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News from China
China working hard to ensure 'six stabilities'
15th October 2018

 Amid complicated international landscape and new changes in China’s domestic economy, experts around the world believe that the Chinese government has sufficient policy tools to tap its inherent dynamism so as to secure robust and resilient economic growth.

 
These remarks came following the Chinese government’s recent proposal of a target to “stabilize the employment, finance, foreign trade, foreign investment, investment and expectations,” collectively known as the “six stabilities.”
 
Since the beginning of this year, despite fluctuations of certain economic indicators, the Chinese economy has registered stable growth, with the four major macroeconomic indicators of economic growth, employment, CPI and the international balance of payments basically meeting expectations.
 
In its latest World Economic Outlook report released on October 8, the International Monetary Fund kept China’s economic growth forecast unchanged at 6.6 percent.
 
IMF chief economist Maurice Obstfeld recently said that the Chinese economy saw robust performance in the first half of this year, and that the recent figures which might not be so ideal are still in line with expectations, considering that measures such as strengthening financial supervision and preventing risks would drag down economic growth to a certain degree.
 
Changyong Rhee, director of the IMF’s Asia and Pacific department, says the slowdown in growth is a result of the government’s initiative to deleverage and regulate the economy, which in fact produces a “high-quality” slowdown.
 
Rhee expressed confidence that the Chinese government has the policy tools to stabilize economic growth and offset negative impacts from the economic and trade frictions with the United States, but meanwhile, deleveraging should forge ahead to ensure more stable and resilient growth in the medium term.
 
Subhomoy Bhattacharjee, a consultant with the Research and Information System for Developing Countries based in India, said China’s economy, which has started to shift from high speed growth to medium-high speed growth, has stepped into the deep waters of economic restructuring, where certain suffering and pain are inevitable.
 
The government embraces change and has a mature and sensible understanding of economic development, as indicated by its economic policy adjustments in recent years, he said, adding these adjustments will benefit China’s economy in the long run.
 
Even though the favorable international environment plays a role in China’s economic success, Bhattacharjee said, its achievements should be mainly attributed to the inner dynamism generated by its domestic policies.
Source: Shanghai Daily, October 15, 2018
China criticizes exclusionism in free trade deals
12th October 2018

 China's Ministry of Commerce on Thursday said exclusionism should not be pursued in free trade deals.

 
The remarks were made with regards to a provision in a new trade agreement reached by the United States, Mexico and Canada.
 
"The principle of openness and inclusion should be upheld [in establishing free trade areas], while other members' capacity for external relations should not be restricted. There should be no exclusionism," said MOC spokesperson Gao Feng at a press conference.
 
He was commenting on a provision in the new "United States-Mexico-Canada Agreement," which stipulates that if a member country wants to enter a free trade deal with a "non-market" economy, it must notify the others three months before starting negotiations, while the others can quit within six months to form their own bilateral trade pact.
 
"Clauses on the so-called 'non-market' economies do not exist in the World Trade Organization's multilateral trade rules. They are only included in certain members' domestic laws," Gao said. "China opposes the practice of placing domestic laws above international laws and imposing one country's will on others."
 
"A country should attract trade partners with factors such as market potential and policy environment, based on the principle of mutual respect, equal negotiation and mutual benefits.
 
"We believe that every economy enjoys autonomy in developing foreign trade relations and will value their trade ties with China in line with their demand for mutually beneficial cooperation."
 
Gao said the most important thing for China is to follow its own path and do its own job.
 
"The country will continue to press ahead with supply-side structural reform and optimize its regional, industrial and product structures to push for high-quality development," he said.
 
"China will continue to firmly support trade liberalization and facilitation and back the multilateral trading system, and work with trade partners to make the global trade mechanism fairer and more equitable."
Source: Shanghai Daily, October 12, 2018
Pudong project cutting red tape for business
11th October 2018

 Pudong District is looking at expanding a pilot project to cut red tape, strengthen regulations and improve service, a senior official said yesterday.

 
Under the pilot, the plan to separate the processing of operating permits and business licenses is now fully operational, district deputy director Ji Zhaoliang told reporters yesterday.
 
The aim of one-stop government services has also been implemented, allowing approval for 327 enterprise-related procedures to be completed online or with a single visit to a service center.
 
And the actual processing time has been cut to an average 3.3 working days — 85 percent shorter than the legal maximum of 22 days.
 
"The reform of separating operating permits and business licenses not only simplifies  the single issue of examination and approval but, more importantly, it changes the government's approval management mode," Ji said.
 
The strategy unleashes the vitality of the market, improves the business environment, expands opening-up of the economy and promotes the development of industries.
 
"For the next step, the district will further explore new ways to improve the reforms, aiming to offer the most streamlined market access, the most stable risk prevention and the most convenient government services," Ji said.
Source: Shanghai Daily, October 11, 2018
Robots, humans and 'efficient cooperation'
10th October 2018

 Factories completely operated by robots may be the popular vision for the future of manufacturing, but the human factor cannot be ignored, according to Xiao Weirong, head of B&R China, an arm of the Austrian-based company committed to industrial automation.

 
“In plain words, smart manufacturing means the efficient cooperation between humans and machines in the production process, with humans doing things suitable for humans and machines doing things suitable for machines,” said Xiao.
 
“Smart manufacturing” is the big buzz word in global industry nowadays, reflected in development strategies such as Germany’s Industry 4.0 plan and China’s Made in China 2025 initiative.
 
However, many people tend to equate the term with complete automation. Xiao disputes that, arguing that smart manufacturing means efficient cooperation man and machine. Human beings, he said, will always be essential to smart manufacturing, no matter to what extent it develops.
 
Xiao admitted that he, too, once equated smart manufacturing with unmanned automation.
 
“I believed that automation meant machines did everything and humans were not essential when I was an engineer in Germany,” he said. “In working on my first project, I made the software completely unmanned, but later I saw that if the machine go wrong, humans cannot intercede with its unmanned functions. The co-existence of humans and machines is the basis for industrial automation. Smart manufacturing means humans and machines cooperating harmoniously.”
 
How to improve that cooperation has been the focus of B&R. Last April, Switzerland-based ABB, a giant in the robotics field, acquired B&R and incorporated its technology and expertise into its own industrial automation unit.
 
“Many people think that smart manufacturing means adding a lot of algorithms to software, but, in fact, algorithms eat up a good deal of computing resources and slow down machines,” Xiao said. “That means, in the end, that machine efficiency is reduced and costs increased. Time cost is part of total cost.”
 
An emphasis on the value of humans in smart manufacturing has driven B&R to undertake the training of professionals in automation, in tandem with developing automation technologies.
 
Xiao’s years as a student in Germany gave him an opportunity to learn the value of vocational education. He said he wants to apply that experience to training professional technicians, whose numbers in China fall below those of academic experts.
 
B&R’s automation school was established to address that gap. It offers training classes to customers and employees, in cooperation with technical colleges and universities. Among its academic allies are Shandong University, Northwestern Polytechnical University and Donghua University.
 
By building joint labs with B&R, universities and colleges can offer the latest automation technologies to students, shorten the distance between books and technical development, and enhance the practical abilities of students.
Source: Shanghai Daily, October 10, 2018

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