# China Economy - News & Updates



## Neo

Discuss chinese economy and development in this thread.


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## Neo

*ChinaÃ¢â¬â¢s trade surplus makes new record *

BEIJING: ChinaÃ¢â¬â¢s trade surplus last year soared 74 per cent to hit a record $177.47 billion, state press said on Wednesday, as analysts warned of another rise in 2007 that would further anger the United States.

Citing the customs bureau, the Xinhua news agency said the trade surplus for December alone was $21 billion, a slight fall from NovemberÃ¢â¬â¢s $22.9 billion.

ChinaÃ¢â¬â¢s trade surplus jumped 74.1 per cent last year from the then record of $101.9 billion in 2005, and sky-rocketed more than five-fold from $31.98 billion in 2004.

The surplus has been a major concern for ChinaÃ¢â¬â¢s biggest trading partners, particularly the United States, and WednesdayÃ¢â¬â¢s numbers were expected to fuel calls for Beijing to take tougher action to reverse the trend.

ChinaÃ¢â¬â¢s critics say the yuan is being kept drastically undervalued, giving Chinese exporters an unfair advantage by being able to sell their products in overseas markets more cheaply.

Song Guoqing, an economics professor at Beijing University, said he expected the surplus to climb sharply again this year, bringing more howls of protest from the United States.

Ã¢â¬ÅI think the figure will be $250 billion in 2007... the pressure from the US will always be there as long as the surplus is huge,Ã¢â¬Â Song said.

Sun Mingchun, chief economist with Lehman Brothers in Hong Kong, agreed that another rise in the surplus could be expected this year, although he said the increasing trend should begin to slow.

Ã¢â¬ÅFor 2007, the surplus will continue to increase but it wonÃ¢â¬â¢t be as much as this year,Ã¢â¬Â Sun said.

Ã¢â¬ÅThe Chinese government is doing a lot of effort to slow it down. For one it is allowing the yuan to appreciate,Ã¢â¬Â Sun said.

The yuan, which is managed against an undisclosed basket of currencies and is allowed to move 0.3 per cent each day, has appreciated at a slightly faster pace in recent months.

The yuan gained 3.2 per cent against the dollar last year and Sun predicted another rise of 4.0 per cent in 2007, however critics in Washington say the yuan is undervalued by as much as 30 per cent.

ChinaÃ¢â¬â¢s trade surplus with the United States stood at 116.2 billion in the first 10 months of 2006, up 25.2 per cent over the same period of 2005, according to previously released Chinese government figures.

For their part Chinese officials insist that Washington is partly to blame due to US restrictions on exports of high-tech and security-sensitive goods as well as WashingtonÃ¢â¬â¢s failure to boost low US savings rate.

But US trade is only part of the story. While the yuan gained slightly against the US dollar last year, it fell more than seven per cent against the euro.

Brussels and Beijing have butted heads on specific Chinese exports such as ultra-cheap bras and shoes.

In 2006, Chinese exports rose 27.2 per cent from the previous year to $969.08 billion, while imports increased 20 per cent to $791.61 billion, according to Xinhua.

Aside from a stronger yuan, Sun said the rise in the surplus would begin to slow in 2007 due to sharp increases in energy and resources costs, along with policies that will force companies to be kinder to the environment.

Ã¢â¬ÅAll that will increase the cost of the enterprises and will make companies export less,Ã¢â¬Â he said.

http://www.thenews.com.pk/daily_detail.asp?id=38425


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## Neo

*China does more to cool economy *

China will introduce more tightening measures this year to help cool its economy without triggering a hard landing, a government think-tank has said. 

The steps are likely to include rises in required reserves and interest rates, the National Development and Reform Commission said in a report published on Tuesday. 

"Strengthening management of liquidity conditions will be a main economic task in 2007," the State Information Centre said. 

Steps already taken to mop up excess cash in the financial system have had only a limited impact, suggesting the need for more tightening measures in 2007, the report said.

China took its latest aim at flush liquidity conditions on Friday by raising - for the fourth time since June - the amount of cash that lending banks must hold in reserve. 

The move followed two rises in benchmark interest rates last year. 

*Investment boom*

Both steps are part of a long-running campaign to quell the source of a credit-fuelled investment boom which has raised fears of a boom-bust scenario. 

The authorities will also focus on trying to improve its international balance of payments position through management of the yuan, the think-tank said. 

Some of China's trading partners have long said the yuan is undervalued, thus giving Chinese exporters an unfair advantage in global markets and fuelling global imbalances. 

China has allowed the yuan to appreciate by a further 3.87 per cent since revaluing the currency by 2.1 per cent in July 2005 and abandoning a dollar peg in favour of a managed float. 

Some trading partners say the changes are meagre. 

*Corruption*

Critics are also concerned about the level of corruption in China. The Beijing News reported on Tuesday that Chinese auditors found the government squandered 33.1bn yuan ($4.24bn) last year, despite repeated Communist party campaigns to rein in corruption and waste. 

The annual investigation was held by Li Jinhua, head of China's National Audit Office, who said he would also be keeping a close eye on Olympic construction sites and other major infrastructure projects. 

The audit office would "investigate and prosecute according to law if any bribery is discovered", the official Xinhua news agency quoted Li as saying. 

Li's report found government officials were responsible for economic losses of 5 billion yuan due to "illegal or irregular administration" last year.

http://english.aljazeera.net/NR/exeres/9D57B4B3-3EA3-41E0-A8EF-03280E5CADAE.htm


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## Neo

* China exports 32bn computer chips *

BEIJING: China exported 86 million colour televisions, 692 million watches and a staggering 32 billion computer chips last year, government figures showed on Thursday.

The workshop of the world also sent 10.3 million motorcycles and mopeds abroad as well as 56 million bicycles and 282,000 tonnes of artificial flowers.

A breakdown of the countryÃ¢â¬â¢s 2006 exports released by the customs administration showed that China increased garment exports by 29 per cent to $95.2 billion in 2006 despite import caps imposed by the United States and the European Union. Clothing made up almost 10 per cent of ChinaÃ¢â¬â¢s total exports of $969 billion, up 27.2 per cent from 2005.

Textile yarn and fabrics fetched a further $48.8 billion, up 19 per cent, and footwear $21.8 billion, a rise of 14.5 per cent.

Higher up the value chain, shipments of data processing machines and parts rose 21.9 per cent to $93 billion.

Those 32 billion microchips brought in $20.3 billion, 47.5 per cent more than in 2005.

Underscoring the rapidity of ChinaÃ¢â¬â¢s emergence as a major exporting power, something that is spreading alarm in rich countries, exports of steel products doubled to $26.2 billion.

http://www.thenews.com.pk/daily_detail.asp?id=38546

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## Neo

*China auto sales up *

SHANGHAI: China sold 7.22 million auto units last year, up 25.13 per cent from 2005, amid fierce competition for a slice of the action in the worldÃ¢â¬â¢s third largest market, a state press report said Thursday.

After another stellar year, ChinaÃ¢â¬â¢s automakers produced 7.28 million vehicles in 2006, up 27.32 per cent from 2005, the Xinhua news agency said citing the quasi-official China Association of Automobile Manufacturers.

Sales of passenger cars increased 30.03 per cent to 5.18 million while production surged up 32.76 per cent to 5.23 million.

Sales of commercial vehicles rose 14.23 per cent to 2.04 million and output up 15.25 per cent to 2.05 million.

The top 10 automakers produced about 83.9 per cent of all auto sales.

Among them, Shanghai Automotive Industry Corp (SAIC), First Automobile Works (FAW) and Dong Feng Motor Corp (DFMC) sold 1.22 million, 1.17 million and 932,300 vehicles respectively as the three top retail sellers.

Nearly all the vehicles these companies sell are made under their foreign venture partnersÃ¢â¬â¢ name, such as Volkswagen, Ford or General Motors.

http://www.thenews.com.pk/daily_detail.asp?id=38548

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## Neo

Sunday, January 14, 2007 

*China end-Nov forex reserves at $1.04t: PBOC*

BEIJING: ChinaÃ¢â¬â¢s foreign exchange reserves hit $1.0387 trillion at the end of November, according to a paper by two researchers at the PeopleÃ¢â¬â¢s Bank of China that warned of difficulty managing further capital flows into the country. 

ChinaÃ¢â¬â¢s trade surplus will remain huge in 2007 but its growth could slow, the deputy head of PBOCÃ¢â¬â¢s research department, Jiao Jinpu, and Liu Xiangyun, of the departmentÃ¢â¬â¢s monetary policy division, said in the paper. 

Ã¢â¬ÅThe continous depreciation of the US dollar in recent times may trigger massive foreign investments into China, which means the central bank will continue to face difficulty in controlling liquidity in 2007,Ã¢â¬Â Jiao and Liu said in the paper, presented to a conference on ChinaÃ¢â¬â¢s capital markets. Inflation may pick up in 2007 due to price increases in food and grains prices, the paper said, without elaborating. 

ChinaÃ¢â¬â¢s stockpile of forex reserves, the worldÃ¢â¬â¢s largest, stood at $1.0096 trillion at the end of October, according to domestic media reports.

http://www.dailytimes.com.pk/default.asp?page=2007\01\14\story_14-1-2007_pg5_25

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## Neo

*China should reduce growth: ADB *

CEBU, Philippines: China needs to reduce growth by half a per cent this year to cool down its overheating economy, the president of the Asian Development Bank said on Saturday. 

With growth expected to be around 9.5 per cent this year, Haruhiko Kuroda said China Ã¢â¬Åmay still need to bring its growth down by another half per centÃ¢â¬Â. 

Ã¢â¬ÅA number of sectors of the economy are overheating and the government is adjusting policies to slow overheating in these areas,Ã¢â¬Â he said. 

Ã¢â¬ÅEven with 9.5 per cent growth this year I think China can bring it down by another half a per cent,Ã¢â¬Â he told reporters. China has been the locomotive driving much of AsiaÃ¢â¬â¢s growth over the past decade.

In the five years to 2005, its trade with members of the Association of Southeast Asian Nations (ASEAN) tripled to a total of 113 billion dollars one tenth of all global trade. 

Kuroda, speaking on the sidelines of ASEANÃ¢â¬â¢s summit, said he expected the Chinese yuan to remain strong in 2007. Ã¢â¬ÅWith strong economic growth coupled with a rising surplus the currency should remain strong,Ã¢â¬Â he said. China is one of the six ASEAN dialogue partners, along with Australia, Japan, India, New Zealand and South Korea. 

The Manila-based ADBÃ¢â¬â¢s forecast of 9.5 per cent growth for China this year is slightly lower than the 10.4 per cent predicted for 2006.

http://www.thenews.com.pk/arc_news.asp?id=3


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## Neo

*Yuan hits record high *

SHANGHAI: ChinaÃ¢â¬â¢s currency, the yuan, hit a record post-revaluation high on Wednesday, one day after the government said reducing the countryÃ¢â¬â¢s trade surplus was a key priority for 2007.

In exchange-based trade, the yuan closed at 7.7750, dealers said, its highest point since China revalued the currency in July 2005. The yuan had closed on Tuesday at 7.7890.

The central bank, which sets a daily value around which the yuan is allowed to trade, set it at 7.7798 to the dollar Wednesday, compared with 7.7895 the previous trading day.

The gains followed comments from Commerce Minister Bo Xilai that highlighted the urgency of cooling ChinaÃ¢â¬â¢s relentless export machine amid growing tensions over its ballooning trade surplus with key trading partners.

Ã¢â¬ÅCutting the huge trade surplus is the priority task for 2007,Ã¢â¬Â Bo was quoted as saying in state press reports.

Ã¢â¬ÅThe yawning surplus with the United States and the European Union has strained ChinaÃ¢â¬â¢s foreign trade environment, triggering more frequent trade friction.Ã¢â¬Â

The US and EU have both pressured China to address the trade imbalance by allowing a stronger yuan, which makes Chinese exports more expensive to buy.

A separate report by the ministry this week said it expected the yuan to rise four to five per cent against the dollar this year, while underscoring the wisdom of a slow and independent approach.

However, the report was removed from the ministryÃ¢â¬â¢s website Wednesday after media cited it as a sign that Beijing intended to allow the yuan to appreciate at a faster rate this year.

Mei Xinyu, one of the researchers who helped produce the report, said the views expressed in it were strictly personal opinions and did not represent the ministryÃ¢â¬â¢s official position.

Ã¢â¬ÅThere really has been somewhat of a misinterpretation by the market,Ã¢â¬Â Mei told. 

Ã¢â¬ÅIt definitely did not mean, nor would it be very possible, that the leadership would be trying to hint at something.Ã¢â¬Â

The Chinese currency broke the psychological 7.8 barrier last week after China announced a record trade surplus of 177 billion dollars, an increase of 74 per cent over 2005.

It also came after Beijing gave the green light to mainland lenders to sell yuan-denominated bonds in Hong Kong.

http://www.thenews.com.pk/daily_detail.asp?id=39274


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## Neo

*China's trade surplus *

EDITORIAL (January 15 2007): China's trade surplus is growing, raising concerns about the propriety of its trade policy and the possibility of retaliatory measures from the rest of the world. Citing the customs bureau, the Xinhua news agency reported on 10th January that China's trade surplus during 2006 soared by 74 percent to hit a record $177.47 billion from its previous high level of $101.9 billion in 2005.

The steep rise during the recent years could be gauged from the fact that it has sky-rocketed more than fivefold from $31.98 billion in 2004. The trade surplus for December, 2006 alone was as high as $21 billion. Evidently, the increase in surplus was due to a faster growth in exports than imports. While Chinese exports rose by 27.2 percent to $969.08 billion, imports grew by 20 percent to $791.61 billion during 2006.

Most analysts believe that Chinese trade surplus would continue to grow during 2007 though the rate of increase could be slower due to a sharp increase in energy and resources costs, along with policies that will force the companies to be kinder to the environment. These factors would increase the cost of the production and reduce exports to a certain extent. Nonetheless, the trade surplus would continue to be huge in the coming years.

The extent of surplus has been a major concern for China's major trading partners, particularly the United States. China's trade surplus with the United States stood at $116.2 billion in the first 10 months of 2006, up 25.2 percent over the same period of 2005. China's critics say that yuan is being kept drastically undervalued, giving Chinese exporters an unfair advantage by being able to sell their products in overseas markets more cheaply.

For their part, Chinese officials insist that Washington is partly to blame due to U.S. restrictions on exports of high-tech and security-sensitive goods, besides its failure to boost low U.S. savings rate. Whatever the arguments on both sides, while China's trade surplus continues to grow, U.S. trade deficit does not show any sign of receding. For the first 11 months of 2006, the overall U.S. trade deficit stood at $701.6 billion despite falling oil prices compared with $652.5 billion for the same period of 2005 and appears well on course to surpass last year's annual record of $717 billion.

The yawning gap between exports and imports of China's major trading partners of the world is definitely a cause of concern and evoking howls of protests from the deficit countries, especially the United States. If the trend continues, it could threaten the world trading order and undermine the international monetary system.

Obviously, the deficit countries would be tempted to adopt protectionist policies and the world trade would shrink, hurting the global growth prospects. The developing countries would particularly be hit hard because of lower exports to the developed countries. Clearly, such unwholesome prospects need to be avoided at all costs with the right mix of policies.

The primary responsibility of restoring a reasonable balance in the world trade lies with both China and the United States which are experiencing the highest trade imbalances. China needs to encourage domestic consumption and imports through a host of policies, particularly an upward adjustment in its exchange rate.

At present Chinese currency is managed against an undisclosed basket of currencies and allowed to move only by 0.3 percent each day. Although it has gained by 3.2 percent against the U.S. dollar in 2006, this appreciation has not made any impact on the trade balance. Some analysts believe that the Chinese currency is undervalued by as much as 30 percent. This may be an exaggeration, but there is no doubt about the inappropriateness of the present exchange rate to bring a balance in China's external accounts.

The U.S. also needs to understand that there is a limit to profligacy. So far it has been able to finance its deficit because the U.S. dollar is a reserve currency and other countries are prepared to hold US treasury bills and other dollar-denominated financial assets. Seen closely, both U.S. and China have a big stake in maintaining an orderly world trade regime, which can only be ensured through a proper understanding, requiring a shift in strategies. While China needs to adopt an appropriate exchange rate, the U.S. must curtail its domestic consumption which is presently being financed by sucking in foreign savings.

It needs to be realised that all the major world trading nations are sailing in the same boat and only mutual cooperation could guarantee a prosperous future. The need for this is all the more acute because the Doha round of world trade talks is now almost stalled and regional trading groups are increasingly being advocated. If all parameters are allowed to drift in the wrong direction, the future of economic globalisation and integration of the world economy would obviously be at stake.

http://www.brecorder.com/index.php?id=517425&currPageNo=1&query=&search=&term=&supDate=


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## Neo

January 21, 2007 

*China announces economic reforms*

BEIJING, Jan 20: China announced a number of key economic reforms on Saturday after closing a high-level conference on improving the management of its increasingly complex financial sector.

The two-day, closed-door meeting of top policy-makers chaired by Premier Wen Jiabao Ã¢â¬Åformulated plans crucial to the country's financial system over the coming few years,Ã¢â¬Â said the official Xinhua news agency.

Wen announced plans to speed up the growth of the bond market by expanding the size of corporate bonds, Xinhua said.

He also said China would steadily push forward foreign exchange rates reform and expand the use of foreign exchange reserves.

The China Development Bank, one of the country's three policy banks, will Ã¢â¬Åtake the lead in starting commercial operationsÃ¢â¬Â, Xinhua said.

It was also announced that shareholding reform will be launched at the Agricultural Bank of China, the last of the 'big four' state-owned banks to move towards market listing.

The meeting is only the third of its kind since 1997, when former premier Zhu Rongji convened what was then an emergency meeting in response to the spiralling Asian financial crisis of that year.

At the last conference in 2002, policymakers set in motion the reform of China's currency regime as well as the decision to overhaul China's debt-strapped state banks in preparation for the opening of the sector to foreign competition last year.

Ã¢â¬ÅThis meeting is very significant,Ã¢â¬Â She Dinghuai, finance professor of Beijing University, said earlier.

It's very likely that very important measures on China's financial reforms will come out after the meeting and they will become the reference point for changes in the following years. China's financial system today is a mixture of archaic state-planning and newly introduced market mechanisms, which has made the management of the world's fourth largest economy an increasingly complex affair.

Some of the major and most controversial challenges lie in the ongoing overhaul of China's securities markets.

http://www.dawn.com/2007/01/21/ebr26.htm


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## Neo

*China aluminium products exports soar to 74pc *

BEIJING: ChinaÃ¢â¬â¢s exports of aluminium products jumped 74 per cent in 2006, partly replacing more heavily taxed primary metal exports in a trend that is likely to continue as domestic capacity expands.

Last year, China exported 1.24 million tonnes of aluminium products, such as billets and window frames, an increase of 74 per cent, customs data showed on Thursday. ChinaÃ¢â¬â¢s products imports rose 6 per cent to 686,124 tonnes.

Ã¢â¬ÅIn 2007, thereÃ¢â¬â¢s no way exports will be lower. London prices are already pretty close to Shanghai, and the LME is rising while Shanghai isnÃ¢â¬â¢t. A little more, and weÃ¢â¬â¢ll see aluminium flowing out,Ã¢â¬Â said a Shanghai-based analyst.

Meanwhile, primary aluminium exports dropped by 26 per cent, to 838,286 tonnes in 2006, as tax changes curtailed shipments.

Primary aluminium imports also fell, by 32 per cent, to 289,855 tonnes.

Apparent primary aluminium consumption calculated by Reuters using import and export data, domestic production and stock changes on the Shanghai Futures Exchange, rose 24.2 per cent.

At the same time, ChinaÃ¢â¬â¢s economy grew at 10.7 per cent in 2006, its fastest pace in eleven years, while industrial output rose 16.6 per cent.

Improved profits are motivating smelters to restart capacity and further growth in ChinaÃ¢â¬â¢s primary aluminium output and products exports is expected in 2007.

The shift to exporting products has been motivated by tax changes that made it less attractive to export primary aluminium, as the central government sought to discourage smelters from expanding.

ChinaÃ¢â¬â¢s planners are trying to limit energy and resource use by polluting industries, including aluminium smelting.

Nonetheless, ChinaÃ¢â¬â¢s primary aluminium output rose 20 per cent in 2006, to 9.12 million tonnes

ChinaÃ¢â¬â¢s aluminium smelting capacity is estimated at 11.5 million tonnes at the end of 2006, analysts told Reuters, up from official estimates of 10.3 million tonnes at the end of 2005.

Some analysts estimate capacity could increase by another 3 million to 3.5 million tonnes in 2007, as smelters, including Huomei-Hongjun or HMHJ Aluminium and Electricity Co, add capacity.

ChinaÃ¢â¬â¢s top economic planner, the National Development and Reform Commission, said earlier in January expected smelting capacity to exceed demand by 1 million tonnes in 2007.

SmeltersÃ¢â¬â¢ margins improved in the second half of 2006, thanks in part to cheap alumina prices, which have halved since early 2006 as ChinaÃ¢â¬â¢s alumina output rose 54 per cent to 13.24 million tonnes.

Plenty of domestic alumina reduced the need for imports, which fell 1.5 per cent to 6.9 million tonnes in 2006. December alumina imports fell 5.6 per cent to 544,623 tonnes.

http://www.thenews.com.pk/daily_detail.asp?id=40396


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## Neo

*China to meet target for grains *

BEIJING: China will re-double efforts to meet its self-sufficiency target for grains, agriculture officials said on Thursday, despite growing doubt over the countryÃ¢â¬â¢s ability to produce 95 per cent of the grains it needs through the end of this decade.

The Ministry of Agriculture targets grains output of 500 million tonnes by 2010, while raising yields by an average 1 per cent a year, chief economist Xue Liang said at the ministryÃ¢â¬â¢s first monthly press briefing.

ChinaÃ¢â¬â¢s grains consumption is likely to exceed demand by 9 per cent by 2010, ChinaÃ¢â¬â¢s state-owned Xinhua news agency said on Wednesday, citing a report by a paper affiliated with the top levels of the Communist Party.

Ã¢â¬ÅWe need to pay even more attention to meeting the self-sufficiency goal. This is really the key point,Ã¢â¬Â Wang Shoucong, deputy director of the ministryÃ¢â¬â¢s department of crop production, told reporters after the news conference.

ChinaÃ¢â¬â¢s ability to grow more grain is limited by shrinking arable land and a growing shortage of water to feed thirsty crops, officials acknowledged.

But planners worry that abandoning the self-sufficiency goal could drive up world prices, if China enters international markets to buy in bulk.

China produced over 490 tonnes of grain in 2006, its third straight year of bumper harvests, thanks in part to minimum prices and other financial incentives to encourage farmers to keep planting grain.

Nonetheless, grains prices rose sharply at the end of the year, feeding into headline inflation figures, after a glitch delayed wheat sales from state reserves and as a 40 per cent rise in corn processing industry capacity.

http://www.thenews.com.pk/daily_detail.asp?id=40401


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## Neo

*Dell to buy $18bn goods from China *

BEIJING: Dell Inc, the worldÃ¢â¬â¢s second-largest personal computer maker, plans to buy at least 140 billion yuan (about $18 billion) worth of goods from Chinese suppliers in the coming year, its CEO said on Friday.

The company bought $17.9 billion of components from Chinese suppliers in 2006, a 14 per cent increase from the $15.7 billion purchased in 2005, the company said.

Ã¢â¬ÅWe anticipate in the coming year our work with those suppliers will allow Dell to procure about 140 billion yuan, or about $18 billion, worth of goods from China,Ã¢â¬Â Kevin Rollins, chief executive officer, said at a panel discussion in Beijing.

A company official later told Reuters the figure was a conservative estimate for 2007, and the actual level of purchases in China is Ã¢â¬Åcertain to be higher than thatÃ¢â¬Â.

Suppliers such as Witel Information and Technology Co have benefited from DellÃ¢â¬â¢s purchasing activities in China.

Dell beat analystsÃ¢â¬â¢ estimates for fiscal third quarter earnings as it sold more laptops and increased sales in China and Europe.

Ã¢â¬ÅWe are the third-largest and fastest-growing computer systems company in China,Ã¢â¬Â said Rollins, who did not provide any details.

http://www.thenews.com.pk/daily_detail.asp?id=40536


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## Neo

*Cartier fixes eyes on China *

SHANGHAI: Cartier, the worldÃ¢â¬â¢s largest luxury jeweller, anticipates strong demand from ChinaÃ¢â¬â¢s growing elite and expects to open up to 10 jewellery boutiques in mainland China by next year, a senior executive said.

Cartier, the core company within Swiss-based luxury goods group Richemont, hopes to own 22 to 24 boutiques in the country by 2008, versus 14 now, Cartier Greater China Managing Director Nigel Luk told Reuters.

Ã¢â¬ÅWeÃ¢â¬â¢re expanding very fast, the pace is galloping,Ã¢â¬Â Luk said on the sidelines of a Cartier jewellery viewing ceremony in Shanghai late on Friday.

The rise of the super-rich in China, where the 500 wealthiest on the Hurun Report Rich List control $138 billion in assets, is boosting CartierÃ¢â¬â¢s sales in the country, which Luk expects to continue to grow by Ã¢â¬Åhigh double-digits every yearÃ¢â¬Â.

RichemontÃ¢â¬â¢s total sales in China and Hong Kong jumped by 25 per cent to 276 million euros ($356 million) in the first half of the fiscal year ended Sept. 30, 2006, from a year earlier, and accounted for 12 per cent of the group total.

Prices for CartierÃ¢â¬â¢s jewellery in China go as high as 22 million yuan ($2.83 million) the price tag on a pearl necklace that recently went up for sale in the country, Luk said. Cartier, which competes in China with LVMH Moet Hennessy Louis Vuitton, the worldÃ¢â¬â¢s largest luxury goods group, opened its first boutique in the country in 1997.

ChinaÃ¢â¬â¢s market for luxury goods excluding private jets and top-end yachts was worth $6 billion in 2004, making the Chinese the worldÃ¢â¬â¢s third-largest consumers of luxury goods, according to Goldman Sachs. 

http://www.thenews.com.pk/daily_detail.asp?id=40672


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## Neo

Sunday, January 28, 2007 

*Clean your own house first, China tells reform critics*

DAVOS: China wants the rest of the world to respect its gradual pace of economic reform, a senior Beijing central banker said on Saturday, advising critics to Ã¢â¬Åclean your own house firstÃ¢â¬Â. 

Wu Xiaoling, deputy governor of the PeopleÃ¢â¬â¢s Bank of China, avoided naming names, but handed out the advice only a few weeks after top US financial policymakers visited Beijing to press China to act faster on liberalising the yuan currency. 

Ã¢â¬ÅThere is a Chinese saying that you should put yourself in othersÃ¢â¬â¢ shoes. You need to respect others,Ã¢â¬Â she said at the World Economic Forum in Davos. Ã¢â¬ÅWe respect other peopleÃ¢â¬â¢s policies. The Chinese say, clean your own house first.Ã¢â¬Â Ã¢â¬ÅWe should be very careful how we proceed, and I compare it to walking on ice,Ã¢â¬Â she added. 

US Treasury Secretary Henry Paulson, after meeting President Hu Jintao and Prime Minister Wen Jiabao last month, said ChinaÃ¢â¬â¢s reluctance to let its currency appreciate remained a core bilateral issue. 

US lawmakers say the yuan is unfairly undervalued, undermining competitiveness of American firms and contributing to a soaring US trade deficit. 

Wu said: Ã¢â¬ÅWe have more work to do especially in the development of the financial system. The renminbi (yuan) will more and more reflect market forces, but we will not have dramatic change in the short term.Ã¢â¬Â 

Beijing revalued the yuan in July 2005 and since then it has let the currency rise gradually. On Thursday the yuan, which is also called the renminbi, was set at its highest mid-point since the revaluation.

ChinaÃ¢â¬â¢s economy, which grew at its fastest rate in more than a decade in 2006, has been the focus of the Davos gathering. Beijing has implemented a series of curbs to keep the expansion in check, but the worldÃ¢â¬â¢s fourth largest economy has still achieved double-digit growth in each of the past four years. 

Yuan appreciation: Washington says the yuan needs to rise faster to ease global economic imbalances where Asia runs a large current account surplus and the United States absorbs roughly 70 percent of excess global savings and to prevent a sudden and disorderly correction. 

Ã¢â¬ÅWe would like to see exchange rate flexibility in emerging economies especially with large current account surpluses such as China,Ã¢â¬Â US Deputy Treasury Secretary Robert Kimmitt also said at the Forum on Saturday. 

Earlier in the week in Davos, Asian Development Bank President Haruhiko Kuroda said China needs to steer its economy to a soft landing and he expected the yuan to rise further. 

Ã¢â¬ÅSome sectors of the economy are overheating like property. The task for China is to steer a soft landing gradually,Ã¢â¬Â Kuroda said. Ã¢â¬ÅThe yuan will rise further. The rate of appreciation is already accelerating.Ã¢â¬Â 

Angel Gurria, head of Organisation for Economic Cooperation and Development, said the absence of a sharp fall in the dollar against the yuan is straining the euro. 

Ã¢â¬ÅThe dollar should weaken considerably against the renminbi but itÃ¢â¬â¢s not happening. This is the process, which is not helping because all the adjustment is done on the euro. This is not good. There is no normal functioning of the market as we understand it,Ã¢â¬Â he said. 

Ã¢â¬ÅIf you have a rules-based system in the world, everybody should play by the same rules. One of the largest players is not playing by the rules. ThatÃ¢â¬â¢s why the system is not producing the right results. I would like to see the adjustment is also made against the Chinese currency.Ã¢â¬Â 

Asked about currencies, European Central Bank President Jean-Claude Trichet said only that he would stick to the last statement made by the Group of Seven industrialised nations. 

The G7 has called on China to move towards a flexible exchange rate system and said excessive volatility and disorderly moves in currencies are unwelcome. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\01\28\story_28-1-2007_pg5_25


----------



## Neo

*China must focus on consumption, not exports: IMF *

TOKYO: An International Monetary Fund official called on China to shift its focus to stimulating domestic demand on Monday, in part by providing more social welfare, in order to cut its reliance on exports. 

The Chinese banking system has poured money into heavy industrial investment but shied away from lending to small- and medium-size businesses, said Steven Dunaway, deputy director of the IMF Asia and Pacific Department. 

Ã¢â¬ÅWith the population of 1.3 billion people, China has a huge domestic market. It does not need to rely on exports for economic growth,Ã¢â¬Â he told a symposium in Tokyo. Rapidly growing fixed asset investment has driven the Chinese economy in recent years but the money may have been more efficient going to other areas such as social welfare and education, he argued. 

Ã¢â¬ÅYou have very heavy investment in very capital-intensive industries in a country that has a tremendous amount of surplus labour,Ã¢â¬Â Dunaway said. Calling on China to make structural changes while its economy is strong, Dunaway said that improved public education, healthcare and pension systems should ensure sustained growth. 

Ã¢â¬ÅThis will do a lot in terms of boosting consumption,Ã¢â¬Â by increasing household disposable incomes, he said, adding that China has been reluctant to do so as it lacked a comprehensive plan for public welfare and education. 

Soaring investment has also caused overcapacity and the lowering of prices of finished goods, he said. Ã¢â¬ÅBanks still have a tendency to lend primarily toward state-owned enterprises and heavy industries so a lot of funding is flowing to very capital-intensive industries and a very little money goes to small-, medium-sized enterprises,Ã¢â¬Â he said. Individual Chinese have high levels of savings but most only have the option to put their money into bank deposits, he said. 

Ã¢â¬ÅBanks have heavy responsibility in terms of being able to channel those funds. They have not done a very good job of it as illustrated by very large non-performing loans that have been in the banking system,Ã¢â¬Â he said. 

http://www.thenews.com.pk/daily_detail.asp?id=40894


----------



## Neo

*China wants slower economy *

BEIJING: The Chinese economy grew too quickly in 2006 and the government wants the rate to slow this year, a senior economic planning official said on Monday. Ã¢â¬ÅEconomic development is moving in the expected direction but economic growth in 2006 was a bit too high and we want it to slow to a reasonable growth rate (this year),Ã¢â¬Â Han Yongwen, secretary-general of the National Development and Reform Commission, told a press conference. 

http://www.thenews.com.pk/daily_detail.asp?id=40898


----------



## Janbaz

*China to spend billions on technology programmes *

BEIJING: China plans to spend 30 billion yuan ($3.85 billion; euro2.96 billion) over the next five years on developments including high-speed trains, wind power stations and sea water desalination technology. 

About 7.35 billion yuan ($942 million; euro724 million) has already been allocated from the central budget, with the remaining money coming from companies, local governments and institutes, the Ministry of Science and Technology said on its Web site late on Friday. 

Even though China&#8217;s economy has grown by nearly 10 per cent a year for the past several decades, it is still highly dependent on imported technology with relatively little domestic innovation. 

The ministry said there would be 147 science programs, including 50 high-profile projects involving 2-3 megawatt wind power stations, magnetically levitated trains running at 500 kilometers an hour (310 miles per hour) and desalination equipment. 

"These programs will try to solve critical science and technology problems that are hampering China&#8217;s economic and social development," Wang Xiaofang, director of the ministry&#8217;s planning bureau, said on the Web site. 

He said the programs were designed to enhance China&#8217;s competitiveness in key industries and to enable Chinese companies to develop their own technology.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=42332


----------



## Neo

*China eyes policy tools to prevent overheating *

ESSEN, Germany: ChinaÃ¢â¬â¢s central bank governor Zhou Xiaochuan said on Friday a variety of policy tools would be used to prevent economic overheating with growth surging and inflation on the rise. 

Ã¢â¬ÅMonetary deposits, exchange rates and interest rate policy, all of these are necessary for economic adjustments,Ã¢â¬Â Zhou said on the sidelines of a meeting of the Group of Seven industrial countries, which China was also invited to attend. 

ChinaÃ¢â¬â¢s economy, the worldÃ¢â¬â¢s fourth largest, grew by 10.7 per cent in 2006, its fastest in more than a decade, as investments and exports powered ahead despite a series of government curbs to check the pace of expansion. 

But Zhou did not specify a growth target when asked if China was aiming for a more moderate GDP rise this year of 8 per cent, a level the PeopleÃ¢â¬â¢s Bank of China stated as a policy goal in its fourth-quarter monetary report issued earlier on Friday. 

Ã¢â¬ÅWe hope to slow down but whether we can get to 8 per cent, I am not certain,Ã¢â¬Â he said. Eight per cent is seen by analysts as the minimum expansion needed to create enough jobs for ChinaÃ¢â¬â¢s huge labour pool without causing overheating. 

The central bank is also carefully monitoring consumer prices, which rose sharply in December, though it is not overly worried by inflation, he said. 

Ã¢â¬ÅItÃ¢â¬â¢s still not very significant. There might be some seasonal reasons, so we are going to follow statistical data developments very closely,Ã¢â¬Â he said. 

ChinaÃ¢â¬â¢s inflation jumped to an annual rate of 2.8 per cent in December, the most in almost two years and much higher than market expectations. 

This has fuelled belief that the central bank may take tightening steps, potentially including faster yuan appreciation. Zhou, asked whether the yuan had been rising too quickly in recent weeks, said he was generally satisfied with the currencyÃ¢â¬â¢s appreciation. 

Ã¢â¬ÅAccording to our plans and our economic ability, we are increasing our yuan exchange rate flexibility, and I think this is now suitable,Ã¢â¬Â he said. China abandoned a decade-old dollar peg in July 2005. 

The yuan, also known as the renminbi, has gained almost 5 per cent against the dollar on top of the 2.1 per cent revaluation that accompanied the de-pegging. 

China is under heavy pressure from the United States to do more. Washington and Europe believe the yuan is undervalued, giving China an unfair trade advantage. Chinese officials, however, say the economy needs more time to develop its market mechanisms before the currency can trade freely. 

Zhou said he had met briefly with US Treasury Secretary Henry Paulson on Friday at the G7 meeting and would continue discussions later in the evening.

http://www.thenews.com.pk/daily_detail.asp?id=42327


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## HASEEB66

with such a huge boom trade surplusand strong economy it will not be any problem for china to import fromm pakistan smething it is willing to do now....ith chinese labour getting expensive their most favourable destination is pakistan and especially gwadar...despit china huge exprt to india of computer chips the chinese have natural and deep happiness of working in pakistan with pakistani businessmen..Mashallah


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## HASEEB66

dont forget there are 300 million plus muslims in china MORE THAN 30&#37; of chinese poppulation Mahallah


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## Neo

HASEEB66 said:


> dont forget there are 300 million plus muslims in china MORE THAN 30% of chinese poppulation Mahallah



Dude!
Where did you get this info from?
Chinese muslim population is believed to be arround 30 million!


----------



## Neo

*China trade surplus soars 67 per cent *

BEIJING: ChinaÃ¢â¬â¢s trade surplus broke new records in January with official data on Monday showing a 67 per cent rise from a year ago, giving more fuel to critics calling for a stronger yuan.

The announcement of the January surplus of 15.88 billion dollars, with figures released by the customs bureau, came shortly after a call over the weekend by Group of Seven finance chiefs for China to allow greater flexibility in its currency regime.

ChinaÃ¢â¬â¢s biggest trading partners argue an artificially weak yuan gives Chinese exporters an unfair advantage, and MondayÃ¢â¬â¢s data showed exports rose 33 per cent year-on-year to $86.62 billion.

Imports, meanwhile, reached $70.74 billion, up 27.5 per cent. Ã¢â¬ÅExcess volatility and disorderly movements in exchange rates are undesirable for economic growth,Ã¢â¬Â G7 finance ministers and central bankers said at the close of their two-day meeting in Germany.

Ã¢â¬ÅIn emerging markets with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments will occur.Ã¢â¬Â Although the surplus in January fell 24 per cent from December, analysts said the month-on-month drop should largely be ignored because the figures were traditionally lower at the start of the year.

More importantly, the surplus was 67.3 per cent higher than the 9.49 billion dollars in January last year. Qian Wang, an economist with J P Morgan Chase Bank based in Hong Kong, said she expected the monthly surplus to average $20 billion in 2007, putting it well above the record annual figure of $177 billion last year.

The 2006 record prompted Commerce Minister Bo Xilai to warn last month that ChinaÃ¢â¬â¢s mounting surpluses were becoming more of a problem in relations with its major economic partners. Bo stressed that China had to take new steps to rein in exports or face a trade surplus of about $300 billion, a level that would almost certainly trigger angry protectionist measures and tougher action to ensure a stronger yuan in Washington and Brussels.

The G7 statement was the latest in a barrage of calls for China to allow a sharp appreciation of its currency, demands the Chinese have so far largely ignored. China has instead allowed the yuan to rise by just over six per cent from July 2005 when it was de-linked from its 8.28 yuan peg to the US dollar.

However, China has acknowledged that a large trade surplus is not necessarily good for its own sustained economic growth and plans are afoot to abolish some favourable tax policies for exporters.

The government also intends to reduce exports of high-energy-consuming and low-value-added goods through other non-tax measures. Separately, analysts said the surplus rise in January compared with the same period a year ago was partly due to seasonal factors involving the Chinese Lunar New Year, which in 2007 falls in the month of February instead of January.

Ã¢â¬ÅThe Spring festival this year is in February and thatÃ¢â¬â¢s why both exports and imports have increased year-on-year,Ã¢â¬Â said Sun Mingchun, chief economist at Lehman Brothers based in Hong Kong. The holiday fell in January last year, meaning fewer working days. 

http://www.thenews.com.pk/daily_detail.asp?id=42527


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## Neo

*China Mobile to launch 3G services *

BEIJING: China Mobile, the countryÃ¢â¬â¢s largest mobile network operator, plans to roll out third generation (3G) mobile services before the end of October, state media said on Monday. 

The company is going to invest more than 15 billion yuan (1.9 billion dollars) to build TD-SCDMA networks in 2007, the Beijing-based Economic Observer reported, citing a plan by China Mobile. 

TD-SCDMA, or Time Division-Synchronous Code Division Multiple Access, is a Beijing-backed standard for 3G telecoms services, technology that can transmit images and video at high speeds. 

The company will finish the construction of 8,602 TD-SCDMA base stations in eight cities including Beijing, Shanghai and the southern city of Shenzhen before October this year. 

It will also complete the procurement of core equipment based on this standard before end-May, it said. Repeated delays following promises to grant all 3G platform licenses has sparked speculation that its home-grown standard is not yet up to snuff. 

The government has promised it will issue 3G licenses in time for operations to be launched by the 2008 Olympics in Beijing. 

The newspaper cited analysts as saying that China MobileÃ¢â¬â¢s large-scale commercial deployment for this technology indicates that the government has Ã¢â¬ÅindirectlyÃ¢â¬Â issued the TD-SCDMA license. 

Li Yuan, an analyst with China International Capital Corp, said China Mobile is likely to mainly operate the networks based on the home-grown standard after the roll out of 3G services. 

Citing separate sources, the newspaper said China Telecom and China Netcom are expected to spend one billion yuan each on expanding their own networks using the same standard in two other second-tier cities. 

The standard, which ChinaÃ¢â¬â¢s Datang Mobile Communications Equipment is developing with Siemens AG, is competing with the widely used European-led WCDMA standard and the USÃ¢â¬â¢s CDMA2000. 

http://www.thenews.com.pk/daily_detail.asp?id=42529


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## Neo

*Chinese economic growth to slow slightly to 9.6pc *

BEIJING: ChinaÃ¢â¬â¢s blistering economic growth will cool slightly this year but should still expand nearly 10 per cent, driven by exports and investment, the World Bank said on Wednesday. 

But the countryÃ¢â¬â¢s bulging trade imbalance remains a concern as exports continue to outstrip imports, the bank said in its quarterly report on ChinaÃ¢â¬â¢s economy. 

The World Bank said the economy should grow by 9.6 per cent in 2007, down from last yearÃ¢â¬â¢s 10.7 per cent growth, its highest rate since 1995. Exports are likely to expand by 19.8 per cent in 2007, while imports are projected to grow 17.5 per cent, it said. 

China is under pressure to shift the engine of its economic growth to domestic consumer demand from an over-reliance on exports and investment, which makes the country vulnerable to sudden drop in demand for Chinese goods or a global slowdown. Ã¢â¬ÅChinaÃ¢â¬â¢s internal macro challenges remain manageable, but the external imbalance is on the rise. Thus, policy measures that address domestic concerns could ideally also reduce the external imbalance,Ã¢â¬Â said the Washington-based international lender. 

But the bank said investment would remain strong Ã¢â¬Åwhile boosting consumption will remain challenging, particularly in rural areas.Ã¢â¬Â Ã¢â¬ÅChinaÃ¢â¬â¢s industry, investment and export-based growth model has become problematic because of trade tensions and environmental and resource constraints,Ã¢â¬Â it said. 

Those tensions include a trade surplus _ which hit a record $177.5 billion last year, up 74 per cent from the previous year _ that has strained ties with Washington and other trade partners who say Beijing has not done enough to let its currency appreciate. 

China has allowed the yuan to rise gradually against the dollar since cutting a direct link to the dollar 18 months ago and raising the yuanÃ¢â¬â¢s value 2.1 per cent. Since then, the yuan has appreciated about 4.3 per cent. 

The flood of export revenues is straining BeijingÃ¢â¬â¢s ability to keep inflation in check, although the bank said that in the medium term Ã¢â¬Åa significant surge in inflation seems unlikely.Ã¢â¬Â 

The government raised interest rates twice last year and imposed curbs on real estate, auto manufacturing and other industries to slow a surge in investment, but the report said a risk of rapid investment growth remained.

http://www.thenews.com.pk/daily_detail.asp?id=42848


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## Neo

Thursday, February 15, 2007 

*China set to slow but imbalances loom: World Bank* 

BEIJING: Chinese growth is set for a slowdown that is likely to reassure policy makers, but imbalances plaguing the economy are unlikely to go away, the World Bank said on Wednesday. 

In its latest quarterly update on the economy, the bank kept its projection for 2007 gross domestic product growth unchanged at 9.6 percent, based on expectations that the pace of exports and investment will moderate from recent peaks. The economy expanded by 10.7 percent last year. Despite a concerted government campaign to tilt the economy away from export and investment-led growth, crucial imbalances would persist, the bankÃ¢â¬â¢s Bejing-based economists said. 

Ã¢â¬ÅContinued productivity growth and a resilient world economy promise only a minor export slowdown,Ã¢â¬Â their report said. 

Ã¢â¬ÅDomestically, the fundamental drivers of investment remain, and investment is therefore unlikely to slow drastically in 2007,Ã¢â¬Â it added. China was likely to keep running a big current account surplus, setting the stage for further increases in its stockpile of foreign exchange reserves, which now exceed $1 trillion. China faced other challenges, such as boosting consumption as a driver of growth, but the economic outlook was Ã¢â¬Åbroadly favourableÃ¢â¬Â, the report said. 

Export growth would probably ease to 20 percent, in real terms, this year from 24 percent in 2006. 

To cut its record trade surplus more quickly, China would need among other things to push the yuan higher. Ã¢â¬ÅMuch of the planned reduction in the trade balance will have to come from policies to rebalance the economy, including fiscal and pricing policies and a stronger exchange rate,Ã¢â¬Â the bank said. 

More tightening: Rising incomes would continue to propel solid consumption growth, while policy makers would be less concerned than they were a year ago about a potential rebound in investment growth. Although consumer price inflation had picked up recently, medium-term price pressures remained moderate, the bank said. China said on Wednesday that annual inflation had subsided to 2.2 percent in January after a spike to 2.9 percent in December.

http://www.dailytimes.com.pk/default.asp?page=2007\02\15\story_15-2-2007_pg5_22


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## Janbaz

*Chinese oil companies to set up reserves *

BEIJING: China may ask state-owned energy companies to establish oil reserves as a supplement to a national reserve being set up as the Asian giant struggles to fuel future growth, state media said on Thursday. 

The requirement is expected to be included in a new Energy Law which could be reviewed by the State Council, or Cabinet, by the end of the year, the China Daily reported. &#8220;We are seriously weighing the option of constituting national oil reserves, both at the strategic and commercial level,&#8221; Wu Zhonghu, one of the core law drafters, was quoted as saying. 

Once implemented, the law will see commercial stocks being added to China&#8217;s national strategic oil reserves, which initially are planned at 100 million to 200 million tonnes in four sites. The reserve base in Ningbo in the eastern province of Zhejing has just been put into operation recently and the other three sites in the east and northeast part of the country are due to be completed by 2008, according to previous reports. 

Analysts voiced concerns that corporate reserves for strategic purposes could be a huge burden for private companies who are supposed to be in the business of making money. &#8220;It&#8217;s very costly in terms of working capital and in terms of (price) risk for private companies to hold inventory,&#8221; Tony Nunan, a Tokyo-based oil analyst at Mitsubishi&#8217;s international petroleum business, told AFP. 

In Japan, such rules are placed on private companies because the country is almost 100 per cent dependent on imports, while in the United States companies are not required to do so, he added. &#8220;The funding (for) building up the reserves will eventually come from the government and some how, the people,&#8221; said Victor Shum, a Singapore-based analyst with Pervin and Gertz.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=43011


----------



## Neo

* China's forex reserves *

BEIJING: China has artificially held down the accumulation of foreign currency reserves on the books of the central bank by guiding state-owned banks to buy overseas bonds, investment bank Goldman Sachs says. 

To shield the banks from currency risk at a time of arising yuan, the PeopleÃ¢â¬â¢s Bank of China (PBOC) may have arranged a total of $40-50 billion in currency swaps with Bankof China, China Construction Bank Corp and Industrial and Commercial Bank of China at an implied yuan appreciation rate of 2-3 per cent a year, the bank said. 

GoldmanÃ¢â¬â¢s research is the latest attempt by PBOC-watchers to explain an apparent paradox: given ChinaÃ¢â¬â¢s current account surplus last year of about $230-250 billion and foreign direct investment inflows of $63 billion, why did the PBOCÃ¢â¬â¢s official reserves rise in 2006 by only $247 billion? On the surface, that would point to Ã¢â¬Åhot moneyÃ¢â¬Â capital outflows of about $60 billion despite almost universal expectations that the yuan will keep heading higher. 

Part of the discrepancy might be due to unannounced use of the central bankÃ¢â¬â¢s reserves.

http://www.thenews.com.pk/daily_detail.asp?id=43323


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## Neo

*ChinaÃ¢â¬â¢s GDP to grow 9pc *

BEIJING: ChinaÃ¢â¬â¢s economic growth will slow to around 9 per cent this year, the official Xinhua news agency on Tuesday cited a government think tank researcher as saying.

The economy will continue to expand some 7 to 8 per cent annually in the coming decade, driven by the real estate and automotive sectors, Xinhua quoted Liu Shijin, deputy director of the State CouncilÃ¢â¬â¢s Development Research Centre, as saying.

The economy grew 10.7 per cent in 2006, according to the lastest official estimate. It was due a slowdown as it had maintained a fast growth rate over the past four years, Liu said.

Ã¢â¬ÅThe high growth usually finishes in a cycle of every five years,Ã¢â¬Â he was quoted as saying. The report provided no details.

Liu also warned of excessive liquidity and the possibility of a bubble forming in the stock market and in the property sector.

Last week, another government think tank said ChinaÃ¢â¬â¢s economic growth was set to slow, adding that Beijing should raise interest rates to curb broad money growth while keeping excess liquidity in check.

Annual GDP growth would probably slow to 10.2 per cent in the first quarter and then to 10 per cent in the second, the State Information Centre said.


----------



## Neo

*China becomes net importer of coal *

SHANGHAI: China became a net importer of coal in January for the first time, an official said on Monday, as the globeÃ¢â¬â¢s largest consumer turned overseas to supply its booming economy. 

China imported 4.7 million metric tonnes of coal in January, a rise of 81.1 per cent from a year ago, according to figures from the customs bureau. Coal exports in January fell 20.4 per cent to 3.29 million tonnes, the fourth straight month of year-on-year declines. Increased demand from ChinaÃ¢â¬â¢s energy-hungry economy could pressure international coal prices higher, much in the same way the nation of 1.3 billion people has driven oil prices higher. 

China became a net oil importer more than 10 years ago and its increased demand has been one of the factors behind higher oil prices over the last few years. To blame for the coal shortage were transportation bottlenecks and a change in tax rebate policy, said Hao Xiangbin an official with the Beijing-based China Coal Transport and Distribution Association. 

Ã¢â¬ÅChina is strong in the productivity but lacks the transportation ability. ItÃ¢â¬â¢s difficult to transport the coal from mine sites to the coastal areas,Ã¢â¬Â told AFP. Ã¢â¬ÅThatÃ¢â¬â¢s why the coastal area needs to import from foreign countries,Ã¢â¬Â adding that it was the first time that China has had to import more coal than it exports. 

Also affecting import patters was the cancellation of tax rebates, Hao said. With coal still fuelling around 70 per cent of ChinaÃ¢â¬â¢s electrical generation capacity China had to be more conservative with its resources, warned Hao. Ã¢â¬ÅFrom the long-term perspective China has huge demands for energy, so it had better treasure what it has and stop exporting coal.Ã¢â¬Â 

http://www.thenews.com.pk/daily_detail.asp?id=44614


----------



## Neo

*China wants more housing for poor *

BEIJING: China has pledged to make more housing available for poor families, even as it struggles to control soaring property prices, state media said on Monday. 

Ã¢â¬ÅItÃ¢â¬â¢s the governmentÃ¢â¬â¢s responsibility to solve the basic housing problem of the low-income group,Ã¢â¬Â the China Daily reported, citing unnamed participants at a recent Cabinet meeting on the property market. 

Vice Premier Zeng Peiyan said steps should be taken to build more housing that low-income families can afford, the paper reported. This is official policy all across China, but so far more than one fifth of the nationÃ¢â¬â¢s 657 largest cities have failed to start construction of cheap housing, according to the paper. 

Zeng warned that property prices were rising too fast, regardless of the government efforts, which also include strengthened land appreciation tax collection on developers. Ã¢â¬ÅProperty prices in some cities are still rising too rapidly due to insufficient supply of medium and low-cost housing,Ã¢â¬Â Zeng said, according to the official Xinhua news agency. 

Last month, housing prices in 70 large and medium cities rose 5.6 per cent year on year, with those in Beijing jumping 9.9 per cent, the China Daily said, citing the National Development and Reform Commission. 

http://www.thenews.com.pk/daily_detail.asp?id=44616


----------



## Janbaz

*Wal-Mart expands Chinese business *

Wal-Mart, the world's largest retailer, is expanding its presence in China after agreeing to buy a 35% stake in discount store chain Trust-Mart. 
The terms of the deal, giving Wal-Mart an interest in 100 stores in 34 Chinese cities, were not revealed but analysts have said the business is worth $1bn. 

Should Wal-Mart ultimately buy out the group, it would make it China's largest foreign retailer in terms of stores. 

Foreign sales currently account for about 20% of the firm's turnover. 

Based in Taiwan, Trust-Mart was set up in the mid-1990s and has more than 30,000 staff. 

*Important step' *

Along with other leading global retailers like Carrefour and Tesco, Wal-Mart is looking to build its interests in China's fast-growing retail sector. 

The firm already operates 68 stores there and said last year that it was prepared to hire an extra 150,000 staff in the next five years. 

Wal-Mart said the latest deal was an "important step" for the business. 

"Through this investment in Trust-Mart we have the opportunity to expand our presence in China, one of the world's fastest growing markets," said Michael Duke, Wal-Mart's vice-chairman. 

Wal-Mart said the two companies would, for the time being, operate independently but that if "certain conditions" were met, it could buy out the remainder of the business by 2010. 

Mixed record 

Wal-Mart's efforts to expand outside the US have not proved an unqualified success, raising questions about whether its retail formula can be replicated elsewhere. 

The firm pulled out of Germany and South Korea after struggling in those markets, while its Japanese subsidiary Seiyu has made heavy losses. 

The US firm is currently looking to develop a joint venture business in India, a plan which has sparked protests by small shopkeepers. 

Carrefour is currently the leading foreign retailer in China, with 90 hypermarkets. 

Tesco opened its first own-brand store in China last month, and has interests in another 45 outlets through a joint venture with a domestic retailer. 

China's retail sector was worth nearly $850bn in 2005 and is forecast to grow to more than $2 trillion by 2020. 

BBC News.
http://news.bbc.co.uk/2/hi/business/6399531.stm


----------



## Janbaz

*Chinese yuan rise may quicken if surplus grows*

BEIJING: China may allow the yuan to rise more quickly in 2007 if its trade surplus keeps growing rapidly, central bank governor Zhou Xiaochuan said in remarks published on Tuesday. 

Zhou said in an interview with the Hong Kong Commercial Daily, a mainland-controlled paper that China would let market forces play a big role in deciding the yuan&#8217;s value but its approach would remain gradual. 

The interview was conducted two weeks ago in Hong Kong when Zhou was returning from a meeting of Group of Seven finance ministers and central bank chiefs in Essen, Germany. 

&#8220;If the trade surplus grows, the pace of the yuan&#8217;s appreciation may quicken,&#8221; said Zhou, governor of the People&#8217;s Bank of China. 

China scrapped a decade-old yuan-dollar peg in July 2005, revalued the currency by 2.1 percent and set it free to float within managed bands. It has since gained a further 4.6 percent. However, the yuan is under pressure to rise further as China&#8217;s trade partners, particularly the United States, argue the currency is undervalued in light of China&#8217;s big current and capital account surpluses. Its trade surplus grew 74 percent last year to a record $177.47 billion. Some Chinese researchers, by contrast, believe the US is increasingly using the exchange rate as a lever to force other policy changes. Zhang Yi, from a research outfit under the National Development and Reform Commission, the top planning agency, said Washington was keeping up pressure on the yuan with an eye to making progress on issues such as greater access to the Chinese market. 

&#8220;For the US, whether the yuan rises or not may not matter,&#8221; Zhang said in an opinion piece published in the official China Securities Journal. reuters

Daily Times.
http://www.dailytimes.com.pk/default.asp?page=2007\02\28\story_28-2-2007_pg5_25


----------



## Janbaz

*Wen Jiabao calls for financial stability* 

SHANGHAI: Chinese Premier Wen Jiabao called on Wednesday for stability in the country&#8217;s financial sector, a day after the stock market recorded its biggest fall in a decade.

&#8220;From this period on, the main task for the financial markets is to improve and promote the financial industries healthy development,&#8221; Wen said in comments published by the official Xinhua news agency. 

He said the government wanted &#8220;to promote the safe and steady&#8221; reform of the country&#8217;s financial sector, and that it planned to move its reforms to a &#8220;new stage&#8221; as it developed the country&#8217;s capital markets. Wen, whose comments were from an article in the Communist-backed &#8220;Qiu Shi&#8221; magazine to hit the streets on Thursday, said China planned to deepen reforms of state-owned banks and to further open up the financial industry. 

The remarks came one day after China stock markets fell by nearly nine per cent, in the biggest one day decline in 10 years. 

However, shares prices subsequently recovered, with the key Shanghai Composite Index gaining nearly 4.0 per cent on Wednesday.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=44897


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## Janbaz

*China gets foreign oil incentives *

China says nine countries have offered it financial incentives to invest in oil and gas projects as it continues its global hunt for energy resources. 
Government officials said Kuwait, Qatar, Oman, Morocco, Libya, Niger, Norway, Ecuador and Bolivia would offer China tax breaks and other sweeteners. 

China already has a similar arrangement with 20 other countries. 

China is increasingly dependent on imported oil and gas as it tries to sustain its rapid economic growth. 

Looking abroad 

Beijing has agreed a host of energy deals with other countries in the past year, including Venezuela and Malaysia, and is currently negotiating with Iran over gas imports. 

China has been particular active in Africa, prompting criticism that it is exploiting the continent's resources for its own benefit and setting aside concerns about poverty reduction and human rights abuses. 

Chinese oil companies already have interests in Niger, while Libya is looking for external partners as it opens up its energy sector to foreign investment. 

China imported 47&#37; of its oil supplies last year as its domestic supplies dwindled. New supplies are regarded as vital if the country is to continue its swift economic expansion. 

Separately, a government official said China would continue to rely on domestic coal production for most of its energy needs but was also looking to step up investment in renewable industries. 

Zhao Xiaoping, head of the National Development and Reform Commission's energy bureau, told Money China magazine its goal was to source 10% of energy from renewable sources by 2010. 

Beijing is under pressure to embrace more environmentally-friendly energy supplies to reduce pollution levels across the country and set a lead in the global fight against climate change.

BBC News.
http://news.bbc.co.uk/2/hi/business/6407337.stm


----------



## Janbaz

*China&#8217;s grain production up in 2006* 

SHANGHAI: China increased its grain production 2.8 per cent to 497.46 million tonnes in 2006, but the world&#8217;s most populous nation still faces the prospect of shortages, state press reported on Thursday. 

Production last year was 13.46 million tonnes more than in 2005, as annual grain output in China increased for the third year running, but still short of the country&#8217;s demand, the China Daily said. 

No break down was given on the differing grains. China also includes legumes, such as beans, and oil bearing seeds, as part of its grain statistics. 

China faces the possibility of a 48 million tonne grain shortage in 2010, equal to nearly nine per cent of the country&#8217;s grain consumption, according to a recent study published by the ruling Communist Party&#8217;s central school. 

The nation of 1.3 billion people needs to feed its growing population but its arable land is increasingly being lost to expanding cities and environmental degradation. 

China had 105.38 million hectares of land for grain crops last year, an increase of 1.1 million hectares over the previous year, according to the latest statistics cited by the state news agency Xinhua.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45088


----------



## Janbaz

*Westinghouse to supply China four reactors *

BEIJING (March 02 2007): China's leading nuclear power company signed a contract on Thursday with US-based Westinghouse to supply four nuclear reactors to the power-hungry nation, state press said.

The contract with the China State Nuclear Power Technology Company calls for two third-generation pressurised water reactors for Shandong province and another two for Zhejiang province, Xinhua news agency said.

No other details were made available. But the pact appeared to alter a December agreement that called for Westinghouse to deliver two reactors to Guangdong province-and to confirm news reports that France's Aveva was in the running for the Guangdong project.

The deal with Westinghouse, which is owned by Japan's Toshiba, was reportedly worth several billion dollars. China is aiming to construct more than 30 nuclear reactors over the next 15 years, officials have said.

Business Recorer.
http://www.brecorder.com/index.php?id=533995&currPageNo=1&query=&search=&term=&supDate=


----------



## Neo

*China to curb foreign borrowing, boost home markets *

BEIJING: China on Friday ordered banks to slash their short-term overseas borrowings in a move designed to reduce capital inflows that have helped push up the yuan, and to promote the countryÃ¢â¬â¢s financial markets.

In a statement on its website, the State Administration of Foreign Exchange (SAFE) expressed concern that foreign debt, especially short-term debt, was growing fairly rapidly.

SAFE, the currency regulator, ordered domestic banks to reduce short-term foreign debt in stages to 30 per cent of their 2006 quota by the end of March 2008.

Foreign-owned banks and all non-bank financial institutions in China must cut their short-term foreign debt to 60 per cent of their 2006 quota by the same deadline, the regulator said.

Officials said they were also considering reductions in companiesÃ¢â¬â¢ offshore borrowing.

SAFE said the cuts were not as drastic as they seemed because it was also relaxing the definition of short-term debt.

The regulator, which said the restrictions would help reduce ChinaÃ¢â¬â¢s bulging balance of payments surplus, has not disclosed how much banks were permitted to borrow last year.

But state media reports have said quotas were similar to those for 2005 Ã¢â¬â $34.8 billion for foreign banks and $24.4 billion for Chinese banks and some non-banking firms. To compensate for the restrictions on foreign borrowing, SAFE said it would expand ChinaÃ¢â¬â¢s underdeveloped currency swap market.

The regulator also promised to make it easier for foreign banks to operate in the interbank market and said more institutions would be allowed to issue yuan bonds.

Ã¢â¬ÅThe policy changes may hit two birds with one stone: reduce capital inflows and help develop the domestic money market,Ã¢â¬Â said Mingchun Sun, an economist at Lehman Brothers in Hong Kong.

Sun said the policy package had two possible implications.

Upward pressure on the yuan might ease at least slightly in the short-term, while reduced short-term capital inflows should help reduce excess liquidity in the banking system. This, together with increased demand for funds in the money market, could push market interest rates higher and pave the way for an increase in official interest rates, Sun told clients.

Oliver Stoenner, a portfolio strategist at Cominvest in Frankfurt, also saw the new policies as a form of backdoor tightening aimed at slowing the tempo of growth. Ã¢â¬ÅWith this kind of regulation the authorities aim to reduce inflationary pressure on the mainland because, if the banks borrow abroad to finance activity in mainland China, that tends to give a positive impact on monetary growth and the real economy,Ã¢â¬Â he said.

http://www.thenews.com.pk/daily_detail.asp?id=45244


----------



## Janbaz

*China may open bond market to foreign firms *

BEIJING: China will allow foreign firms to issue yuan-denominated bonds probably this year as part of efforts to ease upward pressure on the currency by stemming capital inflows, a senior central banker said on Saturday.

Wu Xiaoling, deputy governor of the People&#8217;s Bank of China, also said Beijing would continue to follow its own path on reforming the yuan&#8217;s exchange rate regime, despite US pressure to make the currency flexible more quickly.

&#8220;Allowing foreign investors to raise funds by issuing yuan bonds here is better for the balanced development of China&#8217;s economy than if they exchange foreign funds into yuan,&#8221; she told reporters on the sidelines of a meeting of the Chinese parliament&#8217;s consultative body.

Asked whether the change would come this year, Wu said: &#8220;I think it will.&#8221; So far only two international organisations, the Asian Development Bank and the International Finance Corp &#8212; the private lending arm of the World Bank &#8212; have been allowed to sell yuan debt.

Wu said she thought the corporate bond market in China had great potential to take off, given that it takes up only a small part of the country&#8217;s capital markets. However, the National Development and Reform Commission, the powerful economic planning agency, currently tightly controls the new bond issuance by setting annual quotas.

&#8220;A real corporate bond market doesn&#8217;t need a quota system &#8212; what matters is the companies&#8217; demand and the ability of the market to meet it,&#8221; she said. Wu also said that even if China invested more of its newly-added foreign exchange reserves in non-dollar assets, this would not have a big impact on the US bond market because it did not mean China was withdrawing its existing investments.

Beijing was keen to develop the market in currency swaps, she said, adding that the central bank was considering allowing foreign banks to become primary dealers in the swaps market. She reiterated Beijing&#8217;s long-standing position that the yuan&#8217;s level would be determined by market forces.

&#8220;The direction of our reform will not change, and the pace of the reform will be controlled by us,&#8221; she said, when asked what she would tell US Treasury Secretary Henry Paulson if he pressured Beijing on the yuan next week.

Paulson is scheduled to make a brief stop in Beijing on March 7 as part of an Asian tour. US officials, who say the yuan is artificially undervalued, have repeatedly called for Beijing to let the currency rise further. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45369


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## Janbaz

*Chinese inflation not intensifying&#8217; *

BEIJING: Inflationary pressure in China does not appear to be intensifying, a senior central bank official said on Saturday. Tang Xu, head of the research bureau of the People&#8217;s Bank of China (PBOC), said a recent rise in food costs, which account for about a third of China&#8217;s consumer price index (CPI), was unlikely to be sustained. &#8220;I don&#8217;t think inflationary pressure in February was getting stronger,&#8221; Tang told reporters on the sidelines of a financial forum. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45378


----------



## Janbaz

*China&#8217;s economy to race ahead despite lower growth target *

BEIJING: China&#8217;s economy will continue to race ahead at a near double-digit rate, analysts said on Monday, despite a call by Premier Wen Jiabao&#8217;s for a more controlled pace of development.

Wen set an expansion target of around eight per cent in 2007 &#8212; following growth of 10.7 per cent in 2006 &#8212; as part of his government&#8217;s commitment to pursuing more balanced and sustainable development.

&#8220;(We must) avoid seeking only faster growth and competing for the fastest growth,&#8221; Wen told nearly 3,000 delegates assembled in Beijing&#8217;s Great Hall of the People for the opening of parliament&#8217;s annual full session on Monday.

But after Wen finished his two-hour speech, economists said the lower target would not be met, highlighting the continued difficulty Beijing faces in reining in the world&#8217;s fourth-largest economy.

&#8220;There&#8217;s no way it will be just eight per cent, but he has to say that,&#8221; said Wang Qian, a Hong Kong-based economist for JPMorgan Chase Bank. &#8220;It&#8217;s a way of expressing his point of view that the economy shouldn&#8217;t grow too hastily,&#8221; she said.

Wen has in previous years announced similar economic growth projections, only to see the actual number far exceed the initial target, and he acknowledged that the government&#8217;s projection may again not prove accurate. &#8220;Because of changes in the domestic and international economic environments, including the markets, the real growth rate will vary a certain amount from the projected target,&#8221; he said.

Targets tend to be missed in China because local governments want growth as a means of creating jobs, threatening also the central government&#8217;s ambition for growth that is less wasteful and gentler on the environment, analysts said.

&#8220;One of the crucial problems with China is that the local governments are more focused on the growth at the cost of pollution,&#8221; said Dong Tao, a Hong Kong-based economist for Credit Suisse First Boston.

&#8220;The most difficult part of the policy is how to align the local governments&#8217; incentives along with China&#8217;s growth targets, environment protection targets and many other policy targets,&#8221; he said.

In his call for a more balanced economy, Wen targeted liquidity-fueled investment in plant, equipments and other productive capacity, a major factor in last year&#8217;s 10.7-per cent growth. &#8220;The focus of this work is to keep the scale of fixed-asset investment and credit under control and to promote overall balance between total supply and total demand,&#8221; Wen said.

