Tag Archives: exports

EU boosts Shenzhen exports, up 11%

The US-China trade war appears to be a diminishing concern for city leaders in Shenzhen, judging by the latest data from the city’s Customs department.

According to the Shenzhen Daily, in August, Shenzhen’s exports shot up 11.1% YoY, bringing its total for the first eight months to RMB 1.4 trillion, up 5.5%. Driving this was trade with the EU and countries along the Belt and Road Initiative. Although it is now standard practice in mainland media reports to not mention trade with the US, the data shows trade with the EU came in at RMB 28.93 billion in August, up a healthy 25.2% YoY. Countries along the Belt and Road Initiative were RMB 58.37 billion, up 9.2% YoY.

Export tax rebates appear to have helped, as exports of Christmas products and ceramic products increased by more than 80%, while household electrical appliances rose by more than 20%.

Private enterprises continued to take market share from SOEs. In August, the split went to 60/40, up 3.6 percentage points from July.

Food held up the import numbers. In August, agricultural products rose 17.1%. Fresh fruits and nuts, meat and chop, seawater products and other consumer products increased by more than 20%.

Dongguan and Foshan: contrasts and strengths

Dongguan and Foshan, the two cities most closely linked to Guangzhou, have been dueling for attention and prestige for decades. Both are “Tier 2”, behind Guangzhou and Shenzhen, yet with lofty ambitions. Trade data from the first half of the year paints an interesting picture of how each is doing. (We have City features, hyperlinked above, that are worth reading, in case you missed them.)

Foshan has the bigger economy, but in recent years Dongguan has been closing the gap thanks to large hi-tech investments by some of the country’s biggest manufacturers. It also has a bigger foreign trade sector, nearly three times the size of Foshan’s, which illustrates how Dongguan is more like Shenzhen and Foshan is more like Guangzhou.

Continue reading Dongguan and Foshan: contrasts and strengths

Shenzhen’s foreign trade stats point to change

There is an interesting change under way in the structure of Shenzhen’s economy, which is starting to show up better in its trade statistics. While imports continue to fall, exports are recovering, according to the latest data from the city’s Customs. Overall trade at RMB1.34 trillion for the first half was down 0.9% YoY, which was 0.6 percentage points lower than the previous five months, i.e. June saw a continued deceleration. This was due to sagging demand for imports, at RMB580.08 billion, which were down 7.8% (0.8 percentage points lower than the previous five months). Exports got a boost, however, apparently from targeted rebate support in certain sectors as well as new sectors taking off. They reached RMB757.14 billion, up 5.1%, which was 0.3 percentage points higher than the previous five months). 

Continue reading Shenzhen’s foreign trade stats point to change

Guangdong GDP up 6.5%

Following the release last week of national data showing the country’s economy had slowed to its lowest growth rate in three decades (6.2%), the National Bureau of Statistics has released data showing Guangdong’s GDP grew faster than the national average, up 6.5% at RMB5.05 trillion. 

Highlights of the data, according to the provincial government, were:

Continue reading Guangdong GDP up 6.5%

GBA Briefs: 28/6/2019

Huawei Wants Talent:Huawei’s founder Ren Zhenfei said in an email to all the company’s staff that Huawei will recruit 20-30 “genius youth” from around the world this year. The number will be increased to 200-300 next year. “These geniuses will be like pond loaches to dive into our organization and activate our teams,” he said. Read more. 

Foshan Beckons:Foshan is getting in on the game of attracting Hong Kong and Macau youth, setting up its Sanlongwan Innovation Zone which will provide supporting services as well as subsidies for young people from the two SARs. Read more

Zhaoqing Jumps:Zhaoqing’s exports jumped 10.7% to RMB9.63 billion in the first five months, led by mechanical and electrical products, which accounted for 37.1% of the total. Read more

DCH Delivers:Hong Kong’s Dah Chong Hong Holdings has launched a logistics center in Hengqin’s Guangdong-Macau Cooperation Industrial Park with an investment of RMB250 million. Read more

Hydrogen Trucks:Foshan FEiCHi Bus company has delivered 100 hydrogen fuel logistic vehicles to Shenzhen, adding to the last 70-unit delivery at the end of last year. Read more

CLP Awakes: CLP Holdings, one of two major electricity providers in Hong Kong, is working with start-ups to bring itself and its customers into the digital era. Read more. 

HK IPO Arrests: Hong Kong’s securities regulator and anti-graft agency have arrested a former executive of the Hong Kong bourse’s initial public offering vetting team and two of his associates for suspected misconduct of helping over 30 unqualified applicants to go public. Read more. 

E-Smokes Out:Shenzhen has added e-cigarettes to its smoking control list, further tightening the smoking ban in public places including bus platforms and waiting areas in public institutions. Read more. 

GBA Briefs 26/06/2019

Drone Wars: Shenzhen-based drone maker DJI plans to start building drones at a factory in California amid security concerns raised by some US lawmakers. Read more.

Competitive Cities:Shenzhen was the most economically competitive city in China in 2018 for a fifth consecutive year but Hong Kong leads the pack in living environment, business environment and development sustainability, according to an annual ranking by Beijing-based National Academy of Economic Strategy. Read more.

