US Dollar Exchange Rates of
China Yuan 6.3734
Report from China
Additional fiscal stimulus expected as PMI drops
The National Bureau of Statistics recently released the
official purchasing managers index (PMI mainly reflecting
the performance of State enterprises) for August which
came in at the weakest level since August 2012.
The index was down sharply from July but the drop was
widely anticipated. However, this is still a startling figure
as this is the first time the official PMI has fallen below 50
in six months.
The National Bureau of Statistics says ¡°among the five
sub-indices comprising the PMI, the production index, and
supplier delivery time index were still above the negative
threshold but the new orders index, employed person
index and main raw materials inventory index were below
In response to the weak numbers and the overall decline in
economic performance the government is expected to
expand its fiscal stimulus efforts during the second half of
the year probably with a focus in infrastructure
Analysts are anticipating that growth may fall below 7% in
the second half of this year. The August PMI was 49.7
falling below the negative threshold.
Trade in timber across Yunnan border suspended
According the Yunnan Import and Export Chamber of
Commerce for Timber and Mineral Products between 1
September and 31 December administrative procedures for
controlling timber imports in Yunnan will be reorganised
and as a result no timber import shipments will be
processed through the Yunnan border entry points.
The spate of trade disputes involving timber shipped
through Yunnan from Myanmar is the underlying cause
for the re-organisation. Many Chinese have been arrested
in Myanmar for allegedly breaking Myanmar‟s forest and
immigration laws. Recently a court in Myanmar sentenced
150 Chinese loggers to 20 years in prison for illegal
logging and violating the law.
The Chinese government is deeply concerned about the
situation on the border and has temporarily suspended the
trade in timber from Myanmar.
New timber shipping channel for the Northeast
According to the government of Dalian city, the
construction of the Zhuanghe Imported Timber Trading
and Processing Centre will begin operations this year.
With the opening of the new facility the northeast region
will be serviced by 3 dedicated timber berths. The Port
will be able to handle nearly 3 million cubic metres of
wood products annually. Construction of all facilities will
be completed in March of 2016.
Increase in wooden furniture exports through Suifenhe
Between January and August this year wooden furniture
exports through Suifenhe port soared 300% to a value of
US$3.24 million, a record high. This comes at a time when
international trade levels have begun to fall.
The main products exported were household furniture
including living room, kitchen and bedroom items as well
as some home office items. Shipments were made to more
than 30 countries.
In order to promote expansion of wooden furniture
production and export the Suifenhe Entry-Exit Inspection
and Quarantine Bureau has implemented paperless
electronic processing of documents and „one-stop‟
customs clearance which has reduced transaction costs for
The Suifenhe Entry-Exit Inspection and Quarantine
Bureau prides itself on its efficiency in support of trade
facilitation and exporters enjoy the benefits of accelerated
and efficient export document processing.
OSB imports fall
According to data from China Customs OSB imports in
the first half of 2015 fell 23% to 52 900 cubic metres. The
average FOB price for imported OSB dropped 11% to
US$252 per cubic metre.
The main sources China‟s OSB imports for constructional
enduses were the US and Canada.
OSB imports for non-structural end-uses were mainly
from Brazil, Romania, Germany and Latvia but the total
from these countries fell 30% to 32 900 cubic metres.
Imports from Romania however, rose 15% to 23 600 cubic
metres while imports from Germany were down 31% to 6
800 cubic metres. The biggest decline was seen on OSB
imports from Brazil (down 86%).