National Economy Registered A Stable Performance
In the first half of the year, the real growth rate of total value added of the industrial enterprises above the designated size was 6.7% year on year, 0.1 percentage point lower than that of the first quarter. An analysis by types of ownership showed that the value added of the state holding enterprises went up by 7.6% year-on-year, collective enterprises down by 1.9%, share-holding enterprises up by 6.7%, and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 6.2%. In terms of sectors, the value added of the mining grew by 1.6% on a year-on-year base, the manufacturing grew by 6.9% and the production and supply of electricity, thermal power, gas and water grew by 10.5%. The value added of high-tech industry and equipment manufacturing industry grew by 11.6% and 9.2% year-on-year respectively, 4.9 percentage points and 5.2 percentage points higher than that of the industrial enterprises above the designated size as a whole. In June, the total value added of the industrial enterprises above the designated size went up by 6.0% year on year. In the first five months of 2018, the total profit made by industrial enterprises above the designated size was RMB 2,729.8 billion, up by 16.5% year-onyear. The profit rate from principal businesses of industrial enterprises above the designated size was 6.36%, 0.35 percentage point higher than that of the same period last year.
Imports and exports of services
In January-may of 2018, the total volume of China’s imports and exports of services reached RMB 2.10247 trillion, up 12% year-on-year. Among these, the export amount was RMB 691.53 billion, up 13.3%; the imports reached RMB
1.41094 trillion, up 11.4%; and the trade deficit was RMB 41 billion. The official of the Department of Trade in Services and Commercial Services pointed out that China’s imports and exports of services mainly showed the following features in the period of January-may 2018.
The growth rate of imports and exports of services reached a new high since the beginning of this year. In January-may China’s production index of service industry grew by 8.1%, driving the growth of import and export of services hitting a new high, 3.2 percentage points higher than that of goods in trade over the same period. In terms of the US dollar, in January-may, the growth rate of imports and exports reached 21.4%, that of exports reached 22.8% and that of imports reached 20.8%, all of these were much higher than those of the US in January-may, which were 7.4%, 6.6% and 8.5% respectively. The import and export of service took up 15.3% of the total foreign trade, 0.7 percentage points higher than that in the same period last year.
Trade in new services realized rapid growth. In January-may, imports and exports of new services was RMB 58 billion, increasing by 18.6%, 6.6 percentage points higher than the overall growth rate and driving the proportion of new services up 1.9% Among these, exports of new services was up 23.3%, accounting for over 52.4% of the total export of services, 4.3 percentage points higher than that of last year; exports of telecommunication, computer and information service increased by 56.3% and export of transfer fee and consigned research and development of R&D achievements increased by 24.9%; imports of new services rose by 13.8%, taking up 23.5% of the total import of services, 0.5 percentage points higher than that of the same period last year. Among these, the import of permission fee of audio visual and its related products and insurance services increased by 58.4% and 18.2% respectively.
Imports and exports of traditional services maintained a stable growth. In January-may, the import and export volume of three largest traditional services like tourism, transportation and construction increased by 8.2%, 12.5% and 13.2% respectively.
With the supply-side structural reform and the acceleration of the upgrading and transformation of manufacturing, China’s international competitiveness is expanding from manufacturing to service gradually, and at the same time, high quality household consumption demands is growing rapidly. In the future, China’s service trade will continue the favorable development trend, and the national brand influence of “China Service” and new advantages of international competition will be more prominent.
The outward investment cooperation in the first half of 2018 maintained its stable and sound development, mainly showing the following features:
The investment in the countries along the Belt and Road routes and the cooperation with them were promoted steadily. In the first half of 2018, the new investment amount in 55 countries along the Belt and Road routes reached up to USD 7.4 billion, with an increase of 12% year on year. The total value of the newly signed contractual projects in countries along the Belt and Road routes amounted to USD 47.79 billion, taking up 44.8% of China’s total value of overseas contractual projects over the same period of time; the turnover was USD 38.95 billion, taking up 53.5% of the total amount in the same period. 82 overseas economic and trade cooperation zones are constructed in 24 countries along the Belt and Road routes with the new investment amount reaching USD 2.59 billion, taking up 87% of the total new investment in China’s overseas economic and trade cooperation zones; the taxes paid to the host countries reached USD 0.3 billion, taking up 71.4%.
The way of outward investment showed innovation and cross-border mergers and acquisitions became the main means. In the first half of 2018, different kinds of forms such as green field investment, M& A, joint investment, physical investment, equity replacement and round-tripping capital have emerged. Among these, in terms of cross-border mergers and acquisitions, relevant enterprises conducted 140 mergers and acquisitions, covering 16 industries over 41 countries and regions, and the actual transaction value reached USD 26.11 billion, mainly from manufacturing industry and mining industry.
The str ucture of outward investment industries was constantly optimized and the ir rational investment was effectively restrained. In the first half of 2018, outward investment mainly wentto lease and commercial service industry, manufacturing, mining industry and wholesale and retail industry, taking up 32.6%, 15.8%, 11.5% and 9.5% respectively. No new projects were added in real estate, sports and entertainment areas.
The construction of overseas economic and trade cooperation zones had remarkable achievements, promoting the common development of China and the host countries. By the first half of 2018, 113 overseas economic and trade cooperation zones had taken shape in 46 countries with a total investment of USD 34.87 billion, attracting 4,542 enterprises to enter into the zone, paying the taxes of USD 2.86 billion to the host countries and creating 287,000 jobs in the local regions.
There are many newly signed big contractual foreign projects, obviously pulling up the export. In the first half of 2018, the value of 356 overseas contractual projects was over USD 50 million, adding up to USD 90.55 billion, accounting for 84.8% of the total value of the newly signed contracts. The exported goods pulled up by contractual projects amounted to USD 8.99 billion, up 23.1% year on year.
In the first half of 2018, the relevant administrative departments filed and checked 3,743 overseas investment enterprises, and the amount of China’s contracted foreign investment reached USD 68.25 billion. Among these, 3,719 non-financial foreign investment enterprises were filed or checked, and China’s contracted foreign investment reached USD 63.27 billion; 24 financial foreign investment enterprises were filed or checked, and China’s contracted foreign investment reached USD 4.98 billion.