Late at night, announce a counterattack! It's good to go!

China Fund News Taylor

Hello everyone, there are several news worth paying attention to tonight.

Positive one: the RMB exchange rate rebounded

Tonight, the offshore RMB exchange rate rebounded to 7.25 from the recent 7.2855, up more than 300 points!

On the news, a number of bank branches have lowered the interest rate quotation of US dollar deposit products, from a maximum of 4.3% to 2.8%, and the original products with an annual interest rate of more than $50,000 and an annual interest rate of 4.3% have been canceled.

Previously, the large interest rate differential between domestic RMB and US dollar deposits, and the high interest rate maintained by US money market funds, to a certain extent, made some entities tend to hold US dollars overseas and onshore, or even throw RMB for US dollars, resulting in RMB depreciation and weak actual demand. Therefore, this reduction in the US dollar deposit rate can allow some entities to increase the intensity of foreign exchange settlement when they see "unprofitable", which will significantly ease the pressure on RMB depreciation.

Second, the National Development and Reform Commission held a forum for private entrepreneurs to earnestly listen to the opinions and suggestions of private enterprises

According to the arrangements of the State Council, the National Development and Reform Commission has recently established a communication and exchange mechanism with private enterprises. On July 3, Director Zheng Zhajie presided over a symposium of private entrepreneurs, and had in-depth discussions and exchanges with the responsible persons of five private enterprises, including Sany Group, Oaks Group, YTO Express, Bosideng and Nongfu Spring, and listened carefully to the real situation of the operation and development of private enterprises, the difficulties faced and relevant policy suggestions.

Based on the actual development of enterprises, the five private entrepreneurs analyzed the opportunities and challenges brought by environmental changes at home and abroad to the development of enterprises, introduced some practical difficulties encountered in the process of production and operation, and put forward targeted opinions and suggestions for further optimizing the legal and institutional environment for the development of private enterprises.

Zheng Zhajie said that the National Development and Reform Commission will continue to play the role of the communication and exchange mechanism of private enterprises, continue to listen carefully to the real ideas of private entrepreneurs, study and propose pragmatic and effective policy measures, and try to help enterprises solve practical difficulties and create a good development environment for private enterprises.

Zhao Chenxin, deputy director of the National Development and Reform Commission, Yuan Da, deputy secretary-general and director of the comprehensive department, and the main responsible comrades of the general office accompanied the meeting.

China suddenly counterattacked

On the evening of July 3, the Ministry of Commerce and the General Administration of Customs issued an announcement that, in accordance with the relevant provisions of the Export Control Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China and the Customs Law of the People's Republic of China, in order to safeguard national security and interests, with the approval of the State Council, it was decided to implement export control on gallium and germanium-related items. The announcement will be officially implemented from August 1, 2023.

The announcement makes it clear that, in accordance with the relevant provisions of the Export Control Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China and the Customs Law of the People's Republic of China, in order to safeguard national security and interests, with the approval of the State Council, it is decided to implement export control on gallium and germanium-related items. Among them, gallium-related items include gallium nitride, gallium arsenide, indium gallium arsenic, etc.; Germanium-related items include phosphorus, germanium, zinc, germanium epitaxial growth substrate, germanium dioxide, etc.

The announcement has been officially implemented since August 1, 2023.

Analysis said that gallium, germanium and related compounds are important semiconductor raw materials, as one of the world's largest reserves and production of gallium metal, germanium metal, China's export control of gallium, germanium-related items, will undoubtedly have a significant impact on the global semiconductor industry.

Gallium, used in integrated circuits, LEDs and photovoltaic panels, is considered a key raw material. According to a 2020 report by the European Commission, China accounts for 80% of gallium production. And as for germanium, which is critical for optical fibers and infrared, according to the same document, 80% of the production of this element also comes from China.

Prior to this, the Netherlands and the United States have been moving continuously in the semiconductor field, among which, the Dutch government announced new regulations restricting the export of certain advanced semiconductor equipment, which will take effect on September 1; In addition, according to US media reports, the United States and the Netherlands are trying to give Chinese chip manufacturers a set of so-called "combination punches", which will further restrict the sale of chip manufacturing equipment.

Specific items include:

(1) Gallium-related items.

1. Gallium metal (elemental) (refer to customs commodity numbers: 8110929010, 8112929090, 8112999000).

2. GaN (including but not limited to wafers, powders, chips and other forms) (refer to customs commodity numbers: 2850001901, 3818009001, 3825690001).

3. Gallium oxide (including but not limited to polycrystalline, single crystalline, wafer, epitaxial wafer, powder, chip, etc.) (refer to customs commodity number: 2825909001, 3818009002, 3825690002).

4. Gallium phosphide (including but not limited to polycrystalline, single crystalline, wafer, epitaxial wafer and other forms) (refer to customs commodity numbers: 2853904030, 3818009003, 3825690003).

5. Gallium arsenide (including but not limited to polycrystalline, single crystalline, wafer, epitaxial wafer, powder, chip, etc.) (refer to customs commodity number: 2853909026, 3818009004, 3825690004).

6. Indium gallium arsenic (refer to customs commodity numbers: 2853909028, 3818009005, 3825690005).

7. Gallium selenide (including but not limited to polycrystalline, single crystalline, wafer, epitaxial wafer, powder, chip, etc.) (refer to customs commodity number: 2842909024, 3818009006, 3825690006).

8. Gallium antimonide (including but not limited to polycrystalline, single crystalline, wafer, epitaxial wafer, powder, chip, etc.) (refer to customs commodity number: 2853909029, 3818009007, 3825690007).

(2) Germanium-related items.

1. Metal germanium (elemental, including but not limited to crystal, powder, chip, etc.) (refer to customs commodity numbers: 8112921010, 8112921090, 8112991000).

2. Zone molten germanium ingots (refer to customs commodity number: 8112921090).

3. Phosphorus, germanium, zinc (including but not limited to crystals, powders, chips and other forms) (refer to customs commodity numbers: 2853904040, 3818009008, 3825690008).

4. Germanium epitaxial growth substrate (refer to customs commodity number: 8112921090).

5. Germanium dioxide (refer to customs commodity numbers: 2825600002, 3818009009, 3825690009).

6. Germanium tetrachloride (refer to customs commodity numbers: 2827399001, 3818009010, 3825690010).

The announcement points out that exporters should go through the export licensing procedures in accordance with relevant regulations, submit an application to the Ministry of Commerce through the provincial-level department of commerce, fill in the application form for the export of dual-use items and technologies and submit relevant documents. The export of items listed in this announcement that have a major impact on national security shall be submitted by the Ministry of Commerce to the State Council for approval. Where a license is granted after examination, the Ministry of Commerce shall issue an export license for dual-use items and technologies.

The announcement also points out that if an export operator exports without permission, exports beyond the scope of the permit or has other illegal circumstances, the Ministry of Commerce or customs and other departments shall give administrative punishments in accordance with relevant laws and regulations. Where a crime is constituted, criminal responsibility shall be pursued in accordance with law.