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Liu He, China’s Top Economic Architect, Supports the Growth of Private Enterprise

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Liu He led the Chinese delegation in the negotiation with the US to a ceasefire of the US-China trade war
Liu He and Trump are seen announcing the signing of the Phase I Agreement of the US-China Trade Deal

Vice Premier Liu He, one of the top architects of modern Chinese economy, reassures the Chinese of the Chinese government’s immutable support for the private sector, specially small businesses. He is also a member of the 19th Politburo of the Chinese Communist Party, the highest ranking institution within the party. The Politburo, comprised of 25 members, is led by President Xi Jinping.

Liu He is also considered by may as the modern Chinese economic philosopher. He earned his BS and MS degrees from the Renmin University of China and his MPA from Harvard Kennedy School of Government.

He led the Chinese delegation in the negotiations with the US on the Phase I of the US-China trade deal and its signing in the White House in 2019.


For further information on his most recent reassurance of the Chinese government’s commitment to the private sector, visit www.https://www.chinabankingnews.com/2021/09/07/chinas-top-economic-architect-reiterates-support-for-the-growth-of-private-enterprise/.

China news: ICBC offers Personal Loans for Overseas Study

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ICBC the most valuable retail bank in the world

Industrial and Commercial bank of China (ICBC), the largest lender on the planet in terms of Tier 1 capital, profits before taxa and assets (www.thebankerdatabase.com: The Largest 10000 banks globally)

ICBC Personal Loan Descriptions:
1. High amount: The upper limit of drawable personal loan for overseas study is RMB 2 million (USD 310,000); the upper limit of non-drawable personal loan for overseas study is RMB 1 million.
2. Long loan term: The loan term is up to ten years.
3. Many guarantee options: Mortgage, pledge and warrandice are all accepted.
4. Flexible granting: The loan can be all granted at the first request or granted in different batches based on the time of payment of the tuition, accommodation cost, living cost, etc.
5. Various comprehensive services: ICBC provides credit certification, personal foreign exchange purchase, foreign exchange settlement, account-opening witness, overseas account opening, application for international credit card and other supporting services combined with the loans for overseas study.
Notes: The drawable personal loan for overseas study refers to the RMB loan to pay the tuition and related fees and living cost of the borrowers or their direct relatives during their study abroad; the non-drawable personal loan for overseas study refers to the RMB loan to handle formalities of overseas study or dependence of the borrowers or their direct relatives and related credit certification recognized by the embassy.

Source: ICBC 2020 Annual report-ICBC Global Rankings & Awards 2020

Qualifications of ICBC Personal Loan Borrowers
1. The borrower is a natural person with full capacity for civil conduct at an age between 18 (inclusive) and 65 (inclusive).
2. The borrower has the legal and valid identity certificates, certificate of marital status, local household registration certificate of the lender (or valid certificate of residence).
3. The borrower’s rating in the internal retailing rating system meets relevant regulations.
4. The borrower has a good credit history and the intention of repayment.
5. The borrower has stable income and the ability to repay the loan principal and interest on time and in full amount (the non-drawable loan excluded).
6. The overseas study loan has clear and relevant uses. The loan purposes shall be in accordance with laws, regulations and rules of the state, as well as the regulations of consulates of relevant countries and regions.
7. The borrower is able to provide legal, valid and reliable guarantee recognized by the lender.
8. The borrower has opened a personal settlement account in ICBC.
9. Other conditions required by the lender.
☆ Documents Required
1. Application for Personal Loan for Overseas Study of ICBC.
2. Original and duplicates of valid identity certificates, household certificate (household register or other valid certificates of residence), certificate of marriage status (marriage certificate, divorce certificate, singlehood statement, etc.) of the borrower.
3. Original and duplicates of certificate for relationship between the borrower and dependent (household register, birth certificate, etc.)
4. Personal repayment ability certificate, such as the individual tax certificate, salary certificate, investment income certificate, rental income certificate, certificate of financial asset purchased in ICBC or other banks in the past six months.
5. Loan use certificate. It includes the enrollment (admission) letter issued by the school or other effective enrollment certification. As an alternative, those who haven’t got the enrollment (admission) letter or other effective enrollment certification yet can provide the Self-funded Overseas Study Agency Service Agreement signed between the student and overseas study agents recognized by ICBC, or other effective certification recognized by the lender.
6. The ownership certificate shall be provided for guarantee provided in the form of mortgage (pledge).
7. If the borrower is the student to study abroad or the dependent, he/she should designate at least one domestic co-borrowers, and a copy of notarized Power of Attorney (except for the non-drawable loan), designating his/her domestic agents who are granted full power to dispose the mortgage (pledge) on behalf of the borrower in accordance with the contract.
8. For the guarantee provided by financing guarantee agencies, relevant materials of the guarantor should be provided as required by the bank.
9. Other documents or materials required by the lender.
(Source: http://www.icbc.com.cn/ICBC/EN/PersonalFinance/CrossborderFinancialServices/PersonalLoanforOverseasStudy/PersonalLoanforOverseasStudy.htm)

