【CONTENTS】
I. China ready to advance greater BRICS cooperation with all members: spokesperson
II. Interview: China is at center of our business, says Standard Chartered Bank Group CEO
III. BRICS countries enhance cooperation through close economic, trade exchanges
IV. Economic Watch: FTZ reforms deepen China-ASEAN economic, trade ties
V. Economic Watch: Global financial community gathers for Sibos 2024 in Beijing as China accelerates steps in financial opening up
I. China ready to advance greater BRICS cooperation with all members: spokesperson
BEIJING, Oct. 24 (Xinhua) -- China stands ready to take the 16th BRICS Summit as an opportunity to work with member countries to open a new horizon in the high-quality development of greater BRICS cooperation, a Chinese foreign ministry spokesperson said on Thursday.
Spokesperson Lin Jian made the remarks at a daily press briefing when asked to provide more details about Chinese President Xi Jinping's attendance at the summit.
The 16th BRICS Summit, held on Wednesday in Kazan, Russia, is the first summit after the enlargement of the BRICS and has attracted great attention from the international community, Lin said.
In a speech addressing the summit, President Xi welcomed new members to the BRICS family, describing the enlargement of BRICS as a major milestone in its history and a landmark event in the evolution of the international situation, Lin said.
For the future development of BRICS, President Xi called on its members to build a BRICS committed to peace and act as defenders of common security, build a BRICS committed to innovation and act as pioneers of high-quality development, build a BRICS committed to green development and act as promoters of sustainable development, build a BRICS committed to justice and act as forerunners in reforming global governance, and build a BRICS committed to closer people-to-people exchanges and act as advocates for harmonious coexistence among all civilizations, Lin noted.
China proposed at the summit that it will implement a capacity-building program for BRICS digital education and open 10 learning centers in BRICS countries in the next five years, Lin added.
The new initiatives and measures are in line with the trend of the times, reflect the common will of BRICS countries, and demonstrate China's firm commitment to and confidence in advancing BRICS cooperation, he said.
Since its establishment 18 years ago, the BRICS cooperation mechanism has become an important force in the international arena. China is not only an advocate of BRICS development, but also a contributor to growing BRICS cooperation, Lin said.
President Xi has presided over or attended the BRICS summits for 12 consecutive years, promoted the establishment of the New Development Bank, initiated the "BRICS Plus" cooperation model, and put forward a series of important proposals and initiatives, which injected strong impetus into BRICS cooperation, the spokesperson said.
(2024-10-25 Source: Xinhua News Agency)
II. Interview: China is at center of our business, says Standard Chartered Bank Group CEO
BEIJING, Oct. 24 (Xinhua) -- China remains a key focus for Standard Chartered Bank and the group's overall commitment to the country has only increased, said Bill Winters, group CEO of the banking corporation, in a recent interview with Xinhua.
"We are constantly evolving our business in China, and we are looking at where our role as a connector can be most effective and most helpful. As trade patterns change, the Chinese population becomes wealthy, and the needs of our clients in China continue to evolve. As national priorities change, we adjust our business model," Winters added.
He noted that this adjustment sometimes means expanding operations in new locations or scaling back certain services, but emphasized that the bank's overall commitment to China remains stronger than ever.
One of the bank's key growth areas has been supporting Chinese manufacturers, such as electric vehicle and battery makers, as they expand overseas, Winters said, noting that Standard Chartered has played a critical role by providing financing, currency hedging and other essential services to these companies.
As an international bank with operations across all ASEAN countries, most South Asian nations, major economies in the Middle East, and Africa, Standard Chartered is well-positioned to support Chinese companies in navigating any transition, Winters said. "We have done that, and it's been a material source of growth for our business. We'll continue to help Chinese companies in every way that we can."
According to the business leader, Standard Chartered's operations in China are benefiting from the country's economic recovery, the opening up of the country's capital markets, and the internationalization of the RMB.
Winters noted that recent policy measures introduced by Chinese authorities have been highly effective in reducing financing costs, especially in the property sector.
"The policy had the desired effect of changing the sentiment around both within consumers and investors in China. So we saw the reaction in the equity markets which improved very substantially," he said, adding that a strong and contributing China is crucial for global growth.
