China’s economy next year still faces relatively large downward pressure and the speed of economic growth might fall further, a top planning body’s think tank said, recommending more monetary policy easing, the Economic Daily reported on Sunday.
The National Development and Reform Commission’s (NDRC) think tank recommended that China’s government continues to cut interest rates and banks’ reserve requirement ratio to bolster flagging growth in the world’s second-largest economy.
China should also give way to pressure on yuan depreciation to boost exports, the think tank said.
Beijing has been struggling to reach its economic growth target of about 7 percent this year, despite a raft of policy easing steps in recent months.
China’s top leaders have started an annual meeting to map out economic and reform plans for next year, state media reported on Friday.
The central bank has also been notable for its lack of a response to the US Federal Reserve’s interest rate hike on Wednesday last week.
The think tank predicted that investment growth could fall to about 9 percent next year. From January to November this year, fixed-asset investment growth was 10.2 percent year-on-year.
Real-estate investment might be flat, the report said.
Consumption growth could face a year of single digit growth next year, while exports might grow slightly, the think tank said.
It recommended expanding China’s fiscal deficit to support major projects and possibly issuing more central and local government bonds.
The stock market should be stabilized and efforts made to fend off a risk of large-scale capital outflows, it said.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the