views   English (US)
Categories: News of China

China to invest big in 'Made in China 2025' strategy

China will step up financial support for major projects of its "Made in China 2025" strategy, a blueprint for upgrading the country's manufacturing sector.[Special Coverage]

Sectors that boost manufacturing innovation, including the Internet of Things, smart appliances and high-end consumer electronics, are the major priority for funding, according to the Ministry of Industry and Information Technology (MIIT).

The total funding is likely to exceed 10 billion yuan (1.5 billion U.S. dollars), Xinhua-run Economic Information Daily reported.

Aside from central-level funding, local authorities will also increase financial support for "Made in China 2025" projects with over 10 billion yuan expected to be invested by local governments nationwide from 2016 to 2020.

The MIIT will also cooperate with China Development Bank to provide financial services including loans, bonds, leasing to support major projects, with an estimated 300 billion yuan of financing in place in the 2016-2020 period.

"The financial support gives a clear direction for future development in China's manufacturing innovation and boosts social confidence in economic restructuring and upgrades," said Wu Hequan, academician of Chinese Academy of Engineering.

The "Made in China 2025" strategy, a roadmap released by the State Council in 2015 to guide the country's advanced industrial manufacturing, has seen steady progress in industrial capability, smart manufacturing, innovation, as well as product quality and branding.

Average productivity was up by 38 percent for China's first 109 pilot projects in smart manufacturing, while operating costs dropped by 21 percent, according to the MIIT.

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Permalink 04:10:43 pm, by dacare, 197 words, 117 views   English (US)
Categories: News of China

Insurance industry faces profound changes

China's insurance industry is facing profound changes in terms of policy, environment and technology, said Huang Hong, deputy president of China Insurance Regulatory Commission, on Tuesday.

He made this comment at the China Life Insurance October Qianhai Summit 2017 in Shenzhen, Guangdong province.

He stressed that the key of the country's financial policy now is to serve the entity economy, control financial risks, and deepen reform.

"Serving the entity economy should be reflected through the entire asset management process in a broad range, including stabling people's lives, promoting consumption, and supporting the building of major projects," he said.

In addition he believes new technology, such as mobile internet, big data, AI and genetic tests, are changing consumer behaviors, service methods and sales channels in China.

Huang also argued the industry should continue to open up, stably relax the threshold for foreign insurance companies to enter the domestic market and encourage foreign capital to take part in health care and retirement insurance.

Ng Keng Hooi, chief executive and president of AIA Group Ltd, noted at the summit the life insurance market in Asia remains the strongest in the world and is at an inflection point for continued high growth.

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Permalink 05:09:51 pm, by dacare, 318 words, 121 views   English (US)
Categories: Manufacturing & Industry

China makes better-than-expected progress in overcapacity cuts

China has made better-than-expected progress in cutting overcapacity in the steel and coal sectors amid steadfast government efforts to push economic restructuring.

In Hebei Province, where the task in cutting overcapacity is tough, 15.72 million tons of steel production capacity and 14.08 million tonnes of iron were cut in the first half of this year, progressing faster than the same period last year, according to local authorities.

China's steel industry has long been plagued by overcapacity. The government aims to slash steel production capacity by around 50 million tonnes this year.

Nationwide, 85 percent of the target for excess steel capacity had been met by the end of May, through phasing out substandard steel bars and zombie companies, with Guangdong, Sichuan and Yunnan provinces already meeting the annual target, data from the National Development and Reform Commission (NDRC) showed.

About 128 million tons of backward coal production capacity was forced out of the market by the end of July, reaching 85 percent of the annual target, with seven provincial-level regions exceeding the annual target.

As a large number of zombie companies withdrew from the market, companies in the steel and coal sectors have improved their business performance and market expectations.

Lifted by improved demand and lower supply due to government policies to cut steel overcapacity and enhance environmental protection, steel prices continued to pick up, with the domestic steel price index gaining 7.9 points from July to 112.77 in August, and increasing 37.51 points from a year earlier, according to China Iron and Steel Association (CISA).

"It is unprecedented, showing that overcapacity cuts have prompted the healthy and sustainable development of the sector and improved business conditions of steel companies," said Jin Wei, head of CISA.

Companies in the coal sector also gained profits. In the first half, the country's large coal companies registered total profits of 147.48 billion yuan (about 22.4 billion U.S. dollars), 140.31 billion yuan more than the same period last year, according to the NDRC.

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Permalink 03:56:01 pm, by dacare, 257 words, 115 views   English (US)
Categories: News of China

Companies should seize Belt and Road opportunities: Cushman and Wakefield

Both Chinese and international companies should seize the opportunities offered by the Belt and Road Initiative, according to a report issued by global real estate services firm Cushman and Wakefield.

Since the initiative was proposed by China in 2013, governmental organs and companies from around the world have expressed their strong will to take part in it, the report said.

Some Chinese companies have increased their international competitiveness through self development and business management, while others sought global partnerships or foreign acquisitions to fill existing gaps between them and their global counterparts.

The number of overseas mergers and acquisitions executed by Chinese firms in 2016 increased by 21 percent from the previous year to reach 438, and the amount of actual investment involved grew to 215.8 billion U.S. dollars, up 148 percent than 2015, the report stated, quoting figures jointly issued this June by Shanghai-based advisory firm DealGlobe and Hurun, known for publishing an annual rich list. These deals were mainly made in the manufacturing, financial services and health sectors.

Business opportunities will arise for overseas companies, including outbound capital projects and infrastructure, especially in partnership with Chinese companies, and involvement in supplying equipment, technology and intellectual property, it also said, citing a report issued by PricewaterhouseCoopers earlier this year.

The Belt and Road Initiative, also knows as the Silk Road Economic Belt and the 21st Century Maritime Silk Road, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along ancient trade routes.

Over 100 countries, regions and international organizations have expressed support for or participated in the initiative.

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Permalink 03:55:33 pm, by dacare, 200 words, 84 views   English (US)
Categories: News of China

China's survey-based jobless rate lowest since 2012: official

China's job market is steadily expanding, with the survey-based unemployment rate falling to its lowest level since 2012, an official said Tuesday.

China's nationwide survey-based unemployment rate stood at 4.83 percent in September, the lowest since 2012, Ning Jizhe, head of the National Bureau of Statistics (NBS) disclosed at a press conference.[Special coverage]

Some 9.74 million new jobs were created in China's urban regions from January to August, which means the country has already fulfilled 88.5 percent of its official goal to create 11 million new jobs in 2017.

From 2013 to 2016, China's surveyed unemployment rate in 31 major cities stabilized at around 5 percent.

The number of migrant workers leaving their hometowns rose 2.1 percent in the second quarter compared with the same period last year, according to Ning.

The NBS survey-based jobless rate is usually higher than the registered jobless rate released by the Ministry of Human Resources and Social Security, which came in at 3.95 percent by the end of the second quarter.

Creating more jobs to stabilize unemployment is a priority for the government as millions of workers face the prospect of redundancy due to mergers and reorganization in industries bogged down by overcapacity.

China aims to maintain the registered urban unemployment rate at under 4.5 percent for 2017.

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Permalink 03:13:55 pm, by dacare, 626 words, 350 views   English (US)
Categories: News of China

'Bathing-crab' overseas students facing tough job market

Some Chinese studying abroad have found it difficult to find a well-paid job when returning to China after graduation in recent years. This is quite unlike they'd imagined.

In fact, some of these job hunters may have just wasted their school time in another country. They thought an overseas diploma alone would guarantee them a decent job, but the job market disagreed, contrary to expectations.

A Xinhua report defined these people as "bathing crabs".

The Yangcheng Lake in East China's Jiangsu province produces a variety of freshwater crabs, called Yangcheng Lake Hairy Crab, every autumn. These crabs are raised in the lake for at least six months, which is what makes them authentic and fetch a high price.

But some counterfeit ones spend a short time - perhaps only a few hours, like taking a bath - in the lake before being passed off as genuine. Those who had not taken their academic careers seriously abroad are seen as "fake" crabs.

Beyond these bathing-crab students who find it difficult to obtain employment, the job-seeking destinies of haigui, or "turtles" - overseas returnees who have studied or been trained abroad - varies, too. Some haigui earn tens of thousands of yuan annually, while others net more than one million yuan (about $150,000) a year.

About 45 percent of haigui earn less than 6,000 yuan ($900) monthly in 2017, according to a survey by the Center for China and Globalization, a Chinese think tank based in Beijing. Nearly 70 percent of them think their current salary is far less than what they had expected.

"Take the United States as an example. A student needs at least $40,000 a year to study there, or $120,000 for three years. One returnee has to be paid at least 10,000 yuan ($1,500) monthly for seven years before he or she gets academic cost back," said Qi Lixin, president of the Beijing Entry & Exit Service Association. He thought this was why the haigui community has high salary expectations.

Development opportunities and favorable policies have attracted a growing number of haigui. According to data from the Education Ministry, about 430,000 came back to China for employment in 2016, 160,000 more than in 2012 — an increase of 58 percent.

There has been a dividing line taking shape to distinguish two groups of returnees, with one group having special skills and the other, not. Quite a few Chinese companies came to this conclusion, based on their recruitment experience. The former are called "big turtles" and the latter "small turtles".

"'Small turtles', without techniques or experience, are sure to be overshadowed in salary by 'big turtles' from prestigious universities and with hands-on backgrounds," said Xu Chuanhai, who represents an overseas education service agency.

In the IT industry, a returnee who has mastered the world's leading technologies can earn up to around 800,000 yuan ($120,000) a year, and those with further managerial experience can even get one million yuan (about $150,000), said Yang Zhiguo, himself an overseas returnee.

Yang studied in Germany for eight years before coming back to China in 2009 and starting up a tech company. His company has been well-developed.

In addition to factors within students' control, like making an effort in study or work, there are also reasons for employment difficulties which are totally objective. One is the choice of major — quite a few haigui had learned something that didn't match what the Chinese market needed.

More than 46 percent of returnees majored in business administration, while humanities and social sciences majors numbered 20 percent, applied science majors 16 percent and natural science about seven percent, according to a report on the haigui community's employment and entrepreneurship in 2017.

If "bathing-crab" returnees want to avoid losing out in job competition, experts said, they should seize every possible opportunity to gain valuable experience when they study abroad, and have more than just a diploma when they return.

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Permalink 03:32:33 pm, by dacare, 434 words, 130 views   English (US)
Categories: News of China

Ant Financial to create JV with CK Hutchison

As Ant Financial pushes its global drive to tap into Hong Kong's cashless payment market, the tech giant is forming a joint venture with tycoon Li Ka-shing's CK Hutchison Holdings (CKH) to sign up more local users.

The two companies are poised to set up a 50-50 joint venture to offer a consumer-oriented digital wallet under the AlipayHK brand. The deal is expected to be completed later this year, subject to obtaining the nod from regulators.

Neither company has disclosed the amount of their contribution to the joint venture. But market experts speculate that the parties are not disclosing the figures due to the negligible amount compared with the companies' massive portfolios.

Ant Financial, the financial services arm of Chinese mainland e-commerce titan Alibaba Group Holding and operator of the world's largest online payment app Alipay?entered the Hong Kong market with AlipayHK mobile wallet in May this year.

The e-payment app attracted more than 100,000 active users in the two weeks since its launch, and is now accepted at more than 4,000 leading retail brand outlets in the city.

Ant Financial's expansion in Hong Kong is highly aligned with CKH's line of business, which has a strong presence in retail, infrastructure, energy and telecommunications in the city. The group boasts personal care store Watsons, supermarket ParknShop and electronic store Fortress, among many other flagship companies in Hong Kong.

Ant Financial said in a statement that apart from mobile payment, Alipay's many in-app lifestyle features and third-party insurance products are among the traits that drew the attention of CKH. Currently, Hong Kong users can easily buy travel insurance and accident insurance from mainland insurance companies such as Ping An and China Life through AlipayHK.

Martin Bao, senior analyst of ICBC International, said the partnership is a big step in Alipay's global drive. Alipay has extended its cashless payment network in many countries but is mostly for the convenience of mainland tourists going abroad. The alliance with local partner CKH demonstrates Ant Financial's ambition to woo local users, he said.

Currently, the most dominant cashless payment in Hong Kong is the Octopus card, a rechargeable card that is widely accepted by Hong Kong residents to pay for transportation, as well as items at convenience stores and small retailers. Yet Bao said the pre-top up mode, which requires citizens to top up the balance before paying, occupies a portion of citizens' disposable capital, and is less convenient than Alipay's real-time payment system.

Ant Financial, hailed as the mainland's biggest unicorn with an estimated valuation of more than $60 billion, is considering going public in the mainland or Hong Kong.

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Permalink 04:29:20 pm, by dacare, 138 words, 153 views   English (US)
Categories: News of China, Comp, Salary & Benefit

Pay rises for new graduates

The average pay for college graduates has gone up by 7.4 percent year-on-year, according to a survey published Wednesday by China International Intellectech Corporation, a State-owned human resources company.

The survey shows the pay for college graduates this year is 4,854 yuan ($741) for graduates, 6,791 yuan for postgraduates and 9,982 yuan for PhD graduates.

The salary in first-tier cities is 5,218 yuan for graduates, 7,612 yuan for postgraduates, and 10,077 yuan for PhD graduates.

It indicates 47 percent of the employers have hired more people this year, while 21 percent cut down on their recruitment numbers.

Sixty two percent of the polled enterprises said hiring desirable employees became more difficult this year, due to excessively high expectations of graduates and low name recognition of employers.

The survey polled more than 2,800 enterprises in sectors including finance, internet and manufacturing.

A record 7.95 million graduates entered the workforce this year.

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Permalink 02:32:24 pm, by dacare, 189 words, 139 views   English (US)
Categories: News of China

First public recruitment in Xiongan: 4,000 candidates for 23 vacancies

Xiongan Construction and Investment Group Co Ltd, a company based in the Xiongan New Area, started recruiting employees from around the country recently.

This is the first public recruitment in Xiongan New Area, according to China Economic Weekly.

The company published the employment information on the website of Chengtong, a recruitment agency, on Aug 31. And the 23 job openings attracted more than 4,000 candidates, equivalent to 1 in 179, within a week.

The positions on offer cover fields such as finance, infrastructure construction and public relations, with only 23 people to be hired by the State-owned enterprise, according to a report of China Economic Weekly on Tuesday.

Most of the jobs require five years of work experience and at least a bachelor's degree, and the pay is similar to that of Beijing, where the average salary for employees in public sector stood at 120,000 a year ($18,000) in 2016, said the report.

Xiongan New Area, about 100 kilometers southwest of Beijing, straddles the three counties of Xiongxian, Rongcheng and Anxin in the neighboring Hebei province.

China announced the plan to build the new area in April, aiming to promote the coordinated development of Beijing, Tianjin, and Hebei province.

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Permalink 02:57:49 pm, by dacare, 526 words, 135 views   English (US)
Categories: News of China

Nationwide negative list to spur foreign investment

A bulk carrier freighted with goods on a pier in Lianyungang, East China

China will roll out a negative list for foreign investment, which has been tested in pilot free-trade zones.

The negative list model, which states the sectors and businesses that are off limits to foreign investment, will be adopted nationwide as early as 2018.

"Introduction of the negative list is a creative approach at home and abroad. It lays an important foundation for market to play a decisive role in resource allocation," said Xu Shanchang, with the National Development and Reform Commission.

The approach had an initial test run in Shanghai, Tianjin, Guangdong and Fujian, before expanding to other places, including Zhejiang and Hubei, for further testing.

"It is rather important to be prepared before making it a nationwide practice," Xu said.

On Aug. 16, the State Council issued a document saying that China would make its foreign investment environment "more law-based, internationalized and convenient" to promote growth and raise the quality of foreign investment.

"The country should continue to reduce market access restrictions for foreign capital," the document said.

China will expand market access to allow foreign capital in sectors including new-energy vehicle manufacturing, ship design, aircraft maintenance and railway passenger transport, it said.

On July 28, China began to implement a revised foreign investment catalogue, which included a negative list as well as sectors and industries in which the government wants to encourage foreign companies to invest.

"Instead of trying to guide industrial adjustment, the negative list is to coordinate the relationship between government and market, aiming to improve the market's role of regulation, make enterprises the major investment sources and lift government restrictions," said Guo Guannan, with China Academy of Macroeconomic Research.

"The resilience and competitiveness of China's investment management system would be enhanced by implementing a negative list," said Gao Yuwei, a Bank of China researcher.

The negative list will help China develop an open economy and lead to comprehensive reforms to the country's economic and social management, according to Gao.

China will introduce more fiscal and taxation support policies to encourage overseas investors to expand investment, the State Council said in August.

The country could make use of overseas investors to optimize the service trade structure.

China encourages multinationals to set up regional headquarters in the country and wants more investment in western areas and the old northeastern industrial bases.

The investment environment in national-level development zones will be improved by giving the zones more authority in investment management and raising their ability to provide industrial services, according to the State Council.

Foreigners will find it easier to get work permits as the government aims to facilitate the cross-border flow of professionals.

Before the end of the year, China will release detailed new rules for granting visas to foreign professionals, including extending the validity period, the State Council said.

Efforts should also be stepped up to improve foreign capital-related laws, provide better services to overseas investors and ensure the free outward remittance of their profits.

China will improve the protection of intellectual property rights, raise the competitiveness of the research and development environment and maintain continuity in foreign investment policies, it said.

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Permalink 04:02:48 pm, by dacare, 451 words, 192 views   English (US)
Categories: News of China

Shanghai, HK vie for IPO lead

More companies bet on high valuations in mainland, instead of going overseas

As New York remains on track to knock Hong Kong off its pedestal to become the world's biggest listing venue this year, the Asian financial hub is wrestling with Shanghai for the second place in the league tables.

Over the first nine months of the year, some 106 deals raised HK$85 billion ($11 billion) in Hong Kong, trailing the 105 billion yuan ($16 billion) raised in Shanghai, according to data from global accounting firm Deloitte.

"Though brokers and bankers in Hong Kong are anchoring their hopes on a sharp upturn in business to help the city overtake its mainland peer in the final quarter of 2017, I think Shanghai is likely to hold its lead and secure the second spot throughout this year," said Edward Au, Hong Kong-based co-leader of the national public offering group at Deloitte.

The initial public offering (IPO) market in the Chinese mainland has gained huge momentum so far this year from China Securities Regulatory Commission's efforts to step up IPO approvals, in a sign of its determination to implement IPO reform toward a registration-based system.

"As regulators keep a steady pace to give a green light to no less than 30 IPOs on a monthly basis, more and more mainland companies, betting on higher valuations back home, are relishing the idea of a flotation on the mainland, rather than having their eyes trained on overseas destinations," Au noted.

"Though there is a logjam of roughly 500 firms still lining up to get the nod, you can see policymakers' efforts to ease IPO process really bolster the market a lot," he added.

If regulators could maintain the pace to give the go-ahead to IPOs in the remaining months, the Shanghai Stock Exchange, coupled with the smaller, tech-heavy Shenzhen Stock Exchange, are projected to see as many as 480 companies make their mainland stock market debut, raising up to $250 billion yuan by the year end, Deloitte said.

Following the $1 billion-plus offering from ZhongAn Online Property Casualty Insurance?the very first fintech flotation in Hong Kong?the Asian financial center, which has retained the crown as the world's top fundraising destination for the past two years, is looking to welcome one or two more eye-catching listings from sizeable technology firms in the final three months of the year, said Dick Kay, Shanghai-based co-leader of national public offering group at Deloitte.

"Given that the enthusiasm of investors oversubscribing for ZhongAn's offering runs really high, we have good reasons to believe the upcoming technology flotations could come as a 'booster', putting Hong Kong on course to secure the third spot, with as many as 150 firms raising up to HK$150 billion for the whole year round," Kay said.