Earlier this year, at the China Development Forum, Winters spoke about Standard Chartered's confidence in the opening up of China's capital markets, describing the process as careful and thoughtful.
Standard Chartered was one of the first foreign banks to locally incorporate in China in 2007. Since then, it has gained a domestic fund custody license, participated in the Bond Connect Scheme between the Chinese mainland and Hong Kong, and joined the Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area. It has also been designated as one of the quoting banks for the loan prime rate by the Chinese central bank.
Winters praised the significant growth in RMB usage in trade, emphasizing that it is well on its way to becoming a truly global currency.
As a foreign bank operating in the cross-border interbank payment system both on the Chinese mainland and offshore in Hong Kong, Standard Chartered plays a leading role in advancing RMB internationalization, according to Winters.
Winters attended the Swift International Banker's Operation Seminar 2024 in Beijing from Oct. 21 to 24, marking the first time the event was hosted in the Chinese mainland. He described the experience as "fantastic."
"China is at the heart of the system of global trade and cross-border payments. So the opportunity to be here looking at the global payments infrastructure and do that through the lens of a Chinese market and Chinese perspective is a special opportunity for us and could not be more timely," Winters said.
(2024-10-25 Source: Xinhua News Agency)
III. BRICS countries enhance cooperation through close economic, trade exchanges
BEIJING, Oct. 24 (Xinhua) -- Economic and trade ties among BRICS countries are becoming increasingly close, and China is playing an important role in driving mutually beneficial BRICS cooperation.
The term BRIC was initially coined in 2001 as a concept referring to the emerging market economies of Brazil, Russia, India and China. With South Africa's inclusion in 2010, BRICS officially took shape.
Following last year's expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world's population, and one-fifth of global trade. It has become the world's most important platform for solidarity and cooperation among emerging markets and developing countries.
The 16th BRICS Summit, held Tuesday to Thursday in Kazan, Russia, has drawn global attention and is believed to bring new economic and trade cooperation opportunities between China and other BRICS nations.
China's foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1 percent, customs data showed.
The trade growth can be attributed to a high degree of economic complementarity, as well as China's commitment to high-level opening up and the free trade agreements between China and other BRICS countries, said Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.
In the industrial sector, China's exports of steel and textile raw materials to other BRICS nations grew by 8.6 percent and 13.4 percent year on year in the first three quarters.
During the same period, China's exports of intermediate goods such as integrated circuits, tablet display modules and aircraft parts to other BRICS countries achieved double-digit growth, helping other BRICS members boost their emerging industries.
Trade in agricultural products has also been robust. In the first three quarters, over 80 percent of poultry and frozen pollack and over 50 percent of crabs imported by China came from BRICS members.
"For BRICS countries, trade cooperation is not only conducive to promoting technological exchanges and innovation but also to bringing more development opportunities for member countries and even the world," Hong added.
Regarding the financial sector, the New Development Bank is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the Shanghai-headquartered institution provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.
Funding a raft of projects ranging from India's urban rail to Brazil's wind power complexes, the bank has cumulatively approved loans of 35 billion U.S. dollars for more than 100 projects to date.
Building on its commitment to multilateralism, BRICS has taken practical steps to unlock the potential of economic and trade cooperation and create new growth areas. These include policy coordination and joint initiatives to enhance trade and investment opportunities among member states.
At the 14th BRICS Economic and Foreign Trade Ministers' Meeting held in Moscow in July, participants agreed to step up exchanges and cooperation in emerging areas such as global value chains, digital technologies and special economic zones, conduct practical cooperation in green product standards, electronic documentation and e-commerce, and strengthen policy exchanges, capacity building and best practice sharing.
By enhancing economic and trade exchanges, BRICS countries have capitalized on their complementary advantages, serving as an important force to oppose trade protectionism and promote global economic growth, noted Liu Ying, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.
(2024-10-25 Source: Xinhua News Agency)
IV. Economic Watch: FTZ reforms deepen China-ASEAN economic, trade ties
NANNING, Oct. 22 (Xinhua) -- In a bustling fruit processing facility in south China's Guangxi Zhuang Autonomous Region, the air is sweet with the luscious aroma of mangoes. Workers diligently manage a state-of-the-art, fully automated production line, preparing to send the delectable products to eager markets across Southeast Asia.
