US Dollar Exchange Rates of
12th
Dec
2022
China Yuan 6.96
Report from China
Plan to promote development of home furnishing sector
The report of the 20th National Congress held recently in
Beijing called for building a modern industrial system,
focusing on the entire economy, promoting a new type of
industrialisation and accelerating the building of a strong
manufacturing sector.
An “Action Plan to Promote High-Quality Development of
Home Furnishing Industry” was released by four
ministries, the Ministry of Industry and Information
Technology, the Ministry of Housing and Urban-Rural
Development and the State Administration for Market
Regulation.
Development goals of the action plan
The innovative capacity of the home furnishing industry
will be enhanced by 2025, the supply of high-quality
products will increase significantly and a wider and
stronger cycle of supply and demand will be formed.
Innovation platforms will be established such as
manufacturing innovation centres and digital
transformation promotion centres for the household and
lighting appliances sectors.
The integrated industrialisation and information capacity
for key industries will reach 65% by 2025. A number of
fully connected 5G factories, demonstration facilities for
smart manufacturing will be fostered.
The proportion of personalised and customised in the
household sector will be steadily increased, the supply of
green, smart and healthy products will be increased and
the development of smart home furnishing and other new
forms of businesses will be accelerated.
About 50 well-known brands and 10 home furnishing
environmental brands will be cultivated in the home
furnishing sector. Excellent products will be promoted and
500 smart home furnishing experience centres will be
established. 15 high-level industrial clusters will be
cultivated.
The tasks involved in the action plan are:
-
Consolidation of the industrial base and
enhanced
driving force for development.
-
Accelerated technological breakthroughs and
improved design capabilities.
-
Speed up interconnection and
intercommunication as well as integration
innovation.
-
Promote household products and improve service
quality.
-
Speed up digital and green transformation to
boost quality and improve efficiency.
-
Promote industry digitisation further.
-
promote new patterns and new business models.
-
Pomote green manufacturing.
-
Promote cultivation of excellent and strong
enterprises to enhance industrial competitiveness.
-
Strengthen the roles of enterprise
demonstration.
-
Promote industrial cluster upgrading.
-
Promote the influence of product brands.
-
Expand high-quality supply and improve the
suitability of supply structure to increase the
supply of health, smart and green products.
-
Cultivate intelligent household ecosystems.
-
Increase application and promotion and release
household consumption potential.
-
Implement household product promotion actions.
-
Promote green and intelligent household products
in rural areas.
Real estate sector gradually stabilising
The China Securities Regulatory Commission has recently
adjusted measures for financing housing enterprises and
implemented a plan to improve the balance sheet of major
housing enterprises. These reform measures respond to the
call in the sector and helped to revitalise the real estate
market.
The sector has been faced with multiple challenges since
the beginning of 2022. Data from Wind Information Co.,
Ltd. showed that in the first three quarters of 2022 the total
net profit attributable to the parent company of listed real
estate enterprises decreased by over 290% year on year
and the number of loss-making housing enterprises
increased by nearly 80%.
This shook the financial sector and led the authorities to
determine that “houses are for living but not for
speculative investment”. As a result the government will
implement measures to stabilise the housing market and
restore the financing options for major housing
enterprises.
Furnishing enterprises slow acceptance of orders
Some furniture enterprises have stopped receiving new
orders, especially for solid wood furniture because
delivery times are becoming extended and because the
Spring Holidays will be early next year (January 21).
Logistics are always disrupted during the holiday. 2022
has been a very difficult year for enterprises and has tested
their competitiveness.
Digital technology for the household industry in
Nankang
The first household meta-universe platform in China was
put into trial operation in Nankang District recently. This
is a locally built online exhibition and sales platform for
household product, on which consumers can effect orders
for customised home furnishings.
More than 200 Nankang home furnishing enterprises have
achieved digital transformation and more than 500
enterprises have moved their sales online.
The digital economy has developed significantly and the
business environment has improved in China. In order to
promote the high-quality development of home furnishing
industry, Nankang District launched a special zone of
"One chain for the whole furniture industry" with 55 items
such as project introduction, enterprise establishment and
home furnishing import and export in order to achieve
one-stop management.
Surge in wood panel exports to Japan
Linyi wood panel exports to Japan have been quiet in
recent years. But orders from Japan grew this year creating
business opportunities for wood panel enterprises in Linyi
city of Shandong Province.
In order to make its products conform to Japanese
standards, Linyi wood panel companies modified the
production process and reduced the formaldehyde
emission by using low aldehyde adhesives to meet the
needs of Japanese customers.
In addition, Linyi Customs also utilised the preferential
policies for RCEP (The Regional Comprehensive
Economic Partnership free trade agreement among the
Asia-Pacific nations). Linyi Customs also assisted with
inspection of export goods by means of video connection
to ensure the prompt clearance of exports to Japan.
In the first 11 months of 2022 the value of wood panel
exports to Japan through Linyi Ports was RMB340
million, a year-on-year growth of 62%.
GTI-China Index in November 2022
In November 2022, due to the frequent occurrence of the
COVID-19 pandemic and weak demand market prices
tended to decline and output of the upstream and
downstream industries slowed.
China's PMI registered 48% in November, a decline on the
previous month, marking the second consecutive month
of decline and ranking the second lowest this year
indicating that the economic recovery has further slowed
and the momentum of recovery is obviously insufficient.
The pandemic resulted in disruption of the workforce and
logistics operations both of which affected production of
timber enterprises and low consumer spending.
Enterprise feedback for the Global Timber Index GTIChina
Index shows that problems in raw material
procurement, variable quality of some raw materials and
delays in the delivery of raw materials affected by
transportation were more prominent.
In November, the GTI-China Index registered 45%, down
from the previous month and still below the critical value
(50%) indicating that the business prosperity of the
participating timber enterprises represented by the GTIChina
Index worsened from the previous month.
See:
https://www.ittoggsc.org/static/upload/file/20221209/1670578785177402.pdf
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