Business

China expounds indigenous way to achieve modernization & innovative growth

Published

2 years ago

17/10/2022

BEIJING, Oct. 17 (Global Times)

China on Sunday expounded the country’s indigenous approach to achieving modernization, as the Communist Party of China (CPC) set its sights on leading national efforts to accelerate the creation of a new development pattern and pursue high-quality development.

Scientific socialism has manifested new vitality in China in the 21st century and the Chinese-style modernization has provided a new option for mankind to realize modernization, Xi Jinping said on Sunday in a report at the opening session of the 20th CPC National Congress.

“From this day forward, the central task of the CPC will be to lead the Chinese people of all ethnic groups in a concerted effort to realize the Second Centenary Goal of building China into a great modern socialist country in all respects and to advance the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization,” he said.

The keenly watched Chinese path is envisioned to navigate the economy through the bruises and scars – exemplified by the prolonged pandemic, geopolitical tensions and drastic monetary tightening – that have left a mess behind for the Western world, experts said. As the key CPC Congress anchors the country toward greener, fairer, more secured and innovative growth in the years to come, the global economy will hinge its future on a prosperous China more than ever, they stressed.

Novel option for modernization

The Chinese path to modernization, one of the key takeaways from Xi’s report to Sunday’s opening session, almost instantly became a buzz phrase that reverberated across the world.

In his report, Xi reaffirmed that Chinese modernization is the socialist modernization pursued under the leadership of the CPC. Chinese modernization is the modernization of a huge population, of common prosperity for all, of material and cultural-ethical advancement, of harmony between humanity and nature and of peaceful development, he stressed, adding that it offers humanity “a new choice” for achieving modernization.

Tian Yun, former vice director of the Beijing Economic Operation Association, told the Global Times on Sunday that the opening speech flagged Chinese-style modernization for the first time and pinpointed it as the core mission of the CPC on the new journey of the new era.

“The 19th CPC National Congress mapped out a direction Chinese-style modernization was supposed to head but the concept still remains vague. Since it is very hard to materialize modernization in the context of World Bank technical standard, giving the unique situation and characters of Chinese economy, the report delivered on Sunday gives the concept an extension and an upgrade in connotation,” Tian said.

He praised Chinese-style modernization as providing a new paradigm of modernization in a globalized era that eradicated two vicious byproducts associated with Western ways of modernization – hegemony and colonization.

In his remarks to the opening session on Sunday, Xi said that China stands firmly against all forms of hegemonism and power politics, the Cold War mentality, interference in other countries’ internal affairs, and double standards.

China adheres to the right course of economic globalization. It is committed to working with other countries to foster an international environment conducive to development and create new drivers for global growth, Xi said.

The five aspects encapsulated in the definition of Chinese-style modernization lay out the guiding principles of China’s march toward the second centennial goal and when such target is achieved, it could mark an unprecedented achievement in the history of mankind and “a fundamental turnaround in global landscape,” Yao Jingyuan, special researcher of the Counselors’ Office of the State Council, told the Global Times on Sunday.

“China is home to 1.4 billion people, which is more than the combined population of all modernized countries [by current definition]. That means when China reaches its second centennial goal, it will be a modernized economy with the largest population in the world,” Yao said.

Another major difference of Chinese modernization with Western economies is its emphasis on common prosperity, a stark contrast to the modernization path taken by Western countries which led to widening gaps between the rich and poor, and the inequality in social development, Yao noted.

He further said that Chinese-style modernization is characterized by peaceful and green development, “unlike how some modernized countries boom at the tears and bloods of the developing world – through invasion, colonization and exploitation, or at the cost of destroying natural resources and emitting carbon dioxide at sky-high levels that fuels global warming.”

“I believe that the decisions made at the 20th Party Congress will be a worthy response to the challenges of the modern world and will determine the course of China’s socioeconomic development not only for the next five years, but also, as is customary in China, for the longer term,” Belarusian Ambassador to China Yuri Senko told the Global Times over the weekend.

In the five years since the 19th Congress, the socioeconomic agenda in China has undergone quite noticeable changes, which was due to a number of objective reasons – the coronavirus pandemic, the growing competition with developed countries in the field of high technology against the background of geopolitical confrontation with certain Western countries such as the US, the ambassador said.

Business

MTCC reports staggering 82.9% net profit drop

Published

15 hours ago

01/05/2024

Maldives Transport and Contracting Company (MTCC) has reported a staggering 82.9% net profit decline for Q1-2024.

According to MTCC, it earned just MVR 5.2 million in net profit for the review quarter, which came down from MVR 30.8 million in the last quarter of 2023.

The company’s revenue for Q1-2024 stood at MVR 664.4 million, which is a 15.8% drop from MVR 789.2 million generated in the Q4-2023.

Moreover, MTCC reported a whopping 94.5% decline in its Gross Profit for the review quarter, registering MVR 2.5 million in Q1-2024 compared to MVR 44.3 million.

The operating profit for the review quarter stood at MVR 41.8 million, which is a 26% drop from MVR 56.5 million in Q3-2023.

The net asset value per share dropped from MVR 227.95 in Q4-2023 to MVR 226.98 to Q1-2024, while earnings per share saw a notable decline from MVR 3.83 in the preceding quarter to just MVR 0.65 in the review quarter.

Source(s): sun.mv

Business

STO opens showroom in Hulhumale’

Published

1 week ago

24/04/2024

State Trading Organization (STO) has opened a showroom specialized for construction in Hulhumale’.