The above is for reference only. Details refer to the rules drawn up by local ICBC branch. To save your time, please call your local ICBC before applying for the service.

IDR 725 Kuadriliun, Terbesar di Dunia, Aset Perbankan China

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Perbandingan Aset Perbankan China vs AS & UE

Bangsa China terkenal hidup irit dan menabung sekitar 45% dari pendapatan mereka, Salah satu haislnya: perbankan China memiliki aset yang terbesar di dunia.

Ada 192 buah bank umum di China plus 3 buah bank pelaksana kebijakan pemerintah (policy bank).

CBIRC (Komisi Pengaturan Perbankan dan Asuransi China) menerbitkan laporan pada 11 Mei 2021 bahwa per akhir Maret 2021, jumlah asset perbankan China, yang beroperasi di China plus cabang-cabang LN mereka, dalam Yuan (CNY; RMB) dan valas mencapai IDR 725.000 T*, atau IDR 725 kuadriliun (K; 1015), naik sebesar 9% dari yang tercatat per akhir Maret 2020 (www.cbirc.gov.cn: Supervisory Statistics of the Banking and Insurance Sectors – 2021 Q1 Statistics, diterbitkan pada 11 Mei 2021).

Nilai itu adalah sekitar 2,3 X jumlah aset perbankan AS yang sekitar IDR 315 K* (www.fred.stlouisfed.org: Total Assets of All Commercial Banks, 08/04/2021), atau 1,4 X jumlah aset perbankan Uni Eropa yang IDR 515,77 K* (www.ecb.euro.eu: ECB publishes consolidated banking data for end-March 2021), atau sekitar 78 X jumlah aset perbankan umum Indonesia yang IDR 9,3 K per akhir Maret 2021 (Laporan Profil Industri Perbankan-Triwulan 1 2021 oleh OJK).

*Sampai saat ini, mirip perbankan Uni Eropa (UE), perbankan China masih dominan dalam penyediaan dana ke sector ekonomi China karena pasar obligasi China masih sedang tumbuh (baru bernilai pasar sekitar IDR 288 K). Sebaliknya, aset perbankan AS lebih kecil daripada pasar obligasi AS (IDR 662 K) yang terbesar di dunia.  Perbedaan lainnya: (i) Baru sekitar 2,9% dari nilai pasar obligasi China dimiliki oleh investor asing; (ii) sekitar 30% dari nilai pasar obligasi AS maupun UE sudah dimiliki oleh investor asing.

Perbandingan Aset Perbankan China vs yang AS & Uni Eropa (UE)

Tabungan Bangsa China dari sebagian hasil Kerja Keras

Itu adalah salah satu hasil iritnya bangsa China: mereka menabung sekitar 45% dari GDP mereka. Sebagai perbandingan, bangsa kita menabung antara 28,3% dan 37,8% antara 2010-2017 (www.ceicdata.com) yang dilaporkan secara kuartalan. Itu adalah angka-angka kotor tabungan (gross savings rate) sebagai hasil pengurangan angka GDP nominal oleh pengeluaran konsumsi final.

