Skip to content

Economy/Resources - 189. page

Radio Free Asia: China’s Working-age Population Drops for the First Time in Decades

China’s National Bureau of Statistics recently released figures showing that, in 2012, the number of Chinese who are of working age, that is, between 15 and 59, has declined significantly since 1978. The decrease in 2011 was 3.45 million.

Yao Shujie, a professor at the University of Nottingham, in the UK, believes that 30 years of family planning in China first showed up in 2006 as a decrease in the number of primary school students. That the working age population has now contracted for the first time foretells the looming end of an era of abundant cheap labor.

Another report by the China Development Research Foundation predicted that, between 2010 and 2020, China’s working-age population will decrease by 29 million.

Source: Radio Free Asia, January 30, 2013
http://www.rfa.org/mandarin/yataibaodao/jingmao/gr-01302013160016.html

Briefings | | |   Economy/Resources

CRN: Chinese Economy Faces Six Major Variables

China Review News (CRN) recently published an analysis that discussed the new challenges the Chinese economy will face in 2013. The author expressed the belief that the economy is having a weak rebound, which will be affected by six primary variables: (1) How strong will the stimulation policies to be applied be and how long will they be sustained? (2) How tight will the government’s control of the housing market be? (3) How will the “shadow banks” (non-government sponsored private loan providers) be monitored and regulated? (4) How high will the exit strategy pressure of the stimulation policies be in the second half of the year? (5) What impact will the completion of the U.S. QE “Quantitative Easing” policies have on China? (6) What impact will Japanese Prime Minister Shinzo Abe’s new policies (inflation, deficit, and depreciation) have? The article concluded that the Chinese recovery will not be a smooth one.
Source: China Review News, January 24, 2013
http://www.zhgpl.com/doc/1024/1/4/6/102414661.html?coluid=53&kindid=0&docid=102414661&mdate=0124072005
Briefings | | |   Economy/Resources

The Growth of China’s Tax Revenues Has Dropped to a Three-Year Low

China’s Ministry of Finance today released a report analysing the structural growth of tax revenue in 2012. The report revealed that the total national tax revenue in 2012 was 10.060088 trillion yuan, a year-on-year growth of 12.1 percent. The 2012 tax revenue growth was the lowest rate for nearly three years. Growth was 10.5 and 10.9 percentage points lower than in 2011 and 2010, respectively. 

An analysis by the Ministry of Finance suggested that the significant drop in 2012 tax revenue growth was due to a combination of factors including a slowdown in economic growth, the deceleration of enterprise profits, weak import growth, and the implementation of structural tax cuts. 
Source: People’s Daily, January 24, 2013 
http://theory.people.com.cn/n/2013/0124/c49154-20311508.html
Briefings | | |   Economy/Resources

International Iron Ore Price Surge Hurts China’s Steel Industry

On January 19, 2012, China Review News published an article titled “Another Heavy Blow Hits China’s Steel Enterprises.” The international iron ore producers have been raising iron ore prices rapidly since 2009. According to the article, as the New Year started, iron ore producers set off a new wave of price increases, which cannot be explained by the principle of supply and demand or by macroeconomic conditions.

 

The article concluded, “China has been the number one steel producer in the world. We should not have lost our authority in the market. The problem is that our steel enterprises should not only concentrate on making money from downstream companies, the other Chinese companies, through increasing steel prices. We must think more about how to reduce the profits that the upstream enterprises, the foreign iron ore producers, are making.”

 

Source: China Review News, January 19, 2012

http://www.zhgpl.com/crn-webapp/doc/docDetailCreate.jsp?coluid=53&kindid=0&docid=102408133&mdate=0119075256


Briefings | | |   Economy/Resources

Xinhua: Ocean Shipping Industry Suffered 80 Percent Loss

Xinhua recently reported that, according to the China Ship-owners’ Association, the Chinese ocean shipping industry suffered an 80% loss in year 2012. In year 2011, about 70 percent of the ship-owners suffered a loss. It is expected that the situation will continue in 2013. China Ocean Shipping (Group) Company (COSCO) reported an RMB 6.4 billion loss as of the 3rd Quarter of 2012. The company blamed the poor performance on the decline of the entire global economy. China’s tax rules for domestic shipping companies are a major factor in the financial loss as well. According to the report, the current ocean shipping market is at a 10-year low. The Chinese government has made a promise to the industry that it will announce positive policies in the first half of this year at the earliest. 
Source: Xinhua, January 21, 2013
http://news.xinhuanet.com/fortune/2013-01/21/c_124255460.htm
Briefings | | |   Economy/Resources

China to Continue Its One-Child Policy

On January 14, 2013, Wang Xia, Director of China’s National Population and Family Planning Committee, said at an NPFP Work Conference that China will continue its one-child policy. He stated, “We will adhere unwaveringly to the Planned Parenthood Policy, China’s fundamental national policy, and maintain a low birth-rate.”

Source: China News, January 15, 2013
http://www.chinanews.com/gn/2013/01-15/4487037.shtml

Briefings | | |   Economy/Resources

CRN: China’s Central Bank Printed More Currency than the U.S.

China Review News (CRN) recently reported that, based on information officially released by China’s central bank, China’s currency supply (M2, a broad indicator to quantify the amount of money in circulation) reached RMB 97.42 trillion yuan (around US$15.53 trillion) by the end of 2012. This number represents an annual increase of 13.8 percent and is two times the Chinese GDP. Based on the current exchange rate, China’s GDP is one third of the U.S. scale, but the Chinese currency’s circulation level has already surpassed the U.S. Experts warned that the extra printed money may introduce potential systemic risks. Last year’s data for China shows that the government was loosening up the currency policies in order to “stabilize growth.” It is expected that China will maintain the current policies for the first half of 2013 and may tighten up in the second half, which typically faces higher inflation pressure.
Source: China Review News, January 11, 2013
http://www.zhgpl.com/doc/1023/9/7/7/102397732.html?coluid=10&kindid=253&docid=102397732&mdate=0111093828
Briefings | | |   Economy/Resources

Air Quality Deteriorates in Large Areas in China; Public Advised to Stay Inside

Recently misty weather has covered large areas of China with a serious deterioration in air quality. The air quality in multiple metropolitan areas has been coded as “serious pollution.”
The Beijing Environmental Monitoring Center released data showing that, since Thursday night (January 10), the pm2.5 concentration has been sustained at above 300 micrograms and reached level six, which is “serious pollution.” In the most polluted area the pm2.5 index reached 456.
In nine out of 11 cities in Hebei Province, the measure of air quality has been labeled "serious pollution.” In Shijiazhuang, Handan, Xingtai, and Hengshui, the quality index even exceeded 500. Air in Wuhan City in central China was also "heavily polluted" for several days.
On Saturday January 12, China’s Central Meteorological Station issued a blue fog warning. Nine provinces, including Hebei, Tianjin, Shandong, Henan, Jiangsu, Anhui, Zhejiang, Hubei and Sichuan Basin, had heavy fog with visibility of less than 1000 meters. Environmental experts warned that heavy fog prevents the dispersion of air pollutants. Local governments have issued air quality warnings to the public and advised people to stay indoors. Schools have suspended outdoor physical activities.
Source: BBC Chinese, January 12, 2013
http://www.bbc.co.uk/zhongwen/simp/chinese_news/2013/01/130112_china_air.shtml
Briefings | | |   Economy/Resources