Analysts said limiting growth to eight per cent would also prove hard because consumer spending was expected to gradually heat up as social safety improved and Chinese felt less of a need to save for emergencies and old age.

&#8220;The government is going to expand its spending on issues such as social security and environment protection,&#8221; said Sun Mingchun, a Hong Kong-based economist with Lehman Brothers.

The regularity with which growth objectives are missed in China has led some observers to call for an end to number targets &#8212; seen by some as a relic of the planned economy &#8212; and a shift to more comprehensive policy goals.

To some extent, the government may already be doing this, at least in private, according to Chen Xingdong, a Beijing-based economist with BNP Paribas. &#8220;I believe the government doesn&#8217;t really pay that much attention to the growth target as such,&#8221; he said. &#8220;It&#8217;s much more interested in issues such as keeping the deficit low and maintaining a stable monetary policy.&#8221; 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45648


----------



## Neo

*ChinaÃ¢â¬â¢s top reinsurer eyes $2.6bn IPO *

SHANGHAI: China Reinsurance, the countryÃ¢â¬â¢s biggest reinsurer, plans to raise as much as $2.6 billion in a dual Shanghai and Hong Kong IPO in September to bankroll a rapid expansion, two sources close to the deal told Reuters on Wednesday.

The plan follows a decision by the Chinese government late last year to inject $4 billion into the state-owned firm Ã¢â¬â which controls over 90 per cent of a burgeoning domestic reinsurance market Ã¢â¬â to boost its capital.

The firm now aims to raise 10 billion yuan to 20 billion yuan ($1.3-$2.6 billion) through the initial public offering, the sources said.

Ã¢â¬ÅThe company definitely wants capital, as much as they can raise the markets,Ã¢â¬Â said an insurance source in Shanghai familiar with the deal. Ã¢â¬ÅBut itÃ¢â¬â¢s not China Life or Ping An,Ã¢â¬Â the source said. Ã¢â¬ÅReinsurance is definitely more difficult, and more complicated, to convince and explain to investors.Ã¢â¬Â

If successful, the firm Ã¢â¬â which insures other insurers Ã¢â¬â would become the countryÃ¢â¬â¢s first reinsurer to go public. Core sector players such as China Life and Ping An Insurance have already floated shares at home and abroad.

After its IPO, the Beijing-based insurer would hold assets of at least 70 billion yuan, the sources said. Its listing plan has won regulatorsÃ¢â¬â¢ support, though the company has not yet formally applied to Beijing for approval.

The sources added that it had not finalised its IPO size, which would depend on the state of markets.

China Reinsurance (Group) Co hired the countryÃ¢â¬â¢s biggest brokerage, CITIC Securities, to manage its proposed local currency A-rhare issue in Shanghai. China International Capital Corp, 34.3 per cent-owned by Morgan Stanley, and other global investment banks will help the insurer with its Hong Kong IPO, the sources said.

The firm also has hired PricewaterhouseCoopers to be its external IPO auditor, the sources said, adding that an auditing report could be finished this month.

Officials at China Reinsurance declined comment.

Last week, China Insurance Regulatory Commission Vice Chairman Zhou Yanli said in Beijing the watchdog expected more insurers to list this year, a positive trend that will strengthen corporate governance and operations. He did not mention names.

China Reinsurance, whose clients include PICC Property & Casualty, the countryÃ¢â¬â¢s biggest non-life insurer, is the countryÃ¢â¬â¢s oldest reinsurance services provider, founded around the time the Communist Party seized control in 1949.

It is now owned by the Ministry of Finance but the company plans to secure a strategic partner by selling it new shares through the IPO, though the ministry will remain in control, the sources said, declining to elaborate.

China ReinsuranceÃ¢â¬â¢s major rivals include Munich Re and Swiss Re, the worldÃ¢â¬â¢s two biggest players. The sources declined to comment whether the Chinese reinsurer might get a foreign partner to boost its global business.

But they noted that part of the reason for listing was that the government wanted to strengthen the firmÃ¢â¬â¢s competitiveness globally.

Ã¢â¬ÅChina is now a major economic power in the world and Beijing has lots of big projects to implement in the next few years, like space exploration,Ã¢â¬Â said another financial source. Ã¢â¬ÅSo, the government absolutely needs a strong reinsurance service provider.Ã¢â¬Â

http://www.thenews.com.pk/daily_detail.asp?id=45924


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## Neo

Thursday, March 08, 2007 

*China to maintain rapid, stable growth in 2007* 

BEIJING: China will keep to a path of rapid but stable economic growth in 2007, the head of the National Development and Reform Commission, ChinaÃ¢â¬â¢s top planning agency, said on Wednesday. 

Ma Kai told a news conference during the annual session of the National PeopleÃ¢â¬â¢s Congress, ChinaÃ¢â¬â¢s parliament, that the 10.7 percent growth in gross domestic product that China achieved last year was within a normal range. 

Ã¢â¬ÅThere were no big ups or downs, meaning the stability of the economy improved,Ã¢â¬Â Ma said. 

Ma said that while fixed-asset investment had been brought under initial control, there was still pressure for a rebound in the pace of capital spending. To that end, Beijing would keep a tight grip on credit and land use as well as tightening environmental protection and energy-use standards for industry. 

Ã¢â¬ÅThe main problem is that thereÃ¢â¬â¢s still a lot of projects under construction,Ã¢â¬Â Ma said. 

Ã¢â¬ÅThere are also many newly started construction projects. And loopholes in the system that could trigger a new wave of excessive investment have yet to be plugged,Ã¢â¬Â he said. 

Ma added that the 8 percent growth target outlined by Premier Wen Jiabao on Monday at the start of the parliament session was not cast in stone, and could be adjusted. 

He said the property market was basically healthy, and that overall property price inflation was trending down. 

However, prices in some large and medium-sized cities were still too high and there was not enough affordable housing. 

The NDRC would take appropriate steps this year to address those issues, Ma said without providing details. 

Ma said the government was determined to cut pollution and save energy, but it had not set numerical targets for this year because the results would be seen only over the course of ChinaÃ¢â¬â¢s 2006-2010 five-year plan, as policies bear fruit. 

The government missed its 2006 targets for cutting the amount of energy needed to produce each unit of national income by 4 percent and for trimming key pollutants by 2 percent. 

Ma said China would adopt a gradual, cautious approach to reforming the way prices for natural resources such as oil, gas and water are set. 

The reforms were important because current prices did not reflect the true scarcity of the resources, he said. 

But Beijing had to proceed with caution because of the impact that higher prices would have on poorer Chinese. 

Ma also said that ChinaÃ¢â¬â¢s growing demand for energy to feed its rapid industrialisation and urbanisation posed no threat to global energy security, because it met about 90 percent of its needs on its own. 

China, the worldÃ¢â¬â¢s second-largest energy consumer, relies on its own reserves of coal to provide about 70 percent of its energy.

http://www.dailytimes.com.pk/default.asp?page=2007\03\08\story_8-3-2007_pg5_27


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## Neo

*China to set up 3rd bourse within year *

BEIJING: China plans to set up the countryÃ¢â¬â¢s third stock exchange in the booming northern city of Tianjin within the year but the project still needs cabinet approval, the China Daily reported on Saturday.

The over-the-counter bourse would handle mainly equity transactions of unlisted public companies, the report quoted Pi Qiansheng, director of the Administrative Committee of the Binhai New Area, as saying.

China has been trying to transform Binhai, centred on the port city of Tianjin, into a new economic backbone to fuel growth in the north of the country, and the area has become a designated zone for experimenting with reforms.

Ã¢â¬ÅIt is a very important attempt to diversity property rights and capital,Ã¢â¬Â Pi said of the exchange.

The exchange was meant to be supplementary to ChinaÃ¢â¬â¢s current capital market and give more attention to companies that focus on scientific innovation, the report said.

Beijing approved bourses in ChinaÃ¢â¬â¢s financial centre of Shanghai and Shenzhen, a special economic zone in the south, to build the countryÃ¢â¬â¢s first two stock exchanges in 1990 and there are now more than 1,400 listed companies on the two bourses.

A Tianjin official said last year he hoped an exchange in the city could be like the Nasdaq, focused on technology-related companies.

http://www.thenews.com.pk/daily_detail.asp?id=46379


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## Janbaz

*China's trade surplus jumps ahead*

China's trade surplus neared record levels in February - fuelling criticism that its currency is undervalued. 
The surplus hit $23.8bn (ÃÂ£12bn) for the month, more than nine times higher than a year earlier and the second largest on record, official data shows. 

China has resisted calls from the US to remove currency controls that limit the amount the yuan can rise or fall. 

The US argues that China keeps the yuan artificially cheap in order to boost its exports. 

According to Goldman Sachs analysts "the significant increase in the trade surplus, both in terms of its levels and the year-on-year growth rate, continues to put the yuan exchange rate under the spotlight". 

*'Double-win' *

China's exchange rate policy has been a source of contention in the US, with many politicians and company executives calling for trade sanctions unless China allows its currency to appreciate in value. 

Some critics want a 27.5% import tariff put on Chinese goods entering the US. 

US Treasury Secretary Henry Paulson has held long talks with China over its currency policy, as did his predecessor John Snow. 

On Monday, Commerce Minister Bo Xilai said that sanctions would hurt companies on both sides. 

"If the proposal goes ahead, it will be destructive to the current bilateral trade which is developing healthily, as well as disastrous news to both countries' enterprises that have achieved double-win in the relationship," said Mr Xilai. 

The central bank said that it would take steps to change currency controls, which at present allow the yuan to climb or fall a maximum of 0.3% from a daily fixed rate. 

"The managed floating exchange rate regime will be further improved and the flexibility of the exchange rate will be enhanced," the central bank said. 

The bank would "keep the exchange rate basically stable at an adaptive and equilibrium level", it explained, adding that it would also look at ways of opening up its markets -, allowing more capital abroad - and deepening financial reforms. 

*Strong demand* 

The problem for the US is that it wants quick action and the Chinese are unwilling to rush through changes. Central bank governor Zhou Xiachuan said "the current trend of imbalanced trade will take some time to be adjusted and addressed". 

Chinese exports rose by 52% in February from a year earlier, the fastest rate in more than a decade. Imports climbed by 13%. 

Steel exports almost tripled in January and February, while foreign sales of furniture increased by almost 50%, electronics and machinery grew by 38% and clothing rose by 44%. 

"This broad-based acceleration implies global demand for Chinese products is strong," said Qu Hongbin of HSBC. 

BBC News.
http://news.bbc.co.uk/2/hi/business/6441059.stm


----------



## Janbaz

* China tries to reduce trade surplus, cautions against quick results *

BEIJING: China is taking active measures to reduce its ballooning trade surplus, but its trade minister cautioned on Monday that the increasingly politicised problem will not be resolved quickly.

&#8220;It is true that our trade surplus last year reached a historic high,&#8221; Bo Xilai told journalists. &#8220;In the past few years we have taken a series of trade measures that are aimed at boosting imports and slowing the growth in exports.&#8221;

Shortly after Bo spoke, the customs authorities published trade figures showing a near-record 23.8-billion-dollar trade surplus in February. China&#8217;s trade surplus last year soared 74 per cent to hit a record $177.5 billion, according to previously published government data. Bo maintained the Chinese government was not seeking a large trade surplus and was actually hoping for a balance in its international payments.

&#8220;The surplus was not formed only because of trade issues, it has developed due to the industrial structure and the overall situation with the global economy,&#8221; he said. &#8220;So we should not expect to see the resolution of the trade surplus problem in the short term, or only because of some trade measures.&#8221;

He further said China&#8217;s booming export-driven economy was fueled by foreign-invested companies and the processing trade, where overseas companies were reaping the profits. &#8220;China has a big trade surplus, but the profits are being made by (these) companies,&#8221; he said.

Bo also voiced opposition to proposed legislation in the United States that would impose 27.5 per cent tariffs on Chinese imports if Beijing did not take greater measures to free up the exchange rate of its currency.

&#8220;If this proposal moves forward, it would destroy the currently healthy development of Sino-US trade,&#8221; Bo said. &#8220;China is firmly opposed to this, we believe that this does not conform with WTO rules and if it is implemented would not only be trade protectionism but trade hegemony.&#8221; US lawmakers have accused China of maintaining the yuan at artificially low levels in an effort to boost exports. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=46595


----------



## Neo

March 14, 2007 
*ChinaÃ¢â¬â¢s FDI jumps 13pc*

BEIJING, March 13: Foreign direct investment into China in the first two months of the year totalled $9.7 billion, a rise of 13 per cent from the same period a year earlier, the government said on Tuesday. Hong Kong, the British Virgin Islands Ã¢â¬â where many Chinese companies register for tax purposes Ã¢â¬â and Japan were the top three sources of foreign direct investment, the commerce ministry said. Last year actual foreign investment in China was $69.5 billion, down 4.1 per cent from 2005.

However, if the financial sector were to be excluded, the figure totalled $63 billion, a rise of 4.5 per cent.

http://www.dawn.com/2007/03/14/ebr13.htm


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## Janbaz

* China's Hangxiao Steel wins $4.4bn contract *

BEIJING: China&#8217;s Hangxiao Steel Structure said on Tuesday it had won a 4.4-billion-dollar contract to sell construction products and services for public housing projects in Angola.

The contract was signed with China International Fund Ltd, a Hong Kong-based company with a vast array of construction activities in Africa, according to a statement from Shanghai-listed Hangxiao Steel Structure.

The sale of construction products is worth 24.8 billion yuan ($3.2 billion) and the company will be paid another 9.6 billion yuan for its construction services in 12 cities in the African country, the statement said.

Construction work on each site should be completed by Hangxiao Steel Structure, which is based in the eastern province of Zhejiang, within two years after construction facilities and conditions on the site become available.

The statement deemed unstable social and political conditions in Angola, the &#8220;relatively backward&#8221; local transportation system, difficulties in water and electricity supply on the construction sites as major risks for the deal.

China International Fund signed an Equipment, Procurement and Construction construction with the Angola government to build a series of public housing projects within five years.

China&#8217;s growing engagement in Africa is raising eyebrows in other parts of the world, especially Europe and North America.

Sino-African trade reached $55.5 billion last year, according to official Chinese figures.

At a historic summit in November last year that brought leaders from 48 African nations to Beijing, China pledged to double its aid to the continent and to offer five billion dollars in loans and credits by 2009.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=46709


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## Janbaz

*UAE-China trade soars to $14.2 billion*

DUBAI: Two-way trade between the UAE and China surged 31.5 percent to $14.2 billion in 2006 to position the Emirates as the largest trading partner of China in the GCC, according to Zhuang Ruijin, Economic & Commercial Counsellor of Chinese Embassy in UAE. 

Quoting statistics released by the General Administration of Customs of China, Zhuang said bilateral trade between the two countries was poised to grow steadily over the years.

&#8220;In line with the vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Sino-UAE trade is targeted to reach $100 billion by 2015,&#8221; he said at a recent seminar to facilitate UAE SME entrepreneurs&#8217; participation at the 101st China Import & Export Fair in Canton. 

&#8220;This goal is very tough, while I believe that by 2015, each entrepreneurs present today will play a key role in achieving this strategic plan. 

It will be realised through our joint efforts. The prospect is bright and we must take the opportunities.&#8221;

Trade relations between China and the GCC have also gathered pace over the past few years with total ono-oil trade value rising to $32 billion.

He said China&#8217;s economy has been on a fast growth track. In 2006, China&#8217;s GDP got to $ 2.7 trillion, up 10.7 per cent over 2005; the total volume of export and import amounted to $1.76 trillion, an increase of 23.8 per cent over 2005, of which the exports stood at $969 billion and imports $791.1 billion.

Ren Xiangdong, who was heading a delegation from China Foreign Trade Centre, said Canton Fair has been playing a key role in spurring the growth of Sino-UAE trade.

In 2006, Canton fair attracted more than 5500 businessmen from the Emirates and the business conducted by the UAE side was valued at $1.16 billion, contributing more than eight per cent of total Sino-UAE trade. 

He said the fair would attract more than 200,000 visitors in April; 150,000 different goods and services will be displayed by 14,000 Chinese companies and manufactures.

Renee Wang, general manager of Dragon Century Tourism, believes that the Canton Fair is the most significant platform for regional business people to meet and engage with Chinese business interests.

&#8220;With the growing significance of trade with China over the past few years, we have seen an impressive upturn in the number of regional business people, especially from the UAE, visiting the Canton Fair. Dragon Century Tourism has set up its services to target such business travellers providing them with all the services they require to make their trip more effective.&#8221; courtesy khaleej times

Daily Times.
http://www.dailytimes.com.pk/default.asp?page=2007\03\16\story_16-3-2007_pg5_28


----------



## Neo

Saturday, March 17, 2007 

*Ã¢â¬ËChina to encourage overseas investmentsÃ¢â¬â¢*

BEIJING: China will take further steps this year to encourage domestic firms and residents to invest overseas, a senior foreign exchange official said on Friday. 

Li Dongrong, a deputy director with the State Administration of Foreign Exchange (SAFE), did not provide details on what the policies would be, but he said they would be part of a range of efforts to balance the countryÃ¢â¬â¢s international payments. 

Ã¢â¬ÅWe will continue to support qualified firms to go abroad to expand their overseas investment channels,Ã¢â¬Â Li was quoted as saying in a statement on the regulatorÃ¢â¬â¢s Web site (www.safe.gov.cn). 

The foreign exchange regulator has said recently that one of its main tasks for 2007 is to encourage more capital outflows so as to offset the upward pressure on the yuan generated by the countryÃ¢â¬â¢s large trade surplus and inflows of investment. Li said the agency would also step up its supervision over short-term foreign debt to curb speculative capital inflows. 

He added that two parallel schemes for allowing foreign institutional investors to invest in China and domestic institutions to invest in capital markets overseas would both be improved this year. That echoed a report by the central bank issued on Friday that said China would encourage greater two-way capital flows.

http://www.dailytimes.com.pk/default.asp?page=2007\03\17\story_17-3-2007_pg5_24


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## Janbaz

*China raises interest rates to trim credit growth *

BEIJING: China&#8217;s central bank said on Saturday that it was raising interest rates for the third time in less than a year to put a lid on credit and investment and keep the world&#8217;s fourth-largest economy on an even keel.

The People&#8217;s Bank of China said that, effective Sunday, its benchmark one-year yuan lending and deposit rates would rise by 0.27 percentage point each. That brings the one-year deposit rate to 2.79 per cent and the lending rate to 6.39 per cent. &#8220;The rate increase is conducive to the reasonable growth of credit and investment, to stabilising prices, to the stable operation of the financial system, to balancing growth and improving the structure of the economy, and to promoting the healthy but rapid development of the economy,&#8221; the central bank said in a statement on its Web site (www.pbc.gov.cn).

The move follows an increase of lending rates alone on April 27 of last year and a rise in both rates last Aug 18. The central bank has also raised banks&#8217; required reserves five times since last June, to help soak up liquidity generated by the country&#8217;s large balance-of-payments surplus. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=47285


----------



## Janbaz

*Mozambique, China in talks on hydro-power project* 

MAPUTO: Mozambique is close to a deal with China that would pave the way for a $300 million hydro-electric dam in Maputo, Public Works and Housing Minister Felicio Zacarias said on Monday.

China&#8217;s Export-Import Bank (Eximbank) already has agreed to finance studies for the Moamba Major project, which would expand the supply of electricity as well as drinking water in the Mozambiquan capital, Zararias said.

The talks could see the Chinese taking a much larger stake in the project, according to Zacarias, who did not provide further details. &#8220;We are about to close the discussions and hope China will fund and construct the dam,&#8221; Zacarias told Reuters in an interview. He added that the project could help control flooding and droughts in the impoverished southern African nation.

Dozens of people were killed and some 170,000 forced to flee their homes in central Mozambique in February when heavy rains triggered flash flooding along the Zambezi river and its tributaries.

Mozambique officials said last year that Eximbank planned to invest some $2.3 billion in the construction of the new Mepanda Nkua dam and 1,300 Megawatt hydro-electric plant on the Zambezi River, south of the giant Cahora Bassa power development.

At the time officials said discussions were also under way with China on the Moamba Major project. Although Mozambique has large supplies of fresh water, much of the infrastructure required to transport it to Maputo and other cities was destroyed or allowed to fall into disrepair during a two-decade civil war that ended in the early 1990s.

Zacarias said the government planned to expand the number of medium-sized and large dams in the country there are currently 12 in order to meet its goal of extending clean drinking water to 60 per cent of the population by 2015.

Only about 40 per cent of Mozambiquans have access to clean water. The Moamba Major project would also allow Mozambique, which currently relies on Cahora Bassa in northern Tete province, to meet growing domestic and regional power demands.

Cahora Bassa generates some 2,075 megawatts of power, providing Mozambique with $100 million in annual electricity exports. There are plans to expand the site to add a further 850 megawatts of capacity.

South Africa, the economic powerhouse in the region as well as the African continent, is expected to absorb the bulk of the additional electricity produced in neighbouring Mozambique. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=47546


----------



## Owais

*China to set up a company to build large aircraft *
BEIJING: China announced it had approved a plan to build large passenger aircraft which analysts said could take on Boeing and Airbus, not just at home but eventually on the world market. 

The State Council, or Cabinet, made the decision at a meeting presided over by Premier Wen Jiabao after listening to details of a feasibility study on the project, the government said in a statement posted on its website. 

The plan is to "design and build airplanes that can carry more than 150 passengers and compete with Airbus and Boeing." 

Initial estimates showed research and development would cost between 50 and 60 billion yuan (6.5 billion and 7.7 billion dollars), the report said. 

The media characterised the move into big-ticket airplane manufacturing as "a major strategic decision" and said the project would begin "as soon as possible." 

In the statement, the Cabinet also said it had approved a plan to set up a company to make large aircraft. 

The statement reinforced China's role as a possible entrant into what is effectively a global duopoly shared by US-based Boeing and Airbus of Europe. 

Even if challenging the two western behemoths -- something Russia is reportedly also trying to do -- might seem over-ambitious, local experts said China could pull it off. 

Given enough resources and a healthy dose of official commitment, China could probably produce a large plane, not just for the domestic market but for exports as well, they argued. 
However experts said it would be a long journey before large Chinese passenger jets took to the skies and China must be prepared to import key parts from abroad. 
http://geo.tv/geonews/details.asp?id=3645&param=3


----------



## Neo

*China copper imports hit highest level in two years *

BEIJING/HONG KONG: Chinese refined copper imports hit their highest level in two years in February, causing warehouse stocks to pile up and spot copper values to plunge, but traders do not expect the trend to continue into the next quarter.

ChinaÃ¢â¬â¢s refined copper imports soared 177.9 per cent compared with a year earlier to 148,679 tonnes in February, customs data showed on Thursday. Imports rose by 12.8 per cent from January. But the surplus of refined copper could cause imports to slip in March, and fall off sharply into the second quarter.

Ã¢â¬ÅAfter the Chinese New Year, premiums have come down very quickly, and so have imports,Ã¢â¬Â said a senior trader at a Chinese company based in Beijing. The abundant supplies caused spot copper in eastern China to fall to a discount to Shanghai futures prices this week. On Thursday, spot copper traded at a discount of 300 yuan to 500 yuan ($38.80-$64.70) below the April futures contract.

Ã¢â¬ÅAt the moment, the market is not so good for cathodes. The LME copper prices have come up too quickly. YouÃ¢â¬â¢d make a small loss for imports today,Ã¢â¬Â the trader said.Strong imports during the first two months of this year reflected a retreat in London Metals Exchange copper futures at the start of the year, combined with a tight spot market in China.

The government also tightened scrap imports in the south, which also pushed up demand for copper cathodes in the first two months. The control has normalised since. LME copper futures for delivery in three months have bounced back to about $6,770 a tonne, a level not seen since mid-December, from the 2007 low of $5,260 hit early in February.

Ã¢â¬ÅRising stockpiles in the Shanghai Futures Exchange indicate the countryÃ¢â¬â¢s consumption is lower than what people had earlier expected,Ã¢â¬Â said analyst Yang Jun at China Futures.ChinaÃ¢â¬â¢s apparent consumption of aluminium soared in the first two months of this year, as strong demand from fabricators spurred smelters to restart idled capacity.

Although China had tried to crack down on the energy intensive industry over the last two years by removing tax incentives for primary aluminium exporters, exporters of aluminium products can still enjoy a rebate of about half the 17 per cent value added tax.

The surge in primary aluminium production has depressed domestic prices and lifted stockpiles. Lower domestic prices have discouraged imports, which have fallen by 64 per cent in the first two months of this year compared with the year before.

Aluminium products exports doubled in the first two months of this year, to 255,811 tonnes. Some traders expect Beijing to reduce or remove the VAT rebate on aluminium products exports in order to prevent a further ramping up of smelting capacity. 

http://www.thenews.com.pk/daily_detail.asp?id=47951


----------



## Neo

*China to be worldÃ¢â¬â¢s second biggest consumer by 2015: report*
(AFP)

24 March 2007 

SHANGHAI - A booming economy will lift China tosecond place behind the United States as the worldÃ¢â¬â¢s biggest consumer market by 2015, a research report said on Saturday.


Consumption in the Asian giant is expected to make up 14.1 percent of the total among major world economies in 2015, surpassing that of Japan and Germany, Britain and Italy, according to a report by the Credit Suisse bank.

The United States, which last year accounted for 42 percent of global consumption, will account for 37.7 percent by then, the report said.

ChinaÃ¢â¬â¢s consumption last year made up 5.4 percent of the global total, putting it on par with Italy, but behind Japan at 11.1 percent, Germany at 7.3 percent, and Britain at 6.6 percent, the report said.

Credit Suisse forecast ChinaÃ¢â¬â¢s consumption to move in behind the United States and Japan by 2010.

However, the survey also revealed that despite economic growth of 10.7 percent last year, budgeted and actual spending on many consumer items declined in 2006 compared with the previous year.

It also said personal income grew at a slower pace when compared with ChinaÃ¢â¬â¢s rapid economic expansion, profit growth of the nationÃ¢â¬â¢s enterprises and government tax revenue growth.

ChinaÃ¢â¬â¢s regulators are eager for the nationÃ¢â¬â¢s 1.3 billion people to consume more in an economy that still relies heavily on investment and exports for growth.

Chinese retail sales rose 14.7 percent in the first two months of 2007 compared with a year earlier, a level of growth regarded as relatively strong, but one that regulators would like to see higher.

Consumers in China are often reluctant to spend freely because of the crumbling welfare state that forces many people to save any extra money for basics such as education and health care.

http://www.khaleejtimes.com/Display...h/business_March661.xml&section=business&col=


----------



## Neo

March 25, 2007 
*Venezuela in oil export deals with China*

CARACAS, March 24: Venezuela said on Saturday it was working on a raft of oil deals with China, giving impetus to President Hugo ChavezÃ¢â¬â¢s attempts to break his countryÃ¢â¬â¢s dependence on oil exports to the United States.

The China National Petroleum Corp. will look to develop heavy crude oil production in the Orinoco Belt and cooperate with Venezuela in building three refineries in China and a Ã¢â¬Åsuper-fleetÃ¢â¬Â of crude tankers, the Information Ministry said.

Ã¢â¬ÅThe United States as a power is on the way down, China is on the way up. China is the market of the future,Ã¢â¬Â Chavez was quoted as saying by an Information Ministry statement after meeting CNPC President Jiang Jiemin in Caracas.

China's economic expansion has turned it into the worldÃ¢â¬â¢s second-biggest oil consumer. Opec member Venezuela was the fifth-biggest oil exporter to the United States in January.

Analysts reckon it pumps about 2.7 million barrels per day.

Chavez has ambitious plans to lift oil exports to China to lessen its dependence on its arch-foe the United States, saying it hopes to send one million barrels per day to China by 2012.

This optimistic target follows an earlier goal of more than tripling oil exports to China of 160,000 bpd by 2009.

The Information Ministry said CNPC would in the coming days sign a preliminary deal to take a 40 per cent stake in a Venezuelan heavy crude project.

Chavez is pushing ahead with a nationalisation of VenezuelaÃ¢â¬â¢s oil industry, stripping major US companies such as Exxon Mobil Corp., ConocoPhillips and Chevron Corp. of their majority stakes in heavy crude projects.

While sidelining such majors, Chavez is seeking to do more business with China, Russia and Iran, part of forming what he describes as a multipolar alliance against the United States.

http://www.dawn.com/2007/03/25/ebr17.htm


----------



## PakSniper

*Intel's $2.5bn China chip plant*

*Intel logo and computer user in China, Intel says China is its fastest-growing major market, Intel is to build a $2.5bn (ÃÂ£1.3bn) computer chip plant in China, boosting the country's high-tech industry.
*
It will be Intel's first integrated wafer plant in Asia, serving the US firm's "fastest-growing" market.

"This project confirms... the strategic importance of China in our global strategy and the IT industry around the world," said Intel boss Paul Otellini.

However, the technology used in the plant is at least a generation behind Intel's most advanced computer chips.
*
Intel already employs more than 6,000 people in China, making memory chips at factories in Shanghai and Chengdu.*

China innovation

*The new factory, where production is scheduled to begin in 2010, will use 90-nanometre technology.*

It will be based in the port city of Dalian, in the north-east of China.

"China is our fastest growing major market, and we believe it is critical that we invest in markets that will provide for future growth to better serve our customers," said Mr Otellini.

Intel wanted to "support a transition from 'manufactured in China to 'innovated in China'," he said.

Zhan Xiaoqiang, vice chairman of China's National Development and Reform Commission, said he hoped the new factory would "bring more value-added research projects" to the region.

*The new factory will take Intel's total investment in China to $4bn.*

http://news.bbc.co.uk/2/hi/business/6494401.stm

----

China's future is set it's going to go high-tech soon.


----------



## Janbaz

*Hu eyes energy imports on Russia visit *

MOSCOW: Chinese President Hu Jintao holds crucial talks with Russian counterpart Vladimir Putin in the Kremlin on Monday as part of a worldwide drive to secure new energy sources for China.

Officials from the two countries were expected to seal trade deals worth up to four billion dollars during Hu&#8217;s three-day visit to Russia, as well as discuss the nuclear programmes of Iran and North Korea.

But the key to the visit is energy-hungry China&#8217;s bid to obtain guarantees of increased oil and gas deliveries from Russia, the biggest energy producer in the world, analysts said. Last month, Hu went on a 12-day tour to eight African nations that was aimed largely at boosting Chinese investment in natural resources in the continent and securing oil imports from war-torn Sudan.

&#8220;Energy is one of the most significant and promising areas of co-operation with China. It is based on large projects of a long-term and mutually beneficial character,&#8221; a Kremlin official said ahead of the talks. The Kommersant daily said that the main agreement to be finalised during Hu&#8217;s visit was a deal between the Russian and Chinese railway companies that would increase crude oil exports to China.

Russia exported 15 million tonnes of oil to China in 2006, 11 million tonnes of it by rail, officials said. Plans to boost shipments have sparked concern that supplies to the West might suffer.

The visit is also expected to touch on Chinese worries about delays in the construction of a planned oil pipeline from the fields of Siberia to the Chinese oil hub of Daqing, Kommersant reported.

The two leaders are set to meet in Moscow on Monday and sign a joint declaration on Russian-Chinese partnership. They will meet again on Tuesday to inaugurate a major exhibition of Chinese artefacts inside the Kremlin.

Hu will then travel to Tatarstan, a mainly Muslim province in central Russia that has extensive oil reserves and has attracted high levels of foreign investment. Hu said ahead of the trip, his third to Russia since becoming president, that the visit would further cement economic and diplomatic relations that have grown significantly since the collapse of the Soviet Union in 1991.

But Russian newspapers said that behind the high-flown rhetoric, Hu&#8217;s trip would be about hard-nosed business bargaining. &#8220;Behind the ceremonial facade, the Chinese president is in for some tense negotiations,&#8221; Kommersant said. The Nezavisimaya Gazeta ran a headline reading: &#8220;Difficult Neighbour: The imbalance between Russia and China is growing.&#8221; 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=48519


----------



## Contrarian

dragonking786 said:


> *Intel's $2.5bn China chip plant*
> 
> *Intel logo and computer user in China, Intel says China is its fastest-growing major market, Intel is to build a $2.5bn (ÃÂ£1.3bn) computer chip plant in China, boosting the country's high-tech industry.
> *
> It will be Intel's first integrated wafer plant in Asia, serving the US firm's "fastest-growing" market.
> 
> "This project confirms... the strategic importance of China in our global strategy and the IT industry around the world," said Intel boss Paul Otellini.
> 
> However, the technology used in the plant is at least a generation behind Intel's most advanced computer chips.
> *
> Intel already employs more than 6,000 people in China, making memory chips at factories in Shanghai and Chengdu.*
> 
> China innovation
> 
> *The new factory, where production is scheduled to begin in 2010, will use 90-nanometre technology.*
> 
> It will be based in the port city of Dalian, in the north-east of China.
> 
> "China is our fastest growing major market, and we believe it is critical that we invest in markets that will provide for future growth to better serve our customers," said Mr Otellini.
> 
> Intel wanted to "support a transition from 'manufactured in China to 'innovated in China'," he said.
> 
> Zhan Xiaoqiang, vice chairman of China's National Development and Reform Commission, said he hoped the new factory would "bring more value-added research projects" to the region.
> 
> *The new factory will take Intel's total investment in China to $4bn.*
> 
> http://news.bbc.co.uk/2/hi/business/6494401.stm
> 
> ----
> 
> China's future is set it's going to go high-tech soon.



Grrr...Its THIS very market that we want to steal from China.


----------



## Neo

Tuesday, March 27, 2007 

*Deutsche Bank to strengthen presence in China *

FRANKFURT: Deutsche Bank, the biggest bank in Germany, said on Monday it planned to reinforce retail banking interests in China by applying to incorporate its activities there under Chinese law. 

Deutsche Bank said in a statement that it had Ã¢â¬Åformally advised the China Banking Regulatory Commission (CBRC) of its decision to apply for local incorporation in China.Ã¢â¬Â

In addition, Deutsche Bank said it would set up its Chinese headquarters in Beijing, while keeping a foreign currency-booking branch in Shanghai.

Ã¢â¬ÅLocal incorporation expresses not only our commitment to China but also our desire to participate directly in the development of the local financial services market there,Ã¢â¬Â said the head of Deutsche BankÃ¢â¬â¢s Asia Pacific division, Colin Grassie. The head of Deutsche Bank China, Lee Zhang, said: Ã¢â¬ÅLocal incorporation is an important step in the implementation of our China strategy. We are already well-positioned for expansion and local incorporation will allow us to accelerate our growth plans across all product lines.Ã¢â¬Â

Other big international banks have already applied for local incorporation under a new law passed by Beijing last year. Deutsche Bank is already present in China via a 19-percent stake in Harvest Asset Managment, the countryÃ¢â¬â¢s biggest independent asset managment company, and via a 9.9-percent stake in Hua Xia Bank. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\27\story_27-3-2007_pg5_16


----------



## Neo

Tuesday, March 27, 2007 

*Europe urges China to slash steel exports*

GUANGZHOU: EuropeÃ¢â¬â¢s steel industry confederation, Eurofer, has called on China to slash steel exports to below two million tonnes, warning it would otherwise take the case to the World Trade Organisation. Analysts, however, did not expect ChinaÃ¢â¬â¢s exports to come down much despite a slowdown due to high prices in China. 

Gordon Moffat, director general at the European Confederation of Iron and Steel Industries (Eurofer), told a conference in this southern Chinese city that ChinaÃ¢â¬â¢s steel product exports to Europe jumped to more than 5 million tonnes last year from 300,000-400,000 tonnes a year earlier. Ã¢â¬ÅIncreases of this extent cannot continue without repercussions on the market, and repercussions on our relations to China,Ã¢â¬Â he said.

http://www.dailytimes.com.pk/default.asp?page=2007\03\27\story_27-3-2007_pg5_17


----------



## Neo

Tuesday, March 27, 2007 

*ChinaÃ¢â¬â¢s Hu to seek energy deals in Russia *

MOSCOW: Chinese President Hu Jintao arrived in Russia on Monday on his third visit as national leader, seeking energy deals but also offering Moscow business opportunities and international cooperation as they expand ties. 

Ã¢â¬ÅI am certain this visit will give new momentum to the deepening of Russian-Chinese relations and to our practical cooperation in all spheres,Ã¢â¬Â Hu said in a statement handed to reporters after his jet touched down in Moscow. 

China and Russia are permanent members of the United Nations Security Council who have used their veto power to blunt Western efforts to sanction Iran and other challengers to US policy. 

Over the weekend, they both backed a UN resolution imposing new sanctions on Iran for continued uranium enrichment, which critics say is aimed at eventually giving Tehran the ability to assemble nuclear weapons. 

Iran is sure to be on the agenda when Hu sits down for talks with Russian President Vladimir Putin, officials said. 

But Hu will also be looking to expand trade between the two growing economies, especially oil and gas for energy-thirsty China. 

China is the worldÃ¢â¬â¢s number two oil consumer, and Russia the second-largest exporter. But their potential partnership has been stymied by both nationsÃ¢â¬â¢ desire to keep a state grip on energy deals. Previous plans for key oil and gas pipelines have languished after both sides trumpeted initial agreements. 

Vying for crudez: China wants to pay less for the gas and it is unclear whether Russia has enough crude to satisfy China and Japan, which have been vying for supplies. 

Moscow has flip-flopped over which of these Asian rivals should get the first pipeline connection, leaving Chinese buyers hanging on promises of increased railway supplies of oil. 

RussiaÃ¢â¬â¢s state-controlled oil firm Rosneft has repeatedly failed to meet its targets for increased crude oil volumes by rail to China. 

But Rosneft will sign a deal on Tuesday with Unipec, the trading arm of Sinopec Corp, to reopen a border crossing at Naushki, adding 3 million tonnes of crude a year (60,000 barrels per day), Kommersant newspaper reported. 

Russia may be willing to make some energy concessions to China as Moscow seeks to diversify markets and investment, said Nicklas Norling, a researcher at Uppsala University in Sweden who has studied their relations. Ã¢â¬ÅEnergy is a source of tension but also potential cooperation,Ã¢â¬Â he said. 

Hu will visit the oil-rich region of Tatarstan after Moscow, which may yield an oil deal with the regional oil firm Tatneft, a local government spokeswoman said. She declined to give details and said the deal was not yet definite. 

Putin also hopes that Hu will buy more Russian-made military hardware as China drives ahead with defence modernisation, Norling said. 

Ã¢â¬ÅRussia needs to keep its military industry floating, and China is really important to doing that,Ã¢â¬Â he said. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\27\story_27-3-2007_pg5_27


----------



## Neo

Tuesday, March 27, 2007 

*China misspent $700 million on road projects in Ã¢â¬Ë05 *  

BEIJING: Local officials misspent almost $700 million building roads in China in 2005 and siphoned off more than $200 million supposed to compensate farmers for land acquired for highway projects, the government said on Monday. Of the 166.2 billion yuan ($21.49 billion) spent on ChinaÃ¢â¬â¢s top 34 road schemes, about 2.16 billion yuan was misused or embezzled, and 3.25 billion yuan was wasted, the National Audit Office said on its Web site (www.audit.gov.cn). Of the 5.17 billion yuan earmarked for farmers whose land was appropriated in 14 provinces, about 1.64 billion yuan never reached its intended targets, it said. Ã¢â¬ÅIllegal land seizures, embezzlement and continuously delaying compensation for farmers violated farmersÃ¢â¬â¢ interests,Ã¢â¬Â said the report. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\27\story_27-3-2007_pg4_7


----------



## Janbaz

*Russia, China forge new trade ties at presidential summit* 

MOSCOW: China and Russia forged new ties at a presidential summit that brought four billion dollars&#8217; worth of trade deals on Tuesday, increasing the interdependence of the two fast-growing economies.

Chinese President Hu Jintao and Russian President Vladimir Putin oversaw the deals on the second day of a visit by the Chinese leader meant to secure additional energy shipments and push trade to new highs.

&#8220;For Russia, China has always been one of the most important economic partners in the world, and throughout recent years our business ties have steadily grown and strengthened,&#8221; Putin said, speaking at the opening of China&#8217;s biggest-ever trade fair in a foreign country.

The presidents oversaw the signing of 21 contracts, including an agreement by Russian state oil company Rosneft to supply jet fuel to China and long-term export contracts for Russian steel products.

Among the biggest contracts was a $460-million (345-million-euro) agreement by Russia&#8217;s Novolipetsk Steel to supply 94,000 tonnes of steel to Chinese electrical parts maker Tebian Electric Apparatus Stock from 2007-2011.

Nearly 200 Chinese companies showcased products at the trade fair, which Putin used to underline Russia&#8217;s interest in developing its own high-tech sector with Chinese help. &#8220;We are particularly interested in exhibitions devoted to innovative and information products, aviation, aeronautics and energy, the nuclear industry,&#8221; Putin said.

Russia wants to learn from China&#8217;s example as one of the world&#8217;s fastest-expanding economies, former prime minister Yevgeny Primakov said. &#8220;We are studying China&#8217;s experience closely,&#8221; he told reporters at the fair. China and India &#8220;are growing twice as fast as the United States. The question is: To whom does the future of the world belong?&#8221;

China&#8217;s chief interest in Russia, meanwhile, is securing more oil and gas to fill its huge energy needs. The Chinese president took a step in that direction Monday by securing an agreement for increased deliveries of Russian oil by rail.

Those deliveries should jump from the 11 million tonnes shipped in 2006 to 15 million tonnes per year, Russian Railways head Vladimir Yakunin told reporters. China received a total of 15 million tonnes of Russian oil last year, and analysts say it is eager to secure guarantees for more.

Hu continues his energy quest on Tuesday evening with a visit to Tatarstan, a mainly Muslim province in central Russia that has extensive oil reserves. The Chinese president will meet there on Wednesday with the region&#8217;s leader Mintimir Shaimiyev. Other agreements were signed between Russian and Chinese banks and space agencies.

Meeting Prime Minister Mikhail Fradkov on Monday morning, Hu said: &#8220;Both sides should use this chance to strengthen trust in each other in all ways, to deepen practical cooperation.&#8221; Both sides said bilateral trade jumped over the past year, though their statistics differed: China said trade grew 15 per cent in 2006, while Russia said trade grew 43 per cent over the same period. 

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=48645


----------



## Janbaz

*China to invest $13bn in Tibet* 

BEIJING: China has pledged to invest 100bn yuan ($13bn) in Tibet over the next four years, building the world&#8217;s highest airport and offering development in an apparent bid to boost an image tarnished by reported human rights abuses.

The money would be spent on 180 projects in the years up to 2010, including extending the predominantly Buddhist region&#8217;s first railway, Xinhua news agency said. China planned to extend the availability of drinking water, electricity and telephone lines to herding communities and build a railway from the regional capital Lhasa to Xigaze, the remote Himalayan region&#8217;s second-largest city.

The plans also included the building of the world&#8217;s highest airport at Ngari in the west. Tibet&#8217;s fourth civilian airport will be higher even than the 4,334 metres (14,220 ft) above sea level of current record holder Qamdo airport in eastern Tibet. The regional government&#8217;s vice-chairman, Hao Peng, said the investment would be tilted towards herding regions &#8220;so farmers and herders and the grassroots population will fully enjoy the fruits of reform and development&#8221;, Xinhua reported.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=48648


----------



## PakSniper

*Russia, China sign four billion dollars of trade deals*

China and Russia signed four billion dollars' worth of trade deals on Tuesday during a visit by Chinese President Hu Jintao focused on securing new energy sources.

Chinese President Hu Jintao and Russian President Vladimir Putin oversaw the deals on the second day of Hu's visit to Russia.

"For Russia, China has always been one of the most important economic partners in the world, and throughout recent years our business ties have steadily grown and strengthened," Putin said, speaking at the opening of China's biggest-ever trade fair in a foreign country.

The presidents oversaw the signing of 21 contracts, including an agreement by Russian state oil company Rosneft to supply jet fuel to China and long-term export contracts for Russian steel products.

Among the biggest contracts was a 460-million-dollar (345-million-euro) agreement by Russia's Novolipetsk Steel to supply 94,000 tonnes of steel to Chinese electrical parts maker Tebian Electric Apparatus Stock from 2007-2011.

Nearly 200 Chinese companies showcased products at the fair, which Putin used to underline Russia's interest in developing its own high-tech sector with Chinese help.

"We are particularly interested in exhibitions devoted to innovative and information products, aviation, aeronautics and energy, the nuclear industry," Putin said.

China's chief interest in Russia, meanwhile, is securing more oil and gas to meet its huge energy needs.

The Chinese president took a step in that direction on Monday by securing an agreement for increased deliveries of Russian oil by rail.

Those deliveries should jump from the 11 million tonnes shipped in 2006 to 15 million tonnes per year, Russian Railways head Vladimir Yakunin told reporters.

China received a total of 15 million tonnes of Russian oil last year, and analysts say it is eager to secure guarantees for more.

Hu continues his energy quest Tuesday evening with a visit to Tatarstan, a mainly Muslim province in central Russia that has extensive oil reserves. He will meet there on Wednesday with the region's leader Mintimir Shaimiyev.

Other agreements were signed between Russian and Chinese banks and space agencies.

Meeting Prime Minister Mikhail Fradkov on Monday morning, Hu said: "Both sides should use this chance to strengthen trust in each other in all ways, to deepen practical cooperation."

Hu and Putin also talked up diplomatic ties between their countries, which have taken closely aligned positions in talks meant to end North Korea's nuclear weapons programme and stem Iran's nuclear ambitions.

In a joint declaration on Monday, the two presidents said the standoff over Iran's nuclear programme "should be resolved exclusively in a peaceful way," and welcomed the "positive dynamic" in six-party talks aimed at curbing North Korea's nuclear programme.

But there were grumbles in Russia's press about the fast growth of Chinese imports to Russia.

According to Russian customs service statistics, Russian exports to China grew by 21 percent last year to equal 16 billion dollars, while Chinese imports to Russia grew 80 percent to reach 13 billion dollars.

"Russia... can't be happy that it has nothing to offer except raw materials and weapons," the RBK business daily said.

Analyst Timofei Bordachev, of the journal Russia in Global Affairs, commented that "while the price of oil is high, Russia has no interest in developing its industrial sectors such as cars, aviation, or even arms and is able to play in the same weight category as China."

http://sg.news.yahoo.com/070327/1/47j8u.html


----------



## kvLin

Neo, the Chinese muslim population is believed to float between 18-24 million. there's no offical statistic coz Muslim is not a demographic category in China. 

and the Sino-PAK trade reached $5.247billion last year,with average rise of 23.13%,according to statistics by Chinese embassy in Pakistan.


----------



## Neo

kvLin said:


> Neo, the Chinese muslim population is believed to float between 18-24 million. there's no offical statistic coz Muslim is not a demographic category in China.
> 
> and the Sino-PAK trade reached $5.247billion last year,with average rise of 23.13%,according to statistics by Chinese embassy in Pakistan.



Thanks for the update KvLin!  
Keep posting!


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## Neo

*China to invest $13bn in Tibet *

BEIJING: China has pledged to invest 100bn yuan ($13bn) in Tibet over the next four years, building the worldÃ¢â¬â¢s highest airport and offering development in an apparent bid to boost an image tarnished by reported human rights abuses.

The money would be spent on 180 projects in the years up to 2010, including extending the predominantly Buddhist regionÃ¢â¬â¢s first railway, Xinhua news agency said. China planned to extend the availability of drinking water, electricity and telephone lines to herding communities and build a railway from the regional capital Lhasa to Xigaze, the remote Himalayan regionÃ¢â¬â¢s second-largest city.

The plans also included the building of the worldÃ¢â¬â¢s highest airport at Ngari in the west. TibetÃ¢â¬â¢s fourth civilian airport will be higher even than the 4,334 metres (14,220 ft) above sea level of current record holder Qamdo airport in eastern Tibet. The regional governmentÃ¢â¬â¢s vice-chairman, Hao Peng, said the investment would be tilted towards herding regions Ã¢â¬Åso farmers and herders and the grassroots population will fully enjoy the fruits of reform and developmentÃ¢â¬Â, Xinhua reported.

http://www.thenews.com.pk/daily_detail.asp?id=48648


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## Neo

Wednesday, March 28, 2007 

*Russia eyes China hi-tech at presidential summit *

MOSCOW: Chinese President Hu Jintao opened a giant trade fair alongside Russian leader Vladimir Putin on Tuesday, the second day of a visit intended to boost energy shipments and push trade to new highs. 

The two presidents launched ChinaÃ¢â¬â¢s biggest-ever trade fair in a foreign country, where nearly 200 Chinese companies are showcasing their products in a sign of the growing economic ties between the neighboring countries.

Ã¢â¬ÅWe are particularly interested in exhibitions devoted to innovative and information products, aviation, aeronautics and energy, the nuclear industry,Ã¢â¬Â Putin said, presiding over a 20,000-square-metre (24,000-square-yard) display of products ranging from silk to high technology.

Ã¢â¬ÅIncreasing numbers of Russian and Chinese entrepreneurs are beginning to make promising technological and industrial transactions in joint investment and innovation projects,Ã¢â¬Â he said.

Russia wants ChinaÃ¢â¬â¢s help in kick-starting its high-technology sphere in exchange for helping to fill ChinaÃ¢â¬â¢s huge energy needs, analysts say.

The Chinese president on Monday achieved one of his key goals for the visit when he won an agreement for increased deliveries of Russian oil by rail.

Those deliveries should jump from the 11 million tonnes shipped in 2006 to 15 million tonnes per year, Russian Railways head Vladimir Yakunin told reporters.

China received a total of 15 million tonnes of Russian oil last year, and analysts say it is eager to secure guarantees for more.

In return, Russia wants to learn from ChinaÃ¢â¬â¢s example as one of the worldÃ¢â¬â¢s fastest-growing economies, former prime minister Yevgeny Primakov said.

Ã¢â¬ÅWe are studying ChinaÃ¢â¬â¢s experience closely,Ã¢â¬Â he told reporters at the fair. China and India Ã¢â¬Åare growing twice as fast as the United States. The question is: To whom does the future of the world belong?Ã¢â¬Â

Hu continues his energy quest Tuesday evening with a visit to Tatarstan, a mainly Muslim province in central Russia that has extensive oil reserves. The Chinese president will meet there on Wednesday with the regionÃ¢â¬â¢s leader Mintimir Shaimiyev.

New deals in other sectors should include plans to build a 300-million-dollar Chinese business center in Moscow and a contract to deliver 100,000 tonnes of Russian steel products worth about 500 million dollars by 2011, business daily Vedomosti reported Tuesday.

Agreements have already been signed between Russian and Chinese banks and space agencies. Russian media earlier reported that deals worth four billion dollars would be signed during HuÃ¢â¬â¢s visit.

Meeting Prime Minister Mikhail Fradkov on Monday morning, Hu said: Ã¢â¬ÅBoth sides should use this chance to strengthen trust in each other in all ways, to deepen practical cooperation.Ã¢â¬Â

Hu and Putin talked up strong diplomatic ties between their countries, which have taken closely aligned positions in talks meant to end North KoreaÃ¢â¬â¢s nuclear weapons programme and stem IranÃ¢â¬â¢s nuclear ambitions.

In a joint declaration Monday, the two presidents said the standoff over IranÃ¢â¬â¢s nuclear programme Ã¢â¬Åshould be resolved exclusively in a peaceful way,Ã¢â¬Â and welcomed the Ã¢â¬Åpositive dynamicÃ¢â¬Â in six-party talks aimed at curbing North KoreaÃ¢â¬â¢s nuclear programme.

Among the possible sources of discord during HuÃ¢â¬â¢s visit were Russian concerns about ChinaÃ¢â¬â¢s space ambitions, Chinese worries about the quality of Russian arms imports, and delays in building a Russian oil pipeline branch to the Chinese city of Daqing, business daily Kommersant said.

Both sides said bilateral trade jumped over the past year, though their statistics differed: China said trade grew 15 percent in 2006, while Russia said trade grew 43 percent over the same period.

http://www.dailytimes.com.pk/default.asp?page=2007\03\28\story_28-3-2007_pg5_25


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## Neo

Wednesday, March 28, 2007 

*China energy firm to double Iran investment*

BEIJING: ChinaÃ¢â¬â¢s biggest energy firm will double its spending on an ageing Iranian oilfield and aims to start drilling this year, pushing forward one of its few development projects in the worldÃ¢â¬â¢s fourth-largest oil exporter.

China National Petroleum Corp (CNPC) recently renegotiated terms with the National Iranian Oil Company and raised its investment to about US$150mn to produce oil from the Masjed-i-Suleiman (MIS) field, an industry official familiar with the project told Reuters. The service contract was initially signed in 2004.

Tehran, under increasing US pressure over its atomic programme, is lining up oil and gas deals with international companies including Chinese state firms, Royal Dutch/Shell and SpainÃ¢â¬â¢s Repsol.

Under the revised deal, which has yet to win final approval from the Iranian government, CNPC was expected to produce up to 25,000 bpd from Masjed-i-Suleiman, a discovery made nearly a century ago that marked the first commercial find in the Middle East.

CNPC, experienced in coaxing more oil from ageing fields, would under the original contract have received a share of oil revenue in the first three years of production, said the official, who declined to elaborate on the changes made to the terms or the number of wells to be sunk. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\28\story_28-3-2007_pg5_32


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## Neo

Wednesday, March 28, 2007 

*China paying euros for Iranian oil *

BEIJING: Iran is pressuring its oil customers to start paying in currencies other than US dollars and many have begun to comply, oil executives here say.

ChinaÃ¢â¬â¢s state-run Zhuhai Zhenrong Trading, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moved to diversify its foreign reserves away from US dollars.

The Chinese firm, which buys more than a tenth of exports from the worldÃ¢â¬â¢s fourth-largest crude producer, has changed the payment currency for the bulk of its contract of roughly 240,000 barrels per day, Beijing sources said. Ã¢â¬ÅMost of ChinaÃ¢â¬â¢s purchases have shifted to euro. ItÃ¢â¬â¢s not difficult so long as our banks can handle that,Ã¢â¬Â said a Chinese state oil trader.

Japanese refiners, who buy about 500,000 barrels per day of Iranian crude, nearly a quarter of IranÃ¢â¬â¢s 2.2-million-barrel daily shipments, continue to pay in dollars but are willing to shift to yen if asked, industry sources and officials said separately.

Iranian officials have said for months that more than half their customers have switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation. The price of Iranian oil is still quoted in dollars.

The shift, being watched closely by foreign exchange traders, comes amid an extended dispute between Tehran and Washington over IranÃ¢â¬â¢s nuclear program. China, which depends on Iran for about 12 percent of its imported crude oil, has at times used the threat of its United Nations veto to blunt Western measures.

The UN Security Council imposed new sanctions on Iran on Saturday as Tehran refused to halt its nuclear program, targeting arms exports and 28 Iranian individuals and entities.

IranÃ¢â¬â¢s central banker said Tuesday that Tehran had cut its holdings of dollar assets to a minimum level of about one-fifth of its foreign reserves in response to US hostility.

Hojjatollah Ghanimifard, head of international affairs at National Iranian Oil, said last week that about 60 percent of IranÃ¢â¬â¢s oil income was in non-dollar currencies as almost all of its European clients and some of its Asian customers had agreed to make non-dollar payments. Iran is ChinaÃ¢â¬â¢s third-largest crude supplier with daily volume of 335,000 barrels last year. Sinopec, AsiaÃ¢â¬â¢s top refiner, is still paying in US dollars, said a Sinopec trader.

Japanese buyers, including the countryÃ¢â¬â¢s top refiner, Nippon Oil , said they had all received informal encouragement from Iran to pay on non-dollar terms, but were awaiting an official request. Ã¢â¬ÅWe are looking at it so that we can switch the currencies any time, but we have not gotten any official requests from them. We are doing the transactions in dollars,Ã¢â¬Â Nippon Oil chairman Fukuaki Watari told reporters last week. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\28\story_28-3-2007_pg5_33


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## Neo

Wednesday, March 28, 2007 

*China likely to overtake US as biggest carbon emitter this year *

BEIJING: In a development that could put pressure on its government to take more action on climate change, China appears on course to overtake the United States this year as the worldÃ¢â¬â¢s biggest emitter of carbon dioxide, according to an estimate based on Chinese energy data.

ChinaÃ¢â¬â¢s emissions rose about 10 percent in 2005, a senior US scientist has estimated, while data from Beijing show that fuel consumption rose more than 9 percent in 2006, suggesting that China would easily pass the United States in emissions this year.

This would increase pressure on China to do more to slow its emissions as part of the international talks on extending the United NationsÃ¢â¬â¢ Kyoto Protocol on global warming beyond 2012.

Thirty-five developed countries have agreed to cut emissions under Kyoto, and they want others - especially the United States and China - to do more.

Carbon dioxide is produced by burning fossil fuels like coal, oil and gas for heat, power and transportation. Most scientists say it is an important contributor to global warming.

Gregg Marland, a senior staff scientist at the US Carbon Dioxide Information Analysis Center, used fossil fuel consumption data from the oil company BP to calculate ChinaÃ¢â¬â¢s carbon dioxide emissions in 2005 at 5.3 billion tons, an increase of 10.5 percent from the year before, versus 5.9 billion tons for the United States, an increase of less than 0.1 percent. In 2006, Chinese fuel consumption rose 9.3 percent to the equivalent of 2.4 billion tons of coal, Xu Dingming, the deputy head of the office that advises China on energy policy, said last week.

This was faster than BPÃ¢â¬â¢s estimate of a 9 percent increase in ChinaÃ¢â¬â¢s oil, gas and coal consumption in 2005, to 1.45 billion tons of oil equivalent.

The International Energy Agency, which advises 26 industrialized nations, said last November that, based on current trends, China would overtake the United States as the worldÃ¢â¬â¢s biggest carbon emitter before 2010.

Americans remain the biggest emitters per capita. According to UN data for 2003, US individuals were responsible for 20 tons per capita of carbon dioxide emissions, compared with 3.2 tons in China and a world average of 3.7 tons.

EU orders cuts by 2 countries: The European Commission on Monday ordered Poland and the Czech Republic to slash proposed limits on future industrial emissions, sparking a battle over the countriesÃ¢â¬â¢ plans to fight climate change, Reuters reported from Brussels.

The commission cut PolandÃ¢â¬â¢s proposed carbon dioxide emissions limit for 2008-12 by 26.7 percent and the Czech limit by 14.8 percent in its latest move to shore up the emissions trading system, the EUÃ¢â¬â¢s primary tool for curbing global warming and meeting emission reductions goals under the Kyoto Protocol.

Poland, which already has had disagreements with the commission over environmental law, and the Czech Republic, whose president has likened environmentalism to communism, threatened to sue over the decisions.

http://www.dailytimes.com.pk/default.asp?page=2007\03\28\story_28-3-2007_pg5_36


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## Neo

*Chinese economist warns on risks of overheating *

BEIJING: ChinaÃ¢â¬â¢s economy is seeing greater risks of overheating, necessitating further steps by Beijing to keep the worldÃ¢â¬â¢s fourth-largest economy from running out of control, a government economist said on Wednesday.

Chen Dongqi, vice-president of the Academy of Macroeconomic Research, told a forum that the economy showed few signs of slowing and that the annual growth rate for the first quarter would probably exceed the pace of 10.7 per cent in all of 2006.

Inflationary pressures were also growing, Chen said, forecasting a 2.5 per cent rise in the consumer price index in the first quarter. 

Annual consumer inflation picked up to 2.7 per cent in February, from 2.2 per cent in January.

Ã¢â¬ÅI agree that the economy has yet to become overheated overall at present, but I might change my mind if the situation continues like this,Ã¢â¬Â said Chen, whose think-tank is affiliated with the National Development and Reform Commission (NDRC), the powerful economic planning agency.

Ã¢â¬ÅThe pressure is getting stronger, and action should be taken as quickly as possible to keep the risks from accumulating,Ã¢â¬Â he said.

The central bank has raised banksÃ¢â¬â¢ reserve requirements five times and increased benchmark interest rates three times since last April to rein in credit and investment. 

Beijing has also introduced a range of other measures to cool growth, including getting tougher in approving new investment projects.

Chen suggested that the PeopleÃ¢â¬â¢s Bank of China step up its efforts at soaking up liquidity by issuing more bills and further increasing banksÃ¢â¬â¢ required reserves.

He also said more cuts in tax rebates for exports of polluting and energy-intensive products would help authorities temper economic growth.

But Chen said the central bank should be cautious in increasing interest rates further because any such change could have a big impact on mortgage holders.

http://www.thenews.com.pk/daily_detail.asp?id=48799


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## Neo

*BoeingÃ¢â¬â¢s China partner marks delivery of 737 horizontal stabilisers *

SHANGHAI: Boeing and its Chinese partner marked the 1,000th delivery of horizontal stabilisers for the Next-Generation 737 aircraft on Wednesday, illustrating ChinaÃ¢â¬â¢s rising manufacturing expertise as it launches its own bid to produce homebuilt commercial aircraft.

The milestone comes as the Shanghai Aircraft Manufacturing Factory is accelerating production of the components to 21 sets shipped each month, up from just seven per month at the start of the contract in 1999, the two companies said in a news release.

ÃÂ¬TodayÃ¢â¬â¢s smooth delivery marks an important milestone for SAMF to enhance its subcontracting production of aviation components,ÃÂ® SAMF President Wang Wenbin was quoted as saying.

Boeing has contracted with SAMF for 1,500 horizontal stabilisers, the part of the tail section that sticks out from either side of the fuselage.

Boeing began selling planes to China in the 1970s, and 4,200 of the companyÃ¢â¬â¢s planes now flying contain major parts and assemblies that were built in China, the news release said.

Chinese parts feature in every one of BoeingÃ¢â¬â¢s commercial aircraft programs, including the new 787 Dreamliner, Carolyn Corvi, BoeingÃ¢â¬â¢s vice president and general manager for airplane programs, said in the release.

Much of that business has been with SAMFÃ¢â¬â¢s parent company, Shanghai Aviation Industrial Corp, itself a subsidiary of the massive state-owned China Aviation Industry Corporation I, or AVIC I.

ÃÂ¬Our work together has been mutually beneficial and has contributed to the success of Boeing commercial airplanes and ChinaÃ¢â¬â¢s aviation industry,ÃÂ® Corvi said.

As in auto manufacturing and other industries, China has worked hard to parlay experience gained through foreign partnerships into producing its own wholly domestically developed products.

AVIC I is currently building ChinaÃ¢â¬â¢s first commercial jet airliner, the ARJ-21, expected to seat 70-110 passengers. ChinaÃ¢â¬â¢s top leaders this month also approved a program to build large commercial aircraft, something that could potentially challenge the domination of Boeing and Airbus in the countryÃ¢â¬â¢s fast-growing aviation market.

http://www.thenews.com.pk/daily_detail.asp?id=48797


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## Neo

Thursday, March 29, 2007 

*China reports major offshore oil find *  

BEIJING: China has found a huge offshore oil field that could become the energy-hungry countryÃ¢â¬â¢s biggest new oil source in a decade, a state news agency said Wednesday.

The scale of the discovery, if confirmed, would be welcome news to Beijing, which is struggling to reduce reliance on oil imports to fuel its booming economy. China is the worldÃ¢â¬â¢s No. 2 oil consumer behind the United States and its oil imports rose 14.5 percent last year.

PetroChina, which found the field in Bohai Bay off ChinaÃ¢â¬â¢s east coast, estimated its reserves at 2.2 billion barrels, the Xinhua news agency said, citing unidentified company sources.

Ã¢â¬ÅThe newly found oil field is the largest China has discovered over the past 10 years,Ã¢â¬Â the Xinhua report said.

PetroChina, ChinaÃ¢â¬â¢s biggest oil company, said last week that it had found a new oil field in Bohai Bay but gave no details. PetroChina spokesmen refused Wednesday to release any information.

If the reported size is accurate, Ã¢â¬ÅChina will have added a valuable upstream asset that can rival the countryÃ¢â¬â¢s leading oil production centers in the future,Ã¢â¬Â Steven Knell, an energy analyst for the consulting firm Global Insight, wrote in a report to clients.

Despite its size, it was unclear how the field would affect ChinaÃ¢â¬â¢s need for imports. Daily production could reach 200,000 barrels within three years, Xinhua said. But that still would be equal to just a fraction of ChinaÃ¢â¬â¢s imports of 2.9 million barrels per day.

China met its oil needs from domestic fields until the late 1990s, when it became a net importer. Demand is rising by about 7 percent a year, but domestic production in 2006 rose by just 1.7 percent. Imports accounted for 47 percent of consumption last year.

Economists say Chinese oil demand, driven by blistering economic growth that reached 10.7 percent in 2006, has strained world supplies and pushed up prices.

The biggest recent domestic oil discovery, also made by PetroChina, was a field found in the mid-1990s in the Tarim Basin in ChinaÃ¢â¬â¢s desert northwest.

Chinese oil companies have been spending heavily on exploration in the northwestern and coastal areas, but results have been disappointing.

Elsewhere, state oil companies have spent billions of dollars to gain access to oil and gas supplies in Central Asia and Africa.

State-run Korea Oil has agreed to team up with AsiaÃ¢â¬â¢s biggest oil producer, China National Petroleum, to cooperate in the hunt for overseas resources, South Korean officials said Wednesday, Reuters reported from Seoul.

The informal link between China and South Korea, AsiaÃ¢â¬â¢s major energy consumers, will give both countries a competitive edge over major oil companies in securing stakes in oil and gas fields, the Energy Ministry said.

http://www.dailytimes.com.pk/default.asp?page=2007\03\29\story_29-3-2007_pg5_28


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## Neo

*China starts assembly of regional jet, aims higher*

30 March 2007 

SHANGHAI - China launched production of a 90-seat passenger jet on Friday, its first home-grown regional jet and a major step toward creating a national champion that it hopes could challenge Boeing and Airbus.

Ã¢â¬ÅWe are fighting a crucial battle now,Ã¢â¬Â Li Yuhai, deputy general manager at state-owned manufacturer AVIC I, told a crowd of government officials and journalists at a grand opening ceremony for the ARJ21 jetÃ¢â¬â¢s assembly plant.

The company hopes its new jet, due for its first test flight next spring and delivery from September 2009, will compete with aircraft from BrazilÃ¢â¬â¢s Embraer and CanadaÃ¢â¬â¢s Bombardier.

Ã¢â¬ÅWe are fighting for our motherland and for the people,Ã¢â¬Â Li said.

The jetÃ¢â¬â¢s success would pave the way for a multi-billion dollar project to develop large aircraft that could wean Chinese airlines from their reliance on Boeing and Airbus, industry executives said.

That project has been approved by the State Council, ChinaÃ¢â¬â¢s cabinet, and is due to kick off soon, the executives said.

AVIC I, which also makes fighter planes and bombers, launched the ARJ21 project early in the decade, banking on growth in ChinaÃ¢â¬â¢s aviation market.

Chuck Nugent, general manager for GE AviationÃ¢â¬â¢s small engine division, forecast total demand for the ARJ21 jet at 500 to 700 over the next 20 years.

The General Electric unit supplies engines for the ARJ21.

*Large aircraft*

AVIC I has received 71 orders for the ARJ21-700, which can be configured with 78 to 90 seats.

The orders so far are all from domestic firms, but the company is targeting markets overseas and aims to get five orders from the United States this year, two company officials said.

The government has also approved plans to develop and manufacture passenger jets with more than 150 seats and air freighters that could carry loads of 100 to 110 tonnes, Zhang Jiuen, head of the science and technology division of AVIC I, said on the sidelines of the ceremony.