Riwayat Kenaikan Rasio Tabungan Bangsa China terhadap Penghasilan yang Dapat Dibelanjakan sejak 1955

Karena GDP China selama 2020 adalah sekitar USD 15,8 triliun, tabungan baru bangsa China selama tahun 2020 saja berjumlah sekitar USD 7,11 triliun (IDR 102,384 triliun), atau 11,23 kali jumlah aset perbankan Indonesia per akhir 2020, yang sekitar IDR 9.117,91 triliun, rekor sejak merdeka pada 1945, dengan catatan: kenaikan asset perbankan Indonesia selama pandemi Covid-19 (Februari 2020-sekarang) disebabkan oleh jutaan usaha tutup dan banyak sekali di antara yang lainnya mengurangi kegiatan mereka sehingga mereka menyimpan modal kerja mereka di perbankan sejak April-Mei 2020. Fenomena yang mirip juga terjadi perbankan China selama Februari-Mei 2020, yaitu kenaikan mendadak dana pihak ketiga sekitar IDR 22.000 triliun. Fenomena itu sudah berakhir di China sejak Juni 2020 karena ekonomi China bangkit kembali dengan cepat.

Rasio tabungan rumah tangga Indonesia secara Kuartalan, yang rata-rata sekitar 32% per tahun.

Empat Bank Terbesar (the Big Four) dan Enam Bank Terbesar (the Big Six) di China

Enam buah bank umum yang terbesar di China (the Big Six**), yang empat di antaranya (the Big Four***) juga terbesar di dunia, yaitu ICBC (IDR 74,8 K, sekitar ), CCB (IDR 64,8 K), ABC (atau AgBank) (IDR 61,9 K) & BoC (IDR 56,1 K), plus Postal Savings Bank of China  (PSBC) (IDR 25,9 K) dan Bank of Communications (BOCOM) (IDR 24,4 K) (semuanya tercatat di Bursa Efek Shanghai), memiliki jumlah aset sekitar IDR 307,9 K, naik sebesar 8,1% dari yang tercatat per akhir Maret 2020, sehingga menguasai sekitar 42,4% dari aset total industri perbankan China. Sebagai perbandingan, bank umum yang terbesar di ASEAN berdasarkan jumlah aset adalah DBS (IDR 7 K) dari Singapura dengan banyak kantor cabang, perusahaan anak dll di LN, yang mencakup Indonesia.

**Menurut laporan keuangan masing-masing per akhir Maret 2021

***1.Berdasarkan jumlah aset, keempat bank milik China itu merupakan bank-bank yang terbesar ke-1, ke-2, ke-3 dan ke-4 di dunia menurut Standar-Standar Pelaporan Keuangan Internasional (IFRS). JPMorgan Chase adalah yang ke-6 dan Bank MUFJ (Jepang) ke-5.(www.spglobal.com: 100 Largest Banks 2021)

Sumber: www.spglobal.com, diolah

      2.Persaingan antara JPMorgan Chase dan Bank MUFJ dalam jumlah aset. Berdasarkan Prinsip-Prinsip Akunting yang Disetujui secara Umum di AS (US GAAP), JPMorgan Chase adalah bank terbesar ke-4 di dunia dan MUFG ke-6. Perbedaannya: IFRS menghitung nilai aset turunan secara bruto sedangkan US GAAP menghitungnya secara bersih.

Sumber: www.spglobal.com, diolah

(TST & GAI)

Key to success in a country’s education & economic growth: Train people in the specialties it needs

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logo Universitas Peking, China

A recent example is China’s fast and amazing economic growth. They build one science and technology university nearly every week. Now they graduate about 4.7 million engineers a year, the most in the world.

Some of the fruit of Chinese education:

  1. China landed the world’s first probe on the dark side of the moon. Click on this link to view a number of related videos of this event: https://www.google.com/search?q=chinese+probe+landed+on+the+dark+side+of+the+moon&oq=chinese+probe+landed+on+the+dark+side+of+the+moon&aqs=chrome..69i57.18339j0j4&sourceid=chrome&ie=UTF-8 .
  2. China launched the world’s first triple-mission to Planet Mars and landed both the Martian lander and Zhurong rover there. The rover is now roaming the planet (https://www.usatoday.com/story/news/world/2021/06/11/china-mars-rover-zhurong-new-photos/7655529002/)
The right way of developing a country: train people in the specialties a country needs, specially science and technology.

