Source: Public Transportation Nice, Côte d’Azur French Riviera THIS ARTICLE IS FROM THE BLOG SITE OF MS. PENNEY VANDERBILT—PLEASE CHECK OUT HER SITE IF YOU LIKE TRAINS AND OR TRAVEL OR ARE A FAN OF TRANSPORTATION LOGISTICS.
(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)
Mainland-HK trade drops 7.1% in first 11 months
THE Chinese mainland’s trade with Hong Kong totaled US$274 billion in the first 11 months of 2016, down 7.1 percent year on year, according to the Ministry of Commerce.
The value accounted for 8.3 percent of the mainland’s total overseas trade in the January-November period.
Mainland exports to Hong Kong hit US$258 billion, a decrease of 9.3 percent year on year, while the mainland’s imports from the region saw an increase of 51.9 percent to US$16.1 billion.
Hong Kong is the mainland’s fourth-largest trading partner and third-largest export market, according to the ministry.
The mainland approved 11,309 Hong Kong-invested projects from January to November, with the actual use of Hong Kong capital reaching US$72.8 billion, down 6.8 percent from the same period of last year.
By the end of November, the mainland had approved 397,522 Hong Kong-invested projects, with the actual use of Hong Kong capital reaching US$906 billion, accounting for 51.6 percent of the mainland’s actual use of overseas capital.
(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)
Stability needed next year for stronger global economy
FOR China and the world to witness stronger economic growth next year, one thing is needed: stability.
For an international market trapped in fluctuations during a year of surprising events, a new direction in 2017 is a must, something discussed at a recently ended annual economic policy meeting in Beijing.
“Seeking progress while maintaining stability” was the main theme of this year’s Central Economic Work Conference, according to a statement released by the conference on Friday. Economic priorities for 2017 were also be hammered out.
With a gross domestic product (GDP) accounting for over 15 percent of the global total, China’s growth at 6.7 percent in the third quarter, or between 6.5 percent and 7 percent annually, represents a natural and significant contribution to global economic stability.
That is true more than ever since the International Monetary Fund in October revised down global growth to 3.1 percent for 2016 and 3.4 percent for 2017.
Moreover, the spillover of China’s new economic policies will be strongly felt in the ongoing joint construction of the China-proposed Belt and Road Initiative, which will see development of countries along its route.
STABILITY WITH CONTINUED SUPPLY-SIDE STRUCTURAL REFORM
In combination with the growth trend in the second half of 2016, the important messages Chinese policymakers convey at the key annual economic conference will highlight a clear reform course for the world’s second largest economy.
Stability is a prerequisite for reforms, commented Margit Molnar, head of the China Desk of the Economics Department of the Organization for Economic Cooperation and Development.
Having dealt with such flashpoints like the asset bubble and local government debt, China will help prevent systematic risks, creating conditions for continuing the supply-side structural reform, he told Xinhua.
The economic work conference has maintained supply-side structural reform as necessary for stable growth, with a continued focus on upgrading the country’s economic structure.
Reforms which focus on expanding effective supply in a dynamic supply-demand equilibrium, will promote stability, said Zhao Yao, professor with the business school of Rutgers University in the United States.
LONG-TERM MOVES TO COOL DOWN REAL ESTATE
Homes are for living in rather than speculation, the conference stressed, proposing to use financial, land, taxation, investment and other instruments to establish a fundamental and long-term system to curb real estate bubbles and market volatilities.
Guo Shengxiang, dean of the Australian think tank Academy of APEC Creative Finance, described the idea as “forward-looking”.
“It will be a good news, to stabilize the market, improve people’s well-being and facilitate the development of the real economy,” he said.
The Hong Kong and Shanghai Banking Corp. (HKSB) believes measures to cool down real estate will not thwart China’s economic recovery.
Without a complete tightening of monetary policy, the impact of government regulations could be neutralized by infrastructure investment with financial support, it said.
PRUDENT AND NEUTRAL MONETARY POLICY AGAINST RISKS
The conference defines China’s monetary policies for 2017 as “prudent and neutral”, promising better adjustments to ensure stable liquidity.
Monetary policymaking should adapt to changes in the use of money supply tools, and further efforts are needed for smoother policy transmission, it said.
China will keep the yuan basically stable, while improving the flexibility of exchange rates.
“The stance shows the government is trying to find a subtle balance between stabilizing growth and controlling asset bubbles,” noted Hong Hao, chief China strategist at BOCOM International.
