Fan Gang, director of China’s National Economic Research

 Institute and vice president of the China Society of Economic Reform

Structural reform on the supply side and the macro adjustment to the demand-side can be done at the same time.

While we must push forward with reforms continuously, whenever there are econom

ic fluctuations, it is still necessary to take some macro-control measures.

That’s what developed countries and market-economy countries have done to stabilize their economies over the years.

We can’t hold back some necessary adjustment me

asures on the demand side just because supply-side reform fails to see results. We need action on both sides.

When we discuss reforms, don’t forget that if the reform isn’t rolled out amid a stable develop

ment environment and the economy doesn’t move at a stable growth level, it will be hard to advance many reforms.

Huang Yiping, deputy dean of the National School of Development of Peking University

www.goshlf419.com

The UK made a proper move by introducing ways to

After Chinese sportswear brand Li-Ning returned to the catwalks of New

York Fashion Week for the second time ever on February 12, the appearance quickly be

came a hot topic of discussion on social media in China. Several years ago, Li-Ning probably never dared imagine that i

ts products could become so popular among young people in China. However, not only has the company found great suc

cess with this demographic, it has also pushed many older Chinese brands to explore new paths to young people’s hearts.

Bumps along the way

The company gets its name from Li Ning, the pride of China. With 14 gold medals at world-class gymnastic competitions, thr

ee of them Olympic gold medals, he earned himself the title “Prince of Gymnastics.” Chinese people still talk ab

out the moving scene when he lit the torch at the 2008 Beijing Olympic Games. After retiring from gymnastics, Li fo

unded the sportswear brand in 1990, becoming not only a legend in sports but also in business.

www.shb419.com

Due to the positive influence of the Beijing Olympic

sales reached an all-time high of 9.47 billion yuan ($1.397 billion) and a net profit of 1.10 billion yuan in 2010, according to the company’s financial reports. At this key point, Li-Ning took ai

m at China’s Post-1990 demographic by changing its decade-old slogan “Anything is Possible” to “Make the Change.” Ho

wever, this move didn’t strike the chord the company wanted for its rebranding. Li-Ning lost older customers, but

failed to immediately gain younger customers. In 2012, losses for the company reached 1.97 billion yuan.

Realizing its mistake, the company began reusing the old slogan in 2015, which is also the first year

it became profitable again. According to a report from Chinese magazine New Marketing, since th

en Li-Ning has focused more on digital marketing to make its products closer to street culture.

On February 2, 2018, Li-Ning made its first appearance at New York Fashion Week, grabbing the attention of the audience with clothing in r

eds and yellows, the colors of Chinese National Flag, and big Chinese characters that said “China Li Ning.”

The theme of the show was xing, which means go or walk in Chinese, but also has the additional mean

ing of “we can do it.” Featuring urban and outdoor clothing with strong Chinese elements, the show,

which had numerous celebrities from China and the US in attendance, lifted Li-Ning to new heights.

shb419.com

It was after his retirement that Li’s influence reached the

pinnacle. Since the end of the 1980s, he had made his voice heard constantly and had been labeled the “CPC veteran cadre + CPC critic.”

As a representative figure among veteran outspoken officials, he was hailed among Chinese liberals and Western public opin

ion. Among his propositions, the most famous was opposing the construction of the Three Gorges Dam.

Looking back on Li’s life, the prime of his life was embedded in the wave of the Chinese Revolu

tion and the country’s early development; he suffered a lot during that period of time.

In his later years, he participated in the creation of a special type of “veteran cadre + critic.” Stronger opinion was not at al

l unusual in those years, but the label of a retired official helped increase the gravity of Li’s voice and consolidated his stance.

Li’s later years were a success from another perspective as well. He had been enjoying a

generous pension and lavish benefits after retirement until he died in Beijing Hospital.

While benefiting from the privileges the state provided, he was also supported by China’s do

mestic anti-establishment forces and some Western powers. He was one of China’s least lonely old men and veteran cadres.

