Ditching U.S.Securities?

Japan overtook China as the largest foreign holder of U.S.Treasury securities at the end of 2009 after China sold $34.2 billion in American securities last December.China had previously surpassed Japan as the largest holder in September 2008.Since then,China has increased and reduced its holding from time to time.The latest amount,however,accounted for 4 percent of all Chinese holdings and was the biggest single month reduction in years.     

MARKET WATCH

TO THE POINT: China’s foreign trade records monthly drop again, with February’s deficit reaching $7.3 billion. The feverish auto market is calming down, with February sales dropping 33.1 percent from a month ago. Chinese thermal power generators are facing serious head- winds as the coal price increases. Ernst & Young’s report shows China racing ahead of other countries in renewable energy investments. The U.S. coupon website Groupon.com extends its reach into China, but its prospects remain uncertain. Digital advertiser Focus Media is faring well thanks to a booming advertising market in China.     

MARKET WATCH

A greener China means additional business opportunities for Siemens Green is in.And green technology is set to become the next cash cow for major appliance,automobile and     

A MUTUALLY BENEFICIAL PLATFORM

Paulo Estivallet de Mesquita, Brazilian Ambassador to China China has been Brazil's main trading partner since 2009, and Brazil ranked ninth as China's main trading part-ner in 2020. Last year, Brazil and China established a record-high bilateral trade flow, with over $102 billion. A new bilateral trade record has already been achieved in 2021: From January to September, Brazil-China trade has surpassed $105 billion. Thus, it is fair to say that we have a mature and mutually beneficial commercial relation-ship. However, there is always room for improvement and that is why events such as the CIIE play an important role. More than 22 Brazilian companies were rep-resented at the CIIE, all of them aiming at deepening their knowl-edge of the Chinese market and increasing their local presence.     

MARKET WATCH

As a supplement to this issue's cover story, Market Watch takes a quick look at the rest of the industries that the Central Government seeks to revitalize. They include the light, petrochemical, nonferrous metal and logistics industries. The budget deficit this year is expected to hit an all-time high of 950 billion yuan ($140 billion) in the wake of massive tax cuts and increased government spending. In the first month of this year, the amount of loans issued by banks reached a record high in accordance wi...     

Business in Brief

China is preparing to sell off as many as 11 power plants in a move that could raise 2 billion US dollars towards upgrading infrastructure and alleviating chronic electricity shortages. The State Grid Corporation of China has appointed two international investment banks, Goldman Sachs and UBS, to manage the sale.     

BRICS Go for Gold

正With contracts for 28 projects worth some 13.4 billion yuan($2.1 billion) signed, an innovation base for BRICS partners on the new industrial revolution was unveiled to the public in Xiamen, Fujian Province, on September 7. The announcement took place at a forum on the sidelines of the 21 st China International Fair for Investment and Trade, running from September 8 to 11.     

MARKET WATCH

Funding Retirement State shareholders had transferred nearly 65 billion yuan($9.5 billion)worth of stocks in listed companies to the Social Security Fund(SSF)by March 29,according to a statement from the SSF.     

Consensus and Confidence

Investing over $30 billion in 80 projects, from clean energy to digital infrastructure. Setting up a $10-billion emergency assistance loan facility for COVID-19 control. Approving around $9 billion in loans under this program. These are a few examples of what the New Development Bank (NDB), a multilateral financial institution established by the BRICS countries— Brazil, Russia, India, China and South Africa, has achieved since its debut in 2015.     

Biden,China and Trade

Relations between China and the U.S. are at a low point and the Donald Trump-instigated trade war continues under President Joe Biden. Can substantial progress be made in tariff reduction? In the realm of diplomacy, much is possible; but is Washington being sincere? In 2018, Trump launched his counterproductive trade war against China, Russia, and several other countries. Overall, the Trump tariffs impacted some $410 billion in imports and exports and raised costs for the U.S. consumer by around $51 billion per year. They have since been forced to bear the brunt of the inflationary consequences and have seen their options reduced due to affected trade levels and decreases in both imports and exports.     