ChinaÃ¢â¬â¢s two state-run aircraft makers, AVIC I and AVIC II, would be involved in the project, which is also open to foreign investment, a senior government official said.

A prototype could be ready within 10 years, he added.

Several industry executives said on Friday they were in favour of the project, given the double-digit rate of growth in ChinaÃ¢â¬â¢s air passenger traffic in recent years.

The country will need about 2,650 new passenger aircraft over the next 20 years, worth $289 billion, according to recent projections from Airbus, a unit of European aerospace group EADS.

But some analysts have expressed scepticism about the commercial prospects of a big passenger aircraft designed and manufactured entirely in China, given the countryÃ¢â¬â¢s lack of experience in making large jets for civilian use.

Ã¢â¬ÅCompeting with Boeing or Airbus is not an easy thing,Ã¢â¬Â said a senior executive with a major European component maker. Ã¢â¬ÅI believe this is what will happen, but it could take at least 20 years.Ã¢â¬Â

Many aviation executives, however, were optimistic about the future of the ARJ21, and several from AVIC I said they were confident it could become a major competitive force globally in less than 10 years.

Ã¢â¬ÅWe have sent rockets into the sky. Why shouldnÃ¢â¬â¢t our ARJ21 take off?Ã¢â¬Â said one Chinese aviation executive, who declined to be named. 

http://www.khaleejtimes.com/Display...h/business_March826.xml&section=business&col=


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## Neo

*US, Saudi and Chinese companies announce $5 billion energy deal *

BEIJING (March 31 2007): US oil giant Exxon Mobil, Saudi Aramco and Sinopec announced here Friday two joint ventures worth about five billion dollars to operate 750 service stations and a petrochemical refinery in China.

The announcement of the project, Exxon Mobil's largest single investment in China, marked the culmination of 12 years of preparations, according to the American company. "It's our biggest project so far in China," Sarah Du, a Beijing-based Exxon Mobil spokeswoman, told AFP.

"Developing this type of joint venture is a very complicated process and Fujian is the most complex so far in China due to the nature of its integrated business," she said. In a joint statement, the companies called the two joint ventures "the first fully integrated refining, petrochemicals and fuels marketing project with foreign participation in China."

The refining joint venture, which will start operations in early 2009, will expand one that already existed in the south-eastern province of Fujian between Sinopec and the Fujian government. It will lead to a tripling of the production of refined Saudi Arabian crude to 240,000 barrels per day, the statement said.

A joint venture co-owned by Sinopec, China's top refiner, has a 50 percent stake in the venture, while Exxon Mobil and Saudi Aramco each have 25 percent. The second joint venture will operate some 750 service stations and a network of terminals across Fujian province, according to the statement.

Sinopec holds a 55 percent stake in the service station venture, with Exxon Mobil and Saudi Aramco each holding 22.5 percent. The partnership, which aims to meet China's rapidly growing demand for petroleum products and petrochemicals, also includes a long-term crude supply agreement with Saudi Aramco, the statement said. "The co-operation benefits all parties. All the three companies get what they need," said Qiu Xiaofeng, an oil analyst with Everbright Securities.

"Sinopec can take advantage of capital and refining technologies provided by Exxon Mobil, and Exxon Mobil gets access to China's wholesale oil products market." The three companies said the government had approved both joint ventures. A breakdown for the investment for each of the ventures were not provided.

http://www.brecorder.com/index.php?id=545059&currPageNo=3&query=&search=&term=&supDate=


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## Neo

Saturday, March 31, 2007 

*Exxon, Aramco China venture costs rise to $5b*

BEIJING: Saudi Aramco and US giant ExxonMobil CorpÃ¢â¬â¢s first big Chinese downstream oil venture has grown to $5 billion, much more than planned, the firms said on Friday as they closed the books on 12 years of talks. 

When the venture with top refiner Sinopec Corp was initially agreed in 2005, estimated investment for the refining and petrochemicals units in southeastern Fujian was $3.5 billion. 

Since then, the partners have added a marketing venture with 750 filling stations and a network of terminals, while refinery costs have risen worldwide because of a tight contractor market and escalating prices for raw materials. 

Speaking after a ceremony to commemorate final approval of the deal, Sinopec CorpÃ¢â¬â¢s President Wang Tianpu told Reuters the cost difference was due entirely to the retail and wholesale operation. Aramco and Exxon Mobil declined immediate comment. 

The deal is a coup for Exxon Mobil, the worldÃ¢â¬â¢s biggest publicly traded firm, which gets a rare and coveted foothold in the second-largest oil market. It also gives the top oil exporter Saudi Arabia a guaranteed customer for its future output. 

But it may also mark the end of an era of cooperation with major Western oil companies and clear preference for deals with major resource nations, leaving firms without any downstream ties like Chevron or ConocoPhillips in the cold. Ã¢â¬ÅThis (deal) was one of the few survivors from ChinaÃ¢â¬â¢s previous round of foreign cooperation,Ã¢â¬Â said Yan Kefeng, of Cambridge Energy Research Associates (CERA). China, an oil exporter 15 years ago, is increasingly anxious about its dependence on imports, now near the halfway point.

http://www.dailytimes.com.pk/default.asp?page=2007\03\31\story_31-3-2007_pg5_20


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## Neo

Saturday, March 31, 2007 

*US may impose economic sanctions on China*

WASHINGTON: The Bush administration, facing heavy pressure to deal with soaring trade deficits, is considering imposing economic sanctions on China in a dispute over government subsidies. 

If the administration decides to take action, it would open up a new area in which American companies being battered by a flood of Chinese imports could seek protection and would reverse 20 years of US trade precedent.

Commerce Secretary Carlos Gutierrez was to announce the governmentÃ¢â¬â¢s decision on Friday in a case brought by NewPage Corp, which contends that imports of high-gloss paper from China represent unfair competition to US-made paper.

The government could impose penalty tariffs on Chinese paper imports on a preliminary basis subject to a final determination by Commerce later this year. The government of China suffered an initial defeat on Thursday when a US court ruled against its effort to stop Gutierrez from going forward with the case.

For two decades, the US government has held that American companies did not have a right to challenge government subsidies granted to their foreign competitors if those companies were in Ã¢â¬Ånonmarket economiesÃ¢â¬Â such as China. However, last year, the administration let it be known that it was ready to consider reversing that the policy is facing heavy political pressure from Congress, now in the hands of Democrats, to deal with soaring US trade deficits, including a record $232.5 billion imbalance with China.

China asked the US Court of International Trade, a federal court which handles trade matters, to rule that the administration did not have the right to reverse established trade policy without legislation or a full regulatory hearing.

The court ruled Thursday that the government does have the authority to consider penalty tariffs against China in disputes involving government subsidies.

Judge Gregory W. Carman, who heard the case for the trade court, rejected ChinaÃ¢â¬â¢s request to grant a temporary injunction to stop the US government from proceeding.

This trade dispute is being followed closely by a number of other American industries from steel to furniture that have been battered in recent years by a flood of imports from China.

US companies have always had the right to file dumping cases against China, which can result in penalty duties if Chinese companies are found to be selling products in the United States below cost.

But the ability to file subsidy cases could significantly expand the level of penalties that Chinese imports could face, giving American producers more protection.

The fact that the Bush administration made it known last year that it was now willing to consider cases against China involving government subsidies was seen as part of a new get-tough approach in the face of soaring US trade deficits.

Treasury Secretary Henry Paulson is leading an effort to pressure China to allow its currency to rise in value against the dollar. American manufacturers contend that China is devaluing its currency by as much as 40 percent to give the country unfair trade advantages.

http://www.dailytimes.com.pk/default.asp?page=2007\03\31\story_31-3-2007_pg5_26


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## Neo

Saturday, March 31, 2007 

*China bank sees slow economic growth in 2007*

BEIJING: ChinaÃ¢â¬â¢s economy is expected to grow 10 percent this year, slowing from 10.7 percent expansion last year, according to a new central bank forecast reported Friday by a state news agency. 

That projection is line with outside forecasts and comes amid government efforts to curb a boom in investment in factories and other assets that Chinese leaders worry could ignite a financial crisis.

The central bank also expects inflation to be higher this year than it was in 2006, hitting 2.3 percent, up from the 1.5 percent rate for last year, the Xinhua News Agency said.

The Asian Development Bank said this week it expects ChinaÃ¢â¬â¢s annual growth rate to decline gradually to about 9 percent through 2011.

In a separate report, the Chinese governmentÃ¢â¬â¢s State Information Center forecast economic growth of about 11 percent for the first three months of this year, Xinhua said.

http://www.dailytimes.com.pk/default.asp?page=2007\03\31\story_31-3-2007_pg5_27


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## Neo

*Hainan Airlines venture to buy 100 Embraer jets *

SHANGHAI: Hainan Airlines Co, ChinaÃ¢â¬â¢s fourth-largest air carrier, and its parent have set up a regional airline which will buy 100 commercial jets from BrazilÃ¢â¬â¢s Embraer by 2012, the Xinhua news agency said on Saturday. 

Grand China Express, which was launched in the northern Chinese port city of Tianjin on Friday with a 29-strong fleet of 32-seat, Dornier 328-300 jets, will purchase 50 ERJ145s and 50 EMB190s aircraft from the Brazilian plane maker, Xinhua said. 

Embraer in August won its biggest order in the region when Hainan Airlines and its parent signed a deal for the planes worth $2.7 billion at list prices before potentially heavy discounts. Xinhua said Grand China, now the countryÃ¢â¬â¢s largest regional airline, will initially operate on 78 routes linking 54 cities. And by 2012, it will fly on more than 450 routes linking at least 90 cities, taking more than 90 per cent of the domestic regional aviation market, it quoted Hainan Airlines chairman Chen Feng as saying. Regional aviation, also known as feeder-line services, operates between small cities, with routes typically ranging from 500 to 1,000 km. The services usually use aircraft which seat less than 100 passengers, according to Xinhua.

http://www.thenews.com.pk/daily_detail.asp?id=49244


----------



## Neo

*China to build 12 new cross-border highways *

BEIJING (April 06 2007): China plans to build 12 new cross-border highways to improve the road links with Pakistan and Central Asia. All the new roads will start in Northwest China's Xinjiang Uygur Autonomous Region and will stretch to neighbouring Russia, Kazakhstan, Tajikistan and Pakistan, China News Service reported, citing an official of the Department of Foreign Transport.

The longest of the 12 will link Xinjiang's capital Urumqi, Ilkshtan, Tashkent, Mashhad, Teheran, Istanbul and some European countries. This road, of which 1,680 kilometres will be in Xinjiang, is scheduled to be built before 2010.

http://www.brecorder.com/index.php?id=547255&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*No signs of overheating in China: WB *

BEIJING: China will see Ã¢â¬Åvery strongÃ¢â¬Â growth in 2007, but the government does not need to be too concerned about bottlenecks and other signs of overheating, the World Bank said on Thursday.

While domestically the worldÃ¢â¬â¢s fourth-largest economy seems to have few problems accommodating fast expansion, there are, however, vast external imbalances, the World Bank warned.

Ã¢â¬ÅWe continue to think that growth in China will remain very strong this year, and we think that itÃ¢â¬â¢s OK,Ã¢â¬Â said Louis Kuijs, senior economist with the World Bank in Beijing.

Ã¢â¬ÅWe donÃ¢â¬â¢t think the government needs to be overly worried about that,Ã¢â¬Â he told a briefing in the Chinese capital, as the World Bank released its six-monthly report on East AsiaÃ¢â¬â¢s economic and social health.

ChinaÃ¢â¬â¢s central bank said last week it expects the economy to expand by 10 per cent this year, marking the fifth consecutive year of double-digit economic growth following a 10.7 per cent rise in 2006.

The World Bank officially forecasts 9.6 per cent growth in the Chinese economy this year, but suggested on Thursday that it will probably be more than that, based on macroeconomic data released so far in 2007.

Ã¢â¬ÅGrowth is high, but itÃ¢â¬â¢s not obvious that the economy is overheated from the macroeconomic perspective,Ã¢â¬Â said Kuijs.

An overheated economy usually shows up in soaring inflation or bottlenecks such as goods piling up in the ports, he said.

Ã¢â¬ÅWe donÃ¢â¬â¢t observe those kinds of tensions, and we think the macroeconomic situation is quite benign,Ã¢â¬Â he said.

But the World Bank economist pointed out there were growing imbalances between China and the rest of the world, in the form of a huge Chinese trade surplus.

Ã¢â¬ÅA lot of the demand that we see in the Chinese economy is actually not coming from Chinese households and Chinese companies, itÃ¢â¬â¢s coming from foreign households and companies,Ã¢â¬Â he said.

Ã¢â¬ÅIf there is one macroeconomic tension it is this external imbalance.Ã¢â¬Â

In February, the last month for which data are available, China posted a near-record $23.8-billion trade surplus, almost 10 times the year-earlier figure.

ChinaÃ¢â¬â¢s surplus last year soared 74 per cent to hit a record $177.5 billion but some economists are pencilling in $230 billion for 2007.

http://www.thenews.com.pk/daily_detail.asp?id=49782


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## Neo

April 06, 2007 
*Chinese economy*

BEIJING, April 5: China will see Ã¢â¬Åvery strongÃ¢â¬Â growth in 2007, but the government does not need to be too concerned about bottlenecks and other signs of overheating, the World Bank said on Thursday.

While domestically the world's fourth-largest economy seems to have few problems accommodating fast expansion, there are, however, vast external imbalances, the World Bank warned.

Ã¢â¬ÅWe continue to think that growth in China will remain very strong this year, and we think that it's OK,Ã¢â¬Â said Louis Kuijs, senior economist with the World Bank in Beijing.

Ã¢â¬ÅWe don't think the government needs to be overly worried about that,Ã¢â¬Â he told a briefing in the Chinese capital, as the World Bank released its six-monthly report on East Asia's economic and social health.

China's central bank said last week it expects the economy to expand by 10 per cent this year.

http://www.dawn.com/2007/04/06/ebr24.htm


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## Janbaz

*China major refineries to keep run rates steady* 

BEIJING: China&#8217;s top oil refineries will keep run rates mostly steady this month despite a full shutdown at one major plant as refining margins stay firm and fuel demand picks up.

Twelve plants, mostly on the eastern and southern seaboard and accounting for more than a third of China&#8217;s capacity, will process 2.3 million barrels per day (bpd) of crude in April, only marginally lower that the 2.317 million bpd in March, a Reuters survey found.

Southern China&#8217;s Guangzhou refinery plans to lift its runs by a fifth to near full rates after it completed an expansion late last year.

Guangzhou, a unit of Asian top refiner Sinopec Corp, early doubled its primary crude run capacity and added severe refining units to process higher sulphur crude oil.

In March, Guangzhou refinery raised its rate by 28 per cent.

Export-oriented refiner WEPEC halted its crude processing this month according to a plan that will last the whole of April.

Sinopec&#8217;s Zhenhai refinery, the country&#8217;s largest as measured by capacity, will moderately increase processing later this month after it finishes some regular maintenance, but runs for the whole month will remain flat from March, said a source close to the plant.

Overall, runs are expected to stick to current levels, barring any surprise overhauls in refineries, analysts said.

With the plowing season in spring coming and the week-long May Day holidays approaching, demand for diesel and gasoline is set to rise, said Qiu Xiaofeng, an oil analyst at Everbright Securities in Shanghai.

Qiu said healthy gross margins will also encourage refineries to keep their facilities humming. US rude has retreated from a spike last week when geopolitical jitters centered around Iran sent prices above $68 a barrel.

&#8220;The profit Sinopec earned in the first quarter of this year might be higher than it got for the whole year of 2006,&#8221; Qiu said.

Sinopec&#8217;s Chairman Chen Tonghai was quoted months ago as saying the firm&#8217;s refining business could break even if benchmark crude prices fell to about $55 a barrel.

&#8220;But some of the oil Sinopec imported is cheaper than the international benchmark, as they contain higher sulphur content,&#8221; said an industry analyst in Beijing, who declined to be named.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=49929


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## Neo

*China bank says reserve hike to have little impact *

SHANGHAI: ChinaÃ¢â¬â¢s third increase in bank reserve requirements so far this year will have little impact on the lending business of Bank of China as market liquidity remains ample, a senior executive said on Saturday.

The increase, announced by the central bank late on Thursday as part of BeijingÃ¢â¬â¢s effort to slow economic growth, will take the reserve requirement to 10.5 per cent for big banks and to 11.0 per cent for smaller lenders from April 16.

Ã¢â¬ÅFrom a macroeconomic perspective, the reserve hike is a good thing for China,Ã¢â¬Â said Zhu Min, group executive vice president of Bank of China, the countryÃ¢â¬â¢s second largest lender.

Ã¢â¬ÅIn January and February, loan growth in the banking system was still too fast,Ã¢â¬Â he said on the sidelines of a financial meeting in Shanghai, ChinaÃ¢â¬â¢s financial hub.

Zhu expects that the central bank can soak up about 180 billion yuan ($23.32 billion) from the banking system, which could otherwise have been lent to firms and households, through the increase of the bank reserve requirement, he told Reuters.

Money and credit growth rose sharply in January and February, reviving fears of an acceleration in investment in fixed assets such as factories and flats that would undermine a year-long central government drive to curb wasteful capital spending.

Ã¢â¬ÅIn such a situation, I think reserve hikes are good for the stable growth of ChinaÃ¢â¬â¢s macroeconomy,Ã¢â¬Â Zhu said. ChinaÃ¢â¬â¢s economy expanded by 10.7 per cent in 2006, its fourth consecutive year of double-digit growth.

Ã¢â¬ÅFrom a banking perspective, currently market liquidity is very good, so I donÃ¢â¬â¢t think the reserve hike will have any big impact on our business development and profit making,Ã¢â¬Â he said.

http://www.thenews.com.pk/daily_detail.asp?id=50088


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## Neo

*China Mobile plans new subsidiary for 3G business *

SHANGHAI: The parent of China Mobile Hong Kong the countryÃ¢â¬â¢s top cellphone operator, plans to set up a new subsidiary to run the third-generation wireless network, state media reported on Saturday.

The new unit would mainly be in charge of the construction and layout of ChinaÃ¢â¬â¢s homegrown TD-SCDMA Time Division Synchronous Code Division Multiple Access standard, according to a report published on the official Xinhua news agencyÃ¢â¬â¢s Web site.

The plan is aimed at avoiding issues over the origin of the large sums of capital being invested in TD-SCDMA, the news report said, citing an unidentified industry source.

Having parent company China Mobile, rather than its Hong Kong-listed unit, oversee the large amounts of capital flowing into TD-SCDMA projects meant the National Development and Reform Commission would be better able to steer the scale and direction of investment and support the project, the report added.

NDRC is ChinaÃ¢â¬â¢s top economic planner and is working with ministries to design the countryÃ¢â¬â¢s 3G strategy.

The tender for contracts to build the countryÃ¢â¬â¢s high-speed TD-SCDMA network has risen to 26.7 billion yuan from 18 billion yuan, mainly due to rising prices for equipment, Xinhua said. It added that the TD-SCDMA network would then be leased out to Hong Kong-listed China Mobile.

The results of China MobileÃ¢â¬â¢s tender for contracts to gear makers to build TD-SCDMA contracts are also expected to come out at the end of April, the report said.

ChinaÃ¢â¬â¢s 3G rollout now expected later this year or early next year by most analysts has been pushed back for years. The standard is expected to yield rapid Web and multimedia services.

Beijing is extending pre-commercial testing of the TD-SCDMA standard in trials that may last until end-October.

http://www.thenews.com.pk/daily_detail.asp?id=50087


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## Neo

Sunday, April 08, 2007 

*ABN AMRO, UCBH eye stake in ChinaÃ¢â¬â¢s Huishang *

SHANGHAI: Dutch financial services firm ABN AMRO and US community bank UCBH Holdings Inc. are among potential rivals seeking to buy a minority stake in ChinaÃ¢â¬â¢s mid-sized Huishang Bank, regulatory and banking sources said on Friday. 

ABN AMRO Holding NV has been in formal negotiations with Huishang Bank, based in the eastern Chinese province of Anhui, for at least six months, with the aim of becoming a strategic investor by buying about a 20 percent stake, the sources told Reuters. 

However, San Francisco-based UCBH, the parent company of United Commercial Bank, the largest bank specialising in serving Chinese-Americans in the United States, recently joined discussions with Huishang Bank, the sources said. 

UCBH hopes to buy a 10 to 20 percent stake in the bank, although UCBH and ABN AMRO have not submitted formal bids, the sources said. 

A senior executive for ABN AMRO in Shanghai declined to comment, while officials at Huishang and UCBH were not immediately available for comment. 

Last week, UCBH said it had agreed to buy Business Development Bank Ltd, a small Shanghai-based lender, for $205 million in cash, as part of its plans to expand in China over the next four to five years. 

Ã¢â¬ÅUCBH is little-known to bankers and consumers in China. The provincial government of Anhui definitely wants to get a well-known partner for Huishang Bank to boost the reputation of the bank as well as the province,Ã¢â¬Â said one source close to Huishang. 

Ã¢â¬ÅBut that doesnÃ¢â¬â¢t mean UCBH has no chance of beating ABN AMRO, as ABN AMRO is keen on getting as big a stake as possible and participation in management of the bank, while UCBH is not that aggressive at this point,Ã¢â¬Â said the source, who declined to be identified. 

Uncertainties: Huishang Bank opened for business in early 2006, the product of the merger of a handful of small city commercial banks and urban credit cooperatives in Anhui province. 

SingaporeÃ¢â¬â¢s DBS Group Holdings also approached Huishang Bank about a potential investment last year but the talks stalled over price and the size of the stake, the sources said. DBS declined to comment on the matter. 

ABN AMRO, the NetherlandsÃ¢â¬â¢ biggest bank, and British lender Barclays Plc entered exclusive merger talks in March after investors, led by British hedge fund TCI, pressured the Dutch bank to consider a sale or break-up to boost shareholder returns. 

The proposed merger of the two European financial giants creates potential uncertainties for ABN AMROÃ¢â¬â¢s strategy in China, the sources said, adding that there were signs ABN AMRO had become less enthusiastic in the talks with Huishang. 

ABN AMRO is separately planning to incorporate its Chinese unit domestically, under a Beijing-led campaign allowing foreign banks to offer yuan-based retail banking services without any restrictions. 

ABN AMRO plans to register its Chinese subsidiary in Shanghai, ChinaÃ¢â¬â¢s financial hub, while Huishang Bank, a regional lender, is not allowed to operate outside Anhui province, the sources said. 

BOC International, the investment banking arm of Bank of China, is working for Huishang as financial adviser in selecting a foreign investor, the sources said, adding that a formal bidding process could begin in the next few weeks. Huishang, which means Ã¢â¬ÅAnhui MerchantsÃ¢â¬Â in Chinese, runs about 100 outlets in cities and villages in the inland and mostly rural province. It had total assets of nearly 46 billion yuan ($5.96 billion) at the end of 2005. afp

http://www.dailytimes.com.pk/default.asp?page=2007\04\08\story_8-4-2007_pg5_26


----------



## Neo

Sunday, April 08, 2007 

*China and Myanmar sign new hydropower dam deal*

YANGON: Military-run Myanmar and China have signed a deal to build a hydropower dam on the Salween River, as yet the longest undammed waterway in southeast Asia, official media said Saturday.

The deal is the fourth hydropower agreement signed with China this year, and came just days after Thailand began work on a six-billion-dollar dam on the Salween to generate electricity that will be carried back to the kingdom.

Activists warn the dams could prove disastrous to the SalweenÃ¢â¬â¢s delicate ecosystem and accuse MyanmarÃ¢â¬â¢s military junta of using the dams as an excuse to evict thousands of ethnic minority villagers from their land.

MyanmarÃ¢â¬â¢s Hydropower Implementation Department signed the deal Thursday with the Chinese firms Farsighted Investment Group and Gold Water Resources, the official New Light of Myanmar said.

The dam, which is the fifth planned for the 2,800-kilometre (1,750-mile) river, will have a capacity of 2,400 megawatts, the government mouthpiece said.

The paper gave no other details of the deal, but said the dam would be on the Upper Salween in MyanmarÃ¢â¬â¢s northern Shan State.

China and Thailand have signed a raft of deals over the last year to tap impoverished MyanmarÃ¢â¬â¢s energy resources, particularly in natural gas and hydropower.

The United States and Europe have economic sanctions against military-run Myanmar to punish them for the ongoing detention of democracy leader Aung San Suu Kyi and other human rights abuses.

But the effect of the sanctions has been largely eroded by rapidly increasing trade with energy-hungry neighbours like China, Thailand and India. afp

http://www.dailytimes.com.pk/default.asp?page=2007\04\08\story_8-4-2007_pg5_30


----------



## Neo

*India misses Nasdaq bus; China gets dedicated country index*
(PTI)

7 April 2007 

NEW DELHI Ã¢â¬â India has lost out to China in the arena of one of the world's most respected stock exchange, Nasdaq, which has decided to launch a dedicated index of Chinese companies listed in the US.

The development comes amid the growing global appetite of India Inc to expand its overseas footprint with a number of cross-border acquisitions, joint ventures and setting up of foreign business units.

However, the number of Indian companies listed on the US stock exchanges has remained somewhat stagnant over the past few months, despite over 100 firms estimated to be mulling a listing either on the Nasdaq or NYSE.

Nasdaq Stock Market's planned China index would initially comprise of 30 Chinese companies listed on any US exchange. 

The major impediment for India missing out to China for a dedicated country index is the lesser number of companies listed in the US as an index needs at least 30 companies, the market observers said.

Out of a total of around 120 Indian companies listed overseas, there are just seven Indian companies listed on Nasdaq with a market cap of around $32 billionÃ¢â¬â including Ã¢â¬â Infosys, Sify and Rediff, while there are ten Indian firms listed on another US exchange, NYSE.

Nasdaq CEO Robert Greifeld was in China earlier this week to persuade more Chinese companies to list on Nasdaq. 

Incidentally, Greifeld had also visited India last year as part of the exchange's efforts to attract more Indian companies to list on Nasdaq.

However, in the last few months no new Indian company has listed on the Nasdaq, while as many as six Chinese companies were listed on Nasdaq in the first three months of 2007. Currently, there are 38 companies from China listed on Nasdaq with a market value of about $30 billion. Besides, there are 31 Chinese companies listed on the New York Stock Exchange with a combined market cap of a huge over $800 billion. Nasdaq president and CEO had told PTI in August last year: "We are currently in talks with several Indian companies drawn from various sectors and are confident that we will see more Indian companies listing on Nasdaq in the future." 

http://www.khaleejtimes.com/Display...l/business_April149.xml&section=business&col=


----------



## kvLin

stocks and funds have been the hottest topic among Chinese people,and they did make a bunch of new-rich.


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## Neo

Thursday, April 12, 2007 

*China firm producing gas at field disputed by Japan*

BEIJING: ChinaÃ¢â¬â¢s CNOOC Ltd confirmed for the first time on Wednesday that it had begun producing gas at a field in the East China Sea despite JapanÃ¢â¬â¢s objections to development, which Tokyo fears might drain off its resources. 

The state-controlled firm said in its 2006 annual report it was pumping oil and gas at the Tianwaitian field. 

But it is also ready to begin producing from the nearby and larger Chunxiao field as soon as Beijing gives it the go-ahead, an industry source familiar with the development told Reuters. 

The news came at an awkward moment as Chinese Premier Wen Jiabao arrived in Japan for a summit with Japanese Prime Minister Shinzo Abe aimed at setting aside rancour over the past and focusing on ways to tame rivalry over energy and regional influence. 

Japan and China disagree over the boundary between their exclusive marine economic zones and Japan objects to Chinese development of gas fields near the border. 

Although the fields are in an undisputed area, Tokyo fears the drilling operations could drain gas from its side by tapping into geological structures that stretch into that area. 

CNOOCÃ¢â¬â¢s gas output from the Tianwaitian field last year was equivalent to a relatively modest 4 million cubic feet per day, the company said in its annual report, which was posted on the Web site of Hong KongÃ¢â¬â¢s Stock Exchange. 

But the industry source said actual output was now running at 500,000 cubic metres a day (17.65 million cubic feet), and when Chunxiao comes on line, annual production at the two fields could reach 600 million cubic metres a year. 

Although CNOOC is the operator of these fields, it only gets half the output because ChinaÃ¢â¬â¢s second-largest oil and gas firm Sinopec Corp has a 50 percent working interest and is responsible for gas marketing. 

Since CNOOC only started test operations in February 2006 and took about six months to reach current levels, total production averaged over 365 days of the year was lower than the current daily rate. 

Even if Chunxiao comes on line, combined output would still represent barely 1 percent of the 59 billion cubic metres of gas the country pumped last year. 

But Beijing sets gas prices below global levels, so it is keen for its energy firms to maximise domestic production to curb a growing reliance on foreign supplies. 

No comment: Japan said in February that China had told it that reports China had started production at Chunxiao were inaccurate. The Ministry of Economy, Trade and Industry, which handles energy affairs, declined immediate comment on the new figure. 

Ã¢â¬ÅWe will have to confirm that because we did not see anything about commercial production at the field in the company earnings report last month,Ã¢â¬Â an official said. 

The annual report, with full details of the firmÃ¢â¬â¢s reserves and producing assets, was released around two weeks after CNOOC revealed headline earnings figures for last year. At the time, Chief Executive Fu Chengyu said Japanese resources were not threatened by its drilling, but declined to comment directly on whether production had begun. 

Japan is also concerned about expansion at the nearby Pinghu field, which has however been producing for several years. Output from CNOOC 30 percent share was 17 million cubic feet per day. The firm has largely avoided commenting on the politically sensitive fields, and a company spokesman could not immediately be reached to comment on the figures beyond the annual report.

http://www.dailytimes.com.pk/default.asp?page=2007\04\12\story_12-4-2007_pg5_27


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## Neo

April 13, 2007 
*China reserves*

BEIJING, April 12: China announced on Thursday its forex reserves, already the world's largest, had surpassed $1.2 trillion, reflecting the central bank's struggle to keep the nation's currency from soaring. At $1.202 trillion, the reserves were up 12.7pc from the beginning of the year, and 37.4pc from 12 months earlier, the People's Bank of China said in a statement on its website. Ã¢â¬ÅEven for China it's a very strong increase,Ã¢â¬Â said Paul Cavey, Hong Kong-based China economist with Macquarie Securities.Ã¢â¬âAFP

http://www.dawn.com/2007/04/13/ebr19.htm


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## Neo

Thursday, April 19, 2007 

*China may ink $12b worth of import deals with US*

BEIJING: China is likely to sign import deals valued at up to 12 billion dollars with the United States next month in a bid to reduce its yawning trade surplus, state media said Wednesday. 

The deals will be inked during a high-profile bilateral strategic economic dialogue in the United States in May, the China Daily reported, without giving any sources.

A proposed procurement delegation will cover a wide range of US products, from soybean and cotton manufacturing machinery to electronic goods, in its visit to Atlanta, Chicago, San Francisco and Washington, it said.

The deals are widely seen as part of the Chinese efforts to cut its huge trade surplus with the United States, which hit more than 230 billion dollars in 2006, according to US data. The Commerce Ministry was not immediately available for comment when contacted by AFP Wednesday.

When Chinaâs President Hu Jintao visited the United States in April last year, Chinese enterprises sealed about 16 billion dollars in deals on products ranging from soybean to aircraft, the report said.

It said next monthâs strategic economic dialogue, to be co-chaired by Vice-Premier Wu Yi and US Treasury Secretary Henry Paulson, is expected to be tense after Washington last week formally filed WTO complaints against China.

Beijing has said the US move to take China to the World Trade Organisation on copyright piracy and market access barriers would have ânegative impactâ on overall trade relations between the two.

http://www.dailytimes.com.pk/default.asp?page=2007\04\19\story_19-4-2007_pg5_30


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## Neo

April 20, 2007 
*China records 11.1pc growth* :thumbsup:

BEIJING, April 19: China's economy grew a blistering 11.1 per cent in the first quarter of 2007, the government said on Thursday as it called for fresh measures to put the country on a more sustainable course.

The rapid expansion and acceleration of the world's fourth-largest economy in the first three months of the year is likely to have been boosted by a yawning trade surplus and massive investment in infrastructure.

âWe must carefully carry out all policies of the central government and continue to strengthen and improve macro-economic control measures,â Li Xiaochao, spokesman of the National Bureau of Statistics, told reporters.

Growth in the world's fourth-largest economy was 10.7 per cent in 2006 and ran at 10.4 per cent in the three months to December.

The first three months of 2007 also saw the highest quarterly growth rate since the second quarter of last year, when the economy expanded 11.5 per cent, according to revised government data.

Analysts had expected China to pick up speed in the first quarter, with most forecasts at around 11 per cent, well above the government's official forecast of 8 per cent for 2007 as a whole.

The acceleration has come about despite a whole series of cooling measures adopted by the government since early last year, including interest rate hikes and reduction of tax incentives for exporters.

âInvestment and credit are rising fast, and the trade surplus is large,â said Ma Qing, an analyst with Citic Securities in Beijing.

China's consumer price index rose 2.7 per cent in the first quarter of 2007 from a year earlier, and was up 3.3 per cent in March alone, the bureau said.

The government is targeting an inflation rate within three per cent so the March outcome will be of concern as prices have ticked steadily higher so far this year. âAFP

http://www.dawn.com/2007/04/20/ebr21.htm


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## Neo

Sunday, April 22, 2007 

*Chinaâs oil reserves to hold 30 daysâ imports by 2010*

BOAO (china): Chinaâs strategic oil reserves will probably contain the equivalent of about 30 days of crude imports by 2010, the countryâs top energy official said on Saturday. 

âAccording to my conservative personal estimates, by the year 2010, Chinaâs (state) oil reserve will be equal to 30 days of imports,â said Chen Deming, vice chairman of the National Development and Reform Commission. Chen said China would not spend âtoo muchâ money on aggressively expanding its strategic reserves, as global oil prices were still at relatively high levels and any move by China to fill stocks quickly could cause turbulence in global oil markets. 

The fact that China was a developing country with many other areas in need of spending such as education and social welfare was also a reason for not pouring an excessive amount of money into the reserves, he told the annual Boao Forum for Asia on the southern Chinese island of Hainan. 

Chen said the government was adopting rules covering both commercial and strategic reserves. Each oil company would be required to set aside a certain amount as their own reserve, he said. 

The next phase of the strategic reserves would be in locations with developed transport infrastructure close to refineries, he said, without elaborating. 

Construction of the first phase of the reserves, with a total capacity of 16.2 million cubic metres, is expected to be completed in 2008. 

Possible sites for the second phase which are expected to have total capacity of 28 million tonnes include Hainan, Tangshan in Hebei province and two sites in the southern manufacturing hub of Guangdong province. 

http://www.dailytimes.com.pk/default.asp?page=2007\04\22\story_22-4-2007_pg5_25


----------



## Neo

Sunday, April 22, 2007 

*Chinaâs CNOOC to talk energy with Japan, India*

BOAO (china): Chinese offshore oil developer CNOOC Ltd is looking to work with Japanese and Indian firms to develop alternative energy sources and invest in oil fields in third-party countries, its chief executive said on Saturday. 

CNOOC was forced in 2005 to withdraw an $18.5 billion takeover bid for US energy firm Unocal Corp due to heavy opposition from US lawmakers. 

Fu Chengyu said the company was looking closer to home, to cooperate with big energy consumers in Asia. 

âThe cooperation will be in different forms, including technical cooperation, joint efforts on development of new energy as well as joint development of oil fields in other countries,â he told reporters on the sidelines of the annual Boao Forum for Asia, being held on the southern Chinese island of Hainan. 

Fu declined to comment on whether CNOOC would start to produce gas from its Chunxiao gas field, which was disputed with Japan, in the first half of 2007. Fu said the company was aggressively developing alternative energy sources, including wind power, to diversify its business. 

âCNOOC currently has only one core business oil and gas. But in 30 or 50 years, we may have several core businesses of other energy sources,â he said. Fu also reaffirmed that CNOOC Ltd would list shares on the domestic stock market yet this year. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\04\22\story_22-4-2007_pg5_31


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## Neo

Sunday, April 29, 2007 

*President Hu Jintao reaches out to Taiwan business community*

BEIJING: Chinaâs president dangled the carrot of the countryâs booming economy at a forum on China-Taiwan business ties on Saturday, in Beijingâs latest attempt to win hearts and minds in Taiwan. 

Chinese President Hu Jintao told the roughly 500 delegates, including a former Taiwanese opposition leader, that the country offered boundless economic opportunities. 

âAt present, the mainlandâs economy is developing powerfully, which creates more space, more motivation and even more superior conditions for cross-strait economic cooperation,â Hu said, with Lien Chan, honorary chairman of Taiwanâs main opposition Nationalist Party, or Kuomintang (KMT), standing beside him. 

The Cross-Strait Economic and Trade Forum was discussing how to boost exchanges between China and Taiwan amid controversy this week over the 2008 Olympic torch route. 

The need for direct flights across the Taiwan strait, which Taipei bans for security and political reasons, is a key agenda item of the event, although no members of the islandâs independence-leaning, ruling Democratic Progressive Party are attending. 

China and Taiwan have been bitter rivals since Nationalist forces fled to Taiwan after losing a civil war in 1949. China claims sovereignty over the island insisting it must eventually be returned to the fold, by force if necessary. 

Pro-independence politicians in democratic Taiwan suspect China is trying to win the island over through commercial ties, though the Beijing forum, being held this weekend for the third time, has yet to yield any new Chinese government incentives. 

Taiwan investors have poured up to $100 billion into China over the last two decades, lured by a common language and culture as well as low labour costs and close proximity to the worldâs fastest-growing major economy. 

Lien, a twice-defeated Taiwan presidential candidate, said the two sides should put aside decades of confrontation and start talking. 

âThe mainland is today open to the entire world, but cross-strait relations, for reasons which everyone are familiar with, hesitate to move forward,â he said. Neither Hu nor Lien mentioned the flap over the Olympic torch. 

China accused Taiwan of a âperfidious betrayal of trustâ on Friday for reneging on an agreement to host a stop on next yearâs Beijing Olympic torch relay. 

The relay schedule was unveiled by Beijing organisers on Thursday and included Taiwan as the stop before Hong Kong on the 137,000-km (85,000-mile) route. 

Taiwan Olympic officials called Chinaâs linking them to Hong Kong an attempt to include the island in the domestic relay route and rejected the plan. 

President Chen Shui-bian said on Friday Beijing should consider the torch route that Tokyo used in 1964, which means sending the flame to Taiwan from a country other than China and passing it on from Taiwan to yet another country, but not China or any of its territories. 

The KMT hopes trade and tourism deals clinched at the Beijing forum will help the islandâs economy and its chances of winning parliamentary elections in December and presidential elections next March. 

http://www.dailytimes.com.pk/default.asp?page=2007\04\29\story_29-4-2007_pg5_26


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## Neo

Sunday, April 29, 2007 

*Russia plans to build third oil pipeline to China*

MOSCOW: Russia has built a third of its planned oil pipeline to China in the first year of construction and is on track to finish its first pipeline to Asia on time by the end of 2008, Russiaâs pipeline monopoly said on Saturday. 

Transneft said it had built over 900 km (559 miles) of the 2,700-km pipeline, which will eventually pump 30m tonnes a year (600,000 barrels per day) of crude to China. Transneft has said the pipeline will allow Russia, the worldâs second largest oil exporter, to make its exports more flexible and re-route volumes to Asian market when prices are more attractive than on its current core European market. If additional crude resources are found in East Siberia, a new pipeline branch could be built to the Pacific coast to increase deliveries to 1.6m bpd. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\04\29\story_29-4-2007_pg5_37


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## Neo

Wednesday, May 02, 2007 

*Chinaâs evolving economic system*
By Assar Lindbeck

The case for combining further government withdrawal from the production system with more engagement in the social field is compelling. Chinaâs leaders seem to be promising this by voicing their concern for domestic entrepreneurship, social arrangements, rural development and environmental protection

It is generally agreed that Chinaâs impressive economic achievements during the last three decades are largely the result of the radical reform of its economic system. While private ownership of firms hardly existed when these reforms started, private firms today account for about 60% of total production.

Ownership, however, is only one dimension of an economic system. Chinaâs economic system has changed just as drastically in other ways as well. Decision-making regarding consumption and production has largely been decentralised to individual households and firms, respectively; economic incentives, markets, competition, and internationalisation have to a considerable extent replaced command, administrative processes, monopoly, and autarky. Generally speaking, Chinaâs reform period has been a stark contemporary illustration of the historical lesson that unleashing individual initiative tends to boost economic development. 

How, then, should todayâs Chinese economy be characterised? Some observers describe Chinaâs current economic system as âstate capitalismâ; others (including Chinaâs rulers) call it âmarket socialism.â Both labels mislead. One reason is the domination of private firms on the production side. Another is the fact that âsocialismâ usually does not rely upon strong economic incentives and competition, which are the dominant economic factors in todayâs China.

In fact, China is a type of mixed economy, with a number of specific features, some of which favour GDP growth, while others have not dragged down the economy to any considerable extent so far. But this situation is likely to change. So further reforms will be decisive in determining the Chinese economyâs future performance.

Although internationalisation of the economy has served China well, it is unlikely that the current 35% share of GDP claimed by exports and the heavy reliance on foreign technology are sustainable in the long run. Tension between widespread private ownership of firms and pervasive public ownership of assets is another specific feature of Chinaâs economic system that looks similarly creaky.

For example, by disfavouring lending to private firms, state-owned banks distort the allocation of resources. Chinese agriculture provides another example of tension between private entrepreneurship and public-sector ownership of assets. In particular, public ownership of land harms the investment incentives for family farms and reduces their chance of consolidating land holdings in order to exploit economies of scale.

Reducing this tension over ownership of firms and assets is imperative, because the entry and expansion of small private companies will be increasingly important when Chinaâs domestic markets and domestic innovation need to play a greater role. Thus, for China to gain maximum advantage from private entrepreneurship, it is important to continue shifting the share of financial assets and land holdings out of the public sector.

This would also help address the endemic corruption that is also a specific feature of the Chinese economic system. Corruption is difficult to reduce drastically so long as politicians and bureaucrats have much âto sellâ to firms and individuals â including rationed loans from public-sector banks and regulatory permits of various types. In rural areas, corruption emanates from frequent expropriation of land-lease contracts held by farmers working on collectively owned land, which local officials then turn over to non-agriculture land developers. In both cases, reducing corruption will require not only government pep talks against bad ethics, but also institutional reforms, including further deregulation, stronger property rights, and more privately owned assets. Free media would also help.

No doubt, some types of corruption, including âasset strippingâ in connection with the privatisation of public-sector firms, has speeded up the emergence of a class of private capitalists and entrepreneurs. But if corruption becomes a permanent element of Chinaâs economic system, it is likely to both reduce the efficiency of the allocation of resources and damage the legitimacy of private entrepreneurship.

China also needs to shift from its highly âextensiveâ (resource consuming) growth strategy to a more âintensiveâ development path. Although high growth requires large-scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion. This is reflected in the current investment ratio for real capital assets of 43% of GDP, compared to 4.3% investment in human capital in the form of education. Chinaâs growth would be more efficient if these proportions changed in favour of education, including vocational training, which is very poorly developed.

Moreover, eliminating todayâs vast wastage of natural resources, which underpins exceptionally high levels of pollution, will require a reformed regulatory framework, including higher user prices for energy, raw materials, and environmental resources. By shifting to a less resource-dependent development strategy, more resources would be available for improvements in the countryâs much neglected social arrangements, particularly among rural citizens and âurban outsidersâ (individuals in informal urban sectors). This includes addressing Chinaâs patchy arrangements for income security, as well as its unevenly distributed provision of social services, such as health and education, in particular, in rural areas.

The case for combining further government withdrawal from the production system with more engagement in the social field is compelling. Chinaâs leaders seem to be promising this by voicing their concern for domestic entrepreneurship, social arrangements, rural development and environmental protection. Only time can tell to what extent, and how fast, such promises will be fulfilled. âDT-PS

Assar Lindbeck is Professor of International Economics at Stockholm University. His most recent work is An Essay on Economic Reforms and Social Change in China

http://www.dailytimes.com.pk/default.asp?page=2007\05\02\story_2-5-2007_pg3_3


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## Neo

Thursday, May 03, 2007 

*Chinaâs CITIC Res to buy Kazakh assets for $1b *

HONG KONG: CITIC Resources Holdings Ltd will buy oil assets in Kazakhstan worth $950 million and a stake in an oil field in China to make it potentially Chinaâs fourth-largest energy firm, two sources close to the deal said on Wednesday. 

In a long-awaited move, the company has decided to exercise an option to buy a 50 percent stake at cost in the Kazakh assets from its parent company, China International Trust and Investment Corp (CITIC), one of the sources told Reuters. 

That deal had been expected, as Chinese firms armed with cash especially resource-oriented ones scour the globe for investments to feed the worldâs fourth-largest economy and establish a larger worldwide presence. 

CITIC Resources, of which Singaporean state investment firm Temasek Holdings owns about 7 percent, will also buy an interest in an oil block in resource-rich Liaoning province, a fund manager familiar with the situation told Reuters. 

No details of the investment in the northern Chinese province were available and it was not clear whether its parent would be the seller. 

If successful, CITIC Resources would be on the way to joining Chinaâs oil triumvirate PetroChina Co Ltd, Sinopec Corp. and CNOOC Ltd as the largest oil producers in the country. 

âThe company has been a shell company without material operating businesses. With this major acquisition, it will give them a clearer position and help investors judge the company,â said Steve Cheng, associate director at Shenyin Wanguo. 

State-owned investment group CITIC bought the Kazakh oil assets of Canada-based Nations Energy Co Ltd for $1.9 billion in 2006. The cornerstone of those assets was the Karazhanbas oil and gas field, which has proven reserves of more than 340 million barrels and production of over 50,000 barrels per day. 

Listed CITIC Resources raised more than US$220 million in February to help bankroll the Kazakh acquisition. 

Trading in shares of CITIC Resources was suspended on Wednesday pending announcement of a substantial acquisition. 

The stock has risen 62 percent this year, beating a loss of 3 percent on the index for Chinese companies listed in Hong Kong. 

Last November, CITIC Resources made its first foray into the oil industry with the purchase of 51 percent of a production-sharing contract relating to the Seram Non-Bula Block on Seram Island, Indonesia. The block had average daily production of 4,700 barrels of oil in 2006. 

http://www.dailytimes.com.pk/default.asp?page=2007\05\03\story_3-5-2007_pg5_29


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## Neo

* China Power to spend $4bn on renewable energy *

HONG KONG: China Power International, helmed by the daughter of former Premier Li Peng, plans to spend up to $4 billion by 2010 developing renewable energy as Beijing pushes to clean up its air and water and whittle down its reliance on imported resources.

To help bankroll the investment one of the largest planned investments in renewable energy ever announced by a corporation the company is studying listing shares on mainland stock exchanges, Chief Executive Li Xiaolin told reporters on Monday.

Hong Kong-listed shares in the company fell 0.5 per cent on Monday, lagging a 0.27 per cent gain in the benchmark Hang Seng Index. China intends to spend an estimated $200 billion on renewable energy over the next 15 years, partly to build hydropower, wind- and solar-powered plants to fuel growth in the worldâs largest energy consumer after the United States.

The government aims to boost renewable energy to 10 per cent of energy use by 2010 and has ordered its largest power firms to ensure that 5 per cent of their generation runs on renewable sources by the end of this decade, rising to a 10th by 2020.

State-run firms from China Power to larger rivals such as Huaneng Power and Datang International Power are gearing up commercial projects. China Power International, which became the second-largest shareholder of Oriental Investment Corp this month, wants to change that firmâs name to China Power New Energy Development Co and re-focus it on renewable energy.

By 2010, China Power International plans to put into operation 1,000 megawatts (MW) of renewable energy capacity including wind, hydropower and biomass have another 1,000 MW under construction and have a further 1,000 MW in the pipeline.

âIt typically takes 8 to 10 billion yuan to build 1,000 megawatts of renewable capacity. So the total investment will be 24 to 30 billion yuan ($3.1-$3.9 billion),â said Liu Genyu, Oriental Investmentâs chief operating officer.

Analysts say high costs and low tariffs for renewable energy mean profit uncertainty, but executives remain optimistic.On the face of it, China Powerâs five-year investment plan dwarfs spending by the worldâs largest oil firms. 

The country spent $6 billion on renewables in 2005, excluding large hydropower projects, Chinaâs official Xinhua News Agency cited academics as saying.Shell has invested an estimated $1.25 billion from 1996 to 2006, according to calculations based on official data and company information, making the Anglo-Dutch company the oil sectorâs biggest investor in green energy.

And BP Plc has spent around $900 million on renewables since 1999, according to published figures and information from BP sources. âBecause of low tariffs and high costs, there are different views on profitability of renewable energy. But we believe the government is endorsing development of new energy and will gradually issue favourable policies,â Liu said. 

http://www.thenews.com.pk/daily_detail.asp?id=54771


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## Neo

*Chinaâs savings deposits hit $2.27 trillion *

SHANGHAI: Chinaâs savings deposits bulged to 17.5 trillion yuan ($2.27 trillion) at the end of March 2007 but the pace of growth was slower than last year, state press reported. The growth rate cooled by 5.7 percentage points or an equivalent of 83.6 billion yuan compared to the same period a year ago, Xinhua news said, citing the central bank. The Peopleâs Bank of China attributed the decline in growth to growing consumer spending and the depositors taking money out of accounts to invest in Chinaâs booming capital market, it said. In the first quarter, 4.78 million stock accounts were opened in China and in April alone, 4.5 million new accounts were registered.

http://www.thenews.com.pk/daily_detail.asp?id=55610


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## Neo

Sunday, May 13, 2007 

*China to face labour shortage in 2010*

SHANGHAI: Chinaâs ample supply of low-cost labour, one of the mainstays of Chinaâs remarkable economic transformation, could start shrinking by 2010, a state press report said Saturday.

âChina is moving from an era of labour surplus into an era of labour shortage,â the China Daily reported, citing the Chinese Academy of Social Sciences, the nationâs key government-run research institute.

China 1.3 billion people constitute the globeâs most populous country but the new study said its massive rural labour force, that has spearheaded the nationâs roaring growth, may have been poorly estimated. The number of unemployed workers below the age of 40 in rural areas that migrate in search of jobs is only about 52 million, far below previous estimates of 100 to 150 million, according to the institute.

The shortage will eventually trigger a demand for higher wages, possibly as soon as in three years, it said. Rising labour costs would in turn go right to the nationâs economic heart as foreign investors forsake the worldâs factory floor for cheaper workers elsewhere.

While it was too early to judge whether more expensive Chinese labour would become less competitive, the nation needs to start making adjustments now, said Cai Fang, a labour economics expert and chief researcher of the study.

âThe country needs to change its growth mode from relying solely on one production factor (labour) to advanced production methods,â Cai said. afp

http://www.dailytimes.com.pk/default.asp?page=2007\05\13\story_13-5-2007_pg5_25


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## Neo

*China Postel inks $2.3bn deal with Motorola *

BEIJING: A major Chinese firm announced on Wednesday it had signed a $2.3 billion deal to buy mobile phones from Motorola of the United States, a week ahead of high-level Sino-US trade talks.

China Postel Mobile Communication Equipment Co Ltd, the countryâs largest mobile phone distributor, said it would buy 16 million handsets from Motorola this year worth $2.3 billion, according to a statement on its website.

China Postel said the deal, inked in the United States on Monday, was one of the most important to be signed in the lead-up to the China-US Strategic Economic Dialogue in Washington next week.

The twice-yearly dialogue aims to ease tensions between the two economic giants, amid sustained concerns in Washington over the huge US trade deficit with China, which hit $232 billion last year according to US data.

However, the last meeting in December ended with little progress in ironing out trade disputes ranging from restricted access to Chinese markets to US accusations that China keeps the value of its currency artificially low to boost exports.

In a bid to showcase its willingness to cut its yawning trade surplus with the United States, China has sent buying missions to America from time to time.

Chinese state press previously reported that a Chinese delegation had signed $4.3 billion worth of deals ahead of this yearâs dialogue.

Last week, the delegation, led by Vice Minister of Commerce Ma Xiuhong, sealed 27 contracts in San Francisco with a raft of American firms, in a hope to create a favourable environment for the looming trade talks.

As part of the deals, Chinese computer giant Lenovo Group inked orders for $1.3 billion with Microsoft Corp to buy Windows, Office and other software suites for its personal computers.

The 21st Century Business Herald said on Wednesday the China Postel-Motorola deal was also included in the $4.3-billion-dollar package, although the companyâs statement did not give exact details.

The paper cited sources as saying that China Postel, which holds more than 30 per cent of the Chinese market, also signed last Friday a mobile phone deal for $2.5 billion with Finnish phone maker Nokia.

http://www.thenews.com.pk/daily_detail.asp?id=56251


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## Neo

Thursday, May 17, 2007 

*Expanding storage capacity: Sinopec building more than 100 oil tanks*

SHANGHAI: Chinaâs Sinopec Group, the largest refiner in Asia, is building more than 100 large oil tanks to increase its commercial storage capacity, the government said.

Currently Sinopec has nearly 400 large oil tanks in operation, each with storage capacity above 30,000 cubic metres (1.05 million cubic feet), the State-owned Assets Administration and Supervision Commission said.

âAnother 100 large oil tanks are in construction as the group speeds up building commercial storage facilities,â the agency under the cabinet said in an undated statement on its website, citing Sinopec. It did not say when the construction of new oil tanks will be completed or where they will be located. In March, Sinopec conducted safety inspections on 339 existing tanks to prevent any leaking, fire or explosion, the statement said.

State media has reported in February that China is drafting an Energy Law requiring state-owned energy companies to set up corporate oil reserves to supplement national reserves currently being built up. China began building four strategic oil reserves sites in 2004 to secure energy supplies for its booming economy. afp

http://www.dailytimes.com.pk/default.asp?page=2007\05\17\story_17-5-2007_pg5_16


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## Neo

*China takes steps to curb its surging economy*
By Keith Bradsher
May 18, 2007

HONG KONG: The Chinese central bank announced Friday that it would allow its currency, the yuan, to fluctuate more during daily foreign exchange trading, but again rebuffed demands from the United States and Europe for a sustained rise in its value.

The central bank also raised interest rates and demanded that commercial banks set aside more of their assets as reserves that cannot be lent.

The two moves are aimed at tightening credit and reducing the risk of overheating in an economy that is growing at more than 11 percent a year and in mainland Chinese stock markets that have more than tripled since the beginning of last year.

The currency announcement came as top U.S. and Chinese economic policy makers prepared to meet Tuesday through Thursday in Washington in an effort to head off growing complaints from the U.S. Congress to address the widening U.S. trade deficit. But the policy shifts, announced Friday and taking effect Saturday, are unlikely to have any practical effect on soaring Chinese exports, economists said.

The People's Bank of China said in a statement posted on its Web site that it would allow the yuan to rise or fall as much as 0.5 percent in daily trading. The daily limit was 0.3 percent. But the central bank gave a clear signal that the new policy should not be interpreted as Chinese willingness to allow a run-up in the value of the yuan. The bank said it would continue to "keep the exchange rate basically stable at an adaptive and equilibrium level based on market supply and demand with reference to a basket of currencies."

The bank issued a separate statement quoting an unidentified spokesman as saying that the decision did not mean that the exchange rate would "see large ups and downs, nor large appreciations."

The People's Bank has not allowed the yuan to move the maximum allowed percentage on any day since it broke the yuan's peg to the dollar July 21, 2005. The Chinese government allowed the yuan to rise 2.1 percent then, and has let it inch up only by an additional 5 percent over the nearly two years since.

By contrast, members of the U.S. Congress from manufacturing states that have lost jobs during the Chinese export boom have been calling for China to revalue by 25 percent or more. If China were to allow the yuan to rise more quickly against the dollar, this would make Chinese exports more expensive in foreign markets and would make foreign goods more competitive in China.

Liang Hong, an economist at Goldman Sachs, said that the wider trading band represented "a symbolic, but laudable development in China's foreign exchange reform."

The initial reaction from Congress was chilly. "To widen the band is well and good, but if they don't use the band, nothing will happen," said Senator Charles Schumer, the New York Democrat who has repeatedly called for steep U.S. tariffs on goods from China unless Beijing officials let the yuan rise.

The Bush administration was also cautious but a little more welcoming.

"This is a useful step towards greater flexibility and an eventual float of the currency," the Treasury said. "It's important now that Chinese authorities use the wider band and allow greater currency movement within each day and over time."

Stephen Green, an economist in the Shanghai office of Standard Chartered Bank, said that China was likely to allow slightly faster appreciation in the next few days but that the long-term rate of appreciation would not change. There have been just two single-day rises of 0.16 percent and two single-day drops of 0.17 percent in the past two years, while the rest of the trading has fallen within an even narrower range, he added.

Widening the daily trading band is the latest in a long series of steps by Chinese officials to awaken Chinese businesses gently to the risks that fluctuating currencies can pose. China pegged the yuan at 8.27 to the dollar from 1997 to 2005, lulling some businesses and entrepreneurs into ignoring currency risk.

During interviews last month at the Canton trade fair, in Guangzhou, exporters from all over China said that they were paying much closer attention to exchange rates. While Chinese export contracts are still denominated mainly in dollars, Chinese companies increasingly ask their foreign customers to agree to provisions requiring the buyer to pay extra if the dollar starts falling faster against the yuan.

Chinese officials have acknowledged that there are economic arguments for faster appreciation of the yuan, but contend that this could threaten what they describe as "social stability" - the risk that Chinese workers and farmers who lose their jobs as a result of currency appreciation might protest against the government.

Two-thirds of the population still lives in rural areas, and the agricultural sector is barely competitive with imports at current currency levels, raising the prospect of increased rural unemployment if the yuan were to rise sharply and food exports drop as a result.

The People's Bank of China raised the benchmark regulated rate for one-year bank deposits by 0.27 percentage point to 3.06 percent, and increased the benchmark rate for one-year bank loans by 0.18 percentage point to 6.57 percent.

By raising deposit rates more than lending rates, the government showed confidence that the banks have put enough of their bad loan problems behind them to survive on slightly narrower profit margins.

But raising lending rates could actually make it harder for China to allow further appreciation of the yuan. That is because the central bank borrows yuan, by issuing bonds, so as to pay for its massive interventions in currency markets, where it has accumulated $1.2 trillion in foreign exchange reserves, mainly dollars.

The central bank earns a higher interest rate on U.S. Treasury securities than it pays on yuan-denominated bonds at home. The authorities use this profit on the difference in interest rates to cover losses on the foreign exchange reserves, which are worth less and less in yuan as the yuan appreciates.

The semiofficial China Business News newspaper reported on Friday that the government had entrusted $3 billion to the Blackstone Group to invest abroad. Blackstone declined to comment; the company is in a "quiet" period before a planned initial public offering on the New York Stock Exchange.

The central bank also ordered banks to hold 11.5 percent of assets as reserves, up from 11 percent. Many banks already have even larger reserves, however, as they have been swamped with deposits from the brisk Chinese economic growth and large trade surplus, and have had trouble finding ways to lend this money.

The announcement can be seen at http://www.pbc.gov.cn/english/detail.asp?col=6400&id=837

http://www.iht.com/articles/2007/05/18/business/yuan.php


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## Neo

Wednesday, May 23, 2007 

*China sets up nuclear power technology firm*

BEIJING: China has set up a firm tasked with introducing and developing cutting-edge nuclear technology, state media reported Tuesday. 

Wang Binghua, the former general manager of China Power Investment, a state-owned holding corporation, has been appointed the chairman of the State Nuclear Power Technology Co Ltd, the Xinhua news agency said. 

The firm was established as part of Chinaâs effort to deliver the most advanced nuclear technology into commercial use, according to the Shanghai Securities News. 

The technology, often referred to as third-generation, boasts improved safety systems, lower construction costs and higher efficiency. 

The Shanghai newspaper said China planned to invest around 50 billion dollars by 2020 to build 30 nuclear reactors. The installed capacity of nuclear power stations would improve from the current 8,000 megawatts to 40,000 megawatts. 

At the end of 2006, only 1.9 percent of Chinaâs total energy needs were produced by nuclear power but this is set to increase to 4.0 percent by 2020. 

As part of the plan to promote the third-generation nuclear technology, China signed in March a framework agreement with US power plant maker Westinghouse for four nuclear power plants. 

http://www.dailytimes.com.pk/default.asp?page=2007\05\23\story_23-5-2007_pg5_18


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## Neo

*China suspends magnetic train project *

SHANGHAI: Radiation fears have prompted China to shelve a $4.3-billion extension of its high-speed magnetic levitation train in Shanghai, a state press report said Saturday.

The official Xinhua news agency cited unnamed officials as saying construction, due to begin this year, had been suspended amid concerns the German technology could contaminate residents.

âThe government is working on the issue,â said an official attending this weekâs Communist Party congress in Shanghai.

A spokesman from the Minhang district of Shanghai, said: âThe project has been suspended in line with the arrangements of the municipal government.â

The green light was given in March 2006 and officials expected the new line that would link the eastern cities of Shanghai and Hangzhou, 170 kilometres (105 miles) apart to begin operating in 2010, when Shanghai will host the World Expo and some 70 million visitors are forecast to visit.

However, the project has been dogged by controversy over Chinese demands for technology transfers in exchange for the contract to build the train, which can hit speeds of up to 430 kilometres (270 miles) per hour.

According to German media reports last June, Berlin officials refused to meet Chinaâs demands for access to sensitive technology.

http://www.thenews.com.pk/daily_detail.asp?id=57811


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## Neo

*Microsoft to boost China R&D unit *

HONG KONG: Microsoft Corp plans to add 1,200 staff for research and development in mainland China this year at an estimated cost of $60 million, the South China Morning Post reported on Saturday.

The worldâs largest software company has also bought land to set up corporate campuses in Beijing and Shanghai,Zhang Yaqin, Microsoftâs head of mainland R&D operations, told the newspaper.

The article said Microsoft, which has about 3,000 employees on the mainland, last year invested about $150 million âin just people costsâ in China and will âadd probably 40 per cent in peopleâ this year.

Much of the new spending will be on Microsoftâs mobility software, including Web services, digital entertainment and media applications for mobile telephones, the article said.

With the land purchases in Beijing and Shanghai, Microsoft will have the capacity for 8,000 people in 2-3 years time, the report quoted Zhang as saying.

http://www.thenews.com.pk/daily_detail.asp?id=57813


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## Neo

Wednesday, May 30, 2007 

*âChina may see $300b trade surplus in 2007â*

BEIJING: Chinaâs trade surplus will probably hit 250 billion dollars to 300 billion dollars in 2007 boosted by strong global demand and low export prices, the top economic planning agency said Tuesday.

The countryâs trade surplus has been expanding dramatically since 2005 and is unlikely to dwindle in the short term, the National Reform and Development Commission said in a statement.

âThe trade surplus may last for a long time during (Chinaâs) industrialisation process,â it said.

In 2005, the trade surplus more than tripled from a year earlier to 102 billion dollars and last year it further widened to 177.5 billion dollars.

In the first four months of the year, the aggregate trade surplus reached 63.3 billion dollars, rising nearly 90 percent from the same period in 2006.

The yawning trade surplus has led to considerable friction with Chinaâs main trading partners, especially the United States.

The government has taken a series of measures including cutting export rebates and raising export duties on a number of products in a bid to curb the momentum of surplus growth. 

http://www.dailytimes.com.pk/default.asp?page=2007\05\30\story_30-5-2007_pg5_29


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## Neo

June 06, 2007 
*Chinese overseas investment*

BEIJING, June 5: China's overseas investment is expected to grow at least 30 per cent in 2007, as the government continues to encourage local companies to expand abroad, state media said on Tuesday.

This year overseas investment made by Chinese enterprises is likely to exceed $20.9 billion dollars, said Chen Jian, assistant minister of commerce, according to the Shanghai Securities News.

The ministry's 11th five-year plan, starting from 2006, also forecast the aggregate direct overseas investment by Chinese companies will top $60n by 2010, he added.

China's direct overseas investment started to boom from 2005, when the figure jumped 123pc from 2004 to $12.3 billion.

Last year, Chinese companies, excluding banks, insurers and security firms, invested $16.1 billion abroad through mergers and acquisitions.

The government encouraged companies to make investment abroad, Chen said, as Beijing steps up measures to reduce the excess liquidity in the financial system.

China's forex reserves hit $1.2 trillion by the end of March, bolstered by soaring trade surplus and strong investment inflows.âAFP

http://www.dawn.com/2007/06/06/ebr9.htm


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## Neo

*China's inflation hits 27-month high *

BEIJING (June 13 2007): Surging food prices boosted China's annual consumer price inflation in May to a 27-month high, extending a rising trend and reinforcing expectations that interest rates will go up further.

Inflation quickened to 3.4 percent from 3.0 percent in April, the National Bureau of Statistics said on Tuesday, as food prices, which make up a third of the consumer basket, rose 8.3 percent from a year earlier and a shortage of pork caused meat prices to jump 26.5 percent.

The overall inflation figure was in line with the median forecast in a Reuters poll of economists, but Shanghai's benchmark stock market index fell as much as 2.1 percent at one point on expectations of tighter monetary policy. Continuing the market's roller-coaster ride of late, prices then recovered and the index closed 1.9 percent higher.

In an illustration of the effects of rising inflation, bank deposits held by households dropped by 278.4 billion yuan ($36.4 billion) in May, the largest fall in at least five years, as millions of Chinese shifted their savings into the booming stock market in search of higher returns. The withdrawals reduced banks' total deposit base of 36 trillion yuan by 0.78 percent.

"We expect tighter monetary policy in the coming months, given heightened inflation risks and negative real interest rates," economists at Goldman Sachs said in a note to clients.

Non-food inflation remained subdued, with prices up just 1.0 percent from a year earlier, but economists said the data reinforced the case for further central bank tightening. Yi Xianrong, an economist with the Chinese Academy of Social Sciences (CASS), the government's premier think tank, agreed that a third interest rate increase this year was inevitable as real deposit rates were being pushed into negative territory.

Savers earn 3.06 percent on 12-month certificates of deposit, meaning that after a 20 percent tax is deducted the value of their money is failing to keep pace with inflation.

"The real rate in China is negative by about 1 percentage point, so I think the current benchmark needs to go up by at least that much," Yi said. On May 18 China's central bank raised deposit rates by more than its lending rate to encourage people to keep money in the bank and not pour it into the red-hot stock market.

The drawback is that that policy narrows the still fragile banking sector's lending margins. The price of pork, China's staple meat, soared last month as a result of pig disease and a spike in the price of feedcorn. Aside from the special factors affecting pork, Yi at CASS said the leap in food prices was inevitable.

"You just look around - many things are getting pricey and liquidity is flooding into China, so why wouldn't food prices go up?" Central bank governor Zhou Xiaochuan, who is aiming to keep inflation below 3 percent in 2007, has said he wanted to see May's CPI to help him decide whether to raise rates again.

Zhou Wangjun, a deputy director in the price department of the National Development and Reform Commission (NDRC), went further, saying in a Web cast that rate rises would be necessary if consumer price inflation continued to outstrip deposit rates.

Central banks usually do not respond to shocks to the supply of food and energy as long as they do not push other prices and wages higher. In China's case, economists said Zhou faced a tricky decision, given the ******** of cash pouring into the banking system from the country's record trade surplus.

"Earlier this year it was eggs and poultry and now it's maybe the pork prices, and monetary conditions are simply too loose to prevent these supply shocks from spiking prices," Tim Condon with ING Financial in Singapore said.

The rise in pork prices would probably prove transitory, but the central bank would remain on the alert, Condon said. Other data released on Tuesday showed annual growth in the broad M2 measure of money supply eased to 16.7 percent in May from 17.1 percent in April under the impact of earlier tightening steps.

