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Insights and Impact of China’s National Financing Credit Service Platform

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China introduced the National Financing Credit Service Platform to improve financing opportunities for private enterprises. Efforts include streamlining platform development, enhancing credit data mechanisms, and prioritizing high-quality services for all enterprises, especially small and medium-sized ones. The platform aims to increase credit availability and reduce costs for private enterprises.


On January 2, 2024, the National Development and Reform Commission (NDRC) organized a significant conference in Jinjiang City, Fujian, emphasizing innovative development for high-quality growth in the private economy. During this event, the ‘National Financing Credit Service Platform’ was introduced—a nationwide digital infrastructure designed to improve financing opportunities for private enterprises.

Subsequently, on April 2, 2024, the General Office of the State Council unveiled a comprehensive action plan aimed at strengthening financing credit service platforms. The plan focuses on facilitating financing for micro, small, and medium-sized enterprises (MSMEs). Key strategies include streamlining platform development, enhancing credit data mechanisms, and encouraging financial institutions to prioritize high-quality services for all enterprises, with particular attention to MSMEs.

Historically, MSMEs and private businesses have encountered significant challenges in accessing affordable financing. These entities, especially those in the startup or growth phase, often struggle to secure bank loans due to their lack of collateral and credit data. Financial institutions that provide credit services rely on scattered and hard-to-obtain credit information, which limits their ability to assess the creditworthiness of these enterprises and extend loans.

To address this issue, China established the National Financing Credit Service Platform. This platform offers four key services:

Meanwhile, China aims to optimize its national integrated financing credit service platform network in several ways. Efforts include improving information collection and sharing platforms nationwide, integrating the national financial credit database, streamlining redundant local platforms by the end of 2024, and expanding information collection to cover major enterprise personnel, qualifications, and trade activities. Local platforms are also encouraged to develop specialized modules for emerging industries, green development, key industrial and supply chains, and agricultural sectors.

Currently, the National Financing Credit Service Platform has fostered a new inclusive finance model based on credit information. It provides comprehensive financing services for small and medium-sized enterprises, especially private ones. Going forward, the platform aims to strengthen financial support for private enterprise development by enhancing efficiency through credit information sharing and digital technology applications. This will increase credit availability, reduce costs, and broaden access for private enterprises.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Business

China Stocks Experience Largest Weekly Surge Since 2008 – The New York Times

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Chinese stocks experienced their largest weekly increase since 2008, reflecting significant market optimism and investor confidence amidst economic recovery and supportive government policies.


China Stocks Experience Historic Surge

China’s stock market has witnessed its most significant single-week gain since the 2008 financial crisis. Investors are reacting positively to recent government measures aimed at stabilizing the economy and boosting market confidence. This surge signifies a potential turnaround for the beleaguered market, sparking renewed optimism among traders and analysts alike.

Economic Policies Driving Growth

Several economic policies implemented by the Chinese government have contributed to this growth. These include targeted stimulus measures and incentives to stimulate spending. As a result, projects that had been stalled due to previous economic uncertainty are now showing signs of revival, which further enhances investor sentiment.

Future Outlook

While the recent uptick is promising, analysts urge caution. The foundations of this rally rest on sustained economic recovery and the effectiveness of government interventions. Stakeholders remain vigilant, monitoring the economic landscape for signs of stability to ensure this momentum continues in the coming weeks.

Source : China Stocks Soar in Biggest Single-Week Jump Since 2008 – The New York Times

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China

Taiwan Needs to Crack Down on China’s Misinformation Efforts

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In reaction to President Lai’s inauguration, China’s PLA conducted military drills and expanded disinformation campaigns, undermining Taiwanese electoral trust and emphasizing a narrative of peace or war regarding Taiwan’s future.


Increasing Tensions Following Inauguration

In the wake of Taiwanese President Lai Ching-te’s inauguration, the Chinese People’s Liberation Army (PLA) swiftly initiated a military drill, dubbed Joint Sword-2024A, showcasing their might and signaling discontent with any perceived threats to the One China principle. The PLA’s operation, which enveloped Taiwan, involved various military branches and indicated a stark message from Beijing. Amid these military displays, China has ramped up its disinformation campaigns during Taiwan’s 2024 elections, overwhelming traditional fact-checking measures and fostering distrust in Taiwan’s democratic processes.

A Shift in Rhetoric and Strategy

President Lai’s inauguration on May 20, 2024, marks a critical shift in rhetoric compared to his predecessor, Tsai Ing-wen. Lai’s direct reference to China has led Beijing to label him a dangerous separatist. The response from China’s Taiwan Affairs Office emphasizes the view that Lai’s hardline approach could escalate tensions and lead to conflict. Simultaneously, a dramatic invasion simulation video released by the PLA serves to reinforce these tensions, amplifying Beijing’s strategic use of influence operations.

Resilience in the Face of Disinformation

The developments surrounding Lai’s presidency signify a worrying pattern in cross-strait relations, with Beijing’s coercive tactics likely to escalate further. China aims to erode trust in Taiwan’s political institutions through targeted influence operations. However, Taiwan remains resilient against these efforts, bolstered by a robust network of media and civil society organizations adept at countering disinformation. As tensions rise, maintaining public trust and vigilance becomes increasingly vital for Taiwan’s democratic integrity.

Source : Taiwan must tighten the lid on China’s misinformation campaigns

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Exploring China’s Food and Beverage Market: Essential Growth Trends and Opportunities

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China’s rapidly growing food and beverage (F&B) market, valued at approximately RMB 11.71 trillion in 2023, shows significant potential due to increasing consumer spending and health trends. Foreign companies are entering the market, focusing on innovation and healthier products amid fierce competition.


China’s F&B market presents a dynamic landscape with substantial growth potential and evolving consumer preferences. Despite fierce competition, foreign companies are increasingly entering the Chinese market either through direct investment or partnerships with local firms. Adapting to the shifting market trends and fostering innovations are key to success in this dynamic market.

China’s food and beverage (F&B) market stands as one of the largest and fastest-growing sectors globally. This remarkable growth is fueled by increasing consumer spending, rapid urbanization, and the rise of a burgeoning middle class.

As consumers become more health-conscious and quality-driven, there is a notable shift towards healthier and premium products. Organic, low-sugar, and functional foods are gaining popularity, reflecting the evolving preferences of Chinese consumers.

Despite facing challenges such as regulatory changes, food safety concerns, and intense competition, the market presents significant opportunities. Areas like plant-based foods, functional beverages, and innovative food technologies are ripe for growth. Additionally, China’s role as a major importer of food and beverage products highlights its growing interest in international cuisines and flavors.

China’s F&B market is vast and diverse, covering the entire supply chain from raw material supply, production, and processing to final consumption. In recent years, the market size of China’s F&B industry has continued to expand, demonstrating strong growth momentum. In 2023, the market size reached approximately RMB 11.71 trillion (US$1.67 trillion), representing a year-on-year growth of 3.75 percent. According to Statista, the F&B market in China is projected to grow annually by 7.38 percent from 2024 to 2029. Meanwhile, China’s food imports have been increasing steadily in recent years.

The country’s food imports grew from US$49 billion in 2013 to US$139.62 billion in 2022, registering an annual growth rate of 12.3 percent. The country has become the world’s largest food importer of food.

China’s top six imported food categories included meat and processed meat, grains and products made with processed grains, aquatic products, fruits and fruit products, dairy products, and vegetable oil, with the import value of each category exceeding US$10 billion, the report said. Imports of all these categories accounted for 79.1 percent of China’s total food imports.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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