March 13 Macroeconomic Index:China's SME Development Index rises with policy support, US steel and aluminum tariffs trigger international countermeasures

Latest Global Major Index

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

Domestic News

1. China's SME Development Index rose sharply in February, and a number of indices rose across the board

2. ICBC launched an 80 billion yuan science and technology innovation fund to support the private economy with patient capital

3. The Ministry of Industry and Information Technology and other two departments: strive to make up for the "short board" of the technology and equipment industry chain in key areas by 2027

4. Economic Daily Opinion Commentary: We have the confidence and ability to achieve a growth of about 5%.

5. The China Chamber of Commerce for Import and Export of Textiles calls on large U.S. retailers to solve international trade issues fairly and reasonably

 International News

1. The EU has taken countermeasures against US steel and aluminum tariffs

2. US CPI flash review in February

3. U.S. officials stated that Japan imposes a 700% tariff on its rice; Japan: That is not accurate

4. British scholar: Under the threat of US tariffs, a new voice has emerged in Europe's relations with China

5. The 25% steel and aluminum tariffs by the United States came into effect, and the Korean duty-free quota was cancelled

Domestic News

1. China's SME Development Index rose sharply in February, and a number of indices rose across the board

According to data released by the China Association of Small and Medium-sized Enterprises today, the SME development index was 89.8 in February, up 0.8 points from January. Among them, sub-indexes, sub-industry indices and sub-regional indices rose across the board. And the high operating rate of enterprises has risen. In February, 52.5% of the enterprises fully started production, up 7.2 percentage points from the previous month; 11.8 percent had an operating rate between 75% and 100%, down 0.1 percentage point from the previous month; 14.9% had an operating rate between 50% and 75%, down 0.6 percentage points from the previous month; 11.1% had an operating rate of less than 50%, down 4.5 percentage points from the previous month; and 9.8% had not started production, down 2.0 percentage points from the previous month.

2. ICBC launched an 80 billion yuan science and technology innovation fund to support the private economy with patient capital

The Industrial and Commercial Bank of China (ICBC) and the All-China Federation of Industry and Commerce (ACFEDERATION) jointly held the "Financial Assistance to Enterprises, New Quality Improvement" Financial Empowerment of Private Enterprises High-quality Development Promotion Conference in Beijing. The launching ceremony of ICBC Science and Technology Innovation Fund was held at the meeting. With a total scale of 80 billion yuan, the fund is positioned as patient capital, focusing on stocks, and linking stocks, bonds, loans and insurance, and will continue to increase support for hard technology and the private economy, and inject equity investment into the real economy.

3. The Ministry of Industry and Information Technology and other two departments: strive to make up for the "short board" of the technology and equipment industry chain in key areas by 2027

The Ministry of Industry and Information Technology and other departments issued a number of opinions on promoting the high-quality development of the environmental protection equipment manufacturing industry. By 2027, the market share of advanced technology and equipment will be significantly improved, the standard system will be more sound, the "short board" of the technology and equipment industry chain in key areas will be basically completed, and the "long board" technology and equipment will form an advantageous pattern of domestically led and going out to overseas market, and a relatively complete environmental protection equipment supply system will be built. By 2030, the "short board" of the environmental protection technology and equipment industry chain will be independent and controllable, the advantages of long-board technology and equipment will be further expanded, the scale, product quality and comprehensive benefits of the environmental protection equipment manufacturing industry will be further improved, and a number of leading enterprises with strong industrial innovation ability and comprehensive competitiveness will be cultivated to promote the comprehensive upgrading of the environmental protection equipment manufacturing industry from traditional pollution control to green, low-carbon and circular development.

4. Economic Daily Opinion Commentary: We have the confidence and ability to achieve a growth of about 5%.

The article points out that from the perspective of China's development practice and the experience of other countries, whether the development goals can be achieved depends on the development trend, the ability and conditions, and the supporting policies. The growth target of about 5% takes into account both needs and possibilities, conforms to the trend of economic operation, conforms to the law of economic development, basically matches China's economic growth potential, can be supported by resource factors, and also has room for macroeconomic regulation and control policies. We are confident and capable to achieve the goal.

