China: Facts, Events, Opinions (03/2023/255)

chiny24.com 2 years ago

In a word of good, 2 not-good

This is the shortest way to comment on the latest economical data on December 2022 and the full past year. Inflation was not a problem during these periods. It did not exceed the assumed 3% last year. It approached this level in July and September (2.8% and 2.8% y/y respectively). Consumer prices were in most cases stable.

Data: State Statistical Office (chin. 国家统计局) r/r – year to year; m/m – period to month

This cannot be said of maker prices, which have passed into deflation in the second half of the year since the advanced inflation level in early 2022.

Data: State Statistical Office (chin. 国家统计局) r/r – year to year; m/m – period to month

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Three oil and gas deposits

China National Offshore Oil corp Ltd. (chin. 中国海洋石油集团有限公司) boasts 3 oil and gas deposits with the largest production in the country in 2022.

The first is the ChangQing field (chin. 长庆) lying in the southwest of the country. In the past year, 65,016 million tonnes of oil and gas were extracted.

The second place included the BoHai deposits (chin. 渤海) in the Yellow Sea in the bay of BoHai in its north-western part), where 34.5 million tonnes of both natural materials were acquired.

The 3rd place was taken by the oldest and largest deposits exploited in China, discovered in 1959 DaQing (chin. 大庆), where 34.38 million tonnes of oil and gas were extracted last year.

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https://www.jiemian.com/article/8700289.html

Nuclear

According to the data of the State Energy Administration of China (chin. 中国能源局) at the end of 2022 53 atomic reactors were installed in the Central State producing energy with a full capacity of 55.57 million kWh. atomic energy last year had a 5% share in Chinese energy mix. The construction and plan of subsequent reactors is underway. By 2035, the share of atomic energy in the mix is expected to increase to 10%.

Source:

https://baijiahao.baidu.com/s?id=1754889152011631476&wfr=spider&for=pc

Housing prices are falling in number of transactions

China Index investigation Institute (chin. 中指研究院) published its price index of fresh housing in 2022 in 100 cities of the country. The data collected shows that property prices in China fell for the first time in 8 years. In the primary marketplace by 0.02% y/y. December was the seventh period in a row of declines recorded on this marketplace in 2022. On the secondary market, housing prices fell by 0.77% y/y.

In December, the number of purchases of housing increased by 6 % m/m. Although in the full 2022 there were nearly 40% little transactions than in 2021, in the cities of the alleged first ellipse (the 4 largest) the number of transactions decreased by 23.7% y/y, in the cities of the alleged second ellipse (the largest provincial) by 38.6% y/y, and in the cities of the alleged 3rd and 4th circles (the larger region and municipality) by 34.8% y/y.

Housing prices, sales and real property investments have been falling for respective months. Therefore, the central and local authorities increase their support for the housing industry, including helping to supply financial liquidity to the developer or abolishing the restrictions on fundraising through offering fresh stock issuances by listed developers.

Source:

http://www.jwview.com/jingwei/html/01-03/520717.shtml

Fear Begins

What happened had to happen in this biggest NEV car marketplace in the world. The multitude of manufacturers of this kind of vehicles further fosters competition. Tesla Shanghai Co., Ltd. (chin. 特斯拉上海有限公司) made the first decision in the fight for the client. As of January 6, this company introduced the largest price reductions in the so-far nearly 3 years of Shanghai's past of "gigafactory".

And like this:

- price on the most popular model 3 decreased to 229 900 RMB (approx. PLN 148,055)
- price per Y model decreased to 259 900 RMB (approx. 167 375 PLN)
- price per model S decreased to 789 900 RMB (approx. PLN 508 695)
- the price for model X was reduced to 879 900 RMB (PLN 566 665).

Discounts ranged from 50 000 RMB (approx. 32 200 PLN) to as much as 100 000 RMB (approx. 64 400 PLN).

These price changes did not meet Tesla's customers' understanding. Many of those who prepaid cars in December (of course according to old prices) began protesting in front of the salons Tesla against specified an unexpected and unannounced price simplification that did not embrace them.

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Credit is fine

According to the statistic of the People's Bank of China (chin. 中国人民银行) at the end of the year 2022 the full value of loans granted by Chinese banks amounted to 213,99 trillion RMB (approx. PLN 137,81 trillion). This is an increase of 11.1% y/y. In total, 65.3% of loans are those granted to companies and another economical operators. The value of deposits deposited with Chinese banks in 2022 was 258,5 trillion RMB (about PLN 166,47 trillion), by 11.3% than the year before.

