February 2nd Macroeconomic Index: China's Fiscal Science and Technology Expenditure Grows, Digital Economy Emphasized

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Domestic News

1. Xi Jinping: Scientific and technological innovation can give birth to new industries, new models and new drive force, and is the core element of the development of new quality productivity

2. Xi Jinping: It is necessary to vigorously develop the digital economy and build a digital industrial cluster with international competitiveness

3. Ministry of Finance: The cumulative balance of the basic pension insurance fund for national employees of enterprises has approached 6 trillion yuan, and the pension can be guaranteed to be paid on time and in full

4. Ministry of Finance: From 2018 to 2023, fiscal science and technology expenditure will increase from 832.7 billion yuan to 1056.7 billion yuan, with an average annual growth rate of 6.4%

International News

1. Yemen's Houthi rebels pointed out that the United States and Britain attacked the Red Sea city of Hodeidah

2. Tesla: Place an order for the designated version of Model Y can enjoy an immediate cash discount of 8,000 yuan

3. The U.S. House of Representatives passed a $78 billion business and child tax relief bill

4. Japan's factory activity contracted in January due to weak demand, and the output and new orders indices continued to decline

Domestic News

1. Xi Jinping: Scientific and technological innovation can give birth to new industries, new models and new drive force, and is the core element of the development of new quality productivity

Xi Jinping emphasized at the 11th collective study of the Political Bureau of the CPC Central Committee that scientific and technological innovation can give birth to new industries, new models and new kinetic energy, and is the core element of the development of new quality productivity. It is necessary to strengthen scientific and technological innovation, especially original and disruptive scientific and technological innovation, accelerate the realization of high-level scientific and technological self-reliance, and do a good job in tackling key core technologies, so that original and disruptive scientific and technological innovation achievements can emerge one after another, and cultivate new momentum for the development of new quality productive forces.

2. Xi Jinping: It is necessary to vigorously develop the digital economy and build a digital industrial cluster with international competitiveness

Xi Jinping stressed at the 11th collective study of the Political Bureau of the CPC Central Committee that it is necessary to apply scientific and technological innovation achievements to specific industries and industrial chains in a timely manner, transform and upgrade traditional industries, cultivate and expand emerging industries, lay out and build future industries, and improve the modern industrial system. It is necessary to lay out the industrial chain around the development of new quality productivity, improve the resilience and security level of the industrial chain and supply chain, and ensure that the industrial system is independent, controllable, safe and reliable. It is necessary to vigorously develop the digital economy, promote the deep integration of the digital economy and the real economy, and build a digital industrial cluster with international competitiveness.

3. Ministry of Finance: The cumulative balance of the basic pension insurance fund for national employees of enterprises has approached 6 trillion yuan, and the pension can be guaranteed to be paid on time and in full

Hou Junming, Director of the Asset Management Department of the Ministry of Finance, said at the press conference that the income and expenditure of the fund have been effectively improved in recent years. By the end of 2023, the cumulative balance of the basic pension insurance fund for employees of enterprises across the country has approached 6 trillion yuan, and the pension can be guaranteed to be paid on time and in full. At the same time, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, we have also arranged special funds to support the implementation of basic pension services at home and in the community, for example, centralized care for the economically disabled elderly and other pension service projects, and introduced a series of preferential tax policies to support the development of the pension service industry, vigorously support the development of the “Grey Hair Economy”, so that the elderly have "pension money", and can also enjoy affordable and well-used pension services.

4. Ministry of Finance: From 2018 to 2023, fiscal science and technology expenditure will increase from 832.7 billion yuan to 1056.7 billion yuan, with an average annual growth rate of 6.4%

Wang Dongwei, Vice Minister of the Ministry of Finance, said at a press conference today that to implement the innovation-driven development strategy and achieve high-level scientific and technological self-reliance, it is necessary to improve the new national system, optimize the allocation of innovation resources, strengthen the national strategic scientific and technological strength, and promote the deep integration of innovation chain, industrial chain, capital chain and talent chain. In recent years, the state finance has given priority to science and technology as a key area of fiscal expenditure. From 2018 to 2023, fiscal spending on science and technology increased from 832.7 billion yuan to 1,056.7 billion yuan, with an average annual growth rate of 6.4%. At the same time, we also make comprehensive use of policy tools such as tax incentives, government procurement, asset management, and fiscal and financial services to vigorously support scientific and technological innovation.

International News

1. Yemen's Houthi rebels pointed out that the United States and Britain attacked the Red Sea city of Hodeidah

Yemen's Houthi-controlled Masila TV reported on February 1 local time that the United States and the United Kingdom launched several airstrikes on the Jabana district north of Yemen's Red Sea city of Hodeidah in the early hours of the same day. The Massilla TV report did not mention the casualties caused by the U.S. and British air strikes. At present, the United States and Britain have not expressed their position on the air strike. This is the second time in the past 20 hours that the Houthis have claimed that the United States and Britain have attacked areas under their control. On the afternoon of January 31, the Houthis claimed that the United States and Britain had struck a target in the city of Saada in northern Yemen.

2. Tesla: Place an order for the designated version of Model Y can enjoy an immediate cash discount of 8,000 yuan

According to Tesla's Weibo, before the end of March, if you place an order for any model of Model 3/Y/S/X and deliver it, the annual rate can be as low as 2.5%, and you can enjoy a cash discount of 8,000 yuan when you order the designated version of Model Y.

3. The U.S. House of Representatives passed a $78 billion business and child tax relief bill

The U.S. House of Representatives passed a $78 billion business and child tax relief bill that would boon U.S. corporations with significant capital and domestic research spending, as well as a political victory for President Joe Biden in an election year. The bill, which passed by a vote of 357 to 70, is now being introduced in the Senate, where weak Republican support could put the bill in a difficult position over a provision that allows some people with no taxable income to receive a child tax credit and other issues. Senate Minority Leader Mitch McConnell has been silent about the bill, with Republican Mike Crapo saying Republicans could introduce "hundreds" of amendments in the Senate. But the House of Representatives' one-sided vote sent a signal to opponents in the Senate that majorities in both parties supported the deal. The White House said Biden would sign the bill if Congress passes it.

4. Japan's factory activity contracted in January due to weak demand, and the output and new orders indices continued to decline

Factory activity in Japan contracted for the eighth straight month in January, as the domestic and foreign economic downturn led to a decline in output and new orders, a survey showed on Thursday. Japan's final manufacturing PMI rose to 48.0 in January from 47.9 in December, but remained below the 50 line. The index has been below that level since June. Usamah Bhatti of S&P Global Market Intelligence said the sluggish domestic and global economic conditions are putting heavy pressure on the industry. The two main sub-indices, output and new orders, fell for the eighth consecutive month, albeit at a slower pace. In addition, manufacturing activity remains a concern in the coming months, as backlog fell by the most since August 2020. Japanese manufacturers are under more pressure in terms of price and supply.

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