Some of China’s Cities will Become EV Powerhouses as Domestic Automakers Dream Bigger
During more than 100 years of development of the world’s automobile industry, many well-known “auto cities” have sprung up. These auto cities are generally seen as the car building capitals of the world. Auto-making giants located in these cities will help to build a sound industrial chain. In addition, there will be a large number of industrial workers employed locally. A mature automobile city means that the automobile manufacturing-based industry will promote the development of the local economy and eventually form a virtuous circle of investment, employment, export and consumption.
Since the 1980s, many automobile cities have been born in China. In these cities, the automobile industry has a great influence and is an important pillar of the local life. But there is still a big gap between these cities and world-renowned auto cities like Detroit. Entering the second decade of the 21st century, with the decline of some old auto cities, emerging ones are seizing valuable opportunities to drive the development of the entire city with the new EV industry.
China’s Six Major Commercial Banks Cut Deposit Rates to Boost Growth
On the morning of June 8, six state-owned commercial banks including the Industrial and Commercial Bank of China and the Agricultural Bank of China announced that they would cut the deposit rates. Since mid-May, as the consumer price index (CPI), fixed asset investment, real estate sales and other economic indicators have weakened, the market’s expectations for the central bank to cut interest rates have gradually increased.
Some scholars believe that the top priority for fiscal authorities is to increase financial support for infrastructure investment. The monetary authorities should cooperate with the fiscal authorities to create a low interest rate environment for the issuance of additional government bonds. In addition to cooperating with fiscal authorities, monetary authorities may consider further reducing interest rates to ease the financial burden of enterprises.
Sales of Lottery Tickets are Surging amid Economic Gloom
Since the beginning of 2023, China’s lottery tickets sales have continued to rise. At the same time, the attitude of the public towards lottery is also divided. At present, overall consumption has not rebounded, but lottery sales have bucked the trend.
According to the data released by the Ministry of Finance, the cumulative sales of lottery tickets across the country from January to April was 175.15 billion yuan, a year-on-year increase of 49.3%, hitting a new high in five years. Some people think that the lottery is a “poor man’s tax”, while others think that buying a lottery ticket is easier to get rich than working hard. Indeed, there are growing signs of weakening expectations for the economic outlook. Since the beginning of this year, the demand for risk hedging products such as gold and insurance has continued to increase. The key to solving the above problems is to improve people’s expectations for the future. It’s no secret that people’s confidence and expectations will affect the results of economic development.
Government Guidance Funds Empower Biomedical Innovation
In Zhejiang, Anhui, Chongqing and other provinces or cities, the government guidance funds have reached or exceeded 200 billion yuan. In these places, biomedicine is one of the hot sectors for government investment. There have been successful cases of local government guidance investment. For example, Suzhou’s biomedical industry, which has gradually formed an industrial cluster, has been funded by the “Suzhou Fund” established as early as 2017.
The government guidance funds have a clear goal of investing in major industries that fit the main line of regional development. Government guidance funds are more focused on guiding industry development, or encouraging innovation and ensuring employment. Each city or region will determine their key industries. Chongqing and Guangzhou all list biomedical innovation as their key investment field. At the same time, entrusting industry guidance funds to professional investment institutions has become a common choice for many local governments.