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Market Warning

The State Committee on improvement and improvement (chin. 国家发展与改革委员会), the central planning body of the state, issued a 3rd degree informing for the marketplace and producers. This is due to the fact that the price of pigmeat fell on average on the Chinese marketplace by more than 30%. In just 2 months. Meanwhile, average profits in the manufacture fell by over 80% in 2 weeks. This, according to the Commission, should prompt suppliers to respond in order to adapt to the marketplace situation in order to prevent a collapse in the pigmeat market.

For example, the average price of 1 kg of pigmeat on the wholesale markets was 32.12 RMB (approx. PLN 20.70), and 9 January 24.22 RMB (approx. PLN 15.61).

On average, 22.54 RMB (approx. PLN 14.54) was paid per kilogram of pigs for the farm on 9 December (approx. PLN 10.12).

Pork meat is 1 of the basic ingredients of Chinese cuisine, peculiarly popular in winter, and especially now, before Chinese fresh Year (this year begins on January 22).

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Clear diplomatic priorities: Russia

56-year-old Qin Gang (chin. 秦刚), China's fresh abroad minister, began his first day of office with a telephone conversation with Russian abroad Minister Sergei Lavrow. At the request of the jury.

China's current policy towards Russia will proceed by the fresh minister. Minister Qing pointed out that the basis of Chinese-Russian relations is “not engaging in military pacts, rejecting confrontation and the concept of directing cooperation against any 3rd party”. Cooperation itself has unlimited opportunities, no prohibited areas or limits.

With respect to the conflict in Ukraine, Minister Qin stated: “The territorial integrity of each country should be respected, the United Nations Charter respected, the legitimate safety concerns of all parties should be taken into account and all efforts to resolve the conflict peacefully should be supported”.

China considers that “all parties should jointly argue the usage of atomic weapons, jointly support all efforts to accomplish peace, jointly guarantee the stableness of global production and supply chains, and jointly aid civilians in war zones last the winter.” It is besides China's appeal to all parties to the conflict, including Russia and Ukraine.

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From a chronicle of duty: in the first days of office, Minister Qin conducted telephone talks with, among others, the U.S. Secretary of State, South Korean abroad Minister and head of the Pakistan MFA.

Clear diplomacy priorities: Africa

Like his predecessors, according to a tradition continued for 33 years, Minister Qing went on his first abroad journey to Africa. On 9-16 January, Minister Qing Gang visited Ethiopia, Gabon, Angola, Benin, Egypt and besides met with representatives of the African Unity Organization and the arabian League.

China continues its policy of expanding strategical investment in Africa, which is simply a global leader, as stated by the MFA press spokesperson. This is concrete evidence of the importance that the mediate State attaches to relations with African countries. China is the main trading partner of the countries of the continent and the largest investor, with Chinese investments mainly involving infrastructure projects as well as natural materials extraction and processing.

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MFA staff

The entrusting Qing Gang, until late to the Chinese Ambassador to the United States, as abroad Minister, has become a origin of speculation about Qing's possible successor as head of the Washington facility, possibly the most crucial of the diplomatic posts of the PRC today.

Many experts believe that Xie Feng (chin. 谢锋), the current Deputy Minister of the Ministry of abroad Affairs, has the best chance. He is an experienced diplomat who worked in institutions, including Indonesia and the United States. He besides served as manager of the Department of Chinese-American abroad Affairs Relations.

On a long list of possible candidates to take over as ambassador to the PRC in the USA are Ma ZhaoXu (chin. 马朝旭), Deputy Minister of abroad Affairs, Mrs Hua ChunYing (chin. 华春莹), Assistant Minister of abroad Affairs and Press spokesperson of the Ministry, Lu Kang (chin. 陆慷), Chinese Ambassador to Indonesia, Zheng ZeGuang (chin. 郑泽光), Chinese Ambassador to the UK, and 2 high-ranking officials presently working at the Washington facility: Xu XueYuan (chin. 徐学元) and Jin Quan (chin. 金泉).

The substance will be resolved soon. Prior to a February visit by U.S. Secretary of State Anthony Blinken to China.

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