But the central bank would take only limited comfort from the slowdown, given its focus on keeping lending growth in check, said Paul Cavey, an economist with Macquarie Securities in Hong Kong. Yuan lending grew 16.5 percent in May from a year earlier, the same pace as in April.

http://www.brecorder.com/index.php?id=576850&currPageNo=1&query=&search=&term=&supDate=2007-06-13


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## Neo

*Mandelson warns China over exports *

BRUSSELS (June 13 2007): European public opinion could pressure Brussels to restrict access to Chinese exports, Europe's trade chief warned Beijing on Tuesday. After talks over the European Union's ballooning trade deficit with China, Trade Commissioner Peter Mandelson said Chinese Commerce Minister Bo Xilai had shown sensitivity to concerns about soaring Chinese exports such as steel products.

"I thought the discussion we had was for the first time as frank, concentrated and prolonged a discussion as was necessary for such a serious topic as the growing trade deficit between the EU and China," Mandelson told reporters. "I felt I heard for first time at such a political level a clear recognition by China, in the words of Bo Xilai, that 'something must be done'."

No solutions were reached at the meeting but the two men agreed to work to present joint proposals on the issue to an EU-China summit in November, he said. The EU racked up a trade deficit of 128 billion euros with China in 2006 and the shortfall could hit 170 billion euros this year, according to European Commission estimates.

Mandelson is under pressure from some EU capitals to take a tougher line with Beijing. "As I said to Bo Xilai, if European public opinion is not satisfied that the Chinese authorities are making all the necessary changes ... then impatience and anger is going to rise and pressure is going to come on us here in the Commission to start to limit the access that Chinese producers have to our market," Mandelson said.

China is producing increasingly sophisticated goods that compete with EU manufacturers. Mandelson is under pressure to justify his softer approach to Beijing than the United States, which has launched more World Trade Organisation litigation. French President Nicolas Sarkozy has said he will not allow the EU to be a "Trojan horse" for the threats of globalisation.

Mandelson reaffirmed his view that China is doing too little to tackle intellectual property theft and allow foreign investment in the giant Asian economy. Intellectual property theft showed signs of growing out of control and unpunished piracy on a grand scale would also harm legitimate Chinese businesses as Beijing's economy develops, he said.

On steel, an area of concern for many European governments, China and the EU will meet in June or July to consider action beyond measures recently taken by China to slow exports, the EU trade chief said.

http://www.brecorder.com/index.php?id=576851&currPageNo=1&query=&search=&term=&supDate=2007-06-13


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## Neo

*Chinese investment quickens, fuels monetary tightening talk *

BEIJING: Chinas spending on fixed assets such as roads and power plants accelerated in the first five months of the year, prompting predictions of imminent monetary tightening to slow the worlds fourth-largest economy.

Fixed investment in urban areas rose 25.9 per cent from a year earlier, picking up from 25.5 percent growth in the January-April period, the National Bureau of Statistics said on Friday.

The median forecast of economists polled by Reuters was for a rise of 25.7 per cent, although a government source familiar with the data had said it would be 25.9 per cent.

The report capped a strong set of monthly data. Chinas trade surplus rose more than 80 percent in the first five months, industrial output surged 18.1 percent compared with a year earlier and consumer price inflation quickened to 3.4 per cent. Money and credit growth was also strong.

Chris Leung, a senior economist at DBS in Hong Kong, said the authorities could tighten policy at any time. I think the possibility that they move today is actually high, Leung said.

Premier Wen Jiabao served notice after a meeting of his cabinet on Wednesday that further monetary tightening and investment curbs were on the way. Leung said he expected the sixth half-point increase this year in the proportion of deposits that banks must hold in reserve as well as a 27 basis point increase in bank deposit rates and a rise of 18 basis points in benchmark lending rates.

China traditionally moves interest rates in increments that are divisible by nine.

The Peoples Bank of China, the central bank, has already raised interest rates twice this year to rein in an economy that is on course to grow by double digits in 2007 for the fifth year in a row.

The Shanghai stock market took the speculation in its stride. The main index recouped early losses to show a gain of 0.67 per cent in afternoon trading.

Companies fund more than half their capital spending from their own resources. But they also have strong incentives to borrow: bank loans cost only around 7 per cent even though the economy is expanding at close to 15 percent in nominal terms and industrial profits are growing by over 40 per cent a year.

Chen Jijun, an analyst at CITIC Securities in Beijing, said the cost of capital was simply too low.

I think the government will take swift measures in the near term, he said. A rate increase could even happen today.

The quality of the investment figures, as with many other Chinese statistics, frustrates market economists. They are nominal, not inflation-adjusted; they include land purchases; and they include sales of second-hand capital equipment.

But analysts said the robust trend was clear enough to be of worry to policy makers who are determined to reduce wasteful investment, especially in sectors that consume a lot of energy and create a lot of pollution.

The details of the report contained both good news and bad news for Chinas planners.

Investment in non-metal minerals, including cement, leapt 52.6 per cent in the first five months, up from 48.3 per cent in the January-April period, suggesting an unwelcome acceleration in construction in coming months.

The tempo of real estate investment was barely changed in May, up 27.5 per cent in the first five months after a gain of 27.4 per cent in the January-April period.

By contrast, the pace of investment in ferrous metals slowed markedly, hinting at success for the government in its campaign to consolidate the steel industry, according to Qian Wang, an economist with J P Morgan Chase in Hong Kong. Capital spending in non-ferrous metal smelting and processing also slowed, she noted in a circular for clients.

The fast pace of investment in several non-ferrous metal sectors early this year, such as aluminum, has triggered a series of targeted administrative measures, including strict scrutiny of investment projects and loan applications, which have likely helped curb investment growth in these sectors.

http://www.thenews.com.pk/daily_detail.asp?id=60678


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## Neo

*China mining major around the corner *

LONDON: China may yet target a mining major as it scours the world for new sources of natural resources to feed booming domestic demand for raw materials to satisfy infrastructure needs.

Its strategy may also speed the emergence of Chinese mining companies big enough to compete with major Western counterparts, analysts say.

China is the worlds top producer and consumer of many metals and has bought into numerous mine projects or smaller companies in recent years, including copper, bauxite and iron ore, to feed its voracious demand for Theres definitely a short-term strategic requirement, but theres a wider political dimension, independent consultant Angus MacMillan said.

Theres an element of central planning, China is looking to control a large proportion of natural resources on a long-term basis. 

He said the country was looking at where it stood in the global picture and deciding where it wanted to be. Were seeing the next global empire, he added.

Magnus Ericsson, senior partner at Stockholm-based consultancy Raw Materials Group (RMG), said current consolidation in Chinas metals industry would ultimately create big companies there, which in turn would look overseas.

This is the first ripple on the surface of a big wave, he said.

Most saw the buys as symptomatic of Chinas tendency to plan, looking to feed its needs in the long term.

Last week, Aluminium Corp. of China Ltd (Chalco) bought Peru Copper, giving it an option on a big copper project in Peru that may start up around 2010.

China said in March it was creating an investment vehicle to diversify part of its $1.2 trillion in foreign reserves. 

Part of the $200 billion fund, which will allow it to take on sizeable interests, is expected to be invested in commodities given Chinas lack of many key resources including oil.

Chinese firms have already invested heavily in Australia, Africa, Latin America and parts of Asia, often in countries shunned by Western miners due to perceived high political risk.

http://www.thenews.com.pk/daily_detail.asp?id=61215


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## Neo

* China urges US not to tighten high-tech exports *

BEIJING: Beijing urged on Tuesday the United States to make positive efforts to resolve the bilateral trade imbalance after Washington decided last week to tighten controls on high-tech exports to China.

If you want to promote positive progress (in bilateral trade), you need the two sides to make joint efforts, especially on the issues that the US side hopes to resolve, the trade deficit, Foreign Ministry Spokesman Qin Gang said.

We hope the two sides can make positive efforts one point is to relax the control of US high-tech products to China, he told reporters.

With US concerns growing that Beijing is using high-technology imports from the United States to accelerate a massive military buildup, Washington on June 15 slapped new controls on high-technology exports to China.

It also moved to create a pool of so-called trusted customers within the Chinese business community who will be rewarded for compliance with US guidelines.

However, China sees such worries, which will lead to the requirement of US government licences on exports of 20 product categories ranging from avionics to computer software, as an excuse that might undermine normal trade.

We do not hope that by this excuse the obstacles impede the normal trade between the two sides, Qin said.

China can buy the products that China is interested in, instead of the beans, beef and planes, he said.

But if you want to change the trade balance between the two sides, on the high-tech products exports the US side should take complete actions.

Chinas Ministry of Commerce on Tuesday also expressed regret at the US decision, saying China preserves the right to take corresponding measures.

It is not appropriate for US to issue the new rules without fully considering Chinas views, Commerce Ministry Spokesman Yao Shenhong said in a statement posted on the ministrys website.

The new rules increased the costs and will severely affect the confidence for companies from both countries to carry out high-technology and strategic trade.

http://www.thenews.com.pk/daily_detail.asp?id=61214


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## Neo

* Hermes aims to triple China outlets *

SHANGHAI: French luxury goods maker Hermes International aims to more than triple its number of stores in China over the next five years to tap rapid growth in luxury goods spending, its China chief said on Tuesday.

The company aims to have 25 stores in China in five years, up from seven now, with plans to add three stores this year and up to five next year, Leo Lui, president of Hermes China, told Reuters on the sidelines of a media event.

Most Hermes stores are now located along Chinas affluent eastern coast, but will be spread across the country as the expansion proceeds, he said.

China is our fastest growing market in the world, he added.

Hermes, a maker of trademark silks and leather goods, competes with other foreign houses such as LVMH Moet Hennessy Louis Vuitton in Chinas luxury goods market, which is growing at 10 to 20 per cent a year as the ranks of wealthy consumers swell.

A Shanghai resident recently bought a Hermes crocodile-skin bag for 1.6 million yuan ($210,000), Lui said, equivalent to 65 times the citys average annual wage.

http://www.thenews.com.pk/daily_detail.asp?id=61216


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## Neo

*China eyes Airbus plants *

SHANGHAI: One of Chinas major state-run aircraft makers may be interested in buying some of Airbuss plants in Europe, state press said on Wednesday, citing a senior company official.

If a Chinese aerospace company could successfully buy or take a stake in (Airbus plants), it would contribute hugely to the development of our industry, the China Business News quoted AVIC I general manager Lin Zuoming as saying at the Paris air show. China would become a very competitive supplier.

AVIC I, more formally known as China Aviation Industry Corp One, was not immediately available to confirm the report.

However, a source close to the matter attending the Paris air show told AFP the chances of a Chinese firm buying an Airbus base were extremely thin.

The chances of the Chinese being considered are very limited, said the source.

Airbus wants to sell at least three of its 16 factories as part of major restructuring efforts to swing the struggling aerospace giant back to profit.

http://www.thenews.com.pk/daily_detail.asp?id=61294


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## Neo

*China poised to set up $200 billion investment fund ​*
BEIJING: China took a big step on Wednesday towards establishing a fund that will invest $200 billion of the countrys $1.2 trillion in foreign exchange reserves in assets around the globe. 

The embryonic agency has already spent $3 billion on a 10 percent stake in Blackstone, a US private equity group, as part of a drive by Beijing to earn higher returns by making riskier investments. 

Lawmakers started to review a proposal that would authorise the Ministry of Finance to issue 1.55 trillion yuan ($203.5 billion) in special treasury bonds to buy foreign exchange to fund the start-up of the agency, Xinhua news agency reported. The bond plan, submitted by the State Council, Chinas cabinet, is almost certain to be approved. 

The finance committee of parliament endorsed the proposal and commended it to the full standing committee, which is in session until Friday, Xinhua reported. 

It said the tenor of the book-entry bonds would be at least 10 years; the interest rate would depend on market conditions. 

Xinhua did not say whether the bonds would be issued directly to the Peoples Bank of China, which controls Chinas reserves, or sold in the domestic market with the proceeds used to buy foreign exchange from the central bank. 

The latter method would drain cash from the banking system and call for careful management by the central bank to avoid a destabilising spike in interest rates, economists said. 

Growing unease: China currently invests the bulk of its reserves in safe but relatively low-yielding US bonds. 

Officials have cited Singapores state investment funds as a model for its as-yet unnamed agency, suggesting it will in future be buying stakes worldwide in publicly quoted companies and real estate as well as making private equity investments. 

The Middle East is one area of interest. Dubai and Chinese officials have already begun talks on cooperation between their respective state investment agencies, a senior Dubai executive said on Wednesday. 

The Chinese will be looking at investments that we already have in the Middle East and in Western regions of the world, Yu Lai Boon, chief investment officer at state-holding company Dubai World Group, told Reuters in Singapore. 

Investment funds managed by governments control an estimated $2.5 trillion in global wealth, outstripping hedge funds. 

The Chinese agency will become one of the biggest such funds, which are coming under growing scrutiny in developed countries whose assets are likely to be on their shopping list. 

Clay Lowery, the US Treasurys acting undersecretary for international affairs, called last week on the International Monetary Fund and the World Bank to draft a best-practices guide to monitor the investment policies of sovereign wealth funds. 

It is hard to dismiss entirely the possibility of unseen, imprudent risk management with broader consequences, he said. 

Kuwait and the United Arab Emirates set up rainy-day funds years ago in the form of state-owned investment vehicles to manage periods of low oil export earnings. Russia has a fund for future generations, as does Norway. 

Germany is especially concerned by the rapid growth of sovereign funds, which Morgan Stanley says could have assets of $12 trillion by 2015, roughly the size of the US economy. 

We are watching closely how state-controlled investment firms from Russia, China and the Middle East buy or sell stakes in companies, Germanys Deputy Finance Minister Thomas Mirow told Handelsblatt newspaper this week. 

China has said its investment in Blackstone was crafted in such a way as to allay political suspicions. Its stake was small enough not to need US approval, it surrendered its voting rights and it agreed to keep its investment for four years. 

IMF chief economist Simon Johnson said on Tuesday that policy makers must cast a careful eye over state-run funds. 

What is the investment strategy of these funds and what is their leverage? I dont know, he said. People are beginning to feel uncomfortable about this. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\06\28\story_28-6-2007_pg5_23


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## Neo

*Distrust of US, Russia and China growing around world​*
WASHINGTON: Unease with American foreign policy and President George Bush has intensified in countries that used to be the closest US allies, while Russia and China also face growing international wariness, a survey released on Wednesday said. 

Support for the US-led war in Iraq, the NATO military action in Afghanistan and worldwide American efforts against terrorism has dropped since 2002, according to an international survey by non-partisan Pew Research Centre. Views of the US in much of the Muslim world remain particularly negative, the poll discovered. In one instance of Bushs unpopularity, the poll showed he is less trusted on foreign policy than Russian President Vladimir Putin by allies Britain, Germany and Canada, even though faith in Putin himself has also plummeted. About half in the US say they have little or no trust in either leaders conduct of foreign affairs.

Bushs sagging numbers partly reflect widespread opposition to the US war in Iraq. Of the countries surveyed, including the US, only people from Israel, Ghana, Nigeria and Kenya do not favour the removal of American forces from Iraq. The State Department declined to comment on the report, which covered 46 countries including the Palestinian territories.

However, the US is still seen favourable in most countries surveyed, including India, Japan, Italy, Israel and many African countries. American culture is widely admired and many believe moving to the US can lead to a better life. Yet, a majority believe the US does not consider their interests when formulating its foreign policy, worry that US customs are hurting their countries and think the US contributes to the gap between poor and rich nations. The US continuing battle against terrorism has worsened its overall image as well. It was 75 percent favoured in Britain in 2002 to 51 percent now, has dropped from 60 percent to 30 percent in Germany and from 64 percent to 56 percent in Mexico.

Views of the US have also slipped in Russia, Indonesia, Canada, China and India. The US is, however, seen favourably by 9 percent in Turkey, 13 percent in the Palestinian territories, 15 percent in Pakistan and 20 percent in Jordan.

Though Putin is popular in Russia, his worldwide image has declined. Only in China, Ukraine and a handful of African nations did most express trust in his foreign policy. Views of Russia are mixed, with slightly favourable opinions in the US, China, India and South Korea. Though more than half the nations polled have positive views of China; its image has widely worsened. Countries in Africa, Latin America and Asia see China most favourably, although two-thirds in Japan view it negatively.

Unease with Beijings military was widespread, with majorities in most countries surveyed expressing worries, including Japan, South Korea, much of Europe and the US.

The report also found concern over environmental issues has grown more than any other global problem the poll tested. However, only 37 percent in the US view it as a major concern  less than in any other advanced nation surveyed. The spread of nuclear weapons and ethnic hatred were the two most often cited worries in the Middle East. Irans potential acquisition of nuclear arms is only favoured in majorities in Pakistan, Bangladesh and the Palestinian territories.

The polling was conducted lat April and May and the number of people in each country ranged from 500 to 2,026. The margin of sampling error ranged from plus or minus 2 to 4 percentage points. ap

http://www.dailytimes.com.pk/default.asp?page=2007\06\28\story_28-6-2007_pg7_50


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## Neo

*China&#8217;s GDP expected to grow 10.8&#37;  in 2007 ​*
SHANGHAI: Growth in China&#8217;s economy is expected to expand at a rapid rate in 2007, with inflation ticking higher to 3.2 percent, state media reported Friday, citing the central bank. The nation&#8217;s gross domestic product (GDP) should expand 10.8 percent this year, slightly higher than the 10.7 percent in 2006, the fourth consecutive year of double-digit growth, according to the bank&#8217;s research report published in the China Securities Journal. 

It said that after the blistering 11.1 percent growth recorded in the first quarter, the second quarter pace of growth should slip to 10.9 percent followed by 10.7 percent and 10.6 percent in the third and fourth quarters respectively. &#8220;The trend in the high growth of gross domestic product should suggest an adjustment, but the extent of a pull-back is unlikely to be large,&#8221; the bank said. Recent inflation pressure was expected to ease in the second half, the report said, but was still above the official target of 3.0 percent. The consumer price index, a key measure of inflation, hit a two-year high of 3.4 percent in May. 

The People&#8217;s Bank of China also went on to add that growth in the trade surplus would fall gradually amid faster growth in imports and a decline in exports. It said this was partially due to cuts or the removal of tax rebates for exports and imposing a tax on energy intensive export products. China&#8217;s trade surplus for May hit $22.45 billion, up nearly 73 percent from a year earlier and was the second-highest ever behind February&#8217;s figure of $23.7 billion. afp

http://www.dailytimes.com.pk/default.asp?page=2007\06\30\story_30-6-2007_pg5_30


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## Neo

*Secret of China's economic revolution ​*
LAHORE (July 05 2007): Chinese people are well-mannered and very friendly. Hard work and dedication is the secret of their revolutionary economic and industrial development and they do every job with dedication devotion and hard work.

They preferred mega projects for development and consider education as the basis of development that's why they focused a lot on education and implement it in their practical life.

These observations were expressed by the students and teachers who came from China after completing their educational visit during a meeting with Acting Vice Chancellor Punjab University Professor Dr Muhammad Arif Butt here on Wednesday.

The language is the basic problem for foreigners in China, but now the Chinese government has initiated many language courses to overcome this issue. They focused on science and technology instead of educated social science. Their students are well-mannered and they are very serious about their studies.

Their institutions compete at the international level despite minimum facilities and sources. It is said that Chinese uses bicycles but this concept is not true. At present, there are also two groups of society in China, one is worker and other is entrepreneur, having all facilities but the main aim of both are to serve their country and nation.

The history of Chinese civilisation is of thousands years-old and they developed their civilisation a lot which were also adopted other nation in the world, they expressed. The delegation left for China on June 2 under the leadership of Professor Muhammad Azhar Ikram and returned on June 29. The delegation visited Beijing and other Universities and other educational institutions of China during their visit.

http://www.brecorder.com/index.php?id=587154&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*China trade surplus to have risen again ​* 
BEIJING: Chinas trade surplus in June is likely to have risen from the near-record high of a month earlier, as businesses rushed to ship goods ahead of new export curbs, state press reported on Friday. 

The rise is expected to have pushed the trade surplus for the first six months of 2007 up 60 per cent from a year earlier to $110 billion, Xinhua news agency said, citing a senior analyst at the customs administration. 

The reason for the June surge, the report said, is that manufacturers rushed to complete orders ahead of a rule that took effect from July 1 that aimed to slow exports. The government announced on June 19 that it would cut or remove export tax rebates for 2,831 commodities, or a third of total exports, from the beginning of this month. 

The move came after China imposed extra export tariffs and slashed import duties as of June 1, which led to a similar export boom and lifted Mays trade surplus by 73 per cent on year to $22.45 billion, the third-highest ever. 

Chinas huge trade surplus, which soared 74.2 per cent to $177.5 billion last year, has been a constant source of friction with its major trading partners, mainly the United States and the European Union. 

Beijing has been constantly accused of keeping the Chinese currency artificially low to make exports cheap, giving its exporters an unfair competitive edge. 

Huang Guohua, the senior official from the General Administration of Customs who Xinhua cited, said the trade surplus for the rest of 2007 would remain high but the growth rate should slow. For the first five months, the surplus jumped 83.2 per cent from a year earlier to $85.72 billion, according to official data.

http://www.thenews.com.pk/daily_detail.asp?id=63433


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## Neo

*Chinas trade surplus soars 85.5pc to record ​* 
BEIJING: Chinas trade surplus soared 85.5 per cent to hit an all-time high in June, official data showed on Tuesday, setting the stage for an enormous full-year figure that is sure to inflame tensions with the United States and Europe. 

The surplus hit a monthly record of $26.91 billion as exporters rushed to beat new curbs that went into place on July 1. Exports for June totalled $103.27 billion and imports were $76.36 billion, the customs administration said in a statement on its website. China posted a trade surplus of $112.53 billion in the first six months of 2007 it said, without giving comparative data. 

But based on previously released figures, the June surplus was 85.5 per cent higher than the same month last year and the six-month figure was 83.1 per cent larger than the corresponding period in 2006. The June surplus far exceeded the previous monthly record high of $23.83 billion set in October last year. 

Although the June figure was partly due to businesses rushing to beat the new curbs on exports, analysts said China would inevitably come under more global pressure as the surplus ballooned throughout the rest of the year. Chinas top economic planning said in May that the trade surplus was likely to hit $250-300 billion in 2007, up from a record $177.5 billion last year and a massive increase from $31.98 billion in 2004. 

The surplus has been a constant source of friction with its major trading partners, mainly the United States and the European Union. 

Beijing has been routinely accused of keeping the Chinese currency artificially low to make its goods cheaper, giving its exporters an unfair competitive edge. This level of trade surplus is unprecedented for China or any other major economy in the world, Goldman Sachs economist Hong Liang said. 

This again highlights the ineffectiveness of the policy tinkerings that have so far failed to tackle the root cause of Chinas bloating trade surplus: the significantly undervalued currency. Last month China escaped being branded a currency manipulator in a US Treasury report. If it had been so accused, then the Asia giant would have become subject to a legal process that can trigger sanctions under US law. 

US lawmakers critical of Chinas trade and foreign exchange policies have in the meantime also unveiled legislation that could make it easier to impose sanctions on Beijing. Ping An Securities analyst Sun Fanghong agreed that the larger surplus would again pressure the currency but was unlikely to affect Beijings stated policy of maintaining the slow but steady rise of the yuan. The surplus absolutely will impact the yuans appreciation but I dont think the Chinese government will change its slow and steady pace (of adjustment) easily, she said. 

A senior analyst at the customs administration said last week that one of the reasons for the then anticipated June rise was that manufacturers had rushed to ship orders before the end of export tax rebates on July 1. The government announced on June 19 that it would cut or remove export tax rebates for 2,831 commodities, or a third of total exports, from the beginning of this month in another effort to bring some balance to the trade account. 

Although analysts said exports could fall in the months ahead as result of the curbs, Tuesdays data also showed a troubling fall in imports  precisely the opposite of what China needs to narrow the surplus. The composition surprised us  export growth was not as strong as we had expected. 

Part of the reason for that record trade surplus is because import growth was weaker than it has been in recent months, said Robert Subbaraman, analyst at Lehman Brothers in Hong Kong.

http://www.thenews.com.pk/daily_detail.asp?id=63933


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## Neo

*China revises up economic growth ​*  

BEIJING: Chinas white-hot economy expanded even faster than originally thought last year, the government said on Wednesday in revising 2006 the growth number to 11.1 per cent from 10.7 per cent. The economy last year was worth 21.09 trillion yuan, the National Statistics Bureau said, or about $2.65 trillion based on average 2006 exchange rates. 

The original 10.7 per cent growth figure was already an 11-year high and the revision puts the Asian giant even closer to surpassing Germany as the worlds third-biggest economy, which economists had initially forecast to happen in 2008. 

In what has become an almost routine mid-year adjustment, the total economic growth for 2006 was raised from an original January estimate of 20.9 trillion yuan. The bureau said in a notice posted on its website that the upward revision was made due to a continuing assessment of last years economic activity, and the figures could grow still based on a final assessment later this year. The initial January economic figure underestimated growth in the industrial and services sectors, the bureau said. 

The countrys double-digit growth, fuelled by investment and exports, has led to concern that the temperature might be too hot and Beijing has introduced a series of measures aimed at cooling things down, to little effect. 

However one impact of the upward revision will be to make the first-half 2007 growth figures smaller due to the higher 2006 base of comparison, said Qi Jingmei, a researcher with the State Information Centre, a government economic think tank. This will reduce the pressure on this years figures. The direct impact will be that this years economic growth rate will seem slower, Qi told AFP. The first-half numbers of 2007 are due to be released next week. 

Past re-assessments have vaulted China higher in the world economic rankings. In late 2005, economic activity for the previous year was revised upward by a hefty $284 billion, moving China up several spots to the current number four.

http://www.thenews.com.pk/daily_detail.asp?id=64107


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## Neo

*Chinas forex reserves top $1.33 trillion​*
BEIJING: Chinas foreign exchange reserves, already the worlds largest, surpassed $1.33 trillion at the end of June, the central bank said Wednesday.

At $1.3326 trillion, the reserves were up 41.6 percent from 12 months earlier, the Peoples Bank of China said in a statement on its website. A total of $266.3 billion have been added to the reserves total in the first half of 2007, 144 billion more than a year ago, the bank said.

The announcement came one day after China said that its trade surplus for June had soared 85.5 percent to hit a record monthly high of $26.91 billion.

Chinas soaring trade surplus is one of the main factors contributing to the bulging forex reserves. Chinas top economic planning agency said in May that the trade surplus was likely to hit $250-300 billion in 2007, up from a record $177.5 billion last year and a massive increase from $31.98 billion in 2004.

The surplus has been a constant source of friction with its major trading partners, mainly the United States and the European Union. A large proportion of Chinas forex reserves are believed to be tied up in relatively low-yield US Treasury bonds. As part of its efforts to maximise returns, the government is preparing to set up a state-controlled investment firm, which will reportedly manage a fifth of the forex reserves. afp

http://www.dailytimes.com.pk/default.asp?page=2007\07\12\story_12-7-2007_pg5_20


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## Neo

* Chinas roaring economy set to overtake Germany  ​* 
SHANGHAI: Chinas economy grew so rapidly in the first half of 2007 that it is likely to overtake Germany as the worlds third-largest by the end of this year, analysts say. Chinas sizzling economy expanded even faster than originally thought last year, with the government revising 2006 growth domestic product (GDP) to 11.1 per cent from 10.7 per cent. 

Data released by Chinas statistics bureau last week showed the economy was worth 21.09 trillion yuan in 2006, about $2.65 trillion based on last years average exchange rate of 7.97 yuan to the dollar. The revision puts China in striking distance of Europes largest economy within months. With this upward revision, it is highly likely that China will bypass Germany to become the third-largest economy in the world in current US dollar terms by the end of this year, said Hong Liang, an economist at Goldman Sachs. 

According to the World Bank, Germanys economy was worth $2.9 trillion at the end of 2006. Economists expect GDP in the second quarter to near or equal its breathtaking January to March pace of 11.1 per cent growth. JP Morgan Chase Bank economist Wang Qian put the second-quarter acceleration at 10.6 per cent, and said it would pick up speed in the second half of the year. The torrid pace of development means that Chinas economic czars will once again have to devise fresh ways to prevent the export powerhouse from the kind of overheating that could trigger a slide into financial crisis. Regulators have already taken this year introduced a slew of piecemeal administrative measures to slow the economy, including two interest rate hikes, five increases in bank reserve requirements and new export curbs. 

Exports, one of Beijings biggest headaches given the friction it causes with its two largest trade partners, the European Union and the United States, have continued to flood international markets. The widening trade gap is on route to becoming the globes largest ever after Beijing announced last week that its surplus had jumped more than 85 per cent in June to $26.91 billion. Although the June figure was partly due to factories rushing to beat new curbs on exports that took effect July 1, the huge global demand for Chinese goods means the surplus will expand through the rest of the year, analysts said. China has become the worlds factory for manufactured consumer goods, said Qu Hongbin, a senior economist at HSBC in Hong Kong. If global consumer demand remains then Chinese exports will grow. There is not a lot that government policy can do about that. Washington and Brussels believe one step to staunching the tide of Chinese goods would be greater appreciation in the currency, which trade partners say is artificially low and boosts Chinas business competitiveness. But Chinas autocratic leadership fears that could destabilise its financial system, making such a step highly unlikely, in keeping with the governments repeated position of allowing the yuan to rise slowly. 

Earlier this month the nations top economic planner said China had to further tighten macroeconomic controls in the second half in the face of growing financial risks. The trend is of an economy that is moving from a bias of fast growth to overheating, said a research arm of the National Development and Reform Commission. 

Li Huiyong, chief analyst at Shenyin Wanguo Securities in Shanghai, said the government had to get cracking. At the moment, there is no obvious change to the overheated economy, with inflation and investment (levels) likely to jump, said Li. Under such circumstances, the major task is to prevent further overheating and strengthen controlling measures. 

http://www.thenews.com.pk/daily_detail.asp?id=64678


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## Neo

*Is Chinas economy overheating or not?​*
BEIJING: The debate over whether Chinas economy is overheating is, well, overheating. 

Conventionally, if demand for a countrys goods and services outstrips its capacity to supply them, the result is a current account deficit, rising inflation and squeezes in areas like transport. 

By those measures, some economists contend, China is hardly boiling over: its current account is in surplus by about 10 percent of GDP and non-food inflation is just 1.0 percent. 

But Zhu Jianfang, chief economist at CITIC Securities in Beijing, argues that traditional benchmarks alone are a poor gauge for judging whether China can keep growing at the 11.9 percent annual pace it chalked up in the second quarter. 

If we take into consideration the economys sustainability, the intensity of energy consumption and environmental protection, Chinas economy now is indeed overheated, Zhu said. 

Its true that we see no serious bottlenecks in transport and energy supplies, but we are seeing environment constraints nationwide, which is an alternative sign of economic overheating, he added. 

Li Huiyong, chief economist at Shenyin and Wanguo Securities in Shanghai, agreed that the economy was already overheated. 

Tightness everywhere: Chinas annual consumer inflation, which accelerated to a 33-month high of 4.4 percent in June, was mainly driven by a spike in the price of meat and eggs. 

But Li said this did not make it any less pernicious because higher food prices have in the past often triggered broader inflation. 

In addition to a 11.3 percent rise in food prices in the year to June, consumer goods prices rose 5.2 percent and residential costs 4.4 percent. 

The central banks corporate goods price index, which measures the prices paid by companies for inputs, is also rising. It was up 5.4 percent in the year to June, a two-year high. 

Hong Liang, chief China economist at Goldman Sachs in Hong Kong, said that 11.9 percent GDP growth is clearly above the economys potential, which she estimates at 9-10 percent. The World Bank puts it at 10-11 percent. 

Although domestic demand is still lacklustre, Liang cited several factors pointing to very high overall capacity use. 

 The power sector is running very tight despite significant capacity expansion in recent years. The power production growth rate is now approaching its 2004 peak. 

 Demand for coal is strong; China became a net coal importer in the first quarter for the first time in history. 

 The inventory-to-sales ratio for industrial enterprises is at historical lows. 

 Nominal and real wages have been increasing rapidly, suggesting tightness in the labour market. 

In our view, the authorities would need to tighten macro policies significantly in the near term to reduce overheating pressures in the overall economy, she said in a note to clients. 

Is it really that bad? Other economists are less worried. Jonathan Anderson with UBS said he does not expect a draconian policy response. 

With the exception of the official GDP figure itself, we cant find a single alternative data point in the economy that suggests egregious overheating, and most point to a stable or even slowing economy, Anderson said in a report. 

JP Morgan Chase economists added that non-food inflation remains well contained and strength in capital spending enjoys fundamental support from growing profits. 

So policy makers can take some comfort that the overheating risks may not be as severe as in past cycles, they wrote. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\07\27\story_27-7-2007_pg5_40


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## Neo

*Chinas Politburo vows to tackle econ overheating ​*
BEIJING: Chinas ruling politburo agreed at a meeting on Thursday that its biggest economic priority is to avoid overheating, Xinhua News agency reported. The meeting, chaired by President Hu Jintao, reaffirmed the tightening bias to Chinas monetary policy and promised action to rein in rapidly rising prices. Fixed-asset investment is still high, money and credit are growing fairly fast, the trade surplus is widening and structural adjustment of Chinas economy is not proving to be effective enough, Xinhua reported the meeting as concluding. Energy-saving is proving an acute challenge, the agency added. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\07\27\story_27-7-2007_pg5_41


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## Neo

*China stock market at record high​*
SHANGHAI: Chinas stock market rose 0.52 percent to a record high close on Thursday, boosted by strong corporate earnings for the first half of the year. But trading turnover was moderate and the benchmark index came well off highs hit earlier in the day, as many investors remained wary of pushing prices up sharply because of concern about high valuations and government policy. 

The Shanghai Composite Index ended at 4,346.458 points, exceeding its previous all-time closing high of 4,334.924, hit on May 29. During the day it rose as high as 4,371.512 points, a fresh intraday record. 

Gaining stocks outnumbered losers by 727 to 141. But turnover in Shanghai A shares totalled a moderate 130.8 billion yuan ($17.3 billion), well below daily levels around 200 billion yuan during rallies in May and June. Thursdays close left the index up 11 percent over the past five trading days and up 62 percent since the start of this year. 

This years bull run has sparked concern among Chinese authorities that stocks might be forming an unsustainable and dangerous bubble. After Mays record high was hit, the government hiked the stock trading tax to cool speculation, causing shares to plunge. But better-than-expected corporate profits announced in recent days have reignited the bull run. 

The official China Securities Journal said the 80 listed firms which had released first-half earnings by Tuesday reported a leap in combined net profit of 82 percent. In addition, banks have released strong preliminary estimates for earnings. 

Some traders are predicting a rise to at least 4,500 points in coming weeks. But a rapid climb above that level could prompt further official action to cool the market, many believe. 

Other risks for the market include further monetary tightening, as inflation shows no clear sign of peaking, and a heavy supply of new shares in coming months as top Chinese companies list in Shanghai. 

Haitong Securities, which has just obtained a backdoor listing by merging with Shanghai Urban Agro-Business Co., jumped its 10 percent daily limit to 52.11 yuan after saying first-half net profit soared more than nine-fold. But most financial stocks were weak, with Ping An Insurance sliding 1.46 percent to 81.02 yuan. 

In another sign of concern about high stock valuations in Shanghai, the A shares of China Southern Airlines rose just 0.82 percent to 12.29 yuan after the airline said it expected to return to profit for the first half of 2007. Its Hong Kong-listed H shares performed much more strongly, rising 4.86 percent to HK$6.69, while its New York-listed shares soared 11.48 percent on Wednesday. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\07\27\story_27-7-2007_pg5_26


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## Neo

* China on track to overtake US as No 2 exporter ​* 
BEIJING: China is on track to overtake the United States as the worlds second-largest exporter this year, Xinhua news agency quoted a senior official as saying on Saturday, and could top Germany as the worlds leading exporter next year.

Vice Minister of Commerce Yu Guangzhou told the China Economic Development Forum that China currently ranks third in export volume after Germany and the United States.

He said Beijing could overtake the US by the year-end if current trade trends continue, Xinhua reported.

In 2006, Chinas export volume trailed US exports by less than $70 billion, while the pace of export growth was 7 percentage points faster than that of the US.

If that growth continues, Chinas exports could exceed US exports by $50 billion this year, Yu said.

However, Beijings national safety watchdog has warned that Chinas failure to improve the quality of some of its exported goods was undermining its trade strength.

Concern over potentially tainted products made in China has resulted in recalls or bans on such goods from Chinese toothpaste to toys and pet food.

We may have entered the ranks of the big traders, but were still far, far from being a strong trade power, and the fundamental reason is that our product quality competitiveness is not strong, Li Changjiang, head of the General Administration for Quality Supervision and Quarantine, was quoted as saying by the official Peoples Daily on Thursday.

In terms of total foreign trade volume, China may surpass Germany to become the worlds No.2 this year or next, with only the United States ahead, according to the Xinhua report. Customs statistics show that Chinas foreign trade volume reached $980.9 billion in January-June, up 23.3pc from the same period a year ago.

China on track to overtake US as No 2 exporter


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## Neo

*China to invest $265bn in renewable energy​*
BEIJING, Sept 4: China plans to invest 2 trillion yuan ($265 billion) in renewable energy by 2020, most of it corporate cash, to wean itself off polluting coal as it aims for cleaner growth, a top energy planner said on Tuesday.

Chen Deming, vice-chairman of the National Development and Reform Commission, added that China aimed to be using domestically made and designed equipment by then, which could cut prices for clean energy worldwide.

We expect the majority of the funds to come from companies, Chen said when asked about the 2 trillion yuan forecast.

The cash would help China meet its target to boost the portion of its energy that comes from renewable sources to 15 per cent by 2020, up from 7.5 per cent in 2005, as it wrestles with the legacy of decades of promoting growth at any cost.

Of around 1 trillion yuan slated for spending on pollution reduction and energy efficiency goals for 2010, 80pc would come from companies and just 10 per cent from central government with local authorities and others making up the rest, he added.

Over half the proposed investment will go into large dams, which environmentalists criticise and some scientists believe are a significant source of greenhouse gas methane.

But Chen said the benefits of dams outweighed their costs.

Beijing is also coming under increasing international pressure to curb its emissions of greenhouse gases, expected to overtake those of the United States this year -- although on a per capita basis these are far below developed world levels.

China to invest $265bn in renewable energy -DAWN - Business; September 05, 2007


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## Neo

*Chinas economy edges closer to overheating​*(AFP)

18 October 2007 

BEIJING - Chinas inflation rate hovered at near 10-year highs in September as the economy edged closer to overheating, a top planning official said on Thursday, signalling that more cooling measures were on the way.

The consumer price index rose 6.2 percent in September and 4.1 percent for the first nine months of the year, National Development and Reform Commission vice chairman Zhu Zhixin told journalists.

The September figure was down slightly from a 6.5 percent rise in August, the highest inflation China had seen in more than a decade, but it ensured the governments full-year target of 3.0 percent would be exceeded.

We estimate the price level will remain high for quite some time, Zhu said.

There are a number of acute problems and difficulties in Chinas economy. The trend of fast growth tending towards overheating has not been reversed.

He said the economy had expanded by around 11.5 percent in the third quarter, further revealing a lack of bite to interest rate hikes and other measures taken by the government to cool the economy.

The GDP (gross domestic product) growth in the third quarter will be similar to growth in the first half, Zhu said. China will officially announce the third quarter economic statistics next week.

Chinas gross domestic product expanded 11.5 percent in the first half, after recording a blistering 11.9 percent in the second quarter and 11.1 percent for all of 2006.

Zhu said that the economy had not yet overheated, citing a basic balance between supply and demand and pointing out that rising food and energy prices were the main reasons for the high inflation.

Taking food and fuel out of the equation, the consumer price index for the nine months would have been less than 1.0 percent, he said.

However Zhu flagged that further monetary measures would be taken to address the high inflation rate.

While Zhu declined to go into specifics on what cooling measures might be taken, economists said a sixth interest rate hike for the year was not far away.

Wang Tao, a Beijing-based economist with Bank of America, said next weeks official figures will show the economy had grown 11.5 percent or 11.6 percent in third quarter.

(This) shows that economic growth has not fundamentally cooled and that the risk of overheating is still there, Wang told AFP.

This kind of situation means that the pressure on the central bank to raise interest rates continues to exist.

Wang said the interest rate hike would likely come before the end of the month.

On Saturday, the central bank announced a 0.5 percent hike in the commercial banking reserve ratio, the eighth such rise this year aimed at mopping up the excessive liquidity that is fuelling the booming economy.

The most recent interest rate hike came on September 15.

Stephen Green, Shanghai-based economist with Standard Chartered, predicted one more interest rate hike this year, followed by another two in the first quarter of 2008.

Khaleej Times Online - Chinas economy edges closer to overheating


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## Neo

*Chinese economy to grow 11.5pc​*
BEIJING: The Chinese economy, the worlds fourth largest, will grow by 11.5 percent this year, well above last years rate, Premier Wen Jiabao was quoted as saying in state media Wednesday.

Wen also cautioned against overheating of the economy in remarks to Chinese students and embassy staff during a stay in Singapore, the China Daily said.

Chinas economy expanded by 11.1 percent in 2006, with 2007 likely to become the fifth consecutive year of double-digit growth.

Wen warned against inflation, which lingered at a 10-year high of 6.5 percent last month, and stressed the government must make sure that price hikes do net get out of hand. 

Daily Times - Leading News Resource of Pakistan


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## Neo

*Sarkozy clinches $30bn in trade deals with China ​** 
French firm to build two nuclear reactors in China*

Tuesday, November 27, 2007
BEIJING: French President Nicolas Sarkozy on Monday oversaw the signing of about 30 billion dollars in aviation, nuclear and other deals in what he described as an unprecedented day of trade with China.

The two major agreements announced on the second day of Sarkozys visit to China were contracts for European aerospace giant Airbus to deliver 160 aircraft and French firm Areva to build two nuclear reactors.

Sarkozy said the value of all the deals, signed after he met Chinese President Hu Jintao in the Great Hall of the People, was worth about 20 billion euros (29.6 billion dollars). The total amount of these contracts has never been matched before, Sarkozy told Hu shortly before the official signing ceremony, according to an AFP journalist there. I want to thank President Hu for his personal involvement, he said afterwards.

The most lucrative contract was for Airbus to deliver 110 A320s and 50 A330s in a deal a spokesman for the European firm said was worth 17.4 billion dollars, based on the list price. Airbus spokesman Robin Tao said the agreement was its biggest ever in dollar terms with China, which has the worlds fastest-growing aviation market.

Areva said its contract to build two third-generation nuclear reactors for China Guangdong Nuclear Power Corporation (CGNPC) in southern China was worth eight billion euros (11.9 billion dollars) and was also historic. Its a record. In the history of the civilian nuclear industry, theres never been a deal of this magnitude, Areva chief executive Anne Lauvergeon said.

With China seeking to rapidly build up its nuclear power industry, the deal was important for Areva after losing out in July to US-based Westinghouse Electric in a bid to build four other nuclear reactors.

Other deals announced on Monday included a 750-million-euro telecommunication contract between Alcatel of France and China Mobile, and one worth 80 million euros for Eurocopter to provide China with 10 helicopters.

Hu and Sarkozy also discussed a range of international issues including Taiwan, the crisis over Irans nuclear programme and the apparent progress in winding back North Koreas atomic weapons ambitions.

Speaking to French business leaders on Sunday night, Sarkozy said China should play a more active role in resolving the Iran nuclear standoff and other international disputes, including the domestic political tensions in Myanmar.

China now plays an essential role in the global economy... by its very existence it changes the world balance. That brings with it rights, but also responsibilities, or rather duties, he said.

Sarkozy said on Monday he also raised the sensitive issue of human rights with Hu, urging China to do more, particularly in the areas of building a better legal system, improving media freedom and curbing the use of the death penalty.

I have noted that China has made a lot of progress here (human rights) and that France has expectations that more progress can be made, he said. Sarkozy also called for the yuan to appreciate faster, reiterating calls by many Western nations that are trying to deal with a widening trade imbalance with the Asian powerhouse.

Sarkozy also responded to Hus raising of the Taiwan issue, saying he opposed the islands plan to hold a referendum on UN membership next year. He will leave China Tuesday after visiting Shanghai. 

Sarkozy clinches $30bn in trade deals with China


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## Black Stone

We should really try to close the trade deficit with China.


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## solid snake

Black Stone said:


> We should really try to close the trade deficit with China.



lol good luck with that !


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## Black Stone

solid snake said:


> lol good luck with that !



lol, I know the chances look slim, but got to do something.


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## Neo

*China to hire foreigners​*
BEIJING, Nov 30: China is looking to recruit more foreign talent to help the nation develop industries, such as agriculture, new energy, information technology and biotechnology, state media reported on Friday.The senior official in charge of foreign experts affairs, Ji Yunshi, told China Daily the country is in dire need of overseas talent to help with development and innovation.

Authorities will soon announce policies to offer better conditions for foreigners who come to work with government departments, such as medical insurance, education for children and employment for spouses, he said.

According to its five-year development plan, China hopes to attract 150,000 top-notch professionals

China to hire foreigners -DAWN - Business; December 01, 2007


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## Neo

*Chinas wealth fund​*
BEIJING, Nov 30: China Investment Corp., a company established recently to handle $200 billion of forex reserves, has vowed to play a stabilising role in global financial markets, state media said on Friday.

Lou Jiwei, the former vice finance minister in charge of the company, said no similar sovereign wealth fund had ever been a destabilising factor abroad, the China Daily reported.

They are stabilising the market. The CIC will also do the same thing, he was quoted as telling a conference in Beijing.

Chinas wealth fund -DAWN - Business; December 01, 2007


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## Neo

*$2.1bn power plant​*
BEIJING, Nov 30: Chinas largest coal-fired power plant, a $2.1 billion complex supplying the energy-hungry east coast, has entered into operation, state media reported on Friday.

The four 1,000-megawatt generating units that make up the plant are located in east Chinas Zhejiang province and operated by China Huaneng Group, one of the nations top energy producers, the Xinhua news agency said.

The facility becomes operational at a time when China, which depends on coal for about 70 per cent of its energy needs, tries to rein in output of carbon dioxide and other greenhouse emissions.

It wants the overall economy to be 20 per cent more energy efficient in 2010 than it was in 2005.

$2.1bn power plant -DAWN - Business; December 01, 2007


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## Logic note

*Blinded by China&#8217;s false statistics &#8212;Jonathan Power*



McKinsey, the management consultancy, reports that only 10 percent of China's graduating engineers are good enough to work for foreign companies. It is not surprising that China's software industry lags behind India's because of its fragmented structure and poor management

Beware of extrapolation, a British Chancellor of the Exchequer once remarked: it can make you go blind. It&#8217;s about time this little piece of wisdom was applied to China. But there seems to be a mental block that inhabits newsrooms, academic common rooms and the bureaucracies of many governments. This is despite the pioneering research done by the likes of Professor Lester Thurow and the conclusion of long-time Hong Kong-based China watcher, economist Jim Walker, of Asia&#8217;s leading independent investment bank, CSLA, both of whom have rigorously deflated the wild claims of China&#8217;s official growth statistics, which once again recently got the big headline treatment. Walker concludes that official GDP statistics are a &#8220;fantasy world&#8221;.

In China&#8217;s provinces, the statistics are notoriously unreliable, as local officials inflate them to avoid being punished for poor management of the economy. For its part, the central statistical office calculates GDP through counting increases in value-added production even though much of its statistical information comes from state-owned enterprises that provide poor data. Walker routinely deducts 2 percent from official Chinese growth statistics. This summer, in a little noticed announcement, the Asian Development Bank lopped 40 percent off previous Chinese income per head statistics. That is some revision.

Even if we use Chinese statistics, the overall rate of progress between 1978 and 2003 is not overwhelming. In that period China&#8217;s per capita GDP grew at a compound rate of 6.1 percent. This gives an increase of 337 percent over a quarter of a century. Compare this with Japan&#8217;s, which increased by 490 percent between 1950 and 1973. Both South Korea and Taiwan have done even better the former with 7.6 percent compound growth a year between 1962 and 1990 and Taiwan with 6.3 percent between 1958 and 1990, the years when they were bursting through the industrialisation sound barrier.

The statistics we do have show up some near-insuperable problems. One is that 40 percent of Chinese bank loans are considered &#8220;bad&#8221;, a gigantic misallocation of capital. Another is that China could grow old before it grows rich. Not very long ago China was one of the world&#8217;s most youthful countries. But the one-child policy has had an enormous impact. As early as 2015 China&#8217;s working age population will begin to fall. By 2040, just a decade before China hopes to be a middle-income country, it will have 100 million citizens over 80. That is more than the current worldwide total.

Arnaud de Meyer, deputy dean of INSEAD, the European business school, author of a study on Asian innovation, writes that in relation to its huge development needs, China may already have too little skilled manpower. McKinsey, the management consultancy, reports that only 10 percent of China&#8217;s graduating engineers are good enough to work for foreign companies. It is not surprising that China&#8217;s software industry lags behind India&#8217;s because of its fragmented structure and poor management.

India is far ahead in this regard. India has &#8220;an enviable pool of high quality talented professionals&#8221;, reports a study by Mercer Human Resource Consulting. Moreover, wages among professionals are much lower in India than China. Living costs in Chinese cities are much higher than in India&#8217;s.

It is not surprising that foreign direct investment is now falling in China, albeit from very high levels (and at the same time capital flight is on a fast rise), while India&#8217;s is increasing. If one looks at the non-ethnic Chinese component of foreign investment, China does less well than booming Brazil.

US companies earn something over $8 billion a year from their business and investments in China. But they earn around $7 billion from Australia, a market of only 19 million people and over $9 billion from Taiwan and South Korea with a combined population of 90 million. From Mexico, they earn over $14 billion. Moreover, the American companies that have made big money from China are those like Wal-Mart, the retailer. They are the ones who buy from it rather than the ones who invest in it.

Angela Merkel, the Chancellor of Germany, has taken a lot of flack from China and from her Social Democratic partners in government for talking to the Dalai Lama and being vocal about Chinese human rights failings. She should have no fear - China needs Germany much more than vice-versa.

It has always been strange. It is quite pathetic that Western countries regularly betray each other, and, in so doing, the human rights activists inside China, in an effort to better position themselves in this quite modest marketplace. If Western governments could stand shoulder to shoulder and say once and mean it: &#8220;stop using economic and trade threats, you are in no position to do so, it is unacceptable behaviour&#8221;, Beijing would get the message.

But perhaps after years of propaganda on China&#8217;s &#8220;remarkable future progress&#8221;, we are already blind.


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## Logic note

The coming China crash
By Martin Hutchinson

While the Chinese stock market, as measured by the China Securities Index 300, is down 18&#37; since October 16, that follows a period of almost two years, since January 1, 2006, during which the CSI 300 soared 535%. Chinese economic growth is currently running at more than 11% and the big money is convinced that it will continue. At the same time, the country&#8217;s foreign exchange reserves have grown to US$1.4 trillion, the largest in the world.

A crash would appear to be imminent!

Bears on China have been common for the last decade, and their



track record has not been good. To take just one unfair example, Henry Blodget, the former Internet genius, wrote in Slate in April 2005: "You've probably been daydreaming about the fortune to be made in Chinese stocks. Well, keep dreaming ... you'll eventually conclude that you could have done better selling insurance in Toledo." That was about six months before the Chinese market took off, and if anybody has made 500% on their investment by selling insurance in Toledo during that period, I haven't met him.

To see why a crash may be coming, it is worth examining the behavior of the China Investment Corporation, the US$200 billion sovereign wealth fund set up by the Chinese government in September. Now $200 billion is a fair chunk of cash; you could almost buy all but three US corporations with that (at today's prices, ExxonMobil, General Electric, Microsoft &#8211; there are four or five others including Google that barely top the bar.) Six weeks ago, the power of sovereign wealth funds was celebrated and China Investment's moves into the market were awaited with bated breath.

Well, so much for that. A third of China Investment's portfolio is to be invested in Central Huijin Investment Company, a purchaser of bad loans from the Chinese banks, and another third will recapitalize China Agricultural Bank and China Development Bank, to shape them up for privatization. About $3 billion of the fund was invested in the private equity manager Blackstone in May - that may have bought China useful political contacts, but it is now worth $2 billion. And the remainder is being invested very carefully, primarily in US Treasury securities - which are also losing money steadily in yuan terms.

The lackluster investment strategy of China Investment exposes a central flaw in the Chinese economy, its lack of a rational system of capital allocation. For more than a decade, Chinese state-owned companies have made losses and have been propped up by the banking system. Since 2004, loss-making state-owned companies have been joined by overbuilding municipalities, erecting white-elephant office blocks in attempts to turn themselves into the next Shanghai. None of these losses have resulted in bankruptcy; instead the cash flow deficits have been covered by the Chinese banks. As a result, these banks have an enormous volume of bad loans $911 billion at May 2006, according to a later-withdrawn estimate by Ernst & Young, which must surely have ballooned to $1.2 trillion to $1.3 trillion now.

That explains why China Investment is somewhat unaggressive in its international investment strategy. China's $1.4 trillion of reserves will in fact almost all be required to prop up the banking system when the inevitable liquidity crisis occurs. If the banks are to survive, China Investment will have to be followed by six more sovereign wealth funds of equal size, each of which will have to abandon its attempts to take over Exxon or Google and pour its money down domestic ***-holes.

A $1 trillion problem in subprime mortgages has caused even the US money market to seize up and has required frequent applications of sal volatile by the Fed. Since China's economy is around one fifth the size that of of the United States, the Chinese banking system's bad debt problem is in real terms about five times that of the United States, or about 40% of its gross domestic product.

We have seen this movie before; the Japanese banking system's bad debts after 1990 totaled around $1 trillion, about 30% of Japan's GDP. The result was the bursting of the 1980's bubble and a period of little or no economic growth that lasted well over a decade. Admittedly the Japanese authorities made matters worse by refusing to face up to their bad debt problem and issuing more government bonds to fund witless Keynesian public spending schemes.

Nevertheless, we can have very little confidence that the Chinese authorities, once the same problem stares them in the face, will do any better. After all, at least one of the alternative policy mixes, that tried by Herbert Hoover and the Federal Reserve in 1930-32, proved very much worse. Per capita US gross domestic product was no higher in 1940 than it had been in 1929, as in the Japanese case, but in the interval it had declined by a horrifying 28% and had recovered very slowly. If China faces the choice between a decade of stagnation, as in Japan from 1990-2003, and a decade of economic collapse, as in the United States from 1929-1940, it will rightly prefer the Japanese alternative.

It may not however have the choice. One of the factors that kept Japan out of real trouble in the 1990s was continued strong growth in the US and world economies; thus its magnificent export industries were able to continue growing, albeit at a slow rate, and provide a certain amount of traction for the economy as a whole. However, China will find it difficult to do the same, since the next decade does not seem likely to be a period of robust world growth. Far from it. The United States seems fated to endure at least a few years of very sluggish growth due to its housing market crash, and Britain appears to be in a similar mess, so even relatively robust growth in the resurgent economies of Germany and Japan may not be sufficient to keep Chinese exports growing.

At that point, China will have two alternatives. It can allow the banks to work their way out of their bad loans, condemning the domestic economy to probably a decade of little growth and extremely tight credit (high Chinese savings would alleviate this problem, but they will be trapped in the Chinese banks because the authorities foolishly do not allow Chinese citizens to invest abroad). Alternatively, it can inject more or less its entire foreign exchange reserves into the domestic banking system in order to recover its bad debts, which would allow the Chinese economy to continue expanding, but at a cost of devastatingly high inflation from the additional money pumped into the system (the $100 billion plus of Chinese bank initial public offerings carried out in 2006-07, pumped into the domestic economy, already appears to be worsening Chinese inflation and China Investment&#8217;s $130 billion will doubtless further aggravate the problem.)

We have seen societies with low economic growth, very high inequality (as China has now) and persistently high inflation; they are collectively known as Latin America. Since China also has much of the corruption that bedevils Latin America and its government lacks any genuine understanding of the free market and is increasingly dominated by special interests, it may indeed be fated to follow a Latin American growth path for the next few decades, with a tiny entrenched elite enriching itself at the expense of the disfranchised masses. That would be the worst possible outcome for the Chinese people, but it is not by any means impossible.

Many observers of the current US financial market downturn comfort themselves with the thought that the world now has more than one growth engine, and that China, with four times the US population, can because of its very high growth pull the world economy along sufficiently even when the US stalls. However, if China is about to incur the inevitable backlash from its recent debt and equity bubbles, during which practices have flourished that have no place in a well-functioning free market, then we may be entering a world in which the two main growth engines of the last decade are both broken. Growth in such a world will be truly sluggish and inflation high, as the world struggles to cope with the effects of an excess of cheap money now grown toxic.

The problem with major recessions is that they tend to produce foolish political reactions. In the United States, it seems likely that a major recession if we have one will produce resurgent protectionism and an aversion to world trade, which to the voting public will appear to have been responsible for the loss of millions of good US jobs without any corresponding gains to the living standards of the majority. Japan, bless it, remained admirably politically stable during its sluggish decade, and eventually found a leader in Junichiro Koizumi who was able to lead it back into renewed growth.

In China, there can be no assurance whatever that a populace whose living standards have suddenly stopped improving will not turn to violent nationalism and/or counterproductive economics. Since the country is not a democracy and not likely to become one, the authorities are likely to react to hardship as did Vladimir Putin to the chaos of late 1990s Russia, imposing even more draconian repression and seeking a military adventure abroad to occupy the masses of disaffected youth and distract the public from its new poverty. That too would produce a future in the West far worse than would be cased by a mere domestic recession.

Bears who weary of observing the chaos in the US financial markets can cheer themselves up by looking at China. There will be more than one source of the oncoming world downturn!

Martin Hutchinson is the author of Great Conservatives


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## Logic note

Economics focus
A less fiery dragon?

Nov 29th 2007
From The Economist print edition
China may be a smaller economic giant than previously thought

AMERICANS who spend their time fretting about when their economy will be overtaken by China will have gleefully leapt upon new numbers suggesting that China's economy may in fact be 40&#37; smaller than current estimates. However, the new figures, if confirmed, would also mean that the world economy has been growing rather more slowly in recent years than officially reported by the IMF, which is less salutary for everyone.

It is not the Chinese government that has been exaggerating the size of its GDP, but international organisations, such as the World Bank and the IMF, which measure each nation's output in terms of purchasing-power parity (PPP). If China's GDP is converted into dollars using market exchange rates it amounted to $2.7 trillion last year, only one-fifth of America's $13.2 trillion, and the fourth-largest in the world. But a dollar buys a lot more in China than in America because prices of many non-traded goods and services tend to be much lower in poor economies. Converting a poor country's GDP into dollars at market exchange rates therefore understates the true size of its economy.

Instead many economists prefer to convert GDPs into dollars using PPPs, which take account of price differences between countries. The Economist's Big Mac index is a crude measure of PPP. Much more sophisticated estimates are produced by the International Comparison Programme, co-ordinated by the World Bank, which gathers prices for more than 800 goods and services in countries around the globe. On a PPP basis, the World Bank ranks China as the world's second-biggest economy, with a GDP of $10 trillion last year. At its recent pace of growth, China's GDP could overtake America's by 2010.

The World Bank's estimate for China is widely used by economists. Yet few realise that it is based on a lot of guesswork, as the bank's previous international price surveys have not included China. Instead, it extrapolated from a study of prices in America and China that dates all the way back to the 1980s. The bank's latest price-comparison study, due to be published in mid-December, does include China for the first time, and preliminary evidence indicates that its GDP has been overstated in the past. In a recent article in the Financial Times, Albert Keidel, an economist at the Carnegie Endowment for International Peace, noted that PPP figures published by the Asian Development Bank (ADB), as part of its input into the World Bank's International Comparison Programme, implied that China's GDP was 40% smaller than the number reported by the World Bank. Interestingly, the new figure is very close to what the Big Mac index has indicated all along.

Mr Keidel's claim is itself based on some guesswork. The ADB report does not actually reveal the yuan's revised PPP rate against the dollar, as it only compares prices with those in Hong Kong, not America. To derive dollar PPPs Mr Keidel has assumed that relative prices in Hong Kong and America have not changed since previous studies. If this holds, then China's implied GDP is indeed 40% smaller than before. The World Bank says that it is still discussing the final numbers. Note, however, that the ADB figures imply that India's GDP is also now 40% smaller, even though India has taken part in previous international pricing surveys (suggesting that Hong Kong's PPP may in fact have changed). It is thus possible that China's GDP may be trimmed by less than 40% when the World Bank publishes its final report.

Assume for a moment that Mr Keidel's figure of 40% is correct, then China's GDP in PPP terms is slashed from $10 trillion to $6 trillion. That would still leave it as the world's second-largest economy, but it would not overtake America for at least another ten years. India, on the other hand, would drop from third to fifth place in the world ranking.
Adjusting the global speedometer

China would probably be quite happy to see its GDP revised down, hoping that America might stop picking on a smaller, poorer economy. But revised PPPs would not only change international rankings, they would also affect the pace of global growth. To calculate world GDP growth, individual countries' growth rates are weighted by their share of world output. Using PPP weights, as the IMF does, the world economy has grown by an average of 5% over the past five years, its strongest pace since the early 1970s. This is largely because emerging economies have been growing by 7.5% a year (compared with only 2.3% in the G7 developed economies), and they account for around half of world GDP. But if China and India are 40% smaller than previously thought, world growth would be trimmed to 4.5%.

The difficulty of measuring PPP is one reason why some economists prefer to compare the sizes of economies using market exchange rates. After all, it is argued, countries trade with each other at market rates, so these provide the best basis for comparison. Measured this way, world growth over the past five years has been a still more modest 3.4%. Far from being the fastest pace for decades, that is slower than in the 1980s (see left-hand chart). So has the global boom been a mirage? A closer look at the numbers shows that this cannot be right. Measured at market exchange rates, emerging economies' share of global output last year was less than in 1980 (see right-hand chart), even though they have been growing more than twice as fast as the rich economies. The increase in their share of global energy consumption, from 43% in 1980 to 55% in 2006, also confirms that their weight in the world economy has surely risen.

The raw dollar numbers are distorted by big currency swings. For instance, the devaluations in East Asian economies in 1997-98 grossly exaggerated the drop in their output. Measured at PPP, emerging economies' share of world output has more realistically risen since 1980&#8212;and even if China's economy is smaller than thought, it is still a mighty beast. PPP data may be imperfect, but they give a better picture of the relative size of economies than market exchange rates do. In the words of John Maynard Keynes, &#8220;It is better to be roughly right than precisely wrong.&#8221;


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## bd_wonder

wow the articles on this page are all anti china, gloom and doom predcitions of chinese economy, doctored figures and so on. why not something positive on china?


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## Neo

bd_wonder said:


> wow the articles on this page are all anti china, gloom and doom predcitions of chinese economy, doctored figures and so on. why not something positive on china?



Posted by an Indian member.


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## Neo

*China to further promote opening up*​(Xinhua)
Updated: 2007-12-06 14:56

China is to further promote the establishment of free trade zones with other countries and enhance bilateral and multilateral economic cooperation next year, according to the central economic work conference which closed in Beijing on Wednesday.

The three-day conference said China will turn a new page in its opening-up drive in 2008 by opening wider to the outside world, optimizing the structure of the opened sectors and improving the environment for foreign investors.

China will try to develop new advantages while joining the international economic cooperation and competition amid the course of globalization, the conference said.

It urged related departments to step up the transformation of the ways of increasing foreign trade, improve the structure of exported goods, stick to the win-by-quality principle and enhance their capacity to cope with fluctuations in international markets.

It also advocated to create new ways of utilizing foreign investment and make better use of the money.

"The domestic work and the opening-up drive shall be planned in a coordinated way so that the country's economy can stand various challenges through various channels," the conference said

China to further promote opening up


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## Neo

*High-speed railway construction to begin next month​*By Hao Zhou (chinadaily.com.cn)
Updated: 2007-12-07 14:33

The preparatory panel for the Beijing-Shanghai high-speed railway announced yesterday it had begun inviting public bids for construction, project supervision, and technical consultancy for the project, according to the Beijing Times.

The group will call an end to the bidding on December 17. While bidding for technical consultancy will be open to anyone in the globe, the other two areas are open to domestic companies only. 

An expert panel will then be set up to grant final licenses as soon as the bidding is over. The whole project is scheduled to begin in the middle of January next year.

The Ministry of Railways will finance 78.9 percent of a total 220 billion yuan (US$29.7 billion) construction funds, significantly surpassing the previously reported 51 percent.

The local governments along the railway, including Beijing, Shanghai, and Tianjiin municipalities as well as Hebei, Shandong, Anhui and Jiangsu provinces will invest another 20 billion yuan in cash.

The remaining funds will come from domestic investors such as banks and insurance companies. It will take as long as five years to complete the project.

Chinas State Council approved the feasibility report on the planned 1,318 kilometer express railway linking Shanghai and Beijing, after nearly 10 years of preparations.

The project, if completed, will be the longest high-speed rail line in the world, and hopefully the most profitable railway in China as well.

Passenger traveling time between Beijing and Shanghai by train will be cut by around 10 hours to a mere five hours.

The country has started construction on 16 new express passenger rail projects and is expected to have 12,000 kilometers of express rail lines by 2020, the Ministry of Railways said.

High-speed railway construction to begin next month


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## Neo

*Airport notches up 50m passengers​*By Xin Dingding (China Daily)
Updated: 2007-12-06 10:00

The Beijing Capital International Airport announced its annual passenger throughput hit a record of 50 million yesterday and would reach 53.31 million by year-end, enabling it to possibly become the world's eighth largest airport by passenger volume.







Crowded Beijing Capital International Airport on February 24, 2007. The airport announced its annual passenger throughput hit a record of 50 million yesterday and would reach 53.31 million by year-end, enabling it to possibly become the world's eighth largest airport by passenger volume. [Xinhua] 

Li Bianzhuo, a Beijinger in his 30s working in Guangzhou, was the lucky 50-millionth passenger. He arrived yesterday morning aboard a China Southern flight from Guangzhou on a home visit.

Li was invited to act as a supervisor of the airport's services.

Last year, the airport was ninth among the top 10 world airports by passenger traffic, with a passenger transport volume of 48.65 million, according to Geneva-based Airports Council International (ACI) statistics.

"The 50-million mark is a critical point. In the days after it is reached, airport growth would be even faster than before," Professor Li Xiaojin, with the Civil Aviation University of China in Tianjin, told China Daily yesterday.

Airport notches up 50m passengers


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## Neo

*GM reveals $5b China vision*​By Irene Shen (China Daily)
Updated: 2007-12-07 09:45

General Motors Corp, the world's largest automaker, plans to invest as much as $5 billion in China over the next five years to expand its share of the world's fastest-growing major car market.

The Detroit-based company will spend about $1 billion a year on car and engine development, production facilities, technical and after-sales support and infrastructure, Kevin Wale, president of GM's China unit, said in an interview in Shanghai.

GM will sell more than 1 million Cadillacs, Buicks, and other models in China in 2008, a more than 150-fold increase in sales over a decade. Toyota Motor Corp and Volkswagen AG both plan to add production capacity in the country to raise their own sales.

"Even with this $1 billion a year, it'll still be tough to remain No 1 in China," Ashvin Chotai, a London-based analyst for Global Insight Inc, said. "With China becoming the most important strategic market in the world, it's crucial to have their investment to stay in the race."

