China's new energy vehicle industry on fast lane for growth

China's new energy vehicle (NEV) industry has seen rapid growth in the past few years, with growing sales and an improved industry ecosystem, according to an industry association.Production and sales of NEVs have surpassed 1 million units so far, with an annual growth rate of over 200 percent, said Dong Yang, vice director of China Association of Automobile Manufacturers (CAAM).With more than 50 percent of the world's NEV production, sales, and ownership in 2016, China is now a global leader in NEV development.Domestic battery makers, motor producers, and other enterprises in the supply chain have become internationally significant suppliers, with more than 70 percent of the global shipments of NEV batteries coming from China, Dong said.Public charging facilities within China have surpassed 180,000, with their coverage increasing in residential areas, along highways, and in other public space.Companies operating NEV charging have also emerged with innovative business models, while favorable government policies have made NEVs cheaper and the licensing procedures simpler, he said.Some 507,000 NEVs were sold in China last year, the most in the world for a second year and up 53 percent from 2015, CAAM data showed.According to an official plan on auto industry development, China will see NEV output and sales hit two million annually by 2020, about four times the current level.

Renewable energy vital for China’s development

From June 17 to 23, 2017, Qinghai Province powered the entire province by renewable energy for 168 hours non-stop, breaking Portugal's record of 107 hours last year. A great step for China's ongoing transition to clean energy, the achievement will surely boost the consumption of renewable energy and enhance further development in this regard. China's clean energy push is among the key projects to implement its five major concepts of development: innovation, coordination, green development, opening-up, and sharing benefits.Innovation Leads the WayA few days later in Dalian, Chairman of State Grid Corporation of China (SGCC) Shu Yinbiao revealed at the 11th Annual Meeting of the New Champions (also known as Summer Davos Forum) that the company's technology on balancing the fluctuation of the contribution from renewable energy effectively guaranteed the latest endeavor in Qinghai.One of the Fortune 500 enterprises and the world's largest public utility company, SGCC attaches significant importance on developing new technologies in its participation in energy transition.With an abundance of coal mines, China heavily relies on thermal power which generates over 70 percent of the nation's electricity. However, environmental problems brought about by fossil fuel can no longer be overlooked. Besides, non-renewable energy hardly meets the demands of sustainable development. Aiming at shifting the country's energy mix and enhancing green development, SGCC has been striving to create innovative technologies and achievements have been made in areas such as ultra-high-voltage (UHV) transmission and smart grids.UHV transmission technology, with complete independent intellectual property rights owned by SGCC, is the world's most advanced transmission technology to transmit electrical power across long distances with the highest voltage and the lowest loss. For instance, in China, hydropower can be transmitted through this technology from the southwestern region, where there are energy load centers but energy consumption is less, to the more densely populated eastern part to reduce the consumption of coal. In addition to boosting energy transformation and optimizing the energy mix at home, the UHV transmission technology has been exported to play a fundamental role in building up a global energy network.Like China, Brazil's energy consumption centers are far from where the resources are located. The Amazon region in the north boasts abundant water resources. Nevertheless, consumption centers like Sao Paulo and Rio de Janeiro are more than 2,000 kilometers away in the south. UHV transmission technology turns out to be an ideal choice in this case. Today, UHV transmission projects jointly built by SGCC and its Brazilian counterparts in the Amazon basin are under construction and are expected to greatly power the development of energy-hungry southern areas. In addition, Shu Yinbiao evinced SGCC's interest in taking part in facilitating the use of solar energy from the Sahara Desert. In the near future, UHV transmission technology will help supply Europe with electricity from renewable sources in the Sahara, where the potential for solar power is seemingly limitless.Technology innovation not only leads the way of establishing a clean energy grid, but also in the field of circular economy. Making traditional distilled Chinese white liquor usually requires a lot of energy, which causes pollution. Technologically supported by China Energy Conservation and Environmental Protection Group (CECEP), China's leading liquor producer Kwei-chow Moutai Group built a recycling industrial park in a move to reuse residues from its manufacturing process. According to Liu Dashan, chairman of CECEP, residues are developed as methane and organic fertilizer in this park. The former may supply power to the liquor plant while the latter can be used to grow sorghum – the main ingredient of Moutai, shaping a circular recycling system.One of the Fortune 500 enterprises and the world's largest public utility company, SGCC attaches significant importance on developing new technologies in its participation in energy transition.With an abundance of coal mines, China heavily relies on thermal power which generates over 70 percent of the nation's electricity. However, environmental problems brought about by fossil fuel can no longer be overlooked. Besides, non-renewable energy hardly meets the demands of sustainable development. Aiming at shifting the country's energy mix and enhancing green development, SGCC has been striving to create innovative technologies and achievements have been made in areas such as ultra-high-voltage (UHV) transmission and smart grids.UHV transmission technology, with complete independent intellectual property rights owned by SGCC, is the world's most advanced transmission technology to transmit electrical power across long distances with the highest voltage and the lowest loss. For instance, in China, hydropower can be transmitted through this technology from the southwestern region, where there are energy load centers but energy consumption is less, to the more densely populated eastern part to reduce the consumption of coal. In addition to boosting energy transformation and optimizing the energy mix at home, the UHV transmission technology has been exported to play a fundamental role in building up a global energy network.Like China, Brazil's energy consumption centers are far from where the resources are located. The Amazon region in the north boasts abundant water resources. Nevertheless, consumption centers like Sao Paulo and Rio