China's property development investment sees faster growth

China's investment in property development expanded 9.9 percent year on year in the first two months of this year, up from 7 percent for 2017, new data showed Wednesday. Total investment in the first two months stood at 1.08 trillion yuan, the NBS said in a statement on its website. Investment in residential housing registered an increase of 12.3 percent from the same period last year and accounted for 68.1 percent of the total. The country began construction on 177.46 million square meters of housing, up 2.9 percent year on year. Commercial housing sales measured by floor area rose 4.1 percent in the first two months, down from 7.7 percent for 2017. Housing sales value rose 15.3 percent, up from 13.7 percent for 2017. At the end of February, about 585 million square meters of housing was unsold in China, down by 4.55 million square meters or 0.8 percent from the end of last year. This year's government work report reiterated that "houses are for living in, not for speculation." "We will support people in buying homes for personal use, and develop the housing rental market and shared ownership housing," it said.

Innovation-driven economy gets new momentum

China's innovation-driven economy received new momentum, as an additional 12 high-tech industrial development zones have been promoted to national level, Economic Information Daily reported Friday. After the approval of the new national-level high-tech zones in areas such as Jinzhou, Zhanjiang, Huainan and Rongchang by the State Council, the number of high-tech industrial development zones in China has increased to 168. As a pillar and engine of regional innovation development, the research and development input of 156 national high-tech zones, together with 17 independent innovation demonstration zones, accounted for 44.3 percent of total R&D input in the country for 2017. The sales revenue of new products accounted for 31.5 percent of the nation's total, and labor productivity in the zones was over three times the national average last year. National high-tech industrial development zones, focused on replacing old growth drivers with new ones and optimizing industrial structures, have become important incubators for new economies. Diversified high-tech industries in areas such as artificial intelligence, quantum communication and new materials are booming, with an increasing number of new economic growth points in the national high-tech industrial zones. About 104 of 131 unicorn companies – startups valued at more than $1 billion – came from national zones as counted in 2016. Beijing's Zhongguancun, boasting 65 unicorn companies, has become the second-largest home for the world's unicorn companies, next to Silicon Valley in the US. The first national high-tech industrial zone was established in Beijing in 1988, and the number is expected to reach 240 by 2020, according to the 13th Five Year Plan (2016-20) for national high-tech industrial development zones.

China to reform national, local taxation systems

 China plans to reform its separate national and local taxation systems by integrating their offices at and below the provincial level, according to a plan submitted to the national legislature on Tuesday. The integrated offices will be responsible for collection of all items of taxes and non-tax revenue collection and administration, according to the plan on institutional restructuring of the State Council, or the cabinet, which was tabled to the first session of the 13th National People's Congress for deliberation. The State Administration of Taxation will be these offices' main regulator, coupled with administration from local governments, the plan said.

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.