China: Facts, Events, Opinions (02/2023/254)

Minimum wage 2023

The Ministry of individual Resources and Social Insurance (chin. 人力资源和社会保障局) announced a list of minimum salaries (monthly and hourly) that has been in force since 1 January 2023 in individual provinces and cities of China. The highest wage is valid in Shanghai: 2590 RMB (approx. 1641 PLN) and the highest rate per hr is valid in Beijing: 25.30 RMB (approx. 16.02 PLN).

The lowest rates apply in the east state of AnHui (chin. 安徽): 1650 RMB (approx. PLN 1045), and hourly in the state of QingHai (chin. 青海 ): 15,20 RMB (approx. PLN 9,63).

In 14 provinces the minimum wage is over 2000 RMB 元 (about PLN 1270). Compared to the list of January 2022, the minimum wage in the most developed provinces and regions did not increase, minimum salaries in the poorest regions were raised.

There are no national minima in China. The minimum wage is set by local provincial governments, cities with provincial rights and large Chinese metropolises, taking into account factors specified as minimum maintenance costs for residents and dependants, consumer price index, social safety contributions and housing funds paid by workers themselves, average wage of employees, local economical development, local labour marketplace situation, etc.

Source:

• http://www.news.cn/fortunate/2023-01/03/c_1129251705.htmhttps://www.shobserver.com/staticsg/res/html/web/newsDetail.html?id=568241&sid=11

U.S. News and planet study economical Ranking

In 2022, the most economically powerful country in the planet was the United States. The U.S. National Product taxation in 2022 was US$23 trillion (about PLN 101.24 trillion) and per capita income was US$69288 (about PLN 304 995) per year. In the United States, there were 332 million people surviving in the past year, the state ranked 4th in the ranking of countries offering the top comfort of life on the globe.

According to U.S. News and planet Report, China is the second economical power with 17.7 trillion USD of GDP (about 77.91 trillion PLN) and 19 338 USD (about 85 133 PLN) of yearly income per capita. China had a population of 1.41 billion, and the country was ranked 14th in the global comfort category.

U.S. News edited data from 85 countries worldwide. Poland ranked 38 in economical terms and 32 in terms of comfort of life with 674 billion GDP (approx. PLN 2.97 trillion) and 37 503 USD (approx. PLN 165 072) per capita yearly income.

Source:

• https://www.usnews.com/news/best-country/rankings/power
• https://www.usnews.com/news/best-country/rankings

2022: tough year for developers

Over the next 7 years Chinese developers have made more and more profits, and the number of apartments sold has steadily increased. The year 2022 changed almost everything. Green islands on China's developer map remained large cities like Shanghai, Beijing or Canton, where housing sales increased by about 8-9% y/y. At the same time, medium-sized cities specified as ChongQing, WuHan, NingBo and HangZhou recorded evidence declines of 69%, 53%, 51% and 47% respectively.

The 100 largest developers in the country recorded a decrease in housing sales at an average of 41.3% y/y.

Only 15 major Chinese developers were able to carry out yearly plans of 73.6%. In 2021, it was 93.4%.

Good news: the year 2023 began well. Sales of apartments in 22 major cities of China between 31 December 2022 and 2 January 2023 (New Year's Day) increased by more than 20% y/y. Analysts view this as a sign of the housing sector's exit as a simple and first affirmative effect introduced in the past year's stimulation programmes the Chinese real property market.

Source:

• https://www.thepaper.cn/newsDetail_forward_21407121
• https://www.time-weekly.com/post/298906

Take the subway to the sky...

At the end of 2022 the longest (measured cumulatively) metro lines had:

• • • Shanghai (20 lines with a full dimension of 825 km),
    • Beijing (27 lines of full dimension 783 km),
    • Canton (17 lines with a full dimension of 590 km),
    • ChengDu (13 lines with a full dimension of 557.8 km),
    • ShenZhen (13 lines with a full dimension of 558.6 km),
    • HangZhou (12 lines with a full dimension of 516 km),
    • WuHan (14 lines of full dimension 503.6 km),
    • NanJing (13 with a full dimension of 448.9 km),
    • ChongQing (10 lines with a full dimension of 434.6 km),
    • QingDao (7 lines with a full dimension of 315 km).

Underground railways operate in 51 cities of China in the country.

On average, on a regular basis, the most passengers are transported by metro in Shanghai (more than 10 million people). In second place is Beijing (8.5 million), in 3rd Canton (7.65 million), on 4th ShenZhen (more than 6 million), and on 5th ChengDu (more than 5 million).