de Janeiro are more than 2,000 kilometers away in the south. UHV transmission technology turns out to be an ideal choice in this case. Today, UHV transmission projects jointly built by SGCC and its Brazilian counterparts in the Amazon basin are under construction and are expected to greatly power the development of energy-hungry southern areas. In addition, Shu Yinbiao evinced SGCC's interest in taking part in facilitating the use of solar energy from the Sahara Desert. In the near future, UHV transmission technology will help supply Europe with electricity from renewable sources in the Sahara, where the potential for solar power is seemingly limitless.Technology innovation not only leads the way of establishing a clean energy grid, but also in the field of circular economy. Making traditional distilled Chinese white liquor usually requires a lot of energy, which causes pollution. Technologically supported by China Energy Conservation and Environmental Protection Group (CECEP), China's leading liquor producer Kwei-chow Moutai Group built a recycling industrial park in a move to reuse residues from its manufacturing process. According to Liu Dashan, chairman of CECEP, residues are developed as methane and organic fertilizer in this park. The former may supply power to the liquor plant while the latter can be used to grow sorghum – the main ingredient of Moutai, shaping a circular recycling system.In recent years, clean technologies have been progressing rapidly in China where sustainable development is set as a priority. Outdated capacities such as iron and steel, coal power, and cement are being phased out to combat environmental pollution. By 2018, the Beijing-Tianjin-Hebei area is projected to entirely replace coal with electricity for heating purposes. While benefitting local residents with less expensive energy and a self-controlled heating system, this measure is expected to curb prolonged haze pollution in the region.On top of that, China has initiated clean water programs including wastewater treatment, water reclamation, and building sponge cities. Moreover, the market share of new energy vehicles is expanding all over the country. In view of that, "SGCC has developed a smart electric vehicle (EV) platform – the world's largest of its kind so far – to which 160,000 charging stations and more than one million EVs across China have been connected," said Shu Yinbiao.New technologies are constantly coming out on China's way to green development. Chairman and CEO of Johnson Controls Alex Molinaroli attributed the achievements China has made to innovation, cooperation, and sharing. "China is moving from an importer of technologies to a developer of technologies for the rest of the world," he asserted. His opinion was shared by China's Minister of Science and Technology Wan Gang by pointing out China is leading clean technology development in the world. Wan Gang added that the country has gained valuable experience in this field to share and is open to global cooperation to learn from good practices. On the other hand, in Liu Dashan's perspective, the transition to clean energy offers advanced technologies that green development requires while extending a positive influence over industrialization and commercialization of environmental protection.Embracing Changes with CourageUsing clean energy has been on the rise in China in recent years as the nation stresses more on an integrated economic growth of quantity, quality, and efficiency. The decreasing consumption of coal is driving down the country's CO2 emissions, which at the same time is a positive factor for the world's CO2 emissions to stay stable at present."In the past 10 years, the proportion of renewable energy in power generation has surpassed 25 percent and electricity has accounted for nearly 21 percent of energy consumption in China," Shu Yinbiao proudly gave the figures. But he also noted that China still has a long way to go to shift its traditional energy mix so that renewable energy will eventually account for 50 percent or more – a key indicator of a successful energy transition.On the way up, China's energy consumption will unavoidably increase for the sake of economic growth and improvement of people's life. Therefore, it is an urgent and weighty mission for the country to realize a clean energy transition. "After the U.S. departure from the Paris Agreement, in particular, China is going to take on a more active role in reducing global carbon emissions. Meanwhile, greater attention from the international community may be given to China's policies and moves in this regard," Lin Boqiang, head of China Institute for Studies in Energy Policy at Xiamen University, made the remark. At the forum's opening ceremony on June 27, 2017, Chinese Premier Li Keqiang highlighted that China will honor its commitments under the Paris Agreement and carry out climate response measures on the ground, as this is required for the nation's green development.Energy enterprises in China spare no efforts to cater to new requirements. Take SGCC for example, it is determined to upgrade the traditional power grid into a modern system which is not only smart, interactive and resilient, but also safe and controllable. Although the transition to clean energy might at first be painful, Wan Gang called for energy companies to embrace changes with courage. Lin Boqiang agreed with this view and advised companies to be open to new technologies since technological advancement is always the foundation of an enterprise's development. "Extensive participation of technology innovation demands both tolerance from the society and enhanced support from the government," Lin added.As Wan Gang observed, energy transition is closely linked to everyone's living needs. While connecting the upgrade of traditional industries and the advancement of new technologies, the shift of energy mix sets up a platform for entrepreneurship and innovation to benefit the society as a whole. Widely popularizing the concept of renewable energy was stressed as well by Charlotte Roule, CEO of ENGIE China, ENGIE Group. "It is necessary to raise people's awareness when carrying out energy transition," she stated at the forum. "All societies should work hand in hand to encourage technology innovation," Liu Dashan explained from an entrepreneur's perspective. "Environmental protection is a public drive. Due to its requirement for long-term investment and lower returns, it demands the concerted effort of the whole society to advance the development of new technology.""Today, some solutions have been devised to make clean energy more affordable, pushing forward stepping out of coal," said Charlotte Roule, whose positive attitude showed the confidence we need when faced with energy transition. With unceasing breakthroughs in technology, cost, and policy, clean energy in China is believed to have a promising future. Moreover, the Belt and Road Initiative will further foster the flow of clean technologies across borders to share the models that have proven to be successful throughout the world.

