December 25 Macroeconomic Index:Domestic policies are advanced in many aspects, and international energy and population challenges coexist - News overview at the end of 2024

Latest Global Major Index

International Crude Price Trend & Exchange Rate of RMB to USD Trend

Domestic News

1. Ministry of Finance: Promote zero-based budget reform and comprehensively deepen the reform of the fiscal and taxation system

2. The 2025 National Transportation Work Conference was held

3. Ministry of Finance: Prevent and resolve risks in key areas, promote the implementation of a package of debt plans, and promote the real estate market to stop falling and stabilize

4. The Party Committee of the General Administration of Customs held an enlarged meeting

5. The Ministry of Industry and Information Technology further strengthens the management of the comprehensive utilization of waste power batteries for new energy vehicles

 International News

1. We are witnessing rapid depletion of EU gas reserves, recording the fastest from the energy crisis three years ago

2. The UK government is seeking views on phasing out petrol and diesel vehicles and relaxing sales quotas for electric vehicles

3. Germany's fertility rate has fallen below 1.4 and faced severe demographic challenges

4. The United States launched a 301 Investigation on the relevant policies of China's chip industry, and the Ministry of Commerce responded that there is a mistake causing disrupt and distortion to the global chip industry chain and supply chain

5. The UK launches EV sales target assessment

Domestic News

1. Ministry of Finance: Promote zero-based budget reform and comprehensively deepen the reform of the fiscal and taxation system

The National Financial Work Conference was held in Beijing. The meeting required that we should vigorously promote the scientific management of finance, promote the reform of zero-based budgeting, comprehensively deepen the reform of the fiscal and taxation system, effectively prevent and resolve the debt risk of local government, resolutely adhere to the bottom line of the "three guarantees" at the grassroots level, increase financial and accounting supervision, improve the efficiency of financial governance, and better serve and protect the governance of the Party Central Committee and the management of finance.

2. The 2025 National Transportation Work Conference was held

The 2025 National Transportation Work Conference was held at the Party School of the Ministry of Transport to summarize the transportation work in 2024, analyze the situation, and deploy the key work in 2025. The meeting emphasized that to do a good job in transportation in 2025, it was necessary to closely follow the strategic goal of building a strong transportation country, achieve "five must be coordinated", pay more attention to stable and effective investment, reduce costs and improve quality and efficiency, comprehensively deepen reform, develop new quality productivity, ensure safety and stability, firmly grasp the major tasks related to the overall situation, and solidly promote the implementation of the tasks of the Central Economic Work Conference in combination with the actual situation of the industry. The first was to speed up the improvement of the national comprehensive three-dimensional transportation network. The second was to further promote transportation and logistics to reduce costs and improve quality and efficiency. The third was to further deepen the reform of transportation in an all-round way. Fourth, developing and expanding new quality productive forces in the field of transportation. Fifth, improving the ability to provide services for major national strategies. Sixth, we would make every effort to do a good job in the safety and stability of transportation. Seventh, deepening the opening up and cooperation of transportation. Eighth, doing a solid job in the conclusion of the "14th Five-Year Plan" and the preparation of the "15th Five-Year Plan". Ninth, strengthening the party's overall leadership and party building.

3. Ministry of Finance: Prevent and resolve risks in key areas, promote the implementation of a package of debt plans, and promote the real estate market to stop falling and stabilize

The National Financial Work Conference was held in Beijing, and Lan Foan, Secretary of the Party Leadership Group and Minister of the Ministry of Finance, made a work report. The meeting emphasized the need to implement a more active fiscal policy, strengthen the overall planning of financial resources and budget, deepen the reform of the fiscal and taxation system, strengthen the scientific management of finance, prevent and resolve risks, make strict financial discipline, improve the efficiency of the use of funds and policy efficiency, promote the sustained recovery of the economy, and provide a strong guarantee for the completion of the "14th Five-Year Plan" goals and tasks and the realization of the "15th Five-Year Plan" good start.

4. The Party Committee of the General Administration of Customs held an enlarged meeting

On 23 December, the Party Committee of the General Administration of Customs held an enlarged meeting, at which Wang Lingjun, Member of the Party Committee and Deputy Director of the General Administration of Customs, presided over the meeting and delivered a speech, calling for continuous deepening of the innovation of the customs supervision system, high-quality services for the construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and support Macao's better integration into the overall development of the country.

