11 months ago

The Star: March 16, 2017

22 Thursday

22 Thursday March 16 2017 Latest Christchurch news at www. .kiwi The Star Retrospective Highlights of China’s Economy in 2016 Despite challenges including anemic world growth and volatile global financial markets, China achieved steady growth of its economy and pressed ahead with key reforms in 2016. We will use several key phrases to review the economic year. ECONOMY STABILIZING The reform has steadily progressed since policymakers proposed it at the end of 2015. China has been committed to foster new drivers of growth, develop an advanced manufacturing sector and upgrade the real economy. A large number of zombie enterprises were shut down. Industries plagued by overcapacity and lagging technology must now move up the value chain to stay competitive. China will continue to improve its basic economic system and expedite reforms to delegate power, improve regulation and optimize services. China’s Central Economic Work Conference has made “seeking progress while maintaining stability” the main theme of economic work in 2017, pledging to further push for substantial progress in supply-side structural reform. CAPACITY-CUTTING POVERTY ALLEVIATION China pursues the goal of common prosperity. It has taken major steps to alleviate poverty and lifted over 700 million people out of poverty. China's 13th Five-Year Plan for Economic and Social Development has codified the central leadership's poverty-reduction decision into the state will that is operable in practice. For the first time, the heads of Party committees and governments of relevant provinces and autonomous regions have signed to the Central Authorities letters of commitment on poverty elimination, and likewise similar documents have been signed by leaders at lower levels. It is one of the basic policies of the Chinese government to innovatively improve its methods in reducing and eradicating poverty, and takes targeted measures to that end. Recently, through data tracking on the conditions of the impoverished population, the government analyzes the causes of their problems, and offer guidance on their development needs. Targeted measures are implemented in terms of funding, projects, and recipients. Every impoverished household is guaranteed help, every village has designated officials to carry out poverty eradication measures, and goals are met within the defined standards. In the fight against poverty, China has enhanced poverty eradication effects, accelerated the speed of poverty eradication, and ensured impoverished people's right to life. China’s overall economic performance remained stable in 2016. Despite the rocky start and remaining downward pressure, China’s economy ended the year on a firm footing. Gross domestic product totaled 74.41 trillion yuan (about 10.83 trillion U.S. dollars). And the annual growth rate reached 6.7%, within the government’s target of between 6.5% and 7%, scotching rumors of a hard landing. The figure represents a medium-high level of growth and China’s economy continued to run within a reasonable range, with its structure further optimized and development model transformed, indicating a good start for the country's goal of achieving at least 6.5% annual growth during the 13th Five-year Plan period from 2016 to 2020. China's economy has entered a new phase known as the “new normal” as the country tries to modify its export and investment driven growth model into one that draws strength from consumption, innovation and the service sector. In 2016, the service sector accounted for 51.6% of total GDP, consumption contributed 64.6% to GDP growth, and high-tech industries posted fast expansion. Moreover, China’s economy still remains the top one engine for the growth of world economy. China’s increasing domestic demands have contributed significantly to world trade and economic growth. The outbound Chinese investment also kept increasing and reached 170.11 billion USD in total in 2016, adding impetus to global economic restructuring. The contribution of China’s economic development to world economy has reached 33.2% in 2016 as calculated in constant 2010 USD and about 40% if calculated in 2015 USD. In the coming five years, China is expected to import $8 trillion USD of goods, attract $600 USD billion of foreign investment and make $750 USD billion of outbound investment. Chinese tourists will make 700 million overseas visits. All this will create a bigger market, more capital, more products and more business opportunities for other countries. SUPPLY-SIDE STRUCTURAL REFORM “Supply-side structural reform” is now a catchphrase in China. Throughout the year, the authorities pushed forward five tasks: cutting industrial capacity, reducing the housing inventory, lowering leverage, cutting corporate costs and improving weak economic links. Looking back at the economic priorities set for 2016, industrial overcapacity was always a key battlefield. Steel and coal, the two most troubled sectors, were prioritized in the battle against overcapacity. In 2016, China shed more than 65 million and 290 million tons of inefficient steel and coal-mining capacity respectively. The government plans to raise those numbers to 140 million and 800 million tons within the next three to five years to restore healthier fundamentals to those industries. Meanwhile, the government is working with business communities on various retraining programs. In 2016 alone, 700,000 workers once employed in downsized industries moved on to new jobs. INNOVATION-DRIVEN The fundamental issue plaguing the global economy is the lack of driving force for growth. Innovation is the primary force guiding development. China is closing the innovation gap and trying to move beyond just being the world's factory. Policy makers want the country's future growth to draw strength from new technologies, new ideas and new business models. China chose innovative development as one of the five key principles for the current Five Year Plan which sets the target of building an innovative economy by 2020. Outline of the National Strategy of Innovation-Driven Development was released last May. Innovation has been selected by the Chinese Presidency as a key theme for the G20 held last September, and President Xi Jinping said at the opening of the Business 20 summit (an integral part of the G20 Summit) that to make China an innovative country and a leader in science and technology is what China must do now in pursuing development. According to a global survey by Cornell University, INSEAD, and the World Intellectual Property Organization, China is now ranked among the world's 25 most innovative economies. From drones to artificial intelligence, the internet to genetic engineering, innovative Chinese companies are leading global innovation and reshaping the country's technology and business landscape. We see companies like Huawei, Lenovo, Haier and also the Internet giants Baidu, Alibaba, Tencent (BAT) relentlessly innovating products and technologies, often disrupting traditional industries such as BAT has done in the catering, financial services, taxi, healthcare and other sectors. Innovation will continue to feature prominently on China’s growth agenda. In pursuing the strategy of innovation-driven development, China will bolster the strategic emerging industries, apply new technologies and foster new business models to upgrade traditional industries; and will boost new drivers of growth and revitalize traditional ones. The State Council released Poverty Alleviation Plan for the 13th Five-Year Plan Period (2016-2020) in 2016. The Central government allocated 67 billion RMB of special fund for poverty alleviation, and the target of lifting 10 million people out of poverty in the year has been achieved as planned. BELT AND ROAD INITIATIVE China's One Belt and One Road Initiative attracted worldwide attention and has been widely welcomed since its introduction three years ago. Upholding the principles of co-consultation, co-contribution and sharing, China has closely combined its development with development of countries along the routes and yielded good results. In 2016, with efforts of many countries, the initiative accomplished a series of achievements in many fields, implementing several landmark projects. More than 100 countries and international organizations have voiced their support or strong interest in participating in the initiative, and China has signed cooperation deals with more than 40 of them. Chinese companies have made over $50 billion USD of investment and launched a number of major projects in the countries along the routes, producing huge economic and social benefits. China stands ready to maintain close contacts with New Zealand to promote the integration between the “Belt and Road” initiative and the “Thirty Year New Zealand Infrastructure Plan”, and push forward the implementation of more cooperation projects at an early date. New Zealand, as an important stop in the 21st Century Maritime Silk Road, can embrace important business opportunities from participating in the “Belt and Road” initiative, and New Zealand enterprises focused on infrastructure construction may be able to link with international capital market more conveniently. China expects to increase its annual trade volume with countries along the Belt and Road to 2500 billion USD in the next ten years. The continuous input in the trading route and infrastructure by Chinese enterprises will bring about extensive profits for New Zealand exporters. This advertorial page is supported by The Chinese Consulate

