Thursday, February 19, 2009
Wednesday, February 11, 2009
China raises garment, textile export tax rebate rate to 15%
China will increase the tax rebate rate for textile and garment exports from 14 percent to 15 percent, an executive meeting of the State Council (Cabinet) announced Wednesday.
The move would reduce exporters' costs and support the textile industry, the Council said. The effective date of the new rate wasn't specified.
In a national plan to invigorate China's textile industry adopted by the State Council Wednesday, the government would allocate funds for companies that produce textiles or fibers, or operate in the textile printing and dyeing sector, to upgrade technology and develop domestic brands.
Government departments were told to provide financial support and insurance services to small and medium-sized textile plants.
The government would also announce steps intended to phase out obsolete capacity, eliminate energy-intensive, polluting equipment and technology, and encourage textile and garment makers to relocate from southeastern parts of China to central and western areas.
According to the plan, the government will take a proactive attitude to enlarge domestic consumption, innovate new production, expand rural markets and promote the use of textile products in relevant industries, while expanding export destinations to stabilize the share in the international market.
The textile sector is the country's traditional pillar industry and enjoys an advantage in international competition.
However, the textile industry suffered severe difficulties since last year.
Figures from the country's customs showed textile and garment export of China was 185.17 billion U.S. dollars in 2008, up 8.2 percent year-on- year, but the growth rate was 10.7 percentage points lower than in 2007.
Experts from the Commerce Ministry (MOC) attributed the downturn to appreciation the yuan, industry liquidity shortage and production material costs surge.
China has raised the export tax rebate rate for textiles three times since last August. The previous increase in November took the rate from 13 percent to 14 percent.
The work meeting also discussed measures to support the machinery manufacturing industry as the government highlighted the importance of innovation.
Enterprises are encouraged to raise competitiveness through strengthening technological innovation. Mergers and acquisition between backbone enterprises were also encouraged.
China hopes to research and develop strategic projects in machinery for high speed railways, natural gas transfer, mining, steel and iron production, the automobile and textile industries.
This plan was seen as the country's latest move toward bolstering its economy. In early November, China announced a 4 trillion yuan (586 billion U.S. dollars) stimulus package to boost domestic demand in both infrastructure investment and consumption.
China's economic growth slowed to 6.8 percent in the fourth quarter of 2008, dragging down the annual rate to a seven-year low of 9 percent, as the global financial crisis takes a toll on the national economy.
Source: Xinhua
http://english.people.com.cn/90001/90776/90884/6585967.html
The move would reduce exporters' costs and support the textile industry, the Council said. The effective date of the new rate wasn't specified.
In a national plan to invigorate China's textile industry adopted by the State Council Wednesday, the government would allocate funds for companies that produce textiles or fibers, or operate in the textile printing and dyeing sector, to upgrade technology and develop domestic brands.
Government departments were told to provide financial support and insurance services to small and medium-sized textile plants.
The government would also announce steps intended to phase out obsolete capacity, eliminate energy-intensive, polluting equipment and technology, and encourage textile and garment makers to relocate from southeastern parts of China to central and western areas.
According to the plan, the government will take a proactive attitude to enlarge domestic consumption, innovate new production, expand rural markets and promote the use of textile products in relevant industries, while expanding export destinations to stabilize the share in the international market.
The textile sector is the country's traditional pillar industry and enjoys an advantage in international competition.
However, the textile industry suffered severe difficulties since last year.
Figures from the country's customs showed textile and garment export of China was 185.17 billion U.S. dollars in 2008, up 8.2 percent year-on- year, but the growth rate was 10.7 percentage points lower than in 2007.
Experts from the Commerce Ministry (MOC) attributed the downturn to appreciation the yuan, industry liquidity shortage and production material costs surge.
China has raised the export tax rebate rate for textiles three times since last August. The previous increase in November took the rate from 13 percent to 14 percent.
