MNI China Press Digest Nov 19: Hainan, Consumption, Exports

Highlights from Chinese press reports on Wednesday:

• China’s Hainan Free Trade Port (FTP) is set to officially initiate island-wide independent customs operations on Dec 18, according to a local customs official cited by the Global Times. “The launch elevates Hainan’s strategic position within China’s broader opening-up framework and advancing institutional opening-up,” said Liang Haiming, dean of the Belt and Road Research Institute at Hainan University. He added that global enterprises are expected to accelerate investment and business establishment on the island, deepening Hainan’s integration into global industrial chains and strengthening its role as a key gateway for China’s reform and opening-up in the new era.
• China must increase its household consumption rate to offset constrained demand from negative population growth during the 15th Five-Year Plan period, according to Cai Fang, a leading academic at the Chinese Academy of Social Sciences. To ease demand-side pressure, officials must raise residents’ income levels and strengthen consumption capacity, particularly by improving social security for the elderly and enhancing their participation in productive activities. China’s Gini coefficient of 0.465 remains relatively high, Cai noted, pointing out that a level below 0.4 is considered healthier. Improving distribution requires faster income growth among low-income groups, more moderate growth for high-income earners and a substantial expansion of the middle-income category, Cai argued.
• In October, China’s export volumes of “the new three” reached 374,995 electric vehicles, 40,498 million lithium-ion batteries and 128,274 million solar panels, rising 69.3%, 17.2%, and 73.1% year-on-year, Securities Daily reported. From January to October, the export value of EVs, lithium-ion batteries and solar cells grew 35.6%, 27.5% and -11.9%. Although solar cell export value declined, export volumes increased 69.7% year-on-year, the report said. According to Securities Daily, emerging sectors such as high-end equipment and robotics, as well as new business models such as cross-border e-commerce, are rapidly expanding and shaping a new landscape for trade development.