Earlier, a Standard Chartered Bank report predicted financial and monetary policy instruments available to the Chinese government would suffice to support China’s growth in the coming years.
(THIS ARTICLE IS COURTESY OF THE BBC NEWS NETWORK AND THE SHANGHAI DAILY NEWS)
Shopping in Australia, while in China
24 October 2016
- From the section Business
In Sydney, a multi-million dollar export industry starts with a simple trip to the shops.
Laden with plastic bags that are almost too heavy to carry, we meet Rika Wenjing, a 24-year-old accountancy graduate from Wuhan, the capital of Hubei province.
She labours with tins of infant food, supplements and skin lotions from a discount chemist to sell to customers back home in China.
Rika has worked part-time for the past two years as a daigou, a freelance retail consultant.
She is glued to her phone and tablet, using the messaging app WeChat to build a network of 300 clients who aren’t afraid to pay premium prices for trustworthy Australian goods.
“In the beginning I just had my friends and my aunty to buy baby formula or unique brands from Australia, like Ugg boots. Then I wanted to build a platform to show more products to them,” she told the BBC. “I don’t want just to earn money, I want to provide products to my friends.”
In Australia, it’s estimated there are 40,000 daigou, which means “on behalf of” in Mandarin.
The online shopping agents are almost exclusively from mainland China, and are young migrants or international students looking for flexible ways to help cover their rent and university fees.
The epicentre of the trade is in Sydney, a city with a growing Chinese community and frequent direct flights to China, which makes doing business quicker and smoother.
Earlier this year, Beijing tightened regulations on cross-border online shopping, but there is still money to be made, especially in baby milk formula, known as “white gold”.
In 2008, at least half a dozen children died and as many as 300,000 fell ill in China after consuming milk products contaminated by melamine, a chemical used in plastics and adhesives. Since then, imported milk has become highly prized by sections of China’s affluent and health-conscious middle classes.
“Everyone cannot buy the good quality or the reliable formula in China, so they want to buy from Australia. Maybe it is more expensive, they don’t care [about] the price but they do care about the quality,” Rika explains.
At the height of a boom last year in demand in China for milk formula, a buying surge from daigou attracted criticism in sections of the Australian media for leaving domestic shoppers empty-handed.
Daigou came to prominence in Europe by shipping luxury goods such as Gucci handbags to China. In Australia, the trade revolves around everyday items including food, beauty products, wine and clothes.
“There are smaller daigou, so mum doing a home business and ship the product to China. There are also those which open up their own shop and try to do a bigger-scale business,” says Benjamin Sun, the co-founder of Think China, a digital marketing company in Sydney.
“Some of the daigou… establish their own logistics, own e-commerce website and try to formally distribute the products. It is all about trust, that is what daigou is doing – building trust between their clients. They are small but they are a lot of people. If you add them together, they are huge.”
Daigou typically charge premiums of about 50% above the retail price in Australia. But even allowing for transport fees, buyers in China invariably pay much less for the same product in a local shop – assuming it is available.
The industry with its home-spun roots does have its challenges. Customers must be convinced the goods they receive are genuine, and not fake, and that the supplier is reliable.
Consultants often live stream their visits to supermarkets and chemists to prove the authenticity of the goods they send. It is an industry founded on trust.
In the Sydney suburb of Yagoona, Bob Sun, originally from the city of Dalian but now studying accountancy at Macquarie University, is renting a warehouse with three Chinese friends for their expanding business.
They pack their products – again mostly milk powder, vitamins and skin creams – with Australian magazines to help prove their provenance.
“The income from daigou is reasonable compared to other working opportunities like working in a restaurant and that sort of thing. The profit is really enough to cover your rent. It is easy to do that,” the 24-year-old student told the BBC.
“The biggest reason for me to do daigou is to not work in some company or to work in a restaurant. It is flexible.”
These freelance exporters have created thousands of trading routes both small and big into China, a market that can be almost impenetrable for some Australian companies, and others from New Zealand. Increasingly firms are collaborating with specialist consultants to harness their contacts and expertise.
“We think daigou are good for both the local economy… and they are very good for our business,” says Peter Nathan, chief executive of A2 Milk, a New Zealand baby formula manufacturer that also operates in Australia.
“We clearly believe they are a positive force and it’s fair to say that it is something we are accessing.”
(THIS ARTICLE IS COURTESY OF REUTERS NEWS AGENCY)
Chinese President Xi Jinping on Saturday called for a “smooth transition” in Beijing’s relationship with Washington and praised outgoing President Barack Obama for strengthening ties between the two nations.