The Investment Guide for Guangdong

Guangdong Province is located in the southernmost part of China’s mainland, facing the South China Sea and neighboring Hong Kong and Macau, with beautiful landscape and pleasant weather.Guangdong, also known as “Canton (Yue)”, boasts a long history. As a famous cultural city with a history over 2,200 years, the capital city, Guangzhou, is also the starting point of the the ancient Maritime Silk Road. Since the Reform and Opening Up of China, Guangdong has witnessed a rapid economic and social development,with springing up of the miracle of Shenzhen. The economic aggregate of Guangdong has successively exceeded that of Singapore, Hong Kong and Taiwan, three of the “Four Asian Tigers”. Today, Guangdong is one of the regions in China that boast the most developed economy, the most vigorous market and the most attractive investment destination. Guangzhou and Shenzhen stand side by side with Beijing and Shanghai as the global metropolitans in China. Nowadays, Guangdong is burgeoning energy for future innovation and development.Currently, Guangdong is accelerating the pace in shifting its driving forces for development and furthering industrial transformation and upgrade. Guangdong is actively rolling out a new round of high-level opening up to create a more globalized and convenient business environment that is better governed by the rule of law, further relax the threshold restrictions for foreign capital access to industries such as services and manufacturing, and grant greater support to high-level professionals to start their own businesses in Guangdong. Meanwhile, the province spares no effort in building the Guangdong Pilot Free Trade Zone into a gateway hub with a high level of opening up, joins hand with Hong Kong and Macau to promote the development of world-class city clusters in the Pearl River Delta region and the Guangdong-Hong Kong-Macau Great Bay Area, and boosts the development of the Greater-Pearl River Delta Economic Region. All these efforts ensure greater potential for enterprises both at home and abroad to start up business and develop in Guangdong.Guangdong is the place where the Cantonese culture was born and prospers and where China's Reform and Opening Up first started. People who live here are inclusive, practical, open-minded and innovative. Guangdong is not only an attractive destination for investment but also an ideal place for living. Standing at the new historical starting point, we look forward to joining hands with friends from China and overseas countries and regions to start a new page of even greater success. We warmly welcome investors from home and abroad to Guangdong for mutually beneficial cooperation and a bright future!

