Top news of the week:

• China’s central bank to cut reserve requirement ratio

  November 28, 2022

  The People’s Bank of China (PBOC) said on November 25 that it has decided to cut the reserve requirement ratio (RRR) for eligible financial institutions by 0.25 percentage points to keep liquidity reasonably ample and lower comprehensive financing costs. According to PBOC, the cut will take effect on December 5, except for financial institutions that have already implemented a 5-percent RRR. The reduction in the cash amount that banks must hold in reserve is expected to free up 500 billion yuan (about USD 70.09 billion) in long-term liquidity. After the reduction, the weighted average RRR for Chinese financial institutions will stand at about 7.8 percent, the central bank said.

• China’s auto exports hit record high in first 10 months

  November 29, 2022

  China’s vehicle exports surged over 50 percent to over 2.6 million units in the first 10 months of this year, hitting a record high, industry data showed. Auto companies in China exported nearly 2.5 million finished vehicles in the same period, up 54.1 percent year on year, according to data recently issued by the China Association of Automobile Manufacturers (CAAM). During the period, the country’s exports of new energy vehicles (NEVs) skyrocketed by 96.7 percent year on year to 499,000, and exports of its gasoline-fueled vehicle reached about 2 million units. NEVs have become a highlight of China’s auto exports and an important force driving the high-quality growth of exports.

• Former President Jiang Zemin passes away

  November 30, 2022

  China’s former President Jiang Zemin, who served as the head of CPC and later the state from 1989 to 2003 during which China saw huge economic and social changes, has died at the age of 96. According to an announcement made by the Central Committee of the Communist Party and other state organs, Jiang died of leukemia and multiple organ failure in Shanghai at 12:13 pm on November 30. His funeral will be held on December 6, 2022, and the authority has called for nationwide mourning, suspension of entertainment, and half-staff on the day.

• President Xi Jinping holds talks with European Council President Charles Michel

  December 1, 2022

  On December 1, President Xi Jinping held talks with President of the European Council Charles Michel in Beijing. According to Xi, it is important for the development of China-EU relations by following four observations, which are keeping the right perception, properly managing differences, carrying out cooperation at a higher level, and strengthening coordination and cooperation in international affairs. Michel expressed on behalf of the EU deep condolences over Comrade Jiang Zemin’s passing due to illness and noted that EU will work with China to ensure the success of upcoming high-level exchanges and deepen mutually beneficial cooperation in all areas. The two sides exchanged views on the Ukraine crisis. China supports the EU in stepping up mediation efforts and playing a leading role in building a balanced, effective, and sustainable security architecture in Europe.

• China’s total services import and export amount increased by 17.2% year-on-year

  December 2, 2022

  According to the data released by Ministry of Commerce, in the first ten months of this year, China’s total amount of import and export of services reached 4918.55 billion yuan, a year-on-year increase of 17.2%. The data showed that the China’s services exports amounted to 2358.15 billion yuan in this period, a year-on-year increase of 18.1%, while its imports were 2560.4 billion yuan, up 16.4% year-on-year. This trend is characterized by the steady growth of trade in knowledge-intensive services and the continued recovery of imports and exports of travel services.