China reported a record 18.3% GDP growth for the first quarter, a record since statistics have been compiled over nearly 30 years. This indicates that China’s economy is flying back to pre-pandemic levels. For 2021, the stated growth number has been revised down to 6%. 2021 marks the first year in the new five year plan where innovation, the environment with strick goals on carbon emission peak and zero carbon emissions have been set.
Little to no progress is seen on the tense US relationship and in the last meeting with the new Biden administration, the takeaway is for further separation vs partnering up and geopolitical risks in the form of prolonged US-China tensions can come back to focus.
We are happy to see China take a leadership role in stating carbon emission levels. Hopefully before but by 2060, China’s goal is to be carbon neutral and peak carbon emission is 2030. We saw last year that China boosted construction of new solar and wind plants by a factor of two.
Domicile: Malta
Source: Reuters, Marco Polo Pure Asset Management, Open Door, APS, Greenwoods