1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

Events

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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These smartphone makers are beating Apple in China www.cnn.com

Apple is having a rough ride in China, where its main revenue-generating product -- the iPhone -- is facing increasingly fierce competition from homegrown tech companies.
Apple's (AAPL, Tech30) overall sales fell 33% in China in the second quarter, compared to the same period last year. One reason for the decline is the rise of domestic smartphone makers like Huawei, Oppo, Vivo and Xiaomi.
Together, the four brands account for more than 56% of the Chinese market, according to research firm IDC. Their popularity has pushed Apple (AAPL, Tech30) down to fifth place in IDC's ranking of the top smartphone vendors in China, with an 8% share of the market. Meanwhile, upstart Gionee, which offers phones for less than $100, could also soon be a real competitor, according to Strategy Analytics.
In many ways, Apple's own success is to blame for its current challenges in China. The iPhone design has spawned countless imitations, making it harder for the device to stand out. But it has also struggled to keep up with local rivals' marketing strategies that have helped drive consumer demand.
On Apple's latest earnings call, CEO Tim Cook attributed the its quarterly drop in revenue to China's economic slowdown and the company's stellar year there in 2015 -- a hard one to top.
Here's the lowdown on the homegrown companies that are giving Apple a tough time:
Oppo
After releasing its first smartphone in 2011, Oppo has surged to become the second biggest vendor in China and No. 4 worldwide.
Its sleek phones -- like the 5.5-inch F1s "Selfie Expert" and flagship R9 -- look a lot like the iPhone 6S Plus. They emphasize quick charging (five minutes for two hours of talk); enhanced selfie camera features (including a blemish remover); and a lower price point than most devices with similar specs.
oppo R9
The Oppo R9
Oppo's success comes down to a few key strengths: its presence in smaller and mid-sized cities, use of celebrities to promote its phones and highly specific marketing campaigns.
To keep growing, the company will need to start wrangling more affluent customers away from Apple and Samsung in bigger cities. "That is the next battlefield," said Nicole Peng, China director at tech research firm Canalys.
But that won't be easy. Apple has the strongest pull of any brand -- 40% of existing customers choose to stay with it even when they upgrade their phones, according to Canalys.

Vivo
Oppo and Vivo are direct competitors, but both companies were developed by Chinese consumer giant BBK Electronics, Peng said. That's why there are so many similarities in the way they market their products.
Vivo also uses celebrity product ambassadors and has a strong retail presence in smaller cities. Its stores are set up to make the customer feel relaxed and at home while they play with new devices.
"This is still a more convenient option for consumers living in [smaller] cities, as they can easily head to one of the physical shops for after-sale services," IDC says in its report.
Vivo store
A Vivo store in Hangzhou, China. February 2016.
As the race for market share amps up, Oppo and Vivo may band together to compete, according to Peng. But they're both doing fine on their own right now.
Vivo, whose newer products include the V3 and V3 Max, is currently the third ranked smartphone vendor in China. It trails Oppo in market share by a few percentage points.

Huawei
By far the best known brand in China, Huawei is No. 1 in market share. It's third globally, behind Samsung and Apple.
The company just came out with a new line of Honor smartphones in China and the U.S. The Honor 8 is targeted to people who want a premium large-screen device for a mid-tier price.
huawei honor phone
Huawei hopes to woo U.S. consumers with the new Honor 8.
Within China, Huawei has also advertised its devices based on very specific features. In the Huawei P9, for example, the big to-do has been over its dual-camera.
Like its competitors, Huawei has recently hired famous people to promote its products. But IDC analyst Xiaohan Tay has doubts about this strategy.
"Hiring celebrity endorsers may help increase numbers in the short-term, but this alone may not be sufficient to drive numbers in the long run," she writes.

Xiaomi
Just like Apple -- a company to which it's often compared -- Xiaomi has seen its sales decline over the past year. According to IDC, Xiaomi now has less than 10% of the Chinese market, down from around 16% a year earlier.
The company built a lot of buzz in China by selling to customers directly online. Using flash sales as a promotion, products often sold out, which added to the perception of its popularity. But competitors quickly caught on to this business model and replicated it, says IDC's Tay.

"The hype for Xiaomi seemed to have died down recently," she says. "Their low-end Redmi products are the ones that make up the most of their shipments."
To try to combat the decline, Xiaomi has taken a page from its competitors' playbooks and started to hire celebrity endorsers and build physical retail stores.
A Xiaomi spokeswoman contested IDC's numbers about its performance, saying that reports from other firms like Strategy Analytics are "much closer" to the true picture. Still, the Strategy Analytics report also puts Xiaomi in fourth place after a steep drop in market share.

