SwedCham China Insights for the Week of August 28 - September 1 , 2023

Top news of the week:

China halves stamp duty on stock trading to invigorate capital market

August 28, 2023

China halved the 0.1 percent stamp duty on stock transactions effective on August 28 to invigorate the capital market and boost investor confidence, according to the Ministry of Finance and the State Taxation Administration. Cutting the stamp duty is conducive to reducing market transaction costs and easing the tax burden on investors, especially medium and small ones.

Premier Li Qiang met with US Secretary of Commerce Gina M. Raimondo

August 29, 2023

Premier Li Qiang met with US Secretary of Commerce Gina M. Raimondo in Beijing on the afternoon of August 29. Raimondo went to Beijing to discuss US-China commercial ties, challenges faced by US businesses and areas for potential cooperation. Before the meeting with Li Qiang, she had finished the meeting with Chinese Commerce Minister Wang Wentao on August 28.

Chinese FM holds talks with UK foreign secretary

August 30, 2023

Chinese Foreign Minister Wang Yi held talks with James Cleverly, the Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom, in Beijing on August 30. Wang said China has always believed that China-UK cooperation has global influence. Cleverly said that British enterprises look forward to more cooperation with China and exploring the Chinese market.

China’s manufacturing PMI up in August

August 31, 2023

The purchasing managers’ index (PMI) for China's manufacturing sector came in at 49.7 in August, up from 49.3 in July, according to the National Bureau of Statistics (NBS). A reading above 50 indicates expansion, while a reading below 50 reflects contraction. Among the 21 surveyed industries, 12 reported expansions in August, up from 10 a month earlier. There was an overall improvement in the manufacturing climate, a NBS statistician said.

PBOC and CBIRC issued notices to ease some borrowing rules to aid homebuyers

September 1, 2023

China's central bank and financial regulator issued notices to ease some borrowing rules to aid homebuyers, including lowering the existing mortgage rate for first-home buyers and the down payment ratio in some cities, in the latest efforts to revive a crisis-hit property market. Meanwhile, several cities recently eased mortgage curbs on top of a string of other support measures.

Insight of the week:

The United States Commerce Secretary Gina M. Raimondo kicked off a four-day visit to China on August 27. Chinese Commerce Minister Wang Wentao spent more than four hours discussing tangible solutions to boost commercial communication and collaboration. Raimondo’s China trip that ended on August 30 marked the resumption of economic and commercial dialogue between Washington and Beijing, offering some hope among the Chinese and American companies. Raimondo’s visit comes amid the most fractious US-China commercial relations. China accounted for 13.3% of U.S. goods imports during the first six months of this year, the lowest proportion in recent 20 years. Foreign direct investment into China tumbled 48% in 2022 from a year earlier and continues to decline sharply this year. This situation has brought great difficulties to enterprises in China and the United States.

Besides, China and the US have agreed to establish a multi-level communication mechanism to strengthen talks on economic and trade affairs. Chinese Commerce Minister Wang Wentao and US Commerce Secretary Gina Raimondo agreed to maintain regular communication, discuss important issues directly in a timely manner, and meet at least once a year. Among the measures agreed on August 28 was the creation of a “Commercial Issues Working Group” to allow U.S. and Chinese officials, and business representatives, to consult on ways to resolve trade and investment issues and promote US commercial interests in China. The group will meet twice a year, starting in early 2024. Raimondo rebuffed an appeal by Chinese leaders to reduce US export controls on some technology products, but the two governments agreed to have experts meet to discuss disputes over the protection of trade secrets.