More foreign companies invited to join in SOE reform

Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission, said on Saturday that China will welcome more foreign companies to participate in domestic SOE’s mixed-ownership reform. China also would encourage more SOEs to compete and cooperate with major firms of other countries in the global arena, he said at a press conference during the annual sessions of the 13th National People’s Congress and the 13th National Committee of the Chinese People’s Political Consultative Conference. China’s State-owned enterprises should learn more from world-class enterprises while engaging in more cooperation with those elite companies, Xiao said. Top companies worldwide are welcome to cooperate with Chinese enterprises through either mixed-ownership reform or other types of cooperation, as the country seeks to promote the strengths of its SOEs. China will deepen SOE reform and develop the mixed-ownership economy to promote world-class enterprises with global competitiveness, according to the 19th National Congress of the CPC in October. China so far has had three rounds of pilot central SOEs mixed-ownership reform, with some firms, such as the country’s telecom giant China Unicom, having introduced non-State investors. The results of the reform have been broadly positive, Xiao said. China will accelerate its SOE mixed-ownership reforms, Xiao added.

China's manufacturing development to create more jobs worldwide

A number of countries have claimed that China has been stealing manufacturing jobs from them, but the facts tell a different story -- China is creating jobs for them. Logically speaking, neither China nor any country else can "steal" jobs from the other countries, since each country creates its own job opportunities for its citizens basing on its economic development level. China always abides by international trade rules, no matter when it was economically underdeveloped or now that it has grown stronger. It has chosen to work with trade partners to seek win-win results. As Chinese manufacturing enterprises expand their global presence, they hire more and more local employees. As a case in point, Fuyao Group, China's leading manufacturer of automotive glass, had employed more than 2,000 people at a near-470,000-square-meter glass fabrication factory in Moraine, Ohio, by November 2017. The Fuyao facility, the largest Chinese investment project in Ohio's history, has been widely hailed as a silver lining for the local community, as the closure of General Motor's assembly plant in 2008 wiped out thousands of jobs. With Fuyao's further expansion in the United States, the company expects the employment number to grow by thousands. Chinese companies invested over $20 billion in the nine US states in the midwest region as of 2016, creating over 45,000 jobs, according to China General Chamber of Commerce-USA. In Latin America, Chinese enterprises created 1.8 million jobs between 1995 and 2016, according to data from the International Labor Organization. The investment in sectors like food, communication, and renewable energy helped improve local infrastructure and consumption. Through the Belt and Road Initiative proposed in 2013, China was adding jobs to Asian, European and African countries along the routes, while promoting infrastructure, trade, financial and people-to-people connectivity along and beyond the ancient Silk Road trade routes. Under the Initiative, Chinese enterprises have invested roughly $50 billion and helped build 75 economic and trade cooperation zones in 24 countries, generating over 209,000 jobs by October 2017, according to the Ministry of Commerce. Looking ahead, more jobs are expected to be created by Chinese companies worldwide as Premier Li Keqiang said Monday in a Government Work Report that China will expand industrial capacity cooperation with other countries, which enables Chinese manufacturing and services to go global. Besides creating jobs overseas, China is also attracting many talented people from abroad to work on its territory for the country's manufacturing upgrading, given high-tech manufacturing has achieved an average annual increase of 11.7 percent during the past five years. In 2016 alone, 1,576 foreigners in various careers became permanent residents in China, an increase of 163 percent over the previous year, according to the Ministry of Public Security The country will surely solicit more talents from both home and abroad to build the country into a leader in manufacturing, given the government plans to promote the development of integrated circuits, 5G mobile communications, aircraft engines, new-energy vehicles, new materials and equipment manufacturing, among others.