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Permalink 03:49:28 pm, by dacare, 211 words, 123 views   English (US)
Categories: News of China

China's e-commerce sector sees 27% surge in trade

China's e-commerce market saw strong growth in the first half of this year, according to a report released Tuesday.

China's e-commerce trading recorded 13.35 trillion yuan ($2.03 trillion) for the first half of 2017, a 27.1 percent increase year-on-year, China Research Center of E-Commerce said in the report.

Business-to-business transactions reached 9.8 trillion yuan, online retail sales were at 3.1 trillion yuan, and e-commerce trading for life services was about 0.45 trillion yuan.

Cross-border e-commerce reached 3.6 trillion yuan in H1, up 30.7 percent year-on-year, accounting for 26.97 percent of China's total e-commerce trade volume, with 2.75 trillion yuan for export and 862.4 billion yuan for import.

With policy support and a relatively complete system, China's e-commerce maintained rapid growth and as China's economy transforms to the "consumer upgrade" era, e-commerce has created many new consumption demands, said Zhang Zhouping, senior analyst with the research center.

This has triggered a new investment boom, created more job opportunities, increased income and provided the space for mass entrepreneurship and innovation in the country, Zhang added.

As of the end of June, more than 3.1 million people worked directly in e-commerce and more than 23 million indirectly, the report revealed.

Revenue for China's express delivery business was 257.29 billion yuan in the first half of 2017 and is expected to reach 600 billion yuan with a projected growth rate of 49.8 percent.

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Permalink 03:17:31 pm, by dacare, 323 words, 175 views   English (US)
Categories: News of China

Nine listed companies plan offices in Xiongan

Aerial photo taken on April 1, 2017 shows Anxin county, North China's Hebei province.

Since April 5, nine listed companies have announced plans to set up offices in Xiongan, betting on business opportunities from the construction of the Xiongan New Area, Ifeng Finance reported.

Kaidi Ecological Environmental Technology Co Ltd said in a statement to the Shenzhen Stock Exchange late Thursday that the company plans to establish an office in the new area to promote the environment protection and ecological reconstruction project of Baiyangdian?a freshwater lake in Xiongan.

Eight other listed companies that announced plans to set up offices in Xiongan are Yueyang Forest & Paper Co Ltd, CRRC Corp Ltd, Shenzhen Das Intellitech Co Ltd, Hubei Huitian New Materials Co Ltd, Xuanhua Construction Machinery Co Ltd, Wuxi Taiji Industry Co Ltd, Lingyuan Iron & Steel Co Ltd and Juli Sling Co Ltd.

China announced the plan in April to create Xiongan New Area -- about 100 kilometers southwest of Beijing -- to promote the coordinated development of the Beijing-Tianjin-Hebei region.

Xiongan-themed stocks have rebounded recently as the planning and design of the Xiongan New Area is expected to be completed by the end of September. Stocks related to infrastructure, finance, technological innovation and real estate all showed upward momentum.

Earlier, some investment institutions also turned more bullish on shares of companies involved in environment protection, garden and architectural decoration.

Zhang Chengyuan, a senior vice-president at China Asset Management, said the demand market of raw materials including steel, cement and glass has been reflected in the construction of the Xiongan New Area.

Zhang added that there will be more investment opportunities in the scientific and technological innovation industry during the construction of the new area.

Advanced city planning, transportation, municipal services and environment protection for new urbanization will not only benefit the Xiongan New Area, but these technologies and services can also be promoted in the whole country, said Ma Tao, chief strategist of BOCOM Schroders.

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Permalink 03:12:26 pm, by dacare, 126 words, 165 views   English (US)
Categories: News of China

Guangdong plans international expo to boost B&R cooperation

An international expo featuring trade and economic cooperation between countries and regions related to the 21st Century Maritime Silk Road will be held in late September in Guangdong province, according to the organizers.

More than 1,134 companies from 56 nations and regions will participate in the Guangdong 21st Century Maritime Silk Road International Expo, which is scheduled on September 21-24 in Dongguan, a trade and manufacturing hub in the Pearl River Delta region, according to the organizers.

The expo will highlight investment and economic cooperative opportunities along the countries and regions, as well as their cultural, construction, engineering, food and agricultural products.

Former high-ranking officials from 13 nations related to the 21st Century Maritime Silk Road, as well as 22 international chamber officials have confirmed their participation in the event.

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Permalink 03:08:53 pm, by dacare, 88 words, 130 views   English (US)
Categories: News of China

China plans wider foreign investment

China plans to open the domestic market wider to foreign investment in the financial and new energy vehicles sectors in coming months, said a spokeswoman with the nation's economic regulator Friday.

Meng Wei of the National Development and Reform Commission, said China will open the world's second-largest economy wider to foreign investors, stepping up efforts to attract foreign funds.

While foreign direct investment dropped a little in the first eight months compared to the same period last year, China retains strong competitiveness compared to other countries, she said.

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Permalink 03:52:39 pm, by dacare, 362 words, 107 views   English (US)
Categories: News of China

Too few online security talents

Cybersecurity talents are in short supply in China, and many employers have no choice but to lower their requirements and recruit people with little work experience to fill the gap, a report concludes.

Posts about cybersecurity published on, a leading recruitment website, increased from January to June by 232 percent year-on-year, according to the report published by Zhaopin and 360 Internet Security Center.

Work experience was not required for half the posts. On average, the expected salary of job seekers in the field stood at 7,533 yuan ($1,160) a month.

In stark contrast, the average salary employers offer is 25 percent higher, the report found.

Zhaopin didn't disclose the sample size for the report, calling it a business secret, but said the sample was large enough to ensure solid conclusions - the firm has 135 million users.

The difference between the low salary expectation and high offer suggests the supply of candidates is inadequate to meet the demand in the labor market for cybersecurity talents, said Wang Yixin, a senior Zhaopin consultant.

There are more than enough low-skilled candidates for basic posts, but the demand for the highskilled candidates exceeds the supply, she said.

Only 11 percent of cybersecurity job seekers have an education background in cybersecurity or information security - more majored in computer science, communication and information engineering and network engineering.

More than 70 percent of the job hunters are aged 25 to 34.

The shortage of cybersecurity talents will continue in China for some time, the report said.

Zhao Zeliang, director of the Cybersecurity Coordination Bureau at China's Cyberspace Administration, said cybersecurity talent education is urgent and important in the country.

"We can catch up with Western countries' pace of cybersecurity protection by buying their advanced technologies or products, but if we are short of talents, our following generations will be affected," he said.

He also said the administration has paid high attention to and taken measures in education for talents, considering its importance in cybersecurity protection.

Now the administration has joined hands with the Ministry of Education to set up an academic institute to cultivate cybersecurity talents, "hoping to improve our capabilities in cybersecurity protection and make our talents more competitive in the world," he said.

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Permalink 11:53:39 am, by dacare, 559 words, 116 views   English (US)
Categories: News of China

Talent is crucial in taking the sector forward

Young visitors interact with a robot at the 2017 World Robot Conference in Beijing themed "Win-Win Collaborative Innovation Toward the Building of an Intelligent Society".

China is beefing up efforts to attract highly-skilled professionals to work in AI as companies across the world scramble to get an edge in this cutting-edge field.

A report released by Hays showed that Chinese mainland enterprises have stepped up plans to hire staff involved in the artificial intelligence industry from the United States and Europe.

Many firms were offering the right candidates lucrative packages, including a 50 percent salary rise to relocate to China, the global recruitment agency stated.

"We are seeing significant government and private investment in AI across natural language processing, computer vision, speech recognition and data science," said Simon Lance, managing director for Hays Greater China.

Earlier this year, the government launched plans to invest heavily in research programs.

The aim is to turn the country's AI sector into an industry worth more than 150 billion yuan ($22.15 billion) by 2020, 400 billion yuan by 2025, and 1 trillion yuan by 2030.

"As a result, employers in the artificial intelligence space are becoming particularly competitive in their efforts to attract top people," Lance added.

But China faces key challenges and a skill gap compared with the US.

A major problem is that the country lags behind the world's biggest economy when it comes to employment numbers.

"China's AI talent (pool) is only half that of the United States, which may (hinder) future development of (the) AI industry (here)," a report from the Tencent Research Institute stated.

The survey, conducted by a division of internet giant Tencent Holdings Ltd, showed China had 592 artificial intelligence companies with nearly 40,000 employees by June, 2017.

In comparison, the US had 1,078 AI businesses with more than 78,000 employees.

The US is also ahead in four key employment areas, including processor and chips, and machine learning applications, as well as natural language processing and smart drones.

More than 20,000 people work in the natural language sector in the US compared to China's 6,600, the Tencent report highlighted.

Studies also found that Chinese AI staff are concentrated in sectors such as automated vehicles and smart medical treatment.

In the US, the focus is on wider sectors, including the chip industry, big data and storage, as well as technical areas such as image identification and robotics.

Research in automated vehicles was also pioneered there.

"One of the reasons that China lags behind the US in AI is because it started much later", the Tencent report stated.

Among the world's top 20 universities for artificial intelligence research, 16 are in the US, including the Massachusetts Institute of Technology and Carnegie Mellon University, according to the American National Science and Technology Council.

Not one Chinese university made the list.

"Up until now, China has not established a system to cultivate talent in AI," said Yu Youcheng, deputy secretary-general of Chinese Association for Artificial Intelligence.

"For example, artificial intelligence science and technology have not been set up as a first-level discipline," Yu added. "This may lead to the loss of core AI talent."

But the problem can be fixed by putting the right pieces of the jigsaw together.

"We should work to develop an ecological chain in the AI field," Yu said. "This would combine AI talent cultivation, technology standards and products and applications.

"But (doing this we can) transform and upgrade the whole industry," Yu added.

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Permalink 03:40:15 pm, by dacare, 283 words, 102 views   English (US)
Categories: News of China

China National Nuclear Power plans to establish Hebei company

A China National Nuclear Corp stand at an industrial expo in Beijing.

China National Nuclear Power Co Ltd (CNNP), a unit of one of the country's three largest State-owned nuclear operators, has announced plans to establish a Hebei-based company to promote the development of traveling-wave reactor, or TWR, technology.

The move will be carried out in partnership with Huadian Fuxin Energy Limited Company, Zhejiang Zheneng Electric Power Co Ltd, Shenhua Group and Jointo Energy Investment Co Ltd Hebei, the CNNP said in a statement with the Shanghai Stock Exchange.

The new company, located in Cangzhou city, Hebei province, has a registered capital of 1 billion yuan ($153.23 million). CNNP will own 35 percent of the company; Shenhua Group, 30 percent; Huadian Fuxin Energy, 15 percent; Zhejiang Zheneng Electric Power, 10 percent, and Jointo Energy Investment, 10 percent.

CNNP said, in the statement, the establishment of the new company will be in accordance with the strategy for the coordinated development of the Beijing-Tianjin-Hebei (Jing-Jin-Ji) region, and added it would also help support the development of the advanced TWR technology.

In addition, CNNP Technology Investment, a wholly-owned subsidiary of CNNP, also plans to establish CNNP TWR Technology Investment (Tianjin) Co Ltd together with the four investors, sporting the same investment proportion. The new company, located in Tianjin, has a registered capital of 750 million yuan.

TWR, a new nuclear design using fourth-generation technology, could reduce the need for the enrichment and reprocessing of uranium. CNNP stated the establishment of the TWR demonstration project will be in accordance with, and respond to, the national energy plan arrangement.

Bellevue, Washington-based Terra Power, co-founded by Bill Gates in 2006, is working closely with China National Nuclear Corp to conduct research into the use of the new technology.

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Permalink 05:19:57 pm, by dacare, 379 words, 177 views   English (US)
Categories: News of China

Li: Make way for new growth drivers

Technical workers assemble engines at a plant in Yiwu, Zhejiang province.

Companies should consider outside investment, mergers, premier says

Premier Li Keqiang promised more incentives to boost high-end manufacturing in China during a visit to Huaxiang Group, a private steel-casting company in Linfen, Shanxi province?part of a two-day visit to the area on Monday and Tuesday.

The company's moves to retain top-level professional engineers have brought success, turning it into a major supplier for a number of overseas automobile companies. Huaxiang provides an annual salary of 3 million yuan ($456,000) to some of its top craftsmen, four times that of the company's CEO.

Li spoke warmly about the approach as he talked with some of the craftsmen from whom young workers have learned, noting that providing better incentives to lure talent in high-end manufacturing is also a key strategy for the country as it seeks to shift from old economic drivers to new ones.

"We should pass on the spirit of craftsmanship from one generation to another, so that the idea of Made in China will be competitive not only in terms of prices but also in quality," Li said.

Also on Tuesday, Li visited Linfen Iron and Steel Co to learn about the region's efforts in cutting outdated capacity. The company, which is affiliated with Taiyuan Iron and Steel (Group) Corp, stopped most of its outdated operations in 2016, and 10,000 workers have been relocated with new jobs. Among them, more than 2,500 have started their own businesses.

"These workers may be seen as a burden for a company with outdated capacity, but their talent may be in demand when they find new and more suitable jobs," Li said, calling on companies to focus on developing high-end products.

Companies that rely on traditional models should be open to private investment, mergers and reorganization, Li said, adding that China is determined to phase out outdated and excess industrial capacity as a key part of its structural reform, especially as coal prices have been rising again in recent months. The idea is to truly make room for new economic growth drivers, he said.

Li also visited the Shigejie Coal Mine, which ceased production of low-quality coal in 2016, and poverty-stricken Chengzhuang village in the Taihang Mountains to learn about local poverty alleviation and medical services.

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Permalink 06:15:09 pm, by dacare, 244 words, 277 views   English (US)
Categories: News of China

Ctrip reports strong financial results in Q2

China's biggest online travel agency, International Ltd (Ctrip), announced that its net revenue surged 45 percent year-on-year to 6.4 billion yuan ($946 million) in the second quarter (Q2) ended June 30.

The company gained a gross margin of 82 percent in Q2, compared to 72 percent for the same period last year and 80 percent for the previous quarter, according to its unaudited financial results.

Net income attributable to Ctrip's shareholders for Q2 was 327 million yuan, compared to net loss of 521 million yuan for the same period last year and net income of 82 million yuan for Q1, the company reported.

"Ctrip maintained healthy revenue growth and achieved continual improvement in operating efficiency," Ctrip CEO Sun Jie said. "We are confident that Ctrip will generate long-term value for shareholders in the years to come."

The company expected its net revenue for the next quarter to grow by approximately 35-40 percent year-on-year.

Strengthening its position in lower-tier cities has been Ctrip's focus of action. The company said both its new customer acquisitions and user engagement in lower-tier cities improved significantly in Q2.

Ctrip and Qunar, a domestic rival acquired by Ctrip last year, had opened over 400 offline retail stores by the end of the quarter, with approximately 200 more in the pipeline, the company reported.

Liang Jianzhang, chairman of Ctrip, said the company will continue to expand into lower-tier cities and invest in international markets.

The company said both its accommodation reservation business and transportation ticketing business delivered healthy growth in Q2.

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Permalink 04:37:37 pm, by dacare, 265 words, 149 views   English (US)
Categories: News of China

China Guodian merges with Shenhua Group to create new energy giant

China's State Council has approved a merger between China's major power generator China Guodian Corporation and coal producer Shenhua Group, an official statement said Monday.

The two companies will be restructured to form a new energy investment company, the State-owned Assets Supervision and Administration Commission (SASAC) said on its website.

The move came with little surprise, as the listed arms of the firms had suspended trading of their stocks on the Shanghai Stock Exchange since early June, a move widely considered to signal a merger.

Following the announcement Monday, the listed arm of Shenhua Group on the Hong Kong Stock Exchange surged more than 4 percent before falling back slightly.

As the world's largest coal supplier, Shenhua Group had total assets of over a trillion yuan (150.7 billion U.S. dollars) by the end of April this year. It ranked 276th among the global Fortune 500 in 2017.

In the first half of 2017, China Shenhua Energy Company, the listed arm of the group, reported revenue of 120.5 billion yuan, an increase of 53.1 percent year on year.

With total assets of more than 800 billion yuan, China Guodian Corporation is one of the country's largest power generators with installed capacity of over 143 GW. It ranked 397th among the global Fortune 500 in 2017.

The merger between the two power giants was in line with the country's aim to cut overcapacity in the coal and power sectors through restructuring state-owned enterprises (SOEs), analysts said.

SASAC has been actively restructuring SOEs this year in a bid to improve their efficiency, with the number of central SOEs falling to 98 after Monday's announced merger, down sharply from 196 in 2003.

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Permalink 03:38:15 pm, by dacare, 200 words, 137 views   English (US)
Categories: News of China

Xiamen sees surge in fitness equipment exports to Russia

Eastern China's port city Xiamen, the country's largest exporter of fitness equipment, witnessed surge in trade to Russia in the first seven months.

Data from Xiamen Entry-Exit Inspection and Quarantine Bureau showed the city exported $5.35 million worth of fitness equipment to Russia in the first seven months of the year, up 45.7 percent year-on-year.

The city's fitness equipment exports to Brazil rose 32.1 percent year-on-year. Exports to South Africa increased 4.6 percent while exports to India picked up 3.4 percent.

In total, Xiamen's fitness equipment exports to these countries reached $17.5 million, up 15.9 percent from the same period last year.

The trade and economic relations among the BRICS countries - Brazil, Russia, India, China and South Africa - are getting increasingly closer as the leaders are expected to meet in Xiamen on Sept 3-5 for the group's 9th summit.

Xiamen is the country's largest fitness equipment and message apparatus producer and exporter. Globally it accounts for 60 percent of the treadmill output. Its exports of message devices represent more than 70 percent of the country's total.

There are more than 90 enterprises engaged in fitness equipment and related industries, with more than 10,000 employees.

Of these companies, 60 are exporting companies and 10 boast output value of more than 100 million yuan.

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Permalink 04:54:51 pm, by dacare, 421 words, 214 views   English (US)
Categories: News of China

Big retail should be enhanced by social media opportunities

Social media is set to become a major gateway to shopping rather than a mere communication portal, as the younger generation of buyers are inclined to make purchases while watching livestreaming shows, according to a latest survey.

Around 70 percent of those aged between 19 and 22 in China said they would place an order online via social networking sites, global consultancy Accenture revealed in research based on 10,000 consumers in 13 countries including China.

Calling them "Generation Z", Accenture found that 31 percent cited social media as a popular source for product inspiration, while 58 percent have increased their use of social media for purchase decision-making in the past year.

One-third of the respondents in China claimed they prefer video and livestreaming sites as avenues for bargain hunting. This contrasts with just 12 percent among those between 23 to 28 years old and 8 percent among those in their 30s.

"Social media has emerged as a real disrupter in targeting true digital natives," said Koh Yew Hong, managing director and retail lead for Accenture Asia Pacific. "Internet celebrities are gaining traction because they grasp what customers want."

This is reflective in the daily operations of e-tailor sites such as Taobao and Mogujie, both of which introduce online hosts or influencers for product endorsement that are broadcast live in a bid to improve traffic and boost sales.

Social media magnet Tencent Holdings Ltd is also empowering e-commerce players through a Mini Program function that incentivizes users to share their beloved goodies with online contacts.

Meanwhile, Generation Z are seeking a sophisticated shopping experience. Over 40 percent said they would search information directly from the brands' indigenous websites rather than third-party platforms, a percentage significantly higher than the millennials who are mostly 30 and older.

It also came as a surprise that young consumers are equally embracing in-store shopping. Compared with virtual shopping, 31 percent reported they prefer brick-and-mortar stores but heavily rely on digital means, such as chat tools and social media reviews, to facilitate the purchase.

Koh said physical stores are projected to enjoy remarkable renaissance as long as they are digital-ready. "It's because Generation Z values the shopping experience over the utilities of merchandise per se. Omni-channel sales are therefore critical to harness that trend."

China's internet giants including Alibaba Group Holding Ltd and Inc have ramped up efforts to deploy offline channels as pure-play e-commerce growth starts to stagnate. Alibaba has completed a series of buyouts including retail chain Intime Retail Group Co, while JD backed Yonghui Superstores and announced plans to open 1 million namesake convenience stores in five years.