The work meeting also discussed measures to support the machinery manufacturing industry as the government highlighted the importance of innovation.
Enterprises are encouraged to raise competitiveness through strengthening technological innovation. Mergers and acquisition between backbone enterprises were also encouraged.
China hopes to research and develop strategic projects in machinery for high speed railways, natural gas transfer, mining, steel and iron production, the automobile and textile industries.
This plan was seen as the country's latest move toward bolstering its economy. In early November, China announced a 4 trillion yuan (586 billion U.S. dollars) stimulus package to boost domestic demand in both infrastructure investment and consumption.
China's economic growth slowed to 6.8 percent in the fourth quarter of 2008, dragging down the annual rate to a seven-year low of 9 percent, as the global financial crisis takes a toll on the national economy.
Source: Xinhua
http://english.people.com.cn/90001/90776/90884/6585967.html
China's import prices tumble in December 2008
The General Administration of Customs of the PRC issued a report on February 5, saying that China's import and export price indexes both continued to decline in December 2008. This was the fourth month in a row that saw a slump in the import price index. Growth in export prices fell slightly.
The price of China's imports in December was 11.9 percentage points lower than it was in November, experiencing negative growth for the first time since May 2006. China's import value in December shrank by 21.3 percent, but with a 10 percent fall in import prices, actual imports fell by 12.5 percent.
Among the import figures, the price of primary goods imports slumped by 26.4 percent, 26.5 percentage points lower than it was in November. The price of industrial goods imports dipped by 3.7 percent, 9.6 percentage points lower than the November figure. The import prices for consumer goods, intermediate goods and capital goods declined by 0.8 percent, 10.1 percent and 12.8 percent, respectively.
The price of exports rose by 5.1 percent year-on-year, 0.4 percentage points lower than it was in November, and its lowest rate in 2008. China's export value in December shrank by 2.8 percent, but with the 5.1 percent rise in export prices, actual exports fell by 7.5 percent.
The price of primary goods exports surged by 13.4 percent, 9 percentage points lower than the figure for November. The export price of industrial goods climbed by 5.3 percent, 0.3 percentage points lower than November. The export prices for consumer goods and intermediate goods spiked by 11.4 percent and 7.9 percent respectively, while the export price for capital goods slipped by 6.3 percent.
By People's Daily Online
http://english.people.com.cn/90001/90776/90884/6590565.html
The price of China's imports in December was 11.9 percentage points lower than it was in November, experiencing negative growth for the first time since May 2006. China's import value in December shrank by 21.3 percent, but with a 10 percent fall in import prices, actual imports fell by 12.5 percent.
Among the import figures, the price of primary goods imports slumped by 26.4 percent, 26.5 percentage points lower than it was in November. The price of industrial goods imports dipped by 3.7 percent, 9.6 percentage points lower than the November figure. The import prices for consumer goods, intermediate goods and capital goods declined by 0.8 percent, 10.1 percent and 12.8 percent, respectively.
The price of exports rose by 5.1 percent year-on-year, 0.4 percentage points lower than it was in November, and its lowest rate in 2008. China's export value in December shrank by 2.8 percent, but with the 5.1 percent rise in export prices, actual exports fell by 7.5 percent.
The price of primary goods exports surged by 13.4 percent, 9 percentage points lower than the figure for November. The export price of industrial goods climbed by 5.3 percent, 0.3 percentage points lower than November. The export prices for consumer goods and intermediate goods spiked by 11.4 percent and 7.9 percent respectively, while the export price for capital goods slipped by 6.3 percent.
