Daily Macro Economy News on 24th,April

1. PBC: It will continue to deepen the exchange rate market reform, enhance the flexibility of the RMB exchange rate

2. Ministry of Commerce: Promote gradient transfer of processing trade, will identify the second batch of national processing trade industrial parks

3. Director General of the International Department of the Central Bank: take many measures to do a good job of financial support for stabilizing foreign trade

4. Ministry of Commerce: China's foreign trade situation is still complex and severe

International News

1. The USEPA is ready to propose the first time to limit carbon emissions from power plants

2. Colombia oil well explosion has caused five casualties

3. Japan will subsidize half the cost of lithium and key mineral projects

4. UNSG Antonio Guterres has called for accelerated climate action

1、PBC: It will continue to deepen the exchange rate market reform, enhance the flexibility of the RMB exchange rate

Jin Zhongxia, the director of the International Department of the People's Bank of China (PBC), said that the next step, PBC will continue to improve the market-based supply and demand, reference to a basket of currencies for adjustment, managed floating exchange rate system, and continue to deepen the market-oriented reform of the exchange rate, enhance the flexibility of the RMB exchange rate, guide enterprises and financial institutions to establish the concept of risk-neutral, comprehensive measures, stable expectations, to maintain the RMB exchange rate at a reasonable balanced level.

2、Ministry of Commerce: Promote gradient transfer of processing trade, will identify the second batch of national processing trade industrial parks

Wang Shouwen, international trade negotiator and vice minister of the Ministry of Commerce, said to promote the gradient transfer of processing trade. In this regard, we do a good job of processing trade to undertake the cultivation, strengthen policy support and improve the docking mechanism. In the next step, we will continue to support the transfer of processing trade to the central and western and northeastern regions on the basis of what we have already done. To this end, we will identify the second batch of national processing trade industrial parks, and next month we will hold the 13th Processing Trade Products Expo in Dongguan, Guangdong, to organize industrial connection between the central, western and northeastern regions and coastal areas, and promote the transfer and upgrading of processing trade.

Resource: Chinanet

3、Director General of the International Department of the Central Bank: take many measures to do a good job of financial support for stabilizing foreign trade

The People's Bank of China (PBC) has taken many measures to do a good job of financial support for stabilizing foreign trade, said Jin Zhongxia, the director general of the International Department of the People's Bank of China. The first is to reduce the financing cost of the real economy. The weighted average interest rate of Chinese enterprise loans fell by 34 basis points year-on-year to only 4.17% in 2022, which is a relatively low level in history. Secondly, financial institutions were guided to increase their support for small-and-micro enterprises and private foreign trade enterprises. By the end of 2022, the balance of inclusive small-and-micro loans increased by 24% year-on-year to RMB24 trillion. Thirdly, financial institutions were guided to provide exchange rate risk management services to foreign trade enterprises and waived foreign exchange transaction fees related to banks' services to small, medium and micro enterprises. For the whole of last year, the hedging ratio of enterprises increased by 2.4 percentage points to 24% compared with the previous year, and the ability of MSMEs to hedge the risk of exchange rate fluctuations was further improved. Fourthly, the environment for cross-border trade settlement in RMB was continuously optimized to improve the level of cross-border trade facilitation.

Resource: Chinanet

4、Ministry of Commerce: China's foreign trade situation is still complex and severe

Wang Shouwen, the vice minister of the Ministry of Commerce and the international trade negotiator, said at a press conference that the foreign trade situation has been very severe this year. The Ministry of Commerce and various localities and departments work closely together, and the majority of foreign trade enterprises have taken a series of measures to stabilize orders and develop the market. In the first quarter, China's foreign trade import and export achieved a 4.8% growth, which is not easy, achieved a "stable start-up". However, we must admit that China's foreign trade situation is still complex and severe, and is facing many difficulties and challenges.

Resource: E Company

International News

1、The USEPA is ready to propose the first time to limit carbon emissions from power plants

According to the New York Times, people familiar with the matter have revealed that the US National Environmental Protection Agency (USEPA) is preparing to propose the first restrictions on carbon emissions from power plants. The power plants account for 25% of the total carbon emissions in the United States, but in the 3,400 coal-fired and gas-fired power plants in the United States only less than 20 use emission reduction technology. It is reported that this restriction would require almost all coal and gas-fired power plants to reduce their carbon emissions by 2040, or to implement carbon capture and storage technologies that capture almost all of the carbon dioxide emitted, and would apply to existing and future power plants. The proposal will not mandate the use of carbon capture technology, but operators will be required to meet pollution rate caps.

2、Colombia oil well explosion has caused five casualties

An explosion occurred in an oil well in the San Vicente de Chucuri region of Santander province in northern Colombia on the afternoon of the 22^nd, April, spreading fire to oil extraction equipment, causing five people to be injured and extensive damage to extraction equipment. After the incident, the local fire department sent personnel to put out the fire and the emergency rescue department sent the injured to the hospital for treatment. The fire has now been brought under control and the cause of the accident is under investigation.

3、Japan will subsidize half the cost of lithium and key mineral projects

Japan's Ministry of Economy, Trade and Industry (METI) will subsidize half the cost of smelting and mine development projects for Japanese companies in key minerals such as lithium, Nikkei Asia reported. The program aims to secure raw materials such as lithium and rare-earth metals, which are vital for electric vehicle batteries and engines. The Japan Metals and Energy Security Organization will reportedly set up a fund to provide support by allocating 105.8 billion yen (US$788 million) from the budget for related expenditures. Lithium, manganese, nickel, cobalt, graphite and rare earths are the main targets for the support.

4、UNSG Antonio Guterres has called for accelerated climate action

The UN Secretary-General (UNSG) Guterres called on the international community in a video message to accelerate climate action, while urging governments to play an important leadership role in protecting the environment. “We need to accelerate climate action to reduce emissions deeper and faster to limit warming to no more than 1.5 degrees Celsius, ”Guterres said, “We should also massively scale up investments in adaptation and resilience, especially in the most vulnerable countries and communities that are least responsible for causing the climate crisis.”

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