Daily News-20191022

 |  Xinhua / China Daily

Today's point


Foreign capital to spur upgrading


Internet sales give welcome boost to local fortunes


Spotlight: Finance ministers, central bankers vigilant on trade tensions, urge IMF quota reform


Volkswagen China deliveries down 2.8 pct in first nine months



Quick view

1. Foreign capital to spur upgrading

Greater competition to increase vitality of domestic companies and benefit Chinese consumers

The State Council has renewed its pledge to further open up the Chinese market and level the business playing field, with measures to give domestic and foreign players equal access to the banking and auto sectors and the capital market.

Experts said more market access to foreign capital will spur the vitality of domestic companies through greater market competition, which could provide better services and products to consumers.

The Cabinet said in a statement following Wednesday's executive meeting that the government will continue to cut red tape and improve services to foster a more welcoming business environment for foreign investment.

More sectors will be open to foreign investment, and restrictions on the scope of business of foreign-invested banks, securities companies and fund management firms already established in China will be lifted across the board, the statement said.

It also called for better foreign investment policies in the auto industry, with steps to offer equal market access for domestic and foreign-invested new energy vehicles made in China.

Premier Li Keqiang said at the meeting that foreign capital has played a unique and important role in China's economic growth, and the country must always attach great importance to the use of foreign capital to promote high-quality development and modernization.

(source: China Daily)


2. Internet sales give welcome boost to local fortunes


For Yu Jiwan, Party secretary of the Cangtian village in Cixi, Zhejiang province, the booming Taobao businesses in the village have introduced positive changes, providing a seamless connection between the production, marketing and sales of the sanitary ware produced in the village.

The village, which has a population of 4,600 and is home to more than 300 makers of sanitary ware, launched a service platform as early as 2017 to provide storage, product supply, e-commerce training and logistics services for Taobao store operators in the village, making it the first Taobao village in Cixi.

Taobao villages are rural e-commerce hubs that feature Alibaba's logistics, services and training to encourage farmers to engage in online sales of farm produce and local specialties.

To be nominated as a Taobao village, Alibaba requires total annual e-commerce transactions of more than 10 million yuan and more than 100 online stores located in each village.

The move is regarded as part of the company's campaign to contribute to the country's ongoing poverty relief efforts.

In 2018, the village registered an online sales volume of more than 100 million yuan ($14 million), ranking first in Cixi.

(source: China Daily)


3. Spotlight: Finance ministers, central bankers vigilant on trade tensions, urge IMF quota reform

WASHINGTON, Oct. 21 (Xinhua) -- Finance ministers and central bankers worldwide called for concerted efforts to strengthen the multilateral, rules-based trading system amid global trade tensions at the just concluded annual meetings of the International Monetary Fund (IMF) and the World Bank, while demanding continued progress in the IMF's quota and governance reform.


In a communique released after the 40th meeting of the International Monetary and Financial Committee (IMFC), the IMF's policy-setting body, the committee said growth outlook is "highly uncertain and subject to elevated downside risks," including trade tensions, policy uncertainty, and geopolitical risks, against a backdrop of limited policy space, high and rising debt levels, and heightened financial vulnerabilities.

"Free, fair, and mutually beneficial goods and services trade and investment are key engines for growth and job creation. A strong international trading system with well-enforced rules addressing current and future challenges would support global growth," the IMFC said in the communique Saturday.

"To this end, we recognize the need to resolve trade tensions and support the necessary reform of the World Trade Organization to improve its functioning," it said.

World Trade Organization (WTO) Director-General Roberto Azevedo said in a statement to the IMFC meeting that "trade tensions, combined with a wider slowdown in aggregate demand in leading economies, have taken a toll on global trade growth." After registering 3 percent growth in 2018, year-on-year growth in merchandise trade, by volume, fell to 0.6 percent in the first half of 2019.

(source: Xinhua)


4. Volkswagen China deliveries down 2.8 pct in first nine months

TIANJIN, Oct. 21 (Xinhua) -- German carmaker Volkswagen Group posted a 2.8-percent annual decline in vehicle deliveries in the Chinese mainland and Hong Kong in the January-September period as China's auto market continued a sales slump.

Volkswagen Group China and three China joint ventures, FAW-Volkswagen, SAIC Volkswagen and JAC Volkswagen, delivered a total of 2.96 million vehicles to Chinese customers in the nine months.

Stephan Wollenstein, CEO of Volkswagen Group China, said the automaker has experienced challenges since 2019 and will continue to be affected by market uncertainties in the coming months.

China, the world's largest auto market, saw car sales drop for the first time in over two decades in 2018 and the weak market has continued in 2019.

China's total car sales for the first nine months declined by 10.3 percent year on year to 18.37 million units, according to the China Association of Automobile Manufacturers.

Despite the challenges, Volkswagen is still likely to buck the downward trend with its SUV and new energy vehicle (NEV) strategies, said Wollenstein.

Volkswagen SUV deliveries rose nearly 50 percent in the first three quarters and the automaker will continue to roll out NEV models in the coming months, increasing the number of new NEV models to 14 for the whole year.

(source: Xinhua)

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