MAR. 2012 No. 520 Sponsored by CCPIT Since 1956 CHINA’S F REIGN TRADE The Export-Import Bank of China: Want to Be the Best in A Better World SPECIAL REPORT China’s Agricultural Technology Underway SURVEY China’s Pharmaceutical Market Eyes Rapid Growth Jaclyn Tsai, Founder of Lee, Tsai & Partners 国内邮发代号：80-799 国际邮发代号：SM1581 国内刊号：CN11-1020/F 国际刊号：ISSN0009-4498 http://www.ccpit.org • POLICIES China pledges deeper economic reforms earlier, the smallest gain since 2009, according to the General Administration of Customs. New measures will be introduced The Ministry of Commerce has predicted to boost consumption, especially for that a slowdown in the country’s export growth vehicles and electrical appliances, as could continue at least into the first quarter of export demand weakens, China Daily 2012 with a “more severe” outlook. reported. “This year in China will be all about try- With tax rebate policies on ve- ing to ensure a soft landing,” said Jim O’Neil, hicles and appliances having expired chairman of Goldman Sachs Asset Manage- or due to expire, “new measures are ment. in the pipeline” to boost consumption, “Growth, under downward pressure from said Huang Hai, former assistant min- weakening exports and a fall in government- ister of commerce and member of the sponsored investment, will have to be led by economic and trade policy consulting committee affiliated to the Ministry of Com- stronger personal consumption if the economy merce. is to grow by more than 8 percent.” “The Ministry of Commerce has drafted a proposal to continue the stimulus It was agreed at the annual Central Eco- programs in the coming few years, but in different ways, and they are expected to nomic Work Conference in December that Chi- cover vehicles and those related to real estate, say household appliances,” Huang told na will be committed to expanding domestic China Daily in an interview. consumption and improving people’s livelihood The measures may include subsidies for consumers in affordable housing to buy while trying to stabilize exports. appliances and for those planning to change their cars. Since the global financial crisis in 2008, Ministry of Commerce spokesman Shen Danyang also said the ministry is the government has launched a series of pref- mulling over launching new programs on expanding domestic consumption. erential polices encouraging local consumers, Huang also disclosed that under the instructions of Premier Wen Jiabao a na- through subsidies, to renew or purchase house- tional circulation conference, the first of its kind, will be held around April. hold appliances and cars. Government officials will discuss how to introduce concrete measures to boost “No matter whether the nation’s economy consumption at the conference, he added. slows down or not, China will have to change its More than 10 central government departments including the Ministry of Com- economic growth model to consumption-oriented, merce, the National Development and Reform Commission and the Ministry of rather than export-or investment-driven,” said Lu Finance, are expected to make proposals after conducting research before the con- Zhengwei, chief economist with Industrial Bank ference, Huang said. Co Ltd. China has sought to sustain fast economic growth through boosting domestic China’s State Council, or the Cabinet, on consumption, given the fact that export growth has been declining during the past Feb. 15 pledged to push for deeper reforms to few months with demand weakening from the European Union, China’s largest address the country’s economic problems, Xin- trade partner. hua News Agency reported. In November 2011, the nation’s exports increased by 13.8 percent from a year The government will use reform to solve FIGURES cating that the economy is transferring 0.3% to a more inner-led growth mode, the China used 9.997 billion U.S. dol- General Administration of Customs 21.9% lars of foreign direct investment (FDI) (GAC) said on Feb. 15. China’s spending in research and in January, down 0.3 percent year-on- development (R&D) last year surged 21.9 year, the Ministry of Commerce (MOC) $73.19b percent year-on-year to 861 billion yuan said on Feb. 16. ($139.7 billion), the country’s statistical The central government has invest- authority said on Feb. 22. ed 461.1 billion yuan ($73.19 billion) 50.1% in forestry over the past six years, the China’s reliance on foreign trade State Forestry Administration said on 22.6% dropped to 50.1 percent in 2011, indi- Feb. 15. China’s tax revenues surged 22.6 2 QUOTES deeply rooted structural problems that “Investment will continue” are hampering the country’s develop- ment, according to a statement released “We look for the eu- after a State Council executive meeting rozone and EU to ... offer presided over by Premier Wen Jiabao. investment products that are The government promised policy more attractive and favor- improvements in the non-public sector able for China-EU coopera- to encourage private capital