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ECONOMY
Weekly Watch> ECONOMY
UPDATED: November 7, 2014 NO. 46 NOVEMBER 13, 2014
Economy
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TURNING WASTE INTO WEALTH: A worker transports straw in a storehouse of Jiangsu Guoxin Rudong Biomass Power Generation Co. Ltd., which is among the country's first group of straw-burning power generation projects and has been put into commercial operation since July 2008 (CHEN YICHEN)

Moderate PMI

Activity in China's service sector continued to moderate in October, with the purchasing managers' index (PMI) for the non-manufacturing sector sliding to its lowest point since January, official statistics showed on November 3.

The non-manufacturing sector PMI posted at 53.8 percent in October, down 0.2 percentage points from September, according to a report jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP).

The country's official manufacturing PMI also dropped to a five-month low of 50.8 percent in October from 51.1 percent in September, according to data released by the NBS and CFLP on November 1.

However, the readings were still above the 50-percent boom-bust line, which separates expansion from contraction on a monthly basis.

"Although the index pulled back slightly, it is still running smoothly, with some signs of good development demonstrated," said Cai Jin, Vice President of CFLP.

Information Sharing

Chinese courts and banks will establish an information sharing system to punish court order defaulters and facilitate enforcement, the Supreme People's Court (SPC) announced on November 2.

The SPC and the China Banking Regulatory Commission have jointly issued a circular on sharing such information online, and according to the circular, Chinese banks will take measures such as restrictions on loans and issuing credit cards to people who have defaulted on court orders.

The banks will also help the courts in information inquiry, fund freezing and seizing regarding such defaulters' cases, the circular said.

However, the circular also stressed that such measures must be taken with due procedures and fund security being guaranteed.

Reassuring Car Owners

China's quality watchdog demanded joint-venture FAW-Volkswagen submit new materials to verify the effectiveness of a latest recall due to defective rear axles.

On October 17, the company announced a recall of more than 581,000 cars, including its New Sagitar and Beetle vehicles, as the trailing arms of the rear axles could rupture in certain scenarios. It offered to place a metal plate in the trailing arm to ensure the proper operation in case of a rupture.

China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said in a statement on November 1 that its defective product management center has ordered the company to provide further materials for verifying the recall measure's effectiveness.

The AQSIQ also ordered its management center to devote more technological resources to the case and organize assessment of FAW-Volkswagen's recall by inspection bodies and industry experts.

The center asked affected car owners to contact the company's dealers for examination in the case of a trailing arm deformation or a rupture and also to report the problem to the center online, the statement said.

New Air Route

China Eastern Airlines will launch the first route from Shanghai to Nepal's capital Katmandu on December 2, the company said on November 1.

The new daily flight will use a Boeing 737 aircraft, and flights in both directions will be via Kunming, capital city of southwest China's Yunnan Province.

Nepal has been attracting more and more Chinese visitors in recent years with its natural landscape, as well as cultural and religious heritage. Data showed that Chinese people visiting Nepal at their first stop stood at 51,400 in the first half of 2014, up by 22.41 percent from a year ago.

Currently, Air China is operating flights from Chengdu, capital of southwest China's Sichuan Province, to Katmandu, and China Southern Airlines is operating flights from Guangzhou, capital city of south China's Guangdong Province, to the same location.

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