Dec 17, 2018 / Reports & Publications
China 2018 Annual Economic Report
- Against the backdrop of regulatory tightening, quarterly growth started to slow again from 6.8% YoY to 6.7% in Q2 and further to 6.5% in Q3 amid persisting trade uncertainties.
- Policy easing has made its way back, but regulatory tightening to mitigate environmental and financial risk will remain definite drags on growth.
- During the past few months, the foreign business community has witnessed the implementa-tion of more reforms than during any similar period since China’s accession to the WTO.
- The completion of China’s governmental reform in September 2018 has seen various admin-istrative and organizational changes in the country’s healthcare regulatory landscape.
- In November, UBS became the first foreign bank approved for majority control of a Sino-for-eign JV under new rules announced last year.
- To boost household consumption and offset the negative effects of Sino-U.S. trade woes, an income tax reform was introduced in October 2018, which widens the lower tax brackets.
- Foreign trade growth remained strong, YTD exports registering +12.2% growth, while YTD imports continued to outpace exports at +20% at the end of Q3.
- Solid foreign trade gains have been attributed to the sustained recovery of the global econ-omy as well as shipments made in anticipation of higher tariffs.
- At the end of Q3, total Sino-Swiss bilateral trade amounted to CHF 34.3 billion (+29.9% YoY), as exports increased by 40% YoY and imports rose by 11.4%.