Go Finance Reporting - Property prices in China in December and then rose for the fourth time in a row by 0.3 percent. This price is 6.4 percent higher than the same period of 2009.
China Statistics Bureau yesterday said that housing price increases occurred in 70 big cities in the land of Panda. However, these price increases slowed since last eight months. A wave of Chinese property prices peaked in April last year in which moment it jumped 12.8 percent.
However, housing prices in China remain a concern because the government feared the bubble in the property. One of them by raising the minimum down payment of 30 percent on each transaction. China Statistics Bureau revealed, along the 2010 sale of residential space rose 10.1 percent, or about 1.04 billion square meters throughout 2010.
"The growth of a full year by 0.3 per cent higher than the increase in 11 months," said Bureau of Statistics of China.
This indicates that some buyers had anticipated before the property tax enacted. China Finance Ministry has approved property tax plan in Chonqing, southwestern China. While in Shanghai, known as a national financial center, property taxes likely apply to the first quarter of 2011. Last week, Shanghai Mayor Han Zheng said the court was preparing property tax reform as signaled by the government.
Elsewhere, Xinhua news agency reported yesterday electricity consumption in China last year rose 10 percent as the increased activity of a manufacturing plant that was encouraged to meet global demand. The increase in electricity consumption also indicates strong demand for goods made in the State Panda. Total, based on data of China Electricity Council, electricity consumption in year on year in 2010 rose 14.6 percent to more than 4.2 trillion kilowatt hours (KWH).
For comparison, in 2009 and electricity consumption in China only increased six percent. According to Xinhua, the largest electricity consumption comes from manufacturing and industrial sectors with an increase of 15.4 percent to 3.1 trillion kwh. In fact, at the same time, electricity authorities in China last year announced a reduction in electricity consumption to support energy savings. To simply known, electricity installed capacity in China last year increased by 10.1 percent or a 962 million kilowatts. The investment is down 8.45% to only 705 billion yuan (USD107 billion).
Reject U.S. Pressure
Elsewhere, Chinese President Hu Jintao urged to end cold war with the United States (U.S.) relating to the yuan exchange rate issue. Hu proposed a new form of cooperation and the U.S. refused obstinately insist on letting the yuan strengthen. Lately, the future of the U.S. currency's continued concern by various parties including China.
For that Hu said that the dollar-based international system of currency is the "old products". Hu delivered a statement in an interview with the Wall Street Journal and Washington Post ahead of his visit to Washington this weekend.
"We must abandon the Cold War mentality 'zero sum' and respect for individual choice in the way of development," Hu said.
He also suggested cooperation with the United States especially in the sectors of new energy sources, clean energy, infrastructure construction, aviation and outer space.
Hu also assured that Beijing will improve the laws and regulations for foreign companies in China. He also promised to resolve tensions on the Korean Peninsula, the area became a big concern in Washington and Beijing. Related to the weakness of the yuan exchange rate, a number of people criticize these policies because they only benefit the Chinese manufacturer and is not fair for the international trade.
Harsh criticism also came from the Parliament had slid the U.S. and President Barack Obama because they contribute greatly to the U.S. trade deficit. "Hu made it clear that China intends to move forward in the open market, freeing exchange rates, and restructuring the political system. This could be done with its own speed and little heed to external pressure to reform faster or broader, "says Eswar Prasad, an economist at the Brookings Institution. (GoFinance)
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