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Bolivia minister killed by protesting miners www.bbc.com

The Bolivian government says its deputy interior minister has been kidnapped and killed by striking miners.
Rodolfo Illanes and his bodyguard were seized earlier on Thursday at a roadblock in Panduro, south of La Paz, official said.
Interior Minister Carlos Romero said "all indications" were that Mr Illanes had been murdered in a "cowardly and brutal" attack.
Two miners also died from gunshot wounds during clashes with police.
Mr Illanes was beaten to death at about 18:00 local time (00:00 GMT), La Razon newspaper quoted Defence Minister Reymi Ferreira as saying.
The authorities could not for the moment retrieve his body, the minister said. More than 100 arrests had been made, he said.
President Evo Morales had been "profoundly affected" by Mr Illanes's death, Mr Ferreira added.
While he was being held, Mr Illanes told Bolivian radio that a condition for his release was that the government negotiate with miners over new legislation.
The miners have been blocking a highway in Panduro since Tuesday.
The National Federation of Mining Co-operatives of Bolivia, once strong allies of President Morales, began what they said would be an indefinite protest after negotiations failed.
Protesters have been demanding more mining concessions, the right to work for private companies, and greater union representation.

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Mercedes-Benz looks to KAMAZ to build car plant in Russia www.rt.com

Russian truck manufacturer KAMAZ is to partner Daimler AG in the construction of a plant to assemble Mercedes-Benz passenger vehicles in Russia.

"We need a partner that has an agreement on industrial assembly, and KAMAZ has it," said Mercedes-Benz Russia CEO Jan Madeja in an interview with Vedomosti daily.

Daimler and the Russian truck maker already have a joint venture Daimler KAMAZ Rus that has a state subsidy on the import of auto components in return for increased capacity and localized production in Russia.

At present, the joint venture produces Mercedes-Benz and Fuso trucks, and is also constructing a factory to make bodies for trucks. Daimler has a 15 percent stake in KAMAZ.

Russian Ministry of Industry and Trade officials have said Mercedes-Benz is to build a passenger car assembly plant in the Moscow region that will start working in 2019. The German company hasn’t officially confirmed the deal yet.

According to Vedomosti, it will be a full-cycle plant with a capacity of up to 25,000 vehicles a year. It’s not yet clear which Mercedes cars it will make, but Madeja said it will represent the most popular models on the Russian market.

The most popular models in Russia are the C and E Class sedans, as well as the GLS, GLA, GLE, GLC models. Last year, 41,614 Mercedes-Benz passenger cars were sold in Russia. This year, the company has sold 22,093 cars in the country through July.

Daimler is one of the few foreign car producers that continue to invest in the Russian market.

“We have recently opened a huge logistics center, a warehouse of spare parts worth €72 million. It was built in a year. We also invested about €11 million on the reconstruction of a three-level showroom Mercedes-Benz Plaza on Leningradsky Prospekt in Moscow,” Madeja told Vedomosti.

"The Russian car market continues to decline, but we are seeing signs of stabilization. In July, we even saw a one percent growth in sales,” he said. Madeja added that a stable ruble is crucial for Daimler’s business in Russia, and sales can go up 3-7 percent in 2017, if the Russian currency is stable.

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Europe hopes to prepare Ukraine for winter through three-party talks www.rt.com

European Union’s energy chief Maros Sefcovic plans to visit Russia and Ukraine next month to explore the interest in trilateral energy supply talks ahead of the winter, according to the European Commission.The talks between the two countries, brokered by the European Union, aim to reduce the risk of a gas shortage this winter.
 
Earlier this week, Russian energy major Gazprom warned about the risks to the transit of Russian gas to the EU through Ukraine because of the low levels currently being pumped into Ukraine's underground storage facilities.
 
The gas Ukraine stores is used in the winter to provide supplies to Europe. According to Gazprom, with the current level of pumping, Kiev will not be able to fill the tanks with 17 billion cubic meters - enough to guarantee the transit.
 
“We see the risks. Most importantly, the current daily volumes suggest they [Kiev] will not reach the level of 17 billion cubic meters. There is little time left until the autumn-winter season which starts in October,” the company’s spokesperson said, citing Gazprom CEO Alexei Miller.
 
