China has sent its clearest signal yet that it will throw more policy weight and coordination to further prop up its economy with a massive consumer market and robust industrial prowess to cope with fast evolving external risks, as top policymakers start to draft a key document that would set the tone for economic and social development for at least the next five years.
While emphasis on the "domestic economy" at a top meeting on Thursday suggests a major shift in focus from export-oriented policies in the past several decades, it is not meant to isolate itself, experts noted.
Instead, the experts stressed, the shift is a result of comprehensive calculations of both the massive domestic potential and the deteriorating external environment for the Chinese economy. The move will not only help further lift the Chinese economy, but also benefit a world economy in dire need of new growth impetus, they added.
A meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee, the top decision-making body, reaffirmed that China will form a new development pattern centered on "internal circulation," which should also be better supplemented by the "external circulation," according to a statement released after the meeting.
The meeting attended by top leaders concluded that while China remains in "a period of strategic opportunity for development," it also faces a "protracted war" with "long- and medium-term" challenges and risks, the Xinhua News Agency reported. The meeting also decided that the fifth plenary session of the 19th CPC Central Committee, where proposals for the 14th Five-Year Plan (2021-25) for social and economic development will be assessed, will be held in Beijing in October.
While Chinese officials have been repeatedly stressing the importance of boosting the domestic economy to cope with external challenges and risks in recent years amid slowing global growth and rising trade tensions, especially since the COVID-19 pandemic, the emphasis at the meeting on Thursday represents a formal adoption of the policy shift that will shape China's economic policies for at least the next five years, analysts said.
"The policy shift also marks a milestone in China's economic development that we are moving away from the export-oriented economy toward a high-quality, domestically-driven economy that will be more resilient to risks and challenges," Dong Dengxin, director of the Finance and Securities Institute at the Wuhan University of Science and Technology, told the Global Times on Friday.
That shift in economic growth is ongoing, with growth becoming less reliant on exports. In 2019, internal demand accounted for 89 percent of China's GDP growth of 6.1 percent year-on-year. This year, as the COVID-19 pandemic has brought global trade to a near standstill, China's exports shrank by 6.6 percent in the first half of the year, and the prospects for a quick rebound remains dim as the deadly virus continues to ravage major economies across the world.
Against this backdrop, the emphasis on the "internal circulation" is aimed at fully realizing the "considerable" domestic potential to cope with those challenges and risks, Cheng Shi, chief economist at ICBC International Holdings in Hong Kong, wrote in a note sent to the Global Times on Friday.
"The development and expansion of 'internal circulation' will help offset external impact under the global turmoil, and, in turn, make the Chinese economy more flexible in the 'internal circulation,'" Cheng wrote, noting that focus on "internal circulation" should be targeting industrial and consumption upgrade.
The Bukit Asam Coal Power Plant of Indonesia is under construction. The China-Indonesia joint project is a part of the two countries' cooperation on the Belt and Road Initiative. File photo: cnsphoto
However, despite the emphasis on the domestic economy, China will continue to engage overseas markets, particularly emerging markets in Asia and other parts of the world, through the Belt and Road Initiative (BRI) and other global initiatives, analysts said.Following the meeting on Thursday, the Voice of America, a perceived propaganda arm of the US government, questioned in a report on Friday whether China was self-isolating or has no other choice in making the shift.
"This is definitely not self-isolation nor a retreat because of global risks," Song Guoyou, deputy director of the Center for American Studies at Fudan University, told the Global Times on Friday. "In fact, this is about the long-term growth paths of the Chinese economy, rather than some short-term challenges and risks."
Though Chinese exports have taken a lesser role in China's economic output in recent years, China remains the world's largest trading nation, with total trade in goods reaching 31.54 trillion yuan ($4.51 trillion) in 2019, according to official data. Trade with countries along the BRI and the Southeast Asian countries is steadily rising. In the first half of the year, the Association of Southeast Asian Nations surpassed the EU as China's biggest trading partner, with trade worth 2.09 trillion yuan.
Song said that giving priority to the domestic economy is meant to remove the hurdles of domestic economic development and make it more sufficient, which should also be conducive for other economies and the global economy, as they will rely on China's growth to recover from the COVID-19.
