Everything You Need to Know About China's Economy on Thursday (July 3)
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HOWDY! This is TIAN, welcoming you to your Thursday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, CHINA, EU HOLD 13TH ROUND OF HIGH-LEVEL STRATEGIC DIALOGUE IN BRUSSELS.
Here are some key take aways from the event:
Chinese Foreign Minister Wang Yi said: Looking back on the extraordinary journey of China-EU relations over the past five decades, their relationship should be characterized as that of partners rather than rivals, with cooperation as the defining feature and ballast.
China and Europe have no fundamental conflicts of interest but rather share extensive common interests. Both sides support multilateralism and open cooperation, uphold the central role of the UN and the democratization of international relations, and are committed to resolving disputes peacefully through dialogue.
Facing growing uncertainty and instability in the international landscape, China and the EU, as two major forces and economies, should enhance exchanges, mutual understanding and mutual trust, and advance cooperation, in a joint effort to safeguard the post-war international order and provide the world with much-needed certainty.
China has consistently supported European integration and the EU's efforts to strengthen its strategic autonomy and play a constructive role in international affairs, he said, expressing hope that the EU will likewise respect China's core interests through concrete actions.
EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said that the EU and China are partners, sharing common responsibilities and having significant influence on major issues such as upholding the central role of the UN and safeguarding international law and international order.
The EU remains committed to the one-China policy and stands ready to work with China to prepare for the upcoming leaders' meeting, Kallas said.
The EU is willing to strengthen mutual understanding through dialogue, build a more constructive EU-China relationship, and pursue more balanced and equitable economic and trade cooperation, Kallas said.
ALSO ON THURSDAY, CHINA TO ISSUE FINAL RULING IN ANTI-DUMPING PROBE INTO EU BRANDY IMPORTS.
China's Ministry of Commerce said Thursday that Chinese authorities will issue a final ruling in the coming days after an extended anti-dumping investigation into brandy imports from the EU.
Answering a media query during a press conference, ministry spokesperson He Yongqian said that the investigation is in accordance with Chinese laws and in line with World Trade Organization rules.
The ministry initiated the investigation on Jan. 5, 2024, following a request from the China Alcoholic Drinks Association on behalf of the domestic industry.
According to a statement released by the ministry in April, the investigation will be extended until July 5, 2025, given the complexity of the case and in accordance with relevant regulations.
Since Oct. 11, 2024, China has imposed temporary anti-dumping measures on brandy originating from the EU. Importers of brandy originating from the EU must place deposits with Chinese customs based on dumping margins of between 30.6 percent and 39 percent.
MEANWHILE, FIRST BRAZIL-MADE BYD CAR ROLLS OFF ASSEMBLY LINE.
Chinese NEV manufacturer BYD has rolled out its first Brazil-made passenger vehicle from its factory in Bahia state, China Daily reported.
With a total investment of 5.5 billion reais ($1 billion), BYD's production base in Brazil manufactures pure electric and plug-in hybrid models, with a planned annual capacity of 150,000 vehicles.
The factory, located in the coastal city of Camacari, benefits from a well-established auto supply chain and mature port logistics infrastructure. It is expected to create 20,000 job opportunities.
Since BYD introduced its passenger NEVs to the Brazilian market in 2021, the company has sold 130,000 units cumulatively in the country.
In the first quarter of 2025, sales in Brazil exceeded 20,000 units, which put it in the top spot of local NEV sales. In May, BYD jumped to the fourth place in the Brazilian auto brand retail sales ranking, securing a 9.7 percent market share.
IN TODAY'S FINANCIAL MARKET,
Chinese stocks closed higher on Thursday, with the benchmark Shanghai Composite Index up 0.18 percent to 3,461.15 points.
The Shenzhen Component Index closed 1.17 percent higher at 10,534.58 points.
The combined turnover of these two indices stood at 1.31 trillion yuan (about 183.16 billion U.S. dollars), down from 1.38 trillion yuan on the previous trading day.
Shares in the bio-medicine, printing and packaging sectors led the gains, while those in the papermaking and oil industries suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.9 percent to close at 2,164.09 points Thursday.
Hong Kong stock closed lower
Hong Kong stock market ended lower Thursday with the benchmark Hang Seng Index down 0.63 percent to close at 24,069.94 points.
The Hang Seng China Enterprises Index fell 0.88 percent to end at 8,648.44 points, and the Hang Seng Tech Index slid 0.67 percent to end at 5,233.71 points.
Chinese yuan strengthens to 7.1523 against USD Thursday
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 23 pips to 7.1523 against the U.S. dollar Thursday, according to the China Foreign Exchange Trade System.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
China's benchmark interbank gold prices mixed Thursday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 771.33 yuan per gram, up 3.40 yuan from the previous trading day.
The price for gold that is 99.99 percent pure or above was 770.70 yuan per gram, down 2.18 yuan from the previous trading day.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
No.1 soybean futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active No.1 soybean contract for September 2025 delivery gained 4 yuan (about 56 U.S. cents) to close at 4,141 yuan per tonne.
On Thursday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 113,098 lots, with a turnover of about 4.68 billion yuan.
Iron ore futures closed higher on Thursday in daytime trading at the Dalian Commodity Exchange.
The most active iron ore contract for September 2025 delivery gained 17.5 yuan (about 2.45 U.S. dollars) to close at 733 yuan per tonne.
On Thursday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 578,011 lots, with a turnover of about 41.85 billion yuan.
Cotton futures closed flat Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active cotton contract for September 2025 delivery closed at 13,785 yuan (about 1,927.35 U.S. dollars) per tonne.
On Thursday, the total trading volume for six listed cotton futures contracts on the ZCE was 190,963 lots with a turnover of 13.16 billion yuan.
Sugar futures closed higher Thursday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 32 yuan (4.47 U.S. dollars) to close at 5,767 yuan per tonne.
On Thursday, the total trading volume for six listed sugar futures contracts on the ZCE was 189,133 lots with a turnover of 10.84 billion yuan.
About the Newsletter:
Ran by TIAN Dongdong, this newsletter features daily and trustworthy content on China's economy. Having worked in Brussels, London, Cairo, and Tripoli for Chinese media as correspondent for several years, TIAN is now based in Beijing.