Tagged: China

Japan’s machine tool export orders to China in March

According to the March machine tool order data released by Japan work machinery industry association on April 20, orders for China increased 2.3 times over the same period last year, reaching 37.3 billion yen, a new high since November 2017. Due to the production increase of pure electric vehicles (EV) and the vigorous investment in infrastructure, the enthusiasm of equipment investment in manufacturing industry is high.

Japan's machine tool export orders to China in March

Japan’s total machine tool orders increased by 65.1% in March to 127.8 billion yen, a new high since March 2019. Driven by the growth of pure electric vehicles, high-speed communication standard “5g” and data center, the negotiation and purchase of production equipment is very strong. Because all countries in the world are investing in infrastructure, the hydraulic press used in construction machinery also performs well.

 

Judging from the situation of Japanese enterprises, the production facing the Chinese market has obviously recovered. In March, the overall operating rate of industrial robot giant Yaskawa electric reached 150% (100% of normal working hours without overtime). In China, the operating rate of servo motor manufacturing plants used for machine tools and semiconductor manufacturing equipment has reached 260%, “production workers are working on two shifts and overtime, and are still considering changing to three shifts”.

 

The order volume of Muye milling machine manufacturing Institute, which is engaged in processing center and other businesses, increased by 56% in March to 5.7 billion yen, which is the highest level since August 2019. The export increased by 96%, driving the overall growth. With the purchase of IT equipment such as personal computers as the center, China’s orders increased significantly. Zhipu machinery said that “since around February, China’s negotiation and purchase for the use of smart phones has been increasing.”.

 

In March, Japanese machine tool export orders to North America increased by 32%, orders to Europe increased by 95%, and orders to South Korea increased by 62%.

 

Japan’s domestic machine tool orders have increased year-on-year for the first time since November 2018. Domestic orders of Mitsubishi Heavy Industry increased by 40%. There are a lot of orders for automobile mold processing and semiconductor related large machining centers.

15 pure electric vehicles

Toyota (157.57, 0.26, 0.17%) said on Monday it plans to launch 15 BEVS worldwide by 2025, thereby expanding its EV portfolio to achieve its carbon neutral goal by 2050.

15 pure electric vehicles

The company launched a new pure electric vehicle Toyota BZ series at the Shanghai auto show on Monday, which will be sold to Chinese, American and European markets.

 

Toyota also said it plans to launch more than 20 new energy vehicles in China by 2025.

BMW plans to build pure electric vehicles in 2025

Jochen goller, head of BMW’s China business, said on Monday that the company plans to increase the share of pure electric vehicles in its Chinese market sales from about 4 per cent last year to 25 per cent by 2025.

BMW plans to build pure electric vehicles in 2025

Goller told reporters during the Shanghai auto show. He said BMW will sell 12 electric vehicles in China by 2023.

 

BMW has previously said it expects pure electric vehicles to account for half of its global sales by 2030.

IMF President: China’s economic recovery is strong

At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods.

IMF President: China's economic recovery is strong

Georgieva, President of the International Monetary Fund, said recently that China’s economy is “recovering strongly” and has brought positive spillover effects to the rest of the world. She believes that all countries should seize the opportunity to respond to risks of COVID-19 and climate change, increase green investment and multilateral cooperation, and promote a green and inclusive recovery of the global economy. China can play an important role in this process.

 

In an exclusive video interview with Xinhua News Agency on the 13th, Georgieva said that in the latest report released by the IMF, China’s economic growth forecast for this year has been raised to 8.4% from the previous 8.1%. At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods. At the same time, China plays an important role in revitalizing Global trade, supporting the economic recovery of developing countries and promoting the transition to a “new climate economy”.

 

She said that China’s commitment to achieve “carbon neutrality” by 2060 is an important part of the international community’s mobilization to deal with the disastrous impact of climate change. She also praised the people’s Bank of China for attaching importance to the quality of green investment, focusing on the financial stability risks related to climate, and providing good guidance for the establishment of green financial standards in a very systematic way. The IMF will hold a high-level seminar on green finance and climate policy with the people’s Bank of China from April 15 to 16 to share relevant policy experiences and practices.

 

She also pointed out that at present, China’s economic growth is still more driven by public investment, and expects China to improve and expand its social security network to enhance domestic consumption and continue to promote economic rebalancing.