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Permalink 05:40:42 pm, by dacare, 174 words, 143 views   English (US)
Categories: News of China

Shares end up on pension fund investment in market

Shanghai shares closed higher yesterday as market sentiment rose on news that pension funds have started to flow into the stock market and also on progress in the on-going mixed-ownership reform in state-owned enterprises.

The Shanghai Composite Index rose 0.56 percent to 3,286.91 points.

Investor sentiment soared on news that eight provinces and cities have invested the first tranche of 172.15 billion yuan ($25.8 billion) of pension funds in the stock market, Securities Daily said yesterday.

Joyoung, China's biggest maker of soybean-milk machines, and Yantai Zhenghai Magnetic Material both soared 10 percent. The two companies' interim results showed China's pension fund was their major shareholders in the second quarter.

"The pension funds which flow into the A-share market are going to stabilize the market,"said Li Chao, chief analyst at Huatai Securities.

Investors were also buoyed by progress in mixed-ownership reform in state-owned enterprises.

China Unicom, the country's second-biggest telecom firm, surged by the daily limit of 10 percent to 8.22 yuan ($1.23) after saying yesterday it planned to draw investors such as Alibaba Group, Tencent Holdings and Baidu under its reform.

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Permalink 04:46:21 pm, by dacare, 336 words, 115 views   English (US)
Categories: News of China

Regulator OKs China Unicom's non-public offering of shares

China Securities Regulatory Commission (CSRC) said on Sunday night it approved the non-public offering of shares in China Unicom's mixed-ownership reform plan and would handle it as a special case, according to a report by China Securities Journal.

China Unicom can formulate its own non-public offering of shares plan in accordance with the old rules of the refinancing system that were not revised until Feb 17 this year, CSRC said.

On the same day earlier, China Unicom disclosed its mixed-ownership reform plan, announcing it will transfer old stocks, grant employee incentive shares as well as sell shares to strategic investors.

The company will issue 9 billion private shares to strategic investors to raise no more than 62 billion yuan ($9.29 billion), transfer 1.9 billion old shares priced at 13 billion yuan to the structural reform fund and grant no more than 848 million restricted stocks to core employees to raise 3 billion yuan.

The total consideration of the above transaction will not exceed 78 billion yuan, according to the report.

Shares of China Unicom rose by 10 percent, the daily trading limit, to 8.22 yuan per share right after trading resumed Monday morning after months of suspension.

On August 16, China Unicom once published two filings of mixed-ownership reform on the website of the Shanghai Stock Exchange and withdrew them that night.

Analysts said it was because the company's non-public offering of shares plan, the pricing of the new shares and investors' shareholdings might have contradicted February's newly-revised regulations, according to reports by China Securities Journal and

The revised rules require the number of shares issued shall not exceed 20 percent of the total equity base before the issue. However, in China Unicom's plan, the proportion reaches 42.63 percent, China Securities Journal reported.

CSRC said on its announcement Sunday it has recognized that China Unicom's mixed-ownership reform is significant for laying a foundation for and deepening the reform of State-owned enterprises.

The company's strategic investors include domestic tech titan Tencent Holdings Ltd, Alibaba Group Holding Ltd, Baidu Inc and Inc and Suning Commerce Group Co Ltd.

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Permalink 04:27:52 pm, by dacare, 242 words, 159 views   English (US)
Categories: News of China

Madcap monikers! Odd company names to be banned in China

"Beijing Afraid of Wife Technology" and "What You Looking at Technology" are just two examples of the kind of company name that will soon be a thing of the past.

After launching a campaign to eliminate public signs with poor English translations, the State Administration for Industry and Commerce (SAIC) is targeting firms attempting to register names that are excessively long or strange.

The Legal Daily paper cited names of existing firms that would not be allowed under the new rules, including "Shanghai Wife Biggest Electronic Commerce" and "Hangzhou No Trouble Looking for Trouble Internet Technology".

The newspaper also gave the example of a condom company called "There is a Group of Young People with Dreams, Who Believe They Can Create Wonders of Life Under Uncle Niu's Leadership Internet Technology".

The restrictions were introduced by the SAIC this month, while also banning company names deemed offensive or racist or having religious or political connotations.

Outside China, other countries have also made moves to regulate "inappropriate" company names.

According to China National Radio (CNR), companies in Russia can use only Russian words when registering businesses. Untranslated foreign words are banned by the administration.

Although the UK has few rules governing what name a company may trade under, firms are forbidden from using any words related to royalty, such as king, queen or prince.

Government-related words like Government, British and Britain are also taboo for local companies to use in their names, said CNR.

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Permalink 05:16:18 pm, by dacare, 213 words, 120 views   English (US)
Categories: News of China

Lenovo drives big data take up in car making industry

He Zhiqiang, president of Lenovo Capital and Incubator Group, and Sun Zhongchun, general manager of Haima Car Co Ltd, at a news conference in Zhengzhou, Henan province, Aug 16, 2017.

China's biggest personal computer giant Lenovo and domestic auto maker Haima will join forces to promote the use of big data and artificial intelligence technology in the auto manufacturing industry.

Under the deal announced on Wednesday, Lenovo will examine Haima's sales data to come up with solutions to help the car maker target potential customers. In the future, the two companies will collaborate in areas like new car design and development, and smart manufacturing.

The move comes as the hardware veteran is gearing up its expansion in big data to go with its traditional strengths in manufacturing.

In 2016, the company's big data arm began offering services to other companies, before that it was an internal operation. By utilizing its own big data analysis platform, Lenovo has provided solutions to clients from various industries including metallurgy, medicine and tobacco.

Relying on its experience in manufacturing and its big data technologies, Lenovo is making efforts to drive China's manufacturing enterprises to transform and upgrade, He Zhiqiang, president of Lenovo Capital and Incubator Group, said at the strategy cooperation signing ceremony held in Zhengzhou, China's Central Henan province.

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Permalink 05:23:19 pm, by dacare, 432 words, 124 views   English (US)
Categories: News of China

JD Finance spinoff paves way for listing

JD Finance promotes its online financing products to consumers in Nanjing.

JD Finance, the finance unit of China's second biggest e-commerce player Inc, has been deconsolidated from JD as a result of the reorganization as of June 30, 2017, which is expected to pave the way for the former's eventual listing.

Accordingly, JD Finance's historical financial results for periods prior to July 1 are reflected in JD's consolidated financial statements as discontinued operations, according to the company's second quarter financial results.

Analysts said JD Finance's spinoff is seen as a preparatory move towards it listing on a domestic stock exchange, as well as obtaining more financial licenses.

Yu Baicheng, an expert at, a web portal that tracks the internet finance industry, said the move will let JD Finance develop its businesses more independently.

"The spinoff will allow JD Finance to move more aggressively, as it could carry out more financial business easily, as well as help JD focus on its core e-commerce business," said Li Zichuan, an analyst at Beijing-based internet consultancy Analysys.

"We don't rule out the possibility that JD Finance will seek an initial public offering on a domestic stock exchange in the next few years," Li added.

JD Finance has sought privatization and a split from JD at the beginning of last year. In January 2016, JD Finance raised 6.65 billion yuan ($992 million) from investors such as Sequoia Capital China, China Harvest Investments and China Taiping Insurance.

Its business scope now covers supply chain finance, consumer finance, wealth management, crowd funding, insurance and security. The company is applying for financial service licenses as the country's middle class surges in size.

In November 2016, JD announced it would reorganize JD Finance, to make it a wholly Chinese-owned entity to facilitate its development in certain licensed financial service businesses and take advantage of the liquidity provided by the Chinese capital market.

In March, JD agreed to sell its 68.6 percent stake in its finance unit, JD Finance, for 14.3 billion yuan in cash by the middle of this year, and post-deal, JD will hold neither legal ownership nor effective control of JD Finance.

The spinoff of JD's financial arm is similar to that of Ant Financial Services Group, the financial affiliate of e-commerce giant Alibaba Group Holding. It was split off from Alibaba and obtained business independence in 2014, making it a powerful financial player.

JD also announced that its net revenue reached 93.2 billion yuan in the second quarter, an increase of 43.6 percent year-on-year. Its gross merchandise volume in the second quarter increased 46 percent to 234.8 billion yuan, from 160.4 billion yuan in the same period last year.

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Permalink 06:01:30 pm, by dacare, 133 words, 130 views   English (US)
Categories: News of China

China sees steady employment in July

China continued to see a stable job market in July, with the unemployment rate at a relatively low level, data showed Monday.

The country's urban surveyed unemployment rate was around 5.1 percent last month, lower than that for July 2016, according to Mao Shengyong, spokesman for the National Bureau of Statistics.

The surveyed rate in major Chinese cities continued to stay at a relatively low level of less than 5 percent, Mao added.

"It was not easy to maintain the low unemployment rate in the month when college students graduate," Mao said. College graduates this year reached 7.95 million, up about 300,000 from 2016.

Some 8.55 million new jobs were created in China's urban regions from January to July, up 200,000 from the same period of last year, he said.

The Chinese government aims to create 11 million new jobs this year.

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Permalink 01:47:08 pm, by dacare, 184 words, 178 views   English (US)
Categories: News of China

Chinese banks should seek clients to profit

Banks in China should focus on clients to pursue higher profit and reduce reliance on capital expansion as part of reforms in the industry, McKinsey said in a report yesterday.

Banks will usually spend between 5 and 15 years on reforms in order to improve asset quality, said John Qu, senior partner of McKinsey & Company.

"Reforms in China's banking industry is an all-out battle that involves retail, corporate, asset management, organization, information technology, and risk management risks," said Qu. "Banks need to focus on all these six sectors to ensure success."

Profit growth of Chinese banks hit a brake in the past five years amid interest rate liberalisation, slower economic growth, and tighter regulation against leverage.

The overall profit growth in the banking industry slowed from 13.1 percent year on year in the first quarter of 2013 to 4.6 percent in the first three months of this year, data from the China Banking Regulatory Commission showed.

McKinsey said Chinese banks will have to prioritize improving client experience across retail, corporate, and asset management units as part of their reform process, said McKinsey's quarterly Chinese banking industry CEO report.

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Permalink 01:42:14 pm, by dacare, 104 words, 123 views   English (US)
Categories: News of China

GE to close part of New York facility, move work to China

General Electric (GE) announced late Tuesday that it will close its manufacturing facility in Rochester, New York and move the work to China.

GE told Xinhua on Wednesday that "the assembly of the electronic boards at this facility is not core to GE's manufacturing capabilities," and the company has already contracted 80 percent of these products to external partner suppliers.

The company said it will close the site by June 2018 and about 90 employees will be affected by the decision.

The work will be moved to China, where it will be done by GE's partner supplier, a U.S. manufacturing services company called Jabil, GE said.

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Permalink 05:32:35 pm, by dacare, 124 words, 127 views   English (US)
Categories: News of China

Xiongan New Area sets up company to fund construction

Photo taken on April 21, 2017 shows the scenery of the county seat of Rongcheng, north China's Hebei Province.

The management committee of Xiongan New Area has announced that a special company has been established to fund construction of the area.

With registered capital of 10 billion yuan (about 1.47 billion U.S. dollars), China Xiongan Construction & Investment Group is a state-owned company.

The Hebei provincial government approved its founding in July.

The company will raise fund to build houses and apartments, develop the Baiyangdian water area, and to build transport links, energy infrastructure and public facilities in Xiongan.

China announced plans in April to establish the Xiongan New Area, a new economic zone about 100 kilometers southwest of Beijing. It covers Hebei's Xiongxian, Rongcheng and Anxin counties.

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Permalink 03:57:07 pm, by dacare, 298 words, 109 views   English (US)
Categories: News of China

Foxconn announces increased investment in China, US

Foxconn Chairman Terry Gou has announced the company plans to increase investment in both China and the United States, according to a report released by the Securities Times on Monday.

"We are doing business. Foxconn has ambition. Market and technology are both directions we are chasing for," Gou said in a recent interview with the newspaper.

"In terms of technology, Foxconn will have big development in China and the United States, with large investments on both sides. However, investing in one market does not mean other market's investment will reduce."

Foxconn, the world's largest electronics contractor, announced on July 27 the company will invest $10 billion to build a liquid-crystal display panel manufacturing facility in Wisconsin, United States, in the next four years.

The investment will be the largest new greenfield investment made by a foreign company in the history of the US, and will create a total of 3,000 new jobs and an additional 10,000 more in the future, Foxconn revealed in a statement.

On Aug 2, media also reported Foxconn planned to spend $30 billion on the project, which would be three times the amount of money the company has previously pledged.

"We are not sure if the investment figure will reach $30 billion in the United States," Gou said.

"Besides Wisconsin, Foxconn is also in talks with other states. We will cooperate with Michigan on next generation auto technology, such as Internet of Vehicle (IOV) and self-driving cars."

"The Michigan investment will be unveiled soon, yet the transaction amount cannot be released," Gou said.

Gou refused to comment on whether an Apple supply chain will partly transfer to US, but added the most important thing is to complement each other's strengths.

Taiwan-based Foxconn, formally known as Hon Hai Precision Industry Co Ltd, is a major supplier to Apple Inc for its iPhones.

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Permalink 05:23:16 pm, by dacare, 758 words, 156 views   English (US)
Categories: News of China

Rising incomes fuel 'sense of gain' among Chinese

Despite rising housing prices, Han Jianhua, an assistant director of a furniture company in east China's Fuzhou City, felt confident about buying a home in the near future.

"A bicycle was all I owned when I started working five years ago. Now I drive my own car to work. My next plan is to buy an apartment and settle in the city," he said.

Han's monthly pay was about 3,000 yuan (440 U.S. dollars) when he started as an ordinary employee. Thanks to multiple promotions, his income has doubled.

"Including my wife's salary, we believe it will not be a problem to buy a home after some time," he said.

The 18th National Congress of the Communist Party of China (CPC) in 2012 proposed to increase people's income and boost their "sense of gain." A series of measures have been implemented over the past five years, making sure the country's "centenary goal" of building a "moderately prosperous society in all respects" will be realized by 2020.

In addition to continuous job creation in both urban and rural areas, the central government has worked with local authorities to raise standards for pensions, minimum wages and social welfare in recent years.

According to the National Bureau of Statistics, the per capita disposable income of the country was 23,821 yuan in 2016, up 44.3 percent compared with the 2012 figure, and an actual increase of 33.3 percent after adjusting for inflation.

In the meantime, the income gap between urban and rural residents is also narrowing. Statistics show that the per capita disposable income of rural residents was 12,363 yuan last year, an actual increase of 36.3 percent over 2012.

Zhang Yan, in Taiping Town in Changchun, provincial capital of Jilin, never thought he could step away from farm work and spend weeks traveling around the country each year.

"I make tens of thousands of yuan from farming and machinery rentals each year," he said. "We no longer need to worry about food. We now want to see more of the world."

Higher incomes have changed consumption in China.

Han Haoxuan, a native of Nanchang in east China's Jiangxi Province, enjoys going to see movies and theater in his spare time.

"The performance market has boomed in recent years, so we have more opportunities to go to the theater and enjoy the shows," he said.

China's box office reached 45.7 billion yuan (6.8 billion U.S. dollars) in 2016, attracting 1.3 billion movie-goers, data from the State Administration of Press, Publication, Radio, Film and Television showed.

Meanwhile, per capita consumption in the country was 17,111 yuan in 2016, up 33.1 percent from 2012. Average per capita consumption in cultural, educational and entertainment activities registered an annual increase of 9.1 percent between 2012 and 2016.

Spending on meat, egg, dairy and sea food products in rural areas grew as people sought better living standards, as did purchases of electric appliances and private cars.

In 2012, rural residents owned only six vehicles per 100 people. Last year, it was 17.

"The change in consumption habits leads to transformation in supply and demand, and in the end promotes the growth of relevant industries and economic development," said Jin Xiaotong, professor at the business school of Jilin University.

Since the 18th CPC national congress, poverty eradication has been a priority for officials at all levels. Targeted poverty alleviation has transformed the lives of tens of millions of Chinese people below the poverty line.

According to official data, there were 98.99 million impoverished rural people in 2012. By the end of 2016, the figure was reduced to 43.35 million. About 14 million people shook off poverty each year on average.

Rural residents in far west Xinjiang Uygur Autonomous Region have become paid workers at workshops in their villages thanks to assistance programs that pair companies and provincial governments from China's developed eastern and southern regions with poor areas in Xinjiang.

Kiwi fruit, peppers, peaches and tobacco produced in the remote mountains of central China's Hunan Province, home to one of the poorest regions in the country, have become hot sellers, thanks to better transportation and preferential agricultural policies.

The 18th CPC national congress set a goal for rural and urban residents' per capita incomes to double by 2020 compared with 2010. Official data showed that by 2016, the per capita disposable income of the country registered an actual increase of 62.6 percent over the 2010 level.

A promising employment situation and economic development have provided powerful support for the rapid growth of incomes in China, said Gao Wenshu, a researcher at the Institute of Population and Labor Economics under the Chinese Academy of Social Sciences.

"Looking at the current situation, the 'income doubling' goal is likely to be realized before 2020," he said.

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Permalink 05:07:31 pm, by dacare, 469 words, 147 views   English (US)
Categories: News of China

Salary and potential trump city size among job hunters: survey

After graduating from the Communication University of China in Beijing, Chen Xiao left the capital to work for an education institution in Southwest China's Chongqing municipality.

"I don't have a sense of belonging in Beijing. It is hard for me to get used to the climate and life style," Chen said.

"Rent, traffic expenditure, and meals take a large bite out of our salaries," Chen said. "And if I stay in Beijing, it's likely that most of my time will be occupied by work." Life is not only for working, she added.

"I know it is very hard to live there. Many people work in Beijing for some years and then return to their hometowns, saying their work experience can help them gain better jobs. But I think it is better to return after university," she said.

Chen is one of a growing number of graduates who choose to leave first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, and work in second-tier cities such as Wuhan, Changsha and Chengdu.

Although small and less developed, these cities have favorable conditions, including entrepreneurial incentives, housing subsidies, registered residence permits, or Hukou, and settlement policies, to encourage talent to live and work here.

Instead of swarming to first-tier cities, more students said salary and development space were more important factors than city size when they came to decide in which cities to start their career, a recently survey found.

The survey, which was conducted by a research center under China Youth Daily, canvassed 2,002 college students and graduates, and found 64.3 percent said salary was the first thing they considered when choosing which city to base themselves in, followed by the potential for career development, at 59.3 percent, and city size, 43.9 percent.

Around 59.9 percent said they hoped second-tier cities could provide a more relaxing environment for employees and entrepreneurs, while 49.7 percent said the cities' preferential terms were attractive.

Compared with first-tier cities, second-tier equivalents needed to improve public service systems, according to 63.7 percent of respondents, with 58.3 percent saying they hoped these cities could expand their economic volume and create more jobs. About 33 percent of respondents said promoting cities' soft power was crucial.

This year, the number of college graduates in China is expected to reach 7.95 million, an increase of 300,000 over last year, according to the Ministry of Education.

Some second-tier cities have offered various preferential policies to attract talents during graduation season. The most alluring policies for graduates are incentives for employment or starting up businesses (65.9 percent), favorable housing policies (64 percent) and easier Hukou policies (51 percent), the survey shows.

Jian Xinhua, a professor with Wuhan University, said high-quality labor was an important factor that could drive city development. Higher living costs and cut-throat competition in megacities was daunting. With favorable employment terms, second-tier cities would become more attractive to college graduates, it was added.

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Permalink 03:47:42 pm, by dacare, 258 words, 119 views   English (US)
Categories: News of China

Live-streaming host becomes most in-demand job for Chinese college students

Live-streaming host is a most sought-after job for more and more Chinese college students.

Though the new profession is not well accepted by society, especially by parents, nowadays it is not rare to see college students hosting online broadcasts.

