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RFA: China Has Become the Largest Fake Product Source for Canada’s Online Market

Radio Free Asia (RFA) recently reported that statistics showed China is now the largest source of counterfeit products for Canada’s online market. The International Anti-Counterfeit Coalition called for stopping the fake products at their origin. With the increasing popularity of online shopping, the counterfeits are being delivered via small express mail packages rather than traditional wholesale shipments, which significantly worsens the situation for Canadian law enforcement. According to lawyers who specialize in anti-counterfeiting cases, around 80 percent of the counterfeits are from China, although more and more manufacturers are moving to places like Vietnam, Malaysia, and the Philippines. The International Anti-Counterfeit Coalition is working with the supply-chain level Chinese platform vendors such as Alibaba and Taobao to stop counterfeit transactions within 24 hours of receiving complaints.

Source: Radio Free Asia, December 7, 2016
http://www.rfa.org/mandarin/yataibaodao/jingmao/zw-12072016111140.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Cai Fang: China’s Reasonable Economic Growth Rate Should Be between 6.2 and 6.7 Percent

On November 22, 2016, Cai Fang, Vice President of the Chinese Academy of Social Sciences, spoke at a forum on “The Ever-evolving Global Political and Economic Pattern: Integration or Fragmentation?” Cai informed those in attendance that China’s reasonable growth rate is in the range 6.2 to 6.7 percent. He postulated that, if the growth rate is above this range, it is coming from stimulus and not just from the potential growth rate and the effect of reform.

At the forum, Cai Fang stated that, according to his calculations, China’s potential growth will only be 6.2 percent during the “Thirteenth Five-Year-Plan” period [2016-2020], assuming there are no new reforms. This can be regarded as the lower limit of China’s economic growth.

If the possible effect of reform is modeled on this calculation, the growth rate may reach 6.7 percent, which should be an upper limit. In other words, China’s economic growth has a reasonable range of 6.2 to 6.7 percent.

Source: Caixin, November 23, 2016
http://finance.caixin.com/2016-11-23/101013062.html

Briefings | | |   Economy/Resources

Wei Jianing: China’s Economic Statistics Have Significant Holes

Wei Jianing, the well-known economist and the Macroeconomic Inspector for the State Council Development Research Center, recently delivered an important speech at the Chinese Finance 40 Forum. Wei mentioned two key challenges that he observed when analyzing the economy. The first was the difficulty in obtaining accurate and correct information. A large number of local statistics have resulted from “discussions” among local Party and government leaders and the local Bureau of Statistics. Their reports to the central government then “matched” the discussed numbers thereby looking official. Wei called for reform to establish an independent system of statistics. The second challenge mentioned in the speech was the transparency of decision making – at least for the currency policies. Currently it is very difficult to find out who is making policy decisions. Wei called for an independent central bank, at least for documenting the decisions and the names of the decision makers. He recommended that the official records be released to the public periodically. The United States Federal Reserve releases these records every five years.

Source: Sohu, November 1, 2016
http://business.sohu.com/20161101/n472057932.shtml

Briefings | | |   Economy/Resources Government/Politics

China Times: Ninety Percent of Pension Fund Individual Accounts Are Empty

China Times, a national daily newspaper focusing on economic and financial news, recently reported that the Social Security and Insurance Administrative Center of the Ministry of Human Resources and Social Security (MOHRSS) released its 2015 Annual Report on Social Security and Insurance Developments. The Report showed that, last year, six provinces suffered a loss in pension funds and the money in individual accounts declined by one third. On a national level, by the end of 2015, the entire amount of Pension Fund Individual Accounts was valued at RMB 4,714.4 billion (around US$700 billion). However, the statistics in the Report indicated that only ten percent of that total was actually funded with available money. With a rapidly aging population, China’s pension funds face more and more funding issues, and there is a discussion underway to convert individual accounts to “nominal accounts.”