Foreign investors seek enhanced cooperation with Chinese partners

With China deepening its opening-up strategy, foreign investors in various industries are seeking enhanced development opportunities with domestic partners in China, not only just selling products, but more on technology cooperation. At the same time, domestic companies are also eager to sharpen their competitive edge and are no longer looking for merely capital cooperation but to gain higher production capacity from the cooperation with foreign partners, said Zhao Ying, a researcher at the Beijing-based Institute of Industrial Economics. "Under the new normal, more foreign companies are pouring effort into technology investment and other areas rather than selling products." Take Germany's Siemens AG for instance. The industrial conglomerate partnered in November with Shanghai Hytera Co, a communication equipment provider, to provide industrial solutions ranging from consultancy services to software. "Such partnerships are aimed at helping local enterprises with digital transformation," said Wang Haibin, executive vice-president of Siemens China. "Siemens will continue to leverage advanced technologies in electrification, automation and digitalization to create value for Chinese clients." In recent years, Siemens has provided consultation and solutions for a number of Chinese companies such as HBIS Group, Baowu Group, Jinyu Biotechnology, Cathay Industrial Biotech, Yunnan Baiyao and Jomoo to help them go through the digital upgrading. Robert Bosch and Baidu, a Chinese internet giant, have also signed a strategic agreement, as Bosch was willing to get involved in Baidu's Apollo project and provide open software for the development of automated vehicles. UPM Specialty Papers, a Finland-based forest industry firm, also observed the shift in the demand from its Chinese market as its clients have been seeking deeper cooperation in environmental aspects. "Over the years, China's rising living standards have driven and continue to drive demand for quality paper products," said Mary Ma, stakeholder relations director at the company's specialty paper business. "We have seen an increased importance attached to environmental protection and public health. Both the government and improved public environmental awareness are encouraging people to make a responsible choice. We see great opportunities in using our expertise to transform how paper is made and consumed in China," she said. "UPM's growth in China will continue to benefit from China's increasingly business-friendly and open environment." On the consumption side, British luxury retailer The British House also recognized the large market potential. The retailer launched operations in Beijing last year and has brought in over 100 brands from the United Kingdom. "For many brands, including the luxury department store Harrods, it is the first time to enter the Chinese market," said Lynne Hua, managing director for The British House in China. "We think the investment climate in China is becoming more open." She also suggested that foreign investors need to adapt to the Chinese culture and pace of work, as the Chinese companies can be quick in decision-making. She also said local governments should provide more guidance and support for the companies that have just entered the market.

China growth rate to 'stay above 6.5 percent' mark

China will likely maintain a steady growth rate of above 6.5 percent in two years, with economic deleveraging and preventing financial risks top priorities for the government, a report said. The report, jointly released by Xiamen University and business newspaper Economic Information Daily, forecast that China will achieve a growth rate of 6.73 percent this year and will see slightly slower growth of 6.6 percent in 2019. The country will also see mild growth in inflation with the consumer price index, a main gauge of inflation, reaching 2.13 percent. The policymakers are capable of keeping prices within a reasonable range and there is no major inflation risk in the country, the report said. "China's economy will be transformed from old to new by involving innovation and supporting policies, by how structural transformation can be promoted in more places, how new technologies, industries and formats can be continuously conducted and changed in various sectors," said Zhang Yansheng, secretary-general of the academic committee of the National Development and Reform Commission. "If we can manage to maintain high investment activities in innovation activities in 10 or 20 years and the stocks have accumulated to a certain extent, the world's top universities and more competitive industries will surely emerge here," he said. China's economic growth beat forecasts to reach 6.9 percent year-on-year in 2017, marking the first acceleration since 2010 despite financial regulatory tightening and measures against pollution that affect growth. Thanks to global economic recovery and rebounding demand for goods in 2017, the report predicted China's export volume would grow by 9.65 percent in 2018, about 1.75 percentage points higher from the previous year. The report also urged the government to pay more attention to consumption that can result in investment, as well as boost sustainable industrial production. "Consumption drives economic growth by leading investment. Economic growth can only be stimulated if consumption can be expanded to boost industrial production," said Wang Tongsan, an economist with the Chinese Academy of Social Sciences, a government think tank. Li Jianfa, professor and vice-president of Xiamen University, said despite the steady growth of China's economy and benefits from rising foreign goods demand in 2017, the country still needs to resolve issues like falling growth rate of fixed assets, unbalanced investment structure and declining investment efficiency. Even though the steady trend of industrial production can be maintained, Li said there has been no obvious increase in the growth rate of private investment. The government still has to rely on infrastructure investment and strengthen investment in State-owned enterprises at all levels in relevant monopolies.