Fore more information about China’s plan to rival MIT and Stanford in science and research, click on this link:https://www.scmp.com/tech/policy/article/3135087/us-china-tech-war-china-taps-12-top-universities-rival-mit-and-stanford.

Fore more information about Peking University, click on this link:https://english.pku.edu.cn/.

Stealth fighters obsolete: China’s Tsinghua University developing a new type of quantum radar

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logo of Tsinghua University
The School of Aerospace Engineering of Tsinghua University has been developing a new type of quantum radar capable of detecting stealth fighter jets.

It costs China much less to destroy any stealth fighters built by the US and others. a team of Tsinghua University scientists in Beijing, China, has been researching a new type of quantum radar under the leadership of Prof. Zhang Chao of the university’s aerospace engineering school.

The South China Morning Post reports (link below) that the university,110 years old (https://www.tsinghua.edu.cn/en/Schools___Departments.htm), is now looking for partners to make a prototype of the radar.

Source: www.lockheedmartin.com: F-35 Stealth Fighter Jet

For more information about how Chinese radars can detect stealth fighers, open this video link: China’s New Radar technology mark the end of the US’ stealth dominance: https://www.youtube.com/watch?v=q_s8E7LWTjY

COSCO SHIPPING Holdings’ stock price has soared by nearly 100% YTD on its huge profit of USD 5.7 billion in 1H of 2021

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Cosco Shipping Holdings

The Chinese state-owned company COSCO SHIPPING Holdings, ranked second in the world in terms of shipping capacity while Maersk Line of Denmark first, has seen its stock price soaring by nearly 100% YTD as it made a huge profit of CNY 37.1 billion (USD 5.7 billion) in 1H of 2021, roughly 32 times what it made in the same period last year (Y-on-Y).

Its financial results, dated July 7, 2021, were reported to the HKEX (see https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0707/2021070701353.pdf), entitled ‘

POSITIVE PROFIT ALERT
REGARDING 2021 INTERIM RESULTS
The Board wishes to inform the Shareholders and potential investors that the Group is expected to record a net profit attributable to the Shareholders for the Reporting Period of approximately RMB 37,093 million, as compared to that of approximately RMB 1,137 million for the six months ended 30 June 2020; and the Group is expected to record a net profit (after deducting non-recurring profit and loss) attributable to the Shareholders for the Reporting Period of approximately RMB37,021 million, as compared to that of approximately RMB 882 million for the six months ended 30 June 2020.’


Picture source: company website

See its stock price chart below

Chart Source: Google, quoted on Sept 4, 2021

Yicai Global reported on September 3, 2021, that the company signed an agreement to buy 10 new container ships at a cost of USD 1.6 billion for delivery between the 4th quarters of 2024 and 2025. Last July, the company penned another agreement to buy 10 container ships at USD 1.5 billion. with other purchases, the company is waiting to add 32 new ships between 2023 and 2025.

SMIC to Build USD8.9 Billion Fab in Shanghai Amid Global Chip Shortage

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Tesla Model S, made in Shanghai

SMIC, the largest fab firm in China, is going to set up a new fab in Shanghai, Yicai Global reports today.

Most young smokers have low IQ levels

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Tesla Model 3
Smokers should be rich

A study in Israel among young smokers found that most smokers have low IQ levels and smoking has caused these levels to even go down.

The difference between what the poor do in China and those in the USA

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Excerpted from the YouTube video, entitled “China’s 600 million poor people, ” hosted by China Teacher Brand, June 25, 2020

Every time that I go into the comments section and the kind of YouTubers, you hear people saying, ah, China has 600 million poor people. There are so many poor people in China. What are you talking about? China being a superpower or not? and I thought well, perhaps it is a good idea to talk a little bit about what we consider poor here here, in China.

I think that there are two kinds of the working class; first, you have those poor people in the countryside; those are farmers and most of these people, well, have something else. So that’s an important thing to consider. They have food that they can grow; they have eggs, pigs, and cows, whatever, and they also grow rice, potatoes, fruits. Yeah, so they’re not so worried about whether you’re going to eat tomorrow for breakfast; board for dinner… what you would consider work.

But see people live here; it’s not an issue if it’s not the best facilities in the world. So, Let’s talk a little bit about the farmers in the countryside, right? They have shelter. They have a place to lay their head to rest at night after a long day of work.

