Briefs

Insurance Boom Chinas insurance sector will continue to improve to meet the demand from the swelling middle class and an aging population， the top insurance regulator said at a forum in Shanghai on June 12. The industry saw its best performance in 2015 since the global financial crisis， with premium income reaching 2.4 trillion yuan （$366 billion）， said Xiang Junbo， Chairman of China Insurance Regulatory Commission. Profits rose to 282.4 billion yuan （$43 billion） on top of 12.4 trillion yuan （$1.9 trillion） assets for the entire insurance sector last year， Xiang said.

More Development Zones China will accelerate building two more national-level development zones to encourage innovation and foster new engines for growth. The government has approved the establishment of two national innovation demonstration zones in Fujian and Anhui provinces， according to a statement released after the Executive Meeting of the State Council， Chinas cabinet， chaired by Premier Li Keqiang on June 8. The decision came after similar zones， including Beijings Zhongguancun， and Shanghais Zhangjiang Hi-Tech Park， played a pioneering role. Those models need to be replicated across the country， the statement said. The government vowed to cut red tape and provide better services to the development zones， making them serve the national economic rebalancing drive better.

Boosting Private Investment China will strengthen policy support to address an unexpected slowdown in private investment growth. Laws will be improved， government services enhanced and a sound business environment built to encourage private investors， said an official report after a month-long survey of hundreds of private firms nationwide. Fixed-asset investment by private companies grew by only 5.2 percent year on year during the January-April period， almost half of the 10.1-percent growth last year， triggering concerns on the private sector. The investigation found private investment has been mainly hindered by shrinking market demand， overcapacity， ineffective policy implementation， and high financing and labor costs. The govern- ment has promised targeted measures to fix the problems. Chinas private sector contributes 60 percent of the GDP， 80 percent of jobs， over half of tax revenue and 46 percent of exports.

Border Trade Boom Trade has been booming along the Chinese border with Viet Nam after intense government support to improve customs clearing processes， officials said during the ChinaSouth Asia Expo in Kunming， capital of southwest Chinas Yunnan Province. In 2015， Yunnan registered 10.5 billion yuan （$1.6 billion） in trade with its border neighbors， up by 32.9 percent year on year. More than 4.7 million tons of fruit， seafood， cement， floor tiles and other commodities were traded， said Yang Ming， Deputy Director of Clearance at Kunming Customs.“More than 87 percent of the customs clearance is done through our electronic system without the need to file any paper documents， which has really boosted efficiency，” he said. Faster， smoother and more convenient trade has also resulted in a boom in logistics and transport companies in Yunnan.

Tackling Zombie Firms China will regulate dormant firms to ensure they either restart operation or file for liquidation， according to an official statement released on June 13. Dormant companies that have failed to submit annual operation reports or tax declarations for at least two consecutive years must do so or they will have their business licenses revoked， according to the statement jointly released by the State Administration for Industry and Commerce and the State Administration of Taxation. The move will force nonperforming “zombie enterprises，” which waste resources， to shut down as they distort the general economic picture， the statement said. The two government agencies will first warn dormant firms before taking any measures. The reduc- tion of overcapacity in sectors such as steel and coal is high on Chinas reform agenda this year and plans have been announced to shut down non-performing plants and re-employ laid-off workers.

Space Economy After six decades of aerospace development， it is time for China to embrace the new era of space economy. During the First China Space Economic Forum in Beijing on June 16， Tian Yulong， Chief Engineer of the State Administration of Science， Technology and Industry for National Defense， noted that many of Chinas space technology and infrastructure achievements were ready for commercial development. Currently， more than 2，000 kinds of aerospace technology are being used in various industries in China， and 880 kinds of new materials have been developed based on aerospace technology in recent years. Yu said satellite applications should be central to space economic development. The country must strengthen its commercial use of domestic remote sensing satellites and provide better service to the public.