Geely Automobile Holdings presents one of its vehicles at a show in Berlin on October 20, 2016. Photo: AFP/Odd Andersen

China will introduce new measures to boost consumption in commodities and key sectors and tap rural consumption potential, according to the State Council’s executive meeting chaired by Premier Li Keqiang on Wednesday.

The country will firmly implement a strategy of bolstering domestic demand. Auto sales will be stabilized and expanded. Local authorities are encouraged to fine-tune restrictive measures regarding car purchasing and raise the quota for license plates.

In rural areas where conditions permit, residents will be encouraged to buy trucks with a capacity no bigger than 3.5 tons and passenger cars with engines no bigger than 1.6 liters. Car buyers will be subsidized for phasing out gasoline-powered vehicles of national emission standard III or below. The construction of parking lots and charging stations will be stepped up.

Regions where conditions allow will be encouraged to give subsidies for trading in old goods and purchasing smart home appliances and environment-friendly furniture. Catering service providers will be encouraged to diversify and upgrade their menus, innovate online and offline business models and improve service standards. Market-oriented promotion of high-quality specialty diets will be supported.

The meeting also agreed on a host of measures to support Internet Plus tourism. Development of smart facilities at tourist attractions will be taken forward, and services such as electronic maps and audio guides will be promoted. Construction of digital exhibition venues at major tourism sites will be encouraged.

Fiscal revenue

China’s fiscal revenue plummeted in the first 10 months of this year, down 5.5% year-on-year to about 15.85 trillion yuan (US$2.42 trillion), according to data from the Ministry of Finance.

Tax revenue slid 4.6% from the previous year to 13.5 trillion yuan during the period. Revenue from value-added tax, the largest fiscal revenue source in the country, fell 11.4% to 4.82 trillion yuan.

The central government collected nearly 7.36 trillion yuan in the period, down 8.7% from a year earlier, while local governments saw their fiscal revenue drop 2.4% to 8.49 trillion yuan.

The country’s fiscal spending saw a year-on-year decline of 0.6% to stand at 18.94 trillion yuan in the same period.

Cultural investment fund

On Wednesday, China launched a fund of funds (FOF) for cultural industry investment with a target size of 50 billion yuan, of which 31.7 billion yuan has already been raised.

The FOF will focus on supporting restructuring, mergers and acquisitions of cultural enterprises, facilitating the integration of cultural resources and industrial structure adjustment, and promoting the high-quality development of the cultural industry.

It will mainly invest in core areas such as news and information services, integrated media development and new forms of cultural business, as well as tourism, sports and film industry.

The establishment of the fund, co-initiated by the Ministry of Finance, is considered a significant move in forging a modern cultural industry and developing a great socialist culture in China.

Offshore duty-free shops

South China’s island province of Hainan will construct two more offshore duty-free shops to promote tax-free consumption, according to the municipal bureau of commerce of Haikou, the provincial capital.

After completion within the year, the two new shops are expected to open next year, bringing the total number of offshore duty-free shops in Haikou to four.

The two existing shops are now in expansion, with the business area of the one in the airport to reach 9,000 square meters. The province now has four duty-free shops, with the other two in Sanya and Bo’ao.

Sales of offshore duty-free shops in the province exceeded 12 billion yuan between July and October, up 214.1% year-on-year after the province increased its annual tax-free shopping quota from 30,000 yuan to 100,000 yuan per person on July 1.

Three Gorges Project

The Three Gorges Dam, the world’s largest hydroelectric project on the Yangtze River, has set a record for annual power output, authorities announced on Wednesday.

Power generation reached the 103.1-billion-kilowatt-hours mark at 8:20am on Sunday, surpassing the 103.098-billion-kWh record set by the Itaipu Dam in South America in 2016, according to an announcement made by the China Three Gorges Corporation.

The clean electricity, which otherwise would be generated through burning 31.71 million tonnes of standard coal, has helped reduce carbon dioxide emissions by 86.71 million tonnes, sulfur dioxide by 20,600 tonnes and nitrogen oxides by 19,600 tonnes.

Company news

Pinduoduo, a US-listed Chinese e-commerce firm, said it plans to raise $1.75 billion through the sale of convertible senior notes. The sale of the bonds, which will mature in 2025, will come with an over-allotment option allowing the underwriters to buy up to an additional $250 million worth of convertible senior notes within 30 days if demand is strong, the statement said.

The company also plans to offer 2.2 million American depositary shares (ADSs), with the underwriters also likely to be given a 30-day option to purchase up to an additional 3.3 million ADSs.

On Tuesday, Huawei announced it has been awarded the Most Valued Technology Partner of the Year 2020 from DBS Bank. The Huawei team has been working closely to meet the bank’s evolving requirements and drive the digital transformation, especially during the Covid-19 pandemic.

Huawei also supported DBS’ Work From Home service to enable staff to work remotely in a safe and secure manner. Huawei’s customers are its priority and it hopes to deepen the connection with the bank through collaboration.

The stories were compiled by Nadeem Xu and Shan Hui and first published at ATimesCN.com.

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