A junior student from Tsinghua University has earned at least 10,000 yuan (close to $1,500) since she started teaching high school students on a major live-streaming platform a month ago. In fact, this is a common story for a great number of Chinese college students.

Huajiao is the first Chinese live-streaming platform that offers a "college channel." According to the site, more than a million college students from 98.7% of the country's universities are using the platform to host shows. More than 10,000 of them are students from elite universities, 1,000 of whom are studying at Tsinghua University and Peking University, China's top two schools.

College students have improved people's impression on the profession. Rather than low-quality and vulgar performances, they are providing shows with more intelligence and talents.

Flexible working hours and high income are the major reasons for students to choose the emerging profession. Statistics show that the average monthly salary of college broadcasters on the platform of Huajiao is 16,000 yuan. Some earn as much as 1.9 million yuan a month, 275 times of the 2016 average monthly salary of white collar workers in Beijing.

A survey conducted by Communication University of China found that a quarter of China's college students have hosted shows on live-streaming sites.

With further development of the industry, there will be more and more college students taking up the profession.

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Permalink 02:46:17 pm, by dacare, 173 words, 189 views   English (US)
Categories: Banking & Financial Services

China's central bank injects cash into market

China's central bank on Friday continued to pump money into the interbank market via reverse repos to ensure stable liquidity.

The People's Bank of China (PBOC) conducted 100 billion yuan (nearly 15 billion U.S. dollars) of seven-day reverse repos with an interest rate of 2.45 percent, and 40 billion yuan of 14-day reverse repos with an interest rate of 2.6 percent.

Offset by 100 billion yuan of maturing operations, the move resulted in a net injection of 40 billion yuan.

In Friday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose 2.92 basis points to 2.8152 percent.

There was a total of 280 billion yuan of net cash injections for financial institutions from Monday to Friday, down from 510 billion yuan a week ago.

The PBOC has increasingly relied on open-market operations for liquidity, rather than cuts in interest rates or reserve requirement ratios, to maintain a stable money market.

China set the tone of its monetary policy in 2017 as prudent and neutral, keeping an appropriate liquidity level but avoiding excessive injections.

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Permalink 02:24:01 pm, by dacare, 242 words, 122 views   English (US)
Categories: News of China

Xiaomi recruiting more MIUI 9 Beta Testers

MIUI 9 has been leaked already and we learned Xiaomi will bring picture-in-picture and split-screen features. Global Beta ROM has started rolling out and Xiaomi has been busy preparing for its official launch on July 26. It will be unveiled together with a new phone in a special event in China.

Beta testers are still needed to evaluate the MIUI 9. If you own a Xiaomi smartphone, you can volunteer to join the program. The Chinese OEM is recruiting more Beta Testers for MIUI 9 China ROM. The Global ROM is almost ready but this testing is only for China, at least, for now.

If you are already part of the MIUI community, you are automatically given the privilege to test MIUI 9 without having to apply. The first batch will be open to a limited number of testers for certain mobile devices.

Here is a list of Xiaomi phones that can test the MIUI 9:

Mi 6, Mi 5s Plus, Mi 5s, Mi 5c, Mi 5, Mi 4S, Mi 4c, Mi 4, Mi 3, Mi 2/2S, Mi MIX, Mi Max 2, Mi Max, Mi Note 2, Mi Note/Pro, Mi Pad 2, Mi Pad 1, Redmi Note 4X (MTK), Redmi Note 4X (SD), Redmi Note 4, Redmi Note 3 (MTK), Redmi Note 3 (SD), Redmi Note 2, Redmi Note, Redmi Pro, Redmi 4X, Redmi 4A, Redmi 4, Redmi 4 Prime, Redmi 3S/Prime, Redmi 3, Redmi 2A, Redmi 2/Prime, Redmi 1S, Redmi 1

Some of these latest Xiaomi models will get the MIUI 9 immediately: Redmi Note 4 (Qualcomm), Redmi Note 4X, and the Mi 6.

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Permalink 03:14:33 pm, by dacare, 257 words, 127 views   English (US)
Categories: News of China

Graduates getting paid better, but still job-hopping

Last year's graduates of local colleges started in jobs at wages 25 percent higher than their predecessors — more than 6,000 yuan ($886.75) a month.

But still over 21 percent have hopped from their first jobs, said a survey released by the city's employment promotion center and the students' affairs center.

The conclusions were based on officially registered information from the 97,000 students graduating from local colleges and who began working in Shanghai in 2016.

The report showed that those graduates' average term of employment was 29.2 months — 0.4 months longer than their peers graduating in the previous year.

Now, 95.9 percent of the these graduates choosing to work in Shanghai are still employed, 1.2 percentage points more than the survey result in the previous year.

Almost 70 percent of them worked in areas related to what they had learned in colleges, said the report.

About 80 percent of them said they were very satisfied or relatively satisfied with their jobs, while 6.1 percent said they were not quite satisfied or very dissatisfied.

Their average salary one year after graduation was 6,236 yuan per month, up 25 percent from their starting pay.

The average salary for 2015 graduates was 5,659 yuan a month after the same period of working.

The current average pay was 4,645 yuan a month for junior college graduates, 5,495 for those with a bachelor's degree and 8,972 for those with master's or higher.

The finance industry still leads the pay level with 8,216 yuan per month, followed by education and health at 7,908 and 7,653 yuan per month respectively.

The proportion of job-hoppers was 2.6 points higher than that of graduates in 2015 during the first year after graduation.

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Permalink 02:24:42 pm, by dacare, 159 words, 126 views   English (US)
Categories: News of China

Beijing named best city for entrepreneurship

Beijing was recently named the best mainland Chinese city for entrepreneurship in 2017.

The ranking emphasized the impact of a city's policies and talents on its entrepreneurship. The main gauge was the enthusiasm of establishing start-ups, government policies and intellectual support.

Report shows that there are five major entrepreneurship regions in China, one of which is the North China region with Beijing and Tianjin at its core.

As the birthplace of the policy of innovation and entrepreneurship, Beijing has demonstrated increasing competitiveness in this aspect. A total of 1,450 Beijing enterprises are listed in the National Equities Exchange and Quotations, roughly equal to the combined total of those in Shanghai (878 enterprises) and Shenzhen (686 enterprises).

Beijing is also home to 174 national innovation and entrepreneurship platforms, still roughly the sum of those in Shanghai (89 platforms) and Shenzhen (86 platforms).

In addition, Beijing continued to relocate non-capital functions in 2016, which will grant more development opportunities to neighboring cities including the newly established Xiongan New Area.

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Permalink 05:04:14 pm, by dacare, 135 words, 211 views   English (US)
Categories: News of China

New Beijing Hyundai plant completed in Chongqing

A new Beijing Hyundai plant was completed in southwest China's Chongqing Municipality Thursday, raising the company's annual capacity by 22 percent to 1.65 million units.

The plant, the fifth factory of the company, will start operation in August, with an annual production of 300,000 automobiles and 200,000 engines.

Construction of the plant started in June 2015 with a total investment of 7.75 billion yuan (1.15 billion U.S. dollars).

Beijing Hyundai is a joint venture between Beijing Automotive Industry Holding and the Republic of Korea car maker Hyundai Motor.

Chongqing's auto output continued to take the lead in China, with automakers churning out 3.16 million cars last year, 11 percent of the country's total.

The output values of the automobile and electronics manufacturing industries climbed 11.7 percent and 17.7 percent respectively in 2016, and the two industries contributed 55 percent to the city's gross industrial growth last year.

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Permalink 05:16:07 pm, by dacare, 228 words, 343 views   English (US)
Categories: News of China

Wanda to sell 13 tourism programs and 76 hotels to Sunac for $9.3 billion

Dalian Wanda Group agreed to sell 13 tourism programs as well as 76 hotels to Tianjin-based property company Sunac China Holding in a deal worth 63.17 billion yuan ($9.3 billion) on Monday, according to a statement Wanda sent to the Global Times the same day.

Sunac will acquire 91 percent of the 13 cultural and tourism programs, including those based in Xishuangbanna, Southwest China's Yunnan Province, Hefei, capital of East China's Anhui Province and Harbin, capital of Northeast China's Heilongjiang Province, after paying 29.58 billion yuan to Wanda, the statement said. The Hong Kong-listed company will then undertake all the loans for developing those programs.

The company also agreed to buy out 76 hotels owned by Wanda, including Wanda Realm Beijing and Wanda Reign Wuhan for 33.6 billion yuan, the statement noted.

The two firms are expected to sign a detailed agreement by July 31 and complete the transfer of payment, assets and shares "as soon as possible", according to the statement.

After the deals are settled, the transferred cultural and tourism programs will still use the Wanda brand. Wanda is also still responsible for their construction, operation and management.

As of 11:20 a.m., the share price of Dalian Wanda Commercial Properties, the Hong Kong-listed arm of Wanda, has surged to HK$ 1.16 (14.85 cents), almost double the number listed from the opening earlier this morning. The Sunac's shares were suspended from trading on Monday ahead of the acquisition announcement.

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Permalink 03:55:15 pm, by dacare, 226 words, 491 views   English (US)
Categories: News of China

Catering sector takes a bite out of sharing economy

In the restaurant street outside Beijing's Ritan Park, the day starts slowly, but not for Guo Hongtao, manager of a take-out only restaurant. As online lunch orders begin to pour in, his 20-square-meter kitchen is gearing up for the day. The space is rented from Panda Selected, a start-up that offers co-cooking space to take-out kitchens.

Panda Selected also helps its tenants in a variety of ways, including designing logos, writing menus, planning online operations, connecting them with good suppliers, negotiating with food delivery platforms and applying for business licenses.

As some companies share kitchens with take-out only restaurants, some others share meals. Cengfanqu is one of the apps that bring foodies to household dining tables.

On the other side of the app, home chefs, most of them unemployed housewives living in the countryside, are more than happy to start their own business from home. By benefiting the local rural community, the app has also gained support from the local government.

China's food takeout market totaled 113.3 billion yuan in 2016, according to business think tank Analysys. The massive market means opportunities for kitchen and meal sharing companies.

At the same time, industry insiders say, kitchen and meal sharing remain a fledgling segment of the market. They note that innovation and regulation are the key factors that could help make it a stable part of the sharing economy.

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Permalink 04:19:07 pm, by dacare, 317 words, 284 views   English (US)
Categories: News of China

Multinational firms lose luster among Chinese students: survey

Multinational companies no longer enjoy recruitment advantages in China as domestic IT and Internet companies increasingly gain favor among Chinese students, according to data released Thursday by international consultancy Universum in Shanghai.

The Stockholm, Sweden-headquartered Universum received assessments of 233 employers from 79,346 students majoring in business, engineering, science, social sciences and humanities, law and medicine.

In the survey, 18 percent of Chinese students said they were willing to work for a multinational, a decrease from 25 percent in 2016 and 28 percent in 2015. The proportions were even lower among science and engineering majors—only 16 percent of engineering students and 14 percent of science students wanted to join a multinational after graduation. The students said multinationals were less stable than their domestic counterparts.

This year, the top five most attractive employers for business majors were Alibaba, Huawei, Bank of China, Ernst & Young, and PricewaterhouseCoopers, while the top five most favored by engineering students were Huawei, Tencent, Alibaba, Baidu and Microsoft.

Alibaba and Huawei were also attractive to other majors. Alibaba was the second most attractive employer among science students and the top among students of social sciences and humanities. Huawei took the first spot among science students, and was the second most popular among business students and majors in social sciences and humanities. Tencent also ranked high among various majors.

Chinese Internet companies were well known for competitive compensations that came with highly stressful workloads. But the survey found Chinese students attributed these companies' attractiveness to their entrepreneurial spirit, creative working environment, team work and corporate social responsibility. The students valued "a sound support for future career development" when it came to choosing an employer.

Wu Gang, the vice-president of Universum's Asia-Pacific region, said that "In recent years, through our surveys and research, we've found an obvious change. That is, China's indigenous IT and Internet companies are becoming increasingly popular, while the competitive advantages multinationals used to enjoy are no longer that noticeable."

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Permalink 04:33:18 pm, by dacare, 443 words, 184 views   English (US)
Categories: News of China

Investors will be wary of putting money into independent media

Investors will be more cautious in putting money into "content producers" as the industry faces more risks after China's online regulator recently shut dozens of entertainment social media accounts, industry experts told the Global Times on Monday.

About 30 WeChat accounts mainly covering celebrity scandals have been closed, the Guangdong Province office of the Cyberspace Administration of China (CAC), the Internet and mobile app regulator, said in a notice on Saturday.

Some of the accounts won investors' attention because of their popularity, but the closure will definitely hurt their investors, Xiong Gang, chairman and founding partner of China ASB Ventures, an investment management company, told the Global Times on Monday.

The Beijing office of the CAC said in a notice on Wednesday that 60 popular celebrity gossip social media accounts were closed in line with the country's new cybersecurity law, which was effective on June 1.

The closed WeChat accounts include Dushe Movie, a movie criticism app that had more than 2 million followers.

Germany-based Bertelsmann Asia Investments led a series A funding round in Dushe, valuing it at 300 million yuan ($44.13 million), according to a report by financial news portal China Money Network in August 2016.

Xiong warned that investors need to weigh risks before choosing these projects, adding that it's very important for "content producers" to comply with the law in China.

Xiong said that his company will instead invest in sectors based on technology innovation, which offer relative stability.

There is still potential in the media industry, however.

In 2017, the independent media in China will be more regulated and sites producing high-quality content will more easily get investors' attention, said a white paper released in February by Beijing-based, a research company focusing on independent media.

"We have invested in some projects in the entertainment industry such as video platforms," Yu Wenhui, founder of the Guangzhou-based investment company Thunderstorm VC, told the Global Times on Monday.

The projects his company invested in are mostly operated on several platforms, not like some accounts that are limited to WeChat, because having only one platform is risky, according to Yu.

Of the accounts that were closed on WeChat, some may seek new channels and opportunities.

"But it costs a lot to regain public attention and attract investors," Yu noted.

Some experts said that the closures' impact will be limited.

"Although some of the social media accounts are quite popular, it's still hard to monetize their estimated value" anyway, said Chang Zongfeng, co-founder of Shanghai-based crowdfunding company

Investors will be more cautious as they will need to know whether a site's content is in line with the country's cybersecurity law, Chang told the Global Times on Monday.

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Permalink 05:20:19 pm, by dacare, 251 words, 224 views   English (US)
Categories: News of China

Beijing's first private bank set to open

The Beijing office of China's banking regulator on Tuesday approved the opening of Zhongguancun Bank, the capital's first private financial institution. It will be the 13th such bank granted permission to operate in the country.

The registered capital of the bank is four billion yuan (590,000 U.S. dollars). The bank has 11 stakeholders, the majority of them being innovative tech enterprises located in the Zhonguancun area of Haidian district, a hub known for tech start-ups.

Private stakeholders

The biggest stakeholder is Yonyou Network Co., Ltd., an enterprise management software and cloud service provider with 100 offices around the world. Yonyou has been listed on the Shanghai Stock Exchange since 2001. The company holds a 29.8% stake in the bank.

According to the Beijing office of the China Banking Regulatory Commission, the bank will serve the needs of SMEs in the technology sector, providing them with support in funding and other financial services, boosting the innovative development of companies in the Zhongguancun area and other Chinese SMEs using technologies such as Big Data and cloud computing.

China promotes private banks

In 2014, China approved a pilot scheme which set up five private banks to give private capital a bigger role in the country's financial system.

In June last year, the State Council released guidelines aimed at promoting the development of private banks by encouraging and guiding private capital to the banking sector.

The government aims to provide more individualized and convenient financial services to medium-and-small sized companies, rural areas, agriculture and farmers and mass entrepreneurship and innovation.

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Permalink 04:40:16 pm, by dacare, 572 words, 164 views   English (US)
Categories: News of China

Sand from Naiman Banner has turned the desert region into an exporting hub with high-tech industrial products

A worker at Naiman Banner Huaxin Silicate Products carries bricks inside the company's factory.

Sand from Naiman Banner has turned the desert region into an exporting hub with high-tech industrial products

You might have just walked on "magic bricks".

If you stroll outside Beijing's National Aquatics Center, also known as the Water Cube, on a rainy day, you will notice something very different.

The water instantly drains through the paving stones, or bricks, before traveling through the drainage system below.

"Our bricks have been used in more than 500 projects in 13 municipalities and provinces," said Ye Haoqian, general manager of the Inner Mongolia Renchuang Ecology Environmental Protection Industry Co Ltd, which makes the paving stones. "They effectively solve the problems of urban flooding and disperse rainwater."

Inner Mongolia Renchuang Sand is based in Naiman Banner of Tongliao city in the Inner Mongolia autonomous region.

The high-tech enterprise turns silica sand into a coated substance, widely used in sectors such as oil exploration, construction and casting as well as paving stones.

Naturally, the price increases from about 300 yuan ($44.1) per metric ton for untreated sand to up to 6,000 yuan per ton for the coated product that has liquid-permeability properties.

This allows water to pass through without destroying the bricks or turning them into mush.

"With patented technologies, we are now planning to export our products to the United States, with annual productivity of 600,000 tons of specially-treated industrial sands," Ren said.

Still, the company is just one of 38 businesses involved in the industry in Naiman Banner.

Around one million tons of sand a year come from the region.

But then, the area is famous for it with the industry employing 2,000 workers, while annually revenue tops 2 billion yuan, according to local government data.

There are numerous grades of products, including building material sand, mechanical precision casting sand and glass making sand.

Since Naiman Banner is located at the heart of the Kolqin "Sand Land" that is hardly surprising. Up to 62 percent of the region is desert and it used to be one of the poorest areas in China.

Every year, villages used to be buried in sand, whipped up by the constant wind forcing residents to move out.

But in the 1980s scientists made an exciting discovery?Naiman Banner was rich in the finest silica sands with reserves of 50 billion tons.

With the building blocks of an industrial-scale production line, the government decided to develop the sector by rolling out the Angnai Sand Mine in 1984.

"Relying on the large reserves of silica sand, local government has developed the industry and turned what many saw as waste into wealth," said Zhu Zhenmin, deputy director of forestry bureau in Naiman Banner.

So far, there are six industrial parks and three of them are built on sand.

"We do not take over arable land when it comes to industrial development," Zhu said. "Sand has become a specific character in attracting investment."

Major Chinese companies, including Renchuang Sand, the largest in the sector, moved there from Beijing.

"By attracting well-known enterprises, we have introduced technologies and solved the problem of financing," Zhu said.

The central government has also helped to cultivate high-tech businesses by setting up research and development organizations.

Naiman Banner Huaxin Silicate Products Co Ltd has developed 21 new products and obtained 12 patents. It manufactures lime-sand bricks.

"Our annual sales revenue hit 30 million yuan last year with total asset exceeding 60 million yuan," said Pan Taiyan, general manager of the company.

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Permalink 02:59:14 pm, by dacare, 419 words, 230 views   English (US)
Categories: News of China

Lotte to sell loss-making stores

A Lotte Mart in Beijing, Feb 28, 2017.

Lotte Mart, the retail arm of South Korea's Lotte Group, is expected to sell some of its loss-making stores in China, a South Korean newspaper reported.

But it is finding it hard to sell the stores at a decent price or even find a proper buyer at a time when the hypermarket format is no longer attractive to local consumers.

The South Korean retailer is in negotiations with potential Chinese buyers to sell 20-30 of its loss-making stores. At present, 90 percent of its 74 hypermarkets are no longer in operation, according to Aju Business Daily.

Jason Yu, general manager of Kantar Worldpanel China, said Lotte is seeking buyers for its struggling stores but will keep its profit-making outlets.

"Lotte doesn't have many advantages. Its best option is to sell its business to local retailers in China, which are likely to be interested in Lotte's regional presence if they want to boost their dominance in specific regions."