China has been contributing over 30 percent to global GDP growth in 2019. The massive Chinese consumption market with an ever-growing middle class is the biggest source of revenue for many across the world, from soybean farmers in the US to carmakers in Germany, to fashion houses in France.
"Given the size of the Chinese economy and the market, whatever domestic policy we may or may not take does not change the fact that the Chinese economy will only become increasingly intertwined with the global economy, not the opposite," Dong said.
By Wang Cong on July 31 2020 for the Global Times (China).
Some 396,000 tons of Russian liquefied natural gas (LNG) were exported to China in June, according to a Bloomberg report citing data from China’s General Administration of Customs.
That figure reflects a 20.7 percent rise compared to May.
Statistics showed that US LNG exports to China amounted to 340,000 tons during the same...
Some 396,000 tons of Russian liquefied natural gas (LNG) were exported to China in June, according to a Bloomberg report citing data from China’s General Administration of Customs.
That figure reflects a 20.7 percent rise compared to May.
Statistics showed that US LNG exports to China amounted to 340,000 tons during the same...
The first freight train from China bound for a major logistics center in Moscow arrived in the Russian capital on Thursday, heralding a boost in rail-borne trade between the two countries.
The train left Shenyang, the capital of Northeast China's Liaoning province, on July 3, with its final destination the Berelast...
The first freight train from China bound for a major logistics center in Moscow arrived in the Russian capital on Thursday, heralding a boost in rail-borne trade between the two countries.
The train left Shenyang, the capital of Northeast China's Liaoning province, on July 3, with its final destination the Berelast...
Frequent and deep communications between China and the EU reflects both sides' political determination and active actions in implementing the important consensus reached during the 22nd China-EU leaders' meeting, reflecting that the nature of China-EU bilateral relation is partnership, Foreign Ministry spokesperson Wang Wenbin said at a regular press conference...
Frequent and deep communications between China and the EU reflects both sides' political determination and active actions in implementing the important consensus reached during the 22nd China-EU leaders' meeting, reflecting that the nature of China-EU bilateral relation is partnership, Foreign Ministry spokesperson Wang Wenbin said at a regular press conference...
A freight train left Yiwu, East China's Zhejiang Province for Madrid, Spain on Friday, carrying 100 containers of daily commodities and personal protective equipment (PPE), marking the 400th freight train running on the China-Europe freight railway this year.
The Yiwu-Madrid railway has become an important logistics channel to ensure trade exchanges...
A freight train left Yiwu, East China's Zhejiang Province for Madrid, Spain on Friday, carrying 100 containers of daily commodities and personal protective equipment (PPE), marking the 400th freight train running on the China-Europe freight railway this year.
The Yiwu-Madrid railway has become an important logistics channel to ensure trade exchanges...
V-ZUG, the Swiss manufacturer of household appliances, plans to open more stores in both top- and second-tier cites in China, and will introduce new digitalization of related products into the country's lucrative market for the long term.
Many opportunities arise from Chinese consumers' growing demand for high-end home appliances, such as...
V-ZUG, the Swiss manufacturer of household appliances, plans to open more stores in both top- and second-tier cites in China, and will introduce new digitalization of related products into the country's lucrative market for the long term.
Many opportunities arise from Chinese consumers' growing demand for high-end home appliances, such as...
The total value of social logistics goods reached 123.4 trillion yuan ($17.69 trillion) in the first half of the year, People's Daily reported on Friday.
As epidemic prevention and control efforts achieved results, China's logistics operations quickly recovered in the first half of this year, and the demand structure was further...
The total value of social logistics goods reached 123.4 trillion yuan ($17.69 trillion) in the first half of the year, People's Daily reported on Friday.
As epidemic prevention and control efforts achieved results, China's logistics operations quickly recovered in the first half of this year, and the demand structure was further...
Most geopolitical analysis is pretty down to Earth. But don’t forget to look up: China’s influence is rocketing above the heavens.
On July 23, a Long March 5 rocket blasted off from the Wenchen Launch Center on China’s Hainan Island. Equipped with a lander, an orbiter and a rover, the Chinese...