During a meeting in Peru, Obama repeated the U.S. urging that all sides in the dispute over the South China Sea reduce tensions and resolve their disputes peacefully.
The meeting is expected to be the last between the two leaders before President-elect Donald Trump enters the White House. Trump has been sharply critical of China.
“We meet at a hinge moment in the China-U.S. relationship,” Xi said at the start of the meeting, through an interpreter.
“I hope the two sides will work together to focus on cooperation, manage our differences and make sure there is a smooth transition in the relationship and that it will continue to grow going forward,” he said.
Trump, a Republican, has accused China of being a currency manipulator and promised to slap big tariffs on imported Chinese goods. He has also called climate change a “hoax” designed to help Beijing.
“The concept of global warming was created by and for the Chinese in order to make U.S. manufacturing non-competitive,” Trump wrote in a tweet in 2012.
Obama and Xi pushed for the international community to back an agreement forged in Paris to combat global warming. Obama called that an example of the benefits of the two countries working together.
“Now we face the work of making sure our economies transition to become more sustainable,” he said.
Trump’s election has raised questions about whether the United States would try to pull out of the accord, a key legacy accomplishment for Obama, a Democrat.
China also helped negotiate the Iran nuclear agreement, another big piece of Obama’s foreign policy that Trump has threatened to dismantle.
Neither Xi nor Obama mentioned Trump in their remarks in front of reporters.
“Mr. President, I would like to commend you for the active efforts you’ve made to grow this relationship,” Xi said to Obama.
Obama noted that the two leaders would discuss areas of disagreement, including “the creation of a more level playing field for our businesses to compete, innovation policies, excess capacity and human rights,” he said.
“I continue to believe that a constructive U.S.-China relationship benefits our two people’s and benefits the entire globe,” he said.
(Reporting by Jeff Mason; Editing by Mary Milliken and David Gregorio)
(This article is courtesy of the Shanghai Daily News)
Beijing welcomes Taiwan officials
ZHANG Zhijun, the Chinese mainland’s Taiwan affairs chief, met in Beijing yesterday with a delegation of county and city officials from Taiwan.
The delegation includes officials for New Taipei City and the seven counties of Hsinchu, Miaoli, Nantou, Hualien, Taitung, Kinmen and Lienchiang.
Zhang, head of the State Council Taiwan Affairs Office, welcomed the visiting officials and applauded their adherence to the 1992 Consensus and efforts to promote cross-Strait cooperation and exchange at the county and city levels.
Taiwan’s current leader, Tsai Ing-wen, and her administration had refused to recognize the 1992 Consensus since she and the Democratic Progressive Party took office in May, Zhang said.
The 1992 Consensus affirms that both sides of the Taiwan Strait belong to one China.
The refusal had shaken the political foundation for the peaceful development of cross-Strait relations and had dealt a heavy blow to the good momentum of peaceful cross-Strait ties that had been achieved through eight years of efforts, Zhang said, adding communication across the Strait had been affected and the interests of people on the two sides had been severely damaged.
Zhang stressed adherence to the 1992 Consensus under the new situation, vowed to firmly oppose and curb “Taiwan independence” and promote cross-Strait exchange in various fields to boost economic and social integration.
The officials from Taiwan voiced concerns about cross-Strait relations and pledged to continue to stick to the 1992 Consensus and maintain peaceful development of cross-Strait ties along with the mainland.
Mainland officials with the Ministry of Commerce, National Tourism Administration, General Administration of Quality Supervision Inspection and Quarantine, and the All China Federation of Supply and Marketing Cooperatives also attended the meeting.
(This article is courtesy of the Shanghai Daily News)
China’s express delivery sector sees strong growth
China’s express delivery sector has grown steadily in the first eight months despite a slowing economy, according to the State Post Bureau.
Revenue for Chinese express delivery businesses hit 234.36 billion yuan (about US$35.5 billion) in the first eight months of 2016, up 43 percent year on year, said the bureau in an online statement.
A total of 18.27 billion deliveries were made during the same period, up 55 percent year on year, according to the bureau.
Despite a slowing economy, express delivery services have grown steadily as online shopping gains popularity in China.
China aims to nearly quadruple revenues of its express delivery market by 2020 in a move to boost consumption and services, as the economy slows with softening trade and investment.
The express delivery industry will have a target annual revenue of 800 billion yuan by 2020, according to a policy document released by the State Council last October.
The amount is nearly four times the 2014 revenue, which reached 204 billion yuan.