"It is hard for Lotte to sell at a good price given that the hypermarket business model is struggling for survival and consumers favor smaller formats such as convenience stores and online shopping," said Yu.

"Lotte's main problem is it failed to keep pace with the profound changes in China's retail environment," said Yu.

According to the Korea Herald, South Korean retail group Shinsegae Group has decided to close its chain of discount supermarkets in China. Shinsegae Vice-Chairman Chung Yong-jin told reporters that the company's E-mart chain will be leaving the Chinese market after 20 years.

According to a Shinsegae spokesman, the E-mart stores will be closed at the earliest possible date, depending on local contract conditions for each store.

Despite aggressive investment, the chain failed to gain traction and underwent massive restructuring. At the end of 2010, the chain had 26 stores, but it now operates just six.

"Failure to adapt to the changing demands of Chinese consumers and retaining the same business model for years were held as the major reasons for the exit of E-mart in China," said Yu.

In the first quarter of this year, hypermarkets, supermarkets and convenience stores grew only 0.3 percent, according to Kantar's report.

Some traditional retailers have met the challenge of change in the nation's consumer market by improving their offerings in fields such as fresh and imported food, and tie-ups with e-commerce.

For example, Wal-mart Stores Inc moved onto the platform of Inc on May 25, to make the best use of JD's massive logistics system and Wal-mart's global merchandise supply.

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Permalink 04:49:58 pm, by dacare, 525 words, 433 views   English (US)
Categories: News of China

China to increase momentum in smart manufacturing

China will focus on smart manufacturing by integrating the strategy of "Made in China 2025" with the Internet Plus Initiative as well as entrepreneurship and innovation to upgrade the country's traditional industries and help advance economic restructuring.

The decision was made at a State Council executive meeting presided over by Premier Li Keqiang on Wednesday when a report on the strategy's implementation was delivered to participants.

Since implementing the strategy in 2015, the country has seen a steady progress in industrial capabilities, smart manufacturing, innovation, and product quality and branding. A recent case in point was the passenger jet C919 that took its first test flight earlier this month.

The meeting decided to focus on smart manufacturing and further deploy new technologies such as the industrial internet to make manufacturing a smarter and greener sector that offers better services and products.

Average productivity was up by 38 percent for China's first 109 pilot projects of smart manufacturing, while operating costs dropped by 21 percent, according to the Ministry of Industry and Information Technology.

The premier said "Made in China 2025", as a crucial part of the supply-side structural reform, is vital to moving the country's economy up the value chain. The key is to exploiting advantages of China's domestic market and human resources, as well as further promotion of basic research and innovations, he said.

"Implementation of the strategy has introduced strength to the real economy, especially the equipment manufacturing. However, we should also keep aware of our weak links as much of the industry is at the medium and lower end of global supply," Li said.

"Made in China 2025" was first unveiled in the Government Work Report in March 2015. Two months later, the State Council released a guideline, which focused on five key projects, including smart manufacturing, and 10 key fields such as new materials.

Key technologies will be on top of agenda, including independent research and development. Innovative development in fields such as new materials and robots will be accelerated.

As of Wednesday, the Ministry of Industry and Information Technology has approved pilot regions for the strategy, namely 12 cities such as Ningbo in Zhejiang province and three city clusters in provinces such as Jiangsu. Some of them will be designated as the country's demonstration areas, which will get favorable policies in investment, financing and other fields.

The premier urged to establish demonstration areas, where small and medium-sized enterprises can develop with large companies for collaborated growth and greater global competitiveness.

The meeting also decided to cultivate a new model of incorporating the manufacturing sector with the Internet Plus Initiative. The country will strengthen cooperation with other countries to achieve mutually beneficial outcomes.

The country will introduce advanced management, raise quality standards and guide companies to put quality as their top priorities. More efforts will be made to attract and recruit talents from home and abroad. More items for governmental approvals will be streamlined with lower threshold for market access and improved oversights to nurture an excellent business environment. Greater financing supports will be given to the real economy to increase resources for industrial upgrading. Intellectual property rights will also be given greater emphasis to safeguard legitimate rights of market entities.

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Permalink 05:28:00 pm, by dacare, 543 words, 377 views   English (US)
Categories: News of China

China toughens auditing of overseas investment by state-owned companies

Chinese authorities will introduce an improved, rigorous system of auditing overseas investment by state-owned companies as the pressure of cross-border capital flow remains.

The auditing system focuses on decision-making by state-owned companies on overseas investment and joint ventures, and their financial management and internal control, in addition to capital security, operating benefits and risk control of overseas state-owned assets.

Major methods of auditing include domestic inspection, auditing and analysis of documents and inquiries into relevant parties.

If necessary, regulators will go overseas for on-site verification and evidence collection in accordance with international practices and laws of the countries in which state-owned companies invest.

Outbound investment has grown rapidly in recent years and played an important role in deepening mutually beneficial cooperation between China and other countries as well as promoting domestic economic restructuring.

However, irrational speculation, illegal transfer of assets, and fake transactions all disrupt China's foreign exchange and financial markets, causing state-owned asset losses and hurting national interests.

A recent report released by China's foreign exchange regulator unveiled some cases in which companies had illegally transferred assets overseas under the guise of outbound investment.

Some newly established firms, which had produced nothing, were providing large sums of outbound investment. Some heavily indebted companies borrowed more to acquire companies overseas. These are just a few of the examples listed by the State Administration of Foreign Exchange.

Risks are inherent in any investment and cannot be avoided. Given growth in overseas state-owned assets, regulation of those assets has been a new challenge facing Chinese authorities.

In support of the country's "going out" strategy for investment, businesses of state-owned companies, especially centrally administered ones, have expanded to more than 150 countries and regions with over five trillion yuan (about 725 billion U.S. dollars) in overseas assets, earning global fame for high-speed train, nuclear power and ultra high voltage projects.

Compared to foreign multinational giants, Chinese state-owned companies lack experience in overseas operations and risk control.

With more companies "going out," China's overseas investment has been exposed to complicated problems in culture, human resources and corporate management. Some enterprises have paid high prices for those problems.

"The first step is to roll out measures to regulate overseas investment, the second is to stipulate company operations strictly, and the third is to develop a system of accountability," said Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission (SASAC).

Noting an irrational tendency in outbound investment, Chinese authorities have set stricter rules and advised companies to make their investment decisions more carefully.

Since the beginning of 2017, SASAC has introduced negative lists and designated investment redlines for both domestic and overseas investment by state-owned companies.

"There is no doubt that a more comprehensive and stringent auditing system will help standardize China's overseas investment and contribute to maintaining and increasing the value of state-owned assets," said Li Jin, chief researcher with the China Enterprise Research Institute.

China's outbound direct investment fell by 64 percent year on year to reach 20.9 billion U.S. dollars in the first quarter, thanks to increasingly rational market players and guidance by relevant government departments.

Last year, the country's outbound direct investment surged over 40 percent from a year earlier, the result of an increasingly globalized Chinese economy and also stemming from some irrational or illegal acts.

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Permalink 05:28:00 pm, by dacare, 245 words, 238 views   English (US)
Categories: News of China

China's trade surplus widens in April

China's foreign trade surplus widened in April as import growth decline outpaced that of exports, customs data showed Monday.

Exports in yuan-denominated terms rose 14.3 percent year on year to 1.24 trillion yuan (179.8 billion U.S. dollars), down from the 22.3-percent increase in March.

Imports expanded 18.6 percent to 979.1 billion yuan, compared with a 26.3-percent increase a month ago.

That leaves a trade surplus of 262.3 billion yuan, up 0.6 percent year on year. The surplus widened from 164.3 billion yuan seen in March.

In the first four months, total trade volume added up to 8.42 trillion yuan, up 20.3 percent year on year.

While the April trade growth fell short of expectations, customs data reflected improved trade structure.

In the first four months, general trade expanded 21.6 percent year on year to 4.75 trillion yuan, accounting for 56.5 percent of the total trade volume.

Trade of private enterprises grew 21.7 percent to 3.17 trillion yuan in the first four months, accounting for 37.6 percent of the total, and 0.4 percentage points higher than the same period last year.

Despite rising protectionism and anti-globalization sentiment, China's imports and exports with major trade partners remained strong.

During the first four months, trade with the European Union gained 15.5 percent year on year to 1.24 trillion yuan, accounting for 14.8 percent of the total. Trade with the United States expanded 20.3 percent to 1.18 trillion yuan, making it China's second largest trade partner.

Customs data also showed that a leading indicator for China's exports rebounded from 40.2 to 40.7 month on month in April, signalling positive potential in exports.

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Permalink 02:00:38 pm, by dacare, 248 words, 308 views   English (US)
Categories: News of China

WeChat to make payment service available in U.S.

WeChat is already one of China's most popular mobile payment methods. Now the social media app, owned by Internet giant Tencent, is teaming up with Silicon mobile payment startup Citcon to take its services to the U.S. market.

Through WeChat accounts, users will be able to pay for whatever they need in Chinese currency RMB without cash, just as they do in China.

For four consecutive years, China has been the world number one outbound tourism country, accounting for over 13 percent of the total tourism revenue globally. The United States has been one of the most popular destinations for Chinese travelers.

"Last year, over 100 million Chinese people traveled outside of China. Once they see this place can accept WeChat Pay, they can use their mobile phones. They certainly receive much warmer welcomes? from foreign countries," according to Chuck Huang, CEO of Citcon.

Mobile payment is the new frontier of commerce, and China is leading this trend. By providing an easy-to-use mobile payment and cross-border marketing solution, WeChat is empowering global merchants to connect with millions of Chinese consumers.

Currently, WeChat Pay is available in 15 countries and regions, for payments in 12 foreign currencies.

Tencent has now joined Apple and Google-parent Alphabet in the ranks of the world's biggest firms by market capitalization, with a value of more than 302 billion U.S. dollars. Shares in the tech company hit a record high on Tuesday.

It's the only firm outside the U.S. among the world's top 10 most valuable companies.?

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Permalink 03:34:26 pm, by dacare, 268 words, 252 views   English (US)
Categories: News of China

Alibaba's Yu'ebao becomes world's largest money market fund

Alibaba's Yu'ebao is now the world's top money market fund with 1.2 trillion yuan (170 billion U.S. dollars) of assets in the first quarter this year. However, growth in interest rates hasn't been expanding along with the size of the fund.

Data from Alibaba shows registered users of Yu'ebao reached 300 million as of the beginning of this year, and Yu'ebao's total assets now exceed the size of the money market fund run by JP Morgan.

The annual return Yu'ebao is now paying is only around 3.9 percent, however, notably less than it has paid historically.

Still, as the returns are both stable and better than those offered by commercial banks, many investors are sticking with it.

Other factors leading to the popularity of Yu'ebao are that it is easy for users to manage, and that it has a low investment threshold with only one yuan.

An increasingly important point, however, is that the annual interest Yu'ebao pays is nowhere near as high as when it was launched.

The current interest rate on a Yu'ebao investment is down by almost 40 percent from its 2014 peak. Some customers are becoming skeptical.

However, the lower interest rates don't necessarily mean that a Yu'ebao investment has no risks.

The main risks of money market funds come from interest rates and the liquidity risk. Once money market funds go into deficit, investors will want to cash out. Similar cases happened in 2008 financial crisis.

In fact, the overall size of China's money market funds is falling.

Total assets of money market funds in China was 3.9 trillion yuan in the first quarter this year, down by 7 percent quarter-on-quarter.

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Permalink 03:44:53 pm, by dacare, 503 words, 233 views   English (US)
Categories: News of China

Robots replace human labor beyond manufacturing bases

A robot arm writes calligraphy.

The smart technology leading to an explosive growth of robotic replacement for human labor has begun to flourish beyond the traditional manufacturing bases, but also in China's service industry.

According to the Ministry of Industry and Information Technology, robots have replaced humans in manual work in 5,000 industrial programs over the past four years in Zhejiang Province, involving investment totaling 500 billion yuan (US$72.5 billion).

Ling Yun, deputy director of the Zhejiang Provincial Economic and Information Technology Commission, said that, by 2015, the usual manual labor pool has slimmed down by some two million workers.

Moreover, Anhui, Guangdong and Shandong provinces are pressing ahead with robotic substitutes in their cutting-edge industries where manual jobs for both men and women are being substantially reduced.

According to the Beijing Morning Post, jobs better suited to robots comprise the assembly of intelligent vehicles, firefighting and medical care, which all benefit from the employment of industrial data analysis, information technology and 3D auxiliary design.

The workshop of Shenzhen Rapoo Technology, facing a labor shortage of labor from 2005, purchased 75 robots in 2011, with immediate benefits in declining labor costs.

Nowadays, one of its computer keyboard assembly lines needs only five workers responsible for monitoring the automatic processing by the robots that have replaced an estimated 100 workers previously employed there.

The replacement has continued to prevail by moving from assembly lines to banking and logistics.

In 2015, China Construction Bank installed a number of robots to replace staff in its call center. Currently, STO Express, one of China's leading privately- owned logistic companies, has adopted 320 robots to categorize deliveries in Linyi City, Shandong Province.

The robots can deal with 18,000 parcels weighing a maximum of five kilograms each every single hour at a high rate (often 100 percent) of accuracy. As a result, the labor force in the Linyi branch was cut by 80 percent from 150 to 30.

Despite the expansion of robots into the job market, experts have assured human workers not to overact to the smart automatic fashion as the trend can free them from the shackles of mundane toil for more complicated techniques and meaningful endeavor.

Wang Yamin, an employee from Guangdong Changying Precision High-Tech Co Ltd, said, that when the work she was doing was temporarily taken over by robots, she attended a two-month training enabling her to get a promotion to be a technician with increased salary.

"Currently, the robots, whose sensors remain weak, can only run in a certain framework," said Ding Han, dean of the Mechanical Science and Engineering School of Huazhong University of Science and Technology.

"The special robots have to complete their missions with remote controls," he added.

According to NEKKEI's Chinese news web, more and more young people receiving high education in China are not interested in repetitious manual jobs, which, in addition to the rising labor costs, are challenging the manufacturing competence of the country.

The advent of robots, which can be used for at least 10 years, helps the country, an economic locomotive in the world, sustain the momentum of economic growth.

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Permalink 02:36:22 pm, by dacare, 299 words, 455 views   English (US)
Categories: News of China

Finance, real estate industries offer highest executive pay

Executives in the finance and real estate industries have the highest pay among 1,894 listed companies that announced their annual financial reports in 2016, said China Economic Weekly.

On average, executive pay packets hit 7.09 million yuan ($1.02 million) in 2016, up eight percent year-on-year, higher than the rate of China's GDP and per capita disposable incomes, which were 6.7 percent and 6.3 percent respectively. Yet disparities are clear among sectors and companies.

Among the 18 sectors categorized by the China Securities Regulatory Commission, financial executives ranked the highest with annual pay of 27.36 million yuan, followed by real estate executives at 11.18 million.

The average pay for executives in educational companies was the lowest, just over 2.8 million yuan and about one tenth that of their counterparts in the financial sector.

The quickest growth in executive pay on average came from the hotel and catering sectors, at 47.58 percent. But top managers at companies in the fields of scientific research and technology services saw their pay decrease by 4.2 percent.

Executives at leading Chinese insurer Ping An snatched the highest pay at 108 million yuan, about 158 times higher than executives working for Puyang Huicheng Electronic Material.

Twenty-four companies reported their executive pay as being lower than one million yuan, and 1,033 companies put the figure between one million and five million. Ten companies announced that their executives were paid more than 50 million yuan.

Seven executives received pay above the 10 million yuan threshold. Lin Yong, an executive assistant at Haitong Securities, scored the highest pay packet at 15.49 million yuan. Ping An's Chief Investment Officer Chen Dexian and Yin Ke, the former executive director at CITIC Securities, received pay packets of 12.86 million and 12.08 million respectively.

Wang Jie, the general manager of a Beijing-based investment company, said the higher pay for executives in the financial and real estate industries shows the imbalance in development in China.

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Permalink 05:06:20 pm, by dacare, 522 words, 216 views   English (US)
Categories: News of China

Buyers' interest spurs clean energy market innovation

As Chinese people are showing a growing interest in new energy vehicles, industry insiders are urging carmakers to make technological progress to remain competitive and calling for change in sales and after-sales policies to boost consumption.

Automakers are presenting 159 new energy cars at the ongoing Shanghai auto show, representing about 11 percent of all exhibits at the event.

According to a recent report from measurement company Nielsen, the popularity of clean energy vehicles is rising among Chinese consumers due to improvements in the cars' performance and mileage.

The report, based on a survey of 2,307 respondents from the country, said 27 percent of car-buyers are considering purchasing purely electric cars and 25 percent are interested in plug-in hybrids.

This is the first time that electric cars have attracted more fans than plug-in hybrids since the annual survey launched in 2012.

Nielsen said electric cars available in the country had an average mileage of 164 kilometers in 2016 and the number has grown to 252 km this year.

However, the survey revealed that people expect on average a range of 374 km from electric cars.

The company said such expectations would push traditional carmakers to improve their research and development.

"It is one of the best times as a new sector develops; it is also one of the worst times as competition is extremely fierce. Carmakers must do their best," said Olive Zhang, vice-president of Nielsen China.

Some traditional carmakers have released concrete plans.

German carmaker Volkswagen said electric models based on its current platform can achieve a range of 300 km and those on its MEB platform will double the figure. "Cars based on the MEB platform are scheduled to be localized in China by 2020," said Jochem Heizmann, president and CEO of Volkswagen Group China.

New players continue to join the race. Within a year the authorities have approved 13 new energy carmakers' plans to build their plants. Their combined investment stands at 26 billion yuan ($3.8 billion) and their combined annual capacity will reach 760,000 vehicles.

Electric car startup NextEV is showcasing 11 models at the Shanghai auto show in the hope of getting a slice of the growing market.

China has been the world's largest new energy car market since 2015. Last year, it sold 507,000 electric cars, plug-in hybrids and fuel cell models, 53 percent growth year-on-year.

The rise in their sales could prompt car dealers to change how they run their business, said Shen Jinjun, president of the China Automobile Dealers Association, at a new energy car meeting in Shanghai.

He said such cars differ from gasoline ones in that they need little daily maintenance, which is now a major source of revenue for gasoline car dealers. Shen suggested that the companies could consider shifting the focus of their business from car sales and maintenance to building experience centers.

Nielsen's report shows that 60 percent of potential buyers would undertake online research, while about a quarter go to brick and mortar stores to see new energy cars and test-drive them.

Shen's organization has been pushing for changes to the current car warranty policy, which was tailor-made for gasoline cars.

The warranty covers major components such as the engine and the gearbox, which electric cars do not have.

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Permalink 05:26:33 pm, by dacare, 367 words, 310 views   English (US)
Categories: News of China

Tencent sees huge advances for AI in manufacturing

China's manufacturing sector is set to climb the adoption curve of cloud computing and artificial intelligence this year, after the service industry reaped early gains from the internet, said Pony Ma, chairman of Tencent Holdings Ltd.

As new technologies cascade through markets, less productive business models will cede ground to more innovative ones which are streamlining business processes and optimizing supply and demand, he told a packed audience at a digital economy conference on Thursday.

"With initial strides being made in the service sector, manufacturing, which is the backbone of China's economy, has begun heavily investing in the building blocks of the internet economy. Traditional manufacturers, rather than internet firms, are leading this wave of disruptive innovation," Ma said.

Tencent, the gaming-to-cloud computing conglomerate, will play its part as "an infrastructure provider and a connector", he added, by sharing its big data analytics, location-based services, artificial intelligence and payment solutions with industrial players.

As part of that initiative, Tencent is providing its cloud computing might to build an industrial big-data platform for Sany Group Co Ltd, the nation's leading machinery equipment maker.

The virtual platform connects Sany's existing 300,000 devices globally and uses predictive analysis to head off problems before they happen, according to He Dongdong, Sany's senior vice-president. Through remote monitoring, malfunctions can be detected in real time and repaired within 24 hours, he said.

