This episode contains segments on:
- Foreign trade data in October;
- The consumer and producer price indexes in October;
- Local government debt swaps;
- Loan data for the first 10 months of 2024.
Listeners are also welcome to join the ESG Strategies Conference on 21st November in Shanghai to gain valuable perspectives on emerging trends in ESG.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.
Read more:
Foreign trade data
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6194965/index.html
Consumer and producer price indexes
https://www.stats.gov.cn/sj/zxfb/202411/t20241109_1957353.html
https://www.stats.gov.cn/sj/zxfb/202411/t20241109_1957352.html
Local government debt swap
http://www.npc.gov.cn/npc/c2/kgfb/202411/t20241108_440850.html
http://www.npc.gov.cn/wszb/zzzb47/
October financial statistics report
http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/5502646/index.html
Event: ESG Strategies Conference: Insights for Business Transition
https://www.europeanchamber.com.cn/en/upcoming-events/26827
Transcript:
RUI: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 13th November 2024.
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RUI: China’s exports rose in October, recording the highest year-on-year jump so far in 2024, according to data released by the General Administration of Customs on 7th November.
MARIANN: China exported more than 309 billion US dollars’ worth of goods last month, representing 12.7 per cent year-on-year growth, and far exceeding the predicted 5.2 per cent increase. Imports, on the other hand, fell to 213 billion US dollars, representing a 2.3 per cent decline year on year. Exports are expected to continue growing for the rest of the year, driven in part by efforts to rush shipments and fill inventories ahead of tariffs that are expected to be put in place by US President-elect Donald Trump’s administration.
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RUI: China’s consumer price index rose just 0.3 per cent in October, the slowest pace of growth since June according to data released by the National Bureau of Statistics on 9th November.
MARIANN: The producer price index declined by 2.9 per cent in October. The last time the producer price index recorded any positive gain was in September 2022. This, coupled with the near-zero growth in the consumer price index, has renewed concerns about deflationary pressure.
(MUSIC)
RUI: On 8th November the National People’s Congress Standing Committee approved a State Council proposal aimed at addressing local governments’ hidden debt. Finance Minister Lan Fo’an outlined details of the plan, consisting of 10 trillion Chinese yuan in debt swaps, in a press conference and written statement following the Standing Committee’s decision.
MARIANN: By the end of 2023, hidden local government debt—or off-the-books debt— stood at 14.3 trillion yuan. The State Council’s plan will allow local governments to tap into six trillion yuan in new special bonds over the next three years to move hidden debt onto their balance sheets. An additional four trillion yuan in special bonds will be available for the same purpose, but over a five-year timeframe. The minister noted that the plan will not actually increase the overall government debt burden, instead lowering interest rates on existing debt and preventing ‘triangular debt’, a common form of hidden debt in which government-linked entities form a cycle of obligations to each other.
Finally, Lan noted that the plan will reduce the fiscal burden on local governments so that they can focus on the so-called ‘three guarantees’ – local government obligations, which include basic municipal services, salaries and other daily functions. The plan—which is the latest of a series of measures aimed at boosting China’s economy—is notably absent of fiscal stimulus, which many economists feel is needed to really make a difference in the long run.
(MUSIC)
RUI: The People’s Bank of China—or PBOC—released the October 2024 financial statistics report on 11th November, with data on loans further indicating the troubling state of China’s economy.
MARIANN: 16.52 trillion yuan of new loans were issued in the first ten months of year, putting the total value of new loans in October at about 500 billion yuan, far below expectations. The PBOC data casts doubt on the effectiveness of recent measures aimed at reenergising the Chinese economy, especially the housing sector. Only 160 billion yuan in new housing loans were reported for October, compared to about 500 billion yuan the month before.
(MUSIC)
RUI: Although the European Union’s Corporate Sustainability Reporting Directive—or CSRD—came into effect in the beginning of 2023, impacted companies only need to submit sustainability reports beginning in 2025. The directive is the first of several new pieces of EU regulation that will tighten environmental, social and governance—or ESG—compliance standards for companies doing business with Europe.
MARIANN: Significant challenges remain for members companies in this regard. A fifth of members reported concern about the inability to conduct independent third-party audits in the Business Confidence Survey 2024, which will form part of companies’ reporting requirements. Challenges persist in fulfilling environmental targets as well; more than 80 per cent of members reported that they rely on decarbonising energy use to achieve carbon neutrality, but limited access to renewable energy is still a widespread issue, with more than 60 per cent of companies reporting difficulties accessing the green energy they need.
RUI: Join us in Shanghai on 21st November for the ESG Strategies Conference: Insights for Business Transition, to gain valuable perspectives on emerging trends in ESG and have the opportunity to engage in meaningful discussions on topic.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in again next week.
RUI: In the meantime, please find useful links in the episode notes.