So having food and shelter doesn’t really ring as poor somebody who doesn’t have a way to live. Is it an ideal situation? No, do they have the latest comforts and the technology? No. Do they have access to education; it might be limited. Do they have access to health? It might be limited, but think about the poor in America. If you don’t have a job, do you have social insurance? So if you have medical insurance, such an insurance probably does. But, do you have medical insurance? Do you have food Insurance? Are you sure that you’re going to have enough money? If you need to work, two or three jobs just to put enough money on the table. Do you have enough money to pay for rent? That’s an important difference to consider.

So, let’s think about those farmers here in China who decide to come to the city and work in the city. Let’s say, they don’t have a university degree. So what job can they find? They can find work at a factory. So, … you know that one of the first things that factories do is they build the dormitory for their workers.

There are factories with thousands of workers. And that’s what they do. They build a dorm; is it a penthouse? No, it’s a room shared with four, five, six, or seven people, and well it is not the best accommodation in the world. But, they have shelter. Compare that to the homeless in Los Angeles.

For example, they wish they had a place to lay their head at night. They wish they had guaranteed food because that’s the next thing that factory workers receive. They get three meals a day. So if you are 18 years old, and you don’t want to work in the land, you don’t want to work on the farms, you can go to a factory and get employed and you get shelter and food and on top of that, you get the minimum salary.

Here in my city, Donguan, it is a thousand eight hundred RMB a month, which is about 300 to 350 dollars a month. The thing is that’s the money in their pockets. That’s money that if they wanted to have, and believe me, many of them. Do they save it? Yes, they save it all. That’s why this is where tradition of Chinese people plays a very important role.

Chinese people love to save money; this young guy making three hundred and fifty dollars a month knows that in 10 years, he will have saved about $40,000 perhaps $ 50,000 or $60,000. That is going to be enough money for him to go out and invest in creating his own business, starting his own thing, because after 10 years or 15 years, he has enough experience and enough connections and now he has enough money to go out there and try to build something for himself by himself.

That’s the huge, huge advantage that they have when you’re thinking about city dwellers in America, for example, when you can’t save, you have nothing to look forward, you have nothing to wish for because you know, you’re stuck. You’re not gonna get out of this situation.

Well, the situation is very different here in China: a factory worker knows that in 10 or 15 years, His situation is going to be very different. And then again, we’re talking about poor people. These people care about the latest fashion? Most of them don’t. Do these people care about the latest technology? the latest iPhone? They couldn’t afford it. They don’t adopt. It doesn’t matter to them. They are fixated on and obsessed with the future, with creating a different future for themselves: working, saving, and getting experience, so that they can Become the factor of change in their lives.

What about America? What is the trend in America? The trend is the opposite: more and more people are finding themselves having to have two or three jobs to stay afloat, to pay for rent and to pay for the food that they need to put on the table. So, that’s what I wanted to share with you guys when people come and say to me,” Oh there are so many poor people in China.”

They do not really know that they are very different kind of the poor and that’s the thing when you have no prospects in life. That’s poverty of the soul. That’s probably the worst kind of policy. So let’s not judge China and Chinese poverty or the poor in China so quickly; take a minute to analyze how they are different from the poor in the West.
and see that well, it’s not that bad.

A major cultural value between China and America: Saving Face, excerpted from a YouTube video, entitled “5 Major Differences between America and China,”

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June 2020, hosted by Jack Finch

I’m sure you’ve all seen the iconic scenes of New York City traffic jams, horns blaring, two cars have collided and people screaming at each other in the street. Well, in China, cultural values make China a very different place.

Chinese culture has a huge emphasis on saving face. And any kind of public confrontation is pretty much just never done. It’s very rare to see people arguing in the streets and you will 100% never see a fist fight l…. it It’s incredibly rare for people to sue each other or even go to court in China. Both parties have to agree to be in court in order to file a lawsuit. The things have to be pretty tense before it gets to that.

Compare this with the United States, where, well, people sue each other for sneezing the wrong way crazy. There are even stories of motorcyclists in Beijing crashing into each other getting up off the ground looking at each other and then just ride in a way without a single word being said, they just don’t want the hassle of public confrontation.