 

Speaking of the message to be conveyed to the upcoming Boao Forum for Asia annual meeting, Georgieva said that there is a Chinese saying that “crisis is organic in crisis”. “We are facing economic opportunities that will lead us into a green, digital and inclusive future. It is our best way to cherish the memory of those who passed away in the COVID-19 by taking the crisis as an opportunity for positive reform, promoting greater integration of the world and improving people’s lives through cooperation. She said.

 

Georgi Ieva pointed out that COVID-19 once again shows that the global economy is so interdependent and highlights the value of multilateral cooperation. She called for comprehensive policy support for countries with lagging economic recovery to avoid “dangerous differentiation” in the global economy. At present, the top priority for policy makers is to speed up vaccination around the world, “one shot in the arm is the fastest way for global economic recovery” and bring great value to all countries, she said. The IMF predicts that the faster popularization of vaccines and the end of the new crown crisis can increase global GDP by nearly $9 trillion by 2025.

 

Georgieva stressed that the risks posed by climate change to macroeconomic and financial stability are increasing day by day. When the global economy is striving to get out of the most serious recession since the end of World War II, it is particularly important to seize the opportunity to expand green investment and promote economic transformation, and the efforts made to cope with climate change can bring economic growth and employment.

 

Georgieva said that climate change may bring potential physical risks through natural disasters, and may also bring transformation impact to some industries and enterprises, causing losses to financial institutions. The IMF is strengthening the assessment of climate related financial stability risks, providing policy recommendations and capacity-building support for member countries to deal with climate change, and considering the stress test of the financial system to resist climate risks.

First quarter earnings of China’s listed companies

Goldman Sachs Group (335.35,7.67,2.34%) estimated that the net profit growth of Chinese Listed Companies in the first quarter of this year will reach an “eye-catching” 55%. Thanks to the continuous recovery of China’s economy, cyclical companies will drive this growth.

First quarter earnings of China's listed companies

‘after soaring commodity prices and a rebound in foreign demand, some companies in cyclical industries are likely to double their net profits from the year-on-year downturn,’ Goldman’s strategist, led by ginger Lau, wrote in a report on Thursday. They also forecast that profits in the so-called new economy industries in China, including technology stocks, are expected to grow 48% year-on-year.

 

“The stock cycle has moved into a growth phase, and profitability is often the main driver of returns,” Goldman analysts wrote. This is probably one of the most important earnings seasons in recent years. ”

 

According to the report of Goldman Sachs, companies accounting for 64% of the total market value of Chinese listed companies will report their first quarter results in the next two weeks. Investors will focus on whether the company can achieve profits in line with the current valuation.

 

Goldman said value stocks should continue to outperform growth stocks, adding that profits in sectors such as energy, semiconductors, hardware and materials could surprise investors, while profits from brokers, real estate, insurance and consumer services companies could fall short of expectations.

China has paid the UN membership dues in full in 2021

On April 13, China paid its 2021 contributions to the United Nations in full and the International Criminal Tribunal reserve mechanism in full, according to the website of the permanent mission to the United Nations on April 13. Previously, China had paid the balance of assessed contributions to the United Nations for seven peacekeeping operations authorized by the Security Council in 2020 / 2021 (as of February 28). So far, China has paid in full all UN contributions and assessments at the present stage. As the largest developing country, a permanent member of the Security Council, and the second largest contributor to the United Nations and peacekeeping, China has always actively supported the work of the United Nations, firmly maintained the international system with the United Nations as the core, and practiced multilateralism with practical actions.

 

China has paid the UN membership dues in full in 2021
This year marks the 50th anniversary of China’s resumption of its legal seat in the United Nations. For 50 years, China has been the builder of world peace, a contributor to global development and a defender of international order, which has greatly promoted the development and progress of multilateralism. Facing the severe challenges brought by unilateral, protectionist and bullying practices in the past few years, China firmly supports multilateralism and supports the United Nations to play a central role. China has become the second largest contributor to the United Nations peacekeeping since 2016 and the second largest contributor to the general assembly in 2019. It has been fulfilling its financial obligations to the United Nations in time, in full and unconditionally in accordance with the Charter of the United Nations, reflecting the due role of the responsible power.

 

Under the current situation novel coronavirus pneumonia is affecting the global economy. The United Nations is deeply in the liquidity crisis and has a serious financial situation. It seriously affects the implementation of normal work and various empowerment. Finance is the foundation and important pillar of the governance of the United Nations, and a sound financial situation is the guarantee for the United Nations to fulfill its mandate and carry out its programme activities. Member States should fulfill their legal obligations, respond positively to the appeal of the Secretary General of the United Nations, pay their assessed contributions in time, and alleviate the increasingly severe liquidity situation of the United Nations.

