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China’s finance minister promises ‘adequate’ fiscal expansion for 2023 – Reuters

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© Reuters. Workers work at a construction site following the outbreak of the coronavirus disease (COVID-19), in Shanghai, China, October 14, 2022. REUTERS/Ali Song

BEIJING (Reuters) – China will promote fiscal expansion in an appropriate manner in 2023 by boosting fiscal spending and investment via local government special bonds to stimulate the economy, Xinhua said on Tuesday, quoting Chinese Finance Minister Liu Kun.

Chinese policymakers have pledged to promote policy adjustments to mitigate the impact on businesses and consumers from an increase in COVID-19 infections after Beijing’s sudden shift in COVID-19 policy.

The world’s second largest economy is also facing a decline in exports due to slowing global growth and an extended downturn in real estate at home, which has also reduced local government revenues from land sales.

Liu said in an interview with Xinhua that the government needs to expand fiscal spending, use local government special bonds to drive investment and increase transfer payments from the central government to poor and less developed regions.

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The finance minister said the government needed to “ensure fiscal sustainability and keep local government debt risks under control”.

Policymakers in 2022 relied on the well-established practice of debt issuance to fund large public works projects in an effort to revive the slowing economy.

Since 2018, Liu said, China has arranged 14.6 trillion yuan ($2.11 trillion) in new domestic government-private bonds to support the economy. This included 4 trillion yuan of such bonds to support the construction of nearly 30,000 projects from January to November of 2022.

Liu pledged that in 2023, China’s outstanding fiscal deficit will not curb people’s livelihood spending. “We will maintain appropriate fiscal spending,” he said, adding that the government will increase funds to support education and ensure funds needed to combat the coronavirus.

The chief financial officer also said that China will standardize the management of local government financing mechanisms (LGFVs) to guard against domestic debt risks.

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LGFVs are usually investment companies that raise money and build infrastructure projects on behalf of local governments.

Liu said that China’s outstanding government debt is less than 60% of GDP so far – less than the global public debt-to-GDP ratio.

($1 = 6.9035 renminbi)

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India’s Toyota unit warns of potential customer data breach by Reuters

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© Reuters. FILE PHOTO: A Toyota logo is seen at a Toyota dealership in Zaventem, Belgium on November 25, 2022. REUTERS/Joanna Geron

(Reuters) – Data breach in Toyota India’s Motor Company (NYSE) said on Sunday that it may have disclosed some personal information of customers.

Toyota India said it has notified Indian authorities of a data breach at Toyota Kirlskar Motor, a joint venture with India’s Kirlskar Group.

TKM said in an emailed statement, without disclosing the scale of the data breach or the number of customers affected.

An unrelated issue with Toyota Motor Corporation’s T-Connect service likely leaked about 296,000 pieces of customer information, it said last October.

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Chinese factories are suffering from the end of the zero covid policy

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Factory activity contracted in China in December, according to a private survey, highlighting the economic costs of the country’s abrupt abandonment of its strict zero Covid regime as it grapples with a nationwide wave of infections.

The Caixin Purchasing Managers’ Index, a special measure of operating conditions in China’s manufacturing sector, showed a reading on Tuesday of 49 for December, its lowest since September and down from 49.4 in November.

Official PMI data in China, released over the weekend, showed a sharp drop in economic activity. The manufacturing and services measures came in at 47 and 41.6 respectively, both falling to their lowest levels since early 2020 at the start of the Covid-19 pandemic. A reading below 50 indicates contraction, while a reading above 50 indicates expansion.

China’s economy, which until recently was severely strained from restrictions designed to keep the virus at bay, is now struggling. The effect of sudden reopening And the outbreak of the disease in major cities.

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as many as possible Hundreds of millions of people may have been infected With COVID by late December, according to internal government estimates, just weeks after authorities began easing President Xi Jinping’s anti-COVID measures.

In Beijing and other major cities, hospitals have been overwhelmed by a wave of elderly and frail patients Supplies of fever medicine and antivirals sold out.

Carlos Casanova, chief economist at UBP in Hong Kong, suggested that while pandemic restrictions were an initial drag on growth in the fourth quarter, the “explosion in Covid cases” was the most important factor in the weak PMI data.

“The main message from the PMI data is that the wave of reopenings has proven very disruptive,” said Julian Evans-Pritchard, chief China economist at Capital Economics. “The market’s euphoria from the shift away from type zero Covid has overlooked how disruptive the shift has been.”

The virus will be officially downgraded on January 8, when international arrivals will no longer be required to quarantine.

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Weak manufacturing activity in December – which marked the fifth consecutive month of declines for the Caixin Manufacturing PMI – followed a prolonged period of economic fragility. Other metrics, including retail sales, an important measure of consumption, also deteriorated at the end of 2022.

China’s CSI 300 index of shares listed in Shanghai and Shenzhen has fallen 1.5 percent over the past month, although it has risen in the past week since announcing the end of Covid zero.

China’s economy It is set to miss its 5.5 percent annual growth target for 2022 — already the lowest in decades — as economists polled by Bloomberg had forecast full-year growth of just 3 percent.

In addition to the wave of Covid infections, policymakers are grappling with a real estate crisis that has weighed on the economy for more than a year. As well as slowing exportsthat supported growth during the early stages of the pandemic.

However, the Caixin survey bore little silver lining to the outlook for the economy, with plant managers reporting increased confidence for the coming year as the rapid spread of cases fueled expectations after the peak of the wave had passed.

“It’s almost certain by February that things will get over the worst and start to pick up,” Evans-Pritchard said.

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The origin of the DNS error | www.investing.com

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