China’sNationalEnergyAdministrationissuedafive-yearbiomassenergydevelopmentplaninDecember2016,aimedatachievingthebiomassenergyequivalentof58milliontonsofcoalby2020.Theuseofbiomassenergywillalsobebettercommercializedandindustrializedoverthenextfiveyears,accordingtothedocument.Biomassisdefinedasbiologicalmaterial-generallyfarmorforestrybyproducts-thatcanbeuseddirectlytoproduceheatviacombustionorindirectlyafterbeingconvertedintobiofuels.Theplanaimsatpromotingnon-fossilenergytopowerChina’seconomyinacleaner,moresustainableway.Thegovernmentaimstolifttheproportionofnon-fossilenergyinthecountry’senergymixto20percentfromthecurrentlevelofapproximately11percentby2030.
BetterRuralRoads
TheChineseGovernmenthaspromisedmorespendingontransportimprovementsinpoorregionsoverthenextfewyearsinthelatestefforttorealizeitsambitiouspovertyreductiongoals.ViceMinisterofTransportDaiDongchangsaidthatoverhalfofvehiclepurchasetaxfunds,estimatedatmorethan840billionyuan($120billion),willbeearmarkedforruralroadconstructionduringthe13thFive-YearPlan(2016-20).Analystssaidimprovedtransportfacilitieswillleadtoeffectivedevelopmentandbetterutilizationofmineral,energyandtouristresourcesinpoorareas,acceleratingthepaceofpovertyeradication.
EVChargers
China’sStateGridwillbuildmorechargingfacilitiesandexpandpublicfast-chargenetworksforelectricvehiclesinfutureyears,thecompany’schairmansaidonDecember11,2016.Thecompanyplanstobuild10,000chargingstationsand120,000chargingpolesby2020,saidShuYinbiao,ChairmanoftheStateGrid.Thecompanywillexpanditspublicfast-chargenetworksforelectriccarsinmajorcitiesincludingBeijing,ShanghaiandHangzhou.By2015,theStateGridhadbuiltfast-chargenetworkscovering11,000kmofhighwaysbetweenmajorcities,anditwillfurtherexpandthenetworkstocoveranother36,000kmofinter-cityhighwaysby2020.
NoTransferRestrictions
China’sforeignexchangeauthoritysaidinDecemberthattherearenorestrictionsonforeignfirms’cross-borderprofittransfers,respondingtomarketconcernsabouttightenedregulationsovercapitaloutflows.AsChinahasrealizedconvertibilityunderthecurrentaccount,realinternationalpaymentsandtransfersarenotrestricted,includingthoseofdividendandgoodsandservicestrade,accordingtotheStateAdministrationofForeignExchange.WeighedonbyaweakChi-neseyuanagainsttheU.S.dollar,regulatorsmovedtocrackdownonillegalcross-bordercapitalflows,whilereiteratingthatnormalbusinesswillnotbeaffectedandforeigninvestmentisstillwelcome.
IncomeGoal
Chinawillintensifypolicysupportinthenextfiveyearstonarrowtheurban-ruralincomegapanddoublefarmers’2010averagepercapitaincomeby2020,accordingtoanewlyreleasedStateCouncildocument.Thegovernmentwillincreaseinvestmentinagriculturalinfrastructureconstructionandstrengthenfinancialservicesinruralareas,itsaid.Morepolicieswillbeunveiledtosupportruralresidentstoexploreentrepreneurshipandinnovation,andprovidemoretrainingservicestofarmersontheiragriculturalskills.Othermeasuresincludeencouragingprivateinvestmentinruralareastobroadenchannelsforfarmerstoincreasetheirincomeanddeepeningthereformofruralcollectivepropertyrightstoinjectvitalityintoruralareas.Thesocialsafetynetinruralareaswillbeimproved,helpingfarmerstoshakeoffpovertyandlivecomfortably.
LowerTaxBurden
Chinawillcontinuetoimproveitsvalue-addedtax(VAT)policiestoeasecompanies’taxburden,accordingtotheStateCouncil.TheVATsystemwasrolledoutnationwideinMay2016,inplaceofthebusinesstaxaftersuccessfulpilots.BytheendofOctober,companieshadsavedatotalof96.5billionyuan($14billion),accordingtoofficialstatistics.All26economicsectorscoveredbytheVATprogram,includingfinance,construction,realestateandlivelihoodservices,haveseentheirtaxesreduced.Policymakersexpectthenewroundoftaxbreakstoimprovetheoveralltaxsystem,helpthedevelopmentoftheservicesectorandotherneweconomicdrivers,andsupportthenation’seconomictransformation.CA
Numbers
2.3%GrowthrateofChina’sCPIinNovember2016
$306blnChina’stotalinvestmentintourismby2020
51.7%China’smanufacturingPMIinNovember2016
87.6mlntonsQuotafornon-statecrudeoilimportsin2017announcedbyChina’sMinistryofCommerce
31%IncreaserateofChineseenterprises’non-financialdirectinvestmenttoAfricainthefirst10monthsof2016