Most geopolitical analysis is pretty down to Earth. But don’t forget to look up: China’s influence is rocketing above the heavens.
On July 23, a Long March 5 rocket blasted off from the Wenchen Launch Center on China’s Hainan Island. Equipped with a lander, an orbiter and a rover, the Chinese...
Economic growth at some regional levels in China posted robust rebounds in the first half as a majority of provinces and autonomous regions outperformed the national economy in growth and returned to expansion mode, said the National Bureau of Statistics.
As of Sunday, 16 provinces and autonomous regions reported positive GDP...
Economic growth at some regional levels in China posted robust rebounds in the first half as a majority of provinces and autonomous regions outperformed the national economy in growth and returned to expansion mode, said the National Bureau of Statistics.
As of Sunday, 16 provinces and autonomous regions reported positive GDP...
The coronavirus outbreak in Xinjiang Uygur Autonomous Region has had a limited impact on production in the region which supplies 80 percent of China's cotton, said an industry observer.
Due to heightened epidemic prevention and control in Xinjiang, travel controls have been strengthened in all parts of the region, and the...
The coronavirus outbreak in Xinjiang Uygur Autonomous Region has had a limited impact on production in the region which supplies 80 percent of China's cotton, said an industry observer.
Due to heightened epidemic prevention and control in Xinjiang, travel controls have been strengthened in all parts of the region, and the...
The railway freight volume reflects China's economic recovery with a number of indicators setting new records, Sina Finance reported on Tuesday.
Despite challenges and great pressure, China's railway freight has continued to inject strong momentum into the country's epidemic prevention and control as well as economic and social development.
In the first...
The railway freight volume reflects China's economic recovery with a number of indicators setting new records, Sina Finance reported on Tuesday.
Despite challenges and great pressure, China's railway freight has continued to inject strong momentum into the country's epidemic prevention and control as well as economic and social development.
In the first...
China's top securities regulator said on Friday the country will gradually unify and streamline channels for foreign investors to trade in domestic markets, as part of its efforts to advance capital market opening-up this year.
The country will also improve the rules governing overseas listed Chinese firms and work with foreign...
China's top securities regulator said on Friday the country will gradually unify and streamline channels for foreign investors to trade in domestic markets, as part of its efforts to advance capital market opening-up this year.
The country will also improve the rules governing overseas listed Chinese firms and work with foreign...
China remains attractive to foreign companies, as an overwhelming majority of them questioned in a survey have expressed a desire to continue to invest and operate in the country, a commerce official said on Thursday.
Some 99.1 percent of respondents in a recent survey, conducted by the Ministry of Commerce (MOC),...
China remains attractive to foreign companies, as an overwhelming majority of them questioned in a survey have expressed a desire to continue to invest and operate in the country, a commerce official said on Thursday.
Some 99.1 percent of respondents in a recent survey, conducted by the Ministry of Commerce (MOC),...
China's official purchasing managers' index (PMI) for the manufacturing sector rose to a four-month high in July, indicating that the sector accelerated recovery from the COVID-19 epidemic.
The manufacturing PMI rose for the second consecutive month in July and stood at 51.1, versus 50.9 in June, the National Bureau of Statistics...
China's official purchasing managers' index (PMI) for the manufacturing sector rose to a four-month high in July, indicating that the sector accelerated recovery from the COVID-19 epidemic.
The manufacturing PMI rose for the second consecutive month in July and stood at 51.1, versus 50.9 in June, the National Bureau of Statistics...
The faster-than-expected expansion of China's manufacturing sector in July indicates a steady recovery of the economy during the second half of the year, experts said on Friday.
The government is expected to ramp up fiscal support to boost domestic demand and lend targeted help to hard-hit small businesses, as part of...
The faster-than-expected expansion of China's manufacturing sector in July indicates a steady recovery of the economy during the second half of the year, experts said on Friday.
The government is expected to ramp up fiscal support to boost domestic demand and lend targeted help to hard-hit small businesses, as part of...
Chinese authorities have issued a circular to further cut costs for enterprises to help them tide over the COVID-19 pandemic.
