Here are five things that happened in China this week

12 Jul, 2024 - 13:07 0 Views
Here are five things that happened in China this week

Manyika Kanagai

China’s Emergency Response to Floods

In response to floods that have recently hit parts of China, the government has completed construction of an embankment stretching for about 12 kilometres to strengthen flood prevention at Dongting Lake, China’s second-largest freshwater lake where a dyke breach caused floods.

China’s top economic planner allocated 200 million yuan (about 28.05 million U.S. dollars) from the central budget. The Ministry of Finance and the Ministry of Water Resources allocated an additional 848 million yuan (about 118.9 million U.S. dollars) and the Department of the Communist Party of China (CPC) Central Committee allocated 231 million yuan (about 32.39 million U.S. dollars) for rescue and disaster relief work.

China Investigates EU

China launched a trade and investment barrier investigation into trade practices adopted by the European Union (EU) in the EU’s foreign subsidy investigations, according to China’s Ministry of Commerce (MOC).

The investigation was initiated at the request of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. The MOC said the EU’s trade practices in investigations into Chinese companies involved sectors such as locomotives, photovoltaics, wind power and security check equipment.

The investigation will involve surveys, hearings, and on-site activities to gather information from all stakeholders. While the investigation is set to conclude by January 10, 2025, it could be extended to April 10 under special circumstances.

China’s Latest CPI, PPI

China reported stable consumer price growth and a significantly narrowed decline in producer prices in June. China’s Consumer Price Index (CPI), a main gauge of inflation, was up 0.2 percent year-on-year last month, according to the National Bureau of Statistics (NBS).

Although it was slightly lower than the 0.3 percent increase in May, the price level has maintained the rising trajectory for five consecutive months. The Producer Price Index, which measures the costs of goods at the factory gate, went down 0.8 percent year-on-year last month, marking a significant narrowing from a 1.4 percent drop in May and a 2.5 percent decrease in April.

China’s NEVs Growth

China’s production and sales of New Energy Vehicles (NEVs) continued to maintain rapid growth in the first six months (H1) of this year, with the NEV market share steadily increasing in the domestic market, according to data from the China Association of Automobile Manufacturers (CAAM).

During the period, the production of NEVs reached about 4.93 million units, rising 30.1 percent year-on-year. The sales of NEVs stood at 4.94 million units, growing by 32 percent from a year earlier. The market share of NEVs in China reached 35.2 percent by the end of June.

In June alone, the production and sales of NEVs hit 1 million units and 1.05 million units, respectively, representing an increase of 28.1 percent and 30.1 percent year-on-year. In the January-June period, some 605,000 units of NEVs were exported, representing a year-on-year increase of 13.2 percent.

Tesla Becomes Chinese Government Supplier

Several State-Owned Enterprises (SOEs) in the Shanghai pilot free trade zone have recently procured a batch of Tesla Model Y vehicles for corporate use, marking Tesla’s entry into China’s government procurement arena, according to the administration of China (Shanghai) Pilot Free Trade Zone Lingang New Area.

Last month, announcements on the government procurement website of the neighbouring Jiangsu Province, a major economic powerhouse, confirmed Tesla’s entry into the province’s new energy vehicle procurement catalogue.

According to an official report on automotive data security compliance, Tesla was the sole foreign automaker among six companies that had met the specified criteria. In May, Vice Commerce Minister Ling Ji emphasized China’s openness to foreign-invested companies participating in government procurement during a roundtable discussion.

It is rare for a man to miss the mark by holding on to essentials – Confucius

Manyika Kangai is dedicated to helping African businesses and governments realise the full potential of the vast opportunities China presents. He has over 18 years of experience facilitating and advising on China-Africa trade and investment deals.

 

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