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:
- At the 20th National Congress of the Communist Party of China, Premier Li Keqiang sent positive signals to the market acknowledging that China’s economy is moving upward. However, the release of a number of key economic indicators scheduled for 18 October has been delayed for unknown reasons, raising concerns among some investors that China’s growth may continue to slow. It is believed that the delayed release is apparently not because the latest data is “disastrous,” but more likely because the relevant ministry leaders at the 20th National Congress did not have time to approve it before the meeting. (The United Morning Post)
- The U.S. government’s escalation of export controls on semiconductor technology to China has affected U.S.-based semiconductor equipment makers. Tim Archer, president and CEO of U.S. semiconductor equipment maker Panlin, said during the company’s third-quarter earnings call that the new export control policy will lead to the company’s revenue reduction by up to $2.5 billion in 2023. On 7 October, the Bureau of Industry and Security under the U.S. Department of Commerce issued a number of export control measures against China. Among them, three red lines were drawn for chip manufacturing equipment and related items. (Caixin)
- The RMB exchange rate mid-price stayed at around 7.1 this week, according to data from China Money Network. Overall, the RMB exchange rate remains stable against the basket of currencies. The market expects the U.S. economy to fall into recession within 6-12 months, and around this time the Federal Reserve will likely shift from a hawkish monetary policy to a dovish one before entering a cycle of interest rate cuts. The U.S. dollar index is expected to weaken significantly by that time, and the pressure on the depreciation of the yuan will be greatly reduced. (Finance Sina)