MNI China Press Digest Nov 21: Budget, Nexperia, Exports

Highlights from Chinese press reports on Friday:

• China’s general public budget spending will need to grow 12.9% year-on-year in November and December, if authorities are to meet their annual budget targets, according to Yang Yewei, chief fixed-income analyst at Guosheng Securities. Yicai reported that although broad fiscal spending maintained steady growth over the first 10 months, the pace slowed noticeably in the third quarter, with a double-digit decline recorded in October. With broad fiscal revenue during the first 10 months essentially flat year-on-year, spending growth of 5.2% underscores the strength of the government’s fiscal stance, Yicai noted.
• China welcomes the Dutch government’s voluntary suspension of its takeover of Nexperia, the Dutch subsidiary of China’s Wingtech, viewing it as a first step in the right direction toward resolving the issue, Ministry of Commerce spokesperson He Yongqian told reporters. He said the Netherlands bears responsibility for the current disruption and emphasised that a full resolution of the matter will still require further effort.
• China’s e-commerce exports to Europe are expanding rapidly as sellers redirect their focus amid U.S. geopolitical tensions, according to Jiang Qing, head of an international freight-forwarding company who spoke with Yicai. However, Jiang noted that growth could face headwinds if the EU moves forward with plans to eliminate the EUR150 tax-free threshold for parcels in the first quarter of next year. Feng Lin, executive director at China Chengxin International, said October’s negative 1.1% year-on-year export growth partly reflected last year’s high base as well as fewer working days this October.