The Ukrainian side has assured it would fulfill its obligations. Ukraine's national energy company Naftogaz plans to pump some 14.5 billion cubic meters of gas into the storage facilities before the heating season begins, according to CEO Andriy Kobolev.The Ukraine’s storage facilities were filled with 11,899 billion cubic meters of gas as of August, 22, according to the data from the Gas Storage Europe organization.
 
Another issue raising concerns in Europe is shortage of funds in Kiev.
 
“The minimum gas necessary for Ukraine in the winter is 16 billion cubic meters, and the country is able to reach it with the current daily level, but Naftogaz just does not have money to buy it,” said the former spokesman of Naftogaz Valentin Zemliansky.
 
The Kiev-based company spent $272 million out of $300 million loaned by the European Bank for Reconstruction and Development on buying gas from Europe. Moreover, Kiev’s debt to the State Savings Bank of Ukraine totals some $213 million.
 
Zemliansky stressed that the possibility of further loans from the EU will become a key issue in the negotiations.
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Russia’s Nord Stream-2 pipeline is a 'bad deal' for Europe - Biden www.rt.com

US Vice President Joe Biden says Washington regards Russia's Nord Stream-2 gas pipeline as a "bad deal" for Europe. Biden was speaking at a news conference in Sweden on Thursday.Before the conference, a Swedish daily Svenska Dagbladet said Washington was intending to put pressure on Stockholm over its participation in the project.
 
According to the report, the US regards Nord Stream-2 as a Russian political tool designed to drive a wedge between European countries with different Russian gas supply needs. In addition, it is seen by Washington as a way to cut off Ukraine from transit revenue for Russian gas.
 
In May, Russian Foreign Minister Sergey Lavrov accused the US of trying to thwart the gas pipeline. He called America’s attempts to block the project entirely political. Lavrov said Nord Stream-2 will increase Europe's energy supplies and improve the continent's energy security.
 
The pipeline aims to provide an additional direct route for Russian gas to Germany via the Baltic Sea bypassing Ukraine, and be able to deliver up to 55 billion cubic meters of gas per year.
 
Moscow is seeking alternative ways of pumping gas to Europe as it considers Kiev to be an unreliable partner. The gas transit agreement between Russia and Ukraine expires in 2019 and there’s a possibility it will not be prolonged.
 
The project will follow the route of the existing Nord Stream, which opened twin pipelines through the Baltic Sea in 2011 and 2012.Initially, Gazprom intended to hold a 50 percent stake in the project with the other shares divided equally between Royal Dutch Shell, Germany’s E.ON and BASF, Austria’s OMV and France’s Engie. On August 12 the companies left the joint venture under pressure from the Polish Office of Competition and Consumer Protection. A statement on the Nord Stream-2 website said all the participants will “individually contemplate alternative ways to contribute.”Nord Stream-2 is not the first Russian pipeline to face harsh opposition from the US. In 2014, Bulgaria stopped the South Stream pipeline project on the recommendation of the EU, but the decision was announced after the country was visited by US senators John McCain, Chris Murphy and Ron Johnson. This August, Bulgaria changed its position on the pipeline, indicating it is willing to resume talks with Moscow.
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Speaker meets GEIDCO chairman www.montsame.mn

Ulaanbaatar /MONTSAME/ Speaker of parliament M.Enkhbold received Thursday Liu Zhenya, chairman of the Global Energy Interconnection Development and Cooperation Organization (GEIDCO) and the China Electricity Council (CEC), in the State House.

Beginning the meeting, M.Enkhbold expressed his satisfaction with sharing views with the GEIDCO chairman on establishing a regional-level energy network in Mongolia.

“Mongolia has high reserve of energy, and the energy sector plays an important role in the Mongolia-China cooperation. Last years, we were able to realize mega-projects and programs, but they have not been implemented due to political and financial reasons,” the Speaker said.

The Speaker pointed out that Mongolia, China and Russia are talking to build developmental railways that will connect the infrastructure of the three countries. The three countries are focusing attention to bringing their collaboration in five directions--auto road, airways, railways and pipelines of gas and liquid fuels. These works will be realized when the countries reach a consensus, Enkhbold said.

Expressing thanks to the Speaker for the audience, the GEIDCO chairman gave some information about a China’s initiative on founding Global Network of Energy, a plan of establishing the Energy Network of Northeast Asia and the “Shivee-Ovoo” project on energy export.

