Issue link: https://iconnect007.uberflip.com/i/622045
January 2016 • SMT Magazine 15 to be imposed over the next few years to help cut carbon emissions in half by 2030. Heavy en- ergy-consumption industries, the top emitters, will take a hit, and cleaner energy companies like solar panel and wind turbine makers are expected to benefit. Under this thrust, cleaner vehicle development and deployment, like elec- tric cars, is expected to prosper. So deploying electric vehicles in China could be faster than the United States. In addition, China will steer traditional manufacturing along an environmentally friendly path to establish a low-carbon produc- tion system and encourage businesses to up- grade technology. It is reported that the gov- ernment plans to set up a Green Development Fund to promote clean industry and sustainable growth. Strategic industries, which are deemed a key element in delivering higher quality growth, will be strongly supported by the government. This cluster includes new energy, biotechnol- ogy, environmental protection, new generation information technology and the underlying foundation technologies (e.g., a new generation of advanced materials). Automobile electronics sectors are to thrive under the upcoming FYP. Education, health and infrastructure develop- ment, including charging stations for electric vehicles, are also in the plan. smt prospects & perspectives New Year OutlOOk: ChiNa's five Year plaN ket of reserve currencies (the decision was an- nounced on November 30, 2015). A panel led by Michael Bloomberg was formed to bring the trading of China's currency to Wall Street—to build a framework for the trading and clearing of China's yuan in the U.S. The panel expressed that bringing trading and clearing services for the Chinese currency to the U.S. would lower costs for domestic companies buying goods and services from the Asian nation (WSJ, November 30, 2015). The state-owned enterprises were going through an overhaul—separating transporta- tion and services from other industries. Strate- gic industries will now enjoy preferential sup- port and non-strategic companies will be more open to private and foreign investors. The share of state-owned enterprises in industrial output has continued to drop steadily. Socially, a symbolically significant move was made as China decided to abandon its one-child policy and all Chinese couples will be allowed to have two children. The housing market prob- lem persisted. Politically, a historic meeting be- tween Xi Jinping and the leader of Taiwan, held in Singapore, was, to many, a surprise. Another highly impactful initiative was that China stepped up its anticorruption drive, im- posing a monumental shock on businesses. The consequence of that is much more acute and pervasive than what is obvious. anticipated key strategies The details of the FYP will not be released until the National People's Congress approves it in March. Meanwhile, we must consider which sectors are likely to be favored over the next five years. Environmental protection will be a priority. Controlling the emission of small particulate matters of 2.5 microns or less is a key remedi- ating measure. The nation's Airborne Pollution Prevention and Control Action Plan—mandat- ing reductions in coal use and emissions—has earmarked an estimated $277 billion to target regions with the heaviest pollution. This is one of several policy efforts to limit coal's domi- nance in the economy and to encourage cleaner energy supplies. Reportedly, an environmental tax is likely " Heavy energy-consumption industries, the top emitters, will take a hit, and cleaner energy companies like solar panel and wind turbine makers are expect- ed to benefit. Under this thrust, cleaner vehicle development and deployment, like electric cars, is expected to prosper. "