Source:

• https://www.gongcha777.com/zhuantifanwen/gongwenfanwen/65918.html
• http://www.qikula.com/images/17461568309.html
• https://www.time-weekly.com/post/298900

New railway lines

In the current year China National Railway Group Co., Ltd. (chin. 中国国家铁路集团有限公司) plans to put into service 3000 km of fresh railway lines, including 2500 km of high-speed railway lines (up to 350 km/h). The Chinese railways presume that in 2023 2.69 billion passengers will benefit from their services (increase by 67.6% y/y) and that they will carry 3.97 billion tonnes of goods (more by 1.8% y/y)

In 2022 the full dimension of high-speed railway lines exceeded 42,000 km (this is 27% of the full railway network in China, which totals 155 000 km). RMB 710.9 billion (about PLN 454.44 billion) was invested in railway infrastructure. 4100 km of railway lines were built, including 2082 km for high-speed trains. 3.9 billion tonnes of goods and 1.61 billion passengers were transported.

Source:

• http://www.gov.cn/xinwen/2023-01/04/content_5734924.htm

Internet in schools

At the end of 2022, all primary and secondary schools in China had net access and 3⁄4 of them have access to fast and wireless Internet.

Source:

• http://www.gov.cn/xinwen/2023-01/04/content_5734921.htm

Chinese Space Plans at 2023

China Aerospace discipline and Technology corp Ltd. (chin. 中国航天科技集团公司) predicts the launch of more than 50 rockets this year, not counting those that it recommends in space as part of commercial services. This means that all week any space rocket will be launched from Chinese cosmodromes with a space mission. This year, in addition to flights related to the operation of Chinese orbital station, investigation flights to the Moon are planned (take samples and deliver them to Earth, survey the natural materials of the Silver Globe, etc.) and related to the exploration of Mars.

China Aerospace discipline and Technology corp Ltd. will proceed the preparatory work related to the planned lunar manned mission. Chinese taikonauts are to stand on the Moon no later than 2030. The Chinese intend to send into space this year a probe to survey Jupiter and Uranus.

Source:

• https://www.chinanews.com.cn/gn/2023/01-04/9927284.shtml

Finance Minister – China in 2023

Special attention was paid to the media and experts by an interview, which was given by the Finance Minister of China LiuKun (chin. 刘昆). In this interview he announced:

• • • conduct a moderate, proactive fiscal policy this year;
    • Intensification of financial expenditure, investment in peculiar bonds and promotion of improved financial efficiency;
    • the continuation of preferential taxation policy, the focus on aid to companies (in 2022 the value of taxation and taxation reductions, reductions and taxation deferrals exceeded RMB 4 billion (about PLN 2.55 billion); the proportion of taxation gross to GDP decreased from 17.4% in 2018 to 15% in 2021);
    • increase expenditure and infrastructure investment through the issuance of local government bonds and transfers of funds from the central budget to little developed regions of the country;

China LiuKun did not hide that this year there would be a contradiction between income and expenditure, but it would not consequence in a simplification in spending on maintaining the standard of surviving of citizens. Sustainable growth, fiscal stability, market-oriented transformation of financial platforms will be supported.

The Minister assured that the funds spent in 2023 would be directed towards key economical objectives and that the government would not go back in spending to keep the standard of surviving of people, to guarantee that all citizens had a greater sense of income and safety growth;

According to the Ministry's assessment, the current level of government debt to the country's GDP (debt rate), is below the internationally accepted informing line 60%, the hazard of debt worsening is controlled.

In an interview, the Minister presented any of the fresh tasks of the Ministry to be carried out this year:

• • • continuing to standardise financial management,
    • prohibit the creation of fresh financial platforms companies,
    • transparency of information on finance and loans to local governments.

The door to the financial markets is to be open wide, but the "back door" will be blocked, which is simply a possible origin of systemic risks.

Source:

• https://economy.caixin.com/2023-01-04/101985352.html
• https://www.guancha.cn/politics/2023_01_04_674147.shtml
• https://m.jiemian.com/article/8684119.html

‘Buy-out’ Up

The statistician groom from JiangXi state (chin. 江西) in 2022, making a marriage, gave his in-laws 380 000 RMB (approx. 242 637 PLN), as part of a conventional redemption from the bride's parents and thanks for her upbringing. In addition to the money, the groom usually had to show his own place and his own car.

As the wealth of society increases, the amount of the "buyable" is increasing. The highest (averaged) in China is just in JiangXi Province. Here the size of the quotas is inversely proportional to the size of the town where the link is made. This customized is peculiarly powerfully rooted in villages and tiny towns, here men planning to marry fall the top burden associated with the customized of buying out a bride. Local authorities have tried so far to limit the increase in buy-out, as in many cases parents' claims stand in the way of marriage.