China's annual economic growth has averaged 9.6 percent over the past five years, making cars affordable to more people. The country's total demand will rise to 9.5 million and 10 million vehicles next year, Wale said. That compares with sales of between 8 million and 8.5 million vehicles for 2007, according to the China Association of Automobile Manufacturers. The passenger car market will grow 70 percent to 9.2 million vehicles by 2012, according to Chotai.

"No one has seen growth like this anywhere in the world," Wale said.

"We target to grow a little faster than the market."

Toyota, the world's biggest carmaker by market value, expects to sell more than 450,000 vehicles this year. The Toyota City, Japan-based company began building a second plant in Guangzhou in June to make Camry sedans and Yaris compacts. Volkswagen, which has lost market share to GM, plans to sell about 900,000 vehicles and will expand production by 2010.

GM relies on Asia and Latin America for profit in contrast to its home market, where it is closing factories and cutting jobs. Globally, GM plans to build about 9.3 million vehicles in 2007.

In the first nine months of this year, GM posted net income of $481 million in Asia-Pacific and $754 million in Latin America. In Europe, the company had a loss of $2.6 billion and in North America, it posted a loss of $34.7 billion, mostly because it wrote down the value of future tax benefits.

GM is cutting first-quarter North American production 11 percent after its US sales dropped by the same rate in November. Growth in China, Brazil and Russia kept the company's sales higher than Toyota's in the first nine months of the year. US sales may fall to 30 percent of the company's total within 10 years, Vice-Chairman Bob Lutz said in October.

GM reveals $5b China vision


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## Neo

*Ford mulls new China car plant​*By Gong Zhengzheng (China Daily)
Updated: 2007-12-04 09:23

Ford Motor Co, which is closing factories in North America, is mulling a new car plant in China with its Japanese unit Mazda Motor Co and local partner Chang'an Motor Corp, to meet growing demand.

Kenneth Hsu, spokesman for Ford's China operations, told China Daily: "We are gauging the need for further expansion of our manufacturing capacity. We are considering all kinds of options." 
The US carmaker plans to reach a final decision by early next year, Hsu said, declining to give details.

"Local governments are keen to have a new plant from Ford in their regions," he said.

Chang'an Ford Mazda Automobile Co, a tripartite joint venture, now has two factories in the western municipality of Chongqing and Nanjing in the east with a combined production capacity of 410,000 cars a year.

Jeffrey Shen, president of the venture, said it will move 225,000 cars this year, mainly boosted by the hot-selling Focus compact model, up from roughly 160,000 units in 2006.

The venture's 2008 sales are expected to reach 300,000 units, Shen said.

The tie-up, whose current line-up also includes the Ford Mondeo and S-Max, Mazda3 and Volvo S40, plans to produce a subcompact based on the Verve concept before the end of next year, Shen said. The Verve made its Asian premiere at a recent auto show in Guangzhou.

The venture will also launch the Mazda2 subcompact in 2008.

"Our profitability is fairly good," Shen said, without elaborating.

Chang'an holds a 50 percent stake in the venture, Ford 35 percent and Mazda 15 percent. Mazda is one-third owned by the Detroit-based group.

Shen predicted that total vehicle sales in China, the world's second-biggest auto market after the US, will hit 9 million units this year and 10 million units in 2008, propelled by the country's booming economy. Last year, sales amounted to 7.22 million units.

Other foreign carmakers, such as Toyota, Volkswagen, PSA Peugeot Citroen and BMW, are also planning to build more production capacity in China.

Ford also owns a 30 percent stake in another Chinese automaker Jiangling Motors Co Ltd, which makes Transit commercial vehicles in the eastern city of Nanchang.

The struggling US carmaker said two years ago it planned to shut down at least 10 plants in North America by 2010 as part of its turnaround plan.

Ford mulls new China car plant


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## Neo

*Komatsu mulls three new plants in China​*(Agencies)
Updated: 2007-11-29 11:46

Komatsu Ltd, the world's second-largest maker of earth-moving equipment, said on Thursday it may build three new plants in China to respond to robust demand for excavators and other construction and mining machinery there.

"We expect continued growth in infrastructure and construction demand in China, and sooner or later our production capacity will hit the limit," said a company spokesman.

The firm is considering building two construction machinery plants and one casting parts factory and has begun talks on buying land for one of the plants, he said.

Japanese business daily Nikkan Kogyo said Komatsu would invest at least five billion yen (US$45.4 million) for construction work on the plants by the financial year starting in April 2009.

It aims to lift its annual production capacity for hydraulic excavators in China to at least 16,000 units by the 2010/11 business year, up 33 percent from that planned for the current year, the paper said.

China's rapid urbanisation and big infrastructure projects have meant soaring demand for construction machinery, and its hunger for minerals has spurred a massive upturn for the global mining industry.

In China, mainly an excavator market, Komatsu has 18 percent of the crawler excavator segment, ahead of Hitachi Construction Machinery Co Ltd, Doosan Infracore Co Ltd and Hyundai Heavy Industries Co Ltd, according to private research firm Off-Highway Research. Industry leader Caterpillar Inc ranks fifth with 10 percent.

Komatsu mulls three new plants in China


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## Neo

*China to have 12,000 km of express rail lines by 2020​*(Xinhua)
Updated: 2007-11-18 19:58

China has started construction on 16 new express passenger rail projects and is expected to have 12,000 kilometers of express rail lines by 2020, the Ministry of Railways said Sunday.

New express rail lines will link up provincial capitals and large and medium-sized cities, as well as cities in the booming Bohai Sea, Yangtze and Pearl River regions.

The construction of such lines is aimed to substantially enhance the country's rail transport capacities, as stated in the country's mid- and long-term plan on railway networks. 
The 115 km express rail line connecting Beijing and Tianjin would become the country's first that allows a maximum speed of 300 kilometers per hour. Track laying on the route started just days ago.

The line will be ready for operation in time for the 2008 Olympic Games in August, and will shorten the journey between Tianjin and Beijing from 70 minutes at present to around 30 minutes, according to Liu Rong, director of the railway construction project.

China's State Council has also approved the feasibility report on the planned 1,318 km high-speed railway linking Shanghai and Beijing after nearly 10 years of preparations. The project, if completed, will be the longest high-speed rail line in the world.

The Beijing-Shanghai express railway is expected to cut travel time between the two cities from around 10 hours at present to about five hours.

China's fastest domestic trains currently run at a speed of up to 250 kilometers per hour.

China to have 12,000 km of express rail lines by 2020


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## Neo

*China's service trade to hit $400b in 2010​*(Xinhua)
Updated: 2007-12-06 23:11

China's service trade is expected to reach US$400 billion in 2010, an official with the Ministry of Commerce said Thursday.

Hu Jingyan, head of the ministry's Service Trade Department, said the figure is 155 percent higher than the US$157.1 billion in 2005 and represents an average annual growth of more than 20 percent between 2006 and 2010. 
China's service trade volume in 2006 stood at US$191.75 billion, 22 percent higher than the 2005 level, Hu noted.

He said the nation will take a gradual approach to the opening of the services sectors and unveil more measures to boost the proportion of service exports in its total exports as well as in the world's total service exports.

The service exports in 2005 accounted for 8.9 percent of the nation's total exports and 3.1 percent of the world's total service exports, according to Hu.

Exports value of the labor-intensive sectors like transport and tourism are expected to fall to 60 percent of the nation's total service exports in 2010, he added.

Meanwhile, proportion of exports from capital-intensive sectors including telecommunications, insurance, finance, advertising, and counselling are expected to widen.

China's service trade to hit $400b in 2010


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## gpit

bd_wonder said:


> wow the articles on this page are all anti china, gloom and doom predcitions of chinese economy, doctored figures and so on. why not something positive on china?





Neo said:


> Posted by an Indian member.



I think it's fine.

1) China has been deamonized by hostile countries/individuals/forces since she comes into existence, yet China moves forward steadily, though not without ups and downs.

2) It is always good to have a different opinion to serve as a alarm/reference. People know pretty much who are the "dragon slayers" and who are true friends wanting problems to be solved.

BTW, thanks Neo for your efforts in keeping up with the news.


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## gpit

malaymishra123 said:


> Grrr...Its THIS very market that we want to steal from China.



Reportedly Intel weighed among India, Dalian, China and some other cities for the plant.

Craig Barrett, Intel&#8217;s chairman, said: &#8220;The (Indian) government has been a bit slow in coming out with a semiconductor policy and missed the window on Intel's manufacturing facility for now. It did not have a well documented plan. The Indian programme for semiconductor manufacturing was not as timely and we had already made prior commitments elsewhere.&#8221; 

Intel pulls out of Indian investment - Times Online

But, "Reacting to Intel Corp. Chairman Craig Barrett's statement that policy delays forced the chipmaker to look for a foundry site elsewhere, the India government countered that Intel was never serious about chip manufacturing in India. "

India govt. counters Intel on chip policy delay


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## Neo

* Iran, China finalise $2bn oil contract ​* 
Tuesday, December 11, 2007

TEHRAN: Iran and Chinas Sinopec on Sunday signed a two billion dollar contract to develop a major Iranian oil field, a crucial deal for the Iranian energy industry at a time of mounting international pressure. 

The Iranian oil ministry and Sinopec inked the deal to pump oil from the Yadavaran onshore field in southwestern Iran, which was first agreed back in late 2004, at a ceremony in Tehran, an AFP correspondent reported.

The initial estimation of cost of the project is about 2.0 billion dollars and the final cost of the project will be decided after the offering of the tenders, said Iranian Oil Minister Gholam Hossein Nozari.

The field will be producing 185,000 barrels of oil a day within the next seven years, he added. The signing came at a time when the United States has been pressuring European and Asian firms, including oil majors, to cut their business ties with Iran to exert pressure on the Islamic republic in the nuclear crisis.

The signing shows that there is no lack of investment in Iran and we are solidifying our economic relations with China more, said Nozari. The second message is that if other countries are willing to invest in the big oil and gas fields of Iran they should not lose the opportunity, he added, in an apparent warning to any dithering Western firms.

The deal is one of the biggest foreign energy contracts ever signed by Iran, which holds the worlds second-largest oil and gas reserves and is seeking development of its oil fields. The contract was signed in Tehran by Zhou Baixiu, the head of Sinopecs international arm, and Iranian Deputy Oil Minister for international affairs Hossein Noghrehkar Shirazi.

The talks to finalise the contract had been long held up by disagreements on the terms of the Yadavaran deal, most notably involving the rate of return proposed by Sinopec. Sinopec had originally asked for a 15 per cent rate of return from its investment but Nozari said this had been finalised at 14.98 per cent.

However he added that the period of reimbursement for Sinopec had been decreased from eight years in the initial agreement to four in the final contract. The development will be carried out in two phases, added Nozari.

The first phase to produce 85,000 barrels per day will be carried out in four years and the second phase to produce another 100,000 bpd will be carried out in another 36 months. So in total, the field will produce 185,000 barrels a day.

The National Iranian Oil Companys (NIOC) director for exploration Mahmoud Mohades had earlier put the Yadavaran fields reserves at 18.3 billion barrels, estimating recoverable oil at 3.2 billion barrels.

The 2004 initial agreement also envisaged Chinas purchase of an annual 10 million tons of Iranian liquefied natural gas (LNG) for 25 years, beginning in 2009. But Zhou indicated that this was not in the final contract and would be discussed at a later date. 

China is willing to buy LNG from Iran and we hope to talk about the LNG project later. Sinopec is the sole main partner and investor in the field, although it will be employing sub-contractors, more than half of whom must be Iranian. Iran and China have significant economic ties and Beijing is the second largest importer of Iranian goods after Japan. 

Iran, China finalise $2bn oil contract


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## Neo

*Everything on rise in China​*
Consumer Price Index

BEIJING: Chinas annual consumer price inflation hit an 11-year high in November, with new signs that price pressures are spreading from food to the broader economy, raising the prospect of more aggressive monetary tightening. 

The rise in the consumer price index of 6.9 percent from a year earlier  above the 6.4 percent forecast by economists and up from 6.5 percent in October  underscored why the government sees the fight against inflation as a priority in the year ahead. 

The countrys gaping trade surplus is another concern, and separate data released on Tuesday showed that measures to curb exports and promote imports had narrowed it slightly in November. 

However, while the $26.3 billion surplus was below Octobers record $27.1 billion, it was still the third highest ever. 

Critics say the surplus is pushed up by an unfairly undervalued currency, a topic that will loom large at high-level Sino-American talks this week in Beijing. The yuan hit 7.3770 per dollar on Tuesday, the highest since its 2005 revaluation. 

For now, economists are paying closer attention to inflation, which has been driven up largely by food costs. 

In November, food cost 18.2 percent more than a year earlier, but the statistics showed wider price pressures. Annual non-food inflation accelerated to 1.4 percent in November, the sharpest rise this year. reuters

Trade surplus hits $26.3bn

BEIJING: Chinas trade surplus hit $26.3 billion in November, an increase of 14.7 percent from the same month a year ago and the third largest on record, official data showed Tuesday.

Chinas exports were up 22.8 percent in November from a year earlier to $117.6 billion, the customs bureau said in a statement.

The figures were released as Chinese and US top envoys kicked off three days of economic talks, likely to centre on Chinas huge trade surplus.

Critics in the United States charge that China is keeping its currency, the yuan, artificially weak, giving Chinese firms an unfair advantage when they sell their products overseas.

China has seen a year of record-high trade surpluses, peaking in October, when the figure topped $27 billion.

For the first 11 months of the year, the trade surplus totalled $238.1 billion, a rise of 52.2 percent from a year earlier, customs said.

This puts the full-year trade surplus well on track to beat last years $177.5 billion, then a record, by a wide margin.

Imports increased at a faster rate than exports in November, rising 25.3 percent from a year earlier to $91.3 billion.

It was the first time ever that imports exceeded $90 billion for a single month, according to the customs authorities.

In our view, strong imports growth reflected robust domestic demand momentum, said investment bank Goldman Sachs in a research note.

However, the increasing intensity of the policy tightening is likely to put pressure on domestic demand growth going forward, and therefore the current strength of imports growth is unlikely to be sustained.

Chinas economy is expected to expand 11.5 percent in 2007, fuelled mainly by investment spending, making it the fifth consecutive year of double-digit growth, according to previous reports in the state media. afp

Daily Times - Leading News Resource of Pakistan


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## Neo

*US says China recognises need for stronger yuan*​(Reuters)

13 December 2007 

XIANGHE, China - US Treasury Secretary Henry Paulson came away from two days of talks on Thursday convinced that China sees the need for a stronger yuan and with a promise that Beijing will open its financial markets a bit wider.

The grand-sounding strategic economic dialogue produced only modest immediate gains but Paulson said it provided a foundation on which to expand cooperation between two nations whose ties he deems vital to global economic prosperity.

The exchange rate was a major focus of the meetings because, as Paulson put it, the pace of the yuans rise had effectively become a proxy for Chinas willingness to permit market forces to play a greater role in its economic development.

Paulson sought no specific commitments from Beijing on the yuan, but he said Chinese policy makers now knew that a stronger exchange rate would help them to fight inflation.

The Chinese recognise growing inflationary pressures in their economy and that a more flexible currency expands their ability to use monetary policy to stabilize their economy, Paulson said at a closing news conference.

Chinas central bank, which keeps the currency on a tight leash, let the yuan rise on Thursday to its highest level since it was revalued and depegged from the dollar in July 2005. The bank is battling inflation of 6.9 percent, an 11-year high.

The yuan has climbed about 6 percent against the dollar in the past year, but some US lawmakers say it remains grossly undervalued and are preparing legislation to force Chinas hand.

Yuans rise

Paulson declined to say how much more quickly Beijing needed to let the currency climb. The pace of appreciation has increased over the past year, he said. Ive talked to the Chinese enough that weve agreed we dont talk about how fast is fast. We agree with the principle (of appreciation).

The US Treasury chief later held separate meetings with Chinese President Hu Jintao and with Premier Wen Jiabao, using the occasion to claim that the twice-a-year dialogue was making it easier to resolve prickly issues.

We are building a bond of trust between us and there is a comfort to our communications that makes it easier to deal with some of the most sensitive and complex and difficult issues, Paulson said as he began a meeting with Hu at the Great Hall of the People.

Wen congratulated Paulson and Chinese Vice Premier Wu Yi, who led the Chinese delegation, saying they had helped reach common understanding on an issue of much importance to both countries, product safety during the talks.

A highlight of the talks was announcement of an agreement to increase safety standards for Chinese food and product exports to US markets. This is a highly sensitive topic after millions of Chinese-made toys were recalled and American indignity over tainted food and pharmaceuticals from China ran high.

Paulson cited other progress on specific fronts, including a Chinese commitment to let banks and other foreign companies that do business in China issue yuan-denominated debt and equity securities.

Modest progress

I would also note we have made modest progress in the financial services area, expanding opportunities for global financial services companies to do business in China, he said.

Paulson said Beijing would end a two-year freeze on foreign securities joint ventures in China, an especially sensitive issue for the influential US financial services industry, and expressed confidence that the permitted business scope of such ventures would be expanded.

We want them to do more and to move faster, he said.

Opening Chinas financial markets to foreign competition strengthens the financial backbone of the Chinese economy, and is critical to Chinas goals of spreading the benefits of growth to all the Chinese people, Paulson said.

But it was evident that US negotiators did not get all they sought.

US Trade Representative Susan Schwab, answering reporters questions, said one troubling issue related to Chinas Xinhua News Agency which she said operated as both the regulator as well as the competitor in its line of business.

She said the Xinhua issue was one of a series of financial issues raised with various ministries but not resolved.

Throughout the talks, Chinese officials made sure their views were heard and sometimes pushed back against US calls for China to speed up economic reforms.

Beijing declined to lift foreign-ownership caps in Chinese banks and brokerages and left US officials fuming over an apparent ban on US-made movies, which Schwab called a very serious matter.

Commerce Secretary Carlos Gutierrez said the United States was still trying to get clarification from China about the film ban and to have it lifted. We are all over it, he said.

Chinese officials went into less detail about the meeting.

Wu said the two sides had achieved satisfactory results and had gone beyond burning trade and economic issues of the day.

The next instalment of the dialogue would take place in Washington in June, she said.

Khaleej Times Online - US says China recognises need for stronger yuan


----------



## gpit

Reportedly Paulson was given some made-in-China toys as (Christmas?) gift.


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## Neo

gpit said:


> Reportedly Paulson was given some made-in-China toys as (Christmas?) gift.



Lol...


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## Neo

*China refiner to triple Iran crude imports ​* 
Friday, December 14, 2007

BEIJING: Chinas top refiner Sinopec Corp will nearly triple its imports of Iranian crude next year, increasing Beijings reliance on the OPEC producer that faces Western political pressure over its nuclear programme.

Its state-owned parent Sinopec Group has agreed to buy 160,000 barrels per day (bpd) from Iran next year, up from this years 60,000 bpd, two sources familiar with the supply negotiations told Reuters on Thursday.

Including a separate pact, agreed earlier between Chinas state-run Zhuhai Zhenrong Corp and National Iranian Oil Company, China has contracted to buy 400,000 bpd of Iranian crude for next year, roughly 6 per cent of Chinas total crude demand.

The supply deal comes days after the state-run Chinese oil giant finalised a $2 billion pact to develop Irans huge Yadavaran oilfield, after nearly three years of negotiations, part of Beijings plan to help ensure a stable, secure supply of oil for the worlds second-largest consumer.

Analysts saw the deal as a further sign of a long-term strategic relationship between China and Iran. Beijing is scrambling to fuel the worlds fastest growing major economy and Tehran is relying on oil revenue to establish itself as a dominant Middle Eastern power.

There is a growing rivalry among the big powers for access to major sources of crude oil. For so long America had a monopoly on much of the crude oil exports from the Persian Gulf region and it is now facing increasing rivalry, said Mehdi Varzi of London-based consultancy Varzi Energy.

The 400,000 bpd supply for 2008 would be a third above that set under this years term deals at just under 300,000 bpd, although Chinas total imports from the worlds fourth-largest producer are far higher since it has been buying extra supplies on a spot basis.

An NIOC source familiar with the negotiations for the new term contract told Reuters by telephone that the deal was linked to the Yadavaran investment. This is a service type contract, they are taking more of our crude because they have invested heavily in our Yadavaran field, it is like payment for the investment, the source said.

China has shown no reluctance to deepen ties with countries where Western companies fear to tread, such as Sudan and Myanmar. Its pragmatic state oil firms have long brushed aside the threat of more United Nations sanctions on Irans disputed atomic activities, focusing instead on commercial terms.

China may extend spot purchases from Iran, now Beijings third-largest crude supplier after Saudi Arabia and Angola, for next year, to meet strong fresh demand from the countrys new refining facilities, a Beijing-based trading source said.

Beijing has been reluctant to back a US-led drive for further sanctions against Iran, seeing it as a key oil supplier as Chinas crude imports soar to meet half of its demand. In a push to boost the use of natural gas to curb dependence on oil that now costs nearly $100 a barrel, China is also interested in Irans rich gas reserves, the worlds second-largest after Russia. Apart from the two crude pacts, China buys fuel oil, a heavy refinery product, from Iran under a one-year contract of around one million tonnes.

China refiner to triple Iran crude imports


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## Neo

*Chinas industrial output up 17.3pc in Nov ​* 
Friday, December 14, 2007

BEIJING: Chinas industrial output, a key measure of economic growth, expanded by 17.3 per cent in November from the same month a year ago, the National Bureau of Statistics said ON Thursday.

This marked a slowdown from growth of 17.9 per cent in October and 18.9 per cent in September, according to previously published statistics. In the first 11 months of the year industrial output was up 18.5 per cent from the same period in 2006, the bureau said.

Output continued to be driven by industrial exports, which increased by 19.5 per cent during November from the same month a year ago, the bureau said. Chinas trade surplus hit 26.3 billion dollars in November, an increase of 14.7 per cent from the same period in 2006 and the third-largest on record, the government announced earlier this week.

The slight slowdown in industrial growth appeared to reflect the governments efforts to cool a booming economy which grew by a blistering 11.5 per cent in the first nine months of the year. However the output of some major industrial sectors continued to boom in November, with production of non-ferrous metals up by 23.5 per cent and machinery by 24.4pc, the bureau said. 

Chinas industrial output up 17.3pc in Nov


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## bd_wonder

my goodness the sort of growth china has been witnessing is perhaps unparalleled in world history. perhaps.
i hope bd enjoyed similar growths for sustained periods. same with muslim world
.


----------



## Neo

*China in new Great Game over Central Asian riches *​ 
Sunday, December 16, 2007

KHORGOS, Kazakhstan: The driver of the 18-wheel tractor-trailer from China idling at the Kazakhstan-China border said apples were the cargo he brought to Almaty, Kazakhstans booming commercial centre. For Kazakhs, theres a tart irony in the shipment.

Almatys region is where the first apple trees were found and the first apple orchards planted. The city was a centre of the Soviet Unions s fruit industry. Its very name means Father of Apples.

In the past few years, Chinese fruit, vegetables, TV sets, T-shirts and tires have flooded markets along the old Silk Road in former Soviet Central Asia. Each day, all along the Chinese border, hundreds of tractor-trailers rattle west.

These goods are the most visible sign of Beijings growing power here as China, Russia, the United States and others compete for financial and strategic advantage on the borders of some of the worlds most turbulent countries, Iran, Afghanistan and Pakistan. Its a struggle in which China seems to be gaining the upper hand.

At stake are oil, hydropower sources, strategic metals, pipelines, transit routes and access to markets. The chief prize is energy supplies: China needs them, Russia wants to control their distribution, and Western powers want to ensure they are not monopolized by Moscow or Beijing.

China today is reaching deep into Central Asia to tap oil and gas reserves, using pipelines and investments to challenge Russias monopoly on gas shipments and to thwart Moscows hopes of controlling a bigger share of the regions oil.

In recent years, China and Russia have forged a strategic alliance, as part of a group called the Shanghai Cooperation Organization, to squeeze the United States out of Central Asia, after the US established military bases here. They have largely succeeded.

However, friction is developing between the two neighboring giants. And given Chinas 1.3 billion people and its economic strength, it seems certain that Russia, with its dwindling population and economy based narrowly on energy, will increasingly be on the defensive.

Nowhere, perhaps, is Chinas presence more starkly evident than at Khorgos, straddling the Kazakh-China border.

Central Asia, which includes Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan, was long regarded as the middle of nowhere, caught between Russia, China, Siberia and Afghanistans Hindu Kush mountains.

The region emerged from isolation about 200 years ago as Russian imperial troops and British spies competed for influence in a rivalry that Rudyard Kipling called The Great Game.î

In todays Great Game, Russia finds itself struggling to shore up its influence through arms sales and energy contracts, dominance of mobile phone and TV networks, and shared language and culture, as well as the Kremlins pledges of billions in fresh investment.

Above all, Moscow wants to preserve its monopoly on distributing Central Asian gas and its major role in other energy sectors. To this end, President Vladimir Putin proposed at an October regional summit in Tehran that all the Caspian Sea states have a veto on any new pipelines crossing the sea bed, apparently so Moscow can block plans to connect Kazakhstans and Turkmenistans rich oil and gas fields to the west, bypassing Russia.

But Moscows dominance of the regions energy reserves is eroding. Despite Russian pressure, both Kazakhstan and Turkmenistan have welcomed discussion of a trans-Caspian pipeline, and Putins proposal was met with silence.

Twice in the past two years, Turkmenistan has signed contracts to ship natural gas west through Russian pipelines, only to turn around a month later and, in effect, promise to ship the same gas east to China.

After the Soviet collapse, Russian goods vanished For China, with its appetite for raw materials and its awakening as a world power, Central Asia is the Wild West: a land of opportunity, a reservoir of resources and a corridor to the Middle Easts oil fields and Europes wealthy shopping districts.

China has been moving in quietly and steadily since the mid 1990s, when trucks loaded up on scrap iron, steel and copper at derelict Soviet factories and carted the metals back to China for recycling.

In the 1990s, China did relatively little trade with Kazakhstan, Central Asias economic motor, an oil-and gas-rich nation of 15.2 million larger than Western Europe. But by 2006, China ranked third behind Germany and Russia in Kazakhstans US$35.6 billion (euro24 billion) export market and second after Russia in the nations US$22 billion (euro15 billion) import market.

The tiny, mountainous nation of Kyrgyzstan imported almost nothing from its giant neighbor to the east. By 2006, 57 per cent of Kyrgyzstans imports came from China, and only 15 per cent from Russia.

In 2003, Beijing predicted a 30-to 50-fold increase in its trade with Central Asia within a decade.

Chinas growing clout makes many Central Asians anxious.

But China knows much of its future energy supply is here. The state-owned China National Petroleum Company bought PetroKazakhstan in 2005 for US$4.2 billion (euro2.9 billion), then Chinas biggest foreign acquisition. In July 2006, the CNPC and Kazakhstans Kazmunaigaz completed a US$700 million (euro477 million), 597-mile (962-kilometer) oil pipeline across Kazakhstan to Alashankou in northwest China.

The pipeline, designed to supply up to 15 per cent of Chinas oil needs, will serve the major new Chinese refinery in Karamay, to open in 2008. By some estimates, one-sixth of Kazakhstans oil production will someday be pumped to China.

Turkmenistan in August started building a 4,350-mile (7,000-kilometer) natural gas pipeline through Kazakhstan to northwest China. When completed in 2009, the pipeline is expected to provide China with 30 billion cubic meters (1.1 trillion cubic feet) of natural gas a year. Cheap Chinese goods have turned many poor Central Asians into consumers. But some experts say dependence on Chinese products slows the growth of local industries.

Tajikistan, with a per capita annual gross domestic product of just US$1,300 (euro886), desperately needs investment. Saifullo Safarov, deputy director of the Center for Strategic Research in Tajikistan, said without Chinese money, his country cant exploit its mineral wealth.

In July, the Chinese Zijin Mining Group bought 75 per cent of Tajikistans Zerafshan Gold Company, once controlled by a British company, and in late September it claimed to have increased the mines production by 50 percent. Despite Chinas economic onslaught, Russia retains enormous influence.

China in new Great Game over Central Asian riches


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## Neo

*China rolls out first self-designed hybrid car ​* 
Sunday, December 16, 2007

SHANGHAI: Chinas state-owned Changan Automobile group has started making its own hybrid cars, the first such move by a Chinese automaker, the Xinhua news agency reported.

Mass production of the Chinese-designed car, which consumes 20 per cent less fuel than ordinary cars of the same size, was launched after six years of research and development, Xinhua said late on Friday.

This shows Chinese automakers have grasped the core technology of making hybrid cars, the report said.

The Changan group controls listed Changan Automobile Co, a Chinese partner of Ford Motor Co and Mazda Motor Corp. The listed arm, based in the south western city of Chongqing, is also Chinas largest mini-van maker.

Fuel economy figures little in consumers purchasing decisions in China. Hybrid cars are also expensive since the government offers buyers no incentives to purchase them.

Toyota Motor Corp was the first carmaker to build hybrid cars in China. General Motors Corp said last month it would begin producing a hybrid car in China from next year, in time for the Beijing Olympics in August.

Japans Nikkei said the hybrid vehicle made by Changan is based on a 2-liter compact wagon that will be able to travel 100 kilometres (62 miles) on 6.8 litres of gasoline, and it will be officially released next year.

The new hybrid is close in size to Toyotas Prius hybrid, which the Japanese automaker has assembled and sold in China since late 2005, the Nikkei said. Chinese sales of the Toyota hybrid were down 86 per cent in the first 10 months of 2007 from the same period a year earlier to 299 units, as the vehicles 300,000 yuan ($40,700) price tag dampened its popularity, it said.

Changans new offering will cost around 150,000 yuan, roughly 20,000 yuan more than the base vehicle but just half as much as the Prius, the Nikkei said.

Chinese sales of the Toyota hybrid were down 86 per cent in the first 10 months of 2007 as the vehicles 300,000 yuan ($40,700) price tag dampened its popularity, it said.

China rolls out first self-designed hybrid car


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## Neo

*China second largest economy: WB*​
WASHINGTON, Dec 17: The size of Chinas economy is overestimated by some 40 per cent, but it remains the worlds second largest using a ranking based on purchasing power, the World Bank said on Monday.

In a report ranking the worlds economies for 2005, the World Bank said its updated survey using purchasing power parity shows a much smaller value for China than earlier estimates which the Bank called less reliable.

The study carried out by the World Bank and other partners was the most extensive and thorough effort to measure the relative size of 146 economies using the PPP method which strips out the effect of exchange rates, a WB statement said.

China participated in the survey for the first time and India for the first time since 1985.

While the economies of China and other developing countries appear larger using the PPP method compared to using market rates, the new estimates include more reliable data on goods and services in China.

The PPP method is still somewhat controversial among economists compared with the traditional market exchange rate methods.

Using market methods, Japan would be the second largest economy and China would rank behind Germany, roughly equivalent to the economies of Britain and France, according to the World Bank report.

The World Bank had in the past extrapolated figures on China and India using the purchasing power method, but the latest report is based on more extensive data.AFP

China second largest economy: WB -DAWN - Business; December 18, 2007


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## Sena Lee

BEIJING -- China Investment Corp (CIC), the nation's state-owned forex investment firm, said late Wednesday that it has agreed to invest $5 billion in the No. 2 US investment bank Morgan Stanley.

The Chinese firm, which invested 3 billion US dollars earlier this year in the US private equity firm Blackstone Group, will purchase equity units that are mandatorily convertible into 9.9 percent of Morgan Stanley common shares.

The equity units carry a fixed annual interest rate of nine percent before conversion on August 17, 2010.

The purchase is "a long term, passive financial investment" and does not lead to a role in management of Morgan Stanley, said a statement from CIC.

"It is a good opportunity to invest in US-based financial institutions, many of which are being undervalued when the subprime mortgage crisis has had an impact on them," Li Yang, director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, said.

Also on Wednesday, Morgan Stanley reported a larger-than-expected loss in the fourth fiscal quarter due to a $9.4-billion writedown from its exposure to subprime and other mortgage-related investments.

It lost $3.61 billion in the fourth quarter, compared to a profit of $2.27 billion in the same period a year earlier.

"CIC believes that Morgan Stanley has potential for long-term growth, particularly in its investment banking, asset management and wealth management businesses, as well as new business development opportunities in emerging markets," said the statement.

The purchase is made in accordance with CIC's global investment strategy, which is to seek attractive long-term returns with acceptable risks, it said.

CIC will maintain a cautious investment strategy, Finance Minister Xie Xuren said last week at the China-US high-level economic talks. "It will pursue long-term investment instead of short-term speculation, and will achieve a balance between security and profitability."

China Investment Corp was set up in September this year, with an initial capital of $200 billion from the country's massive foreign exchange reserves.

One-third of the capital would be used to purchase Huijin Investment Co, an investment arm of the Chinese government, and another third would be injected into state-owned banks for shareholding reforms, CIC chairman Lou Jiwei said.

The remaining $70 billion was earmarked for overseas investment in a wide range of portfolios but would not seek control, he said.

Earlier this month, CIC made its second investment this year of about $100 million in the initial public offering of the China Railway Group in Hong Kong.

China's forex investment firm to invest $5b in MS


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## Sena Lee

US: China not manipulating currency

WASHINGTON -- China is not manipulating its currency to gain unfair trade advantage, the US Treasury Department said Wednesday in a semiannual report to Congress. 

"Treasury concluded that neither China nor any other major trading partner of the US met the requirements for designation" as a manipulator of their currency, the report said. 

However, the report said the Chinese yuan remains severely undervalued against the US dollar, claiming the recent movement of the yuan had been "too limited and modest."

The Treasury issues the report twice a year according to a 1988 law, which requires the department to analyze trading partners' foreign exchange policies and determine whether currency manipulation to gain unfair trade advantage is occurring.

Under the law, economic sanctions can be imposed on countries found in violation.

The report acknowledged that the yuan, also known as the renminbi, appreciated against the dollar by 12.1 percent since a new currency regime was imposed in July 2005 that allowed it to trade in a wider range.

The Chinese currency rose by 2.5 percent in the first half of 2007 and another 3.2 percent in the second half through December 11. Against a broader range of currencies, the gain has been 3.8 percent since 2005.

US: China not manipulating currency


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## gpit

bd_wonder said:


> my goodness the sort of growth china has been witnessing is perhaps unparalleled in world history. perhaps.
> i hope bd enjoyed similar growths for sustained periods. same with muslim world
> .



As matter of fact, Japan was faster at a time.


----------



## Neo

*Chinas fiscal revenue grows rapidly​*
BEIJING, Dec 19: Chinas central and local governments recorded 4.82 trillion yuan ($ 651 billion) in fiscal revenue during the first 11 months of this year, up 33.5 per cent from the same period of last year. Revenue was 9.3 per cent higher than the annual budget, Finance Minister Xie Xuren said on Wednesday.

However, revenue and spending patterns diverged at the central and local levels. While central government revenue grew faster, local government spending expanded more rapidly.

The 11-month revenue total was 2.69 trillion yuan for the central government, up 37 per cent, and 2.13 trillion yuan for local governments, up 29.4 per cent, Xie added.

He attributed the higher revenue to rapid and stable growth of the economy, favourable conditions for the structure and efficiency of the economy, and better collection practices.

According to Xie, the first 11 months saw fiscal expenditure amount to 3.71 trillion yuan, up 25.2 per cent.

By expenditure category, 236 billion yuan was used for agricultural, forestry and water supply projects, up 31.4 per cent, 557.8 billion yuan for education, up 32.7 per cent, and 141.9 billion yuan for health and medical care, up 40.6 per cent.

Another 412.8 billion yuan went to social welfare projects, up 28.6 per cent and 117.4 billion yuan to scientific research, up 33 per cent.APP

Chinas fiscal revenue grows rapidly -DAWN - Business; December 20, 2007


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## Neo

*Chinese banks strength yet to be tested​*
BEIJING, Dec 25: Chinas state lenders have reported impressive growth in earnings but harder times may be on the way, testing their ability to withstand a downturn, a top banking regulator cautioned on Tuesday.

Cai Esheng, vice chairman of the China Banking Regulatory Commission, told a financial forum that banks should not be complacent but should prepare to face potential stumbling blocks by enhancing their risk controls and corporate governance.

Our banks have been developing robustly and have made a lot of money, but so what? Cai said. There is still a question mark as to whether we can withstand challenges, present or future. Cai cited the subprime mortgage crisis in the United States as a warning to Chinese banks that even well-established financial institutions could get into trouble.

Chinese lenders, which rely mostly on lending for their profits, could suffer once the economy turns sour, he said.

The comments reflect concerns in Beijing that although Chinas state banks have shed their debt-ridden past to become some of the worlds largest by valuation, on the back of government bailouts and strong economic growth, there may be lingering problems of internal management and governance.

State-owned banks, including Industrial and Commercial Bank of China, China Construction Bank Corp and Bank of China have been warmly welcomed by investors in their public listings over the past few years.

Cai reiterated that China was not ready to lift the ceiling on foreign ownership of its banks anytime soon.

US and European financial institutions have been pressing Beijing to lift ownership caps, hoping to better tap the growth in financial services that is accompanying Chinas economic boom.

The extent to which Chinas banking market will be open to the outside depends on how much other countries open their markets to Chinese banks, he said, echoing earlier comments by CBRC chief Liu Mingkang that greater openness would depend in part on the United States giving more access to Chinese banks.Reuters

Chinese banks strength yet to be tested -DAWN - Business; December 26, 2007


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## Neo

*Chinese bourses raise $113bn in 2007​*
BEIJING: Chinas Shanghai and Shenzhen stock markets have raised 830.6 billion yuan (113.3 billion dollars) this year largely on an investment mania over initial public offerings, state media said Wednesday.

The total amount, which was only for the year up to December 21, was nearly a four-fold increase over the money raised on the countrys stock markets last year, Xinhua news agency said.

According to estimates, the total amount raised for the entire year is expected to exceed 841 billion yuan, it said.

This is equivalent to what was raised by the two bourses in their first 14 years of existence from 1990, it added.

More than half the funds raised this year were through 120 IPOs, as investors jumped at new flotations with a vengance, disregarding warnings that an ongoing share bubble is destined to burst eventually. 

Chinese IPOs this year raised about 61 billion dollars, far outperforming the US capital market which earned 10 billion dollars in new flotations, Xinhua said.

Chinas stock markets are in the midst of an ongoing boom with the Shanghai bourse up 95.60 percent for the year as of Wednesday, while last year the benchmark index rose 130.32 percent.

According to Xinhua, more large IPOs are expected next year from numerous Chinese state-owned enterprises.

Meanwhile 13 large state companies already listed on the Hong Kong bourse, such as China Telecom and Dongfeng Motor Group, are being encouraged to seek mainland listings in the future, it said. Notable IPOs in 2007 include PetroChina which became the worlds biggest flotation when it raised nearly nine billion dollars in the sale of four billion shares in early November.

Enthusiasm for Chinas largest oil refiner however faded quickly with the stock trading at around 30 yuan per share in recent weeks after touching highs of around 48 yuan immediately after the IPO.

Other top IPOs include China Shenhua, one of the nations largest coal producers, which raised a record 66.58 billion yuan on the Shanghai bourse in late September and China Construction Bank, one of Chinas four top commercial lenders, which raised more than 58 billion yuan.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Wealth gap in China widening: minister ​* 
Friday, December 28, 2007

BEIJING: Chinas wealth gap between urban and rural residents is widening, state media said on Thursday, a potentially explosive issue that has long worried the nations communist rulers.

City residents earned 3.28 times as much as those living in the countryside last year, compared to 3.23 times in 2003, the Xinhua news agency quoted agricultural minister Sun Zhengcai as saying.

In his report to the nations legislature, Sun said the yearly net income of Chinas 900 million rural residents rose seven per cent to 4,000 yuan (545 dollars) in 2007. The dispatch did not provide any comparative figures. In the financial hub of Shanghai the annual gross salary per capita for a worker last year was nearly 30,000 yuan or more than 2,400 yuan per month, according to Shanghai labour bureau statistics.

The growing inequality has accompanied Chinas huge economic boom, as Beijing has repeatedly vowed to improve the lot of its destitute farmers by spending more on health care, education and economic development.

Chinas leadership remains increasingly worried about the income gap brought about by 30 years of market reforms that have made a few Chinese cities very rich, but raised tensions in the nations hinterland.

Complaints in the countryside over high taxes and fees, illegal land grabs and pollution have repeatedly sparked protests that at times turn violent with tragic consequences. Despite an increase in spending on agricultural, rural workers and farmers to 431.8 billion yuan this year, an increase of 80.1 billion yuan over the previous year, the countryside remains woefully behind, Sun said. 

Wealth gap in China widening: minister


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## gpit

China's Invent-It-Here Syndrome - Forbes.com

*China's Invent-It-Here Syndrome*
Christopher Thomas 12.31.07, 6:00 AM ET

BEIJING, CHINA - In the past 18 months, China has officially embarked on a multi-year, multi-faceted plan to transform "made in China" into "invented in China." 

You can read about state economic plans on the Internet, and they sound dry and flat. In China, however, these plans are alive. They imbue every conversation with Chinese technology companies and with Chinese government ministers with urgency. They get written into contracts.

Here's how China's long-term economic plan came alive for me: This past summer, I moved to China for Intel (nasdaq: INTC - news - people ) to co-run our sales and marketing operations there. A few weeks into the job, I realized that doing business in China involved much more than winning sales in the world's only very large and very fast-growing PC market. 

For instance, international standards are the glue of the PC and communications industry, ensuring that machines can communicate and work together, no matter where they're made. Big corporations devote significant time and people power to making sure their ideas are represented on the standards bodies that write these rules. 

But in every introductory "ops" review I did in China, all our managers talked about how the "local standards" were a key to Intel's success in every market. By insisting (as any country can) that products sold in China must adhere to local as well as international standards, China makes sure that Chinese inventions get built into high-tech products sold here. That means there is a Chinese voice in which products succeed or fail in China. *And products that succeed in China have a much higher chance of succeeding globally.* 

Local standards are core to China's innovation policy. But there is much, much more. My plan is to share in subsequent columns some of the profound changes underway in China, as well as how to do business and drive innovation in China. I'll include the good, the bad and the unusual. (That includes today, when my feng shui tape measure told me not to buy a certain desk because its 174-centimeter or "yao qi si" width literally means "want my wife dead.") 

The Chinese government's goals are sweeping: to develop, influence or downright own the core intellectual property of the next generation of technologies that will power the global economy. To do this, the government has committed to doubling its spending on research and development so that it reaches 2.5&#37; of China's gross domestic product by 2010, approaching $100 billion annually. *China is also on track to have more research scientists and engineers than any other country by 2015.*

China's efforts are sharply focused on 16 fundamental sectors. Among them are high-end chips, semiconductor manufacturing, next generational wireless communications, software, pharmaceuticals, large aircrafts and space systems including high-resolution Earth-observation systems. The government also intends to use China's very large domestic market as a carrot to encourage the international community to embrace and support inventions from Chinese companies.

The current determination in China echoes what Americans experienced in the 1960s during the space race. Back then, we had a national focus. Programs touched everyone, even school children. We were thrilled to see an American take that first small step on the moon. The investments made to propel the U.S. through the space race and its military twin, the cold war defense buildup, became cornerstones of American economic prosperity. They supported the education of cadres of science and engineering students who subsequently invented personal computers, software, wireless communications and the Internet. Thanks to such investments, America became exceptionally good at thinking things up. 

How will the world change if the next great technology breakthrough happens in China? We haven't yet seen a Chinese breakthrough on the scale of an ipod or Web browser. But this will happen sooner than many pundits expect. 

China transforms itself quickly. Everyone knows about the skyscrapers of Beijing or Shanghai. But I have also walked the streets of many "Tier 2" and "Tier 3" cities from Lanzhou in the northwest to Guilin in the southeast. These once decrepit towns now pulse with energy as crane after crane builds skylines that would rival any U.S. or Asian metropolis. In cities like these across China, a PC mall with at least 100 storefronts opens every other day. 

Everyone has a stake in China's innovation economy: the research institutions, American-trained Chinese Ph.D.'s flocking back to China, Silicon-Valley funded start-ups in Suzhou, the Chinese multinationals looking to join the ranks of the global greats. International companies, too. 

China's economic development over the last 25 years has been good for China, good for the international economy and good for companies with a deep commitment to China. Intel is on that list. China's continued rise as an innovation leader would clearly be good for us as well. We want the native Chinese technology industry to advance. We want China to have its rightful seat at the table for setting global standards. We have built large research teams in China precisely for this reason. 

But the swiftness and focus of China's development also raise many questions: How successful can an innovation-based industrial policy be in today's global economy? What will China's "top down" path, so different from what led to Silicon Valley, bring about? What role will China's large domestic market play? How much innovation performed inside of China is "Chinese" vs. international? Does it make a difference if Intel China or a "red chip" makes the breakthrough? And of course--how does an international company align its goals with China, to win with China in the new innovation world order? I welcome your thoughts and comments.

_Christopher Thomas is Intel's deputy general manager for China and is based in Beijing. _


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## Neo

*Chinas per capita GDP to hit $3,000 ​*
BEIJING, Jan 5: Chinas per capita GDP will reach $ 3,000 by 2010, a decade ahead of the schedule set by the 2002 Communist Party National Congress, a government think-tank expert said.

An expert with the Chinese Academy of Social Sciences (CASS), Lu Xueyi said the figure would reach $6,000 in 2020 if it maintained the current growth rate. It was also aided by the Chinese currencys continued appreciation against the US dollar.

The countrys per capita GDP had grown by about $200 annually in the last two years to $2,200 in 2007, he estimated.

China had been in the fast lane in recent years as the nation took two years to raise its per capita GDP to $1,000 from $800 in 2000. It took another four years to reach $2,000.

The day (of $3,000 per capita GDP) will come sooner than expected, as the current economic growth is faster than the annual average of 7.2 per cent necessary for the realisation of this goal, an Asian Development Bank economist, Zhuang Jian said.

Chinas per capita GDP to hit $3,000 -DAWN - Business; January 06, 2008


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## gpit

lol. It'll be sooner if USD continues devaluating...


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## gpit

*AMEC Enters Etch, HPCVD Tool Markets*

Peter Singer, Editor-in-Chief -- Semiconductor International, 12/5/2007 6:49:00 PM

Shanghai-based Advanced Micro-Fabrication Equipment Inc. (AMEC) launched its official entry into the global semiconductor capital equipment market with a portfolio of leading-edge process tools for the 65-45 nm nodes and beyond. The company unveiled the Primo D-RIE (decoupled reactive ion etch) system for critical and other dielectric etch applications and the Primo HPCVD (high-pressure chemical vapor deposition) system for shallow trench isolation (STI) and pre-metal dielectric (PMD) deposition at Goldman Sachs offices in Tokyo, preceding SEMICON Japan.

AMEC is one of the first suppliers of leading-edge semiconductor manufacturing equipment suppliers based in China, with its main operations in the Pudong district of Shanghai. Company executives emphasize that the company is Asia-based with a global infrastructure that includes R&D, manufacturing, business and support operations in China, Japan, Korea, Singapore and Taiwan. The company was established in 2004 in the Cayman Islands, has its sales holding headquarters in Singapore and subsidiaries in Japan, Korea and Taiwan. In Shanghai, AMEC owns a 6500 m2 building on 28,000 m2 of land. A second phase building is under design for large-volume manufacturing capacity. A 50,000 m2 adjacent lot is reserved for future expansion.

AMEC is well funded, having obtained funding from Goldman Sachs, Qualcomm and Samsung, among others. Total funding is $111M, with an additional $90M available, according to company chairman and CEO, Gerald Yin.

Yin said the company reflects a growing trend of new Asia-based capital equipment companies poised to serve a semiconductor manufacturing industry that has increasingly shifted to Asia. This provides advantages in terms of closer geographic and cultural proximity to customers, access to skilled technical talent and experienced semiconductor executives, and it places these critical vendors in the hub of a thriving local supply chain, he said.

According to Dean Freeman, research vice president with market research firm Gartner Dataquest Inc. (Stamford, Conn.), 66% of all semiconductor device revenue is consumed in Asia, making the Asia-Pacific region [including Japan] the epicenter of semiconductor manufacturing. Our data also shows that 75% of all capital expenditures for semiconductor manufacturing take place in Asia, thus making it the hotbed for semiconductor equipment manufacturers as well.

The Primo systems feature advanced technology innovations and a unique chamber design that Yin said delivers high on-wafer performance, very low defects and high throughput. At the heart of each tool is a mini-batch cluster architecture that improves productivity by more than 35% over comparative systems, while offering a 35% lower cost-of-ownership (CoO) benefit. Two systems have already been shipped. They were installed and fully operational in only seven days; several more systems are ready to ship to leading-edge semiconductor fabs in Asia.

The 300 mm Primo D-RIE system leverages a twin-station mini-batch cluster system with a single-wafer environment and patented VHF D-RIE plasma source designed to provide fine CD control, high selectivity to mask, wide process window, and robust and repeatable performance for critical and other dielectric etch applications at nodes of 65-45 nm and beyond, according to the company. The applications include: VHAR, hard mask open, spacer, dual damascene via and trench etches, among others.

The system features decoupled, dual-frequency RIE with independent ion density and energy control; symmetrically distributed and direct RF feed for precise process control and within-wafer etch rate uniformity; proprietary, dual plasma confinement for process stability with high flow conductance for wide process window; independent RF generator, on-board uniformity control unit and end-point control per station; a bottom-powered, high-frequency source that enables stable, low-pressure, high-plasma-density strip to preserve low-k integrity; a proprietary, self-isolated RF match for quick and repeatable frequency tuning capability; high purity, plasma-resistant chamber materials for near zero defectivity and low cost of consumables, and a direct resistive top electrode heating with close-loop control. 

The 300 mm Primo HPCVD system combines a mini-batch cluster system with a single-wafer processing environment and other technology features to tackle STI and PMD applications at 65-45 nm nodes and beyond. The system features a patented multi-channel distribution technology that enables high deposition rate, wide void-free gap-fill window and low particle performance. A dynamic wafer heater stage enhances within-wafer and wafer-to-wafer uniformity control for dopants and film thickness, and a unique injector design that reduces particle generation and provides higher liquid flow rate, according to the company.


AMEC's manufacturing facility in Shanghai.


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## solid snake

*Chinese trade surplus soars to record in 2007*​
BEIJING, Jan 11: China's trade surplus surged nearly 50 per cent last year to surpass 260 billion dollars, official data showed on Friday, a stunning rise certain to see more global pressure for Chinese currency reform.

A surplus of 22.69 billion dollars in December lifted the 12-month figure to 262.2 billion dollars, up 47.7 per cent from 2006, the customs administration said.

The surplus has climbed more than 10-fold since 2003, stoking concerns among China's major trading partners about the Asian nation's export juggernaut.

EU officials are talking about it in each visit to China. It is a serious problem, said Ma Qing, a Beijing-based economist with CEB Monitor Group.

US, European and other critics complain that China keeps its currency, the yuan, artificially weak, which they argue gives Chinese exporters an unfair advantage.

China has responded by allowing the yuan to appreciate gradually, and slightly faster in recent weeks, but it has refused to scrap its controls completely.

The data showed exports rose 25.7 per cent year-on-year to hit 1.218 trillion dollars in 2007, providing more fuel for critics who say the yuan is still too weak. Imports climbed by 20.8 per cent to reach 955.8 billion dollars.

Meanwhile state media said the country's foreign exchange reserve, already the world's biggest, had soared to 1.53 trillion dollars by the end of 2007, due mainly to the giant trade surplus.

On Friday, the yuan closed at another record high of 7.262 yuan to the dollar, which marked an appreciation of about 12 per cent since the currency's peg to the greenback was loosened in July 2005. The yuan is likely to appreciate by around eight to 10 percent against the dollar in 2008, according to Qiu Qingdong, a Beijing-based economist with Guodu Securities, whose estimate was similar to those given by other analysts.AFP

Chinese trade surplus soars to record in 2007 -DAWN - Business; January 12, 2008


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## gpit

Slow appreciation of Yuan is good for both the Chinese and the Americans.


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## Neo

*China attracted record $82.7bn FDI in 2007 ​* 
Tuesday, January 22, 2008

BEIJING: Foreign firms invested a record 82.7 billion dollars in booming China last year, the government said on Monday, with analysts adding the tide of money had undermined efforts to slow economic growth.

The 2007 figure for foreign direct investment, or FDI, was up 13.8 per cent from a year earlier, the commerce ministry said in a statement. China has been striving to cool its economy over concerns that it could overheat and shudder into a sharp slowdown, but analysts said the nations still-explosive growth continued to lure foreign firms.

Inbound FDI is in no way helping the governments efforts to cool the economy, it is actually doing the opposite, said Feng Yuming, a Shanghai-based analyst with Oriental Securities. Experts estimate Chinas economy probably grew about 11.5 per cent in 2007, the fifth consecutive year of double-digit percentage growth. Official figures are due on Thursday, with many forecasters optimistic that China will grow reasonably strongly this year too despite the prospect of a sharp economic slowdown or even recession in the US.

Foreign investment may continue to rise at a fast pace in 2008 due to the rising value of Chinas currency, the yuan, Feng said. China drew a then record 69.46 billion dollars in FDI in 2006. The government has been trying to channel the money away from real estate, resources and export-linked sectors in the interest of economic stability. 

China attracted record $82.7bn FDI in 2007


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## Neo

*Chinas economic growth seen exceeding 11.5% in 2007​*
BEIJING: Chinas 2007 economic growth figures to be released Thursday are expected to show a stunning expansion of around 11.5 percent that could be the highest annual rate in 13 years, analysts said.

The pace of growth is seen topping even 2006s sizzling 11.1 percent on the strength of surging foreign investment and exports, but is expected to moderate in 2008 as the government tightens monetary policy, they said.

GDP is likely to have grown the fastest in more than a decade, by 11.4 percent, led by brisk investment demand and a record-breaking contribution of net exports, Wang Tao, a Beijing-based economist with Bank of America, said in a research note.

According to data from the National Bureau of Statistics, growth in that range would be the fastest since 1994, when the economy expanded by 13.1 percent.

The numbers also look likely to bring China, the worlds fourth-largest economy, even closer to overtaking No. 3 Germany, analysts said.

Im not sure what the 2007 figure will reveal on that, but I am sure Chinas GDP will surpass Germany in 2008, Feng Yuming, a Shanghai-based economist with Oriental Securities, told AFP.

Created 12 million jobs in 2007: Chinas stunning economic growth created 12 million new jobs in 2007  more than the population of Greece and easily exceeding a government target.

The increase helped shave urban unemployment to four percent, down 0.1 percentage point, but employment pressures remain as 10 million more people enter the workforce in the worlds most populous nation annually, the China Daily quoted a top official as saying.

The job growth surpassed an official target of nine million set at the beginning of last year, Zhai Yanli, vice-minister of Labor and Social Security, was quoted as telling a press conference.

By comparison, just 1.3 million jobs were created in the United States, the worlds largest economy, according to US Bureau of Labor Statistics.

Job growth in China has brought unemployment down from a high of around six percent in the late 1990s, when economic restructuring eliminated millions of jobs, it said.

The report did not specify whether the 2007 urban jobless rate included the massive floating population of migrant workers seeking work in the cities. The number of such migrants is believed to be around 150 million. afp

Daily Times - Leading News Resource of Pakistan


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## Neo

*Don't fear China's success, fear its failure ​*
By Bruce Anderson

Although the chaos at Heathrow was an inauspicious start, it is important that the Prime Minister's mission to China should not crash-land. A formidable array of businessmen accompanied Mr Brown to pay economic homage, and rightly so. By the middle of this century, China could be the world's largest economy, and many of the greatest questions thrown up in the course of the century will be answered in Chinese characters.

Chinese goods have controlled American inflation while Chinese savings have financed American consumption. China's demand for raw materials is not only underpinning world commodity prices: as the Chinese do not care whom they buy from and are happy to pay their cheques straight to Swiss bank accounts, it is also undermining the quest for good government in Africa. We can only hope that in private - megaphone diplomacy would be worse than useless - Mr Brown has tried to persuade his hosts that well-run countries can still produce oil and minerals.

But Britain needs China almost as much as China needs Africa. Free trade is in our DNA, so we should do everything to cultivate the Chinese market, while understanding the risks. Mr Brown's offer of London as a base for China's $200 billion sovereign wealth fund is a good start.

China is not a country at ease with itself. Apart from the inevitable strains associated with rapid growth and development, there are at least three others: anger, sex and fear.

The anger arises from historic humiliations. The Chinese, who think in millennia, are well aware that a century or so ago, British entrepreneurs had a different demeanour. Backed by the Royal Navy, they occupied ports, extorted concessions and forced the Chinese to buy opium.

Other great powers also trampled on China. This culminated in Japan's attempts to ravage the mainland and turn the Chinese into coolies and comfort-women. This explains the anger of the Chinese over Taiwan. To them, it is a part of China, which was turned into a Japanese colony, then an American one. We should be grateful that the Taiwanese government is now behaving more sensibly, because if it ever declared independence, China would probably go to war.

The Chinese see themselves as the greatest race on earth. They used to dismiss the Japanese as obscure fisherfolk, the product, according to legend, of the union between a Chinese princess and a sea-monster. The knowledge that China has been the least successful Asian nation for about 150 years, easily surpassed by the Japanese, is an open wound.

So is the one-child policy, intended to control population growth, which has created the sexual problem. In a society, which values male children, there has been female infanticide on a vast scale. In some age cohorts, there are 20 million more males than females. How will the spare men behave, especially as many of them are being bought up as "little Emperors"? Traditionally, peasants regard their offspring as their pension fund, the only hope of a meal ticket in old age. So these only children have been anxiously watched over, cherished and spoiled. Even so, there may not be enough of them to support the non-working population. China might grow old before it grows rich. The one-child policy is a fascinating sociological experiment. It is unlikely to have a benign outcome.

Finally, fear: the government's fear of its people. The peaceful death of Chinese communism has removed the regime's sole claim to legitimacy and the number of protests and demonstrations has been increasing. Thus far, the government has tried to offer a substitute for democracy; econ-ocracy - using higher living standards to buy acquiescence. This is not a futile tactic. Only 40 years ago, tens of millions of Chinese were trying to survive on bark and grass. Now, most have enough to eat. That is a great leap forward, and will buy the government some time.

Yet econ-ocracy is only an interim solution. The Chinese are an individualistic race; they do not share the Japanese tendency to a group mentality. Eventually, the demand for rights and votes will become irresistible except by the most brutal repression. It is vital that such a conflict is avoided, but we have no means of influencing developments in China except by indirect attempts to promote goodwill.

Cultural and intellectual exchanges can reinforce economic ones. Oxford and Cambridge have scholarship programmes for Chinese students. One trusts that the businessmen on the Brown mission will all be tapped for donations on their return.

At best, however, this will have a marginal effect on the long march of Chinese history. We can only hope that it goes in the right direction. If China succeeds, there will be a price. The West would lose power. But Chinese success is much the lesser evil. Imagine what would happen if that huge and powerfully armed nation became a failed state.

Daily Times - Leading News Resource of Pakistan


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## Neo

*China to boost rural spending by $14bn ​* 
Friday, February 01, 2008

BEIJING: China will spend over $70 billion on rural development this year, a quarter more than in 2007, as Beijing races to patch up crumbling dams, provide clean water and help narrow the yawning economic gap with its coastal boomtowns.

Policymakers hope that boosting spending on roads, health, education and agricultural subsidies to 520 billion yuan ($72.40 billion) will temper Chinas growing income imbalance and help stem the flow of labour to its thriving cities that has drained some rural areas of more than half their workforce.

The rise comes after China last year spent 420 billion yuan, exceeding its budget by 30 billion yuan as it subsidised seeds and equipment for farmers and extended rural infrastructure, Chen Xiwen, director of the Office of the Central Leading Group on Rural Work, which guides agricultural policy, said on Thursday.

As far as I know, the growth in 2008 will be larger than in 2007; it will be a growth of 100 billion yuan, Chen, who is also deputy director of the Office of Central Leading Group on Financial and Economic Affairs, told reporters.

After decades of supporting its cities at the expense of the countryside, Beijing has changed tack in recent years to address the growing disparity between urban and rural incomes. Chinas State Council, or cabinet, on Tuesday issued a pledge to increase investment and make access to financing easier in the countryside, where incomes and economic growth have lagged that of the booming coastal cities. In the last few years, China cancelled a two-millenia-old grains tax, removed other arbitrary fees, and reinstated free grammar school education. 

China to boost rural spending by $14bn


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## gpit

*ICBC Deposes Citigroup as Chinese Banks Rule in New World Order *

By Aaron Kirchfeld


Feb. 4 (Bloomberg) -- There's a new world order for banks, and the Chinese, for the first time, are the biggest, with a market capitalization that has made perennial No. 1 Citigroup Inc. a distant also-ran behind Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. 

``The tables have been completely turned,'' said Daniel Yergin, the Washington, D.C.-based chairman of Cambridge Energy Research Associates Inc. during an interview at the World Economic Forum in Davos, Switzerland. 

The reversal of fortunes is the clearest sign yet that shareholders are betting on banks in the emerging markets rather than the U.S. institutions that dominated the financial landscape for most of the past century. As recently as 2003, there were 13 American banks ranked in the top 20 and not a single Asian rival, data compiled by Bloomberg show. Now, there are four Asian and six U.S. institutions. The collapse of the subprime mortgage market wiped out almost $100 billion of value from the three biggest U.S. banks in the past six months. 

It was just a year ago that Citigroup was the world's biggest bank by market value, and ICBC was beginning its fourth month as a publicly traded company. 

Today, Beijing-based ICBC is the largest financial-services firm and Citigroup has tumbled to seventh on growing concern that the 196-year-old company is no match for a bank based in the world's fastest-growing major economy that has more customers than the combined populations of France, Spain and the U.K. 

``As far as the financial industry is concerned, in August you went from one world to another almost overnight, especially in the U.S.,'' said Yergin, whose book ``The Prize: The Epic Quest for Oil, Money & Power'' won the Pulitzer Prize in 1992. 

New Champions 

Citigroup, Zurich-based UBS AG and Royal Bank of Scotland Group Plc in Edinburgh, names that headed the list of largest companies five years ago, are today's laggards. 

The new champions are ICBC and Beijing-based China Construction Bank, as well as Bank of America Corp. in Charlotte, North Carolina, and London-based HSBC Holdings Plc, two companies criticized by shareholders for relying on consumer banking networks rather than securities units that propelled profits at competitors until the second half of last year. 

Investors have piled into Chinese banks to participate in an economy that expanded 11.4 percent in 2007, the fastest in 13 years. ICBC, China Construction Bank and Bank of China, the country's three biggest, are valued at $608 billion, compared with $496 billion for Bank of America, JPMorgan Chase & Co. and Citigroup. ICBC is worth about 1.99 trillion yuan ($277 billion), $82 billion more than Bank of America, its closest rival. 

Housing Recession 

At the same time, the biggest western banks are enduring the worst U.S. housing market in a quarter century, which has led to more than $145 billion of subprime mortgage-related losses and investment markdowns and sparked concern about a possible U.S. recession. The value of American banks has been further dented by declines in the dollar during five of the past six years. 

``There's the rise of China, challenges faced by multibusiness banks and the subprime shock,'' said Charles Whitehead, associate professor of corporate law at Boston University, in an interview. ``These trends changed the banking landscape.'' 

Citigroup, the world's biggest bank since the merger of Citicorp and Travelers Group Inc. in 1998, slumped 47 percent in New York trading in the past year, losing the top spot. In the fourth quarter, the New York-based company replaced Chief Executive Officer Charles Prince, posted a record loss and wrote down $18 billion. 

`Key Components' 

Market value shows where investors see future growth, said Christopher Sur, a Frankfurt-based senior manager in the financial services unit at PricewaterhouseCoopers LLP, the biggest accounting firm. 

``Key components like return on equity and cost-income ratios are all reflected in the share price,'' he said. 

Bank of America has retained its second-place spot worldwide by market value since 2005; HSBC held on to third place ahead of China Construction Bank; and San Francisco-based Wells Fargo & Co., the biggest bank on the U.S. West Coast, rose to eighth from 11th last year. All three companies rely on retail business such as deposits, loans and fees for about two thirds of revenue, according to Bloomberg data on 2006 figures. 

By contrast, Citigroup generated a little more than half of its revenue from global consumers and about a third of revenue from investment banking-related operations including complex securities such as collateralized debt obligations, Bloomberg data show. 

`Relearn the Basics' 

``Citigroup doesn't have the broad consumer business and deposit base to fall back on,'' in the U.S. like Bank of America, JPMorgan and Wells Fargo, said Graham Tanaka, president of New York-based Tanaka Capital Management Inc., which sold its Citigroup shares about a month ago. ``Periodically we go through cycles where banks have to relearn the basics.'' 

UBS, the biggest European bank by assets, declined to 16th place from eighth after posting the biggest ever loss by a bank in the fourth quarter. Morgan Stanley and Barclays Plc fell out of the top 20, and Washington-based Fannie Mae, the largest U.S. mortgage finance company, and Freddie Mac of McLean, Virginia, sunk furthest. Goldman Sachs Group Inc. is the highest-ranking securities firm, and places 15th in the world among financial- services companies. 

Italy's two-biggest banks, UniCredit SpA and Intesa Sanpaolo SpA, have climbed to 12th and 13th, respectively, after almost quadrupling their market value in the last three years through acquisitions at home and in central and eastern Europe. Both companies weren't even in the top 20 three years ago. They dwarf Frankfurt-based Deutsche Bank AG, the world's 27th biggest bank despite its being the No. 1 financial company in the third- biggest economy. 

Regionals Outpace Universals 

Deutsche Bank and Credit Suisse Group, Switzerland's second- biggest bank, are both smaller than China's Bank of Communications Ltd., the Asian country's fourth-largest bank by market value. ABN Amro Holding NV, the Dutch bank, which climbed to 11th this year, will lose that spot as it is broken apart by a group led by RBS, which bought it for 72 billion euros ($107 billion) in October in the industry's biggest-yet acquisition. 

``If you take out the Chinese, the main disturbance in the rankings is between large universal banks and regional-oriented banks,'' said Roy Smith, a finance professor at New York University's Stern School of Business and a former partner at Goldman. ``The universal banks have been harder hit by subprime.'' 

Share price declines, writedowns and rising borrowing costs forced firms, including Citigroup and UBS, to raise at least $84 billion, mostly from investors in the Middle East and Asia, to shore up balance sheets. 

Sovereign Funds 

``The dominant economic theme is how deep are the problems and the crisis in the financial system, and what's the impact of the appearance on the world stage of the sovereign wealth funds, which really represent a tremendous transfer in global income,'' said Yergin of Cambridge, Massachusetts-based Cambridge Energy Research during the interview in Davos. 

UBS, whose debt was 48 percent of assets, and Citigroup, at 47 percent, were more vulnerable than competitors with more customer deposits, such as Bank of America, where debt accounted for 39 percent of assets, and HSBC, where it was 19 percent, according to Bloomberg data based on 2006 figures. 

Investors rewarded European banks that relied on growth in emerging markets. HSBC generated half of its pretax profit in emerging markets in the first six months of 2007. Spain's Banco Santander SA, placing ninth, generated about one third of its profit in Latin America in the first nine months and paid 20 billion euros for a unit of Amsterdam-based ABN Amro last year to more than double its presence in Brazil. 

High Chinese Valuations 

``Banks like HSBC and Santander that have higher exposure to emerging markets than traditional developed-market banks are attracting more investors because those markets are flying despite the U.S. slowdown,'' said Ronny Rehn, a London-based analyst at Morgan Stanley. 

