US Dollar Exchange Rates of
27th January 2015
China Yuan 6.2542
Report from China
China 2014 growth at 24-year low
Data from the National Bureau of Statistics shows that in
2014 the Chinese economy grew at its slowest rate in more
than 24 years.
At 7.4% growth for the year, 2014 GDP was marginally
below the Government‟s target of 7.5%. For the year as a
whole industrial production was up over 8% and fixed
investment grew at 16% mainly driven by spending on
infrastructure projects.
http://www.stats.gov.cn/english/PressRelease/201501/t201
50122_672565.html
Plans to scale back building low-cost housing to avert
real estate crisis
The National Bureau of Statistics (NBS) has reported 2014
housing developments and sales. Total investment in real
estate development in 2014 increased around 10% yearon-
year, of which investment in residential buildings was
up by 9.2% accounting for 68% of all real estate
development investment.
However, the land area purchased by real estate
developers in 2014 was down 14% year-on-year.
Source:
www.stats.gov.cn/english/PressRelease/201501/t20150121
_672106.html
In related news the NBS reported that in December house
prices in 66 of the 70 medium and large-sized cities
surveyed fell and only rose in 3 cities. Much the same
trend was seen in prices for second-hand residential
buildings with prices falling in 60 of the 70 cities
surveyed.
Reports suggest there are millions of empty apartments
across China and analysts point to the 4.5% fall in prices
last year and the current fall in prices as evidence of
massive oversupply.
This has become a risk for the economy as a whole as the
real estate sector, by some measures, accounts for around a
third of GDP if output from industries such as cement,
glass, wood products and furniture etc. are included.
In contrast to the sharply falling prices for new homes the
sales volume in December in 70 major cities was the
highest for the year rising around 8% compared to
November.
The increase in the number of units purchased has been
put down to recent policy concessions such as the cut in
interest rates in November which brought down home loan
costs and the massive discounts offered by some
developers.
Speaking at the World Economic Forum in Switzerland,
China‟s housing minister said the government plans to
build fewer low-cost houses in cities where there is a
serious oversupply of housing.
It has been reported that the government has built almost
50 mil. subsidised homes for low income families over the
past 5 years and this has contributed to the housing glut in
the country.
To assist low income families find a home the government
will instead help people buy existing homes by providing
easier access to financing.
US review of multilayered flooring duties
The US Department of Commerce has announced it is
conducting a review of the countervailing duty (CVD)
order on China‟s multilayered wood flooring. A statement
from the Enforcement and Compliance, International
Trade Administration, Department of Commerce says in
summary:
¡°We preliminarily find that the mandatory respondents
Fine Furniture (Shanghai) Limited (Fine Furniture) and
The Lizhong Wood Industry Limited Company of
Shanghai (Lizhong) (also known as ``Shanghai Lizhong
Wood Products Co., Ltd.'') received countervailable
subsidies during the review.
We also intend to rescind the review of one company,
Changzhou Hawd Flooring Co., Ltd. (Changzhou), which
timely certified that it had no shipments of subject
merchandise to the United States during the review.
Interested parties are invited to comment on these
preliminary results.¡±
For more see: http://www.gpo.gov/fdsys/pkg/FR-2015-01-
07/html/2015-00037.htm.
Myanmar-China timber governance and trade talks
At a recent meeting and workshop China and Myanmar
agreed on the need to increase exchanges on timber
legality verification which will serve as the basis for
regulating and promoting trade in legal and sustainable
produced wood products between the two countries.
Issues such as implementation, compliance and awareness
of legality system as well as the potential to establish joint
wood-processing industrial zones in Myanmar were
discussed.
A statement after the meetings said this workshop served
as a „kick-off‟ meeting for the "Myanmar-China Timber
Governance Project" which will explore a range of
collaborative activities including enhancing the capacity of
Chinese Customs officials to develop specific guidelines
on responsible forest investment to guide Chinese
companies operating in Myanmar.
The Myanmar-China Timber Governance Project is being
coordinated by the Global Environment Institute (GEI)
and the Research Center for International Trade in Timber
Products within the State Forestry Administration (SFA)
and executed through cooperation between the SFA and
Myanmar‟s Ministry of Environmental Protection and
Forestry. Activities are supported financially by the US
Bluemoon Fund and are also part of the China-UK
International Cooperation on Forestry Program.
For more see:
www.geichina.org/index.php?controller=News&action=Vi
ew&nid=260
Enterprise registration reform to cut red-tape
According to the State Administration for Industry and
Commerce, enterprise registration process will be
streamlined creating a three-in-one business license which
combines the industrial and commercial business license,
the organization code certificate and tax registration. The
aim is to minimise administrative costs and encourage
businesses.
After the reform applicants need only to submit one set of
documents for approval by four government departments,
namely industrial and commercial department, quality
supervision department, national tax bureau and local tax
bureau.
Bamboo exports from Lishui city exceed US$100
million
For the first time the value of bamboo products exports
from Lishui city, Zhejiang province topped US$110
million representing a year on year increase of 23% to
break the US$ 100 mil. for the first time.
The top bamboo products exported were furniture, crafts,
tableware sun shade umbrellas and screens and the main
markets were the EU (40%) US (23%) and ASEAN
(10%).
The main reason for the increase in bamboo product
exports is due to diversification into new markets in
Southeast Asia, Russia and Africa and consolidation in
traditional European and American markets. In addition
enterprises have strengthened technological innovation
and invested in research and development for new
products.
The inspection and quarantine departments of Lishui city
have helped by expediting inspection and supervision
procedures to accelerate customs clearance. This agency
also guides enterprises on quality and safety control
systems and on strengthening factory supervision to ensure
the quality and safety of bamboo products.
   
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