5. The Ministry of Industry and Information Technology further strengthens the management of the comprehensive utilization of waste power batteries for new energy vehicles

The Ministry of Industry and Information Technology issued the "Industry Standard Conditions for the Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles (2024 Edition)". It was mentioned that it will actively carry out the research and development and application of recycling technologies, equipment and processes such as positive and negative electrode materials, separators, and electrolytes, strive to improve the level of recycling of waste power batteries, and ensure that major metals are effectively extracted and recycled through smelting or material repair. Among them, the recovery rate of electrode powder after crushing and separation is not less than 98%, the impurity aluminum content is less than 1.5%, and the impurity copper content is less than 1.5%; The recovery rate of lithium in the smelting process shall not be less than 90%, the recovery rate of nickel, cobalt and manganese shall not be less than 98%, and the comprehensive energy consumption per unit product of lithium carbonate production shall be less than 2200 kg of standard coal/ton; If the material repair process is adopted, the proportion of the sum of the mass of the recycled materials to the sum of the mass of the target materials contained in the original power battery shall not be less than 99%. The recycling rate of process wastewater should reach more than 90%.

International News

1. We are witnessing rapid depletion of EU gas reserves, recording the fastest from the energy crisis three years ago

According to the Financial Times, the European Union is depleting gas from its gas storage facilities at the fastest pace since the energy crisis three years ago, as demand rises due to colder weather and the continent is facing a decline in seaborne imports. Gas storage in the EU has fallen by about 19% from the end of the replenishment season in late September to mid-December, according to data from gas infrastructure Europe, an industry body. In the same period over the past two years, natural gas reserves have fallen by only single digits. At that time, the temperature was higher than normal, so that gas storage remained relatively abundant for a long time during the winter heating season, and demand was suppressed by rising prices in various industries. Currently, the EU's gas storage level is 75%, slightly higher than the average for the 10 years before Western European governments began working to reduce their dependence on Russian imports. In mid-December last year, gas storage levels were close to 90%.

2. The UK government is seeking views on phasing out petrol and diesel vehicles and relaxing sales quotas for electric vehicles

According to foreign media reports, the British government has given automakers eight weeks to submit their opinions on phasing out new petrol and diesel vehicles, as Ministers are considering relaxing sales quotas that are difficult for electric vehicle manufacturers to fulfill. The UK's Department for Transport has pledged to stop selling internal combustion engine vehicles by 2030, but is now asking the automotive industry if its plans to achieve this are viable. The consultation comes against the backdrop of fierce criticism from the automotive industry of the UK government's zero-emission vehicle sales quotas. The quotas, introduced by the government of Conservative Prime Minister Rishi Sunak, stipulate that manufacturers who fail to meet the standards will face fines. Despite significant price cuts, manufacturers are still struggling to meet their quotas. From January and November this year, electric vehicles accounted for only 18.7% of the UK car market. According to the Energy and Climate Intelligence Unit think tank, the automotive industry was able to reach its target this year only because the points earned for the sale of hybrid vehicles are taken into account in the EV sales task.

3. Germany's fertility rate has fallen below 1.4 and faced severe demographic challenges

Three EU member states have joined the list of "ultra-low" fertility countries, including Germany, the most populous, highlighting the magnitude of the region's demographic challenges. Official statistics show that Germany's birth rate fell to 1.35 children per woman in 2023, below the "ultra-low" threshold of 1.4 set by the United Nations, indicating that the decline in fertility has become a difficult situation to reverse. Estonia and Austria also fell below the 1.4 threshold, joining the list of nine EU countries with fertility rates below 1.4 in 2022, including Spain, Greece and Italy.

4. The United States launched a 301 Investigation on the relevant policies of China's chip industry, and the Ministry of Commerce responded that there is a mistake causing disrupt and distortion to the global chip industry chain and supply chain

On December 23, U.S. time, the Office of the U.S. Trade Representative announced the launch of a Section 301 investigation into China's chip industry-related policies. China strongly deplores this and resolutely opposes it. The U.S. Section 301 investigation has obvious unilateral and protectionist overtones. Previously, the US Section 301 tariffs on China have been ruled by the WTO to violate WTO rules, which has been opposed by many WTO members, and China has made solemn representations to the US side on many occasions. The US has launched a new Section 301 investigation into China's chip industry policies out of its suppression of China and domestic political needs, which will disrupt and distort the global chip industry chain and supply chain, and will also harm the interests of US companies and consumers. China urges the US to respect facts and multilateral rules and immediately stop its erroneous practices. China will closely follow the progress of the investigation and will take all necessary measures to resolutely defend its rights and interests.

5. The UK launches EV sales target assessment

The UK government announced a consultation on its zero-emission vehicle target after automakers complained that current plans could lead to layoffs as demand for electric vehicles stalled. Transport Secretary Heidi Alexander gave the automotive and charging industry eight weeks to present their views on existing EV targets, including how the current planned arrangements are working and where flexibility can be provided. Under current targets, every automaker must have a certain percentage of annual sales of zero-emission vehicles, which will rise from 22% in 2024 to 80% in 2030. Failure to meet the target will result in a fine of £15,000 per vehicle. Electric vehicles accounted for 18% of the UK car market from January and November this year, well below the 22% threshold set by the directive.

Domestic Macro Economy Index