Your daily digest of the biggest business news in China, translated and summarized every day.
- Shanghai abandons GDP growth target
Shanghai has become the first major city in China to abandon its GDP growth target. Many counties and districts from Shanghai have already abandoned GDP growth targets recently, emphasising more on the quality of growth.
The government report didn’t mention GDP growth for the first time in its history but it set a target for a research and development budget to be at least 3.6 per cent of total GDP.
The party secretary of Shanghai told the Financial Times last year that the government would focus more on quality, structure and efficiency.
- Chinese overseas property investment speeds up
Chinese investment in the overseas property sector increased 46 per cent last year with investment in overseas commercial property sector exceeded the domestic market for the first time.
Chinese investors spent US$ 16.5 billion last year, up 46 per cent from the year before. Investment into the commercial property sector increased more than 50 per cent, exceeding 11 billion.
Europe is the most attractive investment destination and Australia is the new favourite market, according to research from Jones Lang LaSalle.
- NDRC approves 26.8 billion yuan worth of projects in one day
China’s economic planning agency has approved three major infrastructure projects worth 26.8 billion yuan --including a 125 km long expressway in Yunan connecting two major tourist attraction sites.
- High speed railway between Beijing and Shanghai turns profitable
The high-speed railway between Beijing and Shanghai, two of China’s largest cities, carried 100 million passengers last year, up 27 per cent from the year before.
The line earned 30 billion in revenue and made 1.2 billion yuan in estimated profits. The total cost of construction for the project was 208 billion yuan. The CEO of the railway said they could be building a second line soon.
- Chinese coal production sinks for first time in 14 years
China produced 3.5 billion tonnes of coal last year, a 2.1 per cent decline from the year before. The country’s coal producer association estimates the total production for 2014 is likely to be down by 2.5 per cent.
- China’s renewable car market is the second largest in the world
The sales of renewable energy cars increased 320 per cent last year, making China the second largest renewable car market in the world after the US.
China sold 75,000 renewable energy cars last year. However, the chairman of JAC Motors says the sector is too reliant on government subsidies.