system hasn’t turned around yet. This is why private enterprises are facing difficulty in financing recently.
Small- and medium-sized enterprises have been squeezed out of the formal financing market, pushing up interest rates on informal financing.
Interest rate liberalization is crucial for the financial system to support the private eco
nomy, which will increase interest rates on formal financing and lower rates on informal financing.
It is necessary to regulate the informal financial sector, but not eliminate it. Shadow b
anking and fintech sectors do pose certain risks, but they are the meaningful products of financial liberalization.
Wang Yiming, deputy director of the Development Research Center of the State Council
We are still a developing country, with capital stock and per capita stock much lower than
in developed countries. So there is nothing wrong with stabilizing investment, which should be not seen as a sin.
According to the latest data released by the State Administration of Foreign Exchange, China’s tourism trade deficit reached $237.4 billion in 2018, an increase of $21.4 billion over the prev
ious year. While the record high figure reflects the growing scale of outbound tourism consumption by domestic residents, it remains qu
estionable whether the domestic demand is so strong that it even caused the record outbound tourism consumption.
However, by analyzing relevant reports and statistics, I believe some of the figures about China’s tourism industry may
be dodgy, which could therefore be misleading for investment decision-making and should be clarified.
According to the preliminary statistics of the China Tourism Academy, Chinese travelers made 140 million outbound trips in 2018, up 1
1 million from 129 million in 2017. To a certain extent, the steady increase in the number of Chinese o
utbound trips indicates that the consumption is still growing and not falling.
But the important question is how many people actually traveled abroad
out of the 140 million outbound trips. According to the Annual Report of China Outbound Tou
rism Development 2018, Chinese trips to foreign countries and regions accounted for about 33.3 percent of total out
bound trips in 2017. Assuming that the ratio remained unchanged in 2018, then the number of trips to foreign c
ountries and regions came to about 46.67 million. Again assuming that half of the people who went abroad on av
erage twice last year, then the number of Chinese who went to foreign countries and regions was approximately 31 million.
bilateral ties were upgraded to an all-weather strategic partnership.
“We wish that our relationship could be closer and the bond of friendship will be further strengthened in the future,” the admiral said.
Abbasi also noted that the Indian Ocean is vital for the global economy. Thr
eats to this region cannot be tackled by any navy alone. The Chinese navy’s mission to en
sure maritime security in the Indian Ocean has provided a lot of security to shipping in the region, he said.
Shao Shuguang, commander of the Task Group 998, said during meeting w
ith Abbasi that “Karachi’s long history and culture, the hospitality of the Pakistani pe
ople, especially the professionalism of our counterparts in your navy, have left a deep impression on me.”
“I hope that the navies of our two countries will have further close exchang
es and cooperation to jointly maintain maritime security and stability in the Indian Ocean,” Shao said.
During the visit to Kunlunshan, the admiral also reviewed the PLA Navy’s guard of honor.