In recent years, with the deepening of economic cooperation and the trade exchange of agricultural products between China and the Association of Southeast Asian Nations (ASEAN), the complementary advantages of agricultural products trade between Guangxi and ASEAN have become more prominent. The geographical advantages of land and sea links with ASEAN have also injected vitality into the continuous expansion of Guangxi's fruit exports.
According to data from the Nanning Customs, in 2023, Guangxi imported 16.71 billion yuan (about 2.4 billion U.S. dollars) of ASEAN agricultural products, a year-on-year increase of 43.1 percent. At the same time, Guangxi's special fruits, such as orah mandarins and sweet tangerines, have also been well received in the ASEAN market.
The thriving fruit trade has also spurred related companies to invest and establish their operations in Guangxi.
Guangxi Junyi Agricultural Science and Technology Co., Ltd, a mango-processing company established in 2020 in the Chongzuo area in the China (Guangxi) Pilot Free Trade Zone (FTZ), is the region's first border-based fruit processing enterprise with an annual main business turnover of at least 20 million yuan.
"The pilot FTZ's policies, including tax incentives, streamlined trade procedures and financial innovations, have not only laid fertile ground for growth but also provided substantial cost benefits to businesses," said Shen Wuyang, the company's deputy general manager.
Guangxi, often described as China's gateway to ASEAN, has risen to the forefront of China's trade and cooperation with ASEAN in recent years, thanks to the establishment of the pilot FTZ.
In 2019, the pilot FTZ was established to promote China's opening up to ASEAN and to pilot new mechanisms in China-ASEAN cooperation. Since its inception, the pilot FTZ has proven to be a powerhouse, taking up a 37.7 percent share of Guangxi's total foreign investment and a notable 38.6 percent share of the region's foreign trade volume.
The pilot FTZ comprises the Nanning area in the region's capital city, the Qinzhou Port area along the coast and the Chongzuo area bordering Vietnam.
The Chongzuo area is home to Youyiguan Port, or Friendship Pass, one of China's busiest land ports for the trade of fruit.
Thanks to the development of economic and trade relations between China and ASEAN, Youyiguan Port's cargo clearance efficiency has doubled.
"Our cargo predominantly goes to Southeast Asia, with Vietnam taking up 80 percent of our shipments and the remainder being distributed to places like Malaysia and Thailand," noted Wang Shuqing, operations supervisor of a supply chain management company in Guangxi.
The zone's Nanning area focuses on the development of modern finance, the digital economy and modern services. It is pioneering innovation in cross-border finance and renminbi businesses, especially those working with ASEAN nations.
"Previously, cross-border transactions between Guangxi and Indonesian companies involved an intermediate step of converting RMB to U.S. dollars before changing it to Indonesian rupiah. Now, we can achieve direct settlements," said Bai Lili, deputy general manager of a China CITIC Bank branch located in the Nanning area of the pilot FTZ.
As the pilot FTZ's only coastal area, Qinzhou Port Area is establishing itself as a high-level gateway port that facilitates the transportation of cargo between China and ASEAN.
According to Ye Jun, an official with the administrative committee of Qinzhou Port Area, the industrial focus of the area is on petrochemical projects, with quite a number of petrochemical enterprises having already set foot in raw material and preliminary processing in ASEAN countries.
So far, more than 38,000 new enterprises have been established in Qinzhou Port Area, including 355 foreign-funded companies. Among the over 150 industrial projects operational or under construction, the area has attracted investments exceeding 300 billion yuan and is home to four enterprises with annual outputs of over 10 billion yuan.
(2024-10-22 Source: Xinhua News Agency)
V. Economic Watch: Global financial community gathers for Sibos 2024 in Beijing as China accelerates steps in financial opening up
BEIJING, Oct. 24 (Xinhua) -- The Swift International Banker's Operation Seminar 2024 (Sibos 2024) taking place for the first time in Beijing signifies that China is welcoming global financial institutions to participate in the development of the financial industry to contribute to its economic growth by offering professional services.
