This episode contains segments on:
- Measures to upgrade hotel services for foreign nationals;
- China’s industrial profits in the first half of 2024;
- Analysis of national electricity supply and demand in the first half of 2024; and
- China’s decision to stop publishing daily global stock flows.
Also, listeners are invited to an event on 7th August, either online or in Shanghai, on the implications of the Third Plenum for European businesses in China.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
Notice on Several Measures to Provide High-level Services to the Outside World and Facilitate the Accommodation of Overseas Personnel
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2024/art_6e5fd351d24c460cad01512ce52d3f83.html
China industrial profits, H1 (NBS)
https://www.stats.gov.cn/sj/zxfb/202407/t20240727_1955855.html
Analysis and Forecast Report on the National Electricity Supply and Demand Situation in the First Half of 2024 (China Electricity Council)
https://cec.org.cn/detail/index.html?3-335294
China to Stop Publishing Daily Global Stock Flows in Mid-August (Bloomberg)
European Chamber event:
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 31st July 2024.
(MUSIC)
RUI: On 25th July, China’s Ministry of Commerce, along with seven other ministries and government organisations, issued a joint notice containing eight measures aimed at facilitating accommodation and improving other services for travellers from overseas.
MARIANN: The Notice was released two months after an official statement released in May that called on hotels across the country to accept foreign guests. The May statement was issued in response to online complaints from foreign travellers who reported having been refused rooms on the grounds that the hotels did not have the necessary qualification to provide accommodation to foreign nationals or simply did not know what the required procedure was.
RUI: The eight measures contained in the notice specify some of the steps to be taken by local authorities, hotel operators and online registration platforms in order to optimise services for foreign travellers. These steps include preparing front-desk personnel to handle registration and other services, installing signs in English and improving the foreign language version of hotel booking software and other, related network operation platforms.
(MUSIC)
RUI: Profits made by larger industrial firms in China grew 3.5 per cent in the first half of 2024 compared to the same period last year.
MARIANN: Data released by the country’s statistics bureau on 27th July showed that industrial profits totalled at over 3,500 billion yuan in the January-June period. Over 70 per cent of these profits were generated in the manufacturing sector. The mining sector generated over 17 per cent, while utilities providers about 10 per cent of the total. In June alone, the year-on-year rate of growth in profits was 3.6 per cent.
(MUSIC)
RUI: According to a report released on 24th July by the China Electricity Council, in the first half of 2024, while the country’s power consumption increased compared to the same period last year, for the first time the proportion of coal power fell below the combined share of wind and solar energy.
MARIANN: Total electricity consumption rose 8.1 per cent year-on-year in the January-June period. Power consumption jumped significantly in high-tech and equipment manufacturing, and in the internet data services sector. The latter’s electricity consumption surged 33 per cent, which the Council attributed to fast-paced development in areas such as mobile internet, big data and cloud computing. The report forecasts that in 2024, China’s total energy consumption will grow 6.5 per cent compared to last year. Meanwhile, the installed capacity of wind and solar energy production is expected to surpass 40 per cent of the country’s total capacity by the end of the year.
(MUSIC)
RUI: Bloomberg reported on 29th July, that starting from mid-August China will further curb access to information on its stock market flows.
MARIANN: Bloomberg cited a statement from the Shanghai and Shenzhen exchanges issued on 26th July, which said that from 18th August, they will no longer disclose end-of-day data on global stock flows. The publication of real-time flows data was already suspended in May. Access to important information related to the economy has already been significantly curtailed, especially for foreign entities. Without access to such data and related business intelligence, companies are increasingly unable to make well-informed investment decisions in China, making them increasingly likely to look to other jurisdictions that offer more transparency.
(MUSIC)
RUI: On 18th July, the Central Committee of the Chinese Communist Party concluded its Third Plenum, a major conference held every five years to chart the overall direction of the country’s long-term economic and social policies.
MARIANN: At this year’s Third Plenum, China’s leadership has again acknowledged many of the headwinds facing the country’s economy, including risks in the real estate sector and local government debt, and signalled its intent to deepen reforms. The resolution passed at the session highlights the task of deepening reform to advance the country’s modernisation. At the same time, it reiterates the need to balance economic recovery against national security concerns, while maintaining social stability.
RUI: Join us on 7th August online or in person in Shanghai to learn about the Third Plenum’s implications for European businesses operating in China. Experts and industry players will discuss market opportunities, potential risks and challenges, and strategies to navigate China’s evolving business landscape. They will also share their views on the future of China’s economic opening, as well as geopolitical considerations, and their impact on specific sectors.
(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.