The five things that happened in China this week 

Manyika Kangai 

China opposes US adding firms to ‘unverified list’

China’s Ministry of Commerce on Tuesday expressed opposition to the US adding 33 Chinese companies to its “unverified list” for export controls, requiring US exporters to go through more procedures before shipping goods to the entities. The entities included listed companies, universities as well as aerospace and electronics suppliers. China is urging the United States to “correct its wrongdoing and return to the right track of win-win cooperation” and has stated that “this is not in the interests of China, nor those of the United States or the whole world.”

China excludes affordable rental housing from property credit control

According to a statement jointly issued by China’s central bank, the People’s Bank of China (PBOC), and the China Banking and Insurance Regulatory Commission, China will not include affordable rental housing loans in the management system that sets caps on real estate loans. Financial institutions should scale up support for affordable rental housing in accordance with the law while managing risks and pursuing sustained development. To guard its financial system against risks, China has implemented the management system for property loans since January 1, 2021, imposing upper limits on outstanding real estate loans and mortgages for lenders. The move is expected to increase loan issuances for affordable rental housing projects and aims to further improve the country’s housing support system.

China ready to stockpile pork to support prices

China’s top economic planner, the National Development and Reform Commission, said it is ready to stockpile pork, the country’s staple meat, for state reserves, as an index monitoring the pork price triggered a second-level warning. The index, the national average of pork prices against grain prices, has stayed in the second-level warning range for excessive drops for a third consecutive week. According to a work plan for stabilising the pork market, China has introduced a three-level early-warning system to raise alarm for excessive ups and downs in hog prices. The commission said it will work with relevant authorities to start buying pork for state reserves when necessary and guide local governments to start the pork stockpiling work.

China’s steel sector aims for high-quality growth

According to a development guideline jointly released by the Ministry of Industry and Information Technology, National Development and Reform Commission, and the Ministry of Ecology and Environment, China’s steel industry aims to achieve high-quality growth featuring more advanced technology and equipment, stable resources supply, higher level of intelligence, enhanced global competitiveness and reduced emissions by 2025. More than 30 smart factories will be built by 2025 and electric furnace steel production will be increased to over 15 percent of China’s total crude steel output by then, amid efforts to further optimise the industrial structure. To reach the 2030 goal of carbon emissions peaking, China will upgrade over 80 percent of steel production capacity to achieve ultra-low emissions, cut overall energy consumption per tonne of steel by more than 2 percent, and reduce water consumption intensity by more than 10 percent.

China approves more cross-border e-commerce pilot zones

China’s State Council has approved setting up more cross-border e-commerce pilot zones in 27 cities and regions as the government seeks to stabilise foreign trade and foreign investments. China’s cross-border e-commerce has been expanding much faster than overall foreign trade, and its share in overall foreign trade has gone up significantly. The new business model has become a vibrant force driving China’s foreign trade growth. Official data shows that China’s total trade in goods moved up another notch in 2021, exceeding 6 US$6 trillion for the first time, despite the pandemic continuing to weigh on global trade.

  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.  Feedback: +27743487997/www.muvambi-sa.co.za