The Star Latest Christchurch news at www. .kiwi Thursday March 16 2017 23 News Coupland’s TV prize claimed FIONA ELSTON has struck gold, walking out of Coupland’s Bakeries with a brand new television. The 65in unit is the first of five major prizes to be claimed as part of Coupland’s Bakeries’ Crusaders-themed competition. The bakery is running a competition where squad cards of the team can be collected each time a Crusaders-themed loaf of bread is purchased. Each participant receives a free display board after purchasing two Crusaders loaves of bread before starting their collection of squad cards. Similar to a Charlie and the Chocolate Factory concept, if a golden sword is found in the loaf of bread, then a major prize is scored. And that is exactly what happened to Mrs Elston, 49, of Phillipstown. “I am pretty excited, nervous all of the above. It is the first major thing I have won . . . everyone else wins those sorts of things,” she said. She said she will continue to buy more of the Crusaders loaves of bread due to its good quality. EXCITED: Vicky Cardinalli, store manager, winner Fiona Elston holding up her winning ticket and Coupland’s Bakeries managing director Lance Coupland with the new television. PHOTO: GEOFF SLOAN However, four prizes are still up for grabs with the competition not set to finish until May 31. Among the prizes a $4000 travel voucher, bread and milk from Coupland’s Bakeries for a year, a VIP hospitality and rugby match experience in June, and karting with three Crusaders’ players can still be won. For more information on competitions, giveaways and card-swapping for the Crusaders loaf competition go like the Crusaders Loaf 2017 Facebook page or check out the advertisement below. Mingha Bluff realignment delayed until next year THE NEW Zealand Transport Agency says a wet alpine summer means the Mingha Bluff realignment project will now be completed by the end of next summer. The $22 million project on State Highway 73, between Greyneys Shelter and Rough Creek near Arthur’s Pass Village, was initially expected to be finished by the end of this month. NZTA highways manager Colin Knaggs said the project was about 80 per cent complete. “While we’re disappointed with the delay, contractors have worked hard to get to this point and we can’t control the weather,” Mr Knaggs said. “As people on the West Coast know, it has been a very wet summer and this has created delays in the final surfacing of the road. “With winter approaching, the plan is to lay a temporary seal over the unfinished sections. This will protect the project over the winter months. We will lay the final seal and put the finishing touches on the project when the weather allows in summer 2017/18.”