Global firms facing human resources challenges in Asia|Economy|chinadaily.com.cn.
Category Archives: Macroeconomic
China’s Outbound Direct Investment (ODI) is going to ASEAN countries
China’s outbound direct investment reached a record high of $87.8 billion in 2012, making it the world’s third-largest outward investor during the period. [xinhua]
In 2013, China continues to seek opportunities around the world and especially Asia. The population in south-east asia is growing fast, infrastructure projects will offer opportunities for investments and cooperation. It comes at no surprise that China and its neighbours seek to lift bilateral ties under the new circumstances.
Cooperation between China and the ASEAN countries holds great potential. President Xi JinPing visited Jakarta last week and then continued to Malaysia. Meeting with top level officials in Indonesia and Malaysia to strengthen cooperation and investments in those countries and the region.
Also Chinese Premier Li Keqiang left Beijing on Wednesday morning to attend the East Asia leaders meetings and pay official visits to Brunei, Thailand and Vietnam from October 9 to 15.
Wage growth to slow in 2014
Recent developments in China have shown that the overall macro-economic fundamentals remain stable. The central government is aiming for a sustainable growth model. Stimulus programs will be limited to key sectors, while more reforms will be implemented.
Economic growth should remain stable, but on lower levels at around 7-8% for 2013 and 2014. Double digits GDP growths rate will be a thing of the past.
The labour market remained tough in 2013 and we witnessed problems to find and retain semi-skilled workers. However these problems were significantly less pressing then in 2012. Wage growth may slow down a little in 2014, but employers still have to watch and monitor developments closely.
Current-account imbalances: Less skewed | The Economist
Pilot free trade zone (FTZ) in Shanghai will launch on Sept 29
Easier access and greater freedom for the Shanghai FTZ is promised by China’s central government. The now suggested negative list approach will allow everything that is not explicitly forbidden. Investors will have to wait and see, how long and complicated the restrictions of that negative list will be.
“The National People’s Congress Standing Committee (China’s legislature) has authorized the State council (Cabinet) to modify laws related to foreign enterprises in the zone.” [Xinhua]
“In the FTZ goods can be imported, processed and re-exported without the intervention of customs authorities. ” [Xinhua]
Housing price vs. Chinese dream
Ever higher housing prises are putting huge pressure on the Chinese middle-class home owners. Most of the income will flow into monthly loan payments. The negativ effect on domestic consumption can be felt in all major cities. Keeping housing prices within certain limits, will be crucial to keep the Chinese domestic growth on track and help the people to fulfill their Chinese dream.
“Since President Xi Jinping talked about the Chinese Dream last year, government departments have been working together to help realize the goal. For the nation as whole, the Chinese Dream means maintaining social stability, ensuring economic growth and common prosperity, and building a secure future. For an ordinary family, however, the key factor in the Chinese Dream is a better life. And keeping housing prices within a reasonable limit is essential to realize the dreams of both the nation and individuals. “[By Zhang Zhouxiang (China Daily)]
Growth range to push forward reforms and balance growth
By Xinhua
At the opening ceremony of the Annual Meeting of the New Champions 2013, also known as Summer Davos, Li [Chinese Premier Li Keqiang]described the reasonable growth range he first proposed in July as a benchmark for policy adjustments. This range is marked by a lower limit designed to ensure steady growth and job creation and an upper limit meant to avert inflation.
“As long as the economy runs within the reasonable range, we will keep macroeconomic policies generally stable and focus on shifting the growth model and structural readjustment,” Chinese Premier Li Keqiang.
Balanced growth is key to further development of the Chinese economy. Reforms should help opening up the economy and create more chances for private sectors, both domestic and foreign.
Plan to establish the Shanghai FTZ approved by the State Council in June.
By HE WEI and WEI TIAN (China Daily)
Source: http://europe.chinadaily.com.cn/business/2013-09/13/content_16966663.htm
Shanghai wishes to become one of the leading locations to conduct global trade and confirm its status as a world-leading financial hub.
The establishment of the Shanghai Free Trade Zone (FTZ) may support this development and create new opportunities for manufacturers in the region.
“Goods in the zone may be landed, handled, manufactured or reconfigured and re-exported without the intervention of customs authorities,” Sun Lijian, a professor of economics at Fudan University.
Sun said such a tariff-free environment would foster offshore trade and offer tantalising new opportunities to Chinese exporters keen to expand their production capabilities to other low-cost markets in the region. He added that such eased rules would also help them concentrate on the higher-value-added front and back ends of the manufacturing process.
“In order to support the ordinary Chinese social model, the mainland needs more sophisticated financial services. When people feel that their future is more secure, they will consume more,” Dan Steinbock, research director of international business at the India, China and America Institute in the US.
China’s steel industry in crisis
Major Problems of the industry: over-capacity, high competition, plunging profits and severe rise in levels of pollution.
Since 2005, China’s iron and steel industry has increased its capacity output by thirty million tons. However, only one fifth of the new equipment constructed since then has been inspected and approved.
Chinese exports expand in August – signs of recovery
By Li Jiabao (China Daily)
Source: http://europe.chinadaily.com.cn/business/2013-09/09/content_16953246.htm
The accelerated pace of China’s exports in August has added to the signs of a gradual recovery, experts said on Sunday.
Exports jumped in August by 7.2 percent from a year earlier to $190.73 billion, compared with 5.1 percent growth in July, the General Administration of Customs said on Sunday.