The average costs of broadband for enterprises will fall by 15 percent this year, said the circular jointly issued by four government departments including the National Development and Reform Commission, the...
Chinese authorities have issued a circular to further cut costs for enterprises to help them tide over the COVID-19 pandemic.
The average costs of broadband for enterprises will fall by 15 percent this year, said the circular jointly issued by four government departments including the National Development and Reform Commission, the...
The Chinese government will continually support the efforts of the Asian Infrastructure Investment Bank (AIIB) to develop into a high-standard multilateral development institution and promote global economic governance, Finance Minister Liu Kun said during the bank's fifth annual meeting on Tuesday.
After five years of operating, the AIIB now has 102...
The Chinese government will continually support the efforts of the Asian Infrastructure Investment Bank (AIIB) to develop into a high-standard multilateral development institution and promote global economic governance, Finance Minister Liu Kun said during the bank's fifth annual meeting on Tuesday.
After five years of operating, the AIIB now has 102...
Chinese shares clawed back lost ground on Monday after data showed that China's economic recovery is continuing to build momentum, but heightened Sino-U.S. tensions kept gains in check.
At the close, the Shanghai Composite index was up 0.26% at 3,205.23 and the blue-chip CSI300 index was up 0.51%.
Industrial firms' profits rose...
Chinese shares clawed back lost ground on Monday after data showed that China's economic recovery is continuing to build momentum, but heightened Sino-U.S. tensions kept gains in check.
At the close, the Shanghai Composite index was up 0.26% at 3,205.23 and the blue-chip CSI300 index was up 0.51%.
Industrial firms' profits rose...
China's top 500 companies saw their total revenue reach 50.5 trillion yuan ($7.21 trillion), up 11 percent on a yearly basis, over half of the country's GDP that broke through 99 trillion yuan last year, according to a list co-released by Fortune magazine's Chinese edition and China International Capital Corporation...
China's top 500 companies saw their total revenue reach 50.5 trillion yuan ($7.21 trillion), up 11 percent on a yearly basis, over half of the country's GDP that broke through 99 trillion yuan last year, according to a list co-released by Fortune magazine's Chinese edition and China International Capital Corporation...
Profits of China's major industrial firms in June totaled 666.55 billion yuan (about $95.18 billion), increasing by 11.5 percent year on year, data from the National Bureau of Statistics (NBS) showed Monday.
The growth widened 5.5 percentage points from that in May, said NBS senior statistician Zhu Hong.
The quickened growth in...
Profits of China's major industrial firms in June totaled 666.55 billion yuan (about $95.18 billion), increasing by 11.5 percent year on year, data from the National Bureau of Statistics (NBS) showed Monday.
The growth widened 5.5 percentage points from that in May, said NBS senior statistician Zhu Hong.
The quickened growth in...
China's economy will grow 2.5 percent this year, Bloomberg News has reported, citing the UBS Group AG that raised its forecast from 1.5 percent due to the recovery in domestic consumption and strong investment.
Chinese economy will expand 5.5 percent this quarter from a year earlier, and 6 percent in the...
China's economy will grow 2.5 percent this year, Bloomberg News has reported, citing the UBS Group AG that raised its forecast from 1.5 percent due to the recovery in domestic consumption and strong investment.
Chinese economy will expand 5.5 percent this quarter from a year earlier, and 6 percent in the...
China and Japan have seen a commendable result in bilateral trade, with dialogue and exchanges in place in varied sectors in the first half of this year, despite the pandemic, the spokesperson for China's Foreign Ministry said Thursday.
This came after a video conference between Chinese State Councilor and Foreign Minister...
China and Japan have seen a commendable result in bilateral trade, with dialogue and exchanges in place in varied sectors in the first half of this year, despite the pandemic, the spokesperson for China's Foreign Ministry said Thursday.
This came after a video conference between Chinese State Councilor and Foreign Minister...
China and Singapore are willing to work together to keep the global supply chain running and trade flowing smoothly amid the disruptions of the global economy from the COVID-19 outbreak, said officials from the two countries.
Deputy head of the National Development and Reform Commission Ning Jizhe and Singapore's Minister for...
