MNI China Press Digest July 12: Q2 GDP, SOEs, EU EVs

Highlights from Chinese press reports on Friday:

• China’s GDP growth may slow to 5.04% in Q2 from Q1’s 5.3%, due to weak demand, economists told Yicai.com. Economists expect industrial output to grow 4.94% in June, compared to May’s 5.6%, amid declines in industrial profits and manufacturing activity. Retail sales may fall slightly to 3.63%, from May's 3.7%. Economists also predicted a 3.84% gain in Jan-June fixed-asset investment, lower than the previous 4%, with policy support for manufacturing investment remaining robust to help offset real estate investment decline. June macroeconomic data will be released next Monday.
• SOEs have increased restructuring activity by 120% y/y so far this year, China Securities Journal reported. Technology-based SOEs may lead the next M&A boom given policymakers’ call to develop “new quality productive forces”. Firms in chemical, electric power and public utilities were particularly active, and would enhance their competitiveness by integrating with “new economy” firms in internet software and medical equipment sectors, the Journal said, citing analysts.
• Beijing hopes the EU can “face the fact” that China's EV competitive advantage does not come from subsidies, and make reasonable and objective decisions, He Yongqian, a spokesperson for the Ministry of Commerce said late Thursday. Speaking to reporters, He said China-EU automobile cooperation was conducive to common development, with EU industry opposing trade protectionist measures. Regarding China’s investigation on EU brandy imports, the ministry will listen to opinions and arguments from EU exporters at a July 18 meeting, He noted.