Here are five things that happened in China this week

Manyika Kangai

 

China kicks off the Year of the Loong

China kicked off the Year of the Loong with vibrant travel and entertainment activities during the recent Lunar New Year, or Spring Festival holiday. This year’s Spring Festival holiday lasted from February 10 to February 17, one day more than the previous years. The eight-day holiday saw robust consumption. During the holiday, China’s national box office hit a record high of 8,02 billion yuan (about US$1,1 billion), up 18,5 percent. And the number of people watching movies also set a new record of 163 million, up 26,4 percent, according to the China Film Administration.

About 474 million domestic tourism trips were made during the Spring Festival holiday, up 19 percent from the pre-pandemic level in 2019, according to the Ministry of Culture and Tourism. Online payment clearing house NetsUnion Clearing Corporation and card payment giant China UnionPay handled a combined average of 2,6 billion online transactions each day from February 9 to 17, up 18,6 percent. Chinese railways reported 99,5 million passenger trips and China’s express delivery industry delivered about 641 million parcels, up 82,1 percent, according to data released by the State Post Bureau.

China’s LPR drops

China’s Loan Prime Rate (LPR), a market-based benchmark lending rate, saw its over-five-year rate, on which lenders base their mortgage rates, come in at 3,95 percent on Tuesday, down from the previous reading of 4,2 percent. The one-year LPR remained unchanged at 3,45 percent, according to the National Interbank Funding Centre. A lower LPR is expected to shore up the credit and property markets, reduce the financial costs of businesses and individuals and contribute to steady economic recovery.

China drafts law to promote private sector

China has started drafting a law to promote its private sector, according to China’s Minister of Justice He Rong at a symposium to discuss the legislation on Wednesday.

The symposium, which was attended by representatives of private enterprises and academics, was jointly held by the Ministry of Justice; the National Development and Reform Commission; and the Legislative Affairs Commission of the National People’s Congress Standing Committee. He said drafting work will widely solicit opinions from the public and reach a consensus among different parties so that the law can effectively promote the healthy development of the private sector.

China’s Xiaomi opens new factory

Chinese smartphone maker Xiaomi has put into operation a new factory in Beijing’s Changping District, according to the district government.

The new facility, located in Xiaomi’s industrial park in Changping, covers 81 000 square metres and is capable of producing around 10 million phones annually. The factory is equipped with cutting-edge intelligent manufacturing technology. Most of the work at the factory is done by robotic systems, ensuring continuous operation around the clock. All production lines at the factory are expected to be operational by the end of 2024.

ExxonMobil invests in China

US energy giant ExxonMobil plans to invest 10 billion yuan (about US$1,4 billion) in its Huizhou ethylene project in south China’s Guangdong province this year.

Dubbed as one of China’s major foreign investment projects, with a total investment of about US$10 billion, the ExxonMobil Huizhou Ethylene Project is located in the Huizhou Daya Bay Petrochemical Industrial Park.

Addressing the Guangdong Provincial High-Quality Development Conference in Shenzhen, Jean-Marc Taton, chairperson of ExxonMobil China, said ExxonMobil has already invested over 30 billion yuan (about US$4,2 billion) in the first phase of the project, which is expected to be operational by the end of this year, after a test run. The project will be built in two phases.

 

*Manyika Kangai is dedicated to helping African businesses and governments realise the full potential of the vast opportunities China that presents. Feedback: +27743487997/www.muvambi-sa.co.za