The Sunday Mail
Manyika Kangai
Xi meets US secretary of state in Beijing
Chinese President Xi Jinping met with US secretary of state Antony Blinken at the Great Hall of the People on Monday. Noting that the world is developing and times are changing, Xi said the world needs a generally stable China-US relationship, and whether the two countries can find the right way to get along bears on the future and destiny of humanity. Xi also pointed out that the vast expanse of the earth is big enough to accommodate the respective development and common prosperity of China and the United States. Blinken conveyed that the United States stands by the commitments made by US President Joe Biden, namely that the US does not seek a new Cold War; it does not seek to change China’s system; its alliances are not directed at China; it does not support “Taiwan independence”, and it does not seek conflict with China.
China continues rate cuts
China’s market-based benchmark lending rate was lowered for the first time since last August amid efforts to strengthen post-Covid recovery. The one-year Loan Prime Rate (LPR) came in at 3,55 percent on Tuesday, down from the previous reading of 3,65 percent, according to the National Interbank Funding Centre. The over-five-year LPR, on which many lenders base their mortgage rates, was lowered by 10 basis points to 4,2 percent. The monthly-released data is a pricing reference rate for banks and is based on rates of open market operations of the People’s Bank of China, the central bank, especially the Medium-term Lending Facility (MLF) rate. The central bank already cut the interest rate of its one-year MLF from 2,75 percent to 2,65 percent last week and also cut two other policy rates. It lowered the seven-day reverse repo rate for the first time since last August from 2 percent to 1,9 percent and announced a cut on the interest rates of its standing lending facility, with the overnight rate down by 10 basis points to 2,75 percent.
China extends tax incentive for NEVs
China will extend its preferential purchase tax policy for New Energy Vehicles (NEVs) to the end of 2027, according to a statement released by the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology. Purchase tax will be exempted for NEVs bought in 2024 and 2025, and it will be halved for NEVs bought in 2026 and 2027. The move seeks to support the NEVs sector’s development and stimulate automobile consumption.
Alibaba appoints new chairman, CEO
Chinese e-commerce giant Alibaba Group announced on Tuesday that Joseph Tsai, currently executive vice chairman, will succeed Daniel Zhang as chairman of the company. According to the group, Eddie Wu, the present chairman of Alibaba’s e-commerce platform Taobao and Tmall Group, will succeed Daniel Zhang as chief executive officer (CEO). Both appointments will take effect on September 10 this year. Following the transition, Daniel Zhang will serve exclusively as chairman and CEO of Alibaba Cloud Intelligence Group.
China’s Communist Youth League starts National Congress
The Communist Youth League of China (CYLC) convened its 19th National Congress at the Great Hall of the People in Beijing on Monday. Leaders of the Communist Party of China (CPC) and the state, including Xi Jinping, Zhao Leji, Wang Huning, Ding Xuexiang and Li Xi, attended the opening to extend their congratulations. Cai Qi delivered an address on behalf of the CPC Central Committee. Nearly 1 500 delegates from across the country attended the congress on behalf of more than 73 million CYLC members. In his address, Cai said the CYLC has taken Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide since the 18th CYLC National Congress and urged the youth in China to strive to be the new era’s great young generation with ideals, a sense of responsibility, grit, and dedication.
Attack is the secret of defence; defence is the planning of an attack — Sun Tzu
*Manyika Kangai has over 15 years of experience facilitating and advising on China-Africa trade and investment deals. He is dedicated to helping African businesses and governments realise the full potential of the vast opportunities China presents
