Opinion

 

1. More funding in basic research 

 

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization has proposed that basic research is conducted in a better organized way and we will raise the share of total science and technology expenditure that goes toward basic research. This provides important guidelines and action plans for vigorously promoting basic research and accelerating the realization of high-level technological self-reliance and strength on the new journey of the new era.

 

2. Speeding up establishment of better financial regulatory system

 

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization has proposed to improve the financial regulatory system to ensure that all financial activities are placed under regulation in accordance with the law, strengthen regulatory responsibility and accountability systems, and improve regulatory coordination between the central and local levels.  This is not only a practical need to comprehensively enhance the ability to prevent and control financial risks, but also a key measure to promote high-quality financial development and build China into a strong financial country.

 

Policy

 

1. A spokesperson for the Ministry of Commerce stated on August 16 that China will continue to relax market access for foreign investment, revise and release a new version of the negative list for foreign investment access as soon as possible, further relax restrictions on foreign investors' strategic investment in listed companies, and improve the institutions and mechanisms for high-level opening up.

 

2. China has increased financial incentives to encourage consumers to scrap their old vehicles to buy new ones, according to a circular issued on August 16. Subsidies for trade-ins of new energy passenger vehicles have doubled from RMB 10,000 to RMB 20,000, per the circular, which was released by the Ministry of Commerce and six other government departments. Subsidies for trade-ins of fuel passenger vehicles have been raised from RMB 7,000 to RMB 15,000.

 

3. The National Development and Reform Commission and the National Energy Administration on August 21 unveiled an action plan to promote large-scale equipment renewals in the energy sector, as it moves toward achieving carbon reduction goals. Measures detailed in the plan will focus on transformation of coal-fired power generation units, as well as equipment renewals and technological upgrading of wind power, solar power, hydropower and other areas.

 

Data

 

1. According to the National Bureau of Statistics, in July, the total value added of industrial enterprises above the designated size increased by 5.1 percent year on year, and the consumer price index (CPI) went up by 0.5 percent year on year. The national economy was generally stable with steady progress, featuring sustained recovery of production and demands, generally stable employment and prices, continuously expanding new growth drivers and solid progress in high-quality development.

 

2. National Forestry and Grassland Administration and other two departments released data on August 15, China's National Ecology Day, showing that China's collective forest area and forest stock volume both reached a new high, with China's forestry industry output exceeding RMB 9 trillion. 

 

3. Since this year, with the improvement of market supply, the potential of service consumption has been released continuously. Retail sales of services from January to July climbed 7.2 percent compared with the same period last year. Notably, the growth rate of service retail sales outpaced that of goods retail sales by 4.1 percentage points during the period.

 

4. Data from the Ministry of Commerce showed that 31,654 new foreign-invested enterprises were established from January to July this year, an 11.4 percent year-on-year increase. China's actual use of FDI in manufacturing industry was RMB 154.48 billion. The actual use of FDI in medical equipment and instruments manufacturing industry and professional technology service increased 87 percent and 41.3 percent respectively.

 

5. Data from the National Immigration Administration showed that during the first seven months of this year, a total of 341 million exit-entry travelers were inspected, marking a 62.34-percent increase year on year. Among them, there were 17.254 million foreign nationals, with an increase of 129.9 percent year on year.

 

6. There are currently more than 55 million private enterprises in China, accounting for 92.3 percent of the total enterprises in the country, and the number of individually owned businesses was more than 125 million. The number of private enterprises having entered into the world's top 500 increased to 34, as the National Development and Reform Commission said on August 20.

 

7. Outstanding renminbi-denominated loans reached RMB 251 trillion by the end of July, with an increase of RMB 13.5 trillion compared with the beginning of the year, as the National Financial Regulatory Administration said on August 21.

 

8. Latest data from the National Financial Regulatory Administration showed on August 21 that commercial banks have reviewed 5,392 projects on the so-called white list. The list recommends real estate projects eligible for financial support from financial institutions since the launch of the urban real estate financing coordination mechanisms in the first quarter. Approximately RMB 1.4 trillion has been approved for financing such selected projects.

 

9. From January to July, China's outbound non-financial direct investment reached USD 83.55 billion, up 16.2 percent year on year, according to the Ministry of Commerce. 

 

10. Bilateral trade between China and Vietnam reached USD 145.07 billion from January to July, up 20.9 percent year on year.

 

 

(Source: Economic Daily)