Spend enough time in China and you’re bound to be disappointed now and again. You may even find yourself a less kind, less trusting individual than you were before, doubting even the word of such stalwart sources as government officials or SOE executives. So you can understand, gentle readers, why this week’s plethora of promises had us on edge.
For instance, officials in Beijing promised to tackle the ever-present haze that sits atop the city before the APEC summit arrives. Based on the PM2.5 levels seen in the capital this week we wouldn’t bet too heavily on their success, but one automaker knew an opportunity to pounce when it saw one: Volkswagon decided to announce plans to launch over 20 models of battery-driven cars in China by the end of 2018, vowing to put five million on the road by 2020. (We somehow doubt that will make much dent in China’s carbon footprint given recent news about the grade of fuel used by its container ships.)
And speaking of Asia-Pacific Economic Cooperation, China’s foreign minister promised this week that an anti-corruption deal would be signed at said summit. Meanwhile, anti-corruption czar Wang Qishan’s promise to root out corruption in all corners extended to a (former) top PLA general charged with bribery and a (Shanghai) State Grid general manager placed under inspection this month, striking fear in the hearts of officials who rank somewhere in the vast middle ground between tiger and fly.
The six-month promise of the Hong Kong-Shanghai stock market linkup had some holding out hope that it might launch (almost) on schedule by the end of this month. The market was less trusting, unfortunately, and China stocks fell for days on end in response to extended delays. Not all news from the bourses was about guarantees reneged on, though: While Baidu’s sales looked set to disappoint, its Q3 profits outdid forecasts, prompting its stock to hit highs not seen since the company’s debut in New York.
However those pinning their hopes on the promise of an apparent rebound for China exports were dismayed to hear that accounts from the mainland and Hong Kong had diverged substantially, suggesting a return of infamous fake invoices. More bad news struck when a People’s Bank of China member predicted 7.2% growth for the year’s fourth quarter, which might render the country unable to attain its promised 7.5% standard for the year.
Meanwhile those chronically over-leveraged in China’s property market might take solace in the central government’s pledge to support the property industry. Granted, it offered no details whatsoever, but at least it also promised to let foreign firms process credit card payments at long last – fulfilling, potentially, a promise the US has been harping on the country to keep since it joined the WTO. China, it seems, can make good on a promise after all – provided you give it a little time.