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Xinhua: Minimum Wage Increased in 11 Provinces and Cities

According to an article published on Xinhua, 11 provinces and cities announced a minimum wage increase starting in April. The provinces and cities are Guangdong, Hunan, Hainan, Tibet, Tianjin, Shenzhen, Shandong, Shanxi, Beijing, Shanghai, and Gansu. Among the cities, the monthly minimum wage (in yuan) in Beijing went from 1,560 (US$254) to 1,720 (US$280); 1,820 (US$296) to 2,020 (US$329) in Shanghai; 1,680 (US$273) to 1,850 (US$301) in Tianjin; and in Gansu Province it went from 1,350 (US$220) to 1,470 (US$239). The article said that Shenzhen has the highest monthly minimum wage at 2,030 (US$330) yuan while Beijing has the highest hourly minimum wage at 18.7 yuan (US$3.04). In addition the statistics that the National Trade Union released showed that the rate of increase decreased in the period from 2011 to 2014. The increases were 22 percent, 20 percent, 17 percent, and 14 percent respectively in those years. The rate of increase is expected to be around 10 percent in 2015.

Source: Xinhua, April 3, 2015
http://news.xinhuanet.com/2015-04/03/c_127653903.htm

Briefings | | |   Economy/Resources

Xinhua: The Belt and Road Initiatives

On March 28, China unveiled its vision for the Silk Road Economic Belt and the 21st-Century Maritime Silk Road Initiatives (the Belt and Road Initiatives). 

The National Development and Reform Commission along with the Ministry of Foreign Affairs and the Ministry of Commerce released the initiatives jointly. The information released shows that the Belt and Road initiatives route runs through Asia, Europe, and Africa, connecting the East Asia economic circle at one end with the developed European economic region at the other. 
In the past year or so, Chinese leaders visited over 20 countries to build a consensus on the impact of the Belt and Road Initiatives. China has since signed an MOU and other agreements with neighboring countries on cooperation to build the Belt and Road. A few joint projects have been established. 
Domestically, the authorities have adopted policies to raise the financial resources needed to fund the initiatives; they have also promoted banks in funding cross-border settlement and payment transactions. A number of forums, summits, and expos have been held to deepen the understanding of the significance of the Belt and Road Initiatives. 
Source: Xinhua, March 28, 2015 
http://news.xinhuanet.com/2015-03/28/c_1114793986_2.htm
Briefings | | |   Economy/Resources

People’s Daily: Volume of Railway Freight Declined as Did PMI

On March 26, People’s Daily reported that, according to the numbers that the National Development and Reform Commission (NDRC) released, the combined January and February railway freight volume saw a year-over-year decline of 9.1 percent. February is the 14th consecutive month that suffered a decline. Railway freight volume is one of the well-known indicators on which Chinese Premier Li Keqiang has focused. In February, another favorite indicator of his, total electricity consumption, also saw a 6.3 percent year-over-year decline. In addition, HSBC reported China’s February manufacturing sector PMI to be 49.2, far less than the expected number, a PMI of 50.5. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: People’s Daily, March 26, 2015
http://history.people.com.cn/peoplevision/n/2015/0326/c371452-26753376.html
Briefings | | |   Economy/Resources

Ministry of Finance: The Growth in Fiscal Revenue Slowed Down Sharply

According to a recent article in People’s Daily, China’s Ministry of Finance recently released statistics showing that, in the first two months of 2015, the growth in China’s fiscal revenue slowed down sharply, while expenditures increased. 

In the first two months of 2015, fiscal revenue grew 3.2 percent year on year, reaching 2.57 trillion yuan (approximately US$417.5 billion). Excluding the transfer of government funds, the growth rate was 1.7 percent. Revenue from taxation was 2.24 trillion yuan (US$360 billion), a 0.8 percent increase year on year. This is a historical low, said Bai Jingming, an official from the Ministry of Finance. 
Meanwhile, expenditures rose to 1.89 trillion yuan (US$300 billion), an increase of 10.5 percent year on year, with a 52 percent increase for transportation, an increase of 21.2 percent for housing, 15.6 percent for social security and employment, and 14.5 percent for education. The recent Budget Report of the Ministry of Finance that the third session of the twelve National People’s Congress approved set the target for fiscal revenue to grow at 7.3 percent in 2015. “Based on the current situation, it will be very difficult to achieve the annual revenue growth target," said Bai Jingming. 
Source: People’s Daily, March 17, 2015 
http://cpc.people.com.cn/n/2015/0317/c83083-26704446.html
Briefings | | |   Economy/Resources