Ma told the conference that digitally-enabled innovation is likely to penetrate into the agricultural sector. Similar improvements are taking shape in the marketing and distribution of Tongwei Group, a feed and aquatic products maker.

Ma said it relied on Tencent's WeChat service to pair supply with demand. The increased digital engagement, including the adoption of location-based services, also expanded the company's reach and enriched customer interactions, he said.

Yang Yuanqing, chief executive officer of Lenovo Group Ltd, said Chinese manufacturers are exploring ways to employ big data on inventories and shipments to improve product planning, and were banking on artificial intelligence to provide predictive analysis and self-servicing capabilities.

"Companies will realize broad productivity gains in their operations by automating processes, streamlining product development and digitally reinforcing their supply chains," said Zhou Qiren, a professor of the National School of Development at Peking University.

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Permalink 04:54:06 pm, by dacare, 226 words, 279 views   English (US)
Categories: News of China

Beijing, Tianjin, Hebei pool $15b rail fund to boost integration

Beijing, Tianjin and Hebei province have set up a 100 billion yuan ($14.54 billion) joint railway fund to boost regional integration, authorities announced on Tuesday.

About 54 billion yuan, or 90 percent of the initial installment, comes from social capital with a time period of 10 years, according to Tianjin Daily.

The fund plans to invest 70 percent on inter-city railway construction, and the rest on land development along the routes.

Regional projects, including Beijing-Tangshan rail, Shijiazhuang-Hengshui-Cangzhou rail, and a second one connecting Beijing and Tianjin, which stops at Binhai New Area, will start construction this year.

Beijing-Tianjin-Hebei Railway Investment Co, the lead coordinator of the fund, signed agreement with 12 financial institutions, including the country's big five banks, Ping An Asset Management Co, and Capital Development Investment Fund Management Co in Beijing.

The fund is part of year-long effort by local authorities to renovate financing model in railway construction and attract social capital under market mechanism.

In all, Beijing, Tianjin and Hebei will see an addition of nine inter-city rail lines by 2020, with a total estimated investment of 247 billion yuan, according to a notice released by the National Development and Reform Commission (NDRC). Commute time between major cities and their surrounding counties will be significantly reduced.

China rolled out the integration plan for Beijing-Tianjin-Hebei in 2015 to address urban problems such as traffic and air pollution and seek balanced development of the region.

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Permalink 02:16:30 pm, by dacare, 195 words, 267 views   English (US)
Categories: News of China

Skoda debuts first electric car in Shanghai

Skoda CEO Bernhard Maier showcases the company's electric car Vision E on April 17.

Czech carmaker Skoda Auto has unveiled its first ever electric concept car in Shanghai, declaring that electric cars will be a pillar of its development strategy.

The Vision E has a maximum output of 225 kilowatts and can run at a top speed of 180 km/h, with a mileage of 500 km.

The concept also features Level 3 autonomous driving, which means it can drive itself on express ways and park itself without human intervention.

The first of these electric cars will hit the market in 2020.

Skoda CEO Bernhard Maier said it will launch five entirely electric cars in various segments of the market before 2025.

In addition to the concept car, Skoda announced it will release an estate car, Octavia Combi, into the Chinese market later this year.

China has been Skoda's largest market worldwide.

It sold 317,000 cars to Chinese customers last year, and Skoda plans to double sales by 2020 with its growing portfolio.

Skoda entered the Chinese market in 2007 and has since localized its models with SAIC Volkswagen. Statistics show that it has sold more than 2 million cars in China in the past 10 years.

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Permalink 03:42:11 pm, by dacare, 197 words, 252 views   English (US)
Categories: News of China

Disposable income growth outpaces GDP growth in China

Chinese people's disposable income expanded at a faster pace than economic growth in the first quarter of this year, the National Bureau of Statistics (NBS) said Monday.

Per capita nominal disposable income of Chinese nationwide rose 8.5 percent in the first three months from a year ago, and per capita real disposable income after taking into consideration the effects of inflation increased 7 percent, outpacing the gross domestic product (GDP) growth rate of 6.9 percent in the period, NBS figures showed.

Breakdown figures showed that urban residents' per capita real disposable income grew 6.3 percent year on year in the first quarter to 9,986 yuan (about 1,452 U.S. dollars), while per capita disposable income of rural residents rose at a faster pace of 7.2 percent in the period to 3,880 yuan.

Other indicators released by the NBS on Monday, including fixed-asset investment and industrial production, pointed to stabilization in the world's second-largest economy.

NBS spokesperson Mao Shengyong said the economy had achieved a rosy start this year and the income gap between rural and urban residents narrowed, laying a solid foundation to realizing its full-year economic target.

The government trimmed this year's growth goal to around 6.5 percent from a range of 6.5 to 7 percent for 2016.

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Permalink 02:38:56 pm, by dacare, 450 words, 236 views   English (US)
Categories: News of China

Integrity of workers, companies crucial in job-hopping era

The head of a human resources market research company in China has called for companies, based throughout the nation, to strengthen integrity management processes in China's job market, as well as encouraged government officials to improve relevant laws and regulations.

Tian Yongpo, from the Chinese Academy of Personnel Science, said "integrity at work is even more important in such an era with explosive information about jobs", and added for example the mobility of Chinese labor forces gradually increased from 2010 to 2014.

Tian said, at a forum held by in Beijing on Wednesday, China's floating population grew 12.65 percent, moving from 221 million to 253 million people, from 2010 to 2014.

"Huge information about jobs have accumulated during the process," he said.

"Among explosive information, a problem will certainly arise about information transfer and distortion.

"As a result, our credibility at work is greatly influenced."

His comments came shortly before a survey, published at the forum, which stated more than 80 percent of respondents said the credibility of Chinese workplaces were poor.

The survey collected information from more than 6000 people, as well as 3000 human resources managers, and was carried out by a website that helps companies investigate personal information,, between March 10 and April 10, 2017.

More than half of the respondents to the survey believed dishonest behavior had resulted in a loss to companies and individuals.

Guo Wenlong, the deputy head for Labor Law Studies of Shanghai Law Society, said the "call for a law is natural since one could not get all the information he needs to (determine if a person in focus is credible or not)."

Guo went on to mention authority figures should improve laws and regulations on the non-competition agreement in the labor law, as the occasional employee has operated in a grey area to avoid company requirements and restrictions.

HR managers listed the worst behavior as missing job interviews, slacking off at work and even job-hopping.

Individuals overstating work performance and experience, as well as falsifying their educational background, were recorded as the most common dishonest behaviors to be seen.

To avoid hiring these types of candidates, 97 percent of HR mangers believed it was necessary to investigate the information job seekers' provided during the early stages of recruitment.

More than 90 percent of job seekers agreed to the necessity of a background check; however, most people believed companies should seek the candidate's approval before undertaking their enquiries.

Li Aijun, a law professor with the China University of Political Science and Law, urged companies to follow China's rules, regulations and laws while undertaking investigations into personal information.

She cautioned the act of obtaining sickness records, property information and particular criminal history records, as these acts could become illegal after a certain point.

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Permalink 04:59:51 pm, by dacare, 177 words, 208 views   English (US)
Categories: News of China

China FDI growth slows in March

Foreign direct investment (FDI) into the Chinese mainland rose 6.7 percent year on year in March, slowing from February, official data showed Thursday.

FDI reached 87.8 billion yuan (12.8 billion U.S. dollars) in March, the Ministry of Commerce (MOC) said in a statement.

The growth rate was lower than the 9.2-percent increase recorded in February.

Total FDI in the first three months of the year edged up 1 percent year on year to 226.5 billion yuan, the MOC said.

During the same period, 6,383 new foreign-funded enterprises were established on the Chinese mainland, up 7.2 percent year on year.

Most investment went to the service sector, which saw FDI expand 7.1 percent year on year in the first quarter to account for 73 percent of the total FDI.

Investment in utility services soared 165.6 percent year on year, while high-tech services attracted 28.7 billion yuan of investment, up 12.4 percent year on year.

Investment from the European Union grew 11.2 percent in the first quarter, the MOC data showed.

Last year, China attracted 126 billion U.S. dollars of foreign direct investment, the largest recipient among developing countries, data showed.

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Permalink 01:19:43 pm, by dacare, 169 words, 235 views   English (US)
Categories: News of China

German hardware giant establishes first retail store in China

German hardware giant Wurth Group opened its first retail store in northeast China's Liaoning Province on Monday.

The store, located in the China-Germany Equipment Manufacturing Industrial Park in the province's capital Shenyang, displays thousands of products, such as fasteners, tools, chemical products and personal protection equipment.

"The favorable location and preferential policies of Liaoning, one of China's northeastern rust belt provinces, offered many development opportunities for investors," said Larry Stevens, CEO of Wurth China.

"We hope Wurth can introduce more advanced products and technology into this park, have further cooperation with local companies, as well as offer new ideas for the industrial development," said Li Baojun, deputy director of the management committee of the industrial park.

Founded in 2015, the China-Germany Equipment Manufacturing Industrial Park covers 48 square kilometers, attracts intelligent manufacturing, high-end equipment, automobile, industrial service and strategic emerging industries.

Wurth Group, founded in 1945, is a world market leader in the assembly and fastening material trade. It entered the Chinese market in 1994 and has 1,200 employees in more than 100 Chinese cities.

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Permalink 03:35:48 pm, by dacare, 392 words, 177 views   English (US)
Categories: News of China

Logistics makes shopping seamless in the new era

Logistics will play a critical role in fulfilling a seamless shopping experience in the era of the "New Retail", experts said.

As merchants begin to lean more on omnichannel sales, retailers need to tailor how a product is purchased and delivered to meet customer demands.

A survey of the world's leading retailers last November showed the top reasons for embarking on the omnichannel journey are to preserve a slice of the market share and improve customer loyalty.

The survey was conducted by US-based ARC Advisory Group in conjunction with logistics consultancy DC Velocity.

Most retailers are looking for the simplest means possible to integrate the new platforms within their existing infrastructure.

The study found out that three-quarters of retailers fulfilled orders from multiple channels through a single facility, laying a clear foundation of omnichannel practice.

In the survey, 86 percent said they took orders online (including mobile) while 77 percent also said brick-and-mortar, and 42 percent said they took orders from call centers and catalogs.

In terms of handling "last mile" deliveries, most merchants stick to the traditional courier delivery services at 43 percent, followed by third-party logistics partners at 23 percent. But others are experimenting creative options, including deliveries made by store staff and drones.

In China, e-commerce companies are experimenting with omnichannel solutions by offering warehouse-to-home and stores-to-home deliveries through partnerships and investments in offline supermarkets.

For instance, through its Cainiao logistics affiliate, an alliance of top Chinese shipping and courier companies, e-commerce giant Alibaba last year expanded its same-day and next-day deliveries from 50 cities to 200 cities.

According to a study by Goldman Sachs in March, Cainiao had 'Fulfilment Centers' dedicated to Alibaba's Tmall online marketplace operating in 19 cities at the end of last year.

It runs three fresh food distribution centers in three major Chinese cities: Beijing, Shanghai and Guangzhou. All of them support cold chain delivery of fresh food purchased on Taobao and Tmall to the doorsteps of Chinese consumers within 24 hours.

It recently upgraded the service by providing fresh, rather than frozen, imported Australian beef to the dining tables of residents in 12 cities in China. Cainiao said with its new technologies, meat can be preserved fresh between 0-4 degrees for up to 21 days.

Others are also making new moves on prompt deliveries. Inc has successfully used drones to deliver online purchases to rural shoppers, using unmanned aircraft for last-mile distribution.

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Permalink 02:58:39 pm, by dacare, 465 words, 282 views   English (US)
Categories: News of China

Overseas experts expect China's new economic zone to deepen all-round opening up

Aerial photo taken on March 31, 2017 shows Baiyangdian, north China's largest freshwater wetland, in Anxin County, north China's Hebei Province.

International media reports and observers say the establishment of China's new economic zone not only provides a new blueprint for the coordinated development of Beijing-Tianjin-Hebei (BTH) region, but also indicates China's determination to deepen its opening up in an all-round way.

China announced Saturday it would establish the Xiongan New Area in north China's Hebei Province, which is located some 100 km southwest of downtown Beijing.

Well-known international media outlets have enthusiastically reported about the new economic zone, regarding it a major decision of the Chinese government to promote the coordinated development of the BTH region, and a signal of China's willingness to continue to embrace globalization and free trade.

The Associated Press said the economic area is part of a plan to integrate the capital with its surrounding areas, noting that prior to this, the Chinese government had already planned to jointly develop Beijing, the port city of Tianjin and Hebei Province to boost regional and economic development in the northern region.

The Strait Times of Singapore said the removal of non-capital functions from Beijing is part of a greater strategy to integrate the development of Beijing, Tianjin and Hebei for a better economic structure, a cleaner environment and improved public services.

Bloomberg cited Bill Bowler, a sales trader at Forsyth Barr Asia Ltd. in Hong Kong, as saying that this would be one of the centerpieces of a high-level development plan for the Beijing-Tianjin-Hebei region.

Moreover, overseas analysts believe that the establishment of the new economic area will broaden economic growth and improve the level of China's opening-up.

Jose Ignacio Martinez, an international relations researcher from the National Autonomous University of Mexico, said Xiongan New Area's intended focus on developing high-end, high-tech industries has positive meaning for the country's overall industrial upgrading, and will stimulate a new round of China's economic growth.

Martinez also noted that Xiongan New Area's policy on opening up will further promote foreign direct investment and improve the level of China's opening up, citing the the successful examples of Shenzhen Special Economic Zone and the Shanghai Pudong New Area.

Paola De Simone, an expert on international law and economic analyst from Argentina, said China's determination to build the area is an important component of the effort to promote economic globalization, and the setting up of Xiongan New Area will continue to boost the openness and inclusiveness of China's foreign communication and cooperation.

Simone added that Xiongan New Area, along with the seven new free trade zones, demonstrates China's open and friendly attitude toward the world.

She said China's step-by-step promotion of opening up is conducive to improving its production efficiency, driving its consumption, boosting foreign direct investment and enhancing innovative ability.

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Permalink 02:57:26 pm, by dacare, 617 words, 222 views   English (US)
Categories: News of China

Managing economic development as well as risks

A worker at a plant in Xingtai, Hebei province, Jan 25, 2017.

Despite China's slower but more sustainable growth path, economic growth remains high by global standards as the country's population ages and the economy re-balances from investment to consumption and from manufacturing to services.

Still, as China's economic reforms continue, risks need to be addressed, as President Xi Jinping said recently, to cope with corporate over-leveraging, as well as to reduce overcapacity in the real estate and heavy industry sectors.

In the last few decades, the government has always been careful to pay attention to economic signals, including those against potential risks and problems, and carefully planned the structural reforms. The recently concluded annual sessions of the country's top legislature and top political advisory body also took note of the financial risks and adopted measures to tackle them.

Why is this important? Because the debt of non-financial enterprises in China has reached almost 170 percent of GDP by the end of last year, the highest level among leading economies, with State-owned enterprises accounting for more than 70 percent of the total corporate debt. In this context, the government's measures to tackle financial risks should include the gradual removal of implicit guarantees to SOEs and restricting leveraged investment in the assets markets.

China has already made progress on this front. Namely, the guidelines to deepen reforms of SOEs, issued in September 2015, describe six priority areas including aspects like mixed ownership and transitioning to a modern enterprise system. And 68 percent of the central government-controlled SOEs under the State-owned Assets Supervision and Administration Commission of the State Council had introduced non-State managers by the end of 2015, and more than 80 percent of all the SOEs under SASAC have set up or are in the process of setting up a board.

In addition to allowing companies with high debts (especially those in overcapacity industries) to exit the market, the government should also help them restructure, and ensure that the process takes place gradually in order to prevent the waste of valuable resources (which could be better used more efficiently or to make growth more inclusive).

Therefore, the Organization for Economic Cooperation and Development suggests that insolvency procedures of the so-called zombie enterprises could be accelerated to reduce uncertainty and compensate laid-off workers.

Another aspect emphasized by the OECD regards the sharing of the benefits of growth, since China's tax and transfer system remains less efficient than those in other leading economies. For example, many low-income households pay a higher share of their incomes as social security premiums than the richer ones. And workers who are outside the formal labor market are not required to participate in the pension and medical insurance schemes, potentially increasing their financial vulnerability.

Hence, the OECD believes that the authorities should base the calculation of social security contributions of low-income households on their actual incomes, instead of the current system that prescribes a minimum contribution calculated on an imputed value of their earnings equivalent to 60 percent of the previous year's local average wage. The subsequent loss of revenue can be partly offset by the money that can be realized by reforming the individual income tax system, say, by abolishing the tax exemptions that favor high-income households. For instance, the interest received on government bonds or savings in banks, which now is non-taxable income, should be taxed.

All in all, it is important to highlight that the Chinese economy will remain the major driver of global growth, which is good news to the world economy. And once enterprises improve their performance through innovation and entrepreneurship, and the SOE reforms gain pace through exposure to market mechanisms, more jobs will be created and the benefits of economic growth can be shared by all.

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Permalink 02:29:00 pm, by dacare, 179 words, 278 views   English (US)
Categories: News of China

China's central bank continues to drain liquidity from market

China's central bank on Friday skipped the open market operations of reverse repos, draining liquidity from the market.

This was the sixth consecutive business day that the People's Bank of China (PBOC) has halted the open market operations of reverse repos, a process where it purchases securities from banks with an agreement to sell them back in the future.

This meant that there was no injection of short-term funds into the banking system, which led to a net cash withdrawal, as previous reverse repos matured Friday and siphoned 30 billion yuan (4.3 billion U.S. dollars) from the market.

The PBOC said in a statement that liquidity in the banking system was "at a relatively high level" as the government sped up fiscal spending near the end of the month.

Fiscal expenditures mean fiscal deposits flow into commercial banks from the central bank, thus, improving market liquidity.

China has pledged to pursue a prudent and neutral monetary policy in 2017, with the M2, a broad measure of the money supply, to grow by around 12 percent, one percentage point lower than the 2016 target.

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Permalink 01:11:07 pm, by dacare, 132 words, 438 views   English (US)
Categories: News of China

China sees robust air passenger growth in January

China's civil aviation sector posted strong passenger growth despite a decline in cargo transportation in January this year, official data showed Monday.

Air passenger trips in January increased 17.6 percent year on year to 43.9 million, according to the Civil Aviation Administration of China.

The pace was faster than the 11.8-percent growth registered for the whole year of 2016.

Passenger trips made on domestic routes rose 17.4 percent year on year to 38.96 million in January, while those made on international routes surged 19.1 percent to 4.97 million.

In January, air cargo and mail freight topped 565,000 tonnes in January, decreasing 3.8 percent year on year, affected by waning domestic cargo and mail business.

Domestic air cargo and mail freight declined 5.6 percent in January year on year to 409,000 tonnes, while international cargo and mail freight increased 0.9 percent in January to 156,000 tonnes.

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Permalink 03:46:48 pm, by dacare, 174 words, 252 views   English (US)
Categories: News of China

Unilever prepares sale of food brands: newspapers

Unilever is preparing a 6 billion pound ($7.44 billion) sale of some of its food brands, British newspapers reported on Saturday.

The Anglo-Dutch company is planning to sell Flora margarine and Stork butter brands, the Sunday Times said.

The Sunday Telegraph, which also cited a figure of 6 billion pounds, quoted sources as saying private equity firms Bain Capital, CVC and Clayton Dubilier and Rice have started working on offers for these businesses. Unilever did not immediately respond to a Reuters request for comment.

The maker of Knorr soups, Dove soap and Ben & Jerry's ice cream rebuffed a surprise $143 billion takeover offer from Kraft Heinz last month, stating that the group "sees no merit, either financial or strategic, for Unilever's shareholders."

