MNI China Press Digest April 13: FTZs, Savings, Service Sector

Highlights from Chinese press reports on Thursday:

• Authorities should relax operating rules for Free Trade Zones (FTZ) to leverage high-quality growth and further open the economy, according to a Yicai editorial. Local governments could attract and utilise more foreign investment if they make reforms and policymakers use FTZs to test new ideas, which can be implemented nationwide if proven successful. The news outlet highlighted Tesla’s energy storage factory in Lingang FTZ in Shanghai as an example of high-quality opening, as the firm will establish a strong industrial chain in and around the zone.
• Residents are continuing to save more in Q1 and will switch to consumption only after income levels recover, Yicai news agency said. Household deposits increased by CNY6.2 trillion in January, CNY792.6 billion in February, and CNY2.9 trillion in March, according to The People’s Bank of China data. Lower and middle income wages will increase this year as the economy recovers and this will drive consumer demand, an analyst said.
• China’s growth model now depends more on service sector investment than real-estate, according to Liu Shijin, vice chairman of the Development Research Center of the State Council. Authorities should pay more attention to the service sector and orientate development towards consumption and include more support for digital technology, and green innovation investment, he said. Consumption will continue to recover this year and increasing household incomes will kick start strong demand for durable goods. (Source: 21st Century Herald)