Chinese Business Wisdom: The End of China’s Real Estate Developers

Chinese Business Wisdom published an article asserting that China’s real estate boom is ending. It started with the resignation of Mao Daqing, CEO of the Beijing Region of China Vanke Co., Ltd., who decided to jump ship and resign from Vanke on March 8. Vanke is the most successful privately owned real estate company in China.

The article quoted a financial analyst who stated that some real estate developers have taken their un-sold houses and sold them to their own employees. They encouraged their employees to buy as many houses as they could and also to apply for bank loans. "This might be the last money the developers will get. If the situation gets worse, these developers will run and leave the problems to their employees and the banks."

The analyst’s suggestion for Vanke’s strategy? "(They should) build as much as they can on the land they have already obtained, sell as much as they can of their overstocked houses, and close the company when they can’t sell anymore."

The government is still encouraging real estate purchases and keeps buying overstocked inventories from developers. However, "apart from the first-tier cities and cities with large inflows of population, the remaining large number of cities cannot stimulate the real estate market. The difficulty in raising money and being stuck with large inventories are still the real estate developers’ number one enemy."

Source: Chinese Business Wisdom, March 10, 2015
http://www.bwchinese.com/article/1068643.html

Briefings | | |   Economy/Resources

Xinhua: Over 90.1 percent of the Cities Failed Air Quality Inspection

According to an article in Xinhua, one year ago at the beginning of 2014, air pollution and the measures to improve air quality were included in close to 90 percent of the government reports at the provincial level. At that time, 15 provinces signed an agreement to fix their air and smog issues. However, according to the article, a year later, in the “2014 National Economic and Social Development Report“ that the Ministry of Statistics published, out of 161 cities that were inspected for air quality, only 9.9 percent passed; 90.1 percent failed; and only a small fraction of the cities submitted explanations. It stated that the reason for the poor results was due to ownership at the local level and a lack of attention to this issue.

Source: Xinhua, March 15, 2015
http://news.xinhuanet.com/politics/2015-03/15/c_1114644672.htm

Briefings | | |   Economy/Resources

2014 Consumer Electronics Industry Customer Service Blue Book Published

Xinhua reported that on, March 12, the China Electronics Chamber of Commerce, the China Consumer Journal, Xinhua, and Horizon Research Consultancy Group jointly published the 2014 Consumer Electronics Industry Customer Service Blue Book. The blue book collected consumer feedback on five major core electronic products, which include cell phones, computers, television sets, refrigerators, and air conditioners. The article said that this is the first report of its kind in China that focuses on consumers’ feedback on customer service. According to the results, the overall customer satisfaction score was only 68.1. The cell phone industry scored the lowest at 64.8.  The area receiving the most complaints was repair services. Major consumer concerns included the manufacturers not accepting responsibility, delays in providing service, or inability to fulfill commitments.

Source: Xinhua, March 12, 2015
http://forum.home.news.cn/detail/136043202/1.html

Briefings | | |   Economy/Resources

Overweight and Obesity in China

Southern Weekend reported that being overweight and obese has become a serious health issue for both adults and children in China. 

In 2010, using the body mass index standards, 32.1 percent of adults and 39.8 percent of the elderly were overweight. That represented an increase from 2005 of 3 and 4.2 percentage points respectively. Currently, there are about 300 million adults who are overweight and 46 million adults who suffer from obesity. 
As for young people, 12 percent of children are overweight. According to a joint survey issued by the Chinese Center for Disease Control and North Carolina University, 1.9 percent of children between 12 and 18 have diabetes. That figure is 4 times the number for U.S. youngsters. Another 27.7 million have pre-diabetes. 
Source: Southern Weekend, March 10, 2015 
http://www.infzm.com/content/108164
Briefings | | |   Economy/Resources