China Direct

US-China Relations - May 2011 Strategic Economic Dialogue

 

 

 [Image courtesy of www.apcoworldwide.com]

CBI Member APCO has provided a useful summary of last week's 3rd US-China Strategic Economic Dialogue held in Washington DC from 09-10 May.

Kindly review the summary below.

Download APCO - US-CH SED May 2011

Tianjin city - flying high with CBI members Airbus, Thales and Goodrich

 
 
[Image courtesy of www.theuncarvedblog.wordpress.com]

China Direct paid a visit to the state-level development zone Tianjin Airport Economic Area (TAEA) in the northeastern city of Tianjin, meeting with CBI members Airbus, Thales and Goodrich.

Airbus has a final assembly line for its aircraft in Tianjin, the first to operate outside of Europe. Goodrich runs a maintenance, engine buildup and supply chain management office in Tianjin. Thales runs the Thales (Tianjin) Radar Technologies Co., Ltd. 

Growing by 17.4% last year, Tianjin is one of the fastest-growing cities in China, with the 5th busiest port in the world.

Pillar industries in the TAEA include aviation, logistics, manufacturing, automotive, electronics, finance, renewables and biopharmaceutical.

Offering companies access to competititve advantages such as an advantageous location, superb transportation links, highly-skilled human resources, a lower cost base, strong financial support, efficient business services, first-class infrastructure and a modern lifestyle, TAEA is a highly attractive destination for foreign investment in China.

Please click here to read a full presentation on the TAEA.

 

Making the UK 'the best place to invest' - work in progress?

 

 
Today, the CBI released its report, "Making the UK the best place to invest," which calls on the government to bolster the UK’s attractiveness to investors, warning that without action, investment and jobs will be lost to other countries. 

Foreign investment in the UK fell significantly during the global recession, dropping from $186.4 billion in 2007 to $45.7 billion in 2009, and the UK’s reputation as a good place to invest is under threat.

In its report, the CBI has identified the main drivers for and barriers to investment, based on research from 400 companies, including interviews with senior business leaders.

Key drivers of investment in the UK include:
     • A well-developed innovation ecosystem and science base
     • The English language
     • Cultural aspects and quality of life
     • Strong rule of law

Key barriers to investment in the UK include:
     • The lack of long-term predictability and certainty
     • The 50% personal tax rate
     • Skills shortages in the UK
     • The impact of regulation, dismissal periods and strike activity

Please find the Executive Summary below:

1. Download CBI UK Best Place Invest Summary April 2011

2. Our Full Report is here  and today's Press Release is here

China Direct would like to thank CBI Beijing Policy Analyst Ben Cooper for preparing this note.

*Stop Press* New Chinese interest rate hike - now 6.06%

 

 

China's Central Bank announced Tuesday that it would raise benchmark one-year borrowing and lending rates by 25 basis points from Wed 09 Feb.

The rate hikes come amid increasing pressure on the Chinese government to control inflation.

After the hikes, the benchmark one-year deposit interest rate will climb to 3 percent, while the one-year loan interest rate will reach 6.06 percent.

This is the first rise in China's one-year benchmark interest rates this year and signals a renewed effort to cool prices and tighten liquidity.

Analysts said the timing of the hike, immediately after the Lunar New Year holiday, would send a strong signal to the market that the PBOC was paying more attention to inflation.

China's CPI (Consumer Price Index) rose 4.6% in Dec 2010 and is expected to rise further in 2011.

Sir Richard Lambert gives final speech as CBI Director-General

 

 
[Image courtesy of www.topnews.net.nz]

In his last major speech as CBI Director-General, Sir Richard Lambert set out the critical short-term changes necessary to secure economic growth and gave his assessment of the performance of the coalition Government.

Several key highlights include:

• The coalition Government has failed to effectively articulate its vision of what the UK economy might become under its leadership.
• The poor state of public finances in the UK threatens the country’s long-term economic stability.
• Private sector investment and trade are crucial to driving job creation and economic recovery.

 Click here to read a full transcript of Mr. Lambert’s speech.

OECD's 2011 Economic Outlook: 9.7% growth for China

 

 

[Image courtesy of www.godanriver.com]

OECD's Economic Outlook released

According to the latest Economic Outlook released by the OECD last week, economic activity in OECD countries is expected to gradually pick up steam over the coming two years, with GDP across OECD countries projected to rise by 2.3% in 2011 and 2.8% in 2012.

However, the OECD cautions that the recovery will remain uneven and the rate of unemployment will continue to be high.

Click here to read the summary of the report and here to see the presentation by OECD Secretary-General Angel Gurría and OECD Deputy Secretary-General and Chief Economist Pier Carlo Padoan.

(Source: www.oecd.org)

Strong growth in developing countries, especially China, will play a key role in supporting the global recovery.

China's economy is forecasted to expand at a robust 9.7% in 2011 and 2012, lower than the 10.5% growth expected for this year.

Faster domestic demand in China is expected to offset a renewed slowdown in exports over the next two years as domestic consumption takes on an increasingly important role as a key driver of the Chinese economy.

Click here to read the OECD's China summary and here for further media coverage.

China Direct would like to thank colleague Ben Cooper (ben.cooper@cbi.org.uk) for preparing this information which can also be viewed at www.cbichina.org.cn