China economic news

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Added On February 12, 2018

According to the State Administration of Foreign Exchange (SAFE), foreign direct investment (FDI) in China's financial institutions came in at some11 billion U.S. dollars last year.
 
While 8.35 billion dollars of investment flowed out, resulting in 3 billion dollars of net inflow.
   
The country's financial institutions made a net investment of 2.8 billion dollars overseas last year.
   
The SAFE has been publishing data on a quarterly basis since 2012 to increase the transparency of foreign exchange statistics. 
   
Earlier official data showed foreign direct investment in non-financial sectors rose 7.9 percent in 2017.
 
SUBTITLE: CHINESE AUTOMAKER BOOSTS PRODUCTION IN INDONESIA
 
Chinese automaker is transferring its high-technological car manufacturing capacity and spreading its working culture to Indonesia under the Belt and Road Initiative. 
 
The production of Wuling Motor in Indonesia has set an example for the transfer of Chinese production forces to the country.
 
Wuling said the production chains in Indonesia have created 3,000 jobs for local people.
 
In less than three years, the subsidiary of the Chinese joint venture company launched two car models.
 
The company expected to sell 30,000 units this year.
 
***FOREIGN TRADE UP IN JAN***
 
According to the General Administration of Customs, China's foreign trade volume rose 16.2 percent year-on-year in January to 2.5 trillion yuan - nearly 400 billion U.S. dollars.
 
Exports edged up 6 percent to top 1.3 trillion yuan in January.
 
While imports surged 30 percent to stand at 1.2 trillion yuan. 
 
The European Union, the United States and ASEAN remain China's top three trading partners, with exports to the United States rising 7.5 percent year on year. 
 
Trade with countries along the Belt and Road rose 17.8 percent year on year - 1.6 percentage points faster than the average.
 
Chinese private enterprises played a bigger role in trade. Their share of the trade edged up 0.2 percentage points compared with January 2016. 
 
There was also more evidence that China's efforts to rebalance the economy is working. 
 
Exports of machinery, electronics and home appliances products continued to expand in January, while the volume of steel exports dropped 36.6 percent year-on-year.
 
***CENTRAL BANK SKIPS OPEN MARKET OPERATIONS***
 
The central bank suspended open market operations for the 11th straight working day on Thursday - saying there was already enough liquidity in the banking system.
 
That's despite the busy Spring Festival coming up, as shoppers hit the stores and demand for cash often surges.
 
The central bank has increasingly relied on open market operations for liquidity management, rather than cuts to interest rates or reserve requirement ratios.
 
China says it will maintain a prudent and neutral monetary policy in 2018 as it strives to balance growth with risk prevention.