China declared a short-term strategy for technological independence in the austerity budget, and the United States concluded a defense cost negotiation with South Korea and Japan in a technological alliance.
Foreign investors sold large amounts of stocks in Korea last week and intensively sold IT hardware, automobiles, chemicals, and energy sectors, warning light on the strategy of the general manager.
Both sides of China confirmed the 14th Five-Year Plan to increase R&D funds by 7% year-on-year for five years to intensively nurture science and technology, and reduce the fiscal deficit from '3.6% or more' last year to 3.2%. Presented on the 5th.
China's total debt ratio (government + non-financial companies + households) increased 23.6%p from the end of last year to 270.1% last year by expanding the currency supply due to the coronavirus. Prices increased and the stock market overheated.
Chinese Prime Minister Li Keqiang revealed that this year's economic growth target was "6% or more" on the 5th in a report on both sides. The International Monetary Fund (IMF) previously announced tightening to correct the 8.1% growth rate in China this year.
China's fiscal deficit size targets for three years from 2018 increased to 2.6%, 2.8%, and 3.6%, then turned to a reduction in the fiscal deficit this year, and local government special bonds also reduced to 3.65 trillion yuan last year (3.75 trillion won). Yuan).
China also issued 1 trillion yuan of government bonds for Corona last year, but this year it began tightening fiscals with a full cancellation.
Chinese financial regulator Guo Su-qing, chairman of the Bank Insurance Management Supervision and Management Committee, told the South China Morning Post (SCMP) on the 2nd that the ``side effect'' of aggressive stimulus measures implemented by the United States and other advanced countries began to appear in the U.S. stock market. "We are very concerned," he warned publicly about the possibility of this coming out soon.
“The additional liquidity in the US and European financial markets following the economic stimulus policy pushed the asset valuation above the level that economic fundamentals could justify. It poses a serious risk of going in the opposite direction," he said. "If the financial market is too far apart from the real economy, problems will arise, and soon the market may be reconciled. Some side effects are appearing slowly now,” he said.
On the 24th of last month, U.S. President Biden issued a'review' executive order on the global supply chain of four key items, including semiconductor chips, large-capacity batteries for electric vehicles, rare earths, and pharmaceuticals. ', and the Senate passed the $1.9 trillion economic stimulus plan and signed the president before the 14th, and the strong dollar trend continues, and the won is showing a weak market, rising by 47 won, contrary to the judgment of the Korean government and securities companies.
The Ministry of Foreign Affairs and Trade announced on the 7th that "a principle agreement has been reached for the conclusion of the SMA", and the US State Department said, "The agreement included a'significant increase' by the ROK side."
Regarding the agreement, the U.S. media reported that the provisional agreement increased by 13% from 1,389 trillion won in 2019, which had collapsed in the Trump regime, and restored the provisional agreement for 6 years until 2026.Last month, the settlement agreement with Japan was'extending the current level by 1 year' (4 in 2021). It is 21.7 billion yen for one year from January).
Since July 2019 in the wake of the Korea-Japan conflict, Japan ranked first in Korea's trade deficit last year despite intensifying anti-Japanese boycotts due to export restrictions on three semiconductor and display materials and Korea’s material, parts, and equipment (general manager) independence strategy. It was maintained for a year in a row, and equipment for semiconductor manufacturing was selected as the subject of additional export restrictions.
Regarding the biden administration's executive order for the semiconductor global supply chain, Bloomberg said on the 1st, "Asian strategy is moving away from missile and armament competition, and for the next generation of semiconductor artificial intelligence network, we are pushing for allies to dominate China in semiconductor manufacturing and quantum computing.".
In February, foreigners invested in Korea sold stocks worth 3,242 trillion won and invested 8,988 trillion won in bonds.
Stocks have been'selling' for three consecutive months since December of last year, and bonds have increased 8 times from an investment of 1.158 trillion won in January, net buying 12.84 trillion won from 3.96 trillion won in repayment.