Since deleveraging initiatives were announced at the Central Economic Work Conference in late 2015, SOE and housing market debt has grown. China Railway Corporation, with a debt to asset ratio of 64.6 percent, will issue C¥300 bn in bonds this year, some to be used for debt restructuring.
The murder-suicide of a rural Gansu family led many to question state efforts to help those most in need. A since-deleted viral WeChat post, ‘Those forgotten in the age of prosperity’, blamed the hukou system, falling crop prices, growing coastal-inland disparity and lack of mental health support for rural women.
Just before the US and China ratified the Paris agreement, seven agencies swiftly issued ‘Guiding opinions on developing a green financial system’, while NPC Standing Committee began reviewing the Environmental Protection Tax Law. Experts note bureaucratic hurdles in coordinating environment and taxation departments.
It was puzzling that the leadership did not make more of significant ‘Guiding opinions’ on central-local fiscal relations, which re-centralise many expenditure responsibilities like environmental impact assessments.
- ‘modest’ fiscal recentralisation
- P2P rules leave platforms playing catchup
- less state, more Party for NGOs
- dreams of Northeastern rejuvenation
- safeguarding future food
- after the frenzy, turning outward again
A new infant milk formula regime, coming into force 1 January 2018, opens for registration on 1 October 2016, as Food Safety Law ramps up.
CBRC circulated draft controls on commercial banks’ wealth management products for comment in late July 2016. More ambitious than the abandoned December 2014 proposals, they show a shift in priority from spurring growth to controlling risk.
- de-bureaucratising hospitals and universities
- Youth League diminished
- Shanxi coal firms get a break
- planning for technology to transform industry
- protein power
- season of ‘psychological sanctions’
By end 2016, central agencies will clarify central-local expenditure responsibilities and launch re-centralisation pilots, before devolving many taxes locally, in the most significant fiscal shift since 1994.
South Korea moved to deploy the US’s THAAD anti-ballistic missile system, and the UNCLOS tribunal supported the Philippines against China in the South China Sea. Beijing moved to ease rising tensions, removing a missile battery from a disputed island.
- monetary policy losing traction
- securing the internet of things
- regulating land operation rights transfer markets
- community focus for aged care pilots
- rule-bending for reformers: but how?
- more aftershocks from South China Sea and THAAD