Andrew
Manyika Kangai
China Releases First Policy Document of the Year
China unveiled its “No. 1 Central Document” for 2022 on Tuesday, outlining key tasks to comprehensively push forward rural vitalisation this year. As the first policy statement released by China’s central authorities each year, the document is seen as an indicator of policy priorities. Work on agriculture and rural areas has been high on the agenda for 19 consecutive years since 2004. The document called for efforts to stabilise and increase agricultural production, steadily raise farmers’ income, and ensure stability in China’s rural areas to cope with the Covid-19 pandemic and other changes unseen in a century and promote sound economic and social development.
China To Intensify Tax and Fee Cuts
China’s Finance Ministry announced that China will intensify tax and fee cuts with targeted measures in 2022 to benefit market entities and bolster economic growth. Last year the country cut about 1,1 trillion yuan (about US$173,9 billion) of taxes and fees and this year larger scale tax and fee cuts are expected. The country will maintain appropriate levels of fiscal expenditure while giving priorities to key sectors including sci-tech breakthroughs, environmental protection, and major regional strategies.
China’s Nonferrous Metal Industry Sees Stable Growth
China’s nonferrous metal industry saw stable performance last year, with fixed-asset investment, profits and international competitiveness growing in the sector, according to the China Nonferrous Metals Industry Association. Last year, China produced over 64,54 million tonnes of 10 common types of nonferrous metals, up 5,4 percent from 2020. The country’s total imports and exports of nonferrous metals surged by 67,8 percent from 2020 to US$261,2 billion. Imports jumped 71 percent from 2020 to US$215,2 billion, while exports surged by 54, 6 percent to US$46,5 billion. The association forecasts that the nonferrous metal industry would face increasing downward pressure in the first quarter of this year but will stabilise in the latter half of the year. The country’s production volume is expected to grow 3 percent year-on-year in 2022.
China Moves to Guide Coal Prices
China’s top economic planner the National Development and Reform Commission (NDRC) is moving to improve the price formation mechanism in the coal market to guide price movements within a reasonable range as the country seeks to ensure stable energy supplies. In a circular released on Thursday, the NDRC put the relatively reasonable range for the medium- and long-term trading of 5,500 Kcal thermal coal at Qinhuangdao Port at 570 yuan (about US$90) to 770 yuan (about US$121,6 ) per tonne. In full considerations of logistics and production costs, the NDRC accordingly clarified the ex-mine prices for medium and long-term trading in major coal production areas including Shanxi, Shaanxi, and Inner Mongolia. The economic planner also pledged to enhance the country’s capacity to balance supply and demand, strengthen market supervision to prevent improper interventions and timely investigate illegal market practices.
China Boosts Support for Export Credit Insurance
China is moving to step up support for export credit insurance as part of its efforts to spur the stable growth of foreign trade. According to a circular jointly released by the Ministry of Commerce and the China Export & Credit Insurance Corporation, regulators should guide enterprises to make full use of export credit insurance policy tools and give full play to the role of export credit insurance in risk protection. The circular called for support to enterprises to deepen traditional export destinations and tap diversified markets, with a focus on providing credit insurance services for exports to countries along the Belt and Road, emerging markets, and free-trade zone partners.
Manyika Kangai helps African businesses realise the full potential of the vast opportunities China presents. He has over 15 years of experience facilitating and advising on China-Africa trade and investment deals.
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