Economy/Resources - 42. page

Statistics from China’s Ministry of Finance show that from January through February of this year, the public budget revenue of local governments was RMB 2.38 trillion, an annual growth rate of only 2 percent; national tax revenue decreased compared to the same period last year. Revenue from the sale of state-owned land use rights was 562.7 billion yuan, down 29 percent from the same period last year.

A professor at Shanghai University of Finance and Economics said that local governments have been in financial trouble for a long time and that the three-year epidemic has deepened the crisis. The economic slowdown has reduced local government revenues and property market adjustments have caused a sharp decline in local government finances. Some local governments are in financial distress.

This year’s central government work report mentioned that, “Some grassroots governments have large deficits.” The budget report emphasized the requirements of living a tight life and keeping a firm grip on budget management, asset allocation, and government procurement.

Source: Central News Agency (Taiwan), March 21, 2023
https://www.cna.com.tw/news/acn/202303210283.aspx

A posting about a Chinese peasant’s income has been spreading widely over the Internet. The author said that her mother-in-law, a migrant worker (a peasant who came to the city to work) in Chengdu City, Chongqing Province, where she has been since 2005, receives a pension of107 yuan (US$16) each month. However, only one single grocery shopping trip (she avoided the expensive items) had cost her 110 yuan. She was not the worst though. The author’s mother, a peasant in Henan Province, received only 240 yuan (US$35) pension – in the whole year.

With such a small amount of money, medical treatment is nothing but a remote concept. After a villager was diagnosed with cancer at a county’s hospital, he ended his life by drinking pesticides. He didn’t bother with a re-check at a provincial level hospital (which has better medical resources and whose diagnosis could be more reliable), because the travel expense (to the city) was too high.

In another report, the Yicai Media Group reported that the average pension for peasants in China is 188 yuan ($27) per month, which is only 5.26 percent of the pension for urban employee retirees (3,577 yuan per month). The communist regime in China has long treated peasants as second class citizens and provided them with inferior services as compared with the city dwellers.

Though China defined the male retirement age as 60 and female as 50 or 55 depending on their work type, 510 million, or one-third of the young elderly (people of Age 60-69) are still working. Based on the statistics of the young elderly, they accounted for 6.8 percent of the worker population in China in the “China’s Census – 2020” report. Among them, 62.44 percent are working in the agricultural fields.

Source:
1. Secret China, March 17, 2023
https://www.secretchina.com/news/gb/2023/03/17/1031202.html
2. Sina, March 17, 2023
https://finance.sina.cn/chanjing/gdxw/2023-03-17/detail-imymayim4479732.d.html?oid=3819239134138970&vt=4&cid=79649&node_id=79649

On March 5, China’s Ministry of Finance (MOF) released the budget report for 2022 and the budget proposal for 2023, emphasizing that next year’s fiscal reform includes the strict implementation of the policy of “living a frugal life.”

The state-run Economic Daily followed up with an article stating that, in the face of various risk challenges and spending needs for people’s livelihood, the “money bag” is not loose and “fiscal revenue and expenditure will remain in a tight balance for a long time.”

The article said that Party and government organs must “live a frugal life” as a regular disciplinary requirement, strictly controlling non-essential and flexible expenditures, while cutting administrative expenses.

It called for “no spending without a budget” and advised against arbitrary extra spending. It also demanded that financial supervision be strengthened and that violations be seriously investigated and punished so that financial discipline becomes an untouchable “high voltage line.”

Source: Central News Agency (Taiwan), March 12, 2023
https://www.cna.com.tw/news/acn/202303120094.aspx

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that, according to the official statistics released by the Chinese General Administration of Customs, in the first two months of this year, China’s import and export total was US$895.72 billion, a decrease of 8.3 percent, year-over-year. Exports were US$506.3 billion, down 6.8 percent; and imports were US$389.42 billion, down 10.2 percent. In the first two months, ASEAN (Association of Southeast Asian Nations) was China’s largest trading partner. The total trade value between China and ASEAN increased by of 9.6 percent year-over-year, accounting for 15.4 percent of China’s total foreign trade. The European Union is China’s second largest trading partner. The total trade value between China and the EU declined by 2.6 percent year-over-year, accounting for 13.8 percent of China’s total foreign trade. The United States is China’s third largest trading partner. The total trade value between China and the United States saw a decrease of 10.6 percent year-over-year, accounting for 11.4 percent of China’s total foreign trade. Japan is China’s fourth largest trading partner. The trade with Japan suffered a decrease of 5.7 percent, accounting for 5.6 percent of China’s foreign trade. During this time, exports of mechanical and electrical products increased by 0.4 percent, which accounts for 58 percent of China’s total exports. However, Labor Intensive products decreased by 7.4 percent. It is worth noting that the import volume of crude oil and natural gas decreased with an increase in price, and the import volume and price of soybeans both increased. China’s integrated circuits imports decreased by 26.5 percent.

Source: Sina, March 7, 2023
https://finance.sina.com.cn/china/2023-03-07/doc-imyiznuw0231357.shtml

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that China’s foreign trade orders for the spring of 2023 dropped by 40 percent overall, of this total, traditional products dropped by more than 50 percent. Business owners are still going abroad to attract more orders, but the results are getting more and more disappointing. The Americans are gradually decoupling from China economically. For many years in the past, China has been the largest supplier of the United States, maintaining a long-term surplus. In the European market, due to the war between Russia and Ukraine, Europeans are also living a tight life. Also, in most respects, Europe is still following the United States’ lead on China policy. Under the collective influence of the EU and the U.S., Singapore has replaced Hong Kong as the Asian financial center. The countries under the Belt and Road Initiative mainly focus on investment; currently they have no ability to replace the European and the U.S. markets. After the Chinese New Year, many factories stopped recruiting workers, and those who are still recruiting, raised the threshold, chanting the slogan, “No more than 35 years old.” In important ports, such as Shanghai, Tianjin, Ningbo, etc., a large number of empty containers are piled up like mountains. Since the second half of 2022, the Shanghai’s export container freight index has plummeted by more than 80 percent. China relies on foreign trade to maintain the employment of nearly 200 million people.

Source: NetEase, March 1, 2023
https://www.163.com/dy/article/HUO52V7G05561796.html