China Trade Import Export/RCEP/OBOR-221220-Abbizi Daily News

Trade alert

• Galvanized sheet: Australia postpones the release of the basic fact report and final ruling of the double reverse sunset review.
  Recently, the Australian Anti-dumping Commission issued an announcement saying that the release of the basic fact report and final ruling recommendations for the anti-dumping and anti-subsidy sunset review investigation of galvanized steel sheets with a width greater than or equal to 600 mm imported from mainland China has been postponed. It is expected that the Australian Commission will issue a basic fact report no later than March 20, 2023, and submit a final recommendation to the Australian Minister of Industry and Technology no later than May 4, 2023.

Trade

• Vietnam: China is the largest export market for its rubber. Vietnam’s “Business Daily” recently reported that in the first 11 months of this year, Vietnam’s rubber export volume was about 1.86 million tons, worth 2.93 billion US dollars, an increase of 9.1% and 3% year-on-year respectively. In the past 10 months, China, India and South Korea were the three largest consumer markets for Vietnamese rubber, accounting for 69.5%, 7.1% and 2.6% of the market respectively.
• EU: The trade deficit with Russia has reached the largest since 2008. According to a recent report by the Russian Satellite Agency, which is based on data from the statistical departments of European countries, from January to August this year, trade volume between three-quarters of the EU countries and Russia has increased. From January to August, the trade volume between Russia and Europe increased by 28% compared with the same period last year, reaching 191.5 billion euros. Among them, the EU’s exports to Russia were 36.2 billion euros, and the imports were 155.3 billion euros. The EU’s trade deficit with Russia was 119.1 billion euros, the largest since 2008.

Industry

• Unicommerce: India’s e-commerce orders to grow by 36.8% in 2022. Based on the analysis of more than 500 million transactions, India’s e-commerce industry is poised for 36.8% year-on-year growth in 2022, according to data from e-commerce enabler Unicommerce. The country’s third-tier markets such as Udaipur, Roorkee and Rohtak will grow by 64.7% year-on-year in 2022.
• Argentina won the World Cup this year, and the sales of the Argentine flag on the AliExpress platform increased by 4 times compared with the daily sales last week. After the semi-finals were decided, the Argentine flag rose twice as much as usual. In the Middle East market of the World Cup, the sales of homemade table football increased by 120%, the sales of national team flags increased by 300%, and the sales of jerseys and shoes increased by 200%.
• Strategy Analytics: Saudi Arabia’s smartphone market remained stagnant in the third quarter, marking the third consecutive quarter of decline this year. But it is still the largest market among the Gulf states. Samsung continued to dominate the Saudi Arabian market with a market share of 59%, the highest level in the past six quarters. The market share of the second largest retailer Xiaomi Q3 also hit the highest growth rate in history.
• Omdia: Samsung Display has set a shipment target of 8.5 million notebook OLED panels in 2023. A year-on-year increase of 43%. A revival in demand for notebook PC OLEDs from ASUS is crucial for Samsung Display to meet its target of 8.5 million notebook PC OLED shipments next year.
• High temperatures, drought and hailstorms have hit Europe’s hop crops hard. Its output this year will be nearly 30% lower than in 2021, and its efficiency will be well below average. The supply of some varieties may be difficult to meet the current contracts with winemakers. In addition to hop production, significant climate change is already damaging plants, so alpha acids(α酸) are also expected to decrease.
• Sealand Securities(国海证券): With the decline in the cost of lithium battery energy storage, its share of new electrochemical installed capacity in the world reached as high as 98% in 2021. The installed capacity of newly added lithium battery energy storage in the world will reach 104.93GW in 2025, and the CAGR from 2021 to 2025 will be 80%. In 2022, the demand for lithium carbonate for energy storage batteries is 31,400 tons of LCE, in 2025 it will be 183,400 tons of LCE, and the CAGR of lithium carbonate demand for energy storage batteries in 2021-2025 will be 77%.

Industry-China

• China Fund News: On December 19, data from SMM(上海有色金属网) showed that lithium carbonate (碳酸锂，99.5% battery grade/domestic) fell by 3,000 yuan, returning to the 550,000 yuan/ton mark, hitting a new low in more than 1 month, falling for 7 days in a row , In the past 5 days, it has fallen by 11,000 yuan, and in the past 30 days, it has fallen by 11,500 yuan. In addition, lithium hydroxide (氢氧化锂56.5% battery-grade coarse particles/domestic) was flat at 550,000 yuan/ton, with a cumulative drop of 6,500 yuan in the past 5 days and a cumulative drop of 4,000 yuan in the past 30 days. At the end of October this year, the price of battery-grade lithium carbonate broke through the 550,000 yuan mark, and then approached the 600,000 yuan/ton mark in mid-November.
• Development and Reform Commission: A new round of refined oil price adjustment window will open at 24:00 on December 19. Domestic gasoline and diesel retail price limits were lowered by 480 yuan and 460 yuan per ton respectively.
• Development and Reform Commission and other departments: Print and distribute the “Guiding Opinions on Promoting Housekeeping into the Community（关于推动家政进社区的指导意见）”. By the end of 2023, the “Top Runner” action to promote the quality and expansion of the domestic service industry will focus on promoting the service coverage rate of community housekeeping outlets in cities to reach more than 90%, and the service capabilities of domestic service outlets across the country will be further improved. By 2025, the country will basically achieve full coverage of community housekeeping service capabilities, promote further increases in the number of employees in the housekeeping industry, and further improve service quality.
• Ministry of Industry and Information Technology: According to industry norm announcement enterprise information and industry association estimates, the national production of crystalline silicon cells （晶硅电池）exceeds 230GW (gigawatts). In terms of polysilicon, the national output from January to October was about 610,000 tons, a year-on-year increase of more than 49.3%. In terms of silicon wafers, the national output increased by 40.7% year-on-year. In terms of batteries, the national export of crystalline silicon batteries was about 19GW, a year-on-year increase of 117.4%. In terms of components, the national export of crystalline silicon components was about 132GW, a year-on-year increase of 61%.