Chinese banks raised more than $73 billion in share sales since June 2005 and extended 3.6 trillion yuan of new loans in 2007. ICBC has almost doubled in Beijing trading since the record $22 billion initial public offering of almost 15 percent of its shares in October 2006. It has about 180 million customers. 

``I always joked with my colleagues that it's not that we are doing well, it's just that our rivals overseas are doing badly,'' ICBC Chairman Jiang Jianqing said in a Nov. 29 interview. ``Being the world's largest bank by market value is not our goal. What we want to become is the most profitable.'' 

Chinese banks are now among the most expensive in the world relative to earnings, assets and revenue. Investors pay 28 times estimated full-year profit for ICBC shares in Shanghai and 19 times in Hong Kong, Bloomberg data show. That compares with about 11 times for New York-based JPMorgan and 10 for HSBC. 

Difficult to Compare 

ICBC expects to report net income of more than $10 billion for 2007, trailing Bank of America's $15 billion and exceeding Citigroup's $3.6 billion. China Construction Bank estimated on Jan. 17 that earnings rose 48 percent last year to about $9.5 billion. ICBC's return on assets was 0.71 percent in 2006, compared with 1.27 percent for Citigroup. 

``China's capital market is a closed one, and that's why it's hard to compare valuations with overseas peers,'' said Zheng Jie, a Shanghai-based bank analyst at Industrial Fund Management Co., which manages 38 billion yuan. At Bank of China, for example, 67 percent of stock is locked up. 

China's Banking Regulatory Commission is clamping down on loan growth after the nation's cabinet identified overheating and inflation as two major risks facing the economy in 2008. 

Comparisons With Japan 

The rally in Chinese banks has also drawn comparisons with the Japanese stock market bubble of the 1980s and subsequent collapse. Tokyo-based Nomura Holdings Inc.'s market value climbed in 1987 to $76 billion, the largest of any financial institution, and 18 times bigger than New York-based Merrill Lynch & Co., the largest U.S. brokerage. The biggest Japanese bank is now Mitsubishi UFJ Financial Group Inc., placing 10th in the world. 

Loans outstanding in China are equivalent to 111 percent of gross domestic product, a larger ratio than in Japan during the bubble era, KBC Securities Japan analyst Kristine Li wrote in a Jan. 15 report to clients. Market values relative to loans outstanding jumped to 64 percent in China, compared with a maximum 40 percent in Japan before shares tumbled, she said. 

``It's a well-known secret that the Chinese banks have a bad loan problem,'' said Whitehead of Boston University. ``But part of the presumption among investors may be that the Chinese government will step in if something bad happens.'' 

The following is a table of the world's biggest banks by market capitalization in current U.S. dollar terms, showing their rank at the end of January 2008, 2007 and 2003. 



1/31/08 Mkt cap ($bln) 1/31/07 1/31/03

1 ICBC 277.514 4 NA
2 Bank of America 195.933 2 2
3 HSBC Holdings 176.788 3 3
4 China Construction 165.234 7 NA
5 Bank of China 165.087 6 NA

6 JPMorgan Chase 159.615 5 9
7 Citigroup 140.698 1 1
8 Wells Fargo 112.365 11 4
9 Banco Santander 109.862 12 23
10 Mitsubishi UFJ Financial 105.412 9 22

11 ABN Amro+ 103.643 34 29
12 UniCredit 97.591 15 32
13 Intesa SanPaolo 89.954 16 46
14 BNP Paribas 88.487 14 15
15 Goldman Sachs 87.602 18 18

16 UBS 84.878 8 7
17 BBVA 78.302 19 25
18 Sberbank 77.713 31 109
19 Royal Bank of Scotland 76.023 10 6
20 Wachovia 75.401 13 8

+ RBS, Santander and Fortis agreed to buy ABN Amro in 2007.
To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net 

Last Updated: February 3, 2008 19:03 EST
Bloomberg.com: News


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## Neo

*China gaining in technology sector​*
WASHINGTON: China is capturing most of the growth in high-tech manufacturing among developing countries, with Latin America the main loser, according to a study released Wednesday.

The study by Kevin Gallagher at Boston University and Roberto Porzecanski at Tufts University said Chinas surge in the technology industries pose a major risk to Latin America, which has failed to remain competitive.

The competitiveness of Latin American countries in high tech is stagnating or rapidly deteriorating for an overwhelming majority of high-tech products, the researchers said in a paper released by the Center for Latin American Studies at the University of California.

This finding is particularly striking in comparison with Chinas impressive performance.

The researchers noted that although we dont speculate about a causal link ... our findings undeniably show that Chinas efforts to develop endogenous technological capacity and competitiveness have been by far more successful than those in Latin America.

They wrote that Chinas success is especially stunning since in 1980 it was ranked 99th among all countries in technology exports. By 2005, China was nearly even with the world leader, the United States, with about 12.4 percent of global exports.

The study said a large amount of high-tech manufacturing has moved from wealthier developed countries to the developing world since 1980, and that China has captured the majority of those gains.

The report said 95 percent of technology exports from the Latin American countries are under some type of threat from China, the majority of which are direct threats. This represents about 12 percent of all exports from Latin America.

This is most pronounced in Mexico and Costa Rica, where over 87 percent of all high-technology exports are under threat and where such exports represent over 24 percent of total exports in both countries, the study concluded. afp

Daily Times - Leading News Resource of Pakistan


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## gpit

*China January Trade Surplus Up 22.7 Pct*

By JOE McDONALD &#8211; 16 hours ago

BEIJING (AP) &#8212; China's trade surplus grew by 22.7 percent in January over the same month last year as foreign demand for exports stayed strong despite worries about slowing global growth, according to data reported Friday.

The latest figures appeared likely to fuel demands by China's trading partners for action on trade barriers and currency controls. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act quickly.

January's trade gap totaled $19.5 billion, the government's Xinhua News Agency said, citing data from the Chinese customs agency.

Exports in January rose 26.7 percent to $109.7 billion, while imports grew by 27.6 percent to $90.2 billion, according to Xinhua.

But compared to previous months, the surplus shrank. It was the first time since April that China reported a monthly trade gap below $20 billion. In December, it totaled $22.7 billion, and in October it reached an monthly record of $27 billion.

China has continued to rack up multibillion-dollar monthly surpluses despite government efforts to rein in exports of steel, plastics and other goods that it deems too dirty or energy-intensive.

Economists say a slowing American economy might cut demand for Chinese goods slightly, but they still expect China to continue to run a large surplus with the United States.

Friday's trade data suggested that China could expect strong growth this year despite a possible slowdown in the United States, a key export market.

The managing director of the International Monetary Fund said Friday that China might be affected by a U.S. slowdown but its economy still should expand by about 10 percent this year. That would be down from 11.4 percent growth in 2007.

"While we are experiencing a decrease in growth in advanced economies, it is even more necessary than before to have a high level of growth in China," said Dominique Strauss-Kahn, who was in Beijing for meetings with Chinese leaders.

Beijing also has tried to rein in exports of wheat and other grains in order to increase domestic supplies and cool an inflation spike blamed on shortages of pork and grain.

Chinese leaders say they are not actively pursuing large surpluses.

The multibillion-dollar influx of export revenues has strained Beijing's ability to restrain pressure for prices to rise. The central bank drains billions of dollars a month from the economy through bond sales and *has piled up $1.53 trillion in reserves.*

No monthly figures on China's trade with the United States or other individual partners were immediately reported.

On Thursday, the U.S. Commerce Department said the annual U.S. trade deficit with China rose by 10.2 percent in 2007 to a new all-time high of $256.3 billion. Trade figures in the U.S. and China are calculated differently.

Critics of China's trade record are pushing Beijing to ease barriers to imports and currency controls that they say keeps the country's yuan undervalued. They say that gives China's exporters an unfair advantage and adds to its surpluses.

Strauss-Kahn said he urged Chinese leaders to ease currency controls, saying a more flexible exchange rate would help to achieve their goal of reducing reliance on exports.

"More domestic demand growth will be what China needs, not export-driven growth," he told reporters.

Pressure on China for action is expected to increase as the American presidential election campaign progresses, with the Democrats arguing that the U.S. trade deficit with China has contributed to the loss of more than 3 million manufacturing jobs since 2000.

China says its trade surplus with the world last year rose 47.4 percent to $262.2 billion.

The Associated Press: China January Trade Surplus Up 22.7 Pct


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## Neo

*Chinas FDI doubles*​
BEIJING, Feb 18: Foreign direct investment into China more than doubled in January, up 109.8 per cent from a year ago, the commerce ministry said on Monday.

Foreign companies invested $11.2bn in the country last month, the ministry said in a statement posted on its website.

Last year, China attracted $82.7 billion in foreign direct investment, rising 13.8 per cent from a year earlier.

Foreign direct investment, along with booming exports, are among the top factors resulting in Chinas massive build-up in foreign exchange reserves.

Chinas foreign exchange reserves, already the worlds largest, hit $1.53 trillion by the end of 2007, up more than 40 per cent from the previous year, state media reported earlier.

Chinas FDI doubles -DAWN - Business; February 19, 2008


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## mujahideen

China to emerge as world power in shipbuilding capabilities in 2020: report 

BEIJING, Feb. 23 (APP): Chinas shipbuilding capabilities in 2010 will reach 21 million tons and in 2020 the country would become a world power in the sector, said a report on Chinas marine development. 
The throughput of major sea ports will also surpass 5.6 billion tons in 2010, with a relatively complete port transportation system being established, according to report released by the State Oceanic Administration (SOA).

It said that Chinas seas will contribute 3.16 trillion yuan (US$ 433), or more than five percent of the countrys gross domestic product (GDP), in 2010, also predicted the countrys offshore crude oil output would exceed 50 million tons. Chinas development of ocean crude oil will enter into a speedy period, it said, adding that at the time, the countrys natural gas development would grow quickly with key technologies greatly helping exploration.

It pointed out that Chinas current offshore oil and gas exploration was still in an infant stage, with 80 percent of oil and gas resources yet to be tapped.

The countrys explored crude oil only accounted for 17.6 percent of the reserve at sea, and natural gas that was tapped out only made up 11.9 percent of the national sea reserve, it said.

app - China to emerge as world power in shipbuilding capabilities in 2020: report


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## Neo

*Why is China booming? ​*By John Delury

A key question remains unanswered: why did Chinas boom happen? This is one of the great questions of our time, relevant not only to Chinas future, but to scores of other developing countries enthralled by Chinas extraordinary, but still largely unexplained, success

China is now celebrating the 30th anniversary of the period officially known as reform and opening. Labelling time in this way echoes Chinas imperial history. During moments of political transition  a military victory, for example  the emperor might designate a special era name to help celebrate the good news. Or the court might test out a new era name after a political debacle, in an effort to wipe the slate clean. The last emperor of the Tang Dynasty proclaimed seven era names in fourteen years, as he sought in vain to re-brand his reign and avoid his regimes demise.

Deng Xiaoping began to champion reform and opening in 1978. Reform suggested a loosening of central controls on economic life, undertaken in a spirit of pragmatism and gradualism, as an antidote to Mao Zedongs ideology of revolution. Similarly, opening heralded the PRCs integration into the world community  especially the capitalist West. Dengs principles still guide policy today.

One must go back to the Qing Dynasty (1644-1912) and its 60-year era of heavenly flourishing (Qianlong) in the eighteenth century to find a comparable period of coherent political and economic policy. The era of reform and opening has outlived its emperor by more than a decade, and has been the common thread running through transfers of political authority from Deng to Jiang Zemin and Hu Jintao. Even the largest popular challenge the Chinese Communist Party ever faced, the demonstrations of 1989, now looks like a blip that helped Deng consolidate support for his model of development.

If one factor undergirds Chinas commitment to reform and opening, it is the extraordinary macroeconomic changes of the past 30 years. In China, people call it fazhan, or development, but in much of rest of the world, it is more commonly described simply as the China Boom, or the China Miracle.

The boom began in the countryside in the late 1970s and 1980s, and was followed by todays urban, industrial-led growth. Indeed, there have been many smaller booms  in consumption, foreign direct investment, domestic stock markets, trade, travel, overseas study, military modernisation, and international diplomacy. There is also a boom in pollution and toxic waste, and booming interest in religion  from Buddhism to Pentecostal Christianity  and in Confucian philosophy. Little in China today speaks of moderation.

A leading fashion industry executive argues that a key engine driving the economic boom has been the influx of women into the workforce, particularly in the manufacturing zones of the south. Another compelling explanation comes from a venture capitalist who credits Chinese society with copious reserves of entrepreneurial energy that derives, he believes, from the fact that Chinese culture attaches very little shame to failing in a business enterprise. High tolerance for failure keeps everybody striving to succeed.

Whatever the cause, the boom seems an unlikely capstone to a century of war, ferment, and revolution, and only adds to the sense of discontinuity that characterises modern China. Certainly, few observers looking in 1978 at the smouldering embers of the Cultural Revolution, or at the seeming ruination of the post-1989 years, thought China would emerge as the lightning rod of the worlds developmental hopes.

Paradoxically, the apparently discontinuous and contradictory nature of the era of reform and opening may actually help explain how Chinas boom came about. The tumult of the Maoist period instilled in a broad cross-section of people a profound appreciation for stability, and a yearning to be left alone. Deng capitalised on this revolution-weariness by diminishing the role of politics and the state in peoples private lives and freeing them to release their pent-up energy to pursue their own goals.

Revolutionary communism may well have cleared the path for the boom in other ways as well, suggesting that the shift from socialist utopianism to capitalist pragmatism was less a U-turn than a sequential process of creative destruction. After all, Maos Cultural Revolution against feudal society did raze much of the cultural landscape, denuding it not only of traditional values and institutions, but also of failed socialist efforts, leaving China ready for the seeds of capitalist development.

Maos revolution fuelled countless rectification movements and campaigns that inverted the once-inviolate primacy of ruler over ruled, scholar over worker, husband over wife, father over son, and family over individual. By the time of the reforms of the 1980s and 1990s, bonds tying individuals to culture, the state, the work unit, and household-registration systems, for example, had largely unravelled. The path had been cleared for a vast new population of atomised entrepreneurs and labourers, freed from fealty to family and Party, to storm the marketplace with newly liberated individual energy.

Of course, the booms costs should not be discounted. Environmental damage has been staggering, the gap between rich and poor has been growing, and urbanisation  with all its attendant problems  has surged. And, at least so far, the boom has not induced the systemic political changes for which many hoped.

But still, a key question remains unanswered: why did Chinas boom happen? This is one of the great questions of our time, relevant not only to Chinas future, but to scores of other developing countries enthralled by Chinas extraordinary, but still largely unexplained, success. DT-PS

John Delury teaches Chinese history at Brown University and is the Director of the China Boom Project at the Asia Society 

Daily Times - Leading News Resource of Pakistan


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## Neo

*China to rein in oil majors ​* 
Wednesday, March 05, 2008

BEIJING: China on Tuesday unveiled a new set of fuel marketing rules that aim to revive and consolidate its wilting private wholesale and retail sector, by guaranteeing profit margins and reining in powerful oil majors.

The near-duopoly of Sinopec and CNPC will now be forced to sell fuel, at a viable price, to independent marketing firms that they had been slowly squeezing out of business. But in a reminder that stability still ranks above competition in Beijings priority list for the sensitive sector, the rules stipulate that only wholesalers with long-term supply and sales contracts would be guaranteed supplies.

The guidelines issued by the countrys commerce ministry and its top economic planner require China National Petroleum Corp (CNPC) and Sinopec to guarantee fuel costs for private wholesalers at 5.5 to 7 per cent below state-set retail prices.

They should also ensure private service stations can buy fuel for at least 4.5 per cent below retail prices, according to the document, which was published on Tuesday and confirmed what a source close to the situation told Reuters last week.

The two firms, which dominate Chinas energy sector, have for several years taken advantage of the combination of their virtual monopoly on refining and low state-set retail prices to squeeze margins at independent competitors. But the National Development and Reform Commission (NDRC) is clearly not seeking a return to the era when non-branded stations supplied four-fifths of Chinas motor fuel.

The document encourages CNPC and Sinopec to continue with takeovers, buyouts and joint-operation deals, and urges smaller marketing companies to consolidate and improve their service. Approval of new petrol stations will also be tightened.

And with inflation running at an 11 year high in January, it emphasises stability, with a strict ban on illegal price increases and measures apparently designed to ward off profiteering or too independent a market.

CNPC and Sinopec can reduce supplies to private wholesalers that sell fuel to retail service stations that they do not either own or have a contract with, the statement said. Independent refiners without fuel wholesaling rights must sell all their output to CNPC and Sinopec Group, the document added, without setting price guidelines. CNPC and Sinopec Group run most of their businesses through PetroChina and Sinopec their listed units. 

China to rein in oil majors


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## Neo

*China biggest recipient of FDI ​* 
Wednesday, March 05, 2008

LONDON: China retained its ranking as the top target for foreign direct investment (FDI) last year, attracting $90.4 billion, while India came second and the United States third in flows, a survey showed on Tuesday.

Overall, global cross-border FDI grew by 5.1 per cent in 2007 to $946.8 billion, consultants OCO Global said in an annual report. The group said China also remained top of the list for number of FDI projects, with 1,171. The amount of money it attracted, however, was a decrease from $116 billion a year earlier.

China was also number one for jobs, attracting 366,111 of the estimated 1.2 million new posts created in the Asia-Pacific region. India came second in investment flows, attracting $52.5 billion. It was third in number of projects with 676, which created 246,361 jobs.

The United States was third in the OCO Global list in terms of FDI inward flows, bringing in $46.8 billion to create 107,141 jobs. It was second in projects with 783. Within Western Europe, Germany attracted the most money with $22.8 billion followed by Britain with $18.7 billion. Britain also had the most projects for Europe with 622. 

China biggest recipient of FDI


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## Neo

*China losing competitive edge​*
SHANGHAI, March 4: More than half of foreign manufacturers in China believe the Asian giant is losing its competitive edge to other low-cost countries like Vietnam or India, a survey said on Tuesday.

Fifty-four per cent of respondents in 66 companies most of them foreign-owned firms in east Chinas Yangtze River delta area, thought Chinas competitiveness is waning, the joint survey said.

The survey by the American Chamber of Commerce in Shanghai and consulting firm Booz Allen Hamilton said seven out of 10 respondents cited appreciation in the Chinese yuan as a key reason for lost competitiveness.

A stronger local currency makes exports become more expensive.

Meanwhile, 52 per cent of respondents also attributed Chinas decline to rising wage costs with average annual compensation for white-collar managers and blue-collar workers growing 9.1 per cent and 7.6 per cent respectively.

The manufacturing philosophy employed by many foreign multinationals in China in recent decades is in need of an overhaul, said Ronald Haddock, vice president of Booz Allen.

If they dont do anything differently and the yuan goes up, they are in trouble, said Haddock, adding that foreign producers need to optimise their operational and marketing strategy in China to offset the impact.

However, only 17 per cent of the companies surveyed have concrete plans to relocate at least part of their Chinese operations or expand manufacturing capacity out of the country in the next five years.

The survey said 63 per cent of the firms planning to capture lower labour costs by shifting to other countries selected Vietnam as the top alternative while the remaining 37 per cent said India was their first choice.AFP

China losing competitive edge -DAWN - Business; March 05, 2008


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## Neo

*Chinas industrial output up 15.4% in Jan-Feb 2008​*
** China Industrial output in last 10 years​*
BEIJING: Chinas industrial production cooled down in early 2008 on weakening exports and the worst winter weather in half a century, official data showed Thursday.

Industrial output, a measure of factory production in the worlds fourth-largest economy, expanded by 15.4 percent in January and February from the same period a year ago, the National Bureau of Statistics said.

That compares with a growth rate of 18.5 percent in the first two months of 2007. Industrial output also grew by 18.5 percent for all of last year.

It has slowed down since the second half of last year, said Song Guoqing, a Beijing-based economist with the China Centre for Economic Research, a think tank. (It shows) economic growth is slowing down.

The apparent weakening in industrial production could reflect a slightly worse outlook for exports, which are a key driver of factory output in China, according to economists.

Chinas exports rose by just 16.8 percent in the first two months of this year, according to government data released earlier in the week.

This compared with 41.5 percent growth in exports in the same period in 2007.

The problems in the US economy are said to be contributing to weakening exports, which saw Chinas trade surplus shrink to $8.56 billion in February, a third of the figure a year earlier.

Exporters are facing big problems and they are unable to make profit, said Andy Xie, an independent economist based in Shanghai.

(This is) partly because of the appreciation of the yuan and another significant reason is the increases in raw material prices.

The Chinese currency, the yuan, has strengthened by about three percent since the beginning of the year, in a rise seen as engineered by policy-makers to accommodate foreign requests for a smaller Chinese trade surplus.

Another reason for the weakening industrial growth was the worst winter weather in decades, which stifled transportation networks for several weeks in late January and early February, economists said.

Observers said the coming months could see further slowdowns in industrial output growth as the government seeks to cool inflation, which hit a near 12-year high of 8.7 percent in February.

With heightened inflation risks, we expect further tightening measures by the government coupled with a gradual softening in exports will likely lead to downward pressure on industrial activities in the coming quarters, investment bank Goldman Sachs said in a research note.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Inflation top concern for China​*
BEIJING, March 18: Chinas central bank said on Tuesday it would increase the amount of money commercial banks must keep in reserve, just hours after Premier Wen Jiabao warned inflation was a top concern.

The Peoples Bank of China said in a statement the bank reserve ratio would rise half a percentage point to 15.5 per cent from March 25, in yet another bid to implement tight monetary policies and cool the economy.

The rise is to strengthen management of liquidity in the banking system and to guide the rational growth in money supply and credit, the bank said.

Analysts said the move was likely a signal that China is serious about controlling price increases after Wen identified inflation control as a top priority for 2008.

We need to ensure the fast yet steady economic development in the country and at the same time we need to effectively hold down inflation, the premier said in an annual press conference following the end of parliament.

The reserve ratio hike, the second this year and the 12th since the beginning of 2007, reduces the amount of money flowing through the economy.

Chinas inflation rate hit a near 12-year high of 8.7 per cent in February, while its economy expanded by 11.4 per cent in 2007.

The latest move will freeze 200 billion yuan in the banking system, according to estimates.

Analysts argued the fact that Chinas monetary authorities decided to act first on the required reserve ratio could suggest an interest rate hike might now be a more distant prospect.

The fact that the central bank decided to take the move on the required reserve ratio front at this moment indeed suggests lower risk of a near-term interest rate hike, investment bank JP Morgan said in a research note.

It said it expected three interest rate hikes in the second half of 2008, but none in the near term. It also said the required reserve ratio could possibly rise to 17 per cent this year.

Inflation top concern for China -DAWN - Business; March 19, 2008


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## gpit

*Dell to buy $52 billion components from China*

Thu Mar 20, 2008 7:20am EDT

By Kirby Chien

BEIJING (Reuters) - Dell Inc (DELL.O: Quote, Profile, Research) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (CSCO.O: Quote, Profile, Research) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (HPQ.N: Quote, Profile, Research) (HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai -- one of the company's largest -- and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), Carrefour SA (CARR.PA: Quote, Profile, Research) in Europe and China's GOME Electrical Appliances Holding Ltd (0493.HK: Quote, Profile, Research).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

(Reporting by Kirby Chien; Editing by David Hulmes


Dell to buy $52 billion components from China | Reuters


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## Bushroda

*Why China is the REAL master of the universe*
By ANTHONY BROWNE
Daily Mail, UK
11th April 2008 

Cecil Rhodes, the businessman-imperialist of Africa, the creator of Rhodesia, suffered no flicker of doubt about who were the masters. 

"To be born an Englishman," he mused, "Is to win first prize in the lottery of life." 

It wasn't idle boasting. In the jingoistic triumphalism of the late 19th century, when waving the Union Jack was a simple pleasure, people sang: "Rule Britannia! Britannia, rule the waves" without any irony. It was a statement of fact. 

A quarter of mankind lived under the British flag in the largest empire the world had ever known. 

And many of those parts that weren't under Britain's rule - such as the U.S. - had been created by Britain. 

British missionaries had opened up the Dark Continent almost unchallenged. 



 
*Eastern promise: Chinese factory workers line up for their morning roll call*

The British Army found it easier to invade troublesome nations - or most of them - than it does nowadays. 

Britain was the workshop of the world, dominating science, manufacturing and trade. 

To many Victorians, unquestioning of the ideology that underpinned much imperialism, British supremacy was a simple matter of racial supremacy - Europeans, and the English in particular, were fated to be the masters. 

The truth is that we are masters of the world no more. 

The global power shift from the West to the East is no longer just a matter of debate confined to learned journals and newspaper columns - it is a reality that is beginning to have a huge impact on our daily lives. 

What would those Victorian masters of old have made of the fact that Chinese security men were on the streets of London this week, ordering our own police about and fighting running battles with British protesters while bewildered athletes carried the Olympic torch on its relay through the capital? 

It was a brazen display of how confident China has become of its new place in the world, just as the British Government's failure to take a firm stand on Chinese abuses of human rights shows how craven we have become. 

The dire warnings from the International Monetary Fund this week that the West now faces the largest financial shock since the Great Depression, while the Asian economies are still powering ahead, simply underlines our vulnerability in this new world order. 

The desperately weakened American dollar appears to be on the verge of losing its global dominance, in the same way as sterling lost it a lifetime ago. 

The credit crunch has brought home to all of us in Britain how over-reliant our country has become on financial services. Meanwhile, the loss of our manufacturing industries to Asia continues unabated. 

Last month, an Indian company, Tata, bought up what was once the cream of British manufacturing - Jaguar and Land Rover. 

A couple of years ago, Nanjing Automotive, a Chinese company, snapped up MG Rover. 

Just as the 19th century was the British century, and the 20th century was the American century, the 21st century is the Asian century. 

But the handover of global power from the UK to the U.S. was trivial compared to what is happening now. 

The U.S. was Britain's offspring, based on the same values and the same language. 





*The boys in blue: Chinese security men escorting the Olympic torch on the streets of London last weekend. Many were shocked by their heavy-handed tactics*

It, too, was an Anglo-Saxon country, and passing the baton across the Atlantic ensured the continuation of the Anglo-Saxon world order, based on democracy, free trade and a belief in human rights, upheld through international institutions that both powers supported. 

But the world order we have grown used to - and comfortable with - over the last century is coming to an end. 

Napoleon III compared China to a sleeping giant and warned: "When China awakes, she will shake the world." 

After a long hibernation, China, and her 1.3 billion people - twice the population of the U.S. and EU combined - is awaking almost overnight. 

And not just China. The world's second most populous country, India, is industrialising at a historically unprecedented pace. 

Their economies are growing on a long-term basis about four times the speed of the UK's and that of the United States. Goldman Sachs, the bank, recently predicted that by 2050, China and India would have overtaken the U.S. to be the world's first and second biggest economies. 

We have long heard about the benefits this brings, in terms of plentiful cheap goods from toys to TVs, and huge opportunities for Western companies to sell their wares in these booming markets. 

But there are also downsides, which are becoming more apparent. Unskilled workers in the West have become unsettled by the threat to their jobs as production moves East. 

The most vulnerable Western workers have found their wages stagnate as they struggle to compete in an increasingly global market place. 

And competition for raw materials is pitting East against West. 

The economic explosion of China, and to a lesser extent India, has given them an almost overpowering hunger for raw materials with which to build their factories, homes and cars. 

Wherever you turn, the rise of Asia is making its impact felt on our existence. 

Every time you complain about the price of petrol being over £1 a litre, it is to the Far East you have to look to find the culprits. 





*Traditional image: The Great Wall of China stands tribute to its turbulent past ...*

There are even reports that manholes in Britain have been disappearing to feed the monstrous appetite for scrap steel in the other side of the world. 

China is spending 35 times as much on crude oil as it did eight years ago, and 23 times as much on copper. 

As it builds gleaming skyscrapers on its fields, China alone consumes half the world's cement and a third of its steel. 

What is happening is so extraordinary that economists have had to invent a new word for it - this is not an economic cycle, but a supercycle, a shift in the world economy of historic proportions. 

When demand increases and supply stands still, prices shoot up. Iron, wheat and oil are all at record prices, despite slackening demand in the faltering Western economies. 

The cost of living in Britain is now rising faster than wages, making the British on average poorer year on year. 

Asia's expansion means that its influence is starting to be felt more directly around the world. 

Asian countries are not just buying up foreign raw materials, but as their companies try to become global leaders, they are buying up Western companies. 

It is not just Land Rover, Jaguar and MG Rover. The Malaysian company Proton owns Lotus. Indian company Tata owns Corus, once British Steel, as well as Tetley Tea. 

The hunger for raw materials is also making China lose its shyness and venture out into the world. Like Germany and Russia, China has traditionally been a land empire, focusing its expansionist energies on countries it had borders with, and it eschewed the world-conquering exploits of Europe's sea-faring maritime nations. 

Europeans have, for half a millennium, been unchallenged as the global colonisers, but last month the respected Economist magazine dubbed the Chinese "The New Colonists". 

While the Congo in central Africa was once over-run by Belgians, it is now the Chinese that can be found wondering around its mining belts. 

In Lubumbashi, the capital of the Congo's copper-rich region Katanga, the Economist reported "a sudden Chinese invasion". 

Troubled Angola recently shunned Western financial aid because of the amount of Chinese money pouring into it, in return for commodities. 

From Kazakhstan to Indonesia to Latin America, Chinese firms are gobbling up oil, gas, coal and metals.





... *while horrific traffic jams are a sign of its present and future*

Canadian authorities were recently alarmed to find the Chinese interested in exploring the Arctic Ocean, in a bid to get a share of the minerals beneath the thawing icecap. 

In eastern Siberia, Russians worry that China is by default taking over their empty land. 

The West has long seen Africa as its backyard, but Western diplomats now worry that not just Africa, but South America, too, is being lost to China. 

And Western governments are concerned that the rules of the game are changing. Most worryingly, as China's brutal suppression of the once independent Tibet shows, this is not a superpower that respects Western standards on human rights. 

From Darfur to Myanmar, China is cuddling up to murderous dictators. 

At home, it holds mass executions of criminals with bullets in the back of the head while transplant surgeons stand by to harvest their still pulsating organs. 

Yet Western governments have been in such awe of China's looming power that their response has not been to challenge its abuses, but to try to silence their own protesters at home. 

From the UN to the IMF to the World Bank, the international institutions that attempt to govern the planet were made in the image of the victors of World War II. Now power is shifting from West to East, the whole liberal democratic world order will face its first serious challenge in decades. 

Many fear that things could get ugly. 

There is only one thing worse than an unchallenged superpower - it is a superpower with a victim mentality, which feels the world owes it a favour. 

And the bitter truth is that, after centuries of humiliation in foreign affairs, there is a nationalist mood in China that the country's time has come again, that it can again claim its rightful place as the world's most powerful country. 

Its comparative weakness over the last few centuries is, in fact, but a blip in the last 2,000 years, during which China was the world's most economically and culturally advanced nation.





*launch of the Tata Nano: The Chinese company has now taken over British manufactuing giants Land Rover and Jaguar*

It is an accident of history that Europeans took advantage of their window of opportunity in the last half of the second millennium to take over the world. 

The cause was a combination of factors such as the development of maritime technology in Europe, the competition between European countries that drove them to look outwards and find new ways to increase prosperity, and the fact China remained firmly locked in its agrarian, introspective past. 

Now things have changed, and already the shift in the world economy is starting to have dramatic effects on migration patterns. 

The emigration of poor people from China and India to the West is slowing down, as their citizens see more hope in their own rapidly advancing nations. 

Instead, their expanding middle classes are paying large fees for their children to enjoy a Western university education, before returning home. 

There are now 60,000 Chinese students in Britain, more than from any other country. 

Westerners have become accustomed to being the only tourists in the world's tourist hotspots, but the Chinese and Indians want to enjoy the fruits of their labour by expanding their horizons, too. 

Chinese tourists are likely to replace American tourists as popular irritants in Britain, and replace the Germans as competitors for the ski lifts. 

As the opportunities flow from West to East, so too do the people. 

India is luring the global Indian diaspora back, with laws that would be judged racist in Britain, offering visas to anyone living in the West with Indian blood in their veins. 

Even some non-Indian Westerners are heading East for opportunities greater than they find at home. 

The West's cultural supremacy is likely to be as challenged as its economic supremacy. 





*Under construction: The Chinese Olympic Stadium which will be used this summer. The event has already attracted huge controversy*

As their economic confidence grows, Asians are discovering pride in their own cultures and are less inclined to mimic Western ones. 

There is an infectious confidence in Bollywood, and the price of Chinese antiques is rocketing as the newly rich Chinese decide they want a slice of their history. Western culture, like the dollar, will soon find its heyday behind it. 

But Western attitudes will change as well, with a likely shift to the political Right. White liberal guilt, the driving force behind political correctness, will subside as Westerners feel threatened by the global order changing, and their supremacy slipping away. 

Anti-Americanism will disappear as Europeans realise how much better it was to have a world super power that was a democracy (however flawed) not a dictatorship. 

There is even speculation that the intense economic pressure on countries such as Britain will cause them to trim down their bloated welfare state, simply because it will no longer be affordable at present levels. 

Western attitudes of superiority to China and the rest of the East will also subside, as Westerners realise they are no longer the masters of the world. 

The U.S. company Orient Express complained when Tata tried to buy it, that any association with the Indian company would damage the Orient Express's premium brand. 

Responding, R K Krishna Kumar, a senior Tata executive, thundered that "Indian companies ... will take their rightful place in the international arena. 

"Enterprises and individuals must recognise and adapt to these fundamental economic changes. We believe that those with a fossilised frame of mind risk being marginalised." 

In a world in which we are no longer masters, it is a warning that we ignore at our peril.


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## Neo

Excellent read Happy Feet, thanks for posting.


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## Neo

*Chinas reserves hit $1.682trn​*
BEIJING, April 11: Chinas foreign exchange reserves, already the worlds largest, climbed to $1.682 trillion at the end of March, the central bank said on Friday.

The figure reflects a rise of 39.9 per cent from a year earlier, and a 10.1 per cent increase from the end of 2007, according to data posted on the Peoples Bank of Chinas website.

The fast forex growth came amid rising official concerns of a fresh surge in hot money inflows, spurred by a strengthening yuan and a widening spread between falling US interest rates and rising Chinese rates.

The forex reserves climbed $153.9 billion in the first quarter, more than double the amount of money that came into the country through the trade surplus and foreign direct investment during that period.

The likelihood of China being taken as a harbour by international capital, especially hot money, is increasing, Fridays Shanghai Securities News quoted Zhang Yutai, director of a key think tank under the cabinet, as saying.

It will further worsen the excess liquidity in the country and add pressure on the yuan to rise, said Zhang of the Development Research Centre of the State Council.AFP

Chinas reserves hit $1.682trn -DAWN - Business; April 12, 2008


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## lexislichan

but China also hv many problems in development .CPI increasing,real estate bulbing,stock market,environment protection,Taiwan issue etc.another thing:the world is not calm.not every nation treats China well.


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## Logic note

Exposed: China's red billionaire village 



> Exposed: China's red billionaire village
> By Poon Siu-tao
> 
> HONG KONG - China's Nanjie village, also known as the "red billionaire village", has been touted as the last stronghold of socialism amid the capitalist-style economic reforms that have swept the country over past three decades. Its huge success, with economic growth outpacing even the country's remarkable expansion over the period, has now been exposed as a fraud.
> 
> The village has become practically bankrupt, weighed down by 1.7 billion yuan (US$243 million) in net debts. It will take at least 200 years for the village to pay back the debts, according to Wen Wei Po, a pro-Beijing daily in Hong Kong. It is now clear that state coffers and state-owned banks have paid a dear price for setting up this model example of socialism.
> 
> With a population of little more than 3,000, Nanjie, in Lingyi
> 
> 
> 
> county of Henan province in central China, has been of special significance in the country's political life by persisting in following the so-called socialist road of the Mao Zedong era. Villagers still lead a collective life as they did decades ago, sing revolutionary songs and chant Mao slogans every day. The entrance to the village features gigantic statues of Marx, Engels, Lenin and Mao.
> 
> But there is a world of difference compared with an average Chinese village decades ago. All Nanjie villagers live in villas, own their private sedans and have deep pockets, attracting to the village the sobriquet of "red billionaire village", reflecting its combination of socialism with a market economy.
> 
> Nanjie somehow created its own "economic miracle", apparently against the tide of the country's sweeping market-oriented economic reforms, and maintained high-speed growth for more than 20 years.
> 
> Doubts about how it managed this are now being cleared up as more facts become known. This so-called socialist collective body started from scratch by running rural enterprises in the late 1980s. Their businesses began with brick manufacturing and flour processing, then extended to food processing and pharmacy.
> 
> There are now more than 20 enterprises collectively run by the village, employing more than 10,000 migrant workers - Nanjie villagers themselves do not really need to work. The village administration has taken care of everything for them, from clothing, food, housing to transport, from birth to death. Each village official has on average a monthly salary of a mere 250 yuan.
> 
> Nearly all villages across the country have run rural enterprises and exploit migrant workers. What has puzzled outsiders is how Nanjie maintained such strong growth while nearly all other rural enterprises have been gradually eliminated by market competition because of their poor management and low efficiency. It now turns out that Nanjie's secret weapon was "capital".
> 
> After 1989, (when pro-reform protests in Beijing's Tiananmen Square and elsewhere were suppressed), China's political winds turned to the "left". At that time, Nanjie happened to be upholding "the great banner of Comrade Mao Zedong" and sticking to the socialist road of "becoming rich collectively". This was noticed by a leader from the capital who appraised the village and under direct or indirect instructions, the Agricultural Bank of China became the ATM machine for Nanjie. By 1998, the amount of loans it granted to Nanjie were seven times those issued in 1991.
> 
> According to the Southern Metropolis News, Feng Shizheng, an associate professor in sociology with Renmin University in Beijing, who has researched bank loans to Nanjie, concluded: "Nanjie's high-speed economic growth relied on bank loans, not on its own [capital] accumulation." In Feng's view, Nanjie is a typical example of "high growth, low efficiency". Only with the support of huge bank loans could Nanjie's economic growth outpace the national average amid an economic efficiency that fell below the national average.
> 
> Thus the village's secret is very simple. Some person or persons, to demonstrate the correctness of Mao Zedong thought and to save what little that had been left by socialism, ignored risks to have banks lend large sums to Nanjie to set up and maintain this model example of socialism.
> 
> Once it became the model, the state had to throw in more capital to ensure the village continued to shine. However, the government leader who instigated the process has retired and the Agricultural Bank of China, undertaking a restructuring to become a joint-stock bank, can no longer issue loans solely on a political basis. As a result, Nanjie now finds it difficult to obtain low-interest loans. Not only that, it is under increasing pressures to repay what it has borrowed.
> 
> To reduce its debts, companies run by the village have in recent years turned to marketing a soybean seed in the name of Spaceflight II. They claimed that after the seeds were sent out into space their genes underwent a mutation that would increase their harvest by 30&#37;. Of course this was completely fictitious. Many farmers who bought the seeds lost their investment.
> 
> For Nanjie, it seems one misfortune comes out in the wake of another. When former village chief Wang Jinzhong died in May 2003, he was found to have kept in a vault in his office 20 million yuan in cash and several property ownership certificates under his own name, remarkable for an official with a monthly salary of 250 yuan. To make it worse, several women carrying babies came to his funeral service claiming to be his concubines and demanded shares in his legacy.
> 
> Disillusion with the Nanjie "myth" has cost the state coffers more than 1 billion yuan, while letting people become aware that any artificial distortion of market operations goes against economic laws and cannot last long.
> 
> Poon Siu-tao is a freelance writer for the Chinese edition of Asia Times Online.


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## Neo

*China to face 7.3m tonnes LPG shortfall by 2010​*
BEIJING: China will face a shortfall of 7.3 million tonnes in liquefied petroleum gas (LPG) supply by 2010 due to surging demand in the countryside and small and medium-sized cities, state media reported Monday.

According to the development plan of the countrys oil industry, domestic demand of LPG is forecast to hit 26.2 million tonnes in 2010, while supply is expected to stand at only 18.9 million tonnes, the Xinhua news agency said.

As domestic energy sources are drying up, China has been keen to explore resources overseas in areas such as in Africa and South America. afp

Daily Times - Leading News Resource of Pakistan


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## Neo

*Chinas inflation rises to near decade high​*
BEIJING: China's inflation in April rose to near decade-high levels despite official efforts to cool surging living costs ahead of the Beijing Olympics, according to data reported Monday. 

But some analysts suggested the government faced the possibility of more sharp price hikes. 

Underlying inflationary pressures remain undiminished, Goldman Sachs economists Yu Song and Hong Liang warned in a report. 

The government ordered banks to increase their reserves for a fourth time this year in a move meant to contain inflation by curbing lending, but it gave no indication whether it would boost interest rates. 

April's consumer prices rose by 8.5 percent over the same month last year, the National Bureau of Statistics reported. That was a rebound from March's 8.3 percent rate and below February's 8.7 percent _ the highest in 12 years. 

Premier Wen Jiabao has said taming inflation is Beijing's priority. The government said in March it hoped to hold price rises to 4.8 percent this year a target that looks increasingly unlikely. 

Inflation jumped in mid-2007 as China ran short of pork, grain and some other food items. The government has assured the public that the country has enough grain and is paying farmers to raise more pigs. But efforts to boost food supplies were disrupted by severe winter storms. 

April inflation was driven by a 22.1 percent jump in food prices, including 68.3 percent for pork over the same month last year, 46.6 percent for cooking oil and 13.6 percent for vegetables. 

Recent surges in global grain prices increase the risk that domestic grain prices may lead (to) another wave of food price inflation in the months to come, Lehman Brothers economist Mingchun Sun said in a report to clients. 

Beijing has imposed price controls on basic food items. But costs of energy and raw materials are rising, adding to pressure for producers to pass along higher prices to consumers. Producer prices, an indicator of future inflation, rose by 8.1 percent in April. 

Chinese families spend up to half their incomes on food, and rising prices, coupled with surging housing costs, are eroding income gains from an economy that expanded by 10.6 percent in the first quarter. 

There have been no reports of demonstrations like those in Bangladesh, Egypt and elsewhere over food prices. But bouts of high inflation in China in the 1980s and 1990s sparked protests _ a scenario that the government is eager to avoid happening again as it prepares for the Summer Olympics, meant to showcase China as a prosperous, stable society. 

In an effort to curb inflation, the government has hiked interest rates repeatedly and tried to shrink the amount of money available for lending by forcing banks to set aside more reserves. 

The latest order Monday by the central bank boosted the amount of deposits that banks must hold in reserve by 0.5 percentage points to 16.5 percent _ the highest level to date. 

But economists say Chinese bank deposits are growing so fast that such modest reserve increases have no direct impact on lending and are meant as a signal to bankers to reduce credit. Also Monday, customs data showed China's trade surplus fell by 1 percent in April. That could help to ease inflation pressure by reducing the amount of money flooding into the booming economy. 

China's global trade surplus fell to $16.8 billion amid weaker demand for Chinese goods, according to the Chinese customs agency. 

The trade surplus with Europe jumped by 34.8 percent to $12 billion while that with the United States saw much slower growth, rising by 4 percent to $13 billion. 

The growing Chinese trade gap with the 27-nation European Union has prompted the EU to join Washington in lobbying Beijing to ease currency controls and import barriers. 

The surge in exports to Europe is due in part to the rise in the euro against China's currency, the yuan, which makes Chinese goods more attractive to European consumers. The dollar, by contrast, has fallen against the yuan, making Chinese goods more expensive for Americans. ap

Daily Times - Leading News Resource of Pakistan


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## Neo

*China forex reserves hit $1.76 trillion ​* 
Tuesday, May 27, 2008

BEIJING: Chinas stockpile of foreign exchange reserves, already the largest in the world, increased a record $74.46 billion in April to $1.75666 trillion, a source familiar with the data told Reuters on Monday. 

The leap surpassed the previous monthly record of $61.6 billion set in January. It was more than three times greater than the $24.3 billion that flowed into China in April from the trade surplus and foreign direct investment a strong indication for many economists that speculative capital is still pouring into the country.

The source declined to be identified because he is not allowed to speak officially to the media. Chinas official foreign exchange reserves have now risen $228.5 billion in the first four months of the year compared with $461.9 billion in all of 2007.

Aprils surge almost half the first-quarter increase of $154 billion occurred even though the yuans CNYCFXS pace of appreciation slowed to a crawl last month, reducing the currencys short-term attraction to hot-money investors.

Economic policy makers at the highest reaches of the Chinese government have met periodically to examine the issue of hot money inflows, which complicate the Peoples Bank of Chinas (PBOC) task of managing the money supply.

The PBOC has to buy most of the dollars that flow into China in order to hold down the yuans exchange rate. The central bank then has to sterilise the impact on the money supply by mopping up the domestic currency it creates in the process.

Senior officials reached no firm conclusion at their most recent meeting, agreeing only to keep monitoring the problem, a second source said. Reserves in April grew by more than the combined inflows from Chinas trade surplus and FDI for the fourth month in a row. But not all economists pin the blame on speculative inflows.

Some say most of the sustained increase can be explained by valuation changes affecting non-dollar holdings, a growing stream of income earned on the reserves stockpile and an explosion of onshore dollar lending.

However, the volume of dollar loans dropped sharply in April, the central banks monthly money supply figures showed. The PBOC publishes the reserves data every quarter. The next figures are due in July. 

China forex reserves hit $1.76 trillion


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## Neo

*Chinas forex reserves hit $1.8 trillion ​*
SHANGHAI: Chinas foreign exchange reserves, by far the largest in the world, hit $1.80 trillion at the end of May, state media reported Friday.

The figure represents an increase of $40.3 billion for the month, down from $74.5 billion recorded in the previous month, the China Securities Journal reported. It said the main reason for the drop was due to a cut in the amount of speculative capital flowing into the country.

There was a significant change in May regarding capital inflow  the inflow of hot money dipped sharply, it said, citing Ding Zhijie, economist with Beijings University of International Business and Economics.

The foreign exchange regulators efforts to strengthen supervision of cross-border capital flows have started to bear fruit but a turnaround in the trend of international capital flowing into China is unlikely, Ding said.

State media reported last week that Chinas foreign exchange regulator had ordered banks to submit monthly data on non-resident domestic currency accounts in order to curb incoming speculative capital.

Speculative money is entering China as investors hope for gains from factors such as the continued strengthening of the yuan.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Chinas foreign debt rises to $392.6 billion​*
BEIJING: Chinas foreign debt rose five percent in the first quarter, with short-term debt, an indicator of capital inflows speculating on a stronger yuan, accounting for nearly all the increase. 

Overall foreign debt rose to $392.6 billion at the end of March from $373.6 billion at the end of 2007, the foreign exchange regulator said on Friday. 

Short-term debt accounted for $16.6 billion, or 88 percent, of the $18.97 billion increase. Total short-term debt reached $236.7 billion at the end of March, the State Administration of Foreign Exchange said. Medium- and long-term debt rose by $2.3 billion in the first quarter to $155.9 billion. 

Short-term debt accounted for 60.3 percent of Chinas total foreign debt at the end of March, the agency said, up from 58.9 percent at the end of December. 

Chinas short-term foreign debt was equivalent to just 14.1 percent of its $1.6822 trillion in foreign exchange reserves as of the end of March. Beijing has been trying to limit inflows of speculative money by curbing short-term foreign exchange borrowings.

Daily Times - Leading News Resource of Pakistan


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## Myth_buster_1

*China's economy to become world's biggest
Wednesday, 9 July 2008 11:17* 

China's economy will overtake that of the US by 2035 and be twice its size by mid-century, a new study by a US research organisation concludes.

The report, by economist Albert Keidel of the Carnegie Endowment for International Peace, said China's rapid growth is driven by domestic demand more than exports, which will be sustainable over the coming decades.

'China's economic performance clearly is no flash in the pan,' Keidel writes. 'Its growth this decade has averaged more than 10&#37; a year and is still going strong in the first half of 2008. Because its success in recent decades has not been export-led but driven by domestic demand, its rapid growth can continue well into the 21st century, unfettered by world market limitation.'
Advertisement

Keidel, who has worked as a World Bank economist and US Treasury official, said the rise of China to the world's biggest economy will happen regardless of the method of calculation.

Under current market-based estimates, China's gross domestic product is about $3 trillion compared to $14 trillion for the US. Based on purchasing power parity (PPP) measure used by the World Bank and others to correct low labour-cost distortions, he said China's GDP is roughly half of that of the US.

Keidel's calculations suggest that using the PPP method, China will catch up with the US as an economic power by 2020, with an equivalent GDP of $18 trillion. Based on the more commonly accepted market method, the turning point will come by 2035. By 2050, he estimated Chinese GDP at some $82 trillion compared with $44 trillion for the US.

However, the Chinese standard of living will remain lower - with per capita GDP in China between half and two-thirds the level of that in the US in 2050, according to the report. keidel said poverty will remain a significant problem in China for decades despite considerable progress.


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## Myth_buster_1

*BEIJING, June 7 (Xinhua) -- Passenger car sales in China in the first five months of 2008 rose 17.41 percent over the same period a year earlier, an industry group said on Friday.* 

According to the China Association of Automobile Manufacturers (CAAM), car sales reached 3.02 million units, including 2.23 million sedans, 179,200 sport-utility vehicles (SUV) and 93,200 multi-utility vehicles (MUV) in the period.

Sales of passenger cars, SUV, and MUV in May alone totaled 564,600, up 16 percent over the same month last year. The growth rate was quicker than April's 11 percent.

Auto sales in China were expected to exceed 10 million units this year, which would represent a full year sales growth of 14 percent, CAAM said.

Auto sales have maintained double-digit growth since the beginning of the year, in contrast to weakening sales in much of the world's other major auto markets.


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## Myth_buster_1

*BEIJING, July 13 (Xinhua) -- China's venture capital market was brisk in the second quarter of this year, with 159 enterprises obtaining such investment.*

According to a recent forum on venture capital and private equity investment in China, among the 159 enterprises, 143 have revealed the investment they required, involving 1.2 billion U.S. dollars in combined venture capital, up 31.4 percent and 73.5 percent respectively.

Of the total, expanding enterprises made up for 85 in number, or 53.5 percent. They involved 682 million U.S. dollars in venture capital, or 56.6 percent of the total. Another 26 were matured enterprises, with 373 million U.S. dollars in venture capital, accounting for 16.4 percent and 31.0 percent, respectively, of the total.

The IT sector accounted for 42.1 percent of the total enterprises that acquired venture capital, or 45.9 percent of the total investment, while traditional sectors made up 22.0 percent and 19.9 percent, respectively, of the total.


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## Neo

*Threads merged!*


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## Neo

*Chinese economy slows but still expands at double-digit pace​*
BEIJING: Chinas economic juggernaut slowed but still maintained double-digit growth in the first half of the year as it battled inflation and absorbed global setbacks, official data showed Thursday.

The worlds fourth biggest economy expanded by 10.4% in the first half and 10.1% in the second quarter, the National Bureau of Statistics said, down from the sizzling pace of 11.9% recorded for all of 2007. Bureau spokesman Li Xiaochao said domestic inflation, problems with food supplies and global economic woes were among the chief concerns for China.

Pressure for rapid price increases remains high, there are factors constraining steady agricultural production, Li said.

The international financial situation is severe and there are uncertainties in world economic development. Nevertheless, he said Chinas economy remained strong and that the slowdown was under control.

The national economy maintains the momentum of steady and fast growth, he said. This slowdown is in line with our expectations. NBS chief economist Yao Jingyuan said the economy would likely grow at 10% for the full year, although this was still above the target set by Premier Wen Jiabao of 8%.

China had already released data last week showing the nations trade surplus had fallen nearly 12% in the first half, as exporters struggled with the global economic slowdown, particularly problems in the United States. The appreciation of the yuan against the dollar, as well as curbs such as tariffs on exports imposed by the government to rein in the surplus, also contributed to the decline.

Jing Ulrich, chairman of China Equities for JPMorgan Securities, said that although the economy was slowing down and exporters were feeling the heat, the government had the tools to maintain control. Despite the multiple challenges of a global slowdown, high inflation and natural disasters, the Chinese authorities have a range of options for addressing the key domestic policy challenges, Ulrich said.

Economists said the earthquake that devastated large areas of southwest China in May, leaving 88,000 people dead or missing, did not have a big impact on the economic growth numbers in the second quarter. However, a huge post-quake reconstruction effort could lift the growth numbers in the short term, according to Moodys Economy.com expert Sherman Chan. Rapid and large-scale reconstruction works in the next couple of years will provide a boost to economic activity, he said. Industrial output, a key measure of activities in the nations factories, expanded by 16.3% in the first half and 16% for June alone, according to the bureau.

Chinas fixed asset investments rose 26.3% in the first half of 2008 from a year earlier, the bureau said.

Chinas retail sales up 21.4% in first half: Chinas retail sales rose 21.4% in the first half of 2008 from a year earlier, the National Bureau of Statistics said Thursday.

Retail sales of consumer goods reached $748 billion in the first six months of the year, the bureau said in a statement.

The growth was 6 percentage points higher than in the same period last year, according to the bureau.

The rise coincided with a 7.9% increase in inflation during the first half of 2008. Retail sales for June alone were up 23%, according to the bureau.

Retail sales are the main gauge for consumer spending in the worlds fourth-largest economy. afp

Daily Times - Leading News Resource of Pakistan


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## Neo

*China June inflation falls to 7.1 percent​*
BEIJING: Chinas inflation rate fell to 7.1% in June but is still fairly high and the country faces pressure for more price rises due to high costs for energy, grain and industrial materials, the government said Thursday.

We are still facing pressure for more price rises, a spokesman for the National Statistics Bureau, Li Xiaochao, said at a news conference. He gave no indication that Beijing considered the problem under control or whether it might impose drastic measures.

The June rise in consumer prices over the same period of 2007 was down sharply from Mays 7.7% rate and Aprils 8.5% rise. It came after months of government efforts to cool inflation by paying subsidies to increase food supplies and imposing price controls on food, fuel and other basic goods.

The communist government worries about the impact of fast-rising prices on Chinas poor majority, who spend up to half their incomes on food. Bouts of high inflation in the 1980s and 90s sparked protests, a scenario the government is anxious to avoid ahead of the Beijing Olympics in August, which it hopes will showcase China as stable and prosperous. The government gave no June figure for food prices, but said they rose 20.4% in the first half over the year-earlier period. JPMorgan estimated Junes food price rise at 17.5%, compared with 19.9% in May.

Chinas main planning agency, the National Development and Reform Council, said inflation in housing prices, another key government concern, slowed slightly in June but that costs in 70 major cities still were up 8.2 over the year-earlier period. Chinese leaders want to maintain high growth to reduce poverty but are trying to squelch a boom in bank lending and construction. They worry that runaway investment could ignite a debt crisis or fuel pressure for higher inflation. ap

Daily Times - Leading News Resource of Pakistan


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## Neo

*China shifting focus from inflation to growth: analysts​*
BEIJING: Recent statements from Chinese President Hu Jintao and other senior leaders suggest a subtle shift in policy focus away from inflation control and towards growth creation, analysts said Monday.

The new thinking at the elite decision-making levels in Beijing comes amid an expanding body of evidence that growth in the worlds fourth-largest economy is still hot, but not too hot.

China has basically reached its earlier target of preventing overheating, said Li Huiyong, a Shanghai-based economist with Shenyin Wanguo Securities.

So the policies that were designed previously will be shifted towards stabilising the economy and ensuring faster growth, he said.

The Communist Partys politburo, the two- people who finally make most policy decisions in China, met last week for a gathering chaired by Hu and then issued a statement spelling out their new concerns.

Challenges and difficulties are growing for maintaining fast and stable economic growth, due to rising international uncertainties and problems in the domestic economy, Xinhua news agency said, paraphrasing participants.

In separate gatherings with provincial leaders and economists, Premier Wen Jiabao also called for an emphasis on long-term growth. The country should make efforts to secure steady and comparatively fast economic growth, Wen was quoted as saying on the Chinese governments website.

He said this was a task not only for this year but also for the next few years. The stuttering US economy was a main factor behind a 12% drop in Chinas trade surplus in the first half of the year.

This in turn contributed to a slowdown in economic growth in China to 10.4% in the first half of 2008 from 11.9% for all of 2007.

At the same time, inflation now seems a less urgent priority than just a few months back.

Growth in the consumer price index peaked at 8.7% in February, nearly a 12-year high, but softened to a more manageable 7.1% in June. While the government still puts combating inflation at a significant place of its policy agenda, the task is no longer at the top place, said Sun Mingchun, a Hong Kong-based analyst with Lehman Brothers.

This change clearly reflects a shift of policy bias from inflation to growth, although the balance seems only slightly more weighted toward growth at the time being, he said in a research note. While Chinas leaders have identified new policy priorities, they may find it harder to design concrete measures to reach their objectives, economists said. afp

Daily Times - Leading News Resource of Pakistan


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## Neo

*China industrial output growth eases​*
BEIJING: Growth in Chinas industrial output eased to 14.7 percent in July from a year earlier, taking a hit from weakening exports, the National Bureau of Statistics said on Thursday.

The figure marked a slowdown from 16 percent growth in June and 18 percent in July of last year, according to previously published data.

The deceleration in export growth was the main reason for the slowdown in industrial output, the bureau said.

It said export growth in July was 26.9 percent, compared with a more robust 34.2 percent in July of last year.

A reduction in external demand brought about by the slowdown in the global economy and the strengthening of the Chinese currency were among key factors in causing export growth to weaken, it said.

A rise in enterprise production costs have also impacted industrial output.

In particular, it said, the prices of crude oil and iron ore had spilled over into higher costs for local companies.

In the first seven months of the year, industrial output expanded 16.1 percent from the same period in 2007. afp


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## Neo

*'China's inflation to continue to ease'​*
SHANGHAI: China's consumer inflation is expected to continue to slow in the rest of this year and in 2009 as global commodity prices ease, Chinese state media reported Thursday. The growth in the consumer price index (CPI) -- the main gauge of inflation -- is expected to be below six percent in 2009, the 21st Century Business Herald reported, citing He Keng, an official with China's parliament. He, vice director of the financial committee of the National People's Congress, told the newspaper in an interview an economic slowdown, rather than inflation, should now be a bigger concern for Beijing. "Crude oil prices are falling and I believe iron ore prices will also decline in the near future... CPI growth is likely to continue to decelerate," he said. "The risk of further economic slowdown, rather than increase of prices, deserves more attention," he said. China's economy has slowed, growing 10.4 percent in the first half of the year compared with the 11.9 percent recorded for all of 2007. afp


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## Neo

*China lays path to power in Central Asia ​* 
Sunday, August 31, 2008

MAIKHURA, Tajikistan: In this dusty village surrounded by craggy mountains, Chinese builders are hard at work on a new road, one of many projects paving the way to Chinas growing influence in Central Asia.

Dressed in blue overalls and orange helmets, the scores of laborers load sacks of cement on excavators, ferry rocks down steep mountain slopes with cables and put finishing touches to a reinforced concrete tunnel.

Im pleased China is doing this project, said Zhang, as Chinese vans streamed past on the new road, carrying elderly Tajik men in Muslim skullcaps and women in bright veils through the arid mountain terrain. The road through Tajikistan is part of a growing catalogue of Chinese investment projects in Central Asia that are changing the geopolitical face of this strategic, resource-rich region, once dominated by Moscow.

Road building in Tajikistan is part of Chinas plan to open up markets in Central Asia and get access to hydrocarbons. Thats Chinas main interest, said Saimuddin Dustov, an independent Tajik political analyst.

China has major influence over the politics and economics of these countries but it doesnt advertise it, unlike the others. Its a quiet policy of working against US and Russian interests, Dustov said.

The planned 354-kilometre (220-mile) road will link the Tajik capital of Dushanbe with the town of Chanak on the Tajik-Uzbek border, a vital route for trade in the impoverished region. An AFP reporter visited the construction site at Maikhura, some 60 kilometres (37 miles) north of Dushanbe, the same week that Chinese President Hu Jintao arrived on an official visit to cement Sino-Tajik economic plans.

We are developing projects in electricity and roads. In the future, we want to invest in agriculture, light industry, telecoms, mining and infrastructure, Hu said after meeting Tajik President Emomali Rakhmon on Wednesday. The Tajik leader referred to China as a a big friend for his country.

Construction of the new road is being financed with $296 million of credit from China. China is also building power lines in Tajikistan and the country has already become a significant importer of a range of Chinese goods, from cosmetics to cars.

We import everything from China, said an official from Tajikistans economic ministry. Trade turnover with China in the first six months of 2008 was 164 million dollars 160 per cent more than for the same period last year.

Large billboards erected for Hus visit around Dushanbe read: Welcome to Tajikistan, Dear Chinese Friends! and The Peoples Republic of China is Our Close Friend, Our Dear Neighbour and Our Reliable Partner!

No such signs could be seen for Russian President Dmitry Medvedev, who was also in the city for a summit meeting of the Shanghai Cooperation Organisation, a regional security grouping of China, Russia and four Central Asian countries.

Russia has no clear policy on Central Asia and that opens the way for China, said Dustov, adding that China had invested one billion dollars in Tajikistan since the early 1990s far more than any other country. Reflecting the struggle for influence in Central Asia, road infrastructure in Tajikistan is also being built up by Iran and the United States, which financed a new bridge on the countrys southern border with Afghanistan.

Russia, which has had troops based in Tajikistan since Soviet times, is also trying to regain some of its economic influence. Russian companies are bidding for projects in Tajikistans hydroelectric power and aluminium industries. Chinas growing dominance in the region does not make conditions any easier for Shi Weili, 25, a Chinese-Tajik interpreter who has lived in Maikhura for the past two years translating between local inhabitants and Chinese workers.


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## sunny_aus

*China to build world's fastest rail link*


BEIJING: *China plans to build the world's fastest rail line linking its capital Beijing with financial capital Shanghai, which will cut the journey time to four hours as compared to current 10-12 hours.* 

New technology will enable trains to travel at 380 km an hour to cover 1,318-km stretch between the two important cities, 30 km per hour more than the current generation of bullet trains. Previously these trains had been planned to run at 350 kilometres an hour, a state media reported today. 

"The quickest trains can currently travel between Beijing and Shanghai is 10 hours. It is possible that we can start to manufacture 380 km/h trains in two years' time and put them into service on the Beijing-Shanghai high speed railway," China Daily newspaper reported today quoting Zhang Shuguang, the Ministry of Railways' deputy chief engineer, as saying. 

Construction has begun on the new rail line in April and is expected to become operational by 2012. The line is part of China's ambitious plans to build more than 12,000 km of high speed railway to connect its major urban centers. 

The new line will be the longest high-speed railway to be built in one go in the world, the report said. 

Last month China opened a high speed line linking Beijing and the eastern port city of Tianjin, which has reduced the journey time between the two places to just half an hour. 


China to build world's fastest rail link- International Business-News-The Economic Times


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## sunny_aus

*China to launch third manned space flight in September*


HONG KONG: China has brought forward the launch date of its third manned space flight to late September, a report said on Tuesday. 

The launch of Shenzhou VII is now expected to take place between September 17 -- the end of the Beijing Paralympics and China's National Day on October 1, Hong Kong newspaper Wen Wei Po said, citing unnamed sources. 

The period offered the best launch window for Shenzhou VII, the source told the Chinese-language newspaper, without giving any more details. 

The mission will blast off from China's Jiuquan launch centre in northwest Gansu province and land in northern Inner Mongolia province, Wen Wei Po said. 

The launch schedule has been changed several times, with previous Chinese state media reports suggesting October or November launch. 

Three "taikonauts" or astronauts will be on board the flight, with one of them conducting China's first space walk, China's official Xinhua news agency said in an earlier report, quoting a spokesman for the mission. 

China successfully launched its first man, Yang Liwei, into orbit in 2003, making it the third country after the former Soviet Union and the United States to put a man in space. 

It sent two more astronauts into orbit in 2005 on a five-day mission. 


China to launch third manned space flight in September-China-World-The Times of India


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## gpit

News confirmed by CCTV. It will be launched between 9/25 - 9/30.


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## Marshal

*China's trade surplus falls 6.2 pct in Jan-August: Xinhua*

10 Sep, 2008, 0835 hrs IST, AGENCIES

BEIJING: China's trade surplus fell 6.2 percent in the first eight months of 2008 compared with a year ago to 152.0 billion dollars, the official Xinhua news agency said Wednesday, citing the customs bureau. 

China's trade surplus falls 6.2 pct in Jan-August: Xinhua- International Business-News-The Economic Times


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## Neo

*China August trade surplus at record $28.7 billion high​*
BEIJING: China said Wednesday its trade surplus hit a monthly all-time high of 28.7 billion dollars in August, but economists doubted this would push Beijing to allow any major rise in its currency.

The August surplus, beating a previous record of $27.1 billion in October last year, was caused by an abrupt slowdown in imports rather than any particular pickup in exports, they argued.

"Import growth declined rather steeply while exports posted just normal growth," said Feng Yuming, a Shanghai-based economist with Oriental Securities.

China's exports last month increased 21.1 percent from a year earlier to $134.9 billion, according to customs data. In July, exports had increased 26.9 percent.

Meanwhile, August imports were up 23.1 percent to 106.2 billion dollars, customs said, marking a steep decline from 33.7 percent growth the month before.

"Soft imports growth and the reacceleration and pickup in trade surplus growth in August could be an indication of weakening domestic demand, induced by the credit tightening which began nearly a year ago," Goldman Sachs said in a research note.

Signals of a domestic slowdown, among these a drop in inflation to 4.9 percent in August, coincide with a renewed emphasis among policy-makers on the need to create more economic growth.

Among factors behind the slowing imports, economists pointed out that falling international prices of raw materials also helped push down the price importers have to pay.

Even so, headline figures suggesting a ballooning Chinese trade surplus could reignite the debate over whether China is keeping its currency, the yuan, artificially low to give its exporters an unfair advantage.

While the yuan has risen sharply against the euro since early August, it has hardly moved against the US dollar in recent months.

However local economists said there was not much of a case for a drastic readjustment of the yuan's value.

"Exports are not particularly strong, and the yuan will not come under big appreciation pressure simply because of the August trade figures," said Xing Ziqiang, a Beijing-based economist at China International Capital Corporation.

"Actually, as export growth slows down further, the room for appreciation will shrink," he said, adding the yuan would probably rise by another one percent against the dollar for the rest of the year.

Other economists predicted the yuan might not move at all against the American currency for the remainder of the year.

"The dollar is getting stronger, and one monthly figure cannot have a major impact on the currency rate, especially since export growth is likely to go down further," said Feng of Oriental Securities.

Stephen Green, a Shanghai-based economist with Standard Chartered, also argued that brisk export growth was unlikely to last.

"The golden times are certainly over, and many firms are suffering, but from a macro-perspective it is still remarkable that real export growth has stabilised over the summer," he said.

Adjusting for inflation and exchange rate movements, China's exporters still produced 10 percent more during the summer months than a year earlier, he said.

"As Europe now slows, though, the biggest destination for exports, this will change in the last few months of the year. This may well be the lull before the storm."

In the first eight months of the year, China's trade surplus was $152 billion, down 6.2 percent from the same period of 2007. afp


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## Neo

*China industry output slows sharply​*
BEIJING: China's industrial output growth slowed to a six-year low of less than 13 percent in the year to August from July's reading of 14.7 percent, HSBC and a government researcher said on Wednesday. The figures are due for release on Friday. Economists polled by Reuters had expected growth of 14.5 percent. Temporary factory closures to help improve Beijing's air quality during the Olympics were partly responsible for reducing output growth to below 13 percent, HSBC economist Qu Hongbin said in a note to clients. The report did not say where the information came from. 

