MNI China Press Digest Aug 9: Growth, Export, SOE Reform

Highlights from Chinese press reports on Wednesday:

• China should use economic policy to improve education, healthcare and social welfare to better people's livelihoods and enhance consumption as a driver of growth, according to Wang Xiaolu, deputy director at the National Economic Research Institute. In an interview with Caixin, Wang said China must change the mindset of “more investment the better” which has led to ineffective investment and excess capacity in various industries. Policymakers should expand the scope of unemployment insurance and rebalance demand towards consumption led growth, which lags other countries. (Source: Caixin)
• The decline in China’s export growth will gradually narrow in H2 with the arrival of peak season, as exporters rush to produce orders for Christmas and Halloween. Exports totaled CNY2.02 trillion in July, dropping 9.2% y/y, mainly due to the slowdown in overseas demand, price factors and the high comparison base over the same period last year, said Zhou Maohua, researcher at China Everbright Bank. Though the export of consumer electronics continued to decline on weak demand, one bright spot is that the proportion of exports in automobiles and new energy-related products has continued to rise. (Source: 21st Century Business Herald)
• China’s SOEs need further reform to strengthen their competitiveness and overcome the current “large but weak” status, according to experts interviewed by Securities Daily. Policymakers must transform SOEs from the current model which relies on large scale inputs for production towards an innovation driven high-quality development model. Another expert said SOEs must enhance their control of international industrial chains, build their brands, and use market-oriented mechanisms to achieve results. (Source: Securities Times)