The company has launched a business review to consider returning cash to shareholders, making medium-sized acquisitions and more aggressive cost cuts, the Financial Times reported on Wednesday. In a report released in January, Unilever stated that its food business sector sustained its return to growth, driven by the packs with easy-out technology and organic variants.

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Permalink 03:19:09 pm, by dacare, 408 words, 345 views   English (US)
Categories: News of China

Shared bikes revitalize cycle industry

Ofo bikes around Chaoyang Park in Beijing.

Until fairly recently, bicycle production had been considered a sunset industry, but a nationwide resurgence caused by the popularity of shared bikes has given it a second lease of life.

Li Dewu, the manager of a bike production company based in Shenzhen says he never expected such a spike in demand.

Last year the downturn in demand had Li worried about his business, but an order for thousands of shared bikes just before the Chinese New Year turned things around. Li described the major deal as a second madness in his twenty year career that made him both excited and yet also a little nervous.

Hu Zefeng, who runs a cycle production company in Shenzhen, also had a busy few months with deals for over 1.5 million bikes received in total. "We have employed about 500 new workers and added 7 more assembly lines from Shenzhen to Tianjin." Hu said.

The demand for bike parts and accessories has also seen a boost. Du Kaishan, manager of a bike saddle provider said: "my factory is over loaded now, with hundreds of thousands saddles having to be made in a single deal every month."

The ubiquitous shared bikes are causing a stir in China. Companies such as Ofo and Mobike have over 10 million registered users and distribute cycles to every corner of cities including Beijing and Shanghai.

According to statistics from the China Cycle Association, over 2 million shared bikes have been placed in more than 30 cities in China since 2016.

Pricier cycles

The expansion in the shared bike market has, however, been accompanied by a rise in the price of cycles. Producers have raised their prices by 5 percent on average, according to The Paper.

A manager at a cycle assembly factory in Suzhou said the high demand for shared bikes had resulted in a shortage of cycle supplies, which influences the cost of the end product.

An industry insider said another element triggering pricier bikes is the rising price of steel and rubber, the raw materials used to make cycle frames and tires. Some types of steel have seen a 35 percent increase in prices over the last year, rubber nearly 70 percent.

Most of the cycle producers though said that they would continue with the original price of each bike or perhaps raise it a little for regular clients. Ofo, Mobike and new business entrant Bluegogo have all denied that the cost of their cycles has gone up.

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Permalink 05:52:20 pm, by dacare, 409 words, 260 views   English (US)
Categories: News of China

China enhances crackdown on capital market fraud

World Consumer Rights Day has arrived, and China plans to enhance its crackdown on capital market fraud.

The country's top securities regulator, the China Securities Regulatory Commission (CSRC), announced last Friday that it would impose the maximum penalty on office service provider China Nine Top and AnShan Heavy Duty Mining Machinery for severe violations of information disclosure rules.

China Nine Top is reported to have inflated its revenue and bank deposits while covering up an assets gap in order to restructure with the listed company AnShan Heavy Duty Mining Machinery.

Besides exposing companies faking assets to get listed, securities watchdogs have punished other capital market counterfeit practices such as inflating financial performance to avoid delisting, and fraudulent initial public offerings using fake documents.

In order to stay on the stock market, a property developer close to being delisted due to poor financial performance turned a profit from a loss in 2016 by selling part of its equity at an over-valued price in the fourth quarter, according to the Shenzhen Stock Exchange.

There will be enhanced supervision over year-end asset selling, and restructuring to crack down upon profit manipulation, according to the stock exchange.

In February, the CSRC announced 20 representative illegal stock market cases of 2016, including the high-profile case of Dandong Xintai Electric, the first company to be forced to delist from the Chinese stock market due to IPO disclosure cheating.

"We will continue to expose some influential fraud cases in areas like restructuring and acquisition," said Liu Shiyu, head of the CSRC, late February. "For wrongdoings on the capital markets, we will follow and treat them in a timely and tough manner."

The CSRC imposed 139 administrative punishment decisions last year, 13 as cases of financial fraud.

"Listed companies are profit-seeking, and it seems that they can get more than what they might have to pay for, by cheating, so they make reckless moves to try their luck," said Tian Lihui, a financial professor with Nankai University. "So there should be harsher punishment, and most importantly, improvement of the legal framework of the capital market, such as stricter requirements for information disclosure."

Meanwhile, regulators are also working on improving the delisting mechanism to improve the overall quality of the stock market and regulate backdoor listing.

"The CSRC will require stricter information disclosure to deter financial cheating, urge intermediaries like accounting agencies and stock exchanges to fulfill due responsibility and modify delisting standards," said Jiang Yang, deputy head of the CSRC, last week.

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Permalink 02:33:55 pm, by dacare, 183 words, 304 views   English (US)
Categories: News of China, Manufacturing & Industry

Lincoln to make SUV in China with Chang'an Auto Group

Lincoln, the luxury unit of Ford Motor Co, said on Monday that it plans to build a luxury sport utility vehicle in China in partnership with the Chang'an Automobile Group.

The as-yet unnamed vehicle will be built at a plant in the city of Chongqing. It is scheduled to go on sale in late 2019 only in China, the world's largest auto market, according to Lincoln spokesman Said Deep.

Building in China will help Lincoln meet growing customer demand and enable the company to become more responsive to changing customer preferences, Deep wrote in an email. "As Lincoln grows in China it makes sense to produce this new SUV in China," he added.

Lincoln exports its vehicles from North America to China, and reported sales of 32,558 in 2016, three times more than it sold in 2015.

Ford and its joint venture partners sold a record 1.27 million vehicles in China last year. Lincoln isn't the only US luxury brand taking aim at China. General Motors said its Cadillac volume in China rose 46 percent in 2016 to 116,406 , the first time it passed 100,000 vehicles in China in a single year.

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Permalink 03:32:06 pm, by dacare, 226 words, 271 views   English (US)
Categories: News of China

Boeing's first overseas factory to be built in China's Zhoushan

Boeing and Chinese aviation manufacturer Commercial Aircraft Corporation of China Ltd.(COMAC) will start to build a Boeing 737 completion center in eastern China's Zhoushan city at the end of March, scheduled to make its first delivery in 2018.

This is Boeing's first overseas facility as part of its 737 production system, and designed to deliver 100 Boeing 737 planes a year.

In the joint-venture completion center, Boeing's 737 aircraft will be installed with flight entertainment systems and seats. The plant in Zhoushan, 287 km southeast of Shanghai, also provides services such as coating, repair and maintenance of Boeing aircraft.

Boeing and COMAC signed an agreement in October 2016 to set up the Zhoushan plant, which will consist of two parts: the 737 completion center, a joint venture of Boeing and COMAC, and the 737 delivery center owned by Boeing.

Construction of the delivery center will also start at the end of March.

To accommodate aircraft manufacturing in Zhoushan, Putuoshan Airport in the city is undergoing a 750 million yuan (108 million U.S. dollars) expansion to become an international airport.

In addition to supporting Boeing, the aviation base in Zhoushan will also develop an entire industrial chain for aircraft manufacturing, with the capacity of assembling, delivering and modifying 600 aircraft a year by 2025.

Zhoushan is an archipelago and island city in Zhejiang Province, which has the largest fishery in China and boasts strong shipbuilding, tourism and service industries.

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Permalink 01:33:45 pm, by dacare, 207 words, 298 views   English (US)
Categories: News of China

5% listed Chinese companies led by females

A female user of Red (Xiao Hongshu) poses with the company's staff at its anniversary celebration in Shanghai.

About one in every 20 A-share companies is led by female, according to a report by Securities Times released on International Women's Day on Wednesday.

The number of chairwomen in Chinese mainland-listed firms totals 151, accounting for 5 percent of all top posts. Equipment manufacturing, pharmaceuticals, chemical engineering, real estate, and automobile are the top five industries with most female business leaders.

About 70 percent of the chairwomen were born in the 60s or 70s, according to the report. Corporate head Hu Jiajia of Shanghai Metersbonwe Fashion & Accessories Co and Liu Xiaoqing of Dalian Yi Qiao Sea Cucumber Co, both 30, are the youngest.

Of the 153 A-share firms run by women, 56 are listed on Shanghai Stock Exchange, 45 on Shenzhen small-and-medium enterprise board, and 31 on NASDAQ-styled ChiNext board.

Among the 145 chairwomen who have disclosed their education background, four have doctorate degree and 10 have studied abroad, noted the report.

According to a survey by professional networking site LinkedIn, 44 percent of all senior management roles in companies were held by women last year.

The need to balance family obligations and pressure from society are still believed to be major obstacles for women in the business world.

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Permalink 03:09:24 pm, by dacare, 419 words, 209 views   English (US)
Categories: News of China

Beijing crowned 'Billionaire Capital of the World' for second year: Hurun

Beijing beat New York City to become the "Billionaire Capital of the World" for the second year running, according to Hurun Global Rich List released on Tuesday.

The new list ranked 2,257 billionaires, up 69 from last year and a growth of 55 percent or 804 over the last five years.

Total wealth among billionaires increased by 16 percent to $8.0 trillion, equivalent to 10.7 percent of global GDP, and up from 7 percent of global GDP five years ago.

Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said global wealth is being concentrated in the hands of the billionaires at a rate far exceeding global growth.

New York has the highest concentration of billionaires, with 86, followed by San Francisco and Los Angeles on 29 and 23 respectively. The USA is the world's capital for immigrant billionaires. Two-thirds self-made, with one-third inherited. Average age among USA billionaires increased to 66, two higher than the list average.

Bill Gates, 61, is still the richest man in the world, despite only growing 1 percent to $81bn. Warren Buffett, 86, held onto second place, increasing his wealth to $78 billion, up $10 billion after a surge in the Berkshire Hathaway share price.

Jeff Bezos, 53, of Amazon, has broken into the Top 3 for the first time. Mark Zuckerberg, 32, the youngest of the Top 10, shot up to fifth, his highest ranking yet.

Chinese billionaires led the USA for the second year running, with 609 compared with 552, up 41 and 17 respectively. Hoogewerf said "China and the USA have half the billionaires in the world."

The combined net worth of Chinese billionaires is $1.6 trillion, 2.1 percent of the global GDP. Real Estate has generated most billionaires (120), followed by Manufacturing and TMT with 115 and 78 respectively, according to the report.

China is number 1 in the world in terms of generating self-made billionaires akin to "rags to riches" and is home to two-thirds of the world's self-made female billionaires.

Led by Beijing, 5 Chinese cities made the top 10 cities and 7 the Top 20. Average age is 58, six years younger than the list average.

Shenzhen surprised many by adding 16 billionaires to propel it into fourth place, just behind Hong Kong.

A February IPO propelled Wang Wei, 46, of SF Express to third spot, with a five-fold growth in his wealth to $27 billion, just behind Wang Jianlin and Jack Ma. Corporate raider Yao Zhenhua of Baoneng saw the fastest growth on the list, rising almost eight-fold to $15 billion.

Investments overtook tech to become the main source of wealth for American billionaires, with 121 and 112 billionaires respectively, followed by retail with 57. The combined wealth of U.S. billionaires was $2.6 trillion, 3.4 percent of global GDP.

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Permalink 02:33:21 pm, by dacare, 226 words, 208 views   English (US)
Categories: News of China

Telecom carriers to end domestic long-distance, roaming charges from Oct

A mobile phone user walks past a logo of China Mobile's 4G service in Qingdao, Shandong province.

The country's three telecom carriers, China Mobile Communications, China United Network Communications Group and China Telecommunications Corp, announced steps to scrap domestic long-distance and roaming charges from October 1, 2017, a move to drive forward industrial transformation and boast the upgrading and adjustment of real economy.

Li Yue, president of China Mobile, the country's largest telecom operator said the domestic roaming charges account for 8 to 10 percent of its total revenue, removal of such fees will have an influence on the company, adding this will encourage China Mobile to improve operation and management efficiency.

China Unicom said it will increase the coverage of broadband access, develop innovative applications, and upgrade products and services in response to the initiative of "increasing broadband access speed and reducing tariff" by the authority.

The Ministry of Industry and Information Technology (MIIT) will push forward the initiative with more effective measures.

"We will strive to remove completely the domestic long-distance and roaming tariffs for mobile users, greatly reduce the tariff for international long-distance call and dedicated internet access price for small- and medium-sized enterprises," said Chen Zhaoxiong, vice-minister of industry and information technology.

The ministry will make efforts to regulate the tariff-setting behaviors of enterprises, promote healthy market competition and continue to improve market environment of telecommunications.

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Permalink 01:15:50 pm, by dacare, 219 words, 688 views   English (US)
Categories: News of China

China's factory-gate inflation picks up in January

China's producer price index (PPI), which measures costs of goods at the factory gate, quickened growth pace year on year in January, fresh evidence of strengthening demand in the world's second-largest economy, official data showed Tuesday.

The PPI rose 6.9 percent year on year in January, an increase on the 5.5 percent registered in December 2016, according to the National Bureau of Statistics (NBS).

This represented the fifth straight month expansion of the PPI on a year-on-year basis and the highest reading since August 2011.

On a month-on-month basis, the PPI edged up 0.8 percent, with the growth pace narrowing down from the 1.6 percent recorded in December 2016.

NBS senior statistician Sheng Guoqing attributed the monthly PPI gain to factors including the carry-over effect of last year's price changes, spiking prices of metal, fuels, chemicals and other raw materials.

Factors including rebounding domestic demand and reducing outdated capacity helped push up the PPI and the index is likely to remain high in the coming months, according to Wen Bin, a senior researcher at China Minsheng Bank.

The January PPI figure outstripped market expectations, and Chinese policymakers should be alert to inflationary pressure caused by rapid PPI growth, according to Wen.

The PPI figures came alongside the release of the consumer price index, which rose 2.5 percent in January year on year, partially due to holiday effects.

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Permalink 12:50:12 pm, by dacare, 476 words, 326 views   English (US)
Categories: News of China

Used car sales on upward trend as provinces remove trade barriers

China's used car sales hit a record high in 2016, posting 10.3 percent growth year-on-year, as local authorities have been removing barriers on cross-provincial-border vehicle sales.

Statistics from the China Automobile Dealers Association show that 10.39 million used cars were sold last year. Industry insiders expect yet more to be sold this year.

Although the sector's growth did not keep up with surging new car sales, which saw a 13.7 percent growth rate in 2016, it was the first double-digit growth in used car sales for the past several years, said Luo Lei, the association's deputy secretary-general.

"The hard-won achievement was mainly a result of local governments gradually opening their markets to used cars from other regions," said Luo.

The State Council, China's cabinet released an eight-article guideline in March 2016, instructing local governments to lift any limitations on the flow of used vehicles between provinces by the end of May. China has 172 million cars, but local bans have curbed the free flow of used cars, resulting in insufficient supply. However, the policy has not worked out, according to Luo. He said the association's monitoring shows that while seven provinces, including Sichuan and Heilongjiang, have fully removed the barriers, many others have failed to do so.

Luo said those seven provinces saw double-digit growth in their used car sectors, which was significantly higher than that recorded in the provinces that did not remove the limitations.

Industry insiders say local authorities have failed to lift the ban because used cars usually have higher emissions and contribute less to the local economy than new cars. Luo said more regions will catch up now that the Ministry of Commerce and the Ministry of Environmental Protection have issued orders to implement the State Council's guideline. He expects sales this year to hit a new high as a result.

"Used car transactions accounted for 5.8 percent of China's total car sales last year. As local authorities remove their bans, it may return to the normal level of 7.3 percent, which will be 12.5 million vehicles," Luo said.

Xiao Zhengsan, secretary-general of CADA, calls for more attention to be given to the sector's development, saying used cars will contribute to China's automotive market's growth.

"China has become the world's largest auto market, but if its growth is driven by stimulus policies, it is not healthy," said Xiao.

According to Xiao, used cars and car finance will prove to be two critical and healthy market forces. "I will say, if we fail to do a good job in used cars, then it is impossible for us to do a job in terms of new cars sales. In one or two years you will see if I am correct," he said.

In developed markets such as the United States, used car sales are usually more than double those of new cars, while in China, they represent less than 40 percent of new car sales.

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Permalink 02:46:01 pm, by dacare, 115 words, 363 views   English (US)
Categories: News of China

China to reduce retailers' commercial logistics cost

China will improve its logistics network to reduce costs for wholesalers and retailers.

The government will reduce the ratio of the retail and wholesale sectors' overall logistics costs on total GDP to 7 percent by 2020, according to a plan released by the Ministry of Commerce and other ministries.

High logistics costs hold back enterprises' growth. The ratio of China's total logistics spending on total GDP stood at 14.5 percent in the first three quarters of 2016, much higher than the average 8-to-9 percent level in developed economies.

China will expand its commercial logistics network and improve efficiency through IT application.

The government will also establish several national and regional commercial logistics hubs and invest more in infrastructure development.

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Permalink 01:14:47 pm, by dacare, 1119 words, 459 views   English (US)
Categories: News of China, Banking & Financial Services

Alipay, WeChat, UnionPay have big plans to gain larger share of growing market

Titans clash over mobile payments

The competition in China's mobile payment market is growing tougher with the standardization of China UnionPay's quick-response code technology in December. The head-to-head digital hongbao wars between the two dominant players WeChat and Alipay during the Spring Festival holidays provides one piece of evidence. Behind the cutthroat turf war, both of the platforms have broader ambitions, including creating tailored financial products based on their collections of big data. In the near future, the industry will also be subject to tighter regulations.

It was not so long ago that the red envelopes, or hongbao, that people handed out during the Spring Festival holidays were actual red envelopes.

But over the last few years, many of the red envelopes stuffed with cash have existed only virtually on online payment platforms.

During this year's Spring Festival, a record of 46 billion electronic hongbao were sent and received via Chinese mobile social platform WeChat, which is operated by Tencent Technology Co, the Xinhua News Agency reported on Saturday. The figure was up 43 percent year-on-year.

Internet giants such as Tencent have promoted the use of virtual hongbao to expand their stakes in China's fast-growing mobile payment market, as local shoppers are now using their smartphones to pay for everything from taxi fares to medical expenses.

In 2016, China's third-party payment market is estimated to reach 20.3 trillion yuan ($2.96 trillion), up 45 percent from 2015, according to research firm Enfodesk. It projected that the market will grow by more than 20 percent annually to 33 trillion yuan by 2018.

The huge market base has lured a number of companies, making the turf war for China's mobile payment market more cutthroat.

Early market entrants including WeChat and Alipay, which are run by Tencent and Alibaba respectively, have developed swipe-and-go payment systems based on quick-response (QR) codes. The two companies, which together control more than 70 percent of the market, have strived to secure their predominant position by spending heavily on discounts.

As a result, the use of credit cards has declined, rattling the country's bank card association.

On December 12, 2016, China UnionPay announced its own standards for QR code payments. The move was followed by promotional campaigns involving more than 20,000 stores from December to February, a peak time for shopping.


It is not the first time that China UnionPay stepped up efforts to tap the mobile payment market. In December 2015, the bank card association rolled out its near-field communication (NFC)-based Quick Pass mobile payment tool, which enables consumers to make payments by tapping their smartphones against payment terminals.

But the NFC-based technology was not as popular as QR codes.

"That's probably why UnionPay developed its own QR code last year," said Li Yi, a research fellow at the Internet Research Center under the Shanghai Academy of Social Sciences.

Li was not optimistic that commercial banks would be able to break in. "WeChat and Alipay have a lock on the huge market thanks to an early entrance," he told the Global Times on Monday.

But UnionPay still stands a chance in the mobile payment market because its technology is safer and more trustworthy, Li noted.

An employee from a commercial bank, who preferred not to be identified, agreed. "UnionPay also has an advantage in large payment transactions because WeChat and Alipay are more frequently used in payment of small amount," the bank employee told the Global Times on Monday.

For example, the two digital wallets account for around 80 percent of the mobile payment market which are under 5,000 yuan, according to the employee.

