Your daily digest of the biggest business news in China, translated and summarized every day.
China still has 83 million people living under the poverty line
The world’s second largest economy is still home to 83 million people living under poverty line according to official statistics.
The country has lifted 660 million people out of poverty since it opened up its closed economy during the late 1970s, but 120,000 poor villages remain.
China’s cost advantage has all but disappeared
After a decade of continuous wage increases, the average cost of labour in the world’s factory is higher than most of countries in Southeast Asia and South Asia.
The average income for an urban resident is 51,474 yuan. For the mining industry, the average income is 60,139 yuan and the annual wage for a factory worker is 46,431, up 11.5 per cent from the year before.
However, the government estimates the period of rapid wage increase is likely to moderate in the coming years as the economy slows.
Beijing will build a new 80 billion yuan airport
The National Development and Reform Commission, the country’s powerful planning agency, has approved a second new airport for Beijing with an estimated cost of 80 billion yuan.
The airport will be operational from 2025 and has the capacity to carry 72 million passengers a year and handle 620,000 thousand flights a year.
Once the project is completed, it will be the second largest airport in the country after Beijing Capital International Airport.
China bank deals soar
Chinese financial firms are buying up overseas assets at the fastest pace in ten years according to Dealogic.
There were 30 overseas acquisitions by Chinese financial institutions in 2014 totalling US$4.8 billion.
Although the amount is less than the previous year the number of M&A deals have doubled.
China’s Haitong Securities Co. said in early December that it would pay €379 million (US$465 million) for the investment banking arm of Portugal’s Banco Espírito Santo.
That deal was only equivalent to 1.5 per cent of Haitong’s market capitalisation.
According to Dealogic, China domestic M&A activity has reached US$239.3 billion via 2,968 deals in 2014 so far — the highest year to date volume on record.
Renewable car production sees tenfold increase
Alternative fuel cars have undergone rapid growth in China this year, increasing tenfold in November compared to a year ago according to China’s Ministry of Industry and Information.
The country produced close to 10,000 cars with alternative fuel in November this year.
Between January and November, there were more than two million monthly car sales with a total of 21 million car sales in the period in total.
China plans to lower pollution by adopting five million five million electric cars is facing difficulties due to a lack of charging stations.
Electric-car sales in China exceeded those of the US in September for the first time according to Sina Auto.
According to that report, Chinese buyers purchased 11,991 cars with plugs throughout the country, against 10,551 in the US.