Andrew
Manyika Kangai
China’s Economic Hub Goes into Temporary Lockdown
Shanghai, China’s economic hub, with a population of over 24 million and home to more than 60 000 foreign-funded firms and over 6 000 financial institutions, has enforced a temporary lockdown from March 28 to April 5 to deal with an increase in Covid-19 infections. On Tuesday, the city reported 326 locally transmitted Covid-19 cases, along with 5 656 local asymptomatic cases. The first batch of testing will be in Puxi from April 1 and will test 16 million people in 12 districts. Emergency supply of vegetables and other goods has been prepared and medical resources have been mobilised. An emergency hotline has also been set up for citizens. Businesses in Shanghai that lease property from state-owned enterprises (SOEs) and engage in production and other business activities will be exempt from paying rent for three months this year. Businesses that lease property from SOEs and are in districts and towns that have been listed as high risk and have been seriously affected by the implementation of Covid-19 prevention requirements, will be exempt from paying rent for an additional three months, giving them a total six-month rent waiver this year.
China Reduces Tax for Parents
China has announced tax-relief policies for parents rearing children under 3-years-old, according to a State Council circular issued on Monday. Starting on January 1, 2022, the individual taxable income of such parents can be reduced by a total of 1 000 yuan (US$157) per month for each child. The deduction can be applied in full by one parent or can be split evenly. The policy is the implementation of a decision on improving birth policies to promote long-term and balanced population development, which was adopted by the Communist Party of China Central Committee and the State Council last year in July.
China Steps Up Financial Support for Rural Revitalisation
China will increase financial support for advancing rural revitalisation to help bolster macro-economic stability, according to a central bank guideline released on Wednesday. The People’s Bank of China urged banks and other financial institutions to ensure reliable financial services for grain production and more credit support to help secure the supply of key agriculture products like soyabean, oil crops and non-staple foods. The guideline called for better financial services in China’s rural areas to support sustainable industrial development and improve infrastructure and living conditions. China has vowed to optimise financial services to advance rural revitalisation and provide more support for qualified local financial institutions regarding relending, rediscounts and required reserves in 2022.
China’s Daily Crude Steel Output Up
China’s major steel mills saw their average daily output of crude steel stand at about 2,1 million tonnes in mid-March, according to data released by the China Iron and Steel Association. The daily output marked an increase of 4,61 percent from that recorded in early March. Major steel producers churned out 20,5 million tonnes of crude steel in mid-March. During this period, daily production of pig iron rose 3,1 percent from early March, while that of rolled steel gained 5,2 percent.
China’s NEV Production and Sales Soar
Production and sales of New Energy Vehicles (NEVs) in China skyrocketed in the first two months of the year despite raw material price hikes and the raging Covid-19 pandemic, according to a report released by the China Academy of Information and Communications Technology. In the first two months of the year, about 820 000 NEVs were produced, surging 1,6 times year-on-year. In that period, the sales of NEVs reached about 765 000 vehicles, increasing 1,5 times from last year. The report also noted that the NEV market penetration rate stood at 17,9 percent in that period. China-made NEVs have also become more popular among overseas consumers with exports rising 381,7 percent year-on-year to about 105 000 vehicles.
Manyika Kangai helps African businesses realise the full potential of the vast opportunities China presents. He has over 15 years experience facilitating and advising on China-Africa trade and investment deals. Feedback: +27743487997/
Online Reporter