The showroom was inaugurated by Construction Minister Dr. Abdulla Muthalib during a special ceremony held on Tuesday night.

Speaking at the ceremony, STO’s Managing Director Shimad Ibrahim stressed the role of the company’s former managements and board members in carrying forward the company and therefore extended them gratitude.

Situated at the same location as STO’s Hulhumale’ shop – next to STO’s Smart Store near Hulhuamle’ Hospital – the construction solutions showroom was opened following renovations up to modern standards.

STO reports that all construction-related products sold by the company will be available at the showroom including some of the most renowned brands sold by the company; Makita tools, Nippon paint and concrete from prominent mix designing brands among others.

The state-owned company is prominent in the local construction industry as STO’s constructions solutions is the largest importer and seller of construction-related products in the Maldives.

STO noted that customers can now place orders for construction-related products including Makita tools and Nippon paint via the Hulhumale’ showroom which would eliminate the need to travel to Male’ to make the purchases. Arrangements have been made in the showroom to prepare the colors of Nippon paint ordered by the customers on demand.

Henceforth, they attributed the opening of the new showroom as something which would bring easements to the lives of Hulhumale’ residents and construction industry partners operating in the suburb.

Source(s): sun.mv

Business

Economy thrives, projects speed ahead despite challenges

Published

2 weeks ago

18/04/2024

Before President Dr. Mohamed Muizzu assumed office, the economic condition of the Maldives was significantly deteriorating. Experts attribute the primary reason for the depreciation of the Maldivian currency to the excessive printing of money by the previous administration.

According to statistics from the Maldives Monetary Authority (MMA), more than USD 518.04 million was printed over the last three consecutive years, marking a historic high compared to USD 388.53 million printed over 40 years.

Additionally, upon assuming office, President Muizzu inherited a heavy debt burden. The total debt amounted to over USD 7.71 billion, with a significant portion owed to companies for upcoming parliamentary elections and previously initiated projects, totaling USD 584.88 million.

Despite these challenges, President Muizzu has been proactive in rejuvenating the Maldives’ economic status. Within three months of his tenure, USD 35 million has been deposited into the sovereign development fund. The President estimates that more than USD 100 million will be deposited into the fund by the end of the year.

discontinuation of printing money has been regarded as a pivotal step towards economic progression for the Maldives

President Muizzu’s commitment to revitalizing the Maldivian economy without resorting to the printing of money is indeed a significant pledge. By discontinuing the practice of printing money, the government aims to address economic challenges while ensuring fiscal responsibility and long-term sustainability.

The decision to immediately halt the printing of money upon assuming office underscores President Muizzu’s determination to prioritize sound monetary policy. This move reflects an acknowledgment of the risks associated with excessive money printing, including inflation and currency devaluation, and signals a commitment to addressing these challenges through prudent financial management.

Furthermore, President Muizzu’s plans to boost the country’s prosperity and income by reducing reliance on loans and settling debts owed to both foreign and domestic entities demonstrate a holistic approach to economic revitalization.

attracting a vast pool of investors

The efforts of the present administration to attract a wide range of investors reflect a strategic approach to addressing the significant development needs of the Maldives. By engaging in investment forums both domestically and abroad, the government has been successful in showcasing the diverse investment opportunities available in the country.

The decision to host investment forums in countries like China and the UAE demonstrates a proactive approach to international investment promotion. These forums serve as platforms for highlighting the potential for investment in key sectors such as infrastructure, tourism, and hospitality. By creating awareness about these opportunities, the government aims to attract investors who are interested in contributing to the development of critical projects, including the establishment of bridges, domestic airports, and resorts.

Over 500 projects underway

The continuation of 527 projects, including those that faced interruptions due to non-payment to companies during the government transition, underscores the commitment of President Muizzu’s administration to ensure continuity and progress in ongoing initiatives. Despite the challenges encountered, efforts have been made to address issues such as delayed payments and optimize project expenses to keep important projects on track.

It’s notable that the current year’s budget, initially approved by the prior administration, may not have fully aligned with President Muizzu’s priorities and rules for project implementation. This misalignment may have resulted in some projects not receiving adequate budget allocations or not being included in the budget at all. However, the administration has taken steps to optimize expenses and prioritize projects that align with President Muizzu’s vision for development

Initiatives to enhance economic growth and foster sustainable growth

The International Monetary Fund (IMF) has recognized President Muizzu’s initiatives as some of the strongest implementations seen among world leaders, emphasizing their potential for substantial progression. The IMF applauded the government’s decision not to overdraw the government’s account and expressed its readiness to provide any assistance needed. This endorsement from the IMF underscores the effectiveness of President Muizzu’s economic policies and strategies.

Additionally, the Maldives National Chamber of Commerce and Industries has voiced support for the government’s initiatives, recognizing them as favorable for the Maldivian future as a growing economy. Despite challenges such as a shortage of dollars for small businesses, the Chamber remains optimistic that the government’s decisive actions will lead to economic growth and stability in the value of the dollar.

The government has projected a 5.5 percent economic growth rate for this year, indicating confidence in the trajectory of the economy under President Muizzu’s leadership. Furthermore, President Muizzu revealed a significant reduction in the country’s primary debt balance, from USD 103.61 billion last year to USD 8.68 million in the current year. This reduction in debt, achieved within just four months, demonstrates the government’s commitment to fiscal responsibility and its ability to effectively manage the country’s finances.

Overall, these developments indicate that the government’s economic rejuvenation efforts have been successful, earning the confidence of global financial institutions in the Maldives’ future economic prospects.

Source(s): PsmNews