MNI China Press Digest July 15: Consumption, Exports, FDI

Highlights from Chinese press reports on Monday:

• China should promote the service sector to stabilise employment and boost consumption, according to Guan Tao, global chief economist at BOC International, in an article published on Yicai.com. The number of employees in the tertiary industry increased by 10.6 million in 2023, while the primary industry decreased by 7.8 million and the secondary industry rose by 4.2 million, according to Ministry of Human Resources and Social Security data. Authorities must relax access restrictions for the service industry while improving property rights and fair competition, as well as promoting the deep integration of modern service industry with advanced manufacturing and modern agriculture, said Guan.
• China’s exports should grow around 4% in 2024, with H2 shipments supported by a global manufacturing expansion and the U.S. starting an inventory replenishment cycle, according to Wu Chaoming, deputy director at the Caixin Research Institute. Zhou Maohua, macro researcher at the Everbright Bank, said exporters faced trade barriers and FX volatility, but will maintain growth in H2 given China’s complete industrial chain and ability to adapt to global changes. (Source: 21st Century Business Herald)
• Foreign firms utilised CNY141.86 billion of capital in China’s manufacturing industry during H1, up 2.4 pp y/y, the Ministry of Commerce said. High-tech manufacturing saw CNY63.75 billion, accounting for 12.8% of the total, rising 2.4 pp y/y. Medical equipment manufacturing, and technical services utilised FDI rose 87.5% and 43.4%, while Germany and Singapore's investment in China increased 18.1% and 10.5%. (Source: 21st Century Business Herald)