MNI China Press Digest Nov 27: Profits, Consumption, Nexperia

Highlights from Chinese press reports on Thursday:

• Profits of high-tech manufacturing enterprises rose 8.0% y/y in the first 10 months of the year, 6.1 percentage points higher than the average growth rate of all industrial enterprises above designated size, the 21st Century Business Herald reported, citing data from the National Bureau of Statistics. Profits in intelligent unmanned aerial vehicle manufacturing and intelligent vehicle equipment manufacturing surged 116.1% and 114.9%, respectively, the newspaper said. In October, industrial profits fell 5.5% y/y, reversing September’s 21.6% growth, mainly due to a higher base in the same period last year and a faster rise in financial expenses, the NBS said.
• China aims to form three trillion-yuan-level consumption sectors and 10 hundred-billion-yuan-level consumption hotspots and create a batch of high-quality consumer goods with global renown by 2027, according to a plan jointly released by six departments. The plan, focused on addressing the supply-demand mismatch by providing systematic policy support, stated the contribution of consumption to economic growth will steadily increase by 2030. Intelligent connected new energy vehicles, smart homes, and consumer electronics are the key focuses. (Source: Shanghai Securities News)
• China hopes the EU will play a constructive role by urging the Dutch government to propose a workable solution to the Nexperia issue as soon as possible and create favourable conditions for the company to conduct internal consultations, Chinese Commerce Minister Wang Wentao said during a video conference with his EU counterpart on Wednesday. Wang said the Netherlands’ recent decision to suspend its administrative order marked a small step toward resolving the issue, but that improper administrative and judicial intervention against the company has yet to be lifted. European Commissioner for Trade and Economic Security Maros Sefcovic said the EU is willing to work with China to ease tensions further and push the situation toward stabilisation. (Source: Ministry of Commerce website)