Cambodia and the Chinese economy now

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Cambodia values ​​corona more than tariffs. Meanwhile, China is not only complying with the implementation of the first phase of trade negotiations with the United States, but also as Corona 19 is accelerating China's digital economy transformation, the Chinese digital ecosystem is rapidly rising. And lower the rate cap.

• Continued implementation of the US-China trade agreement

The chairman of the National Economic Committee of the US Kerdlow believes that the implementation of the trade agreement agreement with China will continue. He expresses that the progress of both countries has been good so far and that he is satisfied with China's imports of US goods. However, it will be unannounced when an additional agreement on US-China trade negotiations will be implemented in the future. In addition, the specific schedule for verification of the contents of the US-China Phase 1 trade agreement has yet to be determined, but it is expressed that it plans to hold it soon.

• Corona is more important than tariff

In connection with the recent suspension of some of the tariff preferential measures applied to Cambodia by the European Union (EU), the EU's economic sanctions were expected and could be responded to. It is more important than this. In addition, the EU (Europe Union) did not apply tariffs on all imported goods other than weapons applied to Cambodia on August 12th.

Part of the Hyeje Island Agreement will be suspended. The target is part of medical supplies and travel goods, and the amount is estimated to be 1 billion euros (126 billion yen = 1.4 trillion won), which is about 20% of Cambodia's total exports to the EU. The European Union talks about the serious human rights violations in Cambodia as a reason for the suspension of the preferential treatment agreement, but the Cambodian government cannot sacrifice sovereignty and independence because of the EU. Cambo according to this

The Dia government (Ministry of Finance and Economy) has been preparing for EU economic sanctions since last year, and has already budgeted about 1.1 billion dollars (117.5 billion yen = 1.3 trillion won) for EU economic sanctions and new Corona 19 countermeasures. . In addition, it is also pursuing concrete measures to compensate for the decline in exports from the European Union, such as promoting diversification of export destinations through the conclusion of the Free Trade Accord (FTA) with Japan, China, and Korea.

• The Chinese economy's digital transformation

There is an analysis that the spread of Corona 19 may open up new opportunities as the digital transformation of the Chinese economy accelerates. According to a domestic KOTRA report, after Corona 19, non-face-to-face and unmanned services have become commonplace in China, and demand for the platform has increased, and digital transformation has progressed rapidly. The Chinese government is pushing for quarantine and resumption of operations.

As an opportunity, we will promote the digital economy entirely, including stimulating the economy. In addition, both the government and companies are actively investing in infrastructure, the backbone of the digital economy. The Chinese government is making large-scale investments by designating fields such as 5G, artificial intelligence (AI), big data, cloud computing, and industrial Internet as new infrastructure (New SOC). Private sector

Moon Enterprise not only invests, but also establishes a digital industry ecosystem through collaboration between companies and startups. In particular, the industries where digitalization is promoted are all industries such as service, manufacturing, and agriculture. In the service sectors such as wholesale, retail, catering, lodging, logistics, education, and culture, a new type of business that combines information and communication (ICT) technology is emerging. Manufacturing sector also industry

The transition trend is fast, such as introducing smart factories using the Internet, robots, smart grids, and autonomous driving technologies. Consumption is also changing digitally. The characteristics of digital consumption in China include diversification of online consumption platforms, expansion of online/offline connection (O2O) consumption, and digital consumption settling such as digital consumption coupons.

• Lower the Chinese interest rate cap, etc.

The Supreme People's Court of China cuts the upper limit on private loan interest rates. This will crack down on high-interest loans and induce cost declines for small businesses in need. Based on the fact that the Supreme People's Court stated that the upper limit of the preferential loan interest rate is limited to four times, the upper limit of the private loan interest rate for one year is 15.4%. The People's Bank of China decided to maintain the same level as before for 4 consecutive months, the preferential loan rate (LPR), the bank's loan interest rate indicator.

Therefore, the LPR of 1-year water and 5-year water is 3.85% and 4.65%, respectively. And on August 21, it will supply 200 billion yuan (34 trillion won) of liquidity to the market through open market manipulation. In addition, as a central bank, the People's Bank is a central bank that releases and supplies 150 billion yuan and 50 billion yuan of funds, respectively, through 7-day and 14-day reverse RP (repurchase conditional bonds), which are short-term liquidity control measures. Reverse RP bid rates are set at 2.20% and 2.35%, respectively.

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