CX Daily: China Grapples With Fiscal Overhaul as Budgets Come Under Pressure

Local debts /

In Depth: China grapples with fiscal overhaul as budgets come under pressure

Covid-19 has put massive pressure on China’s local governments. Fiscal revenue growth has slumped as a result of the slowing economy, the property crisis and tax cuts, while spending has surged to pay for pandemic controls and testing, and to finance infrastructure investment to shore up growth.

Data released Jan. 30 by the Ministry of Finance show that in 2022, revenue in China’s general public budget grew just 0.6% to 20.4 trillion yuan ($3 trillion). Notably, revenue from taxation fell 3.5%, and revenue from the sales of land-use rights fell 23.3%, while nontax revenue jumped 24.4%. Meanwhile, expenditure from the general public budget grew 6.1% from 2021 to 26.1 trillion yuan.

China-Russia /

China’s top diplomat hails Russia ties as ‘resilient, stable’ in meeting with Putin

China-Russia relations remain “mature, resilient and stable” after being tested by “international storms,” China’s top diplomat Wang Yi said during a meeting with Russian President Putin in Moscow, according to the Ministry of Foreign Affairs.

As the Russia-Ukraine war approaches its first anniversary Friday, Wang said China appreciates Russia’s reiteration of its willingness to resolve the conflict through dialogue, adding that China supports a political solution to the crisis.

FINANCE & ECONOMY

Children /

Chinese tech hub to offer handouts to families with more than one child

China’s eastern tech hub Hangzhou is planning to offer subsidies of up to 20,000 yuan ($2,906) to each family with two or three children this year, joining several other major cities in rolling out cash incentives to encourage births as the country grapples with a shrinking population.

Families having a third child this year can get the maximum one-time subsidy if their newborn has a local household registration, or “hukou,” the Hangzhou Municipal Health Commission said Thursday, according to the city’s official newspaper Hangzhou Daily. A one-time payment of 5,000 yuan will be given to two-child families that meet the same conditions.

Hong Kong /

Hong Kong relaunches investment-for-residency program

Hong Kong relaunched an investment-for-residency program suspended in 2015 to lure global talent and new capital into the city.

The program, unveiled Wednesday as part of the government’s budget, will allow applicants who invest a certain amount in the local asset market — excluding property — to reside and pursue development in Hong Kong, Financial Secretary Paul Chan Mo-po said in his budget speech.

Quick hit /

Philippines to join largest trade pact after Senate approval

BUSINESS & TECH

Patents /

NEVs drive surge of auto-related patents in China

China recorded a spike in the number of published patents related to the auto industry in 2022, driven largely by heightened competition in the development of new-energy and internet-connected vehicle technologies.

Last year, 362,200 auto-related patents were published in the world’s largest car market, a jump of 12.9% year-on-year, data from the China Automobile IP Utilization Promotion Center showed. The number of patents specific to new-energy vehicles increased 13.3% and accounted for the largest share of the total at 21.4%.

Buildings /

First of its kind survey shows how many buildings China has

China has close to 600 million buildings in the country, according to a surveythat for the first time put a number on the vast amount of construction that exists nationwide.

Personnel in the housing and urban-rural development sector obtained the data on the number of buildings during China’s first national survey on natural disaster risks, National Disaster Reduction Committee Secretary General Zheng Guoguang said at a press briefing last week. He didn’t elaborate on the number.

Huawei /

Huawei to expand Smart Selection system for deals with automakers

Huawei Technologies Co. plans to set up an automobile alliance to expand its Smart Selection business model to more partners in addition to the current Seres Group, the Chinese electronics giant said Wednesday.

Consumer and Smart Car Business CEO Yu Chengdong said in a media interview that Huawei will cooperate with several automakers to build an ecosystem brand alliance led by Huawei. Following the suspension earlier this month of Huawei auto business chief Wang Jun over the lackluster performance of a competing business model, Yu’s comments suggest that Huawei is doubling down on its Smart Selection approach.

Quick hits /

China M&A deals plunged 34% to nine-year low in 2022

U.S.-sourced rare earths to skip China in supply deal with Japan

Singapore’s CapitaLand Investment launches $746 million China Data Center fund

Long Read /

The safest and most endangered jobs in a ChatGPT world

GALLERY

Deadly China mine collapse