China services sector continues to boost economy
China’s non-manufacturing activity grew in October, thanks to a recovering services sector and a robust construction industry, according to the latest official data National Bureau of Statistics (NBS).
The purchasing managers’ index for non-manufacturing came in at 50.6 in October – a reading above 50 indicates expansion, while a reading below 50 represents a contraction.
Senior NBS statistician Zhao Qinghe said the services sector saw “rapid development”, boosted by tourism and consumption during the National Day holidays. Additionally, the construction industry also grew.
The sub-index for the services sector recorded 50.1 in October. In particular, the transport, accommodation and catering sectors stood well above 55.
Zhao said the construction sector saw good growth with its sub-index for business activities standing at 53.5. The sub-index measuring expectations was 61.4, indicating optimism among construction enterprises
The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 49.5 in October, down from 50.2 in the previous month, the data showed.
The sub-index for large enterprises remained positive at 50.7 in October, down from 51.6 in the previous month. However, large enterprises expect manufacturing activities to pick up in the near term, with the sub-index for production and business expectations at 55.6, up from 55.5 in September and above 55 for four consecutive months.
Commenting on the data, Zhao said the foundation for a sustained economic recovery needs to be further consolidated.
China to open up to more ASEAN trade
China is set to open up its industries that it has long-standing traditional advantages in, including manufacturing and services, to businesses from members of the Association of Southeast Asian Nations (ASEAN), experts are predicting.
Speaking at the 89th International Forum on China Reform, held in Hainan province, Chi Fulin, president of the China Institute for Reform and Development (CIRD), said that the conditions for unilateral opening-up to ASEAN are in place.
Chi said the next three to five years represented a window of opportunity for China to open up to ASEAN, with China now a mature stage of industrialization.
“Drawing from historical experience, the move of unilaterally opening up to ASEAN is not only practical but also of great urgency,” said Chi.
He suggested that by following a gradual and systematic approach, the government can transform places such as Yunnan province and the Guangxi Zhuang autonomous region into new regions for trade with ASEAN.
Also at the forum, Zhang Yunling of the Chinese Academy of Social Sciences in Beijing said China has proposed accelerating the ASEAN-China Free Trade Area 3.0 Upgrade negotiations, calling for the negotiations to be concluded by the end of 2024. The goal is to transition from a free trade area to an open and cooperative economic area, he said
This transformation requires essential conditions, including open markets, connectivity and collaborative development, Zhang said.
Echoing the suggestions, Aristotle Dy, president of the Philippine Association for Chinese Studies, said that China’s high-level opening-up will continue to generate opportunities for ASEAN in the coming years.
Looking further afield, a total of 510,800 certificates of origin were issued by Chinese authorities in August, data from the China Council for the Promotion of International Trade showed.
Some 21,672 certificates of origin were issued by Chinese authorities under the Regional Comprehensive Economic Partnership (RCEP) free trade agreement, up 16.04% year on year.
The certificates are expected to reduce tariffs by $11 million for Chinese products imported to RCEP member countries, the council said.
Certificates of origin are documents widely used in international trade transactions. They state that the products listed have met sufficient criteria to be considered as originating in a particular country. The issuance of these certificates is widely regarded as a barometer of foreign trade.