This is according to Nicole Zhou, Senior Partner at McKinsey & Company, who attended the event from Oct. 21-24 at the China National Convention Center in Beijing. Zhou said the scale of China's banking institutions is already very large and they are seeking in the next step to become global financial institutions as they support Chinese firms' overseas operations. "This process will require the professionalized development of the entire banking industry and a financial system that promotes globalization and interconnectivity."
At around 6 p.m. on Tuesday, the convention center was still crowded, with its exhibition hall and aisles filled with people from the global financial community discussing business.
This is the first time Sibos has been held in the Chinese mainland since its inception in 1978. A total of 114 foreign-funded institutions and 19 Chinese-funded institutions participated in the event, including global financial institutions such as J.P. Morgan, Citibank, HSBC, Standard Chartered and Deutsche Bank, as well as financial institutions from emerging markets such as India, the United Arab Emirates and Africa.
"This is the third time that I attended a Sibos conference. In previous years, it was mostly held in North America and Europe, but this time it is held in Beijing, which not only reflects the rise of China and even Asia's financial industry but also reflects China's attitude of embracing the world," said Zou Xiaonan, head of digital assets, UBS Group Treasury, who flew from London to Beijing for the meeting.
"DBS benefits from China's financial liberalization and opening up in multiple ways. First, the financial liberalization and opening up had a significant positive effect on Chinese growth and Chinese integration with the rest of ASEAN, where DBS is active. DBS has sought to capitalize on these trends through our participation in the Cross-border Interbank Payment System, capturing more of the cross-border trade and financing opportunities of Chinese corporations," said Soon Chong Lim, group head of Global Transaction services at Singapore-based DBS Bank.
According to Lim, his schedule in Beijing has been very busy. On Tuesday alone, he had already met several dozens of clients at the convention center. Because of the huge gathering, Lim said he couldn't even book a meeting room and had to talk to clients standing.
A DBS staff member told Xinhua that DBS Bank took Sibos very seriously and started preparing for it six months ago. As part of its arrangements, the bank offered specially brewed Singaporean coffee and tea at the convention.
Bill Winters, group CEO of Standard Chartered Bank, who has visited China several times this year, said that China is constantly accelerating the pace of opening up in the financial sector. As the first newly established wholly foreign-owned securities company in China, Standard Chartered Securities China Limited officially commenced its business earlier this year, bringing new opportunities to the group's business in China.
Alan Ho, Co-Senior Country Officer for China at J.P. Morgan, said that the pace of China's financial market opening up has accelerated in recent years. For example, foreign ownership restrictions in local securities, funds and futures companies have been lifted and financial markets' connectivity mechanisms have been maturing more quickly than expected. "Benefiting from China's opening up policies, J.P. Morgan now fully owns multiple legal entities in the country, including a locally incorporated bank, a securities company, a futures company and an asset management venture."
Apart from traditional financial institutions, fintech companies also benefit from China's continued financial opening up. On Tuesday, Singapore-headquartered cross-border payments company Thunes launched a payment solution during the Sibos 2024 that aimed to facilitate the payment of foreign nationals in China. The solution will enable overseas e-wallets such as Kenya's M-Pesa and Singapore's Singtel Dash to make payments within China by scanning QR codes.
Thunes CEO Floris de Kort told Xinhua that overseas travelers in China can simply make payments with Thunes function embedded in their e-wallets.
In 2023, Thunes established a wholly-owned subsidiary in Beijing, which marked important progress in the opening up of the city's financial sector. "With the continued opening up of the Chinese economy, the cross-border payment industry will also usher in greater opportunities with the increase of payment scenarios," said de Kort.
Effie Xin, EY Greater China Financial Services Partner, said that the opening up of the financial sector will help Chinese financial institutions better learn from the advanced experience of global financial institutions. Meanwhile, the connectivity of financial markets can also help promote the status and influence of Chinese currency RMB in cross-border payments, trade and investment, and currency reserves.
Sibos is the annual conference, exhibition and networking event organized by Swift for the financial industry. Starting out as a banking operations seminar in 1978, it has grown into the premier business forum for the global financial community to debate and collaborate in the areas of payments, securities, cash management and trade.
Over 10,000 participants from more than 150 countries and regions have gathered for Sibos 2024, which covers a wide range of topics, including payments, digital assets, trade financing, artificial intelligence and sustainable finance.
(2024-10-25 Source: Xinhua News Agency)
