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Li & Fung cuts China’s role in supply chain as it shifts sourcing to cheaper markets in Southeast Asia

Global supply-chain giant Li & Fung will source less than half of its goods from China this year for the first time in 15 years as the company looks elsewhere amid rising manufacturing costs and the trade war.China accounted for 51 per cent of Li & Fung’s total sourcing business in 2018, down from 54 per cent in 2016, according to chief executive Spencer Fung.“It gives us an advantage and helps our customers to mitigate the risk of US tariffs on Chinese goods and increasing labour costs in… Source link

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Victor Li reports weaker than expected profit in first annual result since taking over CKI from Li Ka-shing

Hong Kong conglomerate Cheung Kong Infrastructure Holdings (CKI) posted a below expectation 1.8 per cent increase in profit on Wednesday, with chairman Victor Li Tzar-kuoi reporting the company’s first set of annual results after taking over from his father, Li Ka-shing, in May 2018.Net profit for last year amounted to HK$10.44 billion (US$1.34 billion), an increase of 1.8 per cent over 2017, but 7 per cent less than the average of HK$11.23 billion estimated by 10 analysts polled by Bloomberg… Source link

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Chinese Premier Li Keqiang says foreign investment law shows Beijing is serious about opening economy further

The passage of the new foreign investment law shows China is serious about addressing foreign investors’ concerns, as it continues to open up its domestic market, Chinese Premier Li Keqiang said on Friday.But while foreign observers agreed the law is a step in the right direction, concerns remain that it does not go far enough. There is also widespread doubt among the foreign business community that it will be effectively implemented.In total, 2,929 lawmakers at the National People’s Congress … Source link

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China will not ‘discriminate’ between state and private companies, vows Premier Li Keqiang

China will not “discriminate” between state owned and private companies, with Premier Li Keqiang vowing to roll out a series of measures to alleviate some of the burdens felt by the private sector including lowering the cost of financing.“We will ensure all companies benefit from our administrative streamlining measures. There should be no discrimination,” Li said at the conclusion of the National People’s Congress (NPC) in Beijing on Friday.“Through years of efforts, we have cut the time… Source link

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Li Keqiang says it’s time for Chinese government to ‘turn the blade inward’ to boost jobs growth

China has pledged to create more than 11 million new jobs this year – equivalent to the population of Belgium and more than that of Hong Kong – as it tries to ensure social stability amid an economic slowdown and rising tensions with foreign countries.Wrapping up the annual legislative sessions on Friday, Premier Li Keqiang said Beijing was aware of the downward pressure from the economy, with GDP growth slowing to 6.6 per cent last year – its weakest pace since 1990.But he ruled out any… Source link

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More prudent regulations to come for China’s sharing economy, says Premier Li Keqiang

Chinese Premier Li Keqiang says more prudent regulations will need to be adopted to help grow the country’s sharing economy, which has sparked public concern after years of being a magnet for major venture capital investments.“Like any new business, [the sharing economy] has its ups and downs,” said Li in a press conference on Friday to mark the conclusion of the annual gathering of China’s parliament. “But in general, it creates jobs, brings convenience to people and drives the development of… Source link

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Can China boost short-term growth while maintaining long-term prospects? Li Keqiang may have the blueprint

Premier Li Keqiang’s government work report, unveiled on the opening day of the National People’s Congress, argued that Beijing would do well to safeguard near-term growth without undermining the long-term sustainability of the economy.The question is: can Beijing achieve this daunting task against a challenging local and global backdrop, and with a smaller policy toolkit to deploy compared with five or 10 years ago?Let’s take a look at what has been proposed for the task. First, the government… Source link

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China’s Li Keqiang presents an economy in distress in NPC speech. Is it just growing pains?

Spare a thought for poor Li Keqiang, premier of the People’s Republic of China, having to present the state of the Chinese economy to the people at the National People’s Congress earlier this week. China’s economy is growing at its slowest rate in almost 30 years. As the boss (well, nearly), reporting on a control and command economy is easy when things are going well – and painful when it’s in reverse.We ought to remember that Li is a highly competent economist, with a PhD in economics and… Source link

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Six key takeaways from China Premier Li Keqiang’s annual policy blueprint

Chinese Premier Li Keqiang delivered his 2019 government work report on Tuesday morning to the National People’s Congress in Beijing, but what does it mean?1. Uncertain outlookThe government is foreseeing “graver and more complex” risks and challenges of a “both predictable and unpredictable” nature, and China must be “prepared to fight tough battles” this year.As such, the government has set the economic growth target in a range of 6.0 to 6.5 per cent, which offers Beijing the necessary leeway… Source link

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