China can achieve sustainable growth through reform: World Bank

China can achieve more inclusive and sustainable development with coordinated reforms that maximize development impact and address its development challenges, according to a report from the World Bank Group. China's growth has been slowing to a "new normal" and economic rebalancing is underway. Managing this transition in a sustainable manner will be critical to achieving the country's development goals, the report "Towards a More Inclusive and Sustainable Development" said. Policy to increase productivity-led growth through innovation, market competition and the private sector will support these goals, said the report. "China's remarkable progress in reducing extreme poverty has significantly contributed to the decline in global poverty," noted Hoon S. Soh, World Bank Program Leader for economic policy for China. The official said the World Bank Group will continue to support China's goals to eliminate extreme poverty and ensure inclusive and sustainable growth. Despite the rapid reduction of extreme poverty, China's remaining poor population remains large. The report projected continued progress towards eliminating extreme poverty with the extreme poverty rate to fall below one percent in 2018, based on the international poverty line of PPP 1.90 U.S. dollars per day. The challenge for China will be to target assistance to the remaining poor while paying attention to those who are vulnerable to falling into poverty, the report said, adding further improvements to the social security net would help. Although inequality has been steadily declining since 2008, more can be done to address inequality, the report said, suggesting reforms of the intergovernmental fiscal system and the household registration system. Other recommendations for China include a greater reliance on market mechanisms and mobilizing more private financing to boost green innovation and reduce environmental costs and waste. The World Bank Group undertakes a Systematic Country Diagnostic for all its client countries to identify key challenges and opportunities in ending poverty and boosting shared prosperity. The Diagnostic forms the basis for the Country Partnership Framework, which determines the World Bank Group's activities in a country over a four to six year period.

Happy Spring Festival

Filled with the harvest joy, the glory of success, we have gone from 2017, the period which we work hard together, and striding into the next process-2018. Review the past, we were with deep gratitude; looking the future path, we are with bright future ambitions. On the occasion of ring the old year out and the new year in, on behalf of all my colleagues at Tanikawa Technology Co., Ltd., to offer our sincere New Year's blessing to all friends who have always supported us, and express our sincere respect and heartfelt gratitude! And extend the New Year's congratulations and cordial greetings to everyone and your family! In the past 8 years, Tanikawa hard works in the piece of fertile land China, growing out of nothing, expanding from a small to a large enterprise, surviving in the competition, innovating and developing. I am also honored to be the founder of the company, participated in and witnessed the fact that Tanikawa's team has grown from 5 people to a technology service group with more than 240 colleagues and 14 local companies, leading the investment promotion industry. The flourishing Tanikawa, the any progress what we made were inseparated from the support of the community and customers, also cannot be separated from everyone's effort in Tanikawa. At the starting point of the new journey, we are thankful and striving to repay every support. We look forward to insight into the future trends and embracing the development and transformation, we look forward to understanding our customers deeply and providing the best services, we also look forward to creating new impetus for the regional economy development and contributing new energy to social and economic development through technology, information and services! When you have the passion like the first love and religious will, you may accomplish your ambition on the large extent! The bell of the New Year is going to be knocked. We must continue our efforts, work hard with passion, never forget the beginning of our mind, and keep in mind the mission, carry out the service concept of "thinking for the clients, using for clients, serving for clients" and adhering to the principle of "Gather resources like a valley, steady and everlasting"，we need carry out "innovation, implementation, standardization and progress" as our core value, and will provide a platform for the company to continue its healthy growth and strive to create a full industrial chain so that can help enterprises to site selection scientifically, develop efficiently and assist the government in developing industries and optimizing the environment. The ultimate realization is the integration of technology, information and services, and cover our service to every city in the world. Drink from the source, through the development of the past 8 years, we know that you have given us unparalleled power and confidence. Every progress and success made by Tanikawa cannot be separated from your concern, trust, support and participation. Your understanding and trust are the best motivation for our progress. Your attention and support are the source of our growth. Your every participation and every suggestion makes us excited and stimulate us to make continuous progress. Because of you, we have everlasting confidence and power in our future journey, because of you, our career will be developmental and prosperous. Through the past eight years, be grateful to those who accompanies with Tanikawa, and the next eight years, lay the beginning mind to our heart, Tanikawa will continue to make progress with you. Happy Spring Festival, and all the best!