China reports music industry growth

China's music industry saw year-on-year growth of 7.8 percent in its output value in 2016, exceeding 325 billion yuan (49 billion U.S. dollars), according to an industry report. The report, compiled by the music industry committee of China Audio-Video and Digital Publishing Association, includes performances of records, shows, digital music, copyright business, books, musical instruments, training and sound equipment. Seen as a new growth engine for the industry, the digital music business achieved a value of nearly 53 billion yuan, up 6.2 percent year-on-year. The value of digital music available on PCs or mobile devices surged by nearly 40 percent, hitting 14.3 billion yuan, thanks to rapid growth of paying users. The number of paying users of online music has more than doubled compared with 2012. In May, the central government listed the development of the music industry as a major cultural project in a work plan for cultural development and reforms between 2016 and 2020.

China sets timeline to develop industrial internet

China has set a clear timetable for integration of industry and the internet, or the "industrial Internet," a senior official said. By 2025, construction of industrial internet infrastructure network covering all regions and sectors will be basically complete, said Chen Zhaoxiong, vice minister of industry and information technology (MIIT). By 2035, China will lead the world in key sectors of the industrial Internet field. By the middle of the century, China should be among the top countries in terms of overall strength of industrial Internet. "The industrial internet is a new concept that matters to the whole world," said Han Xia, an MIIT official. "Compared with developed countries, China still lags behind." A State Council executive meeting Monday approved guidelines on developing the industrial internet, promising streamlined administration and fiscal support. Market access will be widened, and companies encouraged to seek private funding. Businesses must improve security against cyber attacks, while specialist network security systems for key manufacturing sectors such as automobiles, aviation and aerospace will be put in place. In line with overall economic restructuring, billions of yuan are expected to flow into technology projects related to the "Made in China 2025" strategy, a blueprint for improving the manufacturing sector.

Alibaba’s logistics arm helps Beats improve sales during upcoming online shopping craze

Beats audio products are likely to see bigger sales during the upcoming Chinese online shopping festival thanks to the company’s cooperation with Cainiao, the logistics arm of China’s e-commerce giant Alibaba. Based on presale data and artificial intelligence prediction, Cainiao has transported the hottest products of the brand to warehouses in more than 20 major cities ahead of the shopping craze that begins on Nov. 11 in a bid to further shorten delivery time. Turnover of the Beats online store on Tmall, Alibaba’s e-commerce platform, is expected to increase during the shopping festival, but the operating officer of the store, Wu Miaoyu, does not see logistics as an issue. The pre-allocation of the Beats products covers all the first- and second-tier cities, said Sun Wei, an employee of the Beats Tmall store. According to Sun, Cainiao’s smart allocation system can realize a 99.99% accuracy rate this year, greatly reducing the number of mis-deliveries. In addition, through artificial intelligence, Cainiao will, for the first time, realize real-time prediction of total shipment and transport capacity in order to avoid the busiest express delivery companies and thus possible delays. After Beats’ cooperation with Cainiao, it only takes less than 24 hours for the customers to receive their orders. On a recent promotion day, sales of Beats headsets on the Tmall store were several times higher than normal. However, Cainiao helped the store send out 70% of the orders on the same day, and 80% of the orders were received within 2 days. “This was never imaginable before,” Wu said. Faster delivery will improve the shopping experience of Beats followers, Wu noted, adding that it also means lower cost and higher efficiency for the merchants.

Shanghai to hold the first China International Import Expo next year

Shanghai’s executive vice mayor Zhou Bo said today the city will go all out to ensure the success of the first China International Import Expo to be held next year by enhancing cooperation among government departments and other supportive services. Shanghai has established a special committee for the Import Expo, which is chaired by municipal leaders of Shanghai and involves 36 line departments covering commerce, public security, public finance, transportation, foreign affairs, media, customs, quarantine and inspection, trade promotion as well as the National Exhibition and Convention Center, Zhou said at a briefing in Beijing. The expo, which will be held between November 5 and 10 next year, was initiated by Chinese President Xi Jinping in May this year as a measure to open up the domestic market to the rest of the world. The expo will host traders of both goods and services in areas including advanced equipment, electronics, automobile, consumer goods, food, medical instruments, technology services, design, education, and tourism. The expo will also host a forum to promote globalization and an open global economy. Zhou said Shanghai will also step up security, transportation, and medical services to ensure success of the event. Authorities will accelerate the completion of transportation infrastructure in key areas surrounding the NECC, which includes the construction of 13 key roads, metro lines and connecting channels. Operation time of metro and shuttle bus system will also be extended according to actual needs, Zhou added. In the mean time, other support in areas like accommodation, urban exterior, electricity, gas and water supply, sewage, telecommunication and weather forecast will be intensified. He said Shanghai will take advantages of reforms in the free trade zone to offer facilitation for the entry of goods from all over the world into the Chinese market. “Shanghai will mobilize the whole city to ensure all the necessary support will be delivered in a timely fashion and to ensure a full success of the first Import Expo,” Zhou told reporters.

Xinjiang sees fast growth in service industry investment

Xinjiang Uygur Autonomous Region has attracted over 436 billion yuan in investment so far this year, and investment in the service industry has posted fast growth, the regional commerce bureau said. From January to September this year, a total of 436.6 billion yuan, (about 65.85 billion U.S. dollars) has been invested in the region, 83.72 percent of the annual target, the bureau said. About 57 percent of the investment is for new projects, said Wang Wenming, deputy director of the bureau. Investment in industries such as culture, tourism, logistics and financial services has grown fast, he added.

Foreign investment law enactment progresses

The enactment of China's new foreign investment law is progressing well, as the draft has been submitted for further discussion by the central government, the Ministry of Commerce announced. The move illustrated the country's desire to accelerate the modernization of its market access system, as well as strengthen the use of fair and transparent market principles. Gao Feng, spokesman for the ministry, said the law is expected to serve as a basic guideline for the reform of regulations on foreign direct investment. "The government will protect the legitimate rights of foreign investors and foster a stable, transparent and law-based business environment," Gao said at a regular news conference in Beijing. The ministry will collaborate with the Legislative Affairs Office of the State Council to speed up the lawmaking pace in the next stage, he added. For the past several years, China has been ramping up efforts to expand investment access and unify laws and regulations while applying stable, transparent and predictable policies to foreign investment. The government has already introduced a negative-list approach in 11 pilot free trade zones to simplify the process for foreign investors in setting up their business presence in China. The negative list specifies investment sectors that are off-limits to foreign investors and opens industries not on the list, providing equal treating to overseas and Chinese companies. Gao said the ministry will replicate nationwide the negative-list approach used in its free trade zones. The negative list covers 15 sectors such as mining, leasing and financing. Among the sectors, 40 categories and 95 special management measures are included. Wei Jianguo, vice-president of the China Center for International Economic Exchanges, said the move provides a consistent national treatment for market entrance and reflects a major step forward in liberalizing the Chinese market for overseas investors. Researchers at accounting firm PricewaterhouseCoopers said in a report that the adoption of a negative list in the market access system apparently makes it easy for companies to invest in businesses that are neither prohibited nor have limited access. "The approach also strengthens post-investment supervision and enables sharing and publication of information.... Not only those businesses in FTZs will be affected, companies from outside of FTZs will sooner or later be affected," said the report. In the first nine months, China's FDI inflows grew by 1.6 percent year-on-year, compared with a 0.2 percent drop between January and August, according to the Ministry of Commerce. Zhang Jianping, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said while there were concerns about withdrawal of foreign investment in the past, the FDI structure has improved. "The FDI inflow is still growing, which can offset the outflows."