A government researcher, who declined to be identified, put the figure at 12.8 percent. That would be the slowest growth rate since Aug. 2002, excluding the months of January and February, when factory closures for the Lunar New Year make output statistics volatile. Two other sources at banks in China said the growth rate was around 13 percent. Retail sales figures for August will also be released on Friday. The government researcher said they were likely to show growth of 23.2 percent in the year to August, down from July's reading of 23.3 percent but beating forecasts of 23 percent. One of the bank sources also said the increase would exceed 23 percent, while Qu at HSBC said retail sales in real terms, deflated by the retail price index, were still strong and growing at a pace of more than 15 percent. 

Qu said the risk of a sharp economic slowdown in China was still limited. "Growth is indeed slowing, but only gradually," he wrote. GDP was still likely to expand at a 9.5 percent rate in the second half of the year. "As a result, we believe that there is no real need for Beijing to ease the policy tightening to support growth, at least in the near term," Qu said.


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## gpit

*Coca Cola in China antitrust case* 

China's competition watchdog says it will enforce anti-monopoly rules in reviewing Coca Cola's bid to buy Chinese juice company Huiyan. 

US drinks giant Coca Cola is attempting to swallow the Chinese firm in a $2.5bn (£1.4bn) bid. 

The move will be closely watched as it is the first such case filed under the country's new antitrust laws. 

Last week's bid sparked anger in China over the possible sale of a national champion to an overseas firm. 

Drinks giant Coca Cola is keen to increase its presence in the country's fast growing drinks market. 

For this reason, it agreed to pay 12.20 Hong Kong dollars per share - about three times the firm's closing price last Friday - for the firm. 

Huiyan had a 44% market share by sales value in China's pure juice sector and 42% of the nectar sector in the first half of 2008, according to data from research firm AC Nielsen. 

Huiyan said that Coca Cola was in the process of preparing the documents to send to Beijing competition authorities. 

"We are prepared to accept the decision of the Ministry of Commerce one way or the other," said Matthew Mouw, Huiyan's vice president for strategic development. 



BBC NEWS | Business | Coca Cola in China antitrust case


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## Neo

*China growth poised to slowdown, heading into 2009​*
BEIJING: Stiffening headwinds from the global financial crisis will drag Chinese economic growth down into single digits this year for the first time since 2002, a Reuters poll shows. The hit to Chinese exports from weakening demand in the main industrial economies comes on top of a slowdown in the property sector due to tight credit and difficulties facing industry from rising labour and energy costs. 

Forecasts of economists polled by Reuters last week centred on gross domestic product growth of 9.9 percent this year  down a notch from 10.0 percent in the two previous quarterly polls  and 9.0 percent in 2009. The Chinese economy is slowing. But China will not follow the US and much of Europe into the economic abyss, said Andy Rothman, a CLSA economist in Shanghai. Overall, the impact of the export slowdown on the domestic economy will not be severe. reuters


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## Neo

*Hong Kong 2008 economic growth forecast cut to 4.4%​*
HONG KONG: Hong Kongs economic outlook has worsened in the past few months, as exports and consumption have slowed, and turbulence in financial markets threatens to exacerbate an economic slowdown, a Reuters quarterly poll shows. That has prompted analysts to cut their GDP growth forecast for 2008 to 4.4 percent, according to the median estimate of 10 economists, from 5 percent in a similar poll in July and well below average annual growth of 7.3 percent over the past four years. 

The territory continues to benefit from Chinas economic boom, which has boosted tourism, demand for financial services and trade through Hong Kong. But Chinas economy is slowing even though it remains strong while demand from the United States for goods from Hong Kong is declining. Data last week showed exports from Hong Kong grew just 1.9 percent in August from a year earlier.


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## gpit

*China can withstand financial crisis: Wen*

BEIJING (AFP) - China's economy is strong enough to withstand the impact of the global financial crisis and may even help the world by maintaining fast growth, Premier Wen Jiabao was quoted as saying Sunday.

"Our economic fundamentals haven't changed, and the economy is moving in the direction we expected," Wen was quoted as saying by the state-controlled Xinhua news agency. 

"The strength of our financial institutions has generally increased, and their ability to make money and withstand risk has risen. Market liquidity is ample and the financial system is stable and safe," he said. 

"This will help us withstand any negative external impact. We're full of confidence in the development of the economy, and in the stability of the financial system." 

Wen, who made the remarks during an inspection tour to south China's Guangxi Zhuang region, said the best way his nation could help would be by ensuring fast economic growth at home. 

"If a large country of 1.3 billion people can keep up stable and relatively fast economic growth, that's a big contribution to the world," he said, according to Xinhua.


China can withstand financial crisis: Wen - Business - eNews.ma


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## Neo

*UBS lowers China 2009 GDP growth forecast to 8%​*
BEIJING: UBS on Monday lowered its forecast for Chinas gross domestic product growth in 2009 to 8% from 8.8%, citing a much weaker global growth outlook and forecasts of a deeper and longer US recession. It is the second time in less than three months that UBS has lowered its forecast for Chinese GDP growth next year. The banks China economist, Tao Wang, also lowered her forecast for GDP growth this year to 9.6 percent from 10 percent. We expect growth of exports and real estate investments to slow significantly in the coming months, but think that the governments counter-cyclical fiscal and monetary policy measures could help stimulate domestic demand and partially offset the negative external shock, Wang said in a report.


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## su-47

crap! the effects of US recession are already showing. China's growth was forecast to be above 10&#37; for 2008, before the crisis started. i'm sure india is facing a similar decrease in growth rate.

i think pulling US troops out of Iraq itself will put US economy back on track.


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## kallu_be

su-47 said:


> crap! the effects of US recession are already showing. China's growth was forecast to be above 10&#37; for 2008, before the crisis started. i'm sure india is facing a similar decrease in growth rate.
> 
> i think pulling US troops out of Iraq itself will put US economy back on track.



The effects on India due to US recession is much lesser than it is on China. China's growth is mainly due to its exports to US and EU, as US and EU are going to tighten the economy for atleast next 2-3 years the growth of chinese exports are going to reduce or even recess in the worst conditions. Where as Indian economy growth is due to increase in domestic consumption and so the effect will be much lesser. Infact i was thinking there will increase in shifting of jobs to India (mainly technical) by american companies as there is an enoromous pressure on them to show the growth in profits for their investors. I was doing my post graduation in top university in India and i am seeing lot of new american and japanese companies coming for Preplacement talks this year.


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## pkpatriotic

*ADB to provide $116.9 m loan to China*
*Wednesday, October 08, 2008* 

*BEIJING: Asian Development Bank (ADB) will provide a loan of $116.9 million to stop wastage of energy and its better utilization in China.*

This has been said in an announcement issued from the ADB Beijing that a limited guarantee would be given to the programme for saving of energy and better utilization through the proposed amount.

The project will promote the construction of green buildings in China.

The Standard Chartered Bank has been selected as the first financial institution and the Johnson Control as the first technology company for investment in the project.

China is the second biggest country in the world to utilize energy and 20 to 40 per cent electricity is wasted here.


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## pkpatriotic

*China's economy | Slower boat from China*
*Oct 20th 2008 | GUANGZHOU*

*Growth slows in China, as the global economic slump takes its toll*

PERHAPS it should not be considered surprising. On Monday October 20th Chinas National Bureau of Statistics announced that economic growth in the third quarter was *9% year-on-year*, heady by American or European standards, but down from *10.1%* in the previous three months (which itself was lower than the quarter before that), and the worst overall since early 2003. Consensus predictions had been for a more modest decline amid fading hope that Chinas economy was fundamentally decoupled from the West. It is now becoming necessary, on a near daily basis, to re-evaluate just how much independence its economy enjoys.

It is growing harder to say that China is relatively immune from global financial and economic problems. This month alone, two big companies, Smart Union Group, a toymaker, and FerroChina, a steel producer, have gone into liquidation. For the rare company whose closing receives publicity, thousands, if not tens of thousands, shut without a sound. Early this year, southern China suffered from shortages of workers and shoe factories were discouraging orders of boots or any other product that required lots of work and materials. All of that has now reversed. There is a surplus of workers and an absence of orders, with no sign of any recovery.

One of the most important events in the sales calendar for China is the historic Canton Trade Fair, which brings together a vast number of the countrys manufacturers with swarms of buyers from around the world. The first part of the autumn session ended on October 19th and there was little happy news to report. In a good year hotels will double rates and turn away guests. This time around, rates were high but rooms were abundant. The fair itself was far from empty but the crowds, by usual standards, were thin, with a notable absence of Americans and Europeans, and many complaints about a lack of orders. A year ago sellers demanded escalation clauses in their contracts because of rising commodity prices. This time a buyer from an Oman construction-materials company said that he was receiving a similar benefit from any price decline, and prices, he added, were falling much faster now than they had been rising then.

Chinas slowing cannot, however, be blamed on exports alone. There were warning signs all over the place, says Stephen Green, an economist at Standard Chartered, pointing to investment, consumption (despite a nominal, year-on-year rise in retail sales in September of 23%) and government spending. Sales of cars, clothing, air tickets and property have all fallen; production of steel has declined too. A bit, but only a bit, of this could be attributed to planned shut-downs at the time of the Olympics.

If there is any cause for optimism it is that some of the drag was the result of the governments own efforts in the past yeara different era, in hindsightto prevent overheating. In this, there is some hope. Chinas financial position is not perfect, as non-performing loans are rising and some city banks are suspected of having problems, but there appears to be substantial room to relax fiscal and monetary policies. Inflation is declining. The big national banks appear to be in good condition, with abundant liquidity because of lending caps that have become increasingly stringent over the past two years. Chinas government is in a strong financial position. Savings rates for the Chinese are high.

As a result, there is abundant room for more aggressive fiscal policies, continuanceif not expansionof credit, and domestic growth in consumption. Rumours of the potential government response are widespread. Export-targeted tax rebates that were repealed last year will be resumed. Also in the pipeline is the removal of transaction fees on sales of property. Bigger government spending on water and transport projects is also expected. All this should stimulate demand, if not immediately. Collectively, these actions should mitigate some of the impact of the global downturn, but mitigate is not the same as offset. If the global panic has done nothing else, it has been brilliant at revealing the collective dependency of even the fastest developing economy on the developed worlds prosperity.


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## Neo

*China set for reasonably high growth in 2009: WB​*
TOKYO: The Chinese economy is expected to see slower but still reasonably high growth of about eight to nine percent next year, the World Banks chief economist predicted Monday. Chinas economy is expected to grow by about nine to 10 percent this year as the authorities take steps to stimulate the economy, Justin Yifu Lin said at a seminar here. Lin said China and other developing countries may have to lower borrowing costs to spur economic growth in the face of a global credit crunch. With falling commodity prices set to dampen inflation, one possibility is to use monetary policy to prop up growth, he said. afp


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## Neo

*China to shed millions of jobs​*
DONGGUAN, Oct 24: At least 2.7 million factory workers in southern China could lose their jobs as the global economic crisis hits demand for electronics, toys and clothes, according to industry estimates.

The region has seen massive export-driven expansion in recent years by supplying the world with cheap consumer goods, but rising production costs and falling US and European demand have marked a swift end to the boom.

Now 9,000 of the 45,000 factories in the cities of Guangzhou, Dongguan, and Shenzhen are expected to close before the Chinese New Year in late January, the Dongguan City Association of Enterprises with Foreign Investment estimates.

By then, the association expects overseas demand for products from the three manufacturing hubs to have shrunk by 30 per cent, as the knock-on effects of the US housing market collapse and credit crunch filter down to Chinese workers.

I am afraid it is not going to look good on the Chinese government if the decline of the export-led industries and the unemployment problem continue to worsen, Eddie Leung, the associations president told AFP.

Leung, also a member of the Chinese Manufacturers Association, said the estimate of 2.7 million job losses was conservative, given that many of the larger factories in Guangdong province employ thousands of workers.

One of them, Hong Kong-listed Smart Union, a major toy manufacturer in Dongguan supplying US giants Mattel and Disney, closed its doors last week, leaving 7,000 workers out of work and with several weeks of back pay owed.

Clement Chan, chairman of the Federation of Hong Kong Industries, said a quarter of the 70,000 Hong Kong-owned companies in southern China, 17,500 businesses, could go to the wall by the end of January.

Describing the likelihood as a worst case scenario, he said Hong Kong firms in the region employed a total of 10 million workers, but did not want to speculate on the extent of possible job losses.

While small and medium-sized factories are especially prone, the threat of lay offs looms just as large over the regions manufacturing giants, further squeezed by the appreciation of the yuan.

Harry Tos Mansfield Manufacturing is a classic example of the spectacular growth in Chinas industrial heartland over the last three decades.

Started a metal business from a small room in Hong Kong in 1975, in 1991, he joined hundreds of other Hong Kong entrepreneurs moving their production across the border into China to take advantage of cheap labour and land.

He now employs 8,500 workers in 11 factories in China and Europe. His six factories in Dongguan cover 140,000 square meters (1.5 million square feet).

Tos company, which is now a subsidiary of Singapore-listed InnoTek Ltd supplies metal components for cars, plasma televisions, printers and other electrical appliances to Japanese brands including Canon, Toshiba, Epson, Minolta and Fuji-Xerox.

Business for the company, among the largest in its field in China, has grown by 40 per cent annually in recent years, but with credit being harder to come by, no manufacturer is safe, he said.

With banks being so tight on their lending policies now, bringing down a factory overnight has now become very easy.

All his expansion plans have had to be put on hold.

Some of our long-time Japanese and European clients have asked us to stop producing for them in the next two to three weeks, he said.

They said they did not want to have too much stock piled up in their warehouse as demand continues to dwindle.

To recently started building a new 70,000 square metre factory in Dongguan and was planning to hire 2,000 more workers later this year. But now, all work on the unfinished factory has stopped until more orders roll in.

No one would expand their business when the prospects for the entire manufacturing industry look so grim, he said.

Instead of hiring more workers, To is looking at cutting 1,000 employees across his operations.

But far from being downhearted, he is shifting part of the companys export-led production to developing energy-saving electrical appliances for the domestic market, which he sees as weathering the current financial turmoil.

In the long run, I am confident that mainland Chinese consumers purchasing power will keep rising as their Western counterparts continue to lose out.AFP


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## pkpatriotic

*China's land reform aims to revolutionize 750 million lives *
*Beijing hopes the policy will improve farming and free peasants to seek a better livelihood.*

*By Peter Ford *
*October 27, 2008 *

*Mijian, China - Zhang Xiaosui is the very model of a modern Chinese peasant. *

Farming a field 10 times larger than any of his neighbors' in this scruffy village in central China, he is on the front lines of a new government drive to transform Chinese agriculture, and with it the lives of 750 million country dwellers. 

If the land reform announced last week works as officials hope it will, many peasants will emulate Mr. Zhang's effort to turn family plots into a modern farm, and help bang one of the last nails into the coffin of Mao Zedong's collectivist dream. 

*"I wanted to farm more land before, but I didn't have the opportunity," *Zhang says, sitting in his comfortably appointed front room. *"Now I can, because the government is starting to support my idea." *

In what the official news agency Xinhua called a *"landmark policy document," *the ruling Communist Party's Central Committee agreed last weekend to allow small farmers to sell their right to till the land. The plan is designed to consolidate landholdings, encourage uneconomic farmers to seek other employment, and boost rural incomes. 

The decision did not privatize agricultural land, which remains collective property. But *"it marks a huge improvement in tenure security for farmers and contains many, many good points,"* says Li Ping, a lawyer with the Seattle-based Rural Development Institute, which advocates wider land rights for peasants. *"This new policy is really, really good." *

President Hu Jintao has made improvements in rural living standards a key goal of his administration. The new reform comes a symbolic 30 years after the radical changes that Deng Xiaoping introduced, breaking up Soviet-style collective farms so that peasants could do as they liked with the plots they were allocated. 

That is widely credited with kick-starting the economic reforms that have driven China's extraordinary economic growth over the past three decades. Peasant farmers, however, have not enjoyed the fruits of that growth anything like as much as their cousins in the cities: The urban-rural income gap is now more than 3 to 1. 

Under the current system, village committees divide village land equally between residents who hold 30-year leases free of charge, and who can grow what they like and sell their harvests wherever they want. 

*This boosted productivity and incomes when it was first introduced, but 30 years later the system is beset by inefficiencies and waste. At the same time, 120 million peasants who have headed to the cities in search of work as migrant laborers no longer use their land to its full potential.* 

In recent years, many of those migrants have begun informally leasing their land-use rights to relatives and neighbors, a trend that the authorities tolerated. *"We sincerely respect the creativity of peasants" *says Zheng Jiandong, head of the economics department of the local Agricultural Administration that has been supervising land reform experiments in this district in Henan Province for the past 18 months. 

*"But disagreements can easily arise" *from informal deals, he adds, *"and that has a bad impact on social stability, so the government has stepped in." *

Building on experiments around the country, like the one Mr. Zheng is supervising, the new decision sets a policy framework to *"establish and improve a market for the transfer of land-use rights ... and allow farmers to transfer their rights by subcontracting, leasing, swapping, or using them to form a joint-stock company." *

*"This decision indicates that the government really wants to encourage the commercialization of scale agriculture," *says Sally Sargeson, an expert in Chinese rural affairs at Australian National University in Canberra. 

Zhang hopes to profit from the government's intentions after taking advantage of an experimental reform here. Last month he saw a notice at the village hall announcing the auction of rights to farm a 6-1/2-acre plot of village land on which 20 special short-term leases were about to expire. 

A week later, he says, he won the public auction (the first of its kind in China) and paid two years' rent money as a down payment for an eight-year lease on the field. Within days, he planted it with wheat. 

*"I will earn more money farming if I can buy more land,"* Zhang says. *"But I'm only interested in large plots. Farming on a big scale will be more efficient." *

Many of his neighbors want to sell their land-use rights, says Zhang, because the profits from their family plots are so small. *"They can save their energy to do other things,"* he adds, *"like set up a small business or go into transport. Or they can go and work in the city and not have to worry about coming back to plant and harvest." *

In the nearby village of Xiwan all 2,097 households leased their land-use rights to a company set up by the village committee and four local farmers. They were willing to do so, says Tian Baozhu, deputy village director, because *"profits from traditional crops are so low and the economy here is well developed. There are jobs to be had, people don't live by agriculture here anymore." *

*"Xiwan is a special case," *however, acknowledges Zheng, not least because an average family farmed only a tenth of an acre. *"The situation there is ideal for land transfers." *Elsewhere in his district, he says, where families have more land to farm and other jobs are scarce, *"fewer people are transferring less land." *
That makes it unclear how widely applicable the new system will be in other parts of China. *"There are vast areas where lots of peasants are farming semisubsistence, and there is no demand for tiny plots of not very fertile land from agribusiness or anyone else,"* points out Dr. Sargeson. 

Even where authorities judge the conditions to be ripe, they have taken only tentative steps. In the Qinyang district, for example, where Zheng works, farmers may transfer their land-use rights only to people from their own or neighboring villages, which rules out the creation of large agribusiness enterprises. So far 7.6 percent of the area's arable land has been transferred, Zheng says. 

Nor is Zheng keen to see transfers of thousands of acres. *"If tens of thousands of people have no farming jobs anymore and they move to the city and don't find a job there, what could they do?" *he worries. 

Such fears appear to be behind the government's reluctance to privatize agricultural land, or even to allow farmers to mortgage their land-use rights to raise money, in case they default and end up penniless. 

"For most Chinese peasants their plots of land and their houses are their lifeline, the last straws of their existence and livelihood," said Chen Xiwen, deputy head of the Communist party's "Leading Group on Rural Work" last week. 

*"The Chinese social security system is not very complete,"* he added. *"The government does not allow peasants to use land-use contracts as collateral to avoid them losing their land, job, and house, which could affect social stability." *

*"Chinese land reform has to be done step by step. You can't make a leap forward that creates instability," agrees Li, the land reform lawyer. "But the new guiding principle will set up a platform for further reform in the future."*


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## dr.umer

*China to sell passenger jets to U.S. market ​*
BEIJING, Nov. 4 (APP): China signed its biggest aircraft export agreement, in terms of both number of jets and contract value, Tuesday at the 7th China International Aviation and Aerospace Exhibition in Zhuhai city of southern Guangdong province. The Commercial Aircraft Corporation of China, Ltd. (COMAC) will sell 25 ARJ21-700 regional jets to GE Commercial Aviation Services of the United States under a deal worth $ 733.1 million. 

The first jet will be delivered in 2013. 

COMAC Chairman Zhang Qingwei told media persons that this was the first time Chinese-developed and manufactured regional jets have entered western airline markets. 

ARJ21 (Advanced Regional Jet for the 21st Century) was developed independently by China. It has between 78-90 seats and a standard full-passenger flight can go 2,225 kilometers. 

The regional jet will make its maiden flight in Shanghai within this month. 

A total of 206 ARJ21-700s jets have so far been ordered.


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## Neo

*China growth forecasts drop below 8 percent​*
BEIJING: Credit Suisse on Tuesday lowered its forecast for 2009 Chinese economic growth to 7.2 percent, joining an expanding list of banks that anticipate a slowdown to below 8 percent, a level the government says it must maintain. Most countries would be pleased with 8 percent growth, but for rapidly urbanising China, experts say it represents a tipping point below which it may not be able to create enough new jobs or raise incomes by enough to maintain social stability. Annual GDP growth fell to 9 percent in the third quarter, setting the economy on track for its first year of less than double-digit expansion since 2002. The economy expanded 11.9 percent in 2007. 

A pair of gloomy purchasing managers indexes (PMIs) for October, which showed the sharpest drops in factory output in years, have added to concerns that China may face a more serious slowdown than previously expected, potentially dashing hopes that it could step up to prevent global growth from slowing further.


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## Neo

*Radical economic stimulus package in China soon​*
BEIJING: A radical stimulus package to fight the impact of the global financial crisis on China could be announced this month as the economy enters an excessive slowdown, state media said Thursday. Only a radical stimulus package can save the country from excessive slowdown, a senior Cabinet official, who refused to be named, told the China Daily.

The official, who the paper said was close to Chinas top decision-makers, said he had submitted a report to the central government urging it to implement an active fiscal policy to encourage government spending and investment. afp


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## pkpatriotic

*China to increase policy support for exporters*
*Editor: eveguo
7 Nov 2008 *

*BEIJING, Nov 7 - China will hammer out more measures to help its exporters get through next year, which is shaping to be even more difficult than 2008, a government think-tank said on Friday.*

The Chinese Academy of International Trade and Economic Cooperation, run by the Ministry of Commerce, said China would encourage lending to small exporters and facilitate customs procedures.

A report obtained by Reuters said Beijing would also streamline taxes and foreign exchange policies to make exports and imports easier. It did not elaborate.

China has twice increased value added tax refunds for textile, garment and other exporters in the past four months as demand for Chinese goods has weakened due to the global financial crisis.

*The think-tank said overseas demand would fall further in 2009 as the United States, Europe and Japan, which account for 60 percent of Chinese exports, tumble into recession.*

*"Looking at the external aspects, the global economic situation is going to be even more severe and complicated in 2009. There are growing uncertainties and destabilising factors,"* it said.

Rising loan defaults and settlement risks linked to the failure of financial firms, as well as escalating protectionism and fluctuating commodity prices, will further dim the global trade outlook, the report said.

*However, China's keen export prices -- based on low labour costs and integrated supply chains -- will help manufacturers to weather the storm, according to the report.*

Moreover, exporters can diversify by tapping the potential of other emerging markets such as Brazil and India, the think-tank said.

*It forecast that China's imports and exports combined would rise 20 percent this year to $2.6 trillion. It did not give separate projections for exports and imports.*


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## Neo

*Fifteen Chinese brands on worlds top 500 list ​* 
Saturday, November 08, 2008

LAHORE: The Chinese products have flooded the world market in last few years outclassing products from other economies due to cheaper rates and variety.

China is now the second-largest economy in the world with GDP of over $6.9 trillion (2007), measured on purchasing power parity (PPP) basis.

Chinese goods are in demand throughout the world, popular in developed as well as developing economies, because of their low cost and good quality.

From roadside vendors to uptown shopping malls Chinese products fill the shelves.

Success of Chinese products is due to range of prices offered for particular product to different buyers. A Chinese company selling a particular product in the USA for $10 would be supplying similar product of lower quality to Pakistan and Bangladesh for $2 to $3, these products may look alike but there quality would be different. Better quality, good material and durability would definitely mean higher price.

Traders in developing economies mostly import low quality Chinese products keeping in view the low purchasing power of consumers. In developed economies Chinese products have to comply with strict health, quality and safety standards.

The World Brand Lab, Chaired by Robert Mundell, 1999 Nobel Prize laureate in Economics, ranked the top 500 brands and announced in July of these fifteen Chinese brands were listed among the worlds top 500 brands in 2008, based on their market shares, brand loyalty and global leadership.

The three newcomers on the list were China National Petroleum Corporation, China Merchants Bank and Tsinghua Tongfang, while 12 Chinese brands retained their position from the previous year. The 12 brands include Haier, Lenovo, Industrial and Commercial Bank of China, State Grid, Bank of China, China Life, Changhong, China Railway Group, Air China and Sinopec. Also, in the 2008 list, China ranked the seventh in terms of the number of listed brands. This shows that the Chinese products popularity across the globe.

Bilateral trade between China and Pakistan was more than $7 billion in year 2007 and the two sides have set a target of $15 billion annually by 2011. An increasing number of Chinese manufacturers are operating in Pakistan such as white goods maker Haier, telecommunications firm ZTE, electronic giant SVA and a number of motorcycle companies. The demand for Haiers quality electrical appliances exists all over the world.

The IMF predicts that China would grow by more than 11 percent and India at around 9 percent this year, with almost equal rates in 2008. To get advantage of Chinese growth the Pakistan needs closer ties with China. 

During the recent visit of the president Asif Zardari Chinese leaders vowed to enhance bilateral economic cooperation between industrial and business communities. China will launch a telecommunication satellite, PakSat-1R for Pakistan in year 2011. China Mobile has invested $800 million in its first international venture Zong and plans to expand Zong network in Pakistan.

Huawei Technology a telecom solution provider is the only vendor serving all the mainstream telecom operators of Pakistan including PTCL, Ufone, Mobilink, Telenor, Warid and Zong etc. Also, San Ya Fang has donated equipment valued at one million dollars for establishing e-Government project initiative taken by the government of Pakistan.


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## pkpatriotic

*China unveils stimulus plan to battle economic crisis *
*Monday, November 10, 2008* 

*BEIJING:China unveiled a multi-trillion yuan economic stimulus plan Sunday aimed at boosting domestic consumer demand in the face of flagging exports, as foreign markets contract in the global financial crisis.*

The measures were approved at a cabinet meeting chaired by Premier Wen Jiabao on Wednesday, state media said, and would increase spending on infrastructure and a range of other sectors amid slowing domestic growth. 

*"China has decided to adopt an active fiscal policy and moderately easy monetary policies to foster fast but steady economic growth by expanding domestic demand,"* said a statement posted on the Cabinet's website.

*The spending package would total four trillion yuan (586 billion dollars) by the end of 2010, including monies already earmarked this year, it said.*

The measures come amid slackening overseas demand for China's manufactured goods -- the mainstay of the Chinese economy -- and the statement said they were aimed at spurring domestic consumption to take up that slack.


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## Neo

*China plans to counter financial crisis​*
BEIJING, Nov 9: China unveiled a multi-trillion yuan economic stimulus plan on Sunday aimed at boosting domestic consumer demand in the face of flagging exports, as foreign markets contract in the global financial crisis.

The measures were approved at a cabinet meeting chaired by Prime Minister Wen Jiabao the other day, state media said, and would increase spending on infrastructure and a range of other sectors amid slowing domestic growth.

China has decided to adopt an active fiscal policy and moderately easy monetary policies to foster fast but steady economic growth by expanding domestic demand, said a statement posted on the cabinets website.

The spending package would total four trillion yuan ($586 billion) by the end of 2010, including monies already earmarked this year, it said.

The measures come amid slackening overseas demand for Chinas manufactured goods, the mainstay of the Chinese economy, and the statement said they were aimed at spurring domestic consumption to take up that slack.Although we face many difficulties, domestic spending power remains strong, the statement said.

The move is the latest in a series of recent steps by China to counter the global financial crisis.

Economic growth in China eased to nine per cent in the third quarter of this year, the lowest in around five years, partly due to slowing exports.

The central bank has already cut interest rates three times since September and taken other steps to loosen monetary policy.

Those measures marked an about-face from a policy of steadily raising interest rates to cool the economy amid growing inflation and fears of overheating.

The cabinet, or state council, also recently approved a plan to spend two trillion yuan on construction of new railways from now until 2020.AFP


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## allbestmessages

I have read on net about econmy 
Economy: 
An economy is the realized social system of production, exchange, distribution, and consumption of goods and services of a country or other area. A given economy is the end result of a process that involves its technological evolution, civilization's history and social organization, as well as its geography, resource endowment, and ecology, among other factors.

Economy of china:

Now a day economy of china is gowing on very boob.Because china as like population first largest country in the world and all people working people are hardworking.China enter in every country.China has the 2nd-largest economy in the world with a GDP of over $6.9 trillion (2007) when measured on a purchasing power parity (PPP) basis. In November 2007, it became the third largest in the world after the US and Japan with a nominal GDP of US$3.42 trillion (2007) when measured in exchange-rate terms.[4] Since free market reforms in 1978 China's GDP has grown an average 9.9 percent a year.[5] China's per capita income has grown at an average annual rate of more than 8% over the last three decades, drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities.[6] The country's per capita income is classified as in the lower middle category by world standards, at about $2,000 (nominal, 107th of 179 countries/economies), and $7,800 (PPP, 82nd of 179 countries/economies) in 2006, according to the International Monetary Fund.

Since the late 1970s and early 1980s, the economic reforms initially began with the shift of farming work to a system of household responsibility to start the phase out of collectivized agriculture, and later expanded to include the gradual liberalization in of prices; fiscal decentralization; increased autonomy for state enterprises that increased the authority of local government officials and plant managers in industry thereby permitting a wide variety of private enterprise in services and light manufacturing; the foundation of a diversified banking system; the development of stock markets; the rapid growth of the non-state sector, and the opening of the economy to increased foreign trade and foreign investment. China has generally implemented reforms in a gradualist fashion, including the sale of equity in China's largest state banks to foreign investors and refinements in foreign exchange and bond markets in mid-2000s. As its role in world trade has steadily grown, its importance to the international economy has also increased apace. China's foreign trade has grown faster than its GDP for the past 25 years.[7] As of 2007, most of China's growth came from the private sector instead of exports. Particularly the smaller public sector, which was dominated by about 200 large state enterprises concentrated mostly in utilities, heavy industries, and energy resources.[8]

China has emphasized raising personal income and consumption and introducing new management systems to help increase productivity. China has emphasized raising personal income and consumption and introducing new management systems to help increase productivity. The government has also focused on foreign trade as a major vehicle for economic growth. China's GDP has increased tenfold since 1978, largely due to economic reforms including liberalization of their economy. [9] Some economists believe that Chinese economic growth has been in fact understated during much of the 1990s and early 2000s, failing to fully factor in the growth driven by the private sector and that the extent at which China is dependent on exports is exaggerated.[10] Nevertheless, key bottlenecks continue to constrain growth. Available energy is insufficient to run at fully-installed industrial capacity,[11] the transport system is inadequate to move sufficient quantities of such critical items as coal,[12] and the communications system[13] cannot yet fully meet the needs of an economy of China's size and complexity.

The two most important sectors of the economy have traditionally been agriculture and industry, which together employ more than 70 percent of the labor force and produce more than 60 percent of GDP. The two sectors have differed in many respects. Technology, labor productivity, and incomes have advanced much more rapidly in industry than in agriculture. Agricultural output has been vulnerable to the effects of weather, while industry has been more directly influenced by the government. The disparities between the two sectors have combined to form an economic-cultural-social gap between the rural and urban areas, which is a major division in Chinese society. China is the world's largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton. The country is one of the world's largest producers of a number of industrial and mineral products, including cotton cloth, tungsten, and antimony, and is an important producer of cotton yarn, coal, crude oil, and a number of other products. Its mineral resources are probably among the richest in the world but are only partially developed. China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites.


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## Neo

*Chinas economy to grow 8-9% in 09: central bank​*
BEIJING: The Chinese economy is expected to grow by between eight and nine percent next year, state press reported Monday, citing central bank governor Zhou Xiaochuan. Chinas steady growth would help the international financial markets go back to normal, Zhou said on the sidelines of a meeting of key financial officials of the Group of 20 in Sao Paulo, according to the Xinhua news agency. He said the central bank was closely monitoring the developments in the global financial markets to decide its next interest rate policies, the report said. Growth of the heavily export-dependent Chinese economy eased to nine percent in the third quarter of this year, the lowest in more than five years. The nations trade surplus dropped 2.6 percent in the first nine months of 2008, making it very likely that overall economic growth this year will slip into single digits for the first time since 2002.


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## Neo

*Gigantic stimulus package biggest contribution to world: China​*
BEIJING: Chinas massive stimulus package is meant to help support global growth by boosting Chinese investment and consumer spending, Premier Wen Jiabao said Monday. 

We must implement the measures to ensure a fast and stable economic development, Wen, the countrys top economic official, said at a meeting of government leaders, according to a report read out on the state television evening news. They are not only the needs of the development of ourselves, but also our biggest contribution to the world. 

Beijing joined moves by governments around the world to cushion the blow of the global slowdown. The plan calls for higher spending on roads, airports and other infrastructure, tax deductions for exporters and more aid to the poor and farmers. 

Wen said China must increase investment and consumer spending, maintain export growth, enhance corporate competitiveness, reform financial industries and improve the health development of the real estate industry, according to the state television report. It gave no other details. 

Chinas announcement came as economic officials from the Group of 20 leading economies, which includes major, wealthy and developing nations, called Sunday for increased government spending to boost the troubled global economy. At a meeting in Brazil, G20 finance ministers and central bank governors also said emerging economies deserve a prominent role in talks to overhaul the world financial system. Chinas move follows an unexpectedly sharp downturn in economic growth that has raised the prospect of job losses and unrest. Exporters say orders have fallen sharply, leading to an increase in factory closures and layoffs. Chinese economic growth fell to 9 percent in the latest quarter, its lowest level in five years, and analysts expect export growth to fall as low as zero in coming months as global demand weakens. The plan represents another drastic step away from lending curbs and other anti-inflation measures that Beijing imposed over the past three years but has been rolling back since mid-2008 as government alarm about slowing economic growth mounts. 

Economists noted that the plan depends on corporate investment and promises bank lending for rural projects, smaller companies and consumers. 

I dont believe a fiscal stimulus alone is enough to keep growth going. I see it as the jump-starting of a car. Corporate investment and bank lending are the fuel that will be necessary to keep it going, said UBS Securities economist Tao Wang. 

Beijing might supply one-quarter of the announced spending, or 1 trillion yuan ($145 billion), with the rest coming from increased investment by Chinese state companies, bank lending or bond sales by local authorities for individual projects, said Ting Lu, a Merrill Lynch economist. 

Chinas wholesale inflation eased in October, which gives authorities more leeway to stimulate the economy without the threat that they might ignite new price rises. Producer prices rose 6.6 percent in October from the year-earlier period, down from Augusts 12-year high of 10.1 percent. 

Alarmed at falling growth, the government switched its official goal in mid-2008 from a single focus on fighting inflation to a dual target of ensuring fast economic expansion while also containing price rises. It has cut interest rates three times in recent weeks and lifted limits on how much each Chinese bank can lend. ap


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## Neo

*Chinas package to be felt around the world: economists​*
BEIJING: Chinas announcement of a stimulus package that will pour more than half a trillion dollars into its economy will have repercussions far beyond its borders in a time of global crisis, economists say.

The package, decided at a recent meeting chaired by Premier Jiabao, calls for tax cuts and increased spending corresponding to about 7% of Chinas GDP over the next two years.

This is really Chinas Big Deal, which dwarfs all the previously announced monetary and fiscal measures as little drops, JPMorgan economist Frank Gong said in a research note.

Reflecting Chinas growing economic muscle, the four-trillion-yuan ($590 billion) stimulus package could send ripple effects across the globe, to countries as far away as Latin America.

It may possibly help stabilise the economies of smaller countries like South Korea which export a lot to China.

The package comes amid rapidly worsening predictions for the impact of the financial turmoil on Chinas export-dependent economy.

The nations trade surplus dropped 2.6 percent in the first nine months of 2008, making it very likely that overall economic growth this year will slip into single digits for the first time since 2002.

For the central government, the impact of the crisis on China was apparently more serious than it had expected, said Chen Manjiang, a Beijing-based economist with Bank of China International.

The timing of the package, before a major annual work conference on the economy that usually takes place in November or December, was significant, she said.

The reason for the early announcement is that the government wants to promote confidence in Chinas economy both domestically and among the international society, she said.

Judging from early reactions abroad, the outside world had taken note, with the package welcomed by Jim Flaherty, the finance minister of Canada, a supplier of raw materials to China.

British Prime Minister Gordon Brown said in a statement: It is vital that all countries play their part in stimulating growth in the world economy at this time.

This is a message that China may get to hear more often in the coming days and weeks, with advanced economies expected to contract next year for the first time since World War II, according to International Monetary Fund forecasts.

China has the worlds largest foreign exchange reserves, at 1.9 trillion dollars, facing it with growing calls to play a part in boosting global growth.

However, Beijings counter-argument has been that it serves the world best by helping along its own economy, forecast by the IMF to expand by 8.5 percent in 2009. afp


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## Neo

*China posts another record trade surplus ​* 
Wednesday, November 12, 2008

BEIJING: China said on Tuesday its trade surplus hit a monthly all-time high of $35.2 billion in October, on the back of rising exports despite the global economic turmoil.

The surplus, up 29.9 per cent from a year ago, reflected Chinas strong export markets outside the United States and Europe, but it was also the result of a marked slowdown in imports. Experts said Chinas trade would soon show more clearly the impacts of global woes, with export growth set to continue to slow. It is not very likely that such fast growth in the surplus will be sustained, said Qi Jingmei, a researcher with the State Information Centre, a Beijing-based government think tank.

Exports in October rose 19.2 per cent from a year ago to $128.3 billion, compared with 21.5 per cent growth in September, the figures said. The destination of Chinas exports is diversified. So the demand from Africa, Latin America and Russia is still strong although exports to Europe weakened, Qi said.

Imports last month increased by a narrower margin, rising 15.6 per cent from a year earlier to $93.1 billion, according to Customs. The more moderate rise in imports mainly reflected sharp declines in the price of oil and other commodities, observers said.


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## Nihat

> In China, OPECs nightmare comes true
> Web posted at: 12/6/2008 0:45:18
> Source::REUTERS
> By John Kemp
> 
> Chinas decision to link domestic fuel prices indirectly to the international crude oil market, subject to a price cap, while hiking the consumption tax on petrol and diesel and phasing out a variety of road tolls and other fees shows Saudi Arabias worst fears about high prices are demand destruction are starting to come true.
> 
> It seems likely to confirm the kingdoms determination to see prices stabilise around $75 per barrel, well below recent price peaks, and far below the level sought by some other OPEC members, as well as international oil companies and advocates of alternative energy.
> 
> China is among the worlds most inefficient users of energy, measured in terms of BTUs consumed per dollar of GDP produced. Since Chinas economy is one of the largest and fastest growing, and heavily reliant on imported crude oil, China has been hit harder than any other country by the recent surge in oil and energy prices.
> 
> Rising energy prices have worsened the countrys terms of trade, and threaten the viability of much of the industrial base (including the power-intensive steel and aluminium industries). The central government has made reductions in energy consumption per unit of output a top priority. Policymakers have used investment controls and other administrative measures to try to limit the expanion of energy-intensive industries aimed at producing primarily for export. At the same time, export taxes have been introduced on a wide range of low-value added semi-manufactured products (such as unwrought aluminium) and VAT rebates scaled back to encourage the manufacturing sector to concentrate on exporting higher value-added items in which energy is a smaller fraction of the overall unit cost.
> 
> But efforts to increase energy efficiency have been only partially successful, because the government continued to hold prices for gasoline, diesel, thermal coal and on-grid electricity below international levels, using a combination of price controls and subsidies. The governments strategy for improving energy efficiency came into conflict with the priority on economic and social stability.
> 
> Extensive price controls and subsidies largely insulated households and businesses from the rise in international oil and energy prices, blunting the incentive to improve energy efficiency.
> 
> Eventually, the rise in global oil prices became overwhelming. The resulting pressure on the current account of the balance of payments and need for growing subsidies to the countrys oil refiners forced the government to raise administrated petrol and diesel prices almost 20 percent earlier this year.
> 
> One welcome effect of the rise in oil prices and the decision to increase domestic gasoline and diesel charges was that it sharpened incentives for energy efficiency considerably. But as the economy has slowed sharply and international oil prices have tumbled, the government has come under pressure to cut fuel charges.
> 
> Instead, the National Development and Reform Commission (NDRC) has introduced a carefully integrated package of measures designed to provide short-term economic relief while maintaining the pressure for greater energy efficiency in the medium term.
> 
> By linking domestic prices indirectly to the international oil price, NDRC has ensured that consumers and businesses will benefit from the current easing in the oil market, helping stabilise the economy, but that domestic prices will move up again if the market picks up, reducing the subsidy burden and maintaining market-based incentives to limit energy consumption.
> 
> More importantly, the government has taken advantage of the (possibly temporary) reduction in oil prices to introduce a (probably permanent) increase in the energy consumption tax. The key point is that the consumption tax is not linked to variations in the oil price and will sharpen the incentives for using energy more efficiently at any level of international prices.
> 
> In effect, China has started to emulate the successful conservation strategies used in Europe and Japan, where heavy fuel taxes have spurred the use of much more fuel efficient vehicles and much lower energy consumption per unit of output than in the United States and the rest of the world.
> 
> Europe and Japan took advantage of relatively low oil prices during the late 1980s and 1990s to raise substantial excise taxes on the consumption of gasoline and diesel. Chinas decision to boost the consumption tax on gasoline and diesel looks like it could be the first in a series of phased increases over time, similar to the United Kingdoms fuel duty escalator.
> 
> OPEC has long complained about the massive wedge these fuel taxes have driven between the pump prices paid by motorists in Western Europe and the net revenue which oil exporting countries actually receive for their crude, but they are widely cited as the most effective conservation strategy.
> 
> Saudi Arabia expressed consistent concerns that the recent surge in oil prices would lead to the long-term loss of demand even if prices subsequently fell back. Those fears are now being realised. Chinas decision to raise the fuel consumption tax is one of a number of measures adopted around the world to promote conservation and aimed at the volume of oil consumed for any given level of prices. It is consistent with the massively increased bio-ethanol blending requirements introduced in the United States last year designed to displace oil consumption.
> 
> By pushing energy conservation to the top of the policy agenda, the frenzied escalation in oil prices during 2006-2008 is set to have long-lasting effects, even if prices eventually stabilise at much lower levels. President-elect Barack Obama has made clear that improving energy efficiency and cutting dependence on oil imports will be a top priority in the next four years. Neither the incoming Obama administration, nor top planners in Beijing, will quickly forget the harsh lessons about reducing energy dependence taught in the last two years, even if prices now settle much lower.
> 
> Chinas decision to raise fuel taxes will increase Saudi Arabias determination to stabilise prices at a much lower level than most other members of the organisation are comfortable with, to try to limit the long-term damage to oil demand. The kingdoms worst fears about the long-term damage wrought by high and volatile prices are now being realised.
> __________________



I'll post the link when I find it but I find this to be an excellent step by China.


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## solid snake

^^ Excellent move by China indeed.


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## gpit

*BBC NEWS | Business | Chinese exports drop in slowdown*

*China has reported a fall in exports for the first time in seven years. *

Chinese exports declined in November from the same period a year ago for the first time since June 2001, data shows. 

But China still reported a record monthly trade surplus of $40.1bn (£26.7bn), as the fall in imports was even bigger than the fall in exports. 

Exports dropped by 2.2%, while imports shrank by a massive 17.9% as Chinese consumer spending slumped - a sign of the impact of the global downturn. 

October had seen China's exports rise by 19.1% and analysts had expected further growth of at least 13% in November. 

However, they failed to anticipate a dramatic decline in foreign demand. 

China is expected to show growth of about 9% this year. However, the World Bank has cut its China growth forecast for 2009 from 9.2% to 7.5%, the lowest since 1990. 

Economists have been watching China closely, amid worries that global growth could be hit further if China follows the US into the downturn. 

*Weakening demand* 

In November, China announced a huge investment plan to kick-start its slowing economy. 

About $586bn is to go into housing, infrastructure and post-earthquake reconstruction in China over the next two years. 

However, it is unclear whether it will be enough to have an impact, while analysts see tough times ahead. 

"It's just a start. Exports and imports will continue to fall in the coming months, probably until next June," said Zhang Shiyuan at Southwest Securities in Beijing. 

"China's export sector will begin to show signs of stabilisation only with global recovery," said Jing Ulrich at JP Morgan. 

The trade surplus in the 12 months till the end of November rose to $278.7bn from $265bn in a year to the end of October. 

Meanwhile, Chinese aviation authorities are urging local airlines to postpone or cancel 2009 plane deliveries amid falling demand for air travel. 

The move could hurt aircraft makers Boeing and Airbus, which have hoped to weather weakening demand in their home markets by relying on growth in emerging markets, such as China.


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## pkpatriotic

*China growth rate to continue to decelerate until at least 2009 3Q* 
*2008-12-15* 

*Special Report:* *Global Financial Crisis*
BEIJING, (Xinhua) -- Wang Luolin, a renowned Chinese economist, forecast on Monday that the rate of China's economic growth will continue to decelerate until at least the third quarter next year, when it may begin to increase. 

Wang, who used to serve as the deputy head of the Chinese Academy of Social Sciences, also said the country's growth could be expected to stay between eight and nine percent, "which remained the highest growth of all economies", over the following two or three years after the pick-up. 

He made the forecast on the expectations that the global crisis would be eased by then, and also on the effect of direct support from government measures to stimulate the economy. 

China announced a four trillion yuan (584.8 billion U.S. dollars) stimulus package last month to boost the economy, followed by more specific policies such as raising export rebates and the latest pledge of more new loans next year. 

The Chinese economy cooled sharply as growth in exports and property investment slowed. The growth pace was 9 percent in the third quarter, down from 10.4 percent in the first half. 

Economic data released this week showed further risks of a slowdown in the economy. Exports in November slid 2.2 percent year on year, the first monthly decline since June 2001. 

The fourth quarter this year and the first quarter next year would be the toughest time for Chinese economy, Wang said. However," there is no financial crisis in China, and no economic recession is ahead for the country." 

He also said the worst would be over for the world economy in the second half of next year, or in the fourth quarter at the latest, but he foresaw a prolonged "recession" period. 

Wang explained that in the so-called "recession" period, major economies would post no declines in growth, but would expand at around one percent or less. 

Gong Fangxiong, chief economist with JP Morgan Chase, echoed his view. Gong said last week that the rate of decline in China's economy was likely to bottom out in the second quarter of 2009.


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## pkpatriotic

*Leading academy: China to face increasing employment pressure next year* 
*2008-12-15* 

BEIJING, China will face increasing employment pressure next year due to slowed economic growth, decline in export and an increasing number of bankruptcies, a top academic institution says on Monday. 

The Chinese Academy of Social Sciences(CASS), China's leading academic institution, said in its 2009 blue book that the country's employment would be affected in spite of a planned 4 trillion yuan (584.8 billion U.S. dollars) stimulus package to boost economy. 

The slowed economic growth rate, estimated at eight to nine percent by the academy, would affect the employment rate compared with China's previous double-digit growth rate, according to CASS. 

Large economic entities and major importers of China-made products such as the United States and the European Union have been affected by the global economic crisis, and could lead more to more job losses in export-oriented enterprises, it said. 

More medium and small-sized enterprises will have to reduce production or go bust as the pay for workers has increased, it said. Lack of capital due to the sharp fall in export would further impact on the employment rate. 

According to statistics released by China's National Development and Reform Commission, the country's top economic planning body, more than 10,000 medium and small-sized enterprises in the textile sector were eliminated in the first half of the year, and two thirds needed to be restructured. 

About 150 million Migrant laborers, a major driving force of China's economy, have been hit hard by the bankruptcy of labor-intensive industries such as textile factories. 

Most migrant workers did not register their unemployment after being dismissed, so accurate statistics cannot be reported, said CASS. The recent retreat of migrant workers from coastal provinces is a red flag that more job posts in labor-intensive industries inthe well-off coastal provinces have been lost. 

The country also faces the difficult task of finding jobs for nearly 6.5 million college graduates next year, said the blue book. 

Blue book often refers to an almanac or other collection of statistics and information.


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## pkpatriotic

*China money supply growth slows on economic slowdown* 
2008-12-15 

*Special Report:* *Global Financial Crisis* 

*BEIJING,* China's money supply grew at a slower-than- average pace in November as the economy continued to weaken, the central bank said Monday. 

*The M2*, the broad measure of money supply covering cash in circulation plus all deposits, rose 14.8 percent to 45.86 trillion yuan (6.7 trillion U.S. dollars) by the end of November. The growth rate was down 0.22 percentage points from a month ago, according to the People's Bank of China *(PBOC)*. 

Experts said the M2 growth slowed for the sixth straight month because of decreased incomes and weakened demand. 

*The M1*, the narrow measure of money supply covering cash in circulation plus demand deposits, grew 6.8 percent to 15.78 trillion yuan (2.3 trillion U.S. dollars), down 2.05 percentage points from the end of October. 

*"This showed the sharp contraction of business activity as companies began to reduce stockpiles from October," said Liu Yuhui, a researcher at the Institute of Finance and Banking under Chinese Academy of Social Sciences.* 

Many companies, especially those in the industrial manufacturing and chemical industries, built up huge stockpiles on price bubbles last year and were forced to cut stockpiles after the bubbles busted on falling demand. 

*The slower M1 growth showed reduced production and investment on pessimistic views about the economic outlook, said Guo Tianyong, an expert of banking at the Central University of Finance and Economics.* 

China's economy grew 9 percent annually in the third quarter, down from 10.4 percent in the first half. Economic data for October and November indicated a risk of further decline. 

Industrial output rose 5.4 percent annually in November, down from 8.2 in October and 17.3 percent a year earlier. In addition, exports slid 2.2. percent, compared to 19.2 percent growth in October and the first monthly decline since June 2001. 

The State Council, or Cabinet, on Saturday said it targets a 17percent growth in M2 in 2009 in a bid to increase money supply to spur economic growth. 

China needs more fiscal and taxation policies, including treasury bond sales, to meet the M2 growth target as monetary easing alone has failed to increase supply over the past few months, Guo said. 

The PBOC has cut the lending rate four times since mid-September, with the latest reduction of 1.08 percentage points, and also lowered the reserve requirement ratio substantially. 

*MORE NEW LOANS *

The outstanding yuan-denominated loans climbed 16.03 percent to 29.57 trillion yuan (4.3 trillion U.S. dollars), 1.45 percentage points higher than a month ago. 

The newly-added yuan loans in November was 476.9 billion yuan (69.6 billion U.S. dollars), a rise of 389.5 billion yuan from a year earlier. 

The divergence in behaviour between M2 and bank credit suggests a reduced contribution to broad money expansion from foreign exchange reserve accumulation by the central bank, Barclays Capital economists headed by Peng Wensheng said in research note. 

The increase was due to a low base in November last year and rises in bank credit in coordination with the massive 4 trillion yuan (584 billion U.S. dollars) stimulus package to avert an economic slump, Guo said. 

New loans was at low levels late last year as lenders were faced with credit quota restrictions designed to prevent an economic overheating and curb inflation. 

Provided stable foreign exchange reserves, bank credit would need to grow by 27 percent next year to achieve the M2 growth target, Peng wrote in another note. 

*Banks have become reluctant to lend amid the worsening growth outlook and an incentive system for loan officers that places more responsibility for non-performing loans, said Peng. He added it is important to increase banks' capacity and incentives to lend.* 

*Guo noted the government should cut taxes for banks while the lenders need to strike a balance between sustaining economic growth and controlling risks.* 

*Liu Mingkang, Chairman of the China Banking Regulatory Commission (CBRC), said on Saturday the agency targets a lower non-performing loan (NPL) ratio next year, but it will "scientifically tolerate" any increases in the stockpiles of bad loans. *

The PBOC also said the outstanding yuan deposits jumped 19.94 percent to 46.24 trillion yuan (6.8 trillion U.S. dollars) by the end of November, 1.16 percentage points lower than a month ago. 

*The new yuan deposits was 403.8 billion yuan (59 billion U.S. dollars) last month, a decline of 298.6 billion yuan from a year ago.*


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## pkpatriotic

*Fuel tax reform needs more transparency* 
*2008-12-15* 

BEIJING, According to the draft plan unveiled on Dec 5 by the National Development and Reform Commission (NDRC), the country's top economic planner, and three other government agencies on fuel taxes and the pricing of refined oil products, gasoline taxes will be raised to 1 yuan per liter from 0.2 yuan and diesel taxes to 0.8 yuan per liter from 0.1 yuan. 

Taxes on other oil products will also be raised. The plan is due to be put into effect on January 1. 

This is indeed a positive move. With the more workable taxation scheme in place, people's awareness of economical use of energy, and emission reduction, will be greatly enhanced. 

The move will also help ease problems between the country's fast-growing economy and the wasting of resources. 

At the same time, the reform will also help set up a resource pricing mechanism and make government revenues as well as their utilization more transparent. 

The recent record low world oil prices, dipping to 40 U.S. dollars a barrel, has offered a rare opportunity for China to push ahead with its fuel taxation reform. 

The reform has set the tone for the country's refined oil market: Future adjustment of the market will be led by taxation levies instead of administrative will. 

It will give the market a larger role in pushing for energy conservation and environmental protection. 

After the adoption of the new oil pricing standard, the controversial issue of unrestrained road toll fees is expected to be resolved as well. According to the NDRC draft plan, fuel taxation will replace the long-standing road maintenance and management fees. 

However, the regulation has also provoked heated arguments that it failed to make public how the fuel taxation levels were set. Such an elusive attitude by the authorities has turned out to be a source of widespread speculation. 

Different countries have varying energy consumption and fuel taxation policies. In Europe and Asia, most nations have resorted to higher taxation to mitigate pressures on their oil insufficiency. 

*Germany for example, the largest European economy, has adopted a 260 percent tax on fuel consumption. Such a high taxation has contributed much to the development of energy-efficient technologies and the popularity of lower-emission vehicles.* 

*However,* the United States has a completely different policy. In the world's largest economy, fuel tax is only 30 percent. As a result, the ratio of the country's use of oil-consuming vehicles has long been higher than other countries. 

*A recent online survey of China's new fuel taxation showed more than 77 percent of those polled believed the 1-yuan-a-liter gasoline taxation was too high and unacceptable.* 

*However, some domestic energy experts have claimed that the new taxation level would not play an important role in promoting energy conservation and emission reduction unless it was raised to 3 and 4 yuan per liter.* 

*Conflicting views on the reform needs an official voice to clarify.* 

The reform is expected to produce substantive influences on different industries and sectors. 

It will have an immediate impact on the transport sector. According to the regulation, road maintenance and management fees will be included in the unified fuel taxation. This will result in increased costs to those who consume a lot of fuel than in the past. 

*Farmers' production costs are expected to rise drastically too. About 80 percent of fuel consumption in the rural areas goes to farming, irrigation and power generation.* 

The added burden on farmers, who are already in a disadvantageous position, should receive the attention of responsible State organs. 

Some supplementary measures have yet to be taken to ease farmers' burdens in order to avoid possible social dissatisfaction. 

*The authorities need to clarify how the taxes will be used and ensure that some of it will go toward subsidizing affected industries and enterprises. 

We should not expect the authorities to work out a perfect fuel taxation and refined oil pricing system, it takes time to get it right. 

But what the government should do first is to further increase transparency in its information publications. A good communication channel between the government and the people will dispel misgivings.* 

_The author is an anchorman with China Business Network, a TV station based in Shanghai_


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## Pk_Thunder

*China unveils new measures to boost trade, consumption*​

BEIJING: China published a series of measures Thursday to boost exports and consumption, marking the latest attempt to tackle the worst economic outlook in a generation.

A hike in tax incentives to exporters of machinery and electronic products were among measures unveiled after a meeting Wednesday of the State Council, or
Cabinet, chaired by Premier Wen Jiabao, the China Daily said.

Participants in the meeting also decided to expand the list of product categories where foreign investment in processing trade is permitted, according to the paper, which provided no further details.

As part of the same package, the government will increase subsidies for farmers buying household appliances in a bid to tap the potential of the 800 million consumers living in the countryside, Xinhua news agency reported.

Other measures include money spent on boosting retail outlets in urban and rural areas, according to Xinhua.

Evidence has been piling up that China is headed for harder times as its foreign trade sector takes a direct hit from the global crisis.

The nation's exports dropped 2.2 percent in November from a year earlier, the first decline in more than seven years.

The Chinese economy, on the verge of officially becoming the world's third-largest, is likely to see growth slow to 7.5 percent in 2009, the worst performance since 1990, according to the World Bank.


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## nitesh

good move, congratulations move in the right direction:

China makes yuan an international currency-India Business-Business-The Times of India

China makes yuan an international currency
26 Dec 2008, 0145 hrs IST, Saibal Dasgupta, TNN


BEIJING: Communist China on Thursday celebrated Christmas by announcing a high-end capitalistic dream: Making the Yuan an international currency.

The government wants to implement some aspects of this dream in a limited fashion. It has allowed businesses in certain regions of China to make payment settlements in Yuan instead of using a reference currency like the US dollar, with countries like Singapore.

Businesses located in the Yunnan province and in the Guangxi Zhuang autonomous region will be allowed to use the Yuan to settle trade payments with "neighbouring trade partners" like member-nations of Asean, the government said. But there was no mention of India would be engaged for this purpose.

The Chinese currency will also be used as the medium for settlement between businesses in the Pearl and Yangtze River delta regions and the special administrative regions of Hong Kong and Macao, the State Council, which is the national cabinet, said.

With China holding $1.9 trillion in foreign exchange, it has been able to make the Yuan fairly acceptable in certain quarters. But Beijing has been facing stinging criticism from western nations for controlling the value of the Yuan instead allowing it to behave in tune with market forces. The move would help Chinese exporters to overcome some of the risks associated with foreign exchange when they are able to make settlements in the local currency, experts said. The government may have been prompted by speculation that the US dollar might lose a lot of its value because of the ailing American economy.

The move might even considered the important role played by the Hong Kong dollar in global monetary system. Experts had earlier suggested that the Hong Kong dollar will come under pressure owing to the weakening of its economy due to global crisis.


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## Neo

*China encourages mainland companies to invest in Taiwan ​* 
Friday, December 26, 2008

SHANGHAI: China on Thursday published guidelines for mainland companies to invest in Taiwan, in a bid to further strengthen ties with the long-standing rival that it considers part of its territory.

A joint statement by Chinas National Development and Reform Commission and the Taiwan Affairs Office publicly outlined three criteria for companies registered on the mainland who wish to invest in Taiwan.

They said such companies would need approval for Taiwan-bound investment from the Chinese economic planning agency with adequate proof of financing, according to a statement posted on the governments website late on Wednesday. They must also abide by laws and not harm Chinas aim of bringing about unification with Taiwan, it said.

Chinese companies still cannot invest directly in the island without approval from Taiwans government, but the release of the guidelines pushes forward the issue of tightening ties, which Beijing has been pursuing.China still regards Taiwan as a renegade province that must eventually come back into Beijings political fold, by force if necessary. But relations have improved rapidly since the election in March of Taiwan President Ma Ying-jeou, who has promised closer ties.


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## Neo

*Chinas port cargo traffic drops in Nov amid global slowdown ​* 
Friday, December 26, 2008

BEIJING: Cargo traffic at Chinese ports in November fell 0.5 per cent from a year ago, state media said on Thursday, in yet a sign the global crisis is causing the nations export-dependent economy to lose steam.

Cargo throughput at major Chinese ports last month was 460 million tonnes, said the China Communication News, which is run by the transport ministry. I cant remember a sluggish performance like this ever happening since I started working on these statistics in 2000, an official with the ministrys statistics department, who declined to be named, told AFP.

The drop is mainly due to flagging demand from the real estate and auto industries for iron ore and coal, which account for around 30 per cent of Chinas overall port cargo traffic, the official said. Shrinking demand from the United States and Europe for Chinese exports is another key reason, the official said.

Chinas exports dropped 2.2 per cent in November from a year earlier, the first decline in more than seven years. The Chinese economy, on the verge of officially becoming the worlds third-largest, is likely to see growth slow to 7.5 per cent in 2009, the worst performance since 1990, according to the World Bank.


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## Neo

*Daewoo seals Myanmar & China gas export deal ​* 
Friday, December 26, 2008

BEIJING: A Myanmar gas consortium led by South Koreas Daewoo International has signed a 30-year agreement to sell natural gas to China, Chinas Xinhua news agency said on Thursday.

Under the agreement, which cements a preliminary deal in June, Chinas top state oil and gas firm China National Petroleum Corp (CNPC), will buy gas from the Shwe field in Myanmars A-1 offshore block, which has reserves of 4-6 trillion cubic feet (113-170 billion cu metres), Xinhua said. CNPC is the parent of listed PetroChina.

Daewoo has 51 per cent in the consortium, the China National United Oil Corporation (CNUOC). The other shareholders are Indias Oil and Natural Gas Corp with 17 per cent, Indias GAIL with 8.5 per cent, Korea Gas Corp with 8.5 per cent and Myanmar Oil & Gas Enterprise with 15 per cent.

CNPC and Myanmar Oil & Gas Enterprise plan to build oil and gas pipelines through Myanmar and into Chinas southwestern Yunnan province, bypassing the long journey around the Malacca Strait for oil cargoes and solving the problem of getting the gas to market, Chinese media have reported.

Myanmar will also be able to tap the pipeline running across its territory to promote economic development once the gas starts flowing, which is expected to happen in 2013, Xinhua said.Few western companies will invest in the former Burma because of its poor human rights record and continued detention of Nobel Peace Prize laureate Aung San Suu Kyi, which has led to a broad range of US and European sanctions.

China, typically wary of supporting or imposing sanctions and one of Myanmars few diplomatic allies, has shown no qualms about investing in its neighbour, eager for its natural gas, oil, minerals and timber to feed a booming economy. Daewoo said last year it had picked China as a preferred bidder for natural gas from a project in Myanmar, putting it at the front of a queue that also includes India and Thailand.


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## Neo

*China plans to avert US-style auto crisis ​* 
Friday, December 26, 2008

SHANGHAI: Chinas top economic planning agency is drafting a stimulus package to save the automotive sector from a US-style crisis, state media reported on Thursday. The National Development and Reform Commission is to send rescue plans to the cabinet by the end of the week, and if approved they are expected to be implemented in January, the Shanghai Securities News said, citing sources. 

Measures will include cuts in the 10 per cent vehicle purchase tax to boost consumption, and direct government funding to help automakers upgrade their technologies, the report said. The Ministry of Science and Technology has also suggested steps such as facilitating mergers in the sector and encouraging banks to provide low-interest loans to automakers, the report said. 

Chinas auto sales fell 14.6 per cent in November from the same month a year earlier, according to industry association figures, as consumer confidence showed further signs of weakening amid the economic slowdown. China cut gasoline and diesel prices by around 13 per cent and 17 per cent respectively last week, in what was seen as a signal aimed at boosting confidence among car buyers and manufacturers.


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## gpit

_More on yuan trades..._


*BBC NEWS | Asia-Pacific | China to allow freer yuan trades*

*China has said it is to allow some trade with its neighbours to be settled with its currency, the yuan. *

The pilot scheme was announced in a package of measures designed to help exporters hit by the global downturn. 

It means if the two parties to a trade have yuan available, they need not enter world exchange markets to pay. 

Most of China's foreign trade is settled in US dollars or the euro, leaving exporters vulnerable to exchange rate fluctuations. 

The yuan is not yet a freely convertible currency. 

Officials did not say when the trial scheme would start. 

When it does, the yuan could be used to settle trade between parts of eastern China (Guangdong and the Yangtze River delta) and the territories of Hong Kong and Macau, and between south-west China (Guangxi and Yunnan) and the Asean group of countries (*Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam*). 

*Spreading yuan* 

Analysts told Chinese media that the *yuan was already being used in some South East Asian countries* and that China was happy to see such use extended. 

They also agreed that the measure was intended to help companies cope with the global financial meltdown, even though buying and selling the currency requires the presentation of legitimate trade documents to banks. 

The latest measure follows Beijing's announcement earlier this month of a 30-point directive in which it vowed to "support the development of yuan business in Hong Kong" and expand the use of the currency to settle trade with neighbouring countries. 

Central bank governor Zhou Xiaochuan was quoted by the South China Morning Post as saying: "*The US dollar is unlikely to be stable next year and later.* 

"*And the likelihood of the United States issuing more money in the near future adds to the depreciation risk in US-dollar-denominated assets and trade settlements.*" 

He also reportedly said that Guangxi, a province in southern China, *had already been settling trade with Vietnam in yuan* for some time. 

*Spurs to spend* 

A document released after a meeting of China's State Council on Wednesday announced more measures to stimulate domestic consumption. 

These include subsidies to rural households for the purchase of household appliances and other goods, and the setting up of new stores and distribution centres in rural areas. 

The document called for the renovation of urban food markets, the provision of more variety of goods on sale, the setting up of more second-hand markets, incentives for distribution companies to merge and consolidate, and support of small and medium-sized enterprises. 

The state news agency Xinhua said the government intended to raise export tax rebates for high-technology products, to encourage foreign investment, extend customs and inspections services, lower inspection fee for exports and strengthen trade relations in emerging markets. 

Analysts said the ideas, though vague, indicated growing concern among China's policy makers about the domestic impact of the current global financial turmoil. 

Powered by exports, China's economy has grown by double digits in recent years. 

In November, official figures showed a 2.2 percent drop in exports, the first decline in more than seven years.


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## gpit

Trades in yuan is another very important step of soft power development. It is truly intersting...


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## Neo

*China foreign debt rises to $442 billion at end of September​*
BEIJING: Chinas foreign debt grew at a slower pace in the third quarter, the countrys foreign exchange regulator said on Friday, reflecting a slowdown in investment from abroad amid the weaker global economy.

Chinas foreign debt reached $442.0 billion at the end of September, up 3.4 percent from $427.4 billion at the end of June, the State Administration of Foreign Exchange (SAFE) said on Friday.

Chinas foreign debt rose 8.9 percent in the second quarter and 5.1 percent in the first quarter. The end-September level was up 18.3 percent from the end of 2007, the foreign exchange regulator said on its website.

Short-term foreign debt, an indicator of inflows of capital, rose to $280.0 billion at the end of September, up from $265.4 billion at the end of June. That amounted to 63.4 percent of the total. But medium- and long-term foreign debt, which accounted for 36.6 percent of the total, fell $0.2 billion in the third quarter.

Chinas short-term foreign debt was about 14.6 percent of its $1.906 trillion in foreign exchange reserves as of the end of September.

Chinas yuan has stablised against the US dollar since the second half of 2008. The countrys foreign exchange reserves fell in October for the first month since December 2003, despite a record high trade surplus of the month, suggesting that speculative capital has begun to flow out of the country.

SAFE issued rules this week allowing exporters to accept 25 percent of the total due as prepayment and allowing importers to delay paying 25 percent of the total they owe, both up from 10 percent previously. reuters


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## nitesh

gpit said:


> Trades in yuan is another very important step of soft power development. It is truly intersting...