China

• The Central Committee of the Communist Party of China and the State Council: Issued opinions on building a basic data system to better play the role of data elements. From the four aspects of data property rights（数据产权）（安全治理）, circulation transactions（流通交易）income distribution（收益分配） and security governance（安全治理）, initially build a basic data system in my country, and put forward 20 policy measures. Reasonably lower the threshold for market entities to obtain data, and enhance the sharing and inclusiveness of data elements.

Company

• Nexon, the largest game developer in South Korea: reached a cooperation with Tencent Cloud（腾讯云）, based on Tencent Cloud’s real-time audio and video (TRTC) technology, to jointly build a virtual world community platform NEXONTOWN. Nexon is a giant in the South Korean game industry. Its well-known titles include Dungeon and Fighter (DNF), Kart Run, MapleStory and BNB.
• SHEIN will launch a third-party platform. According to the Wall Street Journal, SHEIN is planning to develop into a third-party e-commerce platform. According to an internal notice to investors, SHEIN is exploring beyond its own brand clothing and building a platform that will allow third-party merchants to sell products directly to users.
• Xiaomi: A round of layoffs has recently started, and the compensation plan is N+2. Employees reported that the layoffs were relatively large. It is understood that many departments such as the mobile phone department, the Internet department, and the China department are involved, but the layoffs vary between departments. Among them, the proportion of layoffs in individual departments in China is as high as 75%, and the Internet Department also has a team layoff of 40%.
• Musk: A vote was launched on Twitter on “whether he should step down as CEO of Twitter”. As of the closing of the voting channel, 57.5% of the votes were in favor and 42.5% of the votes were against. The final voting results will be respected. This means, if the current trend develops, he will resign as CEO.
• U.S. defense company L3Harris Technologies: Agreed to buy rocket maker Aerojet Rocketdyne for $4.7 billion. The deal would cement L3Harris’ position as one of the Pentagon’s six major defense contractors. Aerojet’s products are primarily used in NASA’s space rockets and the U.S. military’s hypersonic systems.
• Abbott （雅培）announced that it will gradually withdraw from the milk powder market in mainland China. In the future, the operation and sales of infant and children’s nutrition products in the Chinese mainland market will be gradually stopped. It is understood that the brands involved include Jingzhi（菁挚）, Enmeili（恩美力）, Qinhuo（亲护）, Xikangbao（喜康宝） and Xiao Ansu（小安素）.
• Frasers announced its results, and its revenue rose by 12.7% year-on-year. A few days ago, the British retail giant Frasers Group announced the results of the first half of the fiscal year. In the six months as of the end of October, the group’s total revenue rose by 12.7% year-on-year to 2.638 billion pounds. Although the gross profit margin fell to 42%, the pre-tax profit rose by 53% to 285 million pounds, and the net profit rose by 5.28 billion. % to £219 million.

World

• EU energy ministers are meeting in Brussels to try to reach an agreement on a cap on gas prices of 180 euros per megawatt-hour (MWh).
• Philippines: In November this year, car sales increased by 32.4% year-on-year. According to a report released by the Chamber of Automobile Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) on December 14, the country’s vehicle sales in November this year were 35,037 units, a year-on-year increase of 32.4%, the ninth consecutive month of double-digit sales. growth of.
• United Arab Emirates: Plan to sign 26 CEPAs (全面经济伙伴关系协议Comprehensive Economic Partnership Agreements) within 7-8 years. The UAE has signed CEPA agreements with India, Indonesia and Israel, and negotiations with Pakistan, Turkey, Georgia and Cambodia are underway or in the planning stages.
• South Korea: Next year will vigorously promote exports and investment. The government will focus on export and strive to provide more preferential policies to investment enterprises under the current situation. Develop targeted export support policies for biology, universe and other categories.
• Mexico: The central bank raises rates for the 13th time in a row.
• Hungary: Inflation surged to 22.5% in November, the highest increase since August 1996.
• Brazil: The output value of the service industry in October fell by 0.6% month-on-month.
• Australia: Annual inflation eased to 6.9%.
• Malaysia: The country’s exports rose 15.6% in November, more than expected, data from the Ministry of International Trade and Industry showed. Imports in November rose 15.6 percent year-on-year. The trade surplus in November was 22.3 billion ringgit ($5.05 billion).