December 27th Macroeconomic Index: China's Domestic Production and Market Integration Advances, International Energy Projects and Policies in Flux

   Daily Macro Economy News

Latest Global Major Index

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

Domestic News

1. Wuxi Baichuan Chemical Industry Co., Ltd.: The total production capacity of ocean-based new energy is 4GWh, and the previous production capacity is 2GWh

2. Ministry of Agriculture and Rural Affairs: Optimize and improve the "Implementation Plan for the Regulation and Control of Pig Production Capacity" to promote the stabilization of pig production capacity at a reasonable level

3. National Development and Reform Commission: The implementation plan for the reform of the financial system of some provinces has been issued

4. National Development and Reform Commission: Encourage Beijing-Tianjin-Hebei and the Yangtze River Delta to take the lead in the construction of regional market integration

International News

1. The two Russian giants will cooperate on oil and gas projects

2. Brazil's Minister of Environment: Brazil needs to limit oil production and exploration, and increase the development of renewable energy

3. The leaders of the Eurasian Economic Union countries signed a declaration on economic development

4. Indian media: India's plan to use the rupee to buy crude oil has been frustrated, and its trading partners have refused to accept payment in rupees

Domestic News

1. Wuxi Baichuan Chemical Industry Co., Ltd.: The total production capacity of ocean-based new energy is 4GWh, and the previous production capacity is 2GWh

Wuxi Baichuan Chemical Industry Co., Ltd. said on the interactive platform that the total production capacity of ocean-based new energy is 4GWh, and the previous production capacity was 2GWh. In addition, there is a 2GWh large battery cell production line, which has not yet been officially put into production, but the production line has been opened, and there are formal products off the production line, and the production capacity is increasing, which can be compatible with the production of large-size battery cells such as 280Ah and 314Ah.

2. Ministry of Agriculture and Rural Affairs: Optimize and improve the "Implementation Plan for the Regulation and Control of Pig Production Capacity" to promote the stabilization of pig production capacity at a reasonable level

Pig production has developed steadily throughout this year, and the pork market is well supplied. In the first three quarters, pork production increased by 3.9% year-on-year. The price of live pigs rises and falls more flatly, and the monthly price difference of live pigs is expected to narrow to about 3 yuan per kilogram throughout the year, far lower than the monthly price difference of 13.9 yuan per kilogram last year. It is estimated that the proportion of large-scale pig breeding will reach about 68%, an increase of about 3 percentage points over the previous year, and the production efficiency and industrial quality of pigs will be steadily improved. In the next step, the Ministry of Agriculture and Rural Affairs will adhere to the "two-pronged approach" of production regulation and market regulation, optimize and improve the "Implementation Plan for Pig Production Capacity Regulation", accurately carry out production early warning guidance, and promote the stabilization of pig production capacity at a reasonable level. Stabilize and improve long-term support policies, enhance the competitiveness of the whole industry chain, and further consolidate the foundation of pig production and market supply.

3. National Development and Reform Commission: The implementation plan for the reform of the financial system of some provinces has been issued

Li Chunlin, deputy director of the National Development and Reform Commission, said at the regular policy briefing of the State Council that the reform of key areas has been strengthened and positive progress has been made. In terms of the fiscal and taxation system, the implementation plans for the reform of the financial system in some provinces have been issued and implemented, and the establishment and improvement of the fiscal system below the provincial level with a more reasonable allocation of powers and responsibilities have been promoted. In terms of the statistical system, we will deepen the statistical reform of industrial activity units as legal persons, and promote the local statistics of non-local branches in the fields of automobiles, petroleum, and store retail. In terms of optimizing the industrial layout, the 2023 China industrial transfer and development docking event will be held, and the special action for the development of advanced manufacturing clusters will be implemented. In terms of regional integration, Beijing-Tianjin-Hebei, Chengdu-Chongqing and other regions have issued implementation plans for the integration of regional markets.

4. National Development and Reform Commission: Encourage Beijing-Tianjin-Hebei and the Yangtze River Delta to take the lead in the construction of regional market integration

Li Chunlin, deputy director of the National Development and Reform Commission, said at the press conference that the efforts to explore the first and first trials should be intensified. Combined with the implementation of major regional strategies and regional coordinated development strategies, encourage Beijing-Tianjin-Hebei and the Yangtze River Delta to take the lead in the construction of regional market integration, actively explore and innovate in improving market system rules, improving market infrastructure, sharing logistics development results, and strengthening cross-regional market supervision and cooperation, so as to provide the whole country with experience that can be replicated and promoted, that is, in the process of building a unified national market, it is necessary to dismantle the fence and change the soil, then we can obtain good experience and good practices, which should be tried in these places and then popularized throughout the country.

International News

1. The two Russian giants will cooperate on oil and gas projects

Russian mining giant Norilsk Nickel and multinational energy conglomerate Lukoil are building a large-scale oil and gas project, the Russian newspaper Kommersant reported. The report, citing people familiar with the matter, reported that the project's resource foundation is about 300 billion cubic meters of natural gas and 70 million tons of oil. The newspaper added that the project already includes five sites in Krasnoyarsk and Yamalo-Nenets in the Siberian region.

2. Brazil's Minister of Environment: Brazil needs to limit oil production and exploration, and increase the development of renewable energy

Brazil's environment minister, Silva, said that the country must consider restricting oil production and exploration, meaning she opposed the government's plan to turn the country into one of the largest crude oil producers by 2029. Silva stated that one issue that must be faced is the cap on limiting oil exploration. This is not an easy debate, but one that oil-producing countries will have to face. Her statement reflects the tension the Brazilian president facing in striking a balance between the two sides on climate debate: on the one hand, there is the need to boost Brazil's environmental credibility in protecting the Amazon's vital ecology; And on the other hand, the point is that oil drilling is for economic gain. She said we are committed to our goal of tripling renewable energy. But none of this can be achieved if we do not discuss the issue of exploration restrictions.

3. The leaders of the Eurasian Economic Union countries signed a declaration on economic development

On the 25th local time, the Supreme Council of the Eurasian Economic Commission, the highest authority of the Eurasian Economic Union, held a meeting in St. Petersburg. The parties discussed the achievements of cooperation in the Eurasian Economic Union in the past few years and the prospects for future cooperation, and signed a number of documents such as the Declaration on Economic Development, pointing out the direction for further deepening cooperation. Russian President Vladimir Putin said at the meeting that in the nearly 10 years since the establishment of the Eurasian Economic Union, trade between member countries has almost doubled, and the total GDP of each country has increased from $1.6 trillion to $2.5 trillion.

4. Indian media: India's plan to use the rupee to buy crude oil has been frustrated, and its trading partners have refused to accept payment in rupees

According to a report on the website of India's "Economic Times" on the 25th, India's Ministry of Petroleum told the Standing Committee of Parliament that India's plan to promote the use of rupees to buy imported crude oil has been frustrated because oil exporters still refuse to accept rupee payments. Global oil suppliers are still refusing to accept payments in rupee, on the ground that there is a possibility of foreign exchange risk due to higher transaction costs and limited global acceptance of the Indian rupee, the report said. According to India's Ministry of Oil, during India's fiscal year 2022-2023, not a single import oil transaction was settled in rupees. In addition, Indian oil importers have so far not reached any agreement with any supplier to buy crude oil in rupees.

                                                                             Domestic Macro Economy Index