China and Singapore are willing to work together to keep the global supply chain running and trade flowing smoothly amid the disruptions of the global economy from the COVID-19 outbreak, said officials from the two countries.
Deputy head of the National Development and Reform Commission Ning Jizhe and Singapore's Minister for...
Once India attained independence and China her revolution, the perception of their borders with one another underwent a drastic change and the catalyst to that change was the Chinese move into Tibet in 1950.
The essential dispute until then rested on the possible negotiations around the Ardagh–Johnson line in the Western...
Once India attained independence and China her revolution, the perception of their borders with one another underwent a drastic change and the catalyst to that change was the Chinese move into Tibet in 1950.
The essential dispute until then rested on the possible negotiations around the Ardagh–Johnson line in the Western...
Mexican business groups and enterprises are expressing high expectations for trade and investment in China and believe that bilateral business relations will further improve, despite the ongoing epidemic.
The Mexican Chamber of Commerce in China said on Wednesday that a survey conducted from late June to early July found that companies...
Mexican business groups and enterprises are expressing high expectations for trade and investment in China and believe that bilateral business relations will further improve, despite the ongoing epidemic.
The Mexican Chamber of Commerce in China said on Wednesday that a survey conducted from late June to early July found that companies...
In another attempt to crack down on China's tech rise, the US has sent an explicit threat to Brazil, the largest economy in Latin America which traditionally is dubbed "America's backyard," warning that the nation could "face consequences" if it picks the world's largest telecom equipment maker Huawei for its...
In another attempt to crack down on China's tech rise, the US has sent an explicit threat to Brazil, the largest economy in Latin America which traditionally is dubbed "America's backyard," warning that the nation could "face consequences" if it picks the world's largest telecom equipment maker Huawei for its...
Imports from the US have progressed in recent months, yet joint efforts from firms on both sides are still needed for the phase one trade agreement to overcome the difficulties of the COVID-19 pandemic, said a Chinese official.
Ning Jizhe, deputy head of China's National Development and Reform Commission (NDRC), the...
Imports from the US have progressed in recent months, yet joint efforts from firms on both sides are still needed for the phase one trade agreement to overcome the difficulties of the COVID-19 pandemic, said a Chinese official.
Ning Jizhe, deputy head of China's National Development and Reform Commission (NDRC), the...
Oil prices edged lower on Monday, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand recovery.
Brent crude dipped 53 cents, or 1.2%, to $42.81 a barrel by 1340 GMT, while U.S. West Texas Intermediate (WTI) crude dropped to $40.88 a barrel,...
Oil prices edged lower on Monday, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand recovery.
Brent crude dipped 53 cents, or 1.2%, to $42.81 a barrel by 1340 GMT, while U.S. West Texas Intermediate (WTI) crude dropped to $40.88 a barrel,...
British wholesale gas prices were mostly down on Monday due to an oversupplied system and brimming gas stocks.
The within-day contract inched down by 0.05 pence to 13.00 p per therm by 0908 GMT.
Gas for August delivery was down 0.19 pence at 13.40 p/therm.
The UK gas system was 3.6 million cubic...
British wholesale gas prices were mostly down on Monday due to an oversupplied system and brimming gas stocks.
The within-day contract inched down by 0.05 pence to 13.00 p per therm by 0908 GMT.
Gas for August delivery was down 0.19 pence at 13.40 p/therm.
The UK gas system was 3.6 million cubic...
Gold stormed to a record high on Monday as investors sought refuge from the possible hit to a pandemic-stricken global economy from an escalation in the U.S.-China spat, which pummelled the dollar.
Spot gold hit a record high of $1,944.73 per ounce, and rose 1.9% to $1,937.24 by 10:22 a.m EDT...
Gold stormed to a record high on Monday as investors sought refuge from the possible hit to a pandemic-stricken global economy from an escalation in the U.S.-China spat, which pummelled the dollar.
Spot gold hit a record high of $1,944.73 per ounce, and rose 1.9% to $1,937.24 by 10:22 a.m EDT...
Copper prices ticked up on Monday, driven by a weaker dollar and expectations of a global demand recovery, but uncertainty about consumption in top consumer China capped gains.