 

China will continue to fulfill its responsibilities as a major country, show its responsibility for a big country, uphold the concept of building a community of shared human destiny, help and help countries in the same boat, continue to firmly support multilateralism and support the United Nations in playing a greater role. Meanwhile, the Secretariat of the United Nations should continue to strengthen budget performance management, improve internal control, ensure the implementation of the 2030 agenda for sustainable development, improve people’s livelihood, and restore economic resources, and make good use of every penny of taxpayers in Member States.

 

Previously, the United Nations website published a document on 16 October 2020, referring to the arrears of Member States. According to the data provided in the document, as at 30 September last year, the total arrears of member states of the United Nations amounted to $1497 million, of which $1.09 billion was owed by the United States, accounting for 73 per cent of the total outstanding contributions. In addition, the UN member states have not paid a total of $2557 million in peacekeeping related costs, of which the United States is in arrears of $1.388 billion.

The United States will not list China as a “currency manipulator”

U.S. Treasury Secretary John Yellen will not list China as a “currency manipulator” in his first semi annual foreign exchange report after taking office, according to an unnamed source quoted by U.S. News Agency on the 13th, which “enables the United States to avoid new conflicts with Beijing”. The report is expected to be released on April 15. According to the report, during the trump administration, the US Treasury Department was accused of politicizing the report. In August 2019, the Ministry of Finance suddenly announced that China was listed as a “currency manipulator” when the report was issued unconventionally, but it cancelled the label five months later to reach a trade agreement with China. U.S. experts said the U.S. Treasury needed to rebuild the report’s “credibility.”. Chinese Foreign Ministry spokesman Zhao Lijian said in response to relevant questions on the 13th that China has not used the exchange rate as a tool to deal with external disturbances such as trade disputes.

The United States will not list China as a "currency manipulator"

The report has not yet been finalized, and a Treasury spokesman declined to comment on its content, according to the company. The three conditions for the United States to identify itself as a “currency manipulator” include: its annual trade surplus with the United States exceeds US $20 billion, the scale of its foreign exchange intervention exceeds 2% of GDP, and its current account surplus accounts for more than 2% of GDP (originally 3%, changed to 2% in 2019), Reuters said on the 13th. In August 2019, at the time of the most tense Sino US trade situation, the US Treasury Department announced that China would be listed as an “exchange rate manipulator”, which attracted China’s firm opposition. In January 2020, two days before the signing of the first phase trade agreement between the two countries, then US Treasury Secretary mu nuqin lifted the identification of China as a “currency manipulator”.

 

Some analysts believe that Yellen’s decision can be understood as that the exchange rate issue is no longer the core issue of Sino US conflict, and the game between China and the United States is more rational, according to Bloomberg. For the United States at present, it is meaningless to continue to challenge China unilaterally on the exchange rate issue. Now, the United States hopes to make a breakthrough on individual issues rather than a comprehensive confrontation. Liu Jie, head of China’s macro strategy at Standard Chartered Bank, believes that Yellen’s choice does not mean any improvement in Sino US relations, nor does it mean that bilateral tariffs will be reduced, but only reflects changes in the strategy of the new US government. Biden’s government is seeking to hold China responsible for its “unfair trade practices and human rights violations,” while reviewing the trump era tariff measures on billions of dollars of Chinese goods, the report said. People familiar with the matter said that although the Ministry of finance report will not list China as a “currency manipulator”, Ministry of finance officials are worried that “China is covering up its intervention in the RMB exchange rate through the activities of state-owned banks.”.

 

Lu Xiang, a researcher at the American Institute of the Chinese Academy of Social Sciences, told the global times on the 13th that Yellen has a very professional and rich resume in the financial field, and once served as the chairman of the Federal Reserve. Her professional background has made her clearly understand the problems in the domestic economy of the United States, and that China does not meet the conditions of “exchange rate manipulator” at all, so it is useless to list China as “exchange rate manipulator” It’s about solving America’s problems. Yellen’s decision also reflects that, unlike Trump’s arbitrary and unrestrained use of various policies to suppress China, Biden’s government pays more attention to weighing the pros and cons in its economic and trade policy towards China. However, this does not mean that the United States will stop its crackdown on China in economy and trade. Both the U.S. Department of Commerce and the U.S. trade representatives still release their tough attitude towards China in economy and trade. They will choose to use the tools left over by the previous government and continue to suppress China.