“Energy consumption of China, South Korea and Japan account for about 65% of the total consumption in Asia. It is expected that the China’s consumption will go up by nine trillion KWT, South Korea--by 12 trillion KWT, and Japan--by 0.7 trillion by the year 2030. It means that the energy market will definitely broaden, and it is important to building up the competitive energy network,” Liu said. He emphasized that the Shivee-Ovoo project energy export is capable to boost the bilateral cooperation in economic and energy fields, and to become a competitor in the Northeast Asian energy market.

Liu also mentioned that Mongolia is possible to be connected with an energy infrastructure network and to boost mutually-beneficial cooperation in energy and renewable energy industries because the country is geographically closely loacted to countries with high consumption of energy.

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54 vehicles purchased during ASEM organization www.gogo.mn

Budget expenditure risen by MNT 2.3 billion this year. What was the reason of increased budget expenditure?
This year we have organized ASEM 11th meeting while took part in Rio 2016 Olympics which might caused the budget expenditure. 
According to the glass account of the Ministry of Foreign Affairs, which obliges the public bodies to make all transactions of the public expenditures and procurement over 5 million MNT (approximately 2,300 USD) open to the public on their websites, products bought in June in scope of ASEM organization have reached MNT 538 million. 
In addition, Mongolia purchased 52 pieces of Toyota Prius, installed police package equipment by total of USD 1,671,904 (per price is USD 32,152) and two Mercedes Benz with USD 258,222 for ASEM organization. The 52 vehicles were transferred to the General police department while two Mercedes Benz were transferred to the State security service.

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Apple tackles iPhone one-tap spyware flaws www.bbc.com

Flaws in Apple's iOS operating system have been discovered that made it possible to install spyware on a target's device merely by getting them to click on a link.
The discovery was made after a human rights lawyer alerted security researchers to unsolicited text messages he had received.
They discovered three previously unknown flaws within Apple's code.
Apple has since released a software update that addresses the problem.
The two security firms involved, Citizen Lab and Lookout, said they had held back details of the discovery until the fix had been issued.

The text promised to reveal details about torture
The lawyer, Ahmed Mansoor, received the text messages on 10 and 11 August.
The texts promised to reveal "secrets" about people allegedly being tortured in the United Arab Emirates (UAE)'s jails if he tapped the links.
Had he done so, Citizen Lab says, his iPhone 6 would have been "jailbroken", meaning unauthorised software could have been installed.
"Once infected, Mansoor's phone would have become a digital spy in his pocket, capable of employing his iPhone's camera and microphone to snoop on activity in the vicinity of the device, recording his WhatsApp and Viber calls, logging messages sent in mobile chat apps, and tracking his movements," said Citizen Lab.
"We are not aware of any previous instance of an iPhone remote jailbreak used in the wild as part of a targeted attack campaign, making this a rare find."
The researchers say they believe the spyware involved was created by NSO Group, an Israeli "cyber-war" company.

Analysis: Dave Lee, BBC North America technology reporter
This is many ways a textbook case of the cybersecurity community acting precisely as it should. Researchers were alerted to a vulnerability, investigated it, and made Apple, the company responsible for fixing it, aware so it could issue a fix. Apple, to its credit, understood the severity and acted quickly - it took them just 10 days.
These types of vulnerabilities are rare and extremely lucrative. A genuine "zero day" - the name given to previously unknown security flaws - can be sold for upwards of $1m when it affects a major piece of software like Apple's iOS. In this case, it looks like several zero days were combined to make a hugely sophisticated attack package.
Now attention is shifting to the secretive organisation said to be behind the attack, the NSO Group, described by researchers as a cyber arms dealer, and described by itself as firm capable of being a "ghost" on victims' devices - working undetected but gathering enormous amounts of private data.
According to Privacy International, NSO Group has sold its products to clients in Mexico and in Panama - but little is known about other deals involving the company which is said to be worth more than $1bn.
Pressure is also being put on Francisco Partners Ltd, the San Francisco-based venture capital firm that has a controlling stake in NSO Group. It is yet to comment on the controversial attack.
"[It is] the most sophisticated spyware package we've seen," said Lookout.
"It takes advantage of how integrated mobile devices are in our lives and the combination of features only available on mobile - always connected (wi-fi, 3G/4G), voice communications, camera, email, messaging, GPS, passwords, and contact lists."
NSO has issued a statement acknowledging that it makes technology used to "combat terror and crime" but said it had no knowledge of any particular incidents and made no reference to the specific spyware involved.
"These are rather rare zero-day flaws," commented security expert Prof Alan Woodward, referring to the technical name for previously unknown vulnerabilities.
"To have several found at once is even rarer. As can be seen from how these have been exploited to date, it represents a serious threat to the security and privacy of iOS users.
"Apple has been remarkably responsive in providing fixes for these issues, so I would encourage any iOS users to update to the latest version of the operating system."

