Top news of the week:
China continues supporting market entities with tax and fee cuts
July 25, 2022
China’s accumulative tax refunds, tax and fee cuts and deferrals this year topped three trillion yuan (444 billion U.S. dollars) by July 20, amid multiple preferential policies to ease enterprise burdens. In the second half of the year, China’s tax authorities at all levels will promote the effective implementation of new tax and fee support policies to benefit more market entities.
China promotes oil and gas exploration and development
July 26, 2022
On July 24th, National Energy Administration (NEA) held a meeting in Beijing to promote the implementation of the related plan for oil and gas, to increase upstream investment with a greater effort. NEA required all related companies and departments to uphold the security and strategic bottom line to increase productivity and ensure supply of oil and gas to cope with uncertainty of international situation.
China’s manufacturing sector makes solid progress
July 27, 2022
According to the Ministry of Industry and Information Technology (MIIT), in the first half of the year, the value-added output of China’s manufacturing sector accounted for 28.8 percent of the country’s GDP, up 1.4 percentage points from 2021. Manufacturing investment maintained a relatively high growth rate, climbing 10.4 percent year on year during the same period. The data showed that high-tech manufacturing, which saw its value-added output increase 9.6 percent year on year in the January-June period, was a major force pushing the manufacturing sector’s high-quality development.
China’s industrial profits rebound in June
July 28, 2022
On July 27th, National Bureau of Statistics (NBS) published its data revealing that profits in June grew 0.8% from a year earlier, rebounding from a 6.5% decline in May. Zhu Hong, a senior statistician with the NBS, attributed the recovery to effective coordination of epidemic containment and economic and social development, as well as the thorough implementation of a raft of policies and measures to stabilize the economy.
Chinese leadership analyzes economic situation, reviews disciplinary inspection report
July 29, 2022
On July 28th, Xi Jinping presided over a meeting of the Political Bureau of the CPC Central Committee to analyze current economic situation and arrange economic work for the second half of this year. On CPC’s top-level meeting, the leadership emphasized efforts to keep the Chinese economy operating in “reasonable range” and to strive for the “best result” while also stressing sticking to the country’s dynamic zero-COVID strategy.
Insight of the week:
In the night of July 28th, Beijing Time, Chinese President Xi Jinping spoke with U.S. President Joe Biden on the phone, one day in prior to Speaker Nancy Pelosi’s controversial planned visit to Taiwan. Chinese state media published the news immediately after the call by midnight, showing the significance and urgency of the communication. In the release, Xi showed rarely seen straightforward warning to the US, using idioms like “one shall not go against the public will”, and “those stirring up a fire will inevitably burn themselves”, seeking to stop Speaker Nancy Pelosi from visiting Taiwan. It is rare to see such a tough tone of the communication between the Chinese and US leaders in decades. Before this call, China has been escalating its warnings against Pelosi’s visit. The analyst said that this official communication between two sides was to avoid any strategic misjudgment, for China to make clear its point and prevent a military conflict that might be triggered by Pelosi’s visit to Taiwan.
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Part of SwedCham China Insights articles is also published on Sweden-China Trade Council homepage: www.sctc.se
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