In all China, the amount of money donated to the bride's parents by the future son-in-law ranges from 50,000 to 100,000 RMB (c. 31,958 to 63,930). Also, of course, there is simply a request to have your own apartment, car and gold jewelry for your choice. Thus, it is not amazing that the number of married couples is decreasing. Only a fewer can afford specified luxury.

Source:

• https://www.shobserver.com/staticsg/res/html/web/newsDetail.html?id=568391&sid=11

New year, fresh regulations

National:

• • The prize for revealing illegal usage and/or fraud related to the wellness insurance fund has been increased. The maximum prize is presently 200,000 RMB (approx. 126,822), minimum 200 RMB (approx. 126 PLN);
  • In 10 provinces, a pilot strategy for commercial retirement insurance (Pekin, Shanghai, JiangSu, Zhejiang, FuJian, ShanDong, Henan, GuangDong, SiChuan, ShaanXi) is launched;
  • Children aged 6 to 14 will be able to acquisition discount rail tickets if their real name is given. Children over the age of 14 are entitled to no discount (payment 100%). In the absence of individual data of the child, the right to a discount determines the increase: children with an increase of 1.2 m to 1.5 m are entitled to a discount ticket. Higher children pay 100%;
  • It begins its application of the latest catalogue of industries, to invest in which abroad investors will be encouraged. The catalogue is divided into 3 parts:

1. 1. 1. 1. production sectors (this is the most promoted),
         2. services and
         3. preferences for regional abroad investment (to the west and the centre of the country).

Among another things, the import of all equipment and equipment imported for the intent of carrying out the investment data will be exempt from customs duties, the income taxation on projects in the western part of the country as well as on the island of HaiNan (chin. 海南) will be reduced to 15%, and for investments requiring a large area of land, the lease price will be 70% of the lowest price for land for industrial investments (https://m.gmw.cn/baijia/2022-10/30/36123680.html)

• • Smartphone manufacturers must guarantee that any additional apps on the telephone can be safely uninstalled, in addition to those essential for the operation of the device itself. The buyer is to decide what applications he wants in his smartphone.
  • The fresh regulations exacerbate fines and penalties for the usage in agricultural production of products, toxic substances, harmful substances, prohibited by the state, specified as circumstantial pesticides and withdrawn veterinary medicines or dense metals. In the event of a breach of regulations, which is treated as a criminal offence, they shall be liable for criminal liability in accordance with the applicable laws.

Local:

Beijing:

New rules for covering wellness insurance costs are in force. alternatively of the advanced limit of expenditure incurred, the regulation is that up to 20,000 RMB rules stay unchanged. In contrast, over 20,000 RMBs (about PLN 12,674) for people working will cover 60% of the costs incurred, in the case of pensioners 80%.

YunNan Province:

It introduces a disposable addition of 2000 RMB (approx. PLN 1267) for the household in the case of the birth of the second child, and 5000 RMB (approx. PLN 3168) for the third.

WeiFang:

This city in ShanDong state increases the debt limits that can be granted to acquisition housing from a housing fund (most workers and workplaces pay contributions to this purpose). The current limit of 100 000 RMB (about 63 403 PLN) is increased to a maximum of 600 000 RMB (about 380 422 PLN). The amount of own contribution was reduced from 30% to 20% of the value of the property purchased.

Source:

• https://www.shobserver.com/staticsg/res/html/web/newsDetail.html?id=566901&sid=11

Cinema business in China

Last year the proceeds from ticket sales in cinemas amounted to RMB 30.07 billion (about PLN 19.02 billion). 84.85% of this amount are the proceeds from the screening of national production films. Last year's consequence is 36.4% weaker than in 2021.

In 2022 cinemas in China visited 712 million viewers, with women making up 56%. Rating increase (second year in a row) by 3% y/y. The number of young men aged 16-24 visiting cinemas is decreasing, and the number of spectators in the largest cities of China is decreasing. The number of cinemans in the alleged second and 3rd circles (means and smaller ones) increased by 40% each year. People of Beijing, Shanghai and Canton are most likely to visit cinemas. Cinema owners are counting on 2023 to return to the results 2 years ago.

Source:

• http://wap.xinmin.cn/content/32290503.html
• https://cn.chinadaily.com.cn/a/202301/01/WS63b16781a3102ada8b2294d7.html

Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China

Email: [email protected]

Editorial: Leszek B.

Email: [email protected]

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