2024-03-01 14:49:00
Xi Jinping, General Secretary of the Communist Party of China, called for accelerating the construction of a charging infrastructure network system to support the rapid development of new energy vehicles, which for the second time in a week injected positive factors into the development of China’s automobile industry. Chinese Prime Minister Li Qiang also called for active replacement of old consumer goods such as automobiles with new ones to create a scale effect of replacement.
Boosted by the good news, Hong Kong auto stocks generally performed well on Friday, with Xpeng Motors and NIO rising 8.2% and 6.2% respectively.
Scholars interviewed analyzed that China’s top leaders have recently encouraged automobile consumption in order to achieve stable economic growth in the short term, but in the long term they will also increase investment in infrastructure and promote new energy vehicles to the countryside.
Xi Jinping presided over a collective study session of the Political Bureau on Thursday (February 29), calling for further building a new energy infrastructure network and accelerating the construction of a charging infrastructure network system. Xi Jinping also called for giving full play to the advantages of the new national system, strengthening joint research on key core technologies, cultivating energy technology and related industries into new growth points that drive China’s industrial upgrading, and promoting the development of new quality productivity.
China’s auto sales got off to a bad start this year and continue to face internal and external challenges. Data from the China Passenger Car Market Information Joint Conference show that China’s new energy vehicle sales fell 30% month-on-month in January. U.S. President Biden announced on Thursday that he has ordered the Department of Commerce to investigate the national security risks posed by Chinese electric vehicles and other connected vehicles to the United States, which may affect Chinese automobile exports to the United States.
In order to boost domestic automobile sales in China, when Xi Jinping chaired a meeting of the Central Financial and Economic Commission last Friday (February 23), he requested that traditional consumer goods such as automobiles be encouraged to trade in old ones for new ones.
Chinese Prime Minister Li Qiang chaired an executive meeting of the State Council on Friday (March 1) and reviewed and approved the “Action Plan for Promoting Large-Scale Equipment Updating and Trade-in of Consumer Goods”, requiring active trade-in of consumer goods such as automobiles and home appliances to create a scale effect of replacement.
Yao Shujie, an economics professor at Chongqing University, pointed out in an interview with Lianhe Zaobao that new energy vehicles and intelligent connected vehicles, as emerging strategic industries, have now become an important part of China’s efforts to create new productive forces. Since last year, they have developed well. However, the industry has faced a certain degree of saturation for a long time, and external challenges have also affected exports.
New productivity was first proposed by Xi Jinping during his inspection in Heilongjiang last September. It refers to the new productivity generated through continuous breakthroughs and innovations in science and technology.
Encourage automobile consumption to expand domestic demand
Hope to strengthen technological innovation and improve profits
Yao Shujie analyzed that China’s top leaders are currently focusing more on achieving stable economic growth in the short term by encouraging automobile consumption to expand domestic demand. However, in the long term, they are also considering strengthening technological innovation and improving basic and applied research through more investment in order to improve the profitability of Chinese automobile companies. .
Yao Shujie has judged that increasing the layout of the charging system is crucial for bringing new energy vehicles to the countryside. He believes that the central government will further promote the standardization of charging piles and conduct more pilot projects in areas with higher population density outside cities.
As China’s factory activity has shrunk for five consecutive months and the economic recovery continues to be unstable, Xi Jinping also chaired a meeting of the Political Bureau of the Communist Party of China on Thursday, calling for intensifying macroeconomic control, coordinating the expansion of domestic demand, enhancing economic vitality, improving social expectations, and consolidating and strengthening the economy. The trend is improving.
Lu Ting, chief economist of Nomura China, expected on Friday that China’s weak economic growth momentum will continue into March, and is expected to grow by only 4% year-on-year in the first quarter, 1.2 percentage points slower than the fourth quarter of last year.
Yao Shujie analyzed that China’s current investment growth rate is low and consumption alone cannot drive the economy in the long term. He believes that China should consider moderately increasing its fiscal deficit and increasing investment in social services, education, medical and other fields. This will not only more effectively boost residents’ consumer demand, but also cope with the risk of the current economy falling into deflation, which will be more important to China’s later development. favorable.
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