 

In the foreign exchange report released by the US Treasury at the end of 2020, Vietnam and Switzerland were listed as “exchange rate manipulators”, and India, Thailand and Taiwan of China were included in the “watch list”, which also included China, Japan, South Korea, Germany, Italy, Singapore and Malaysia. “Since then, officials in these countries have largely ignored the United States and continued to take positive action, which shows that the report is no longer as effective as it used to be,” said Bloomberg

 

The former US government used the label of “exchange rate manipulator” to suppress other countries, which seriously affected its international reputation. Eswar Prasad, an economist at Cornell University who worked in the China branch of the International Monetary Fund, said that during the trump administration, there was a “temporary” interpretation of the “exchange rate manipulator” standard. In 2017, munuchin listed China on the so-called “watch list”. According to the quantitative criteria set by the United States, the countries included in the “watch list” should meet two of the three criteria of “exchange rate manipulator”, but China only meets one. Now, instead of changing country specific processes, the Treasury needs to “rebuild the credibility of reporting using a more sensible set of standards that are applied consistently across countries,” Prasad said. People familiar with the matter also said that Yellen’s team also discussed the possibility of abolishing the trump administration’s measures to lower the threshold for identifying “exchange rate manipulators” in 2019, which will reduce the number of countries examined by the US Treasury Department by nearly half.

 

Lu Xiang said that during the trump administration, taking the “US priority” as the starting point of the policy, it launched wars all over the world and launched trade wars of different degrees against almost all its allies. To some extent, Yellen’s approach is to repair the damage of trump period, in order to restore the international credibility of the United States. This also reflects that the United States has given up the strategy of fighting alone on the issue of China and has once again won over its allies to deal with China. However, it is not easy or optimistic for the United States to restore its credibility and gain global trust. The world is still observing the future performance of the United States.

Lenovo and Nokia in patent litigation

Nokia (4, -0.05, -1.23%) and China Lenovo (27.84, -0.06, -0.22%) said on Wednesday that the two companies had reached a settlement over the patent dispute over the years and resolved all pending legal proceedings.

Lenovo and Nokia in patent litigation

Nokia said Lenovo would pay Nokia a net difference, despite the confidentiality of the exchange authorization agreement. A Nokia spokesman declined to disclose financial details.

 

Nokia filed a legal lawsuit against Lenovo in 2019, accusing it of infringing 20 video compression technology patents, and in addition to six in Germany, in the United States, Brazil and India.

 

Lenovo also filed a lawsuit against Nokia in California courts.

China’s core interests

Xinhua News Agency anchorage, March 17 (reporter Gao Pan Liu pinran) Chinese ambassador to the United States cuitiankai said on March 17 that China hopes the upcoming high-level strategic dialogue between China and the United States will open the process of rational dialogue and communication between the two countries, but China will not have any proper cooperation and concession in its core interests.

 

Cui Tiankai said in a joint interview with Chinese media such as Xinhua news agency in Anchorage, Alaska, the morning that the minimum and basic premise for dialogue and communication between any country is that both sides should have the spirit of equality and mutual respect. He stressed that China has no room for compromise and concession in terms of core interests involving China’s sovereignty, territorial integrity and national unity, which is also the attitude that China will clearly show in this meeting.

 

Cui said China does not expect a dialogue to solve all the problems between China and the United States, so there is no high expectation or fantasy about the dialogue. He hoped that both sides could open a process of honest, constructive, rational dialogue and communication through this dialogue. If this can be achieved, the dialogue will be successful. “I hope both sides come with sincerity and leave with better mutual understanding.”

 

In response to the question that the United States recently drew allies to face China with “dominant position” in this strategic dialogue, Cui said that in fact, this practice is not necessary. As some people will sing to themselves on their own night road, it is not very useful. What questions should be discussed with China and can be shared face to face.

 

Cui pointed out that most countries in the world, including some of the allies of the United States, actually have several big question marks inside. Can the United States really play a responsible stakeholder role in international affairs? Is the United States really prepared to return to multilateral cooperation and make its due contribution to multilateral cooperation? Is the United States really prepared to show due respect for the interests of other countries and listen to the voices of other countries? These problems exist in the hearts of most countries in the world, including the allies of the United States, but some countries do not speak publicly. I hope the United States can understand the concerns in our hearts.