It should be noted that Li in his later years became a symbol of the diversificat

ion of Chinese society. Considering the meaning of this symbol, different conclusions can be drawn.

Supporters may hold that he had added a voice and more importantly a “scarce voice,” while

opponents would argue that he had become a tool for hostile and unfriendly forces to attack the Chinese system.

Li’s later years demonstrated a special way of boycotting China’s mainstream path. Such a role played by him may reflect various value judgments.

shj419.com

Under the China-proposed Belt and Road Initiative, investment

from China has improved local infrastructure, resolved the country’s chronic energy crisis, a

nd made Pakistan a more attractive destination for foreign investment. We cannot give up halfway. Th

e question now is how to maximize the efficiency of Chinese loans to benefit the local people and Chinese investors.

Although Saudi Crown Prince Mohammed Bin Salman has reportedly postponed his trip to Pakistan amid heightened t

ensions between India and Pakistan, Pakistan is still likely to get an economic package from Saudi Arabia to support its economy.

China will be pleased to see the CPEC become leverage for increased economic cooperation betw

een Pakistan and the international community. Closer economic interaction will help maximize th

e efficiency of Chinese investment and promote regional economic integration. As Pakistan further integrates itself into the

global economy, foreign investment is likely to yield more employment benefits and help the country fight poverty. Prob

lems such as security concerns have also posed challenges to the CPEC. If foreign investment can help reduce p

overty and fight terrorism in the South Asian country, it will create a virtuous circle for the development of CPEC.

shg419.com

According to The Travel & Tourism Competitiveness Repor

eased by the World Economic Forum, global tourism revenue contributed over 10 percent of the global GDP, but China’s domest

ic tourism revenue was around 5.5 percent of its GDP, which has been the world’s second highest since 2012. C

ompared with its economic volume, the Chinese tourism industry is not very well developed, which may have something to d

o with the overall low disposable income levels of Chinese residents. For example, in 2017, China’s gross national inc

ome (GNI) per capita ranked 69th in the world, while the US GNI per capita was 6.5 times that of China during the same time period.

In recent years, various local governments have been making great efforts to promote the increase of local tourism revenue

s by building traditional towns, exploring and developing local history, local culture and other tourist resources. It is certainly justified for au

thorities to develop tourism, to expand domestic demand, to increase “green” GDP and promote an economic transformation. However, it should be no

ted that the development of a tourism industry is closely related to the growth of residents’ disposable income. As the income level of residents rises, the to

urism industry will naturally see a rapid development. In the context of the declining growth of residents’ disposable i

ncome, it is completely unrealistic to achieve a rapid growth in tourism revenues. Furthermore, as various local gov

ernments are competing to develop tourism resources, this may lead to an “oversupply” within the tourism ind

ustry, and this will result in a low efficiency of fiscal expenditure and a waste of precious resources.

In short, it is of fundamental importance to find ways to improve the disposable income level of re

sidents as well as social security and welfare, which is the prerequisite for sustainable prosperity.

sh419co.com

In the guidelines, the regulator set detailed rules on

the basic prerequisites that micro and small enterprises should meet to renew their loans and on the regulatory

requirements for banking institutions to do this type of business.

The loan renewal policy does not apply to real estate companies or enterprise group head office that are not engaged in production

and business operation. Besides, qualified companies should not have delinquent loans and interests with malice, according to Jiang.

In terms of pricing, the regulator said commercial banks should adhere to market principl

es and encouraged banks to renew micro and small business loans at a lending rate no higher than the previous rate.

As of the end of 2018, the balance of micro and small business loans of the banking sector in Beijing

increased by 15.23 percent year-on-year to 1.2 trillion yuan ($176.95 billion). During the same pe

riod, the number of micro and small enterprises that received loans grew by 59,500 to 257,200.