Benchmark copper on the London Metal exchange traded up 0.1% at $6,420 a tonne in official rings.
Prices of the metal, which is used...
Copper prices ticked up on Monday, driven by a weaker dollar and expectations of a global demand recovery, but uncertainty about consumption in top consumer China capped gains.
Benchmark copper on the London Metal exchange traded up 0.1% at $6,420 a tonne in official rings.
Prices of the metal, which is used...
Chicago soybean futures were marginally higher on Monday as strong recent sales of U.S. supplies to China were largely offset by concern about growing tensions between the two countries.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.05% to $8.99-3/4 a bushel by 1012 GMT, while corn...
Chicago soybean futures were marginally higher on Monday as strong recent sales of U.S. supplies to China were largely offset by concern about growing tensions between the two countries.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.05% to $8.99-3/4 a bushel by 1012 GMT, while corn...
The dollar extended its dramatic fall on Friday, putting it on course for its biggest monthly drop in a decade as investors fretted that a rebound in the U.S. economy would be derailed by the struggle to stem the coronavirus epidemic.
Weakness in the U.S. currency propelled the euro higher, with...
The dollar extended its dramatic fall on Friday, putting it on course for its biggest monthly drop in a decade as investors fretted that a rebound in the U.S. economy would be derailed by the struggle to stem the coronavirus epidemic.
Weakness in the U.S. currency propelled the euro higher, with...
European shares recovered from their lowest levels in a month on Friday, as investors looked past a severe economic contraction in the euro zone and on to company earnings, while the euro reached its highest in more than two years, set for its best month in a decade.
The euro zone’s...
European shares recovered from their lowest levels in a month on Friday, as investors looked past a severe economic contraction in the euro zone and on to company earnings, while the euro reached its highest in more than two years, set for its best month in a decade.
The euro zone’s...
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record. Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping...
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record. Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping...
Prompt British wholesale gas prices edged higher on Friday as expectations of cooler weather from Saturday and forecasts for lower output from the country's wind farms boosted demand.
The within-day contract was up 0.25 pence at 13.05 p/therm by 0919 GMT.
The day-ahead contract was up 0.35 p at 13.20 p/therm.
Traders said...
Prompt British wholesale gas prices edged higher on Friday as expectations of cooler weather from Saturday and forecasts for lower output from the country's wind farms boosted demand.
The within-day contract was up 0.25 pence at 13.05 p/therm by 0919 GMT.
The day-ahead contract was up 0.35 p at 13.20 p/therm.
Traders said...
Gold rose on Friday, trading near its all time peak, as a sliding dollar and dire economic numbers from far and wide sparked a rush to safety in bullion, which is on course for its biggest monthly gain in over four years.
Silver climbed 2% to $23.94 per ounce, on course...
Gold rose on Friday, trading near its all time peak, as a sliding dollar and dire economic numbers from far and wide sparked a rush to safety in bullion, which is on course for its biggest monthly gain in over four years.
Silver climbed 2% to $23.94 per ounce, on course...
Copper prices recovered on Friday and were set for a fourth straight monthly gain, after strong factory activity in top metals consumer China raised hopes about demand. China's factories stepped up activity in July for a fifth consecutive month as the manufacturing Purchasing Manager’s Index marked its highest reading since...
Copper prices recovered on Friday and were set for a fourth straight monthly gain, after strong factory activity in top metals consumer China raised hopes about demand. China's factories stepped up activity in July for a fifth consecutive month as the manufacturing Purchasing Manager’s Index marked its highest reading since...
U.S. corn futures were little changed on Thursday, hovering just above one-month lows, as benign crop weather and expectations of a large harvest overshadowed news of massive U.S. corn sales to China, analysts said.
Soybean futures were modestly higher while wheat futures drifted lower.
As of 12:40 p.m. CDT (1740 GMT), Chicago...
U.S. corn futures were little changed on Thursday, hovering just above one-month lows, as benign crop weather and expectations of a large harvest overshadowed news of massive U.S. corn sales to China, analysts said.
Soybean futures were modestly higher while wheat futures drifted lower.
As of 12:40 p.m. CDT (1740 GMT), Chicago...
