1. Confidence and patience needed in economic recovery

 

The growth momentum of China’s major economic indicators slowed down in May, raising concerns about the prospects of economic recovery. It is normal for certain indicators of the economy to encounter temporary fluctuations during the recovery process from the perspectives both home and abroad. At present, China’s economy continues its recovery process in general, and there is something to be done to consolidate the basis of such recovery, while the long-term positive momentum has not changed. Therefore, not only confidence is needed in better economic performance, more patience is also vital for the economic recovery. 

   

2. Macro policies in coordination to expand demand

 

As two major tools of macroeconomic regulation policies, both fiscal policies and monetary policies are capable of adjusting the total social demand. It is important to give full play the adjusting role of these policies, so as to coordinately promote investment and lower the corporate cost. As we are still facing insufficient domestic demand, weak consumption and private investment, there is a strong need of macro policies that will continue to expand demand and support real economy.

 

3. Promote the technology-industry-finance virtuous circle

 

China’s State Council recently approved the action plan to better support the financing of the technological enterprises, emphasizing that financial institutions need to optimize products, market, and service system based on various needs of technological enterprises in different development stages, so as to provide financial service in succession throughout the whole life cycle of the enterprises. It is important to promote the integration of industry, university, research, and financing, so as to industrialize scientific and technological achievements, better play the role of the finance in supporting the scientific and technological innovation and industrial advancement, and to provide support of the solid real economy for financial development.

 

 

1. Guidance on financial support for the rural revitalization and construction of strong rural economy was released by the People’s Bank of China and other four government departments. According to this guidance, a series of requirements were put forward to promote the financial service, and to guide more financial resources to key areas and weak links of rural revitalization.

 

2. China and Germany recently signed a three-year action plan to promote cooperation in areas such as poverty reduction, climate change response, and agriculture.

 

3. General Administration of Customs decided to resume the imports of sugar apples from Taiwan since June 20. The imported sugar apples should come from registered packing plants and orchards.

 

 

1. Foreign direct investment (FDI) in the Chinese mainland, in actual use, stood at RMB 574.81 billion and expanded 0.1 percent year on year in the first five months of the year, the Ministry of Commerce said. 18,532 new foreign-invested enterprises were established, a year-on-year increase of 38.3 percent.

 

2. China's power generation rose 5.6 percent year on year in May, with total power generation reached 688.6 billion kilowatt-hours, according to data from the National Development and Reform Commission. 70 fixed assets investment projects were approved with a total investment of RMB 667.2 billion.

 

3. The Ministry of Finance reported that from January to May this year, China's general public budget revenue was RMB 9.969 trillion, up 14.9 percent year on year; The general public budget expenditure exceeded RMB 10 trillion, up 5.8 percent year on year.

 

4. Trade between Guangxi and the Association of Southeast Asian Nations (ASEAN) totaled RMB 137 billion, up 117.4 percent year on year; Among them, Guangxi's total imports and exports in May hit RMB 32.13 billion, up 100.9 percent year on year, and have doubled year on year for three consecutive months.

 

5. Chinese firms inked service outsourcing contracts worth about RMB 815.9 billion in the January-May period, up 12.3 percent year on year. The executed contract value stood at RMB 550.4 billion during this period, with a year-on-year increase of 18 percent, according to data from the Ministry of Commerce.

 

6. China's retail sales of consumer goods reached RMB 3.78 trillion, up 12.7 percent year on year in May. In the January-May period, the country's retail sales of consumer goods totaled RMB 18.76 trillion, up 9.3 percent year on year, data from the Ministry of Commerce showed. 

 

7. China's total cold-chain logistics amounted to RMB 2.65 trillion during the January-May period, up 4.1 percent year on year; The market size of the cold-chain logistics was RMB 239.5 billion, a year-on-year increase of 3.6 percent, according to the China Federation of Logistics and Purchasing.

 

8. The combined business revenue of the three major firms in China's telecommunication industry sector totaled RMB 712.5 billion, up 6.8 percent year on year; The total telecommunications business volume increased by 17.2 percent year on year, according to data from the Ministry of Industry and Information Technology.

 

9. In the past two years, the Chinese new energy vehicle market has achieved rapid growth, with annual sales increasing from 1.367 million units in 2020 to 6.887 million units in 2022, a fourfold increase in two years.