A recent survey on 617 micro and small businesses in 200 villages in Beijing’s peripheral areas found that at the start-up phase, 13 perc

ent of the businesses obtained bank loans, 13 percent borrowed from friends and relatives, 8 percent secured funding from

microcredit companies, nearly 8 percent received loans from small lending services offered by Alibaba Group Ho

lding Ltd and Tencent Holdings Ltd, while the majority of business owners used their own money or borrowed from individual creditors, said Mo Xiugen, di

rector of research at the Chinese Academy of Financial Inclusion at Renmin University of China.

He advised policymakers to encourage joint-stock commercial banks and microcredit com

panies to play a bigger part in providing financing to micro and small companies, as these financial institu

tions are more flexible and experienced in serving small business clients than large State-owned commercial banks.

sh419ff.com

nside the workshop of Jilin province’s ‘last blacks

Tian Hongming, 67, has been dubbed the “last blacksmith by the fire” by the people of Changchun, capital of northeast China’s Jilin province.

Having picked up the skill of forging iron at the age of seven from his grandfather, Tian has made a living from the skill for more than half a century.

In the 1990s his business reached its peak, selling more than 80,000 iron products a year, Tian said.

With increaed industsrialization and the cheaper and more intricate iron products it brought however, Tian and his workshop went into decline.

Although fewer customers now choose handmade iron products, Tian sticks to the traditional craft and takes every order seriously.

In 2015 his skill was listed among the city’s intangible cultural heritages.

“Sometimes, the flow-line productions can’t meet the special needs of custo

mers, so the craft will never be replaced,” he said. “And I will continue my business as long as the market and customers need me.”

www.sh419tt.com

Nation’s property sector remains robustperty models in Donggu

Experts said the Spring Festival holiday was the major factor behind the significant drop in property sales perfor

mance nationwide in the first month of 2019 and did not necessarily represent a negative market trend for the industry.

According to Centaline Property Agency’s research, in January property sales declined by 38 p

ercent year-on-year in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.

Among the four cities, Guangzhou saw the most dramatic decrease of 65 percent year-on-year, followed by Beijing, where home sales dropped by over 40 percent.

Country Garden, one of the country’s biggest developers, sold 33 billion yuan ($4.88 billion) of prop

erty in January, a 52.2 percent yearly decline. Vanke, whose monthly sales were 48.8 billion yu

an, saw a 28.1 percent drop year-on-year, while Evergrande Group’s sales performance shrank by 32.9 percent.

Third and fourth-tier cities accounted for most of the sales, but these had also slowed down com

pared to the same period in 2018. Zhang Dawei, chief analyst at Centaline, said the lack of e

nthusiasm from buyers was caused by the overheated market during last year’s Spring Festival.

“During the Spring Festival in 2018, housing prices in first and second-tier cities suddenly increased, triggering price

rises in lower-tier ones too,” said Zhang. “Back then, buying properties in one’s lower-tier hometown became a trend.”

sh419zz.com

Sao Paulo orchestra makes debut in ChinaState Symphony

The Sao Paulo State Symphony Orchestra of Brazil, the first South American symphony to t

our China, will hold a concert at the Shanghai Grand Theatre on the night of Valentine’s Day.

The event also marked the first time the symphony’s female conductor Marin Alsop is involved in a performance in China.

Alsop, who is one of the most prominent students of the late US musician Leonard Bernstein, introduced the symphony’s m

usic style as “accessible with folk elements” and highly rhythmic, which is “a hallmark of the Brazilian music”.
The

concert program, she added, is perfect for Valentine’s Day as it “begins with lots of fire and ends with lots of romance”.

The concert opened with Bernstein’s Candide Overture, followed by works from Brazilian composer Heit

or Villa-Lobos and Argentine Alberto Ginastera. The second part featured Sheherazade by Russian artist Nikolai Rimsky-Korsakov.

Following its China premiere in Shanghai, Alsop and the Sao Pa

ulo symphony will go on to play in Jinan of Shandong province, Beijing and Hong Ko

ng, where the company will feature as the opening performance for the Hong Kong Arts Festival on Feb 21.

www.ashck.com