China Market Watch: Plans to Become a Leading Auto Manufacturer, Statistics Bureau to Combat Fake Data
China’s plans to become a leading auto manufacturer by 2025
The Ministry of Industry and Information Technology has released an auto industry development plan, which aims to make China a leading auto making powerhouse in a decade. It will do so by encouraging the development of new energy vehicles and relaxing restrictions on foreign ownership in the auto industry. The plan also sets out to make key technologies and markedly increase the share of Chinese brands in the international auto market by 2025.
Though China is currently the world’s largest automobile market, it is still behind many large markets in terms of innovation, core technology, parts manufacturing, and brand development. The plan recognizes this, remarking that China’s industry is “large but not strong”.
The plan emphasized new energy vehicles (NEVs) as a means to advance the industry and close the gap with competitors, with sales of NEVs set to account for over 20 percent of overall automobile sales by 2025.
Excavator market a barometer for public-private partnership projects
The State Council considers the excavator market a barometer for the level of infrastructure construction and public-private partnership (PPP) projects in China, as reported by Yicai Global.
Excavator sales were slow up until September 2016, when sales spiked by 71 percent year-on-year. Sales rose by 55 percent in March over the previous year, and by almost 99 percent for the January-March period, according to the China Construction Machinery Association.
A surge in infrastructure investment by the Chinese government has driven the boom in excavator sales. The Chinese government often uses PPP projects as a means of raising capital to fund its infrastructure programs.
Many analysts consider the government’s large infrastructure investments a key reason China witnessed a faster than expected 6.9 percent growth rate in the first quarter of 2017. However, despite a recent tax relief package, economists expect China’s growth rate to slow in the second half of the year.
China’s statistics bureau sets up arm to combat fake data
The National Bureau of Statistics has set up a special supervisory arm to combat fake data in China’s statistics apparatus. Many question the veracity of China’s economic statistics due to the speed and uniformity of data, and mismatches with other economic indicators.
Earlier this year, the governor of northeastern Liaoning province conceded that the province had faked its fiscal data by at least 20 percent from 2011 to 2014. In 2016, Liaoning’s GDP contracted by 2.2 percent, a far cry from the 8.7 percent growth reported in 2013.
The new supervisory arm is one of several measures introduced by the central government to improve the quality of its data, such as reducing reliance on regional governments to collect statistics. On April 25, the former head of the National Bureau of Statistics was indicted on corruption charges.
China Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, India, Indonesia, Russia, the Silk Road, and Vietnam. For editorial matters please contact us here, and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates is a full service practice in China, providing business intelligence, due diligence, legal, tax, IT, HR, payroll, and advisory services throughout the China and Asian region. For assistance with China business issues or investments into China, please contact us at email@example.com or visit us at www.dezshira.com
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
This Dezan Shira & Associates 2017 China guide provides a comprehensive background and details of all aspects of setting up and operating an American business in China, including due diligence and compliance issues, IP protection, corporate establishment options, calculating tax liabilities, as well as discussing on-going operational issues such as managing bookkeeping, accounts, banking, HR, Payroll, annual license renewals, audit, FCPA compliance and consolidation with US standards and Head Office reporting.
In this issue of China Briefing magazine, we lay out the challenges presented by China’s payroll landscape, including its peculiar Dang An and Hu Kou systems. We then explore how companies of all sizes are leveraging IT-enabled solutions to meet their HR and payroll needs, and why outsourcing payroll is the answer for certain company structures. Finally, we consider the potential for China to emerge as Asia’s premier payroll processing center.
- Previous Article Asia Investment Brief: Establishing a Presence in India, e-Commerce in Russia, and Electronics Production in Vietnam
- Next Article Foshan’s Changing Economy: Opportunities for Foreign Investors