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Meeting with Amazon and Yamato in Japan: Three-pillar strategy of the e-commerce market

To guarantee this technological leap linked to international trade, we need to implement a strategy based on three pillars: 1) digitalisation, 2) the development of digital payment systems and 3) the strengthening of the logistics sector. Without one of these factors, the internationalization of companies cannot be completed, in a world that always gives more room to digital forms of trade, even cross-border.

Manufacturing 2025 works on

China’s economy is likely to grow by 6.8% year on year in the first quarter of 2017, driven by increasing production activities and investments, according to a report by National Academy of Economic Strategy (NAES). The positive trend seen in 4Q 2016 has continued into the first quarter of 2017. Industrial production, fixed assets investment, real estate and infrastructure development have all gone up. It will be very unusual for China to beat its own 6.5% as estimate. However, if the first quarter of the 2017 really were to post 6.5% GDP growth, that would be a very good result for the economy. And, more importantly, for the confidence that world economy may have on futures perspectives of China.

CPPCC/NPC: Less emphasys on economic issues, as I argued before

Since last year, I have argued that economic growth in China would take a less and less important role in China’s political agenda. My view is that Chinese policymakers are well aware that growth cannot be sustained for the foreseeable future and are therefore looking for new objectives and for a new narrative that can maintain social stability. It is a bit like an ex-post rationalization of a problem: “Given that GDP growth cannot be sustained, let’s play down the importance of the economy and focus on other goals so that we can continue to meet those – new – objective”. The output from the Two Session seems to go in this direction.

Premier Li on the CPPCC published the Government Work Report

Premier Li on the CPPCC published the Government Work Report, setting the key growth target for 2017. GDP growth target is expected to be 6.5%, government deficit target to be 3%, CPI to be 3%., and the unemployment rate to be 4.5%.
Last year, the GDP growth rate was 6.7%, with total GDP reached 74.4 trillion yuan. CPI increased by 2%. Industrial profitability turned positive from -2.3% in 2015 to 8.4% in 2016.

China Labor Cost continues to rise: Middle Income Trap?

On Saturday, I attended a job fair held at Shanghai Stadium. I stopped and talked to many of the companies trying to recruit new workforce – a typical scene post New Year – and many told that they cannot find anyone. The average manufacturing industry salary in China has increased by 300%, to 3.6US$ per hour in last ten years. The current salary has exceeded Brazil, Mexico, and it is catching up with Greece and Portugal. Although manufacturing industry is one of the leading industries, thus employing large number of people, the average salary nationwide has also growth from 1.5 dollars per hour to 3.3 dollars per hour over the last 10 years.

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