Presentation: Key Findings of Business Climate Survey in China and Update on EU-China Trade & Investment Relations – 25 June 2014 – Brussels
Jun-30-2014 By : fcccadmin
The EU-China Business Association, BUSINESSEUROPE and the European Union Chamber of Commerce in China, organized a presentation on the business climate in China and the EU-China trade and investment relations. This meeting took place on 25 June in Brussels.
During this conference the latest findings from the China Business Confidence Survey 2014 were presented. This survey was realized by the European Union Chamber of Commerce in China and gathers together the views of over 550 European businesses in China. At this meeting, the European Commission also provided an update on the recent negotiations of the EU-China Investment Agreement.
The EU-China Business Association is the EU-wide federation of business organizations in the EU promoting business relations with China. The Flanders-China Chamber of Commerce holds the secretariate-general of the association.
Following a word of welcome by the EU-China Business Association, Gwenn Sonck, Secretary General and BUSINESSEUROPE, Carsten Danohl, Director; Mr Adam Dunnett, Secretary General, European Union Chamber of Commerce in China, introduced the China Business Confidence Survey 2014, while a Representative of the European Commission gave an update on the negotiations of an EU-China Investment Agreement. The event was concluded by a question and answer session.
The results of the China Business Climate Survey can be downloaded via this link : http://china.msq.be/files/docs/20140627-170033_96_business_confidence_survey_2014%5Benglish_version%5D-1.pdf
Shanghai Investment Promotion Conference – 24 June 2014 – Kortrijk
By : fcccadmin
A conference on investment opportunities in Shanghai, Shanghai Fengxian European SME Industry Park and Shanghai Jinshan Zhujing Industry Park, was organized by the Flanders-China Chamber of Commerce (FCCC), VOKA West-Flanders, the Shanghai Foreign Investment Development Board, Shanghai Fengxian European SME Industry Park and the Shanghai Jinshan Zhujing Industry Park.
The current investment environment in Shanghai and preferential policies available for SMEs were introduced. Participants had the opportunity to meet with senior level delegates who provided practical advice on how to do business in China.
The conference took place on 24 June 2014 in Kortrijk. Following a word of welcome by Mrs Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce and by Mr Hans Maertens, Managing Director, VOKA – Chamber of Commerce West-Flanders, Mr Tao Dong, Vice President, Shanghai Foreign Investment Development Board gave a presentation on the investment environment and policy in Shangha. The Shanghai Fengxian European SME Industry Park and the Shanghai Jinshan Zhujing Industry Park were introduced by their respective representatives. An exchange of views and a walking dinner concluded the event, which was organized with the support of Flanders Investment and Trade.
Interest rates on smaller forex deposits liberalized in Shanghai
By : fcccadmin
The People’s Bank of China (PBOC) is liberalizing interest rates on smaller foreign-currency deposits across Shanghai in the first pilot free trade zone (FTZ) reform to be applied outside the zone. Interest rate ceilings on foreign-currency deposits of less than USD3 million are removed following a 4-month trial in the zone. It will apply to companies initially but could be extended to individuals later. The rate ceiling for foreign-currency deposits was 1.5% for current accounts. China liberalized lending and deposit rates, from 2000, for accounts holding more than USD3 million. The city currently has more than USD20 billion in smaller foreign-currency deposits. Foreign-currency deposits amounted to USD76.7 billion in Shanghai at the end of May, a seventh of the national total. Outstanding foreign-currency lending was USD79.8 billion, a 10th of the national total. Liu Ligang, Chief Economist at Australia & New Zealand Banking Group for China, described the move as “an important experiment for China’s interest rate liberalization.” Seven banks have been granted approval to offer free trade accounts, which in theory allow holders to move local and foreign exchange funds in and out of China without being subject to the strict capital controls that apply outside the free trade zone. Foreign-currency deposits totaled USD566 billion in May, representing about 3% of total deposits in China.
Gold transactions falsified to borrow from banks
By : fcccadmin
Chinese gold processing firms have since 2012 used falsified gold transactions to borrow CNY94.4 billion from banks, according to China’s National Audit Office (NAO). Coming on the heels of alleged metals financing fraud at Qingdao Port, this may prompt authorities to launch another crackdown on commodity financing. Spot checks on 25 gold processing companies such as jewelers, showed they made a combined profit of more than CNY900 million by using the bank loans to take advantage of the difference between onshore and offshore interest rates, as well the appreciation of the currency. Chinese firms could have locked up as much as 1,000 tons of gold in financing deals by the end of 2013, the World Gold Council (WGC) said in April, indicating a big slice of imports has been used to raise funds due to tight credit conditions, rather than to meet consumer demand. At current prices, that would be worth about USD42 billion. The NAO also said it found problems with coal, corn and cotton reserves. Traders warned that warehouse fraud could lead to the drying up of credit for all but large firms and state-owned enterprises (SOEs) which dominate commodities trading. Thousands of small firms will be faced with tougher bank requirements for financing, causing them to sell down stockpiles, squeezing demand for metals and other raw materials. According to sources, Standard Chartered Bank has suspended some commodity financing deals in Qingdao Port after authorities there launched a probe into a private trading firm, Decheng Mining, that is suspected of duplicating warehouse certificates to use metal stockpiles multiple times to raise financing. Goldman Sachs estimates that commodity-backed deals account for as much as USD160 billion, or about 30% of China’s short-term foreign-exchange borrowing.
China to be net investor as ODI exceeds FDI
By : fcccadmin
China’s outward investment (ODI) is very likely to exceed foreign direct investment (FDI) inflows this year, making the country a net investor, according to the United Nations Conference on Trade and Development’s World Investment Report. This “inevitable trend” will have “great significance in reshaping the economic structure and long-term development” of China, the report said. In 2013, China’s foreign direct investment rose by 2.3% year-on-year to USD123.9 billion, ranking second in the world after the United States. “The quality of FDI inflows improved, with more into high-end manufacturing and services with high added value,” said Zhan Xiaoning, Director of the Investment and Enterprise Division at UNCTAD. In 2013, investment outflows from China increased by 15% year-on-year to USD101 billion, the third highest in the world after the United States and Japan, the report said. As China continues to deregulate outbound investment, outflows to developed and developing countries are expected to grow further, it said. “China’s economic landscape, driven by exports and foreign investment in the past three decades, will change significantly. Outward investment will serve as an important driver for industrial upgrading and economic growth,” Zhan said. Liang Guoyong, Economic Affairs Officer at UNCTAD, said: “It is very hard to predict when China will become a net investor, but the trend is inevitable.” Huo Jianguo, President of the Chinese Academy of International Trade and Economic Cooperation, a Ministry of Commerce (MOFCOM) think tank, said China’s new role as a net investor will help ease trade frictions.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world