Bank-Card Clearing

China will open the bank-card clearing business to both domestic and foreign investors to further open up the financial sector and optimize the consumption environment. "All qualified domestic and overseas enterprises can apply for setting up bank-card clearing institutions in China," a statement by the State Council said. It added that the country must improve management and prevent risks to safeguard the legitimate interests of card users. At present, China UnionPay is the only bank-card clearing institution in China.

Trade Challenges

China may face notable trade challenges next year, a report from the Ministry of Commerce has said. The November report focuses on China's foreign trade in 2014 and 2015. In the first three quarters of 2014, the government mapped out timely policies to boost trade and stabilize growth. It also improved economic quality and efficiency, the report said. China's trade growth in 2014 will be higher than the average across the world, as well as those of most key economies, it said. In 2015, the global environment for trade will improve in a limited way. China will still face trade risks and uncertainties. Its domestic trade environment will be stable but downside pressures will persist. Facing these complications, the government should further deepen policies to stabilize trade growth, boost imports and cultivate new trade-competitive edges. It should facilitate trade services and avoid trade frictions, the report added.

New-Energy Buses

Chinese authorities have released a plan requiring the heavily polluted metropolises of Beijing and Tianjin as well as cities in Hebei Province to put more new-energy buses on the road to cut pollution. China aims to promote 20,222 new-energy vehicles in the public transport system by 2015. By next year-end, these vehicles should account for at least 16 percent of the buses in those regions. The number of charging posts in those areas is projected to reach 19,657.

Favorable SME Policies

Chinese Vice Premier Zhang Gaoli has reassured small and medium-sized enterprises (SMEs) that measures to help them weather the current downward trend and stimulate economic growth are a priority. Zhang urged administrations and local authorities to implement the favorable policies announced by the Central Government for SMEs. Governments at all levels should continue to reduce the burdens on the SMEs through simplified administrative procedures, tax breaks and improved financing channels, he said. He stressed that the government should help SMEs to be innovative, create new intellectual property and establish their own brands, which will enable them to go out and compete with international rivals.

Information Sharing

Chinese courts and banks will establish an information-sharing system to punish defaulters and facilitate court order enforcement, the Supreme People's Court (SPC) has announced. The SPC and the China Banking Regulatory Commission jointly issued a circular in November on sharing such information online. According to the circular, Chinese banks will take measures such as restricting loans and issuing credit cards to defaulters. They will also help the courts in inquiries, freezing defaulters' funds and seizing them. However, the circular stressed that such measures must follow due procedure and fund security should be guaranteed.

Fiscal Revenue Growth

China's fiscal revenue rose 9.4 percent year on year in October, standing at 1.33 trillion yuan ($216.2 billion), according to the Ministry of Finance. Central Government revenue jumped 11.3 percent year on year, accelerating from a 5.9-percent expansion the previous month. It was due to a rise in revenue from financial institutions and higher corporate income-tax revenue. Local government revenue rose 7.6 percent, slightly faster than September but slower compared with the same period last year. The ministry attributed the situation to the bearish property sector. CA