Jul 21

China Business News: China Hopes to Move From Excess Saving to Consumption

Editorial Staff
Feb 17, 2023
China business
Image: Phuong Uyen Vo Hoang via Unsplash

Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.

This week’s highlights:

  • The latest data released by China’s central bank showed that household deposits accounted for the majority of current growth in deposits, showing an increase of almost 7 trillion RMB in January and of 3 trillion RMB year-on-year. The issue of “excess savings” sparked discussions about weak consumption in China last year. As of now, official Chinese media reported that shifting from an excess savings pattern to one of consumption is the top priority for the Chinese economy. (The United Morning Post)
  • Around 20 of China’s 31 provincial cities, autonomous regions and municipalities have announced their local spending on the fight against COVID-19 last year. Annual budget reports show that local governments have spent no less than 352 billion RMB in 2022 to curb the pandemic. Guangdong, China’s largest province by GDP, spent a total of 71. billion RMB last year. The expenditures included vaccinations, testings and medical staff subsidies. Guangdong’s total anti-epidemic spending over the past three years amounted to 146.8 billion RMB. (The United Morning Post)
  • Major cities in China recently announced their economic growth expectations for 2023. Shanghai, Beijing, Guangzhou and Chongqing are expected to grow by more than 5.5%, 4.5%, 6% and around 6%, respectively. Shenzhen’s expectations are higher than those of Shanghai and Beijing: the city’s GDP is expected to grow by more than 6 % in 2023, a target announced by the mayor of Shenzhen in his executive report at the fourth session of the city’s seventh People’s Congress. This target is largely the same as it was for last year. (Caixin)
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