(This article is courtesy of the Shanghai Daily News Paper)
Forex reserves fall to lowest since 2011
CHINA’S foreign exchange reserves fell to the lowest since 2011 in August as the central bank intervened to support the yuan as it weakened to near-six year lows.
While the US$15.89 billion drop was in line with market expectations and was described by analysts as modest, it was the biggest fall since May and could signal fresh capital outflows from the economy as it starts to show signs of steadying.
China’s reserves fell to US$3.185 trillion in August — the lowest since December 2011 — from US$3.20 trillion at the end of July, central bank data showed yesterday.
China’s reserves, the largest in the world, fell by a record US$513 billion last year after Beijing devalued the yuan, sparking a flood of capital outflows that alarmed global financial markets.
But declines have slowed sharply in recent months as authorities tightened capital controls and cracked down on forex trading which is suspected to be speculation.
Traders believe the central bank has stepped in via state-run banks since mid-July to slow the pace of depreciation in the yuan, which has weakened 2.6 percent against the US dollar so far this year.
Analysts expect pressure on the yuan and reserves to continue as expectations of another US Federal Reserve interest rate hike this year support the dollar.
“With a Fed rate hike likely before the end of the year, the authorities will have their hands full with containing any wild spikes in USDCNY triggered by capital outflows, and can expect FX reserves to remain on a downward path through to the end of the year,” said Chester Liaw, an economist at Forecast Pte Ltd in Singapore.
Canadian investors keen to engage in energy, mining sectors Featured
31 Aug 2016
Canadian business communities are interested to invest in energy, mining, aerospace, engineering and infrastructural development
Ethiopia and Canada discussed to further strengthen their bilateral relations in the areas of trade, investment, peace and security.
Foreign Minister Dr. Tedros Adhanom held talks with Office of the Ministry of International Development parliamentary Secretary Karina Gould here yesterday.
The Secretary told journalists following the talks that Canadian business communities are interested to invest in energy, mining, aerospace, engineering and infrastructural development.
The trade volume between the two countries is growing rapidly every year, she said. She said that during talks with Dr. Tedros they discussed ways of further bolstering economic cooperation.
Appreciating the role of Ethiopia in ensuring peace and security in the region, Karina Gould said that it is a great opportunity to invest in the country.
Ministry Spokesperson Tewolde Mulugeta also said the two countries have discussed to further strengthening their relations focusing on trade and investment.
According to him, the two countries have strong relations in various fields and Canada is active partner in various developmental activities including humanitarian support.
WRITTEN BY LEULSEGED WORKU
(This article is courtesy of the Fiji Sun News Paper)
While Chinese investment registrations continue to increase, concerns have been raised about the low percentage of implementation of these projects.
This comes as a number of multi-million-dollar Chinese projects have been announced by no further progress has been noted.
Minister for Industry, Trade and Tourism, Faiyaz Siddiq Koya, highlighted this yesterday during the Seminar and Exchange Meeting at The Warwick Fiji.
He was addressing members of a Chinese delegation, Ambassador of the People’s Republic of China, Zhang Ping and our senior Government officials and private sector representatives.
“It is important to note in 2015, the total value of Chinese implemented projects represented only 18 per cent of the total value of all the projects implemented in Fiji,” he said.
The numbers don’t look too good when you see that in 2015, 41 per cent of total investment projects registered in Fiji were Chinese projects.
Mr Koya further stated in the first six months of this year, figures reveal that 45 per cent of projects registered with Investment Fiji were from China.
“Most Chinese investments are in the services and wholesale retail sectors,” he said.
Trade and tourism
On the other hand, Mr Koya we have witnessed increase in imports and tourists from China.
“Imports from China have increased from $210 million in 2010 to $623 million in 2014,” he said.
“Fijian exports to China have increased from $5 million to $37 million in 2014, but remain comparatively low.
“Tourist numbers from China to Fiji has been increasing year-on-year. Over the past 7 years there has been a tenfold increase, that is, from 4,087 in 2009 to 40,174 visitors in 2015.
“In the first seven months of 2016, visitor arrivals from China has exceeded the 2015 numbers by 30 per cent.
“And we look at this number to increase further, especially with the large scale Chinese investors in the tourism sector in Fiji.”
Mr Koya did stress for the need to focus on Fijian exports to China and ensure that trade flows both way, from China to Fiji and vice versa.
“The Fiji-China relations over the years have strengthened, especially through trade and investments,” Mr Koya said.
“Today we encourage and look forward to strengthen our relationship with China connecting business and encouraging trade between the two countries.”
Edited by: RACHNA LAL