5. The China Chamber of Commerce for Import and Export of Textiles calls on large U.S. retailers to solve international trade issues fairly and reasonably

Recently, the China Chamber of Commerce for Import and Export of Textiles has received news from some members that large American retailers is asking Chinese suppliers to reduce prices, and is further verifying the situation. If the situation is true, the China Chamber of Commerce for Import and Export of Textiles will take active measures to safeguard the legitimate interests of its member enterprises. It has been noted that the Ministry of Commerce and other departments have recently interviewed Wal-Mart to learn about the situation. At present, all kinds of problems in international trade are caused by the unilateral tariffs imposed by the US government, and both Chinese and American companies are victims. It is hoped that the enterprises of the two countries can resolve issues of common concern through friendly consultation, equality and mutual benefit, work together to deal with the current difficulties, and avoid unilaterally using their dominant market position to interfere with the stability of the supply chain.

International News

1. The EU has taken countermeasures against US steel and aluminum tariffs

On March 12, the European Commission announced countermeasures against US steel and aluminum tariffs. According to the European Commission, the countermeasures are divided into two steps: the resumption of countermeasures against the United States in 2018 and 2020 will be resumed from April 1; In mid-April, a package of new countermeasures against U.S. exports will be introduced. The European Commission said the countermeasures would apply to up to 26 billion euros worth of U.S. goods, matching the economic scope of the U.S. tariffs. The European Commission said it stands ready to work with the U.S. government to find a negotiated solution. These measures can be reversed at any time once a solution has been found. On the same day, U.S. President Donald Trump's 25% tariff on all steel and aluminum export to the U.S. came into effect.

2. US CPI flash review in February

The US CPI in February increased by 2.8% year-on-year, the lowest growth rate since November last year, and lower than the expected value of 2.9% and the previous value of 3%; The core CPI in the United States increased by 3.1% year-on-year in February, the lowest growth rate since April 2021, and lower than the expected value of 3.2% and the previous value of 3.3%. The data showed that the CPI growth rate in the United States slowed in February, which may be a relief. " The weaker-than-expected CPI data on Wednesday is a bit of a relief to the Fed and the market, as it shows that inflation is moving in the right direction and is ready for a possible pickup in inflation triggered by tariffs," said Skyler Weinand of Regan Capital.

3. U.S. officials stated that Japan imposes a 700% tariff on its rice; Japan: That is not accurate

In response to the US White House spokesman's statement that "Japan imposes a 700% tariff on imported rice", Japanese Chief Cabinet Secretary Yoshimasa Hayashi said at a press conference on the same day that the "minimum import amount" of Japan's imports through national trade was zero tariff, and the tariff on imported rice was 341 yen per kilogram. He said that he would further communicate with the US side on this matter.

It is reported that Japan exempts about 770,000 tons of imported rice from tariffs as a "minimum import amount" every year. "Nihon Keizai Shimbun" published an article on the 12th, saying that the White House spokesman did not take into account the situation of zero tariff when listing Japanese rice tariffs, and the tariff rate was also expressed according to the old data standard 10 years ago. On the 11th local time, White House press secretary said that the United States has a comprehensive chart showing the tariff rates imposed by various countries on the United States, for example, India imposes a 150% tariff on American wine, and Japan imposes a 700% tariff on American rice. "What President Trump is ultimately asking for is just fair and balanced trade practices," she said.

4. British scholar: Under the threat of US tariffs, a new voice has emerged in Europe's relations with China

On March 11, Martin, a well-known British scholar and former senior researcher at the University of Cambridge, was interviewed by a reporter from the global information broadcast of the main station. When talking about China-EU relations, Martin said that if we compare that with 20 years ago, the current trade relations between China and Europe and the ties in a wider range of fields have improved greatly, and now Europe is a new voice on the issue of relations with China. Martin said that now the EU is facing the threat of tariffs from the United States, and at the same time it is openly at odds with the United States over issues such as American foreign policy and the future of NATO. "The EU prefers to maintain better relations with China in this situation. It would be a good thing if Europe could build a more satisfying and calm relationship with China. ”

5. The 25% steel and aluminum tariffs by the United States came into effect, and the Korean duty-free quota was cancelled

The United States imposed a 25% tariff on imported steel and aluminum, which came into effect on the 12th. As a result, South Korea's duty-free quota of 2.63 million tons per year for steel exports to the United States has been abolished. According to the executive order signed by U.S. President Trump on the 10th of last month, the United States would impose a 25% tariff on imported steel and aluminum from 0:01 on the 12th Eastern Time, and in principle, cancel all the exceptions and tariff exemptions previously agreed and applied with other countries. According to the agreement reached between South Korea and the United States in 2018, South Korea can enjoy a duty-free quota of 2.63 million tons of steel exported to the United States every year, but this arrangement has also been canceled this time.

Domestic Macro Economy Index