China's banking sector to see stable growth

China's banking sector is expected to grow steadily during the 2017-2018 period with a lower non-performing asset ratio.The commercial banks' assets are likely to grow by 10 percent a year, China Banking Association (CBA) said in its annual report.The money supply will gradually expand, but problems including weak growth of interest rate differentials and rising credit costs might threaten net profits.Commercial banks lent more money to small and micro businesses and in individual housing loans in 2016, and much less to industries suffering from overcapacity, according to Pan Guangwei, executive vice head of the CBA.In 2017, commercial banks are expected to make adjustments to better serve the Belt and Road Initiative, Beijing-Tianjin-Hebei coordinated development and Yangtze River Economic Belt plans."The growth of outstanding non-performing loans (NPLs) of the listed banks and their NPL ratio has eased in 2016. Some of them even witnessed drops in the NPL ratio," said Lian Ping, chief economist of the Bank of Communications, one of the authors of the report.Given that the NPL burden has been relieved and experience gained in dealing with NPLs, such as debt-to-equity swaps, Lian expects the NPL ratio to be stable during 2017-2018 period.

China Should Boost Digital Economy: Premier Li

China should use emerging information technology including cloud computing and Internet of Things to shore up the digital economy, Chinese Premier Li Keqiang said.  "The digital economy has enormous potential," Li said at a seminar on Monday, citing rapid growth in information consumption, mobile payments and e-commerce.  "Traditional industries should pick up speed in becoming more digitized, intelligent and green."  The premier expects information technology to create new sectors and new business models for the economy.  China should bolster emerging tertiary sectors including intelligent transportation and remote education to improve public services, Li said, adding that the "Internet Plus" can help make government affairs more transparent.  Li stressed further opening up in the telecom sector, support for research and development of new technology, and cyberspace security.  Having become a major growth driver, the digital economy rose 18.9 percent from a year ago to 22.6 trillion yuan (3.4 trillion U.S. dollars) last year.  Li called for more efforts on integrated development of small firms and industrial giants.  Enterprises should establish open Internet platforms to better allocate resources, match supply and demand, promote coordinated research and development, and build a new industrial ecosystem, according to Li.  As a result, innovation will be more efficient, manufacturing will improve, and economic and industrial upgrades will be pushed forward, Li said.  During the meeting, Li also urged continued efforts to offer faster and more affordable Internet services, which will help improve business competitiveness and reduce social costs.  Charges can be further lowered for individual consumers and small businesses, Li said.  In a visit to the country's three telecom operators ahead of the meeting, Li encouraged companies to develop more core technology and improve global competitiveness.  When listening to a report on how new technology could address difficulties in parking shared bicycles, Li said there are always problems in new things, which should be solved through new technology and in new ways.  The government will adopt cautious, inclusive supervision over new business models to ensure their robust and orderly development, Li said.

AI development plan shows China's vision

China's plan for artificial intelligence (AI) development, issued by the State Council Thursday, is a major step for carrying out the innovation-driven development strategy and making the country a global leader in science and technology, said Wang Zhigang, vice minister of science and technology.Since the concept of AI was first proposed in 1956, it has been evolving rapidly with the development of the Internet, big data, super computers and neuroscience, ushering in "the new generation of AI," said Wang."The new generation of AI" features deep learning, integration of multiple disciplines, human-machine collaboration and automatic operation, and is making various social and economic sectors smarter, said Wang.As a trigger for a new round of industrial reform, AI has been used by many countries to enhance international competitiveness and national security.However, China's move to propel AI development is not aimed at challenging the international status of certain countries, said Li Meng, another vice minister of science and technology."The plan is based on our judgement and vision for the current and future development of Chinese science and technology, and it meets the demands of social and economic development," said Li.The plan stated that the AI industry will serve as a new major economic growth engine and help improve people's lives by 2020, and the plan sets the target of China becoming a major center for AI innovation and leading the world in AI technology and applications by 2030.Wang stressed the importance of creating an open and coordinated system for AI innovation, which includes building innovation bases and a high-caliber talent pool, and promoting collaboration among AI entities.He also emphasized the synergy among AI research, production and industrial development, noting that research and production should reinforce each other.The emergence of AI has presented a double-edged sword for many people, and debates about its risks remain fierce."Just like other new technology, AI may bring about problems such as unemployment, disrupting social ethics and even challenging the principles of international relations," said Wang.In response to unemployment worries, Wang said the plan offers guidance for making adjustments to personnel training that will be more aligned with the job market.The stipulation of safety management regulations will be accelerated to address problems in automatic driving, service robots and other technology.Safety supervision and assessment will be strengthened to cope with misbehaviors such as data misuse, infringement of privacy and moral transgression, in order to promote self-discipline in the AI industry and companies, Wang said.