New Flights: RwandAir launched thrice a week direct flights between Mumbai, India and Guanghzou, reducing the travel time between the two cities to six and a half hours. Africa-based RwandAir is the only foreign carrier operating in India using a special “fifth freedom rights” to go beyond to China. Read more.

HK Trade: According to Hong Kong’s Census and Statistics Department, in May, the value of total exports of goods decreased by 2.4% over a year earlier to HK$343.1 billion. Concurrently, the value of imports of goods decreased by 4.3% over a year earlier to HK$377.8 billion in May 2019. A visible trade deficit of HK$34.7 billion, equivalent to 9.2% of the value of imports of goods, was recorded in May 2019. Read more. 

Car Quotas:Since the government added 100,000 quotas for car licenses to the market, the lowest auction price of Guangzhou’s license plate in June was RMB14,100, RMB25,900 less than the RMB40,000 recorded in May. Read more

5G Handsets:China Mobile released 42 commercial 5G “terminal devices” jointly with 31 partners, which are expected to be released to the market at the end of July. Read more

Huizhou Picks Up:Huizhou’s private enterprises boosted their share of foreign trade in the first five months, with RMB15 billion in total value, up 38.7% year-on-year, accounting for 13.1% of the city’s total. Read more.

ZTE Patents:ZTE ranks third in the world in terms of the number of essential 5G patents it has obtained. The company has already signed 25 commercial contracts internationally with companies in Europe, Asia-Pacific Area, and Middle East, cooperating with more than 60 foreign telecom operators to offer 5G services. Read more.

Guangdong exports up in May

We have been waiting for Guangdong’s foreign trade data since the national Customs administration indicated recently that the country overall had seen its exports hold up in May. We had already seen Shenzhen’s numbers last week, which were decent, too. Today we see that the province as a whole saw exports accelerate their recent YoY growth trend.

Continue reading Guangdong exports up in May

EU Chamber sees need to tackle ‘regulatory ambiguity’

The European Union Chamber of Commerce in China’s South China Chapter, in cooperation with the independent consultancy firm Roland Berger, has released the European Business in China Business Confidence Survey 2019 .  It shows that while European businesses operating in South China face challenges unique to the region, they also share the concerns of those in other parts of China regarding the Chinese economic slowdown and the US-China trade dispute.

Transparent and effective implementation of local policies is highlighted as the area where improvement is most required, as well the need for unclear regulations to be clarified. However, although South China members expect the number of regulatory obstacles in the region to increase over the next five years, they reported facing less market access restrictions compared to the national average.

Respondents in South China are less concerned about state-owned enterprises (SOEs), as the market share held by SOEs in many sectors in the region is comparatively smaller than in other parts of China. Cases of compelled technology transfers as a condition for market access are also least reported by European companies in South China. However, they are most affected by US tariffs on exports from China.

Although the cost of manufacturing in South China is increasing, the region remains the preferred location for European enterprises to expand business activities. Costs are being closely monitored, with some firms mitigating the impact by increasing automation. The upgrading of local manufacturing in general is considered to be progressing at the right pace by more than half of European members, but there is a need for the local government to communicate its expectations in this respect more clearly. Despite being in its early phase, 43 percent of respondents report having already benefitted in some way from the development of the Greater Bay Area.

“South China remains an attractive destination for European companies, despite the macroeconomic challenges,” said George Lau (pictured above), chair of the European Chamber’s South China Chapter. “If a fair, transparent and predictable business environment can be established, European businesses are prepared to commit even more to the region.”

Find more here.

Russia, Latin America boost trade

Guangdong’s recovering foreign trade numbers have been somewhat surprising since the start of this year. The downturn in US-China relations and the imposition of trade tariffs had been expected to hit China’s biggest exporting province the hardest. And yet trade was still up – barely, at 0.8% YoY in the first four months, but still not as bad as had been feared.

Two reasons for this have been revealed by sources within the Guangdong Customs Department recently: Russia and Latin America.

From January to April this year, trade with Russia jumped 26.5% to RMB19.74 billion. Most of that was exports, at RMB18.5 billion. This is only a fraction of the province’s overall exports, at RMB1.2 trillion, but it is enough to move the needle.

Latin American trade was much larger, and not all of it was exports. According to the Customs data, from January to April, Guangdong traded goods worth RMB92.18 billion yuan from Latin American countries, up 10.3% year-on-year. Exports were RMB64.51 billion, up 6.9%; imports were RMB27.67 billion yuan, up 19.2%. 

Panasonic to expand in Shunde

Japan’s Panasonic has decided to increase its investment and expand production in Shunde, according to Nanfang Daily. The new plant will focus on expanding the production capacity of air purification equipment and fresh air system, which will be sold globally, the company said.

Shunde’s total imports and exports to Japan reached RMB7.93 billion in 2018, a year-on-year increase of 16.5%. Currently more than 50 well-known Japanese companies have invested in Shunde, with a total investment of over US$940 million.

Read more (in Chinese).