to enter tion,” Zhou said. fields that were previously monopo- He made the comments lized by the state, including railways, while hosting an event for municipal administration, finance, visiting European Coun- energy, telecommunications, educa- cil President Herman Van tion and health care, according to the Rompuy and European statement. Commission President Jose China will expand a pilot pro- Manuel Barroso. gram for value-added tax adjustments He also said that China would increase its participation through the In- and advance resource tax reforms, the ternational Monetary Fund, the European Financial Stability Facility and the statement said. future European Stability Mechanism. To make financial services more “At the G20 meeting, our state leaders promised European leaders that, accessible, the statement said China amid the global financial crisis and the European sovereign debt crisis, China will actively cultivate small-scale fi- will not reduce the proportion of euro exposure in its reserves,” Zhou said. nancial institutes to target small- and micro-sized businesses, adding that “China needs to continue economic reforms for the government will work to properly sustainable growth” guide private financing. Electricity, refined oil and water China has emerged successfully from the global financial crisis, but the pricing mechanisms will also be re- nation must continue to undertake fundamental reforms to sustain its eco- formed, the statement said. nomic growth and help the rest of the world recover, Nicholas Lardy, a senior Reforms in rural areas will in- fellow at the Washington-based Peterson Institute for International Econom- clude regulations on the expropriation ics, said on Feb. 1. of collectively-owned land. Despite the impressive economic performance, China must adopt a “fun- Other reforms discussed during damentally new growth model if it is to sustain anywhere near its recent pace the meeting included policy adjust- of economic growth” and cope with various economic imbalances, Lardy ar- ments in the areas of social service, gued in his new book entitled “Sustaining China’s Economic Growth After administration and foreign invest- the Global Financial Crisis”. ment, according to the statement. percent year-on-year to 8.97 trillion yuan 0.5 percent year-on-year in January, ($1.42 trillion) in 2011, the Ministry of 5.5b the first decline in two years as a Finance said on Feb. 14. China’s central government will in- week-long holiday distorted trade vest 5.5 billion yuan ($873 million) figures, official data showed on Feb. this year to clean up pollution in 10. on Feb. 9. $14.2t the country’s rural areas, the China’s foreign exchange market Ministry of Finance (MOF) saw its transaction volume hit said on Feb. 13. 3% $14.2 trillion in 2011, up four China’s foreign exchange regulator times from 2006, the coun- said on Feb. 9 that the country’s cur- try’s forex regulator said on 0.5% rent account surplus would account for Feb. 13. China’s exports dropped around 3 percent of the GDP in 2011. 3 POLICIES their performance assessment system. To better implement the policies, China’s Govt boosts new-type industrialization bases quality watchdog will produce a specific plan annually to guide the work, according to the The Chinese government has set eight major tasks for the future development of blueprint. national new-type industrialization demonstration bases, according to a joint release by the Ministry of Industry and Information Technology, Ministry of Finance and Urbanization to engine China’s Ministry of Land and Resources on Jan. 29, according to China Daily. economy The eight tasks require the demonstration bases to: strengthen self-dependent innovation and technological transformation; encourage low-carbon growth; expand leading enterprises and advance coordination abilities of small and medium-sized firms; promote industry convergence and focus on producer services; build self- owned brands and regional brands; deepen the integration of Informatization and industrialization; develop the public service system, and improve land-use efficiency. The joint release also specified measures in policies, financial support, social resources and talent building. Developing new-type industrialization demonstration bases will contribute to the national industrial transformation and upgrade, boost regional economic devel- opment, and help China become a powerful player in the international industrial competition. China vows to promote quality in development China has vowed to step up management and supervision over the quality of its products and projects in its development for the years to come, according to a blue- The Chinese government is building new print released on Feb. 10 by the State Council, said Xinhua. cities in the country’s underdeveloped interior, The blueprint, featuring the development of enhanced quality, establishes targets hoping to convert millions of farmers into city for the 2011-2020 period.