MNI China Press Digest Sept 3: Trade-in, Services, PMI

MNI (BEIJING) - Highlights from Chinese press reports on Tuesday:

• China’s consumption will grow 5.5% in 2024 to CNY50.9 trillion, with the consumer trade-in policy adding 1.4 percentage points, according to estimates from Lian Ping, chief economist at the Guangkai Research Institute. Automobile scrap in H1 increased 27.6% y/y, while household appliance sales accelerated 2.1 pp above the same period last year, showing the effectiveness of such policy, Lian said. He noted China’s services spending accounts for 45% of total consumption and needs 15 years to reach developing country levels of 60%.
• China will improve managing its negative list for cross-border service trade and expand the import of urgently needed services, and align with international rules such as CPTPP, Xinhua News Agency reported citing a State Council document on Monday. Authorities will also promote the integrated development of service trade and high-end manufacturing and develop detailed policies in the field of biomedicine, aircraft, automobiles, and engineering machinery, the document said.
• The Caixin manufacturing PMI rebounded above 50 in August after July’s contraction, but remains constrained by external demand pressure, deflationary momentum and logistical delays, according to Wang Zhe, senior economist at Caixin. Wen Bin, chief economist at Minsheng Bank, said policy intensity has increased since August, but authorities need stronger measures to achieve the annual economic and social development goals.