Opinion

1. Restore fair competition as the fundamental principle of the market

A healthy market economy relies on orderly competition. However, the problem of “disorderly price competition” has distorted market mechanisms and disrupted fair competition, negatively impacting high-quality development. The recent Sixth Meeting of the Central Commission for Financial and Economic Affairs stressed efforts to advance the building of a unified national market, and it emphasized to regulate enterprises’ disorderly price competition in accordance with laws and regulations, guiding enterprises to improve product quality, and promoting orderly phase out of outdated production capacity. This is an effective approach to propel enterprises toward the mid-to-high end of the value chain and an effective measure to enhance China’s economic resilience.

2. Leverage pilot experience to unlock dividends of institutional innovation

China will replicate pilot measures from the China (Shanghai) Pilot Free Trade Zone in other FTZs and across the country, among efforts to align with high-standard international economic and trade rules and advance high-level institutional opening-up, according to a State Council circular. The initiative will expand the dividends of institutional innovation across more regions. As a strategic move to establish new systems for an open economy of higher standards, it demonstrates China’s resolute commitment to deepening reform and opening-up, and paves the way for high-quality development.

Policy

1. China Development Bank has extended more than RMB 200 billion in loans during the first half of this year to support key projects across nine provinces and autonomous regions along the Yellow River basin. The funding focuses on three priority areas: ecological conservation, efficient water resource utilization, and new energy system development.

2. The National Development and Reform Commission has recently allocated an additional RMB 10 billion in central budget investment to expand work-relief programs designed to create jobs and increase incomes for low-income population. The funds will support 1,975 projects across 26 provinces, autonomous regions, municipalities, and the Xinjiang Production and Construction Corps. The initiative is expected to distribute RMB 4.59 billion in labor remuneration and benefit 310,000 people. The policy has played an important role in stabilizing employment, improving people’s livelihood and promoting development.

3. An international standard on test scenarios for autonomous driving systems has been officially released, according to the news from the Ministry of Industry and Information Technology of China. The standard, led by China during its formulation, outlines the evaluation procedures and test methods for the test scenarios of autonomous driving systems.

Data

1. In the first five months of this year, the main policies supporting scientific and technological innovation and manufacturing development, including tax and fee reductions, and refunds, amounted to RMB 636.1 billion, according to China's State Taxation Administration.

2. China Futures Association released data on July 4 showing that on a unilateral basis, the cumulative trading volume of the national futures market from January to June was 4.076 billion lots, with a cumulative trading volume of RMB 339.73 trillion, an increase of 17.82 percent and 20.68 percent year-on-year, respectively. China's futures market was active in trading in the first half of the year.

3. The latest statistical data showed that in the first five months of this year, the national steel production was 606 million tons, a year-on-year increase of 5.2 percent. The operation of China's steel industry is stable with the trend of industrial transformation and upgrading.

4. With the improvement of inland waterway transport capacity, China's river freight volume exceeded 2 billion tons in the first five months of this year, a year-on-year increase of nearly 4 percent, according to the Ministry of Transport.

5. The largest thermal power plant under construction in China, Unit 8 of Beilun Power Plant in Zhejiang Province, was successfully put into operation on July 6 after 168 hours of full load trial operation, providing additional power supply for high temperature weather, according to the CHN Energy.

6. The State Administration for Market Regulation released a credit index showing that the credit index of Chinese enterprises in May was 162.96, and the overall credit level of enterprises maintained stable growth.

7. According to data from the China National Coal Association, in the first five months, the country produced a total of 1.99 billion tons of raw coal, an increase of 110 million tons year-on-year, setting a new historical high for the same period.

8. According to the China Construction Machinery Association on July 9, in the first half of this year, the sales of two representative products in China's construction machinery industry - excavators and loaders - both achieved a growth rate of over 10 percent.

9. The cumulative gas transmission volume of China's north-to-south gas transmission project exceeded 100 billion cubic meters, and it has operated safely and smoothly for more than 2000 days, marking significant progress in ensuring national energy security and promoting green transformation through this north-south energy pipeline.

10. The 31st China Lanzhou Investment and Trade Fair concluded on July 10 in Lanzhou, the capital of Gansu Province, Northwest China. As Gansu's flagship international economic event since 1993, the fair has this year secured deals for 1,181 investment projects totaling over RMB 650 billion (about USD 90.9 billion) in sectors such as new energy equipment, agricultural processing, new materials, and digital technology.

(Source: Economic Daily)