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China, U.S. still in talks on trade pact despite challenges: Chinese commerce official www.reuters.com

China and the United States are still in frequent discussion about a bilateral trade pact, despite a challenging global trade environment, a Chinese commerce official said on Thursday.
 
China is keen to maintain open markets for its goods as its economy grows at its slowest pace in 25 years, but it faces rising trade tensions as its imports deteriorate faster than exports, setting it up for another record trade surplus.
 
Last year, the U.S. trade deficit with China was $336.2 billion, according to the U.S. Trade Representative's office. Republican presidential candidate Donald Trump threatened on Wednesday to slap tariffs on Chinese products to show Beijing the United States is "not playing games anymore".
 
The United States - China's second-largest trade partner after the European Union - has imposed anti-dumping and countervailing duties on Chinese products and also brought cases against China at the World Trade Organization.
 
"The global economy has not emerged from its difficulties, which has led a lot of countries to adopt trade protectionist policies," China's Ministry of Commerce spokesman Shen Danyang said in a rare conversation with reporters over coffee in a Starbucks cafe near Tiananmen Square.
 
Chinese steel exports have surged this year even as global growth remains weak, prompting complaints that China was dumping excess capacity.
 
"There is no evidence China is dumping steel products. Growth in exports is due to greater competitiveness of Chinese firms, as costs have fallen," Shen said.
 
In response to claims by the head of the U.S. Export-Import Bank (EXIM) Chairman Fred Hochberg that China gave its exporters 10 times more financing than the United States did in 2015, Shen said there are disagreements on what constitutes subsidies.
 
If there are disputes, the two sides can take it to the WTO, he said.
 
Shen did not offer any details on plans announced on Tuesday to open more sectors to foreign investment, but said foreign companies are not investing in China as much as before because competition from Chinese companies is increasing.China is not part of the U.S.-backed Trans-Pacific Partnership (TPP) accord involving 12 Pacific Rim countries. TPP members have said the pact is not meant to target China, which does not feel it is targeted. Beijing is separately pursuing a regional framework with its trade partners that omits the United States.
 
The biggest challenge facing China's economy is the need to effectively implement supply-side reform to improve the structure of the economy, he said.
 
"There is demand for quality products, but that has to be met with effective supply. It requires innovation, which is difficult," Shen said.
 
"In the past, when facing slowing growth, we would stimulate demand - loosen monetary policy, use fiscal measures. Now we are focusing primarily on using structural supply-side reform. This is the right direction, but it's not easy."
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Japan sees inflation hitting another low www.bbc.com

Japan's consumer prices dropped for the fifth consecutive month in July, adding to pressure on the government to expand its already massive stimulus programme.
The data was worse than estimates had suggested and marked the biggest annual drop in more than three years.
The core consumer price index, which excludes volatile fresh food prices, fell 0.5% compared with a year earlier.
Tokyo has been trying to raise inflation for years to stimulate spending and boost the economy.
The disappointing data comes on the heels of weaker-than-expected economic growth released earlier this month and despite an aggressive spending policy by the government.
In July Prime Minister Shinzo Abe announced the latest stimulus effort, a massive new package worth 28 trillion yen ($265bn; £200bn).
Japan has been desperate to boost consumer spending for years which accounts for 60% of the economy.
The government's policy of economic reforms - dubbed Abenomics - consists of a three-pronged fiscal, monetary and structural approach to lifting the economy out of its protracted slump.The three arrows: explaining Abenomics
The monetary arrow: expansion of the money supply to combat deflation
The fiscal arrow: increased government spending to stimulate demand in the economy
The structural arrow: structural reforms to make the economy more productive and competitive
Yet despite three years of Abenomics, inflation has remained significantly lower than the central bank's 2% goal.
Persistently weak household spending is to blame combined, more recently, with a strengthening yen which has pushed down import prices.
Analysts expect the rate to remain low or even fall further.
"As such, inflation expectations may weaken further in coming months," Marcel Thieliant, senior economist at Capital Economics said in a note.
"The Bank of Japan has recognised that there are considerable risks to its forecast of hitting its 2% inflation target in the coming fiscal year. We therefore continue to expect more stimulus to be introduced at the Bank's September meeting."
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