By People's Daily Online
http://english.people.com.cn/90001/90776/90884/6590565.html
Sunday, February 8, 2009
Growing China
Has China progressed? Although thirty years ago China was among the world’s poorest countries and has become the world’s third largest economy, has it actually made progress per capita, has the standard of living improved? Or has it produced an illusion of a large economy, while the truth is that it is a low-income country with a massive population. It is difficult to track China’s economic advancements due to its tampering of its numbers and lack of statistics. China has refused to contribute in a study on the purchasing power parity between countries twice in 1985 and 1993 making it difficult to evaluate the level of poverty in China. Though some studies estimate China’s development. Through 1980, the year Nike began manufacturing in China starting a phenomenon, to 2000, the year China overtook Mexico in exports of apparel to America, China’s real income per capita has raise 400%. The Chinese average income is now above the world’s average. The number of Chinese living in poverty dropped form 376 million to 222 million throughout the ninety’s. Child labor, workers of 10-14 years of age, has dropped from 30% to 8%. Though these are estimates, scientific research can vouch for their positivity. Life expectancy, height, and other medical info show that the standard of living has improved. The daily intake of food has increased 82%, rising from 1,636 to 3,044 calories. Despite all this growth, China has the world’s largest income inequality by region, and it has risen. Guangdong China’s richest province and Guizhou China’s poorest, average incomes differ 4.8 RMB, while America differs $1.9. China has shown great strides not only on a national economic level, but has boomed on a household level as well. Globalization has only propelled China.
Lechner, Frank J., and John Boli, eds. The Globalization Reader. 3rd ed. Malden, MA: Blackwell, 2008.
Lechner, Frank J., and John Boli, eds. The Globalization Reader. 3rd ed. Malden, MA: Blackwell, 2008.
Wednesday, February 4, 2009
Race to Recovery
As the nations of the world attempt to climb there way out of the global recession, China remains confident that it will pull through these dark economic times first. Barack Obama talks much about plans to help the economy. Besides stimulus packages, Obama will make use of the other side of fiscal policy. Whether it is, infrastructure, communications, or a green revolution, China will be benefited. For fourteen years China's leading commodity of exports have been mechanical and electrical, totaling at about 60% of exports. Moreover, 60% of these goods make there way to the US, EU, and Japan. With China producing a large amount of the goods, the US needs to complete such an economic booster.
Zuo Xiaolei, chief economist for Galaxy Securities, listed three reasons why China will pull out of this situation first. One, China has built its self up on what he calls a "real economy", meaning China produces actual products, manufacturing goods for the world. Compared with Americas "virtual economy", though he does not go in to the meaning of this I imagine that he is referring to our stock market driven economy. Secondly, China remains to have the fastest growing aggregate demand despite the fact that it has been halved recently from 13% to 6.8%. Additionally, the Chinese are savers, saving at a rate of almost 40%, making it possible for them to invest in the private sector of the economy. Last is China's pseudo- capitalist economy. Because china still has communistic practices, China can nullify some of the capitalist whiplash the rest of the world is feeling. The vast majority of China's banks are owned by the state. 30% of China's mechanical and electric product suppliers are state owned as well.
http://english.people.com.cn/90001/90778/90857/90862/6585728.html
http://english.people.com.cn/90001/90776/90884/6585565.html
Zuo Xiaolei, chief economist for Galaxy Securities, listed three reasons why China will pull out of this situation first. One, China has built its self up on what he calls a "real economy", meaning China produces actual products, manufacturing goods for the world. Compared with Americas "virtual economy", though he does not go in to the meaning of this I imagine that he is referring to our stock market driven economy. Secondly, China remains to have the fastest growing aggregate demand despite the fact that it has been halved recently from 13% to 6.8%. Additionally, the Chinese are savers, saving at a rate of almost 40%, making it possible for them to invest in the private sector of the economy. Last is China's pseudo- capitalist economy. Because china still has communistic practices, China can nullify some of the capitalist whiplash the rest of the world is feeling. The vast majority of China's banks are owned by the state. 30% of China's mechanical and electric product suppliers are state owned as well.
http://english.people.com.cn/90001/90778/90857/90862/6585728.html
http://english.people.com.cn/90001/90776/90884/6585565.html
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