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Global Times: Products Sold Online Suffered Low Genuine Rate

Global Times recently reported that the State Administration for Industry and Commerce (SAIC) released its official report on online commerce monitoring and inspections, especially for the rate of genuine products, as made by the original vendor, offered online. According to the report, the industrial category with the lowest rate for being genuine was agricultural supplies such as fertilizers. which had the rate of 20 percent for being the genune product. The cellphone industry was the second lowest, at 28.57 percent – examples are Xiaomi and Samsung related cellphones. In terms of the online commerce platforms, the Taobao network had the lowest genuine product rate, which was 37.25 percent. Taobao is the flagship platform of the Alibaba Group which recently had the largest U.S. stock IPO (Initial Public Offering) in the history of the States. According to SAIC, online shopping service providers typically have four problems: loose seller background checks, a lack of regular legal compliance checks on products that sellers offer, chaotic sales management, and flawed credit checking systems. 
Source: Global Times, January 24, 2015
http://tech.huanqiu.com/internet/2015-01/5492409.html
Briefings | | |   Economy/Resources

Xinhua: National Food Security and Permanent Farmland

On January 23, 2015, Xinhua reported that one of the priorities of the State Council for 2015 is to designate permanent farmland. 

As of now, the Ministry of Agriculture and the Ministry of Land Resources have already begun full implementation. The effort will start with big cities and spread to small towns. The effort is expected to be completed in 2016 and farmland will be returned to farmers. 
According to the 2015 National Conference on Land Resources, which just adjourned, the priority is to designate farmland around cities as permanent farmland so that it will be impossible to change the size of the designated farmland. Large-scale urbanization means more and more rural land has become "non-agricultural." To ensure national food security for China’s 1.3 billion people, China has designated 1.8 billion mu (approximately .3 billion acres) as permanent farmland. From 1996 to 2009, China lost 205 million mu (approximately 33.8 million acres) of high quality farmland to urbanization. 
Source: Xinhua, January 23, 2015. 
http://news.xinhuanet.com/politics/2015-01/23/c_1114106019.htm
Briefings | | |   Economy/Resources

Qiushi: China Must Safeguard the State-Owned Economic Dominance

Qiushi published an article on January 23 that emphasized the importance of the dominance of the State-owned economy. 

The article stated that, in China’s socialist economy, the State-owned economy takes the leading role. Without the State economy, it would be impossible to adhere to socialism with Chinese characteristics. State ownership and all of the people achieving prosperity are inseparable. The fundamental difference between the socialist market economy and the capitalist market economy is that China’s economic system is dominated by State ownership. To adhere to socialism is to maintain the economic system which is dominated by State ownership and supplemented by other types of ownership. 
To support its position, the article cited language from a politburo meeting on August 19, 2014, stating that State-owned enterprises dominate major industries and key areas of national security and are an important pillar of the national economy. 
Source: Qiushi, January 23, 2014 
http://www.qstheory.cn/dukan/hqwg/2015-01/23/c_1114109520.htm
Briefings | | |   Economy/Resources

Study Times: Industrial Overcapacity and Countermeasures

On January 19, 2015, Study Times published an article setting forth measures to combat industrial overcapacity. 

In the second half of 2013, capacity utilization in China was at 78 percent, the lowest since the fourth quarter of 2009. The third quarter of 2014 saw the capacity utilization at 78.7 percent, a reduction of 0.9 percent when compared to same period in 2013.  The inventory of finished industrial goods grew by 12.6 percent in the first half of 2014, an increase of 5.4 percentage points. In the second half of 2014, capacity grew faster than demand, adding pressure to the inventory. 

The article proposed a three-prong approach: Government intervention, industrial policies to increase capability instead of providing subsidies, and optimization of the system environment for the market economy. 
Source: Study Times, January 19, 2015 
http://www.studytimes.cn/shtml/xxsb/20150119/9125.shtml

Briefings | | |   Economy/Resources

China News: Investments from Key Foreign Investors Dropped Significantly

China News recently reported that the Chinese Ministry of Commerce just released the official 2014 report on foreign investments. A very important pattern showed that major traditional foreign investors, namely Japan, the United States, the European Union and ASEAN (the Association of Southeast Asian Nations, which has 10 member countries), demonstrated a significant decline in their investments in China. In terms of year-over-year decline rates, Japan’s was 38.8 percent, the U.S. was 20.6 percent, the EU was 5.3 percent, and ASEAN was 23.8 percent. Also in the same report, the manufacturing industry sector saw a 12.3 percent foreign investment decline. In the meantime, investments from South Korea and Britain had an increase. The Middle Region of China had the highest increase in absorbing investments (7.5 percent).
Source: China News, January 15, 2015
http://finance.chinanews.com/cj/2015/01-15/6973665.shtml
Briefings | | |   Economy/Resources

BBC Chinese: Foreign Tourists to China Are on the Decline

BBC Chinese recently reported that, according to the 2014 China Tourism Global Public Opinion Research, fewer and fewer foreign tourists are visiting China. The Research report was released at the Annual China Tourism Industry Development Conference held on January 13. China Tourism News and the Chinese Academy of Social Sciences jointly conducted the research. The study surveyed 23,000 people in 23 countries that covered 90 percent of the Chinese tourist’ market. The research identified a declining national image as the number one reason to have impacted tourist’s decision making. Based on the survey, the Chinese national image was significantly damaged by heavy pollution, the wide gap between rich and poor, corruption, and poor public safety. The research showed a sharp decline in the number of tourists from nearby countries such as Japan, Thailand, Indonesia, and Malaysia – they all saw a decline of seven percent year-over-year. 
Source: BBC Chinese, January 13, 2015
http://www.bbc.co.uk/zhongwen/simp/china/2015/01/150113_china_inbound_tourists
Briefings | | |   Economy/Resources

Xi Jinping: The Nuclear Industry Is a Cornerstone of China’s National Security

When Xi Jinping spoke at the commemoration of the 60th anniversary of China’s nuclear industry, he told his audience, “The nuclear industry is a strategic high tech industry and an important cornerstone of [China’s] national security.” He further stated that China must adhere to safe and innovative development and to the use of nuclear energy for peace; it must enhance the core competitiveness of the nuclear industry and write a new chapter of glory for the nuclear industry. 

Premier Li Keqiang expressed that China should carry forward the traditional, focus on the frontier, enhance the competitive advantages of the nuclear industry, promote nuclear power equipment to "go out," ensure nuclear safety, and continue to build China into a power with a strong nuclear industry. 
Source: Xinhua, January 15, 2015 
http://news.xinhuanet.com/politics/2015-01/15/c_1114011173.htm
Briefings | | |   Economy/Resources

China Sets New Trade Surplus Record in 2014

China’s General Administration of Customs reported China’s trade data for 2014. The total import and export volume was 26.43 trillion yuan (US$4.26 trillion), a 2.3 percent increase over the previous year. The trade surplus was 2.35 trillion yuan (US$379 billion), an all-time high.

Exports were 14.39 trillion yuan (US$2.32 trillion), an increase of 6.1 percent over the previous year and also an all-time high. However, the increase rate of 6.1 percent was the lowest in the past five years.

China had a 5.4 percent increase in its trade with the U.S., to 3.41 trillion yuan (US$550 billion) and an 8.9 percent increase in trade with the European Union, to 3.78 trillion yuan (US$610 billion).

Source: Caixin Online, January 13, 2015
http://datanews.caixin.com/2015-01-13/100773846.html

Briefings | | |   Economy/Resources