China seeks to strengthen economic ties with Europe
China and Europe should work together in industry and commerce, including green energy and sustainability, to create growth and build their economies, according to delegates at a forum to boost co-operation between the two entities.
Li Chunlin, deputy head of China’s National Development and Reform Commission, said that despite a rise in protectionism and mounting uncertainties worldwide, China and Europe should continue to promote bilateral relations, creating a rising number of opportunities for companies.
Li was speaking at the China-Europe Cooperation Partnership Dialogue on Shaping New Growth Drivers for Green Development, held in Beijing recently.
He said European companies were leading the way in technologies such as wind power, hydrogen power, decarbonization in petrochemicals, energy efficiency in buildings as well as carbon capture, utilization and storage.
“China and Europe are highly complementary in fields including building a new energy system and promoting low-carbon and zero-carbon technologies, and the prospect for cooperation is promising,” he said.
“China welcomes European enterprises to continue tapping into the Chinese market and actively participate in China’s green and low-carbon development, collaboratively constructing a clean and beautiful world and injecting more impetus into global economic recovery and growth.”
Li said China is committed to expanding opportunities for foreign entities, and said that efforts will be made “to create a top-notch business environment” for foreign enterprises.
“China is the one country that perhaps had made the most significant contributions and commitment to green development and energy transition… In the past years, China has already demonstrated remarkable progress in developing green finance and expanding its production capacity for renewable energy,” said Jens Eskelund, president of the European Union Chamber of Commerce in China.
Eskelund said that despite geopolitical tensions and uncertainties, cooperation between Europe and China remains essential.
According to Eskelund, European companies have developed and deployed effective decarbonization technologies and management practices in their home markets, and expressed a strong desire to work closely with China. This, he added, presents a strong argument for deepening industrial cooperation between both sides.
New figures show rebound in services and manufacturing
Newly released statistics show better-than-expected rebounds in China’s services and manufacturing sectors in November.
The Caixin services purchasing managers’ index rose to 51.5 in November from October’s 50.4, registering a three-month high, according to a report released by Caixin and information provider IHS Markit. An index score of over 50 represents growth, while a figure under 50 shows a contraction.
Citing the manufacturing PMI for October, which rose by 1.2 percentage points to 50.7, the Caixin report pointed to growth in both services and manufacturing.
“The twin expansions in November signal a positive outlook for China’s macroeconomy, which is attributable to steady consumer spending, solid industrial production and improved market expectations,” said Wang Zhe, a senior economist at Caixin Insight Group.
Although the growth in new orders for services in November remained modest, it recorded the highest level since September, which businesses attributed to improved market fundamentals, the report said, adding that insufficient clients, however, would still put a drag on its overall growth.
Additionally, the services sector in China is showing signs of increased market confidence, as some enterprises anticipate improvements in the economic landscape and a rise in customer numbers, according to the report.
The pressures still linger in the services sector as the reading for employment fell into the contraction zone for the first time since February and prices charged by services grew at a slower pace, the report stated.
Despite positive developments in the services sector, various unfavorable factors such as insufficient internal and external demand and significant employment pressure continue to weigh on China’s economy. The foundation of recovery needs further consolidation to ensure sustained growth, Wang said.
