MNI China Press Digest July 04: NDRC, MOFCOM, Property

Highlights from Chinese press reports on Tuesday:

• The National Development and Reform Commission said it will listen to private entrepreneurs, propose effective policy measures to help them solve practical problems and create a good development environment for their businesses. The NDRC has recently established a communication mechanism with the private sector and Zheng Shanjie, head at the NDRC, presided over a symposium for private entrepreneurs on Monday. (Source: NDRC website)
• China will introduce export controls on gallium and germanium, two key raw materials used to make semiconductors, according to the Ministry of Commerce . To safeguard national security, exporters will need to obtain a MOFCOM license before exportation. The State Council will make the final decision on cases where MOFCOM believes national security could be impacted. Policymakers will begin implementing the law from August 1, with exporters facing punishment if they fail to follow the correct procedure. According to the Securities Times, China produced 290 tons of gallium and germanium, with global production at 300 tons. (Source: Securities Times)
• China will likely further relax housing policies in first- and second-tier cities as the property market bottomed at end-Q2 after a brief rebound in Q1, said Chen Wenjing, head of market research at China Index Academy. Room for optimising the scope of home-purchase restrictions exists, such as a reduction in transaction taxes and fees. Weakened income expectations, a strong outlook for lower home prices, and concern on unfinished off-plan housing impedes the recovery. Market outlook in H2 depends on the restoration of confidence and the intensity of policy support, Chen said. (Source: 21st Century Business Herald)