SwedCham China Insights for the Week of 12 August – 16 August, 2024

SwedCham China Insights for August 12 –August 16

Content Provided by Kreab

Top news of the week:

China's CPI rises 0.5% in July; PPI move unchanged

12 August 2024

China's consumer price index (CPI), a main gauge of inflation, increased by 0.5% year on year in July, according to data released by the National Bureau of Statistics. On a monthly basis, CPI rose by 0.5% in July. In contrast, the producer price index (PPI) saw a year-on-year decline of 0.8% in July, maintaining the same rate of decline as in the previous month.

Macao to hold chief executive election on Oct 13

13 August 2024

The Macao SAR government announced that the election for its chief executive will be held on October 13. An administrative order announcing the date was published in an official gazette on August 12.

China to increase support for foreign businesses: official

14 August 2024

Ministry of Commerce will increase whole-process support for foreign-invested projects and will help to address issues facing foreign businesses, said Ling Ji, vice minister of commerce and deputy international trade representative, during a roundtable meeting for promoting major foreign-invested projects.

China's industrial output up 5.1% in July

15 August 2024

China's value-added industrial output, an important economic indicator, expanded 5.1% year on year in July, official data showed on August 15.

China to impose export controls on strategic metal antimony

16 August 2024

China will impose export controls on antimony and related products, with the measure taking effect on September 15, the Ministry of Commerce announced in an online notice on August 15.

Insight of the week:

On August 11, China unveiled a groundbreaking guideline for accelerating a comprehensive green transition in all economic and social sectors, the central government's first systematic deployment of its green and low-carbon goals, according to Xinhua.

The 33-point guideline released by the Central Committee of the Communist Party of China and the State Council, the country's cabinet, outlined key targets for 2030 related to the country's broad green transition. The main objectives aim to achieve remarkable results in the green evolution by 2030, and to basically establish a green, low-carbon and circular development economic system by 2035.

For the first time, the document proposed that the scale of the energy-conservation and environmental-protection industry will reach about 15 trillion yuan (US$2.09 trillion) by 2030. By 2030, the target is for non-fossil fuels (wind, solar, hydropower, offshore wind and coastal nuclear power) to constitute 25% of the total energy mix. To achieve this target, the guideline emphasized the need for the accelerated development of these energy sources, tailored to local conditions. The guideline also said that the annual use of major solid waste is projected at about 4.5 billion tons, achieved through measures such as advancing the resource recycling and remanufacturing industries to improve resource utilization. The document also highlighted three key actions -- adopting a comprehensive conservation strategy, encouraging green consumption and using technological innovation. In the document, China also called for international cooperation on the green transition by enhancing South-South cooperation and cooperation with neighboring countries, and for providing support to developing countries as much as China’s capability allows.

The guideline sets the tone for many aspects of China's green development, including the commitment to green growth, a comprehensive restructuring of the country's industrial system, broad application of green production methods and societal adoption of an eco-friendly lifestyle. Some experts noted that China's energy structure remains heavily reliant on coal and faces both internal and external challenges. At this critical juncture, the new guidelines with clear measures are crucial for the nation to achieve its carbon emissions targets.