However, Liu Dingding, an independent Internet industry analyst, pointed out that the cooperation between UnionPay and commercial banks is crucial to the bank card association's goal of getting to the top.

Currently, UnionPay and the commercial banks have a "strange bedfellows" relationship, Liu said.

"UnionPay is looking to promote QR code with banks, but the logistics behind major banks' moves are different - they seek to expand the user base of their own mobile applications so that they can engage with clients directly, which means banks may also cooperate with WeChat and Alipay if UnionPay's promotion has not achieved their desired result," Liu told the Global Times on Sunday.

Broader ambitions

To date, the battles in the mobile payment market between the two tech giants, Alibaba and Tencent, have also intensified.

Head-to-head against WeChat's hongbao-grabbing activities during the Spring Festival, Alipay continued last year's collection of five good fortune games with the introduction of augmented reality technology. Participants can split a 200 million yuan prize by scanning the street-side "fu" signs, or the Chinese character of fortune, that are ubiquitous during the holidays.

To attract users, the two digital wallets are also locked in a competition for offline payment points for businesses such as restaurants, supermarkets and department stores. Therefore, both platforms turned to third-party services providers who specialize in "offline promotion" and merchants services for potential offline business growth.

For example, WeChat announced in April a plan to attract third-party services providers with more than 300 million yuan in investments. Alipay also plans to provide 1 billion yuan in rewards to third-party services providers over the next three years.

But behind the tit-for-tat competition, both Alipay and WeChat have broader ambitions.

One is the collection of big data related to transactions, which enable those platforms to invent and tailor financial services such as marketing strategies, investment and loans to their clients, Liu said.

Tencent has been struggling with how to generate revenues based on its huge consumer bases. In an interview with Caixin magazine in January, Huang Li, director of WeChat Payment, refused to elaborate on the business blueprint for the platform, only noting that the company is considering a strategy "as a whole."

Regulatory controls

In the near future, the country's third-party payment market will face greater regulatory control.

In January, the People's Bank of China (PBC) announced a new regulation that requires third-party payment companies to deposit clients reserve funds in bank accounts that do not generate interest. The new rules are intended to ensure institutions do not put the money into "risky" financial services. It is expected to takes effect in April.

An Alibaba spokesperson refused to comment on the policy's effect on its business. He said that the company "welcomes the policy and will actively impose it."

According to a report published by research firm TrendForce, following the policy implementation, major domestic payment providers, including Alibaba and Tencent, will suffer a blow, as the policy prevents them from using the funds to generate interest income or grow their business.

But Li disagreed. "Large-scale firms do not rely on interest from client funds. So the new measures will only hurt small third-payment firms."

Yet the policy is likely to tip the scales in UnionPay's favor, Li noted.

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Permalink 03:23:24 pm, by dacare, 191 words, 683 views   English (US)
Categories: News of China

Shanghai sees firmer annual trade rise

Shanghai's trade volume hit a record in December, which helped the city post better growth in annual trade than the national figure, Shanghai Customs data showed.

Imports through Shanghai were a record 186.81 billion yuan ($27.3 billion) in December, lifting the monthly trade value over 300 billion yuan for the first time to 306.03 billion yuan, customs said.

For 2016, the city's imports and exports totaled 2.87 trillion yuan, up 2.7 percent from a year ago. The rise reversed a 2.1 percent decline in 2015.

The city's imports rose 5.2 percent to 1.66 trillion yuan last year, faster than the national gain of 0.6 percent.

Exports dipped 0.5 percent to 1.21 trillion yuan, but the drop was smaller than the national decline of 1.5 percent.

Trade with the US, Europe and Japan rose 2.3 percent to 1.4 trillion yuan last year, accounting for 47.7 percent of the city's total foreign trade.

The city's trade with the 22 markets having free trade agreements with China rose 5.4 percent to 1.1 trillion yuan.

Shanghai's exports of integrated circuits rose 8.5 percent, medical devices gained 3.8 percent, and solar battery grew 1.5 percent, customs said.

Foreign trade through the free trade zone rose 5.9 percent to 783.68 billion yuan last year, accounting for 27.3 percent of the city's total trade volume.

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Permalink 02:54:13 pm, by dacare, 109 words, 423 views   English (US)
Categories: News of China

Taiwan's jobless rate rises in 2016

Taiwan's average unemployment rate in 2016 stood at 3.92 percent, up 0.14 percentage points from 2015, the island's statistics authority revealed Monday.

On average, 460,000 people were out of work in 2016, increasing 20,000 from the previous year, with about 70,000 unemployed for a long period of time, the authority said. The total workforce in Taiwan reached 11.72 million last year.

The highest unemployment rate was observed among those who had a junior college education or higher at 4.23 percent in 2016. In terms of age, the unemployment rate among young people ages 15 to 24 reached as high as 12.12 percent, it said.

In December, the unemployment rate was 3.79 percent, both down 0.08 percentage points compared with November and the same period in 2015.

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Permalink 01:08:50 pm, by dacare, 73 words, 318 views   English (US)
Categories: News of China

China's urban unemployment rate at 4.02 percent

The registered unemployment rate in Chinese cities stood at 4.02 percent at the end of 2016, down from 4.04 percent three months earlier.

China created 13.14 million new jobs for urban residents last year, exceeding the official target, Lu Aihong, an official with the Ministry of Human Resources and Social Security, told a press conference on Monday.

The government has pledged to keep the whole-year registered unemployment rate below 4.5 percent and create at least 10 million jobs in 2016.

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Permalink 01:44:54 pm, by dacare, 129 words, 430 views   English (US)
Categories: News of China

Baidu picks exec to tap new tech

Baidu has hired former Microsoft executive and artificial intelligence expert Lu Qi as president and chief operating officer to help the Chinese search engine tap emerging technologies.

The heads of Baidu's technology, financial services and search units will all report to Lu as Baidu aims for a strong management team to drive the next phase of growth, the company said yesterday.

"To achieve our goals, especially in artificial intelligence, which is a key strategic focus for the next decade, we will need to continue attracting the best global talent," Baidu Chairman and founder Robin Li said in a statement.

Lu's appointment, with immediate effect, came a day after Baidu opened an augmented reality lab and followed an announcement in September of a US$200 million venture fund for emerging technologies.

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Permalink 04:15:18 pm, by dacare, 129 words, 360 views   English (US)
Categories: News of China, Manufacturing & Industry

Volkswagen to provide 400,000 new energy cars for Chinese market by 2020

German automaker Volkswagen plans to provide more than 400,000 new energy cars for the Chinese market by 2020, according to Professor Jochem Heizmann, CEO of Volkswagen Group China, Monday.

According to the plan, the number will increase to 1.5 million by 2025.

The company announced earlier that it would introduce 15 models of new energy vehicles in China in the next three or four years, to address the environmental protection needs of the Chinese market, as well as 10 models worldwide in the next decade.

New energy vehicles sales of the company are expected to reach 2 million to 3 million in 2025, 20 to 25 percent of its total sales.

China is Volkswagen's largest market. Volkswagen Group China and its two joint ventures delivered 3.98 million automobiles to the Chinese mainland and Hong Kong in 2016, up 12.2 percent year on year.

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Permalink 02:58:15 pm, by dacare, 237 words, 336 views   English (US)
Categories: News of China

Exodus of deliverymen to hit courier companies during Spring Festival

With this year's "Chunyun," the name given for the travel rush around Spring Festival, starting from Jan 13, some parcel deliverymen have returned to their hometowns to celebrate China's most important family holiday.

Courier companies, including SF Express, YTO Express and TTK Express, though have claimed that delivery and pickup will be normal during the Spring Festival holiday in response to the "No rest for the whole year" policy of the State Post Bureau.

However, due to the shortage of employees, some service stations will stop parcel pickup.

A deliveryman of YTO Express Beijing said that from Jan 15 parcels sent to other provinces will not be picked up, while Jan 20 is the deadline for parcels dispatched to be collected in the same city.

An employee of TTK Express said that parcel pickup will stop one week before the Spring Festival, reported.

Spring Festival, which falls on Jan 28 this year, is China's most important family holiday, with hundreds of millions heading for their hometowns to reunite with relatives and friends. It is expected to leave online shopping sites short-handed due to the exodus of workers.

Domestic express delivery services are getting a business boost from the explosive growth of e-commerce.

China's burgeoning courier service sector is predicted to generate 500 billion yuan ($72 billion) in business revenue this year, said Ma Junsheng, head of State Post Bureau. More than 40 billion express parcels will be sent in 2017, he added.

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Permalink 02:53:43 pm, by dacare, 258 words, 291 views   English (US)
Categories: News of China

Baofeng establishes new company to expand culture business

Baofeng Group Co Ltd, a Beijing-based internet entertainment and video company, announced on Thursday that it has established Baofeng New Culture Co Ltd to expand its business in culture, tourism and virtual reality, or VR.

Baofeng New culture will focus on intellectual property, or IP, investment, project incubation and operations in the fields of culture and tourism.

Working with Chongqing municipal government, the company will launch a 200-million-yuan ($29 million) fund, which will be invested in digital industry, VR content and innovation, VR experience centers and related projects.

Feng Xin, chief executive officer of Baofeng Group, said he took a rosy view of future integration between VR and the culture industry.

"In the wave of high-tech, the cultural upgrading will create richer forms of cultural tourism. And VR will play a key role in the development of cultural tourism," Feng said.

The new company will integrate artificial intelligence, the internet of things, big data, cloud computing and other technologies to develop local cultural and historical IP.

Connecting tourists, brand owners and local tourist sites, the company aims to build a cultural geographic digital system. And the online platforms' experiences will boost offline consumption.

In 2016, the VR industry is moving forward rapidly; tech giants, including Google, Facebook, HTC, Samsung, Huawei and Xiaomi all cultivated VR hardware.

According to industry consultancy iResearch Consulting Group, China's VR market revenues are expected to top 5.6 billion yuan last year, and will reach 55 billion yuan by 2020.

In 2016, Baofeng Group's revenue in the VR sector reached around 20 million yuan, Feng said at the end of December.

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Permalink 12:36:12 pm, by dacare, 389 words, 297 views   English (US)
Categories: News of China

Hon Hai takes hit from slowing iPhone sales

Hon Hai Precision Industry Co, the manufacturer of Apple Inc's iPhones, posted its first annual revenue decline since 1991, as it wrestled with a saturating global smartphone market.

The Taiwan-based firm said on Tuesday it recorded NT$4.36 trillion ($137 billion) in revenue in 2016, down 2.81 percent from a year earlier, after its biggest client Apple saw slowing iPhones sales.

Founded in 1974 by business tycoon Terry Gou, Hon Hai, also known as Foxconn Technology Group, is the world's largest contract manufacturer of consumer electronics. Apple accounts for half of its business.

James Yan, research director at Counterpoint Technology Market Research, said smartphone vendors and their supply chain partners are under big pressure as the global smartphone market slows down.

"Hon Hai's heavy reliance on Apple makes it extremely vulnerable to a single client's sales performance," Yan said.

Terry Gou, founder and chairman of Foxconn Technology Group.

In 2016, the global smartphone market was expected to grow by 0.6 percent year-on-year, far lower than the 10.4 percent growth rate in 2015, research firm International Data Corp estimated.

Hon Hai's decline came after Apple reported in October its first annual revenue dip since 2001. The US tech giant finds it increasingly hard to resonate with consumers in China, the world's largest smartphone arena where local players Huawei Technologies Co and Oppo Electronics Corp are gaining ground.

Nicole Peng, research director at Shanghai-based consultancy Canalys, said although Chinese brands such as Huawei and Oppo have also turned to Hon Hai to assemble smartphones, they only account for a small slice of the latter's business.

"There is an urgent need for Hon Hai to diversify its revenue sources. We expect shipments of iPhones to decline by 13 percent in 2016," Peng said.

Although Apple will see a stronger sales momentum this year, with a shipment of 211.7 million units of iPhones, it will still be far less than the 231.5 million units in 2015, Canalys forecast.

But Xiang Ligang, a smartphone expert and CEO of the telecoms industry website, noticed a bright spot in Hon Hai's financial report.

"In the quarter ended in December, sales were up 9.76 percent year-on-year, signaling big demand for the iPhone 7 Plus," Xiang said.

"It is too early to predict how Hon Hai and Apple will perform in 2017, because this year marks the 10th anniversary of the iPhone and Apple may unveil a cutting-edge product to revive its sales," he added.

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Permalink 01:23:37 pm, by dacare, 347 words, 283 views   English (US)
Categories: News of China

China creates over 13 million new jobs in 2016: official

China created over 13 million new jobs in urban areas in 2016 as part of an effort to stabilize the slowing economy. The country has seen over 1.2 million jobs created for three consecutive years, from 2014 to 2016, according to Economic Information Daily.

Despite the economic slowdown, the Chinese government has managed to keep a low urban registered unemployment rate, partially through employment services and support for college graduates, as well as for workers laid off from industries with excess capacity.

About 5.11 million workers in urban areas were re-employed from January to November 2016, or 102.2 percent of the goal set for the year. What's more, 1.54 million people categorized as difficult to employ found jobs, accounting for 128.3 percent of the annual target, according to reports.

Employment will remain a top priority in the next year due to lingering pressures. Experts believe 130 million new jobs will be created in 2017, as the industrial structure will be optimized and the economy stabilized. Reports indicate that approximately 25 million new jobs will be created during each year of the 13th Five-Year Plan period, among which 10 million are set aside for registered workers who have been laid off, 1.5 million are for college graduates and 3 million are for surplus agricultural laborers.

Employment will be the top priority of the Ministry of Human Resources and Social Security (MOHRSS), according to Yin Weimin, MOHRSS minister. A total of 7.95 million college students are expected to graduate in 2017, according to China's Ministry of Education.

Chen Baosheng, the minister of Education, said the numbers of college students who secured employment or started their own businesses after graduation has increased in the last three years. A report by Renmin University showed that 89.8 percent of college students have considered starting their own businesses, and 18.2 percent indicate firm plans to do so. The Ministry of Education called for improved policies that encourage college students to become entrepreneurs.

About 1.8 million jobs in the steel, coal and mining industries may have been lost by cutting overcapacity, which is the biggest employment pressure in five years, according to MOHRSS. The ministry has reportedly issued policies redistributing laborers in more than 20 provinces.

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Permalink 02:27:02 pm, by dacare, 226 words, 222 views   English (US)
Categories: News of China

Online car sales companies merge

Two of China's online second-hand car trading platforms have announced plans to merge.

Companies and agreed to work together to promote a customer-to-business model, known as C2B, to tackle the difficulty of individuals selling cars. has established nine branches across the country and accumulated more than 10,000 car dealers on its platform. Meanwhile, has a strong brand influence and regional operation management. has witnessed rapid growth since it was established in 2015. With 16,000 vehicles sold via its website and app last year, founder Xie Lei said its annual transactions have reached a value of 640 million yuan ($92.4 million).

Kaixin is the first online platform to adopt a C2B model to facilitate the selling of used cars from individuals to used-car dealers. With nine years of development, Kaixin became an industry giant and claims 8.8 percent of the used car dealing market in Shanghai.

"C2B can help customers sell cars at a reasonable price. It is the only model that suits China's actual conditions and caters to Chinese car-buyers' need," Xie said.

Xie said the newly-merged company will establish four operation centers nationwide, and more than 300 offline stores that provide related services in finance, insurance and ancillary products selling.

The company aims to reach a turnover of 12 billion yuan with 200,000 cars sold on its platform in 2017.

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Permalink 10:21:50 am, by dacare, 304 words, 312 views   English (US)
Categories: News of China

Services sector expands fastest in 17 months

China's services sector expanded at the quickest pace in 17 months in December as new orders increased rapidly in a further sign that the economy was stabilizing, a private survey showed yesterday.

The Caixin General Services Purchasing Managers' Index edged up to 53.4 last month from 53.1 in November, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media.

It was the highest reading since July 2015 as demand in the sector picked up.

A sub index showed growth in new work at services companies quickened to a 17-month record, according to the survey.

The fast growth in the services sector echoed an increase in manufacturing activities as the Caixin General Manufacturing PMI, released on Wednesday, rose to a four-year high of 51.9 points.

"Manufacturing and services both expanded in December, showing that recovery in the economy continued," said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group. "The Chinese economy performed better in the fourth quarter than in the previous three quarters" adding that he was certain the government's full year growth target of between 6.5 and 7 percent will be reached.

In the first three quarters, China's GDP grew 6.7 percent, within the official target of 6.5 to 7 percent. But it was 0.2 percentage points lower than the annual growth in 2015.

Services made up 58.5 percent of GDP growth, up 3.4 percentage points from a year earlier.

The Caixin PMIs, slanted toward private and export-oriented companies, indicated the private sector expanded in December and outperformed China's official PMI.

China's official PMI, released on Sunday by the National Bureau of Statistics and the China Federation of Logistics and Purchasing and focusing on state-owned manufacturers, dipped to 51.4 in December from November's 51.7. But PMI stayed in the expansion zone for the fifth straight month with the reading above 50.

In the services sector, the official non-manufacturing PMI dipped to 54.5 from November's 54.7 points.

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Permalink 03:14:16 pm, by dacare, 370 words, 252 views   English (US)
Categories: News of China

Chinese couriers to collect 500 bln yuan in 2017

China's burgeoning courier service sector is predicted to generate 500 billion yuan (72 billion U.S. dollars) in business revenue this year, a postal official said Thursday.

Over 40 billion express parcels will be sent in 2017, said Ma Junsheng, head of State Post Bureau (SPB).

In 2016, 31.3 billion parcels were sent, and the service created over 200,000 jobs, data from SPB showed.

The sector collected 400 billion yuan of business revenue last year, compared to just shy of 30 billion yuan in 2006, Ma said, calling the sector a "dark horse" of the economy.

China's courier market has grown from a handful of small businesses into a vibrant market contested by industry heavyweights, expanding 50 percent annually over the past six years, he said.

Leading delivery service provider ZTO Express became an NYSE-listed company in October 2016, the biggest U.S. IPO by a Chinese company after e-commerce giant Alibaba.

The debut came after the domestic listing of Yto Express, while competitors including SF Express, STO Express and Yunda Express expect to follow suit this year in a rush to buy more land, facilities, equipment and trucks.

The couriers' success is replicable and adaptable for the global market, Ma said.

Last year, the country's couriers helped deliver products bought online worth over 4 trillion yuan, or 12.5 percent of total retail sales of consumer goods, he said.

Still, China wants couriers to better serve its manufacturing industry and, to this end, it has launched 322 pilot coordination projects to accommodate an annual industrial output of over 120 billion yuan.

On the agriculture front, courier services have helped expand sales channels for farm products, and facilitated the sale of products worth over 100 billion yuan in 2016 and facilitated an on-going poverty-relief campaign.

The sector is well-positioned for the task, as courier services now cover 80 percent of towns and villages, and the country plans to extend this network by 2020, according to the SPB.

The increasing heft of the sector reflects China's solid progress in re-balancing its economic structure from manufacturing and investment to services and consumption.

Delivery and postal services are leading the growth in the service sector in China, home to the world's fastest growing postal market, Ma said earlier.

The country aims to deliver 50 billion express parcels annually, generating 800 billion yuan in business revenue, by 2020.

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Permalink 01:23:12 pm, by dacare, 117 words, 270 views   English (US)
Categories: News of China

December manufacturing activities expand to four-year high: private survey

China's manufacturing sector continued to expand with the purchasing managers' index hitting a 47-month high in December, a private survey showed Tuesday.

Caixin General China Manufacturing Purchasing Managers' Index (PMI), a private gauge of China's manufacturing activity, came in at 51.9 in December, up from 50.9 in November, according to a survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. Ltd.

This was the index's biggest rise since January 2013, and production grew at the fastest pace in nearly six years thanks to an increase in total new work.

Official manufacturing PMI released on Sunday stood at 51.4 in December, lower than 51.7 in November and staying above the 50-point boom-bust line for the fifth straight month.

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