 

At the invitation of the US side, Yang Jiechi, member of the Political Bureau of the CPC Central Committee and director of the office of the Central Committee on foreign affairs, and Wang Yi, State Councilor and foreign minister, will hold a high-level strategic dialogue between China and the United States in Anchorage from March 18 to 19.

Over trillions of Red envelopes quenching the thirst of the real economy

At the beginning of 2020, in order to fight the epidemic in full force, the central bank decisively set up a special reloan of 300 billion yuan based on the principle of prudent monetary policy and more flexibility and moderation, and provided preferential interest rate credit to key enterprises in the production, transportation and sales of key medical and living materials stand by. After the financial discount, the actual financing cost of the enterprise fell

RMB

In a fashionable restaurant in Mianyang, Sichuan, diners celebrated their long-lost reunion with their drinks. Li Yunsong, the person in charge of the restaurant, roughly calculated that November’s turnover increased by nearly 10% over the same period in 2019. In Li Yunsong’s view, the restaurant is rejuvenated after the epidemic, thanks to the “reassurance” of the bank.

Under the impact of the epidemic, in order to help small and medium-sized enterprises like Li Yunsong regain their strength, the central bank has successively increased the special re-lending and rediscount quota of 500 billion yuan to support the orderly resumption of work and production of enterprises, and increase the re-lending and rediscount quota of 1 trillion yuan to support the economy Resume development and inject financial water into the real economy.

In the second quarter of 2020, in order to enhance the directness and accuracy of funds, the central bank created the “Inclusive Small and Micro Enterprise Loan Extension Support Tool” and the “Inclusive Small and Micro Enterprise Credit Loan Support Program” two monetary policies that directly reach the real economy. Tools to effectively alleviate the pressure on repayment of principal and interest for small and micro enterprises and increase the proportion of credit loans. Liu Wei, President of Renmin University of China and member of the Monetary Policy Committee of the Central Bank, said: “The monetary policy is flexible and appropriate, which not only quenches the thirst of the real economy, but also avoids flooding.”

As of the end of November, the balance of broad money (M2) was 217.2 trillion yuan, a year-on-year increase of 10.7%, and the growth rate was 2.5 percentage points higher than the same period in 2019. The monetary policy has not only achieved the effect of releasing water to raise fish, but not allowing the water in the pond to overflow.

Let the real economy live!
They did these extraordinary actions…

From the perspective of capital prices, the dividends of the LPR reform continued to be released, and the financing costs of enterprises were significantly reduced. In August 2020, the Governor of the Central Bank, Yi Gang, specifically mentioned in an exclusive interview with a reporter from the Central Station that the loan interest rates of small and micro enterprises and private enterprises have reached a record low.

Supported by the ultra-conventional monetary policy, a series of data such as China’s GDP growth rate and the profit growth rate of industrial enterprises above designated size have turned positive. The rapid recovery of the real economy is behind the burden of financial institutions. In 2020, the state proposed that the financial system should give 1.5 trillion yuan in profits to the real economy, which caused a rare negative growth in the net profit of commercial banks. According to Qu Jian, vice president of the China (Shenzhen) Comprehensive Development Research Institute, such a huge profit concession is to keep the real economy alive. Qu Jian said: “If the real economy collapses and the supply chain breaks, banks are the biggest victims. Therefore, banks should actively promote profit transfers and let the real economy survive. This is a virtuous circle.”

Looking forward to 2021, will the unconventional monetary policy continue or gradually fade out, and will the financial system’s profit-sharing plan continue?

Liuyuanchun

Liu Yuanchun, vice president of Renmin University of China, interpreted: “The positioning of monetary policy in 2021 is much more complicated than that in 2020. Unconventional policies must be gradually withdrawn. However, we have to adopt some local conditions according to different industries and departments. Financial concession behavior still needs to be further implemented, either through fee reduction and concession, or through interest rate cuts.”

Let the real economy live! At the beginning of 2020, the central bank set up a special reloan of 300 billion yuan to provide preferential interest rate credit support; in the second quarter, it created the “Inclusive Small and Micro Enterprise Loan Extension Support Tool” and the “Inclusive Small and Micro Enterprise Credit Loan Support Plan”….. . This year, financial and monetary policies have become more flexible and appropriate, with huge gains! The year-end special article “China’s Economy Stands Steady 2020”, an inventory of China’s economic “exceptional” 2020.