The Phnom Penh Post

China economic conference hopes to tackle pollution, risk

Laos food expo to spice up hospitalit­y

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CHINA opened a major economic planning conference yesterday as it tries to pivot away from its model of no-holds-barred growth.

The annual Central Economic Work Conference gives leaders the opportunit­y to review past policy and to plan for 2018.

The pursuit of high growth at all costs made China the world’s second largest economy but led to severe pollution, rampant waste and a mountain of debt.

President Xi Jinping has indicated the country would move in a new direction, telling the Communist Party Congress in October that it needs to shift from high-growth to highqualit­y developmen­t.

Xi also notably omitted economic growth targets from his three-and-a-half-hour speech to the party leaders.

Implementi­ng his new approach will be the focus of the closed meetings convened over three days in Beijing, state news agency Xinhua said.

The “three tough battles” for 2018 will be curbing major risks, eradicatin­g poverty and controllin­g pollution, it reported, repeating Xi’s directions to the party congress.

Debt’s ‘dangerous pace’

This year, Beijing made halting progress tackling its ballooning debt, easing the speed at which it has been accumulati­ng.

Still the Internatio­nal Monetary Fund warned in October that the debt was growing at a “dangerous pace” and said earlier this month that banks should raise their capital to avert debt-related risks.

Much of China’s debt is concentrat­ed in large and unwieldy state-owned enterprise­s and analysts say the sector needs reform if China is to get a handle on curbing financial risks.

“If there are financial problems at state-owned companies, that would definitely trigger a series of financial risks,” said Wendy Chen, a China economist at Nomura bank.

“Corporate debt is the largest portion of China’s overall debt.”

But Xi has shown little sign he will push through reforms to the state sector.

He told the party congress of the need to make state-owned enterprise­s “stronger, better and bigger” and last week described them as the “backbone of China’s special socialist economy”.

Another prong of the push – tackling the country’s noxious air pollution – is already showing signs of dampening economic growth.

Official data last week showed industrial output slowing in November, as authoritie­s in some northern cities have forced steel factories and smelters to cut production – with some running at half capacity.

The industrial cuts and measures to switch the country to natural gas heating have given the capital a rare series of blue sky days but some analysts forecast a meaningful impact on growth.

In a recent note, Julian Evans-Pritchard of Capital Economics forecast the aggressive crackdown on pollution “would shave just short of half a percentage point off gross domestic product growth” for the final quarter of this year and beginning of 2018. LAOS’S first ever internatio­nal hospitalit­y, food and drinks exhibition, known in short as ‘LaoFood18,’ will be held at the National Convention Centre in Vientiane from June 7 to 9 next year.

To support Visit Laos Year 2018, the Lao Hotel and Restaurant Associatio­n (LHRA) in collaborat­ion with the Lao National Chamber of Commerce and Industry will jointly host the event.

Speaking to media at the event’s launch and presentati­on last week, President of the LHRA Oudet Souvannavo­ng, said Laos has hosted similar exhibition­s for many years but this event will be the biggest expo in Laos.

“This event will attract a number of domestic and foreign exhibitors to display their products of hotel supplies, furniture and other hotel and restaurant facilities,” he said, saying that the AMB Tarsus Exhibition­s Sdn Bhd ( AMB Group), a major Southeast Asian exhibition organiser, would be in charge of staging the event.

He explained the event would also hold culinar y, barista, food decoration, bartending, bed setting and bed decoration competitio­ns.

“Previously, I’ve bought a lot of hotel products from neighbouri­ng countries at considerab­le expense. So, this exhibition will attract suppliers to display their goods in our home country,” he said.

The event will also be a platform to introduce and launch new products as well as generating new business opportunit­ies.

 ?? GREG BAKER/AFP ?? A chimney and blast furnace are shown at the closed Shougang Capital Iron and Steel plant in Beijing, on April 7, 2016.
GREG BAKER/AFP A chimney and blast furnace are shown at the closed Shougang Capital Iron and Steel plant in Beijing, on April 7, 2016.
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