Nujiang's Miracle

正China eliminated absolute poverty in 2020,attracting the attention of the international community, and bagging the praise and positive comments as well as curiosity and doubt. Some cannot imagine that a country with a population of 1.4 billion has been able to lift all its people out of absolute poverty, completing the poverty reduction goal of the United Nations 2030 Agenda for Sustainable Development 10 years ahead of schedule.     

Economic Rebound Attracts More FDI

正The Western mainstream media has often lashed out against the Chinese Government and the country,but that has not resulted in a negative impact on China when it comes to attracting substantial flows of inbound foreign direct investments(FDI).     

Commitment Is the Key

China's development miracle decoded It's hard to disassociate President Xi Jinping and his philosophy on governance from China's rapid development.After reading Xi Jinping:The Governance of China,I have up-to-date understanding of China's development in the new era,the development philosophy of the Communist Party of China(CPC),and the development blueprint for this big country with a population of 1.4 billion people.In recent years.     

MARKET WATCH

The central bank on November 19 ordered commercial banks to set aside an additional 0.5 percent of their reserves amid looming inflationary risks.Investors are on the defense and preparing for the worst by buying up gold as a safe haven against inflation and market uncertainties.China’s stateowned enterprises earned a combined profit of 1.626 trillion yuan($245 billion) from January to October this year,soaring 44.8 percent year on year.In a push into renewable energies,China should enhance efforts in hydropower,wind power and inter-provincial trade,as well as green electricity schemes,said the World Bank.The aviation industry booms as air traffic increases.     

China＇s First Electricity-Powered Auto Goes to the U.S.

China‘s young tycoons and wealthy individuals are developing a lust for luxury goods.Virtually all the world‘s established brands have set up outlets in China, where their eyecatching products are causing a commotion. Industry analysts say that emerging markets are vital to luxury goods manufacturers‘ growth,     

MARKET WATCH

Manufacturing Slackens The momentum of the manufacturing sector showed signs of wearing off in July,raising concerns over an economic slowdown.     

What Role Can an Individual Pension System Play?

China currently has a three-pillar pension system in place to manage eldercare.The first pillar is the basic pension system that covers nearly 1 billion people,on which regular workers and residents depend.The second pillar,namely enterprise annuities,is taking shape,now covering more than 58 million people.The third pillar,the individual pension system,is still in the early stages of development.It corresponds to the overall social security system based on voluntary participation and the defined contribution principle by providing a supplementary income during retirement through various money management and investment programs.     

MARKET WATCH

TO THE POINT:As part of global effort to reverse the economic slow-down,China announced plans to revive the nation's textile and equipment manufacturing industries by offering them more favorable policies.Meanwhile,the government decided to invest as much as $85 billion in building new-energy power plants in 2009.Taking advantage of the world economic downturn,Sany Heavy Industry embarked on establishing a 100-million-euro research and development center and manufacturing base in Germany.Consumption remaine...     

MARKET WATCH

The China Banking Regulatory Commission has kickstarted a pilot program to bolster consumer finance companies. This marks a step forward in the economic shift toward consumptions. In June, China trimmed a record net $25.1 billion in holdings from U.S. Treasury securities on concerns over the value of U.S. dollar assets. Air China Ltd., one of the country's big three carriers, meanwhile, plans to raise its stake in Cathay Pacific Airways Ltd. to nearly 30 percent. China's foreign direct investment inflows, a...     

MARKET WATCH

Chinese banks reap juicy returns as interest income widens.The manufacturing sector warms up,as evidenced by the PMI's continued growth.Foreign trade regains its lost ground and is estimated to grow 25 percent this year,but the road ahead is filled with challenges. Consumers click away as China's e-commerce sector booms with a transaction volume totaling $180 billion in the third quarter this year. International hot money remains a concern since an increased amount may be pouring into China.