Category News of China

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China expects favorable trade environment in 2018

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

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

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

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

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

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

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

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

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

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

Sodexo Group strengthens integrated support services for mainland corporates

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

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

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

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

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

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

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

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

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

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

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

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

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

Employment demand sees negative growth in first tier cities

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

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

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

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

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

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

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

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

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

Shanghai to host first China International Import Expo

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

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

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

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

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

Xi’an to build new energy auto base

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

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

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

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

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

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

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

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.

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.