China Digest

Economics and policy from China’s newspapers

Wednesday January 11, 2017

China to expand capacity cuts to four more industries in 2017

China’s plan to expand coal and steel capacity reductions to the cement, glass, aluminum and shipping industries in 2017 will influence commodity prices, Securities Daily reported quoting an analyst from Huangchuang Securities. The National Development and Reform Commission yesterday said those industries will face capacity cuts to reduce pollution, reported China Economic Net.

Government predicts tame inflation in 2017

Prices will remain steady in 2017 and inflation pressure won’t be a main concern for the government, Xinhua reported on Tuesday evening, quoting Mao Shengyong, spokesperson at the National Bureau of Statistics.

China to reduce taxes on businesses, says NDRC

China reduced business taxes by as much as 550 billion yuan (US$79.5 billion) last year and this policy will continue in 2017 to attract foreign and other investment, Sina Finance reported, quoting Xu Shaoshi, Director of China’s National Development and Reform Commission in a press conference.

China’s R&D spending reached 1.54 trillion yuan last year

Total spending in China on research and development in 2016 is estimated to have reached 1.54 trillion yuan (US$216.64 billion), accounting for 2.1% of GDP, according to a working conference of the Technology Ministry on Tuesday, reported by Economic Information Daily. Private enterprises accounted for 78% of the spending. The report didn’t say if the R&D investment had risen or fallen from the previous year.

China starts six-month campaign to improve steel quality

China’s National Development and Reform Commission has started a six-month campaign to improve the quality of steel produced throughout the country, Caixin reported citing NDRC Deputy Director Lin Nianxiu. The commission will target steel mills that lack proper refining equipment.

PPP projects start securitization of infrastructure contracts

Public-private partnerships in infrastructure will start securitizing the projects and packaging them for sale to investors, Shanghai Securities Journal reported citing the website of the National Development and Reform Commission.

Expect tighter regulations in financial industry this year

Financial industry regulations will be tight end this year to target illegal fundraising, reduce bad loans and liquidity risk, as well as monitor local governments’ financing platforms and internet financing, said Shang Fulin, the director of the China Banking Regulatory Commission, reported Caixin.