MNI China Press Digest April 21: Exports, Real Estate, Demand

Highlights from Chinese press reports on Friday:

• China can not sustain March's strong export performance beyond the initial rapid resumption of production after the Spring Festival, according to Huo Jianguo, former president of the International Trade Research Institute of the Ministry of Commerce. Speaking at a recent conference, Huo said March's data showed China’s exports were still in demand, but external pressure on foreign trade remains unchanged. China should not only focus on new growth areas such as new energy vehicles, solar panels and lithium batteries, but also work to maintain competitive advantages in traditional exports such as mobile phones and computers, he said. (Source: China Economic Review).
• China’s real-estate market will continue its steady Q1 recovery into Q2, according to Chai Qiang, chairman of the Chinese Society of Real Estate Appraisers. Chai said he expects strong growth in the leasing market, with one-third of the population, mainly young people, expected to require leasing accommodation once the urbanisation rate reaches 75%. Although real-estate investment in Q1 had fallen 5.8% y/y, the rate of decline slowed significantly and strong policy support was now leading to a sustainable recovery. (Source: China Economic Journal)
• China must boost household incomes to ensure the consumption rebound is sustainable, according to Guo Liyan, director of the Comprehensive Situation Research Office of the China Macroeconomic Research Institute. Speaking at a recent forum, Guo said the service industry and consumption had shown positive signs of recovery in Q1, but households need to see rising and stable incomes to facilitate a sustained rebound in spending. The government must support SMEs and construct a unified national market this year, she said. (Source: China Economic Journal)