Source: China Times, October 14, 2016
http://www.chinatimes.cc/article/61390.html

Briefings | | |   Economy/Resources Social Stability

China to Join Global Automatic Exchange of Information Effort in 2018

According to news.china.com, the Ministry of Taxation recently issued a notice that stated that, starting in September 2018, China will join one hundred countries to collect banking information on non-resident individuals or enterprises and will exchange the information with the tax authorities in the account holders’ country of residence. In return China will gain banking information on Chinese residents who hold bank accounts in foreign countries.  The effort is part of a global standard on the Automatic Exchange of Information (AEOI). The purpose of the program, which was launched in July 2014, is to reduce the possibility for tax evasion. According to the article, the Ministry of Taxation will come up with its own regulations based on the U.S. Foreign Account Tax Compliance Act. Financial Institutions are required to change their work process and to complete a system upgrade to conform to the new requirements. According to the article, starting in 2017, individuals and businesses will be required to fill out their residence of taxation information when they open a new bank account.

Source:  news.China.com, October 17, 2016                                                                                                         http://news.china.com.cn/world/2016-10/17/content_39501405.htm

Briefings | | |   Economy/Resources

Hazardous Weather Conditions Have Resulted in a Loss of 50 Trillion Kilograms of Crop Each Year

According to an article in Guangming Daily, the statistics released during the recent World Food Day celebration in Nanjing revealed that the increase in the surface temperature in China is much higher than the global average. In addition, the weather’s hazardous conditions have resulted in a reduction in crop production of 50 trillion kilograms in China each year, 60 percent of which is from drought. The increase in the surface temperature in China is double the average in the world. This has resulted in increases in heat, drought, flooding, tropical storms, and smog pollution. All of these conditions have seriously impacted the production of agriculture in China.

Source: Guangming Daily, October 16, 2016                                                                                                                                   http://politics.gmw.cn/2016-10/16/content_22497162.htm

Briefings | | |   Economy/Resources

In August, Russia Became China’s Largest Oil Supplier

Well-known Chinese news site Sina recently reported that, according to data provided by Chinese Customs, in August, Russia replaced Angola to become China’s largest oil supplier. China increased oil imports mainly due to the stocking needs of China’s independent oil refiners. In August, the volume that Russia supplied increased by 50.2 percent, month-over-month. Angola was the largest supplier in July and Saudi Arabia used to hold the top seat. Statistics also showed that, in the first eight months, China’s total import volume from Russia increased by 30 percent, year-over-year. So far, Saudi Arabia is still China’s largest overall oil supplier, However, as of now, China’s imports from Saudi Arabia this year only saw a one percent increase, year-over-year. Currently Saudi Arabia’s supply level to China is 997,520 barrels per day, and Russia’s daily level is 977,330 barrels.

Source: Sina, September 22, 2016
http://finance.sina.com.cn/money/forex/datafx/2016-09-22/doc-ifxwevww1331711.shtml

Briefings | | |   Economy/Resources

Xinhua: China Plans Seven New Pilot Free Trade Zones

Xinhua, in a recent press interview, reported that Gao Hucheng, the Minster of Commerce, revealed China’s plan to establish seven more pilot free trade zones. China currently has Shanghai, Guangdong, Tianjin, and Fujian as pilot free trade zones. Gao explained the functions of the new ones in his interview. The Liaoning Zone is to breathe new life into the traditional Northeast industrial region; the Zhejiang Zone will focus on building a free-trade port; the Henan Zone will develop a modern transportation and logistics hub; the Hubei Zone will take on new high-tech industries; the Chongqing Zone will establish a strategic bridge deep into Southwest China; the Sichuan Zone will facilitate joint-development across major open cities in Western China; the Shanxi Zone will mainly promote the “One Belt, One Road” strategy for international connections with the nearby inland countries. The new zones will continue the “Negative List Management” approach to encourage open and free trade unless banned under the negative lists in the zones.

Source: Xinhua, August 31, 2016
http://news.xinhuanet.com/fortune/2016-08/31/c_1119488723.htm

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Briefings | | |   Economy/Resources