Archives for: October 2017


Permalink 04:55:37 pm, by dacare, 277 words, 90 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, 167 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, 76 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, 189 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, 93 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, 101 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, 162 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, 177 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, 127 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, 117 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, 131 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, 120 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, 183 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, 128 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, 119 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, 129 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, 118 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, 88 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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