Business
China December New Yuan Loans Seen Lower but Hitting Record in 2019: Reuters Poll
BEIJING—New bank loans in China likely fell in December but lending for all of 2019 still set a record, a Reuters poll showed, as the central bank eases policy to support the slowing economy.
Chinese banks are estimated to have issued 1.194 trillion yuan ($171.7 billion) in net new yuan loans last month, down from 1.39 trillion yuan in November, according to the median estimate in the survey of 31 economists.
If December data, due during the coming week, is in line with forecasts, total new lending in 2019 would hit 16.88 trillion yuan, up 4.3 percent from the previous record of 16.17 trillion yuan in 2018.
Analysts say faster credit expansion will be key to stabilizing economic growth, which cooled to 6 percent in the third quarter of 2019, the slowest since the early 1990s.
To spur lending, the People’s Bank of China (PBOC) has cut banks’ reserve-requirement ratios (RRR) eight times since early 2018 and pumped out trillions of yuan in liquidity. But the central bank has been wary of rising debt and high property prices and looks increasingly reluctant to ease more aggressively.
The PBOC has also lowered its key lending rate in recent months, with more cuts expected possibly before the end of this month.
China will keep its inflation target unchanged this year at around 3 percent, sources said, suggesting policymakers will continue to roll out more economic support measures while avoiding aggressive stimulus.
China plans to set a lower economic growth target of around 6 percent in 2020 from 6-6.5 percent in 2019, policy sources said.
Analysts say the U.S-China Phase One trade deal, expected to be signed this month, will relieve only some of the pressure weighing on the Chinese economy, which has also been hobbled by sluggish domestic and global demand, slowing investment and weakening business confidence.
Beijing has been leaning more heavily on fiscal stimulus to weather the downturn, cutting taxes and issuing local government bonds to fund infrastructure projects.
The government has brought forward 1 trillion yuan of its 2020 local government special…
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
Business
Yakult Unveils Restructuring Plans for Its China Operations | ESM Magazine
Yakult reorganized its China operations, dissolving the Shanghai subsidiary while opening a new branch. Manufacturing now consolidates at Wuxi and Tianjin plants, aiming for enhanced efficiency and growth.
Yakult’s Business Reorganisation in China
Yakult has announced a significant reorganisation of its operations in China, aiming to enhance competitiveness and sustainability. The company has dissolved its wholly-owned subsidiary, Shanghai Yakult, which previously managed manufacturing and sales functions. This strategic move is expected to streamline its operations in the Chinese market.
New Branch and Manufacturing Adjustments
Yakult’s head office in China has established a new branch in Shanghai, transferring the sales division from Shanghai Yakult to this location. As of December 6, the branch has started selling various products, including Yakult and its light variants. Meanwhile, the manufacturing plant in Shanghai has ceased operations, with production capacity now absorbed by the Wuxi and Tianjin plants to ensure efficient supply.
Commitment to Growth
The company remains steadfast in its dedication to the Chinese market and is optimistic about future growth. Yakult reassured stakeholders that the reorganisation will have minimal financial impact and aims to enhance efficiency. Founded in 2005 in Shanghai, Yakult China currently employs approximately 2,216 individuals, reinforcing its commitment to customer health and expanding operations.
Source : Yakult Announces Reorganisation Of China Business | ESM Magazine
Business
UAE-China Trade Set to Surpass $100 Billion This Year – Arabian Business
UAE and China aim to surpass $100 billion in trade this year, highlighting their growing economic partnership and mutual interests in various sectors, as reported by Arabian Business.
UAE-China Trade Growth
The UAE and China are on track to see their trade surpass $100 billion in 2023. This significant milestone underscores the strengthening economic ties between the two nations. The robust growth is attributed to various sectors, including technology, agriculture, and logistics.
Bilateral Initiatives
In recent years, both countries have launched several initiatives aimed at enhancing bilateral trade. These efforts are designed to facilitate smoother cross-border transactions and promote investments. The UAE’s strategic location as a regional hub complements China’s expanding market reach, benefiting both economies.
Economic Impact
This burgeoning trade relationship is expected to create more job opportunities and stimulate economic growth in both countries. As the cooperation deepens, stakeholders anticipate additional advancements that will further solidify UAE-China ties in the global market.
Source : UAE and China trade to pass $100bn this year – Arabian Business
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