Hey gpit, will Chinese government make the yuan take up and down like any other currency? Any policy statement came in regarding this?


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## gpit

nitesh said:


> Hey gpit, will Chinese government make the yuan take up and down like any other currency? Any policy statement came in regarding this?



Dear Nitesh, 

I personally dont think the Chinese government will let their currency to float freely, since this is prone to external manipulation, as demonstrated by 97 Asian currency crises. And it is not in the national interest of China, nor in the interest of SE Asian countries. Those countries have a huge amount of Chinese living there and traditionally have tight relationship (good and bad) with China. 

If current financial crises were not here, I bet the currency will strengthen a little bit more. The advent of this crisis may see yuan either keep its current value or float downward a bit. In either case, big oscillation of the Yuan value may not be in Chinas interest, as the government is keen to move up their industries in the value chain (which is pretty tough, IMHO).


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## nitesh

^^

Thanks for the reply, but sooner or later it has to open up because otherwise it will be difficult in international arena.
But any way let's see how the policy decisions are taken


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## Pk_Thunder

*Chinese dairy firms to pay out millions to milk victims*​
Updated at: 1320 PST, Monday, December 29, 2008 
BEIJING: Twenty-two Chinese dairy firms will pay 160 million dollars into a compensation fund for families of babies that died or fell ill after drinking tainted milk, state media said on Monday.

Families of children killed by the tainted milk will each receive 200,000 yuan (29,000 dollars) in compensation from the fund. Parents of infants who were hospitalised will each get between 30,000 and 50,000 yuan, it said.

At least six babies in China died this year and another 294,000 fell ill after drinking milk laced with the industrial chemical melamine, which is normally used to make plastic.

Melamine was mixed into the watered-down milk to make it appear richer in protein. But the chemical caused severe kidney problems and urinary tract problems in babies who drank the tainted milk powder.

The scandal, which emerged in September after initially being covered up, shook the foundations of a Chinese food industry that was already tainted by repeated safety problems.

It quickly became a global concern after contaminated Chinese milk products were found abroad. Lawyers for victims have said the government warned them not to sue, possibly out of fears over a slew of potentially costly lawsuits that would also attract bad publicity.


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## Pk_Thunder

*Myanmar signs gas deal with China*​
Updated at: 1200 PST, Monday, December 29, 2008 
YANGON: Myanmar's government and four foreign companies have signed an agreement to sell natural gas from offshore fields to neighboring China, state media said Monday.

The agreement, signed last Wednesday, was the first for sales of gas from Myanmar's northwestern offshore fields.

The local newspaper said South Korea's Daewoo International and Korea Gas Corporation and two Indian companies _ONGC Videsh Ltd. and GAIL Ltd were part of a consortium with the Myanmar government that finalized the deal with the China National United Oil Corporation. The consortium is led by Daewoo, with a stake of 51 percent.


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## gpit

nitesh said:


> ^^
> 
> Thanks for the reply, but sooner or later it has to open up because otherwise it will be difficult in international arena.
> But any way let's see how the policy decisions are taken



You are welcome.

Whether Yuan can fully open to free trade or not, IMHO, is fully dependent on how and to what stage China ascends in the world stage. If China cant compete with external world, mainly US and EU, it will not truly free trade the Yuan.

China, in an attempt to appease USs pressure for raising Yuan value, made Yuan float within a limits with a basket of foreign currencies years back. But China doesnt even reveal what the basket is. I called an economy professor in China, asking that question. She replied: This is a state secrete. Obviously, China cant/is unable to dispel US claim of currency manipulation. Or maybe it is not in an intention to do so completely.

If a currency is freely traded, it is not up to government control, but can be subject to the control of a handful financial alligators, such as George Soros. I dont see there are too many differences for our ordinary people. Perhaps the latter is even worse.

In fact, Japanese Yan is *constantly* influenced by its government.


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## wangrong

* China Jan-Nov tax revenue at 5.2 trln yuan($759 billion)*
China's tax revenue in the first 11 months of the year rose 20.2 percent year-on-year to 5.2 trillion yuan ($759 billion), the Ministry of Finance said.

In a statement published on its website, the ministry said the growth rate was 14.4 percentage points lower than the year-earlier level, mainly due to a slowdown in the economy.

Growth rates of value-added tax and enterprise income tax eased, while growth of other tax revenue declined sharply or turned negative.

In the first 11 months, value-added tax revenue was up 18.2 percent at 1.674 trillion yuan, 3.2 percentage points lower than the year-earlier growth rate.

Consumption tax revenue rose 16.3 percent year-on-year to 238.25 billion yuan, while business tax revenue rose 16.6 percent to 703.35 billion yuan, 13.1 percentage points lower than a year earlier.

Corporate income tax was up 26.7 percent year-on-year at 1.162 trillion yuan, 12.5 percentage points lower than a year earlier, while individual income tax rose 18.5 percent to 345.06 billion yuan, down 11.6 percentage points.

Tariff revenue rose 28.7 percent from a year earlier to 169.68 billion yuan, while stamp tax revenue fell 48.1 percent to 96.49 billion yuan mainly due to a reduced tax rate and weak transaction volume, the ministry noted.

The ministry said that tax revenue in November fell 11 percent from a year earlier, following the negative growth in tax revenue in October. It did not give absolute data.

Value-added tax revenue fell 2.3 percent year-on-year, the first decline in years, while consumption tax revenue rose 10.9 percent to 18.09 billion yuan, and business tax booked a growth rate of 2.3 percent in November, 21.1 percentage points lower than a year earlier.

In November, corporate income tax fell 7.2 percent year-on-year to 18.82 billion yuan, well off the growth rate of 561.3 percent a year earlier.

Tariff revenue last month fell 18.5 percent year-on-year to 2.597 billion yuan, while stamp tax revenue was down 91.5 percent to 1.572 billion yuan.

Daily transaction volume on the stock market in November averaged 50 billion yuan, down over 80 percent from a year earlier, it added.


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## Neo

*Chinas economic outlook still healthy: official ​* 
Sunday, January 11, 2009

BEIJING: The world economic crisis is clearly having an impact on China, but the countrys fundamental prospects remain bright, deputy central bank governor Yi Gang said on Saturday.

Chinese industrial output growth has slowed sharply in recent months and exports fell in November as the reverberations of the global financial meltdown hit the countrys manufacturers. But Yi struck a note of confidence, telling a forum that he expected the economic situation to be relatively stable this year.

The government launched a 4 trillion yuan ($585 billion) stimulus package and the Peoples Bank of China has repeatedly cut interest rates to prop up domestic demand. Chinas basic outlook is good, Yi said. He said businesses were increasing inventories of commodities and raw materials, a process that would continue this quarter and possibly next.

This may indicate that the Chinese economy will have a change in the second or third quarter, Yi said. In contrast to other countries that had suffered financial crises, Chinas banks, overall, were enjoying their best period, Yi said.


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## Nihat

China tops world in Internet users

BEIJING, China (CNN) -- China surpassed the United States in 2008 as the world's top user of the Internet, according to a government-backed research group.

Nearly 91 percent of China's Internet users are surfing the Web with a broadband connection.

Nearly 91 percent of China's Internet users are surfing the Web with a broadband connection.

The number of Web surfers in the country grew by nearly 42 percent to 298 million, according to the China Internet Network Information Center's January report. And there's plenty of room for growth, as only about 1 in every 4 Chinese has Internet access.

The rapid growth in China's Internet use can be tied to its swift economic gains and the government's push for the construction of telephone and broadband lines in the country's vast rural areas, the report says.

The Chinese government wants phone and broadband access in each village by 2010.

Nearly 91 percent of China's Internet users are surfing the Web with a broadband connection -- an increase of 100 million from 2007. Mobile phone Internet users totaled 118 million by the end of 2008.

While China's Internet usage has been growing in leaps in bounds, the government limits the Web sites its citizens can visit. 


Earlier this month, China released a blacklist of 19 major online portals and Web sites, including Google and Baidu, that it claims provide and spread pornographic or obscene content. The move came as several Chinese government agencies, including the Ministry of Public Security, launched a month-long campaign to clean up the Web, according to the state-run Xinhua news service.

China has come under criticism for restricting Web access to ordinary citizens as well as on local and foreign media covering last year's summer Olympics in Beijing. The U.S. State Department noted in a 2008 report that China had increased its efforts to "control and censor the Internet, and the government had tightened restrictions on freedom of speech and the domestic press" and bloggers.
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In an interview with CNN's Fareed Zakaria in September 2008, Chinese Prime Minister Wen Jiabao said, "the freedom of Internet in China is recognized by many, even from the West."

"Nonetheless, to uphold state security, China, like many countries in the world, has also imposed some proper restrictions. That is for the safety, that is for the overall safety of the country and for the freedom of the majority of the people."


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## gpit

BBC NEWS | Business | China's economy leapfrogs Germany

The Chinese government has increased its estimate of how much the economy grew during 2007. 

The revision means China's economy overtook Germany's to become the world's third largest in 2007. 

Gross domestic product expanded 13%, up from an earlier estimate of 11.9%, to 25.7 trillion yuan ($3.5 trillion). 

The figures underscore China's emergence as an economic superpower, although the country's growth rate is expected to have dropped to *9% in 2008*. 

China's government is taking measures to try and ease the slowdown. 

The government has launched a 4 trillion yuan ($586bn) stimulus package and has promised measures to help struggling exporters and vehicle and steel makers. 

Individually, most of China's more than one billion people remain poor. 

Germany's GDP per person was $38,800 in 2007 compared with $2,800 in China, which has wide disparities between rich and poor. 

China's economy has grown tenfold in the past 30 years. 

*Merrill Lynch economist Ting Lu predicted that it will overtake Japan as the world's second largest economy in "only three or four years".*


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## gpit

Nihat said:


> China tops world in Internet users



Good news.

Freedom of speech can only be implemented in a true and mutual-responsible sense when the overwhelming majority of the citizens are literate.

In China, due to its uniqueness, it will start from internet world, as I repeatedly said/predicted many times.


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## Neo

*China Internet users soar to 298m​*
BEIJING: The number of Internet users in China jumped nearly 42 percent to 298 million by the end of 2008 from the previous year, cementing the countrys position as the worlds largest Internet population, the China Internet Network Information Center (CNNIC) said.

The number of mobile Web surfers surged 113 percent to 117.6 million in 2008 and mobile Internet is expected to grow explosively in the next few years after the recent issuance of third-generation (3G) licenses, the state-run agency said. The Internet penetration rate in China has risen to 22.6 percent, slightly higher than the worlds average of 21.9 percent, CNNIC said in a report on Tuesday.

In addition, the number of Internet news readers has risen to 2.34 million and websites have become a crucial area for publicity, the report said. News portals in China, such as Sina Corp and Sohu.com Inc, are the major sources of information for a large number of Internet users across the country. Wary of threats to its grip on information, Beijing launched a crackdown on vulgar Web content this month after conducting numerous censorship efforts targeting pornography, political criticism and web scams in the past.


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## Nihat

*China's economic growth slows*


BEIJING, China (CNN) -- China's economic growth slumped to 9 percent for 2008, according to numbers released by the government Thursday -- in line with expectations, but still the slowest rate the nation has seen in seven years.
People shop for the Lunar New Year Wednesday in Beijing, China.

People shop for the Lunar New Year Wednesday in Beijing, China.

Economists are concerned about what the slowdown means for investment in the future, whether new projects will be undertaken in manufacturing companies and in factories. If not, it will translate into more job losses and erase any optimism about a rebound in 2009.

Since 2001, China has been used to double-digit growth as consumers buy Chinese goods. However, the export sector was hit hard in late 2008, with December exports down 2.8 percent.

Consumer spending has mostly held up in China, as people there do not carry as much debt as their American counterparts and can continue to spend.

Consumer confidence, however, is a problem, said Dong Tao, Asia chief economist for Credit Suisse. Infrastructure is the only thing driving the Chinese economy, Dong said.

Tens of thousands of Chinese factories have closed, millions of people are looking for jobs and an untold number of migrants who can't find work may be leaving cities for good because of the slowdown, which would have been unheard-of six months ago. Video Watch as migrants head home for the Lunar New Year »
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Fourth quarter numbers showed growth at 6.8 percent. Goldman Sachs predicted 6.5 percent, down from 9 percent in the third quarter.

For all of 2008, Goldman Sachs had predicted 8.8 percent, down from 11.9 percent in 2007.

China's economic growth slows - CNN.com


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## Neo

*Chinas economic growth slows sharply​*
** Bank of Japan cut its growth forecasts and predicts two years of deflation​*
BEIJING/TOKYO: Chinas economy slowed sharply in the fourth quarter and Japans central bank on Thursday predicted two years of deflation as Asias largest economies buckle under the strain of the financial crisis.

Leading companies also bore the scars of the downturn, with top cellphone maker Nokia reporting a greater-than-expected dive in fourth-quarter earnings and warning that market volumes would shrink 10 percent this year as consumers feel the pinch.

Indicating a return of the deflation which ravaged the Japanese economy in the 1990s, the Bank of Japan cut its growth forecasts, predicting the worlds number-two economy would contract for two full years until March 2010. Earlier data showed Japanese exports plunged a record 35 percent in December from a year before.

The figures showed a collapse in demand across the board with record falls in shipments to the United States, Europe and Asia. The Bank of Japan said it was holding interest rates just above zero and said it would buy corporate bonds to ease a severe funding squeeze which threatens to deepen the recession.

In China, the world economys main growth engine in recent years, data showed economic growth slowed to a seven-year low of nine percent in 2008. Chinas statistics bureau said the financial crisis was spreading and China would aim to stimulate domestic demand.

The global economy has deteriorated relentlessly since the credit crunch took a turn for the worse in September with the collapse of investment bank Lehman Brothers.

South Korea said its economy suffered its second-largest contraction on record in the fourth quarter, pushing Asias fourth-largest economy closer to its first recession since the regional financial crisis a decade ago.

Underlining the gloom sweeping east Asias export-driven economies, Sony Corp forecast an operating loss of nearly $3 billion for 2008/09, while in South Korea Hyundai Motor Cos profits fell and LG Electronics posted its first net loss in seven quarters.

In France, consumer spending, the driving force behind the countrys growth last year, fell by a larger-than-expected 0.9 percent on the month in December.

Separately, the Bank of France said it expected negative inflation in the euro zone and the United States for one or several months this year, but this did not amount to deflation.

A newspaper report said the German government was working on a new rescue plan for ailing banks, which could remove hundreds of billions of euros of bad assets from their books. reuters


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## wangrong

*China's textiles and garments export growth slowing*

*The growth in China's exports of textiles and garments fell to 8.2 percent last year from 18.9 percent the year before, according to the Department of Foreign Trade of the Ministry of Commerce. 

Total textiles and garments exports amounted to 185.17 billion U.S. dollars in 2008, according to the General Administration of Customs. 

The Department of Foreign Trade said export growth would slow further this year, but it gave no estimates. 

Exports would be hit by sagging demand in major markets, rising labour costs, and appreciation of the yuan, China's currency, which has gone up 27.4 percent against the U.S. dollar in the past three and half years. 

The Department of Foreign Trade said China's imports of garments in the first 11 months of 2008 totaled 2.09 billion U.S. dollars in value, up 16.6 percent over the same period the previous year. *


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## aimarraul

*China finally awards telecom operators 3G licences
*
Chinese government today officially awarded the long-awaited licenses for third generation (3G) mobile network to the country's three telephone operators.

China Mobile, the world's largest mobile phone carrier, got a license to deploy 3G networks based on TD-SCDMA, a home-grown 3G standard. Smaller rivals China Unicom and China Telecom were granted licences for WCDMA and CDMA2000 respectively.

The Chinese government hopes the new telecom investment following the 3G licensing would help stimulate the country's slowing economy and create more jobs.

Li Yizhong, minister of industry and information technology, said at an industry conference in December that China will spend 280 billion yuan on 3G networks in 2008 and 2009.

Chen Jinqiao, chief engineer from China Acedemy of Telecommunication Research under MIIT, further estimated the 3G network construction would attract 1.8 to 2 trillion yuan related investments.

China's 3G licensing has long been postponed due to the government's support of TD-SCDMA, which was believed less mature than its foreign rivals WCDMA and CDMA2000.


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## Nihat

> Deflation alarm as prices weaken further in China
> 
> BEIJING: Chinese inflation slowed further in January as activity in the worlds third-largest economy weakened, government data showed Tuesday, prompting economists to warn deflation was imminent.
> 
> The consumer price index, the main gauge of inflation, was one percent in January, down from 1.2 percent in December, the National Bureau of Statistics said Tuesday. Januarys inflation figure was the lowest since July 2006, when consumer prices also rose 1.0 percent from a year earlier.
> 
> Inflation was dropping speedily towards zero on a mixture of precipitous declines in global crude prices and a lack of momentum at home, economists said.
> 
> In an ominous sign of things to come, producer prices, which measure trends at the wholesale level, fell 3.3 percent in January, the second straight drop after a 1.1 percent drop in December, the state-run Xinhua news agency said.
> 
> The key figure that analysts look at in most economies is core inflation, which does not include food and energy prices, because they are considered too volatile. China does not have a precise equivalent for core inflation, but the index that comes closest  for non-food prices  was down 0.6 percent in January from the same month a year ago.
> 
> China started 2008 with rapidly rising inflation, and the consumer price index hitting a near 12-year high of 8.7 percent in February.
> 
> Leaders in Beijing made inflation control the top objective in the first half of last year, but priorities changed as the global economic crisis started having an impact.
> 
> Food prices were a major factor behind the spike in inflation at the start of 2008 but costs began to fall in the second part of the year.
> 
> There was continued relief for consumers in January. Although food inflation stood at 4.2 percent in January, the price of pork, the most important meat in China, was down by 13.3 percent.
> 
> Chinas economy grew by 9.0 percent in 2008, slipping back into single digits for the first time in six years, with expansion in the final quarter just 6.8 percent. Compared with December, consumer prices in January rose 0.9 percent, the statistics bureau said.
> 
> Since part of the deflationary trends creeping into China have overseas origins, such as energy prices, there are limits to what the government can do about it. In an attempt to boost Chinas rural economy, the government has already introduced subsidies to help farmers buy more durable consumer goods.
> 
> Reflecting this, inflation in January was up 1.5 percent in the countryside, compared with a 0.7 percent rise in the cities. afp



Daily Times - Leading News Resource of Pakistan


A very similar scenario emerging in India too , deflation causes more damage to Growth prospects than Inflation.


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## wangrong

*China's basic medical insurance system covers 1 bln people *

China's basic medical insurance system covers more than 1 billion of the country's 1.3 billion population, a report issued by the Ministry of Health said Monday. 

The rural cooperative medical insurance system, launched in 2003 to offer basic health care to rural residents, covered 814 million, or 91.5 percent of its target population as of the end of last September, up 12.1 percent and 5.3 percentage points from the previous year's figures, the report said. 

Rural medical cooperatives have expanded by 278 from the 2007 figure to 2,729 counties, county-level cities and city districts. 

The government expanded the fund pool by doubling its share in 2008. 

Under the original scheme, a participant paid 10 yuan (about 1.46 U.S. dollars) a year, while the state, provincial, municipal and county governments supplied another 40 yuan to the fund. 

At present, the fund pool has been raised to 100 yuan, with a split of 20 yuan from the participant and 80 yuan from the governments. 

When rural residents fall seriously ill, the pooled funds cover part of their medical costs. Coverage varies by illness and actual expenses. 

A total of 71 billion yuan was pooled by the fund in the first nine months last year, compared with only 42.8 billion yuan in 2007. 

The fund paid out about 42.91 billion yuan over the first nine months in reimbursements, benefiting 370 million people, the ministry's figures showed. 

China's soaring medical fees and low medical insurance coverage has prompted the government to set up a nationwide safety net of minimal medical insurance, which currently includes the rural medical scheme, the basic medical insurance for urban employees, and the unemployed, as well as medical aid for the poor in both rural and urban areas. 

As of 2007, the basic medical insurance for urban employees covered 180 million people nationwide, the report said. 

It noted the basic medical insurance for urban residents in general, which mainly targets unemployed urban residents, had been carried out on a trial basis in 79 cities, covering 42.91 million people by the end of 2007. As another 229 cities adopted the practice in 2008, the number of peopled covered by such insurance also grew significantly. 

The government spent 1.83 billion yuan in medical aid to 4.47 million urbanites and 3.26 billion yuan to 48.69 million rural citizens with financial difficulties in the first three quarters of last year, according to the report. 

The State Council, or Cabinet, promised earlier this year the country would increase the basic medical insurance coverage of rural and urban population to at least 90 percent by 2011. Each person covered by the system would receive an annual subsidy of 120 yuan from 2010.


----------



## wangrong

*China Minmetals to buy OZ Minerals *

Metal trader China Minmetals Corp is planning to buy Australian mining firm OZ Minerals Ltd for A$2.6 billion ($1.7 billion) in cash to ensure adequate supplies of non-ferrous metals. 

The deal, scheduled for completion in June, is, however, subject to approval by Oz Minerals' shareholders and respective governments. 

Minmetals is offering 82.5 cents for each share of OZ Minerals, a 50 percent premium over its last traded price on Nov 27, the Australian miner yesterday said in a statement. 

The offer has been recommended by the board of OZ Minerals, which is also the world's second-largest zinc miner. 

The acquisition of the Australian company, which owns copper, lead, zinc, gold and silver mines, is expected to help the Chinese company secure its supply of resources, said Jiao Jian, a senior Minmetals official. 

The Melbourne-based OZ Minerals operates the Century and Rosebery zinc and lead mines in Australia, the Sepon copper and gold project in Laos and the Golden Grove copper, gold and zinc project in Western Australia. It also owns the Prominent Hill copper and gold mine in South Australia and the Avebury nickel mine in Tasmania. 

The deal is expected to come as a boon to the debt-laden OZ Minerals. Its market valuation has decreased by A$6 billion since it was formed last July and is seeking to refinance A$1.2 billion of debt by Feb 27. 

"OZ Minerals has been working with its financiers and progressing on various funding options to repay debt and maximize value for shareholders while providing greater certainty to employees and suppliers," Chief Executive Officer Andrew Michelmore said in the statement. "This offer can resolve investor uncertainty." 

The company's shareholder meeting in May is expected to decide whether the deal would go ahead or not. 

Minmetals' decision to bail out a troubled Australian miner comes close on the heels of Aluminum Corp of China's decision to invest $19.5 billion in Rio Tinto Group. 

The company's sales revenue rose 28 percent year-on-year to $27.7 billion in 2008. 

The deal is also subject to approvals from Australia's Foreign Investment Review Board and Department and China's National Development and Reform Commission, the Ministry of Commerce, the State Administration of Foreign Exchange and the State-owned Assets Supervision and Administration Commission. 

OZ Minerals is being advised by Caliburn Partnership and Goldman Sachs JBWere. Minmetals is being advised by UBS Investment Bank.


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## wangrong

*Chinese mining giant to inject $19.5 bln into Rio Tinto *

China's mining giant Aluminium Corporation of China (Chinalco) announced here on Thursday it will inject 19.5 billion U.S. dollars in cash into Rio Tinto. 

The cash injection is regarded as "firepower" for Rio Tinto, against the global economic downturn, Tom Albanese, chief executive of Rio Tinto, said. 

Xiao Yaqing, president of Chinalco, said following the signing of an agreement on investment that the investment is a show of confidence in both China and the world, adding that "the strategic partnership with Rio Tinto will prove to be valuable and successful." 

As the leading Chinese diversified resources company, Chinalco's investment puts more emphasis on potential future values than on short-term returns, Xiao said. 

The transaction will forge a pioneering strategic partnership through the creation of joint ventures in aluminium, copper, and iron ore as well as the issue of convertible bonds to Chinalco, which would, if converted, allow Chinalco to increase its existing shareholding in Rio Tinto to about 18 percent. 

The transaction is still to be approved by shareholders of Rio Tinto, governments and other regulators. 

Albanese said the transaction will position Rio Tinto to lead the resources industry into the next decade and beyond by ensuring the continuity of its strategy. 

The new partnership with the Chinese company "will benefit from Chinalco's strong relationships within China, which Rio Tinto believes will continue to be the main driver of growth in commodity markets over the longer term," Albanese said. 

He said the Chinalco relationship will also help Rio Tinto to seek project funding from Chinese financial institutions.


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## wangrong

*Who's next to swap currency with China? *

More countries and regions, especially China's trading partners in the Association of Southeast Asian Nations (ASEAN), will step up to sign currency swap agreements with China amid the global economic downturn, economic experts said. 

The People's Bank of China (PBOC), China's central bank, had signed bilateral currency swap agreements with Malaysia, South Korea and China's Hong Kong Special Administrative Region in the past two months, totaling 460 billion yuan (67.3 billion U.S. dollars). 

The move aimed to promote trade and investment to boost economic development, said the central bank. 

ASEAN countries which "suffered from the 1997-98 Asian financial crisis" are more likely to be the next ones to establish a currency swap with China, said Zhao Xijun, professor of finance at the Renmin University of China. 

Chai Yu, director of Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences, pointed out that a number of countries are willing to sign currency swap agreements with China," especially the eight neighboring countries that had signed currency settlement agreements with China", including Russia and Vietnam. 

* WHY CURRENCY SWAPS? *

Many Asian countries and regions had started to focus on regional cooperation to avoid a repeat of the financial crisis that rocked the region in 1997, especially in times of global financial downturn. 

In 2000, ASEAN members, together with China, Japan and South Korea, launched the Chiang Mai Initiative, a network of bilateral currency swap agreements to enhance monetary cooperation. 

"Bilateral currency swap agreements help to keep a stable financial and monetary system and avoid exchange rate risk," said Zhao Xijun. 

The two sides could provide financial aid to each other when facing "short-term liquidity needs", said an unidentified sources with the PBOC. 

The agreements would also enhance bilateral trade by increasing import demand of commodities from the opposite side and saving the exchange cost for the exporters from both sides, said sources. 

Conducting currency swap with other countries shows China's fulfillment of its responsibility amid the global crisis and its contribution to a stable regional currency system, said Zhang Yansheng, head of the International Economic Research Institute under the National Development and Reform Commission. 

*WHY CHOOSE CHINA? *

"China's trading partners have been confident about the stability of both the yuan and China's economy," said Zhang, noting that China's economy is basically sound with adequate foreign exchange reserves and a stable currency. 

China has been the world's top foreign exchange owner as its foreign exchange reserves climbed 27.3 percent in 2008 to 1.9 trillion U.S. dollars, according to PBOC figures. 

China has also maintained its status as the fastest growing economy despite the fact that its economic growth slowed to nine percent last year, and economists believe that China will be the first to revive from the global crisis. 

"Currency swaps have promoted the use of the yuan in international finance and trade through the recent agreements," Zhao said. 

However, experts also point out that the yuan still has a long way to go to become a new world currency. 

China would consider the current situation of bilateral trade, investment and economic cooperation, as well as the stability of the financial system when picking its next partner, said Chai Yu. 

The three currency swap contracts have an effective period of three years, and both the scale and the length of agreements could be extended upon agreement by both parties, said Chai.


----------



## wangrong

*Use of forex reserves for energy fund studied *


China is considering using part of its huge foreign exchange reserves to set up a fund for overseas energy exploration and acquisitions as part of a state plan to encourage offshore expansion, the nation's top oil producer said Feb.17,2009. 

China will also offer subsidies and capital injection to firms which make overseas oil investments, China National Petroleum Corp said on its Website, citing a three-year state energy plan. 

It has been long suggested by experts that China tap its US$1.95 trillion reserves, the world's biggest, to buy resources abroad. CNPC's remark coincided with an article in Outlook, Xinhua's weekly magazine, published yesterday. 

"It's foreseeable that China's economic growth would remain fast over a very long period, which means it has to increasingly rely on external resources. (China) should take advantage of the current weak commodity prices in global markets by boosting certain strategic resource imports and converting some capital reserves into resources reserves," Outlook said in the article on how China could make better use of its forex reserves. 

Crude oil price has tumbled over 70 percent from the all-time high of US$147.27 a barrel in July last year. 

China aims to boost crude oil production to 192 million tons and natural gas output to 86 billion cubic meters in 2009, up 1.2 percent and 13 percent, respectively from 2008, CNPC said. The government has also set 2010 and 2011 targets of 196 million tons and 198 million tons for crude, and 105 billion and 120 billion cubic meters for gas, it said. 

China also targets a total refining capacity of 440 million tons by 2011, CNPC said. It would push forward joint-venture refinery projects with companies from Venezuela, Qatar and Russia which could supply crude. 

China processed 342 million tons of crude in 2008, with an estimated capacity of 396 million tons. 

There are also plans to build liquefied natural gas receiving terminals in Qingdao, Ningbo, Tangshan and Zhuhai, and boost the capacity of the strategic petroleum reserves to 44.6 million cubic meters, according to CNPC.


----------



## Omar1984

Chinese trade city a magnet for Arabs, Africans

YIWU, China: A small trade city in eastern China has become a magnet for Arab and African business people looking to purchase goods at what is the worlds largest wholesale market for small products.

The effect of the influx on Yiwu is visible as soon as you step off the plane, with airport billboards in Arabic and the city boasting the biggest mosque in China, as well as a district full of Middle Eastern restaurants. Annick Ibrahim, a retailer from Nigeria, discovered the market city three years ago.

I now come here regularly to buy various products, presents and household items, she said. The quality is good because they are used to selling things to Westerners, and prices are much more attractive than European markets. In the West, Chinas appetite for Africas oil and other natural resources has stolen the headlines. But it is markets such as those in Yiwu that illustrate a greater depth to the trade relationship, as China feeds Africa with an abundance of cheap goods.

Sunda Andre, who works for a goods shop in Angolas capital Luanda and now lives in the southern Chinese city of Guangzhou, says she finds everything she wants in Yiwu.

Good quality, good prices, we dispatch one container a year, she said.

An annual trade fair in October saw a rise in orders from the Middle East and Africa, according to Li Xuhang, vice-mayor of the city, just as demand from Western and many Asian countries dropped due to the global economic crisis.

As a result, authorities here are now devoting more and more time to emerging countries such as Brazil and Russia as well as Arab and African nations  and the latter have reciprocated. Out of 10,000 foreigners living in Yiwu, around 3,000 are from Arab countries, and many others are from Africa, Li said. Although he had no specific numbers of Africans in Yiwu, Li said at least 300 were from Mauritania.

El Moctar Ould Khalifa is part of the Mauritanian community, and was one of many Africans who came to China to study thanks to scholarships from Beijing.

At the end of the 1990s, as he was studying for a PhD in the Chinese capital, the young man and two Mauritanian friends would earn extra money every year by translating for businessmen at an annual trade fair in Guangzhou.

They then started getting their own contacts, set up fax machines in their university rooms and worked as middlemen between foreign buyers and sellers in China. In 2000, they moved to Yiwu and launched their own business, an export-import company headquartered in Nouakchott, the capital of Mauritania.

Their made-in-China tea, batteries, textiles and soap are now distributed in the vast majority of west African countries near Mauritania, under their own brand El Hella. A lot of Africans came here for counterfeit goods, but we managed to establish our brand... even though it is a little bit more expensive, El Moctar said. 

The three associates now have nice little assets and dispatched 700 containers to Africa in 2008 from various parts of China  160 of which came from Yiwu. 

They dream of establishing factories in Africa, but the current situation is not yet secure enough, El Moctar said. The workforce (in Africa) might be cheaper, but it poses more problems. 

Technology and raw materials are also in short supply, he said. Unlike in Yiwu, where seemingly everything is available, from beach bags meant as souvenirs from the West Indies to a Milanese key-ring or traditional African attire. Overall, trade between China and Africa grew 45 percent last year to $106.8 billion, and is up from just under $40 billion in 2005.

Daily Times - Leading News Resource of Pakistan


----------



## Nihat

*VIEW: Crisis and change in China David Dollar *

More of Chinas growth in the future will depend on service industries. In manufacturing China has used foreign trade and investment to create highly competitive markets with rapid productivity growth. However, services remain relatively backward and inefficient

This is not the coming out party that China envisaged. Just as China emerges as the largest exporter in the world, the global market collapses and the world turns to China to offer a reprieve. Chinas export machine is in a stall. Its stimulative measures will help, but may not be enough to generate the growth that the world and Chinese people have come to expect.

Each months data are most disheartening; Januarys export figure showed an 18 percent decline from the year before. More alarming was the 43 percent drop in imports  many of those imports are parts and material for future processing, and their disappearance signals worse export performance in the months ahead. The government estimates that already 20 million migrant workers have lost jobs in manufacturing and construction.

Painful as it is, the adjustment going on in China is necessary for the future healthy development of the economy. The trick is managing the adjustment so that its not too rapid or disruptive.

In recent years half of Chinas output has gone to investment and net exports. Yet investment and net exports cannot be a source of growing demand forever. Trading partners, especially the US, cannot go on borrowing forever to cover consumption. The clever financial engineering disguised this for a while, but eventually the imbalances were exposed.

As demand for imports from the US and other deficit countries dropped sharply, this reduced demand for Chinas exports, with quick spill-over effect on construction of both factories and residences. Growth of investment in the real estate sector dropped to zero in the last months of 2008. Steel production was down 20 percent from the year before; electricity use, down 10 percent. These are indicators that the old model of growth based on exports and investment hit a wall.

Alarmed at these declines, the government quickly put together a 4 trillion yuan stimulus package, worth US$586 billion, mostly of infrastructure projects. Some pundits immediately criticised this as an attempt to hang on to the old model, but those critiques are unfair.

First, there have been few efforts to try to maintain exports, with the recognition that they do not make sense with current global conditions. Second, the infrastructure programme contains a lot of projects aimed at strengthening consumption and quality of life: high-speed passenger rail, urban public transport, wastewater treatment and other environmental cleanup. However, all the details are not worked out yet, and there are some risks.

In the Asian crisis of 1997-98, China stimulated its economy with a lot of infrastructure projects aimed at bottlenecks in roads, seaports, airports and power. Now, there are no major bottlenecks in those areas, yet some local governments would love new projects, even if they have little future payoff. So, the challenge is keeping the stimulus programme focused on legitimate future needs, not white elephants.

Another concern about the stimulus package is that it aims at limiting the damage in the industrial sectors. Of course, the government wants to avoid allowing those sectors to decline too rapidly. But over time one would want relative decline of industry and a shift in the growth model.

The other half of Chinas GDP represents consumption. The half of the population that lives in rural areas consumes 9 percent of GDP; the urban half about three times more (26 percent). Government consumption  which includes the public spending on health and education  is only 13 percent. Both the welfare of Chinese people and sustainable long-term growth depend on increasing all those shares.

The government has measures in all these areas: programmes to subsidise appliance purchases by rural households; stimulus to the real estate sector, along with all the associated purchases of household items; 850 billion yuan over three years to spread health insurance to 90 percent of the population.

These programmes all go in the right direction, and the issue is simply are they big enough to maintain a healthy rate of growth. Simple math shows that it will be hard to get growth out of consumption increases over one year. If rural real consumption grows 10 percent, which would be great in an overall contractionary environment, that adds 1 percentage point to GDP growth. An increase of 20 percent in government consumption adds 2.6 percentage points to growth.

What all this adds up to is uncertainty about Chinas growth rate in 2009. The consensus view is that the fourth quarter of 2008 and first quarter 2009 will be the bottom of the trough  though dont be surprised if the first quarter growth rate is below last quarters 6.8 percent year-on-year change. The consensus forecast for 2009 is still 7 percent.

Two caveats: There are a wide range of views, from 5.5 percent up to 8 percent; and, the consensus forecast for 2009 has been consistently marked down over the past year as new information, all bad, has become available.

This leaves the question of how much China can contribute to global growth and stability. The first task is to limit the decline in Chinas own growth. In academic circles there are some negative predictions that Chinas growth could decline to 2 or 3 percent in 2009. That would be a shock to global confidence and a further blow to the commodity-exporting developing countries that send products to China. The negative view assumes that commercial investment will drop sharply in this environment, so that even with enhanced public investment in infrastructure, the net result for investment is zero growth.

Yet China enters this crisis in excellent fiscal shape; hence it has huge potential to increase transfers through its minimum income support and other safety nets, build up health and education, and follow through on infrastructure projects. Hence, if growth continues to falter, my advice is, think big when it comes to government programmes and spending this year.

A second key task for China is to keep open its trade regime and look for opportunities to liberalise further. Chinas merchandise trade is quite open compared to other developing countries, and through its World Trade Organisation commitments, the country has taken initial steps to open service markets. It would be a smart move to open these service markets further, including sectors like financial services, logistics, airlines, media, telecom and transport. In practice, this requires more openness to direct foreign investment.

While its a bold move to liberalise during a crisis, there are two good reasons for China to consider: First, global rebalancing will result in Chinas trade surplus gradually declining. If service imports are rising rapidly, then the adjustment can go hand in hand with moderate expansion of manufacturing exports. If imports are not rising, however, then the adjustment may force a painful absolute decline in manufacturing. Second, more of Chinas growth in the future will depend on service industries. In manufacturing China has used foreign trade and investment to create highly competitive markets with rapid productivity growth. However, services remain relatively backward and inefficient.

More openness and competition would create the same dynamism in services that China has already in manufacturing. Without that, the growing share of services in the economy could go together with a secular decline in overall growth.

The long-term health of both Chinas economy and the global economic system largely depends on whether China successfully uses the crisis to make these needed adjustments. YaleGlobal

David Dollar is World Bank country director for China and Mongolia, based in Beijing.


Daily Times - Leading News Resource of Pakistan


----------



## Neo

*China to spend $26 billion on commodity reserves​*
BEIJING (March 06 2009): China unveiled plans to boost farm support spending by 20 percent this year and allot $26 billion to bulk up its reserves of commodities from wheat to oil to steel in order to maintain production and smooth out prices.

In statements at the start of the National Peoples Congress, key government bodies outlined their strategies for improving rural income and keeping major industries afloat during a global recession, measures that may stoke commodity markets that are watching intently for any signs of improved Chinese demand.

The National Reform and Development Commission pledged to increase spending on agriculture, rural areas and farmers by 120.6 billion yuan to 716.1 billion yuan ($104.6 billion) and raise minimum wheat and rice prices by 0.22 and 0.26 yuan per kilogram respectively, or about 13 to 14 percent.

It also promised to continue with a host of measures to keep agricultural prices steady, including the use of price floors, actively managing state stockpiles and trade policies.

"After five years of bumper harvests, it will be very difficult to keep grain production growing steadily," the NDRC said. It pledged that grain acreage would be no less than last year and overall output would be kept at 500 million tonnes. The Finance Ministry said it will raise spending on reserves of grain, edible oils and materials by 61 percent to 178.045 billion yuan ($26.0 billion), or 4.1 percent of its budget.

That includes 78.341 billion yuan ($11.5 billion) to stimulate domestic demand by expanding reserves of important materials, such as grain, edible oils, crude oil, non-ferrous metals and speciality steel, and developing storage facilities. Direct subsidies to grain producers will also rise 25.8 percent to 19 billion yuan, the ministry said.


----------



## Omar1984

Iran Welcomes Railway Link to China 

TEHRAN (FNA)- Iranian Foreign Minister Manouchehr Mottaki on Wednesday welcomed construction of a railway to link Iran to China via Kyrgyzstan, Tajikistan and Afghanistan. 

Mottaki made the remarks while addressing participants in the 10th Summit of the Economic Cooperation Organization here in Tehran today. 

Also during his address, Mottaki pointed to the draft final statement of the Summit and said, "Transportation, energy, agriculture, industry, tourism and expansion of cooperation among ECO members are among the issues touched in the final statement." 

He noted a report presented to the Summit by the head of ECO Development and Trade Bank on the organization's performance and the current world economic crisis which also proposes ways to change threats to opportunities, and said that the members had agreed during the Summit to strengthen cooperation on transportation, build Iran-Pakistan-Turkey railway, reconstruct Pakistan railway and increase the capacity of Sarakhs station. 

The Iranian minister further pointed to the construction of a rail link connecting China, Kyrgyzstan, Tajikistan, Afghanistan and Iran as among the topics raised during the summit, and said that the issue is among the items included in the final statement.

Fars News Agency :: Iran Welcomes Railway Link to China


Great news for both China and Iran


----------



## Neo

*Chinas exports plunge again, but car sales rise​*
BEIJING: The decline in Chinas exports accelerated in February, but Asias bleak picture was tempered by other news Wednesday of a jump in Chinese auto sales and a smaller-than-expected drop in Japanese machinery orders.

Chinese trade figures highlighted again the regions dependence on Western consumers. Exports in February plunged 25.7 percent from a year earlier, worse than Januarys 17.5 percent decline, according to customs data. That adds pressure on Beijing to move quickly to carry out a multibilliondollar stimulus package aimed at pumping up the worlds third-largest economy.

The collapse in global demand has battered export-driven Asia, forcing employers to slash output and jobs in China, Japan, South Korea and other economies.

Chinas imports fell by 24.1 percent, less than Januarys stunning 43 percent plunge but still a blow to its trading partners, especially other Asian nations that supply its export industries with components and raw materials. The commerce minister warned Tuesday the slump is unlikely to end soon, saying trade will be a grim picture in coming months.

Chinas trade surplus narrowed to $4.8 billion in February as exports fell to $64.8 billion and imports dropped to $60 billion. Its politically sensitive trade gaps with the United States and Europe also shrank.

The collapse in global demand for Chinese toys, shoes and other goods has thrown 20 million migrants out of work. Communist leaders worry that more layoffs could spark unrest and are promising to spend heavily to create jobs. Chinas four trillion yuan ($586 billion) stimulus is meant to reduce reliance on exports by pumping money into the economy through higher spending on public works.

In a positive sign for China, sales of domestically made vehicles rose 25 percent in February from a year earlier to 827,600 units, following a tax cut on smaller cars, the China Association of Automobile Manufacturers reported.

Also Wednesday, Chinas government said spending on factories and other fixed assets picked up in January and February, rising by 26.5 percent as its stimulus sparked a jump in investments by state companies. Spending by government companies rose 35.6 percent, the National Bureau of Statistics reported. Overall growth was up from Decembers 21.9 percent and the full-year 2008 rate of 25.5 percent.


----------



## Neo

*Chinas stimulus package ​* 
ARTICLE (March 14 2009): How large is Chinas economic stimulus package? This question not only occupied the delegates of the National Peoples Congress, whose annual session ended Friday in Beijing, but also representatives of foreign companies who want to know what is going to be in the picture for Chinas economy. In November, the programme designed to stimulate the economy was announced in the amount of 4 trillion yuan (586 billion dollars).

But concrete details were still lacking as congress delegates demanded "more transparency." However, they approved the package together with the state budget on Friday. But the real size of stimulus package still lies pretty much in the dark. Less than half comes from state coffers as the government has decided that the bulk is to be secured through bank loans. In this context, it remains unclear what proportion of these loans would be regular ones and how much could be best described as "secured through finance politics."

"It is not possible to tell precisely how much bank lending targets stimulus projects - which is one of the downsides of the current plan," the business magazine Caijing said recently. The amount of lending has already exploded since the beginning of the year, although not necessarily all because of stimulus measures.

On one hand, previous loan restrictions have been relaxed. On the other hand, many previously "hidden loans" circumventing the restrictions suddenly have appeared as legitimate in the books, as foreign experts point out. A genuine stimulus package to the tune of 4 trillion yuan to be injected over the next two years would account for 6 per cent of Chinas gross domestic product (GDP) in 2009 alone.

But the central government only provides for 1.18 trillion yuan of the whole package. The rest is supposed to come from other sources like loans by banks, as prime minister Wen Jiabao explained on Friday. The 1.18 trillion yuan from state coffers are broken down to 104 billion yuan in the last quarter of 2008 and 487 billion yuan this year. The rest is to be spent in 2010.

Together the fiscal stimulus this year from these two spending measures will be 590 billion yuan, or 1.8 per cent of expected GDP. Prime Minister Wen Jiabao enthusiastically pointed at tax reductions of "up to 600 billion yuan" on top of that, but without mentioning that a major part of this would be tax losses stemming from the economic downturn.

"We estimate that the [real] stimulus from new discretionary tax reductions since the fourth quarter of 2008 is about 300 billion yuan, or about 0.9 per cent of GDP, and most of it will only benefit the corporate sector," China experts at the Swiss bank UBS AG said in a recent report. They also estimated that another 0.3 per cent stimulus effect on the GDP would be derived from increased social spending - far beyond the normal increase - on health, education and social welfare.

"Therefore, from the central governments budget, the discretionary fiscal stimulus this year, including the disbursement in the last quarter, is just about 3 per cent," the UBS experts calculated - only half of the 6 per cent that a full 4 trillion yuan package would have had. While Chinas provincial governments are supposed to also contribute to the programme, their coffers have practically dried up, and they are not allowed to raise money by themselves.

The combined 200 billion yuan that they may raise though bonds this year as an exception may not even cover their losses. So the only way for more stimulus will be the banks, which, after costly recapitalization and restructuring a few years ago, are in a comfortable position to lend money. Unlike in the rest of the world, Chinas financial system has so far escaped the global financial crisis unscathed.

A financial crisis does not exist in China, only a crisis of the real economy brought on by slumping global demand for products made in China. But with massive investment policies and export promotion, China has been resorting to instruments that would have made more sense before the global economic meltdown.

More than ever the manufacturing industry is faced with the risk of overcapacity. Instead of measures to promote exports, which nose-dived by another 25 per cent since February, only a determined stimulation of domestic consumption might compensate for this decline.

But experts also warned of a lack of transparency if the government mainly relies on banks for the stimulus rather than running a larger explicit budget deficit. Bank financing makes it less transparent how much spending takes place in relation to various stimulus projects. "If this approach is pursued heavily, it could even put at risk banks balance sheets, their reputation and investor confidence," the UBS report warned.


----------



## Neo

*Iran and China firms sign $3 billion LNG deal​*
TEHRAN (March 15 2009): Irans state-owned gas company and a Chinese consortium Saturday signed a multi-billion dollar deal to produce liquefied natural gas in the Islamic republics South Pars field, a report said. The deal, worth 3.39 billion dollars, was signed by Iran LNG company with the Chinese consortium for an annual production of 10.5 million tonnes of LNG, the state broadcaster reported.

It did not reveal the name or give any details of the Chinese consortium. "According to this contract, building gas liquefying lines in phase 12 and another block of South Pars gas field will be handed to the Chinese consortium," the television said. The gas field is located in the Gulf.

It added that the project would be implemented in three years and that an unnamed European firm would join the Chinese consortium in three months. In January, Iran and China signed a separate 1.76 billion dollar contract for the initial development of the North Azadegan oil field in western Iran. Western oil companies have refused to invest in Iran because of the controversy over its nuclear energy programme and Tehran has increasingly turned to Asian companies.

Iran holds the worlds second-largest gas reserves and has significant economic ties with China - a veto-wielding member of the UN Security Council, which has imposed sanctions against Tehran over its refusal to halt sensitive nuclear work.

Iran said on Wednesday that French energy giant Total would have no "active role" in developing phase 11 of the offshore South Pars gas field and that a new partner had been found for the project. The development of South Pars field, which holds about eight percent of world reserves, has been delayed amid a lack of investment in a country faced with severe gas needs of its own in winter.


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## Omar1984

Shaanxi buys 77,000 tons of lead, zinc

China's Shaanxi province is buying a total of 77,000 tons of refined lead and zinc from four local smelters as an ad hoc reserve to support smelters that suffer from weak demand, an official at one of the smelters said on Thursday.

Shaanxi Non-ferrous Metals Company, owned by the Shaanxi government, has agreed to pay 11,200 yuan ($1,640) per ton to buy refined zinc and 12,900 yuan a ton for refined lead, higher than 10,750 yuan and 12,600 yuan, respectively, traded in Shanghai on Thursday.

The State Reserves Bureau, the national commodity buyer, bought 159,000 tons of zinc from Chinese smelters this year, as part of a plan to support smelters and the prices.



Shaanxi&#160;buys 77,000 tons&#160;of lead, zinc


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## Omar1984

Chinese firm wins $16m Philippine road project

A Chinese company has won a 776.89-million-Philippine Peso ($16.08 million) bid for a road project in the Philippines, it was revealed Thursday.

The Fujian-based China Wuyi Co, a domestic construction firm, said it won the project, a 41.466-kilometer rural road in Antigue Province in central Philippines, co-funded by the Japan International Cooperation Agency and the Philippines government. The Japan International Cooperation Agency is to provide 83 percent of the money.

Once the final contract was sealed, the company would have to finish the construction within 24 months.

The company's shares closed at 6.70 yuan on Thursday, up 3.08 percent.



Chinese firm wins $16m Philippine road project


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## jetLi

gpit said:


> Good news.
> 
> Freedom of speech can only be implemented in a true and mutual-responsible sense when the overwhelming majority of the citizens are literate.
> 
> In China, due to its uniqueness, it will start from internet world, as I repeatedly said/predicted many times.



undeadly, Chinese internet users hate America first, France second, Japan third, German 4th


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## linkinpark

Croos-posting from other thread



> China's U.S. Debt Quandary
> 
> 
> Gady Epstein 03.19.09, 6:00 PM ET
> 
> U.S. investors may have cheered the Federal Reserve's decision this week to pump more than 1 trillion new dollars into the economy, but at least one faction in China was on the verge of tears.
> 
> "I want to cry, really want to cry," wrote one Beijinger on Thursday, posting on one of China's most popular portals, Sina.com. The problem was that by issuing more currency, the Fed was potentially weakening the U.S. dollar, making China's dollar-based investments worth less. "Those elites insist on buying American bonds."
> 
> One of "those elites" under fire is Premier Wen Jiabao. When he expresses public angst about the safety of China's holdings of U.S. debt, he is speaking partly to domestic critics who believe Chinese leaders have unwisely tied their country's fate to the U.S. economy. Many of the critics may be crackpots and conspiracy theorists, but they have a point.
> 
> They know that their government is now America's largest creditor, with more than half of its $2 trillion in foreign exchange reserves invested in Treasury securities and other U.S. government bonds. Some of these critics suspect that the Federal Reserve essentially prints more money not just to stimulate the economy, but also to devalue China's U.S. dollar portfolio, undermining a rival power.
> 
> It may be a paranoid theory, but it is a popular one. One of China's bestselling books in the past 18 months is Currency Wars, a conspiratorial screed that suggests that Western financial interests, including the Federal Reserve, seek to destroy the Chinese economy. The book has sold more than 1 million copies officially, and probably several million more pirated copies, and remains a bestseller now as economic conditions deteriorate.
> 
> Any leaders who choose to ignore this populist thinking risk being branded as sellouts. Last fall, as the financial crisis was unfolding, an incendiary letter circulated on the Internet claiming that a clique of Chinese elites, led by investment banker and former Premier Zhu Rongji's son Levin Zhu, formed a "foreign financial interest cartel" that has betrayed the interests of the Chinese people to enrich themselves and their cronies.
> 
> The letter named as co-conspirators the men running China's $200 billion sovereign wealth fund, whose disastrous investments in the Blackstone Group and Morgan Stanley have lost China billions. People's Bank of China Governor Zhou Xiaochuan, China's Ben Bernanke, was singled out for investing too much in Treasurys as the dollar was depreciating--more reasoning straight out of Currency Wars.
> 
> The believers are not just fire-breathing ideologues. "Many technocrats believe in this argument that the U.S. is trying to screw over China by cheapening the dollar," says Victor Shih, a political economist and China specialist at Northwestern University. Shih learned of the influential reach of "Currency Wars" when he visited last summer with bureaucrats from the People's Bank of China.
> 
> "Many PBOC officials bought into the arguments of this book and I think they've been writing a lot of reports to Wen Jiabao saying we're holding a lot of dollars and we're exposed to this risk," Shih says. "And essentially that's true."
> 
> There's the rub. Almost by accident, the conspiracy theories cut straight to what many economists consider a fundamental weakness in China's monetary policy, and the leadership knows it. China has accumulated huge U.S. dollar reserves to keep the value of its own currency down, economists say, increasing its dependency on exports and decreasing its ability to invest more domestically.
> 
> "You're making your economy more dependent on the rest of the world," says Brad W. Setser, an economist at the Council on Foreign Relations who has closely monitored China's sovereign investments. "You're relying on demand from the rest of the world to maintain domestic employment rather than, say, running a fiscal deficit."
> 
> Now China is locked into a situation where it needs the U.S. economy to rebound, but as the U.S. spends trillions of dollars to make that happen, it devalues the one currency China is most heavily invested in and pegged against. That forces China to continue buying U.S. dollars both to keep the value of its currency down and to protect its portfolio, so China ends up helping finance the U.S. economic recovery plan.
> 
> According to Setser, there is "no good historical analogy" for this situation. Never before has the U.S. been so heavily financed by one country. That relationship has already been the subject of much hand-wringing in the U.S., but it may be an even more volatile political problem for China.
> 
> It's the old debtor's aphorism, writ on a sovereign scale: If you owe China $1 billion, it's your problem. If you owe China $1 trillion, it's China's problem.




China is helpless here.


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## wangrong

*China's central bank signs currency swap agreement with Indonesia *

The People's Bank of China (PBOC), the central bank, said Monday it signed a currency swap agreement with Bank Indonesia, the central bank of that country. 

The agreement allows for swaps of 100 billion yuan (14.7 billion U.S. dollars) or 175 trillion Indonesian rupiah over three years, which could be extended by mutual agreement. 

The PBOC has signed currency swap agreements with the Republic of Korea, China's Hong Kong Special Administrative Region, Malaysia and Belarus since the beginning of the global financial turmoil, totaling 480 billion yuan.


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## wangrong

*Central bank: China to continue investing in U.S. Treasury bonds *

China will continue investing in U.S. government bonds while paying close attention to possible fluctuations in the value of those assets, said a deputy governor of China's central bank here Monday. 

"Investing in U.S. Treasury bonds is an important component of China's foreign currency reserve investments," Hu Xiaolian, deputy governor of the People's Bank of China, told a briefing about President Hu Jintao's participation in the Group of 20 financial summit in Britain scheduled for April 1 to 2. 

"We are naturally relatively concerned with the safety and profitability of U.S. government bonds," she added. 

China's reserves hit a record 1.95 trillion U.S. dollars at the end of 2008, the largest in the world and far exceeding those of Japan, the second-largest foreign exchange holder, which had 1.03 trillion U.S. dollars. 

China has invested its huge foreign exchange reserves in low-risk but low-yield assets, such as U.S. government bonds. Treasury bond assets fluctuate during different periods, according to Hu. 

Treasury bond purchases would remain key to China's investment plans, but China would keep close watch on them, Hu said. 

Given that the U.S. dollar is still the leading currency used in the settlement, valuation and payment of international trade, China will pay closer attention to the supervision of the international monetary system based on the U.S. dollar, Hu said.


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## jetLi

Chinese shares up 0.5 pct on rising investor confidence 
Chinese shares up 0.5 pct on rising investor confidence_English_Xinhua

BEIJING, March 24 (Xinhua) -- Chinese equities rose for a seventh day, achieving a modest 0.56-percent gain Tuesday on investor confidence and bullish overseas markets, said analysts. 

The Shanghai index climbed 12.94 points to 2,338.42. The Shenzhen Component Index rose 0.78 percent, or 69.09 points, to 8,954.84. 

Gains outnumbered losses by 506 to 349 in Shanghai and 443 to 280 in Shenzhen. 

Combined turnover edged up to 228.29 billion yuan (33.43 billion U.S. dollars) from 227.4 billion yuan on the previous trading day. 

Investors took heart from Monday's move by the State Council (cabinet) to require its subordinate ministries and commissions, and the People's Bank of China (PBOC, central bank), to do more to stabilize the stock market. 

Investor confidence was also boosted after the PBOC and China Banking Regulatory Commission (CBRC) Tuesday urged financial institutions to further "adjust" their credit structure and promote stable and fast economic development. 

The two bodies jointly called for more loans for small and medium-sized businesses and expanded consumer credit for big-ticket items like cars, housing and education. 

Strong gains elsewhere, including in the United States and Hong Kong, also contributed to the uptrend, analysts said. 

Real estate stocks remained strong, climbing 1.27 percent in reaction to the PBOC-CBRC statement on consumer credit. Hainan Pearl River Holdings soared by the daily limit of 10 percent to 6.6 yuan and Shanghai Nine Dragon rose 7.58 percent to 5.39 yuan. 

Poly Real Estate Group, China's second largest developer, edged up 1.06 percent to 22.98 yuan. 

The medical sector rose 1.29 percent as investors bought shares in anticipation of gains after a long-awaited, detailed plan for China's medical reform. 

Topfund Pharmaceutical and Fuxing Pharmacy led the rise, surging 6.71 and 6.51 percent to 4.77 and 13.74 yuan, respectively.


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## jetLi

Bank of China says profit rises 14.42% in 2008
Bank of China says profit rises 14.42% in 2008_English_Xinhua

BEIJING, March 24 (Xinhua) -- The Bank of China (BOC), the world's third largest lender by market value, said on Tuesday that its full-year profit rose 14.42 percent to 64.36 billion yuan (9.33 billion U.S. dollars) in 2008. 

The total asset value was 6.95 trillion yuan by the end of last year, up 16.03 percent from a year ago. The bank's liability rose 16.63 percent to 6.46 trillion yuan. 

The bank attributed the profit rise to the increase in its business revenue, cost saving and the income tax reduction. 

The bank issued 3.3 trillion yuan of loans in 2008, up 15.63 percent year on year, and the bank's deposit jumped 15.95 percent to 5.1 trillion yuan, BOC said. 

Its core capital adequacy ratio was 10.81 percent, a high level among its peers, as a result of its continuous efforts in stepping up risk control, the bank said. 

The bank also raised its provision coverage ratio to 121.72 percent last year to prevent risks from non-performing loans. That's 15.35 percentage points higher than the 2007 level. 

The bank had greatly reduced its investment scale in subprime mortgage bonds in the United States last year, BOC said. 

It held 2.59 billion U.S. dollars of subprime mortgage bonds by the end of 2008, registering 1.08 percent of the bank's total investment in securities. The figure was 1.05 percentage points lower than a year earlier. 

Net interest income of the BOC rose 6.67 percent to 16.29 billion yuan year-on-year. Fee and commission income surged 12.42 percent to 3.99 billion yuan last year. 

The bank's shares rose 0.87 percent to 3.47 yuan Tuesday.


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## wangrong

*China unveils health-care reform guidelines *

China Monday unveiled a blueprint for health-care over the next decade, kicking off the much-anticipated reform to fix the ailing medical system and to ensure fair and affordable health services for all 1.3 billion citizens. 

The Central Committee of the Communist Party of China and the State Council, or China's Cabinet, jointly endorsed and issued the Guidelines on Deepening the Reform of Health-care System after more than two years of intense debate and repeated revision. 

By 2020, China will have a basic health-care system that can provide "safe, effective, convenient and affordable" health services to urban and rural residents, according to the tone-setting document. 

This will be supplemented by a more detailed implementation plan for the three years until 2011. The plan has yet to be published, but the State Council announced earlier this year an investment plan of 850 billion yuan (124 billion U.S. dollars) for the reform in three years. 

 The core principle of the reform is to provide basic health care as a "public service" to the people, which requires much more government funding and supervision. 

The document said the government role in "formulating policies and plans, raising funds, providing service, and supervising" must be strengthened in order to ensure the fairness and equity of the service. 

"This is the first time that basic medical services in China are clearly defined as a public service for all citizens, which is part of essential rights of the people," said Prof. Li Ling, of Peking University. 

The reform is aimed at "solving pressing problems that have caused strong complaints from the public," the document said, referring to long-standing criticism that medical services are difficult to access and increasingly unaffordable. 

The blueprint highlights the establishment of a basic health-care system to cover all Chinese citizens to be formed on the basis of systems of public health, medical service, medical insurance and medicine supply. 

The government will improve the public health network for disease prevention and control, health education, mother and infant health care, mental health and first aid services, according to the blueprint. 

Public, non-profit hospitals will continue to be dominant providers of medical services, while more priority will be given to the development of grassroots-level hospitals and clinics in cities and rural areas. 

Patients will be encouraged to use more grassroots-level hospitals and clinics, which can provide more accessible and affordable services, while comprehensive hospitals in big cities will be asked to provide more support to small, local hospitals in terms of personnel, expertise and equipment. 

The government plans to set up diversified medical insurance systems in order to have urban employees, urban residents who do not work and rural residents covered by some sort of insurance plan. 

The ratio of those covered by the basic medical insurance is expected to surpass 90 percent by 2011. 

The reform is also aimed at improving the medicine supply system so that public hospitals and clinics are supplied with essential medicines with prices regulated by the government, according to the blueprint. 

Other highlights include: 

- The government to enhance the management and supervision of the operation of medical institutions, the planning of health service development, and the basic medical insurance system. 

- Public hospitals to receive more government funding and be allowed to charge higher fees for treatment. But they will be eventually banned from making profits through subscribing expensive, sometimes unnecessary medicines and treatment, which isa common practice at present. 

- Central and local governments to increase investment in the public health sector, grassroots-level clinics, subsidies for public hospitals, and basic medical insurance systems. 

- Governments to increasingly regulate the pricing systems of medical services and medicines, with particular control on the price of basic services at non-profit hospitals and essential medicines those hospitals use. 

- Supervision of medical institutions, health insurance providers, and pharmaceutical companies and retailers to be strengthened. Governments will also tighten monitoring of drinking water and food safety, and safety in workplace.


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## Neo

*China exports fall ​* 
Saturday, April 11, 2009

BEIJING: Chinas vital exports fell 17.1 per cent in March, their fifth straight monthly decline, the government said on Friday, but the drop was not as sharp as the previous month.

The customs bureau data could provide hope that the impact of the world financial crisis on Chinas key export sector may be easing, but it was still too early to make a firm assessment, analysts said.

It certainly shows that exports remained weak. But the slowing pace is narrowing, which is a relatively positive sign at the moment, said Jason Xu, an economist with China International Capital Corporation in Beijing. Its hard to say it signals a trend as uncertainties remain ahead.

Marchs decline in exports, which totalled 90.29 billion dollars, followed a miserable February that saw a 25.7 per cent year-on-year dive the worst slump in more than a decade.

Imports in March plunged 25.1 per cent from a year earlier to 71.73 billion dollars, the customs bureau said 

This led to a 41.2 per cent year-on-year rise to 18.56 billion dollars for Beijings diplomatically sensitive trade surplus, according to the bureau.

Chinas massive export machine has been humbled since late last year as the world financial crisis hit overseas demand for products made on what has become known as the worlds factory floor.

The slowdown has led to the closure of thousands of exporting factories in the countrys southern and eastern manufacturing heartlands.

At least 25 million migrant workers from Chinas poor rural areas who normally find jobs in such factories are now unemployed, according to government data released last month.

Chinese authorities in November unveiled an unprecedented four trillion yuan (580 billion dollar) stimulus package to combat the crisis, and economists have said this has had some impact. Xu also pointed to some positive overseas factors.


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## aimarraul

China's GDP up 6.1% in Q1 2009
China's GDP up 6.1&#37; in Q1 2009

BEIJING -- China's economy expanded by 6.1 percent year-on-year in the first quarter of 2009, official data showed Thursday.

The quarterly growth was the slowest in the past 10 years as the global financial crisis continued to affect the world's fastest-growing economy. It was 4.5 percentage points lower than the first quarter of 2008 and down 0.7 percentage points from the previous quarter.

Gross domestic product (GDP) reached 6.5745 trillion yuan (about US$939 billion) in the first quarter, Ma Jiantang, director of the National Bureau of Statistics (NBS), told a press conference.

Industrial output grew 5.1 percent year on year in the first quarter this year, with a rise of 8.3 percent in March.

Consumer price index, a main gauge of inflation, fell 1.2 percent year on year in March. This was compared with a decline of 1.6 percent in February, the first monthly fall since December 2002.

China's producer price index (PPI) fell 4.6 percent in the first quarter year on year. However, the statistics agency did not give a year-on-year figure for PPI in March, but said it declined 0.3 percent in March compared with February, a smaller monthly rate of decline than in the previous two months.

Retail sales grew 15 percent to 2.94 trillion yuan (430.4 billion U.S. dollars) in the first quarter this year.

China has started to implement a 4 trillion yuan ($585 billion) stimulus package to counter the impact of the global slowdown, helping prompt a surge in lending in the first three months of the year.

"The overall national economy showed positive changes, with better performance than expected," the NBS said in a statement distributed ahead of a news conference.

"(We should) continuously improve macroeconomic policies and make efforts to realise sound and fast growth," it said.

Actually used foreign direct investment stood at 21.8 billion U.S. dollars, 5.6 billion U.S. dollars lower than the same period of last year.

In the first two months, the number of newly employed in urban areas reached 1.62 million, 210,000 fewer than the same period of 2008.

The per capita disposable income of urban residents rose 10.2 percent to 4,834 yuan for the first quarter. Deducting price factors, the increase reached 11.2 percent. That of rural residents also climbed 8.6 percent to 1,622 yuan.

The country's bank credit also grew in the first quarter. The narrow measure of money supply, M1 (cash in circulation plus corporate current deposits), was up 17.0 percent year on year to 17.7 trillion yuan.

The country's foreign exchange reserves rose 16 percent year-on-year to 1.9537 trillion U.S. dollars by the end of March.

Reactions: Like Like:
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## Omar1984

aimarraul said:


> China's GDP up 6.1% in Q1 2009
> China's GDP up 6.1% in Q1 2009
> 
> BEIJING -- China's economy expanded by 6.1 percent year-on-year in the first quarter of 2009, official data showed Thursday.
> 
> The quarterly growth was the slowest in the past 10 years as the global financial crisis continued to affect the world's fastest-growing economy. It was 4.5 percentage points lower than the first quarter of 2008 and down 0.7 percentage points from the previous quarter.
> 
> Gross domestic product (GDP) reached 6.5745 trillion yuan (about US$939 billion) in the first quarter, Ma Jiantang, director of the National Bureau of Statistics (NBS), told a press conference.
> 
> Industrial output grew 5.1 percent year on year in the first quarter this year, with a rise of 8.3 percent in March.
> 
> Consumer price index, a main gauge of inflation, fell 1.2 percent year on year in March. This was compared with a decline of 1.6 percent in February, the first monthly fall since December 2002.
> 
> China's producer price index (PPI) fell 4.6 percent in the first quarter year on year. However, the statistics agency did not give a year-on-year figure for PPI in March, but said it declined 0.3 percent in March compared with February, a smaller monthly rate of decline than in the previous two months.
> 
> Retail sales grew 15 percent to 2.94 trillion yuan (430.4 billion U.S. dollars) in the first quarter this year.
> 
> China has started to implement a 4 trillion yuan ($585 billion) stimulus package to counter the impact of the global slowdown, helping prompt a surge in lending in the first three months of the year.
> 
> "The overall national economy showed positive changes, with better performance than expected," the NBS said in a statement distributed ahead of a news conference.
> 
> "(We should) continuously improve macroeconomic policies and make efforts to realise sound and fast growth," it said.
> 
> Actually used foreign direct investment stood at 21.8 billion U.S. dollars, 5.6 billion U.S. dollars lower than the same period of last year.
> 
> In the first two months, the number of newly employed in urban areas reached 1.62 million, 210,000 fewer than the same period of 2008.
> 
> The per capita disposable income of urban residents rose 10.2 percent to 4,834 yuan for the first quarter. Deducting price factors, the increase reached 11.2 percent. That of rural residents also climbed 8.6 percent to 1,622 yuan.
> 
> The country's bank credit also grew in the first quarter. The narrow measure of money supply, M1 (cash in circulation plus corporate current deposits), was up 17.0 percent year on year to 17.7 trillion yuan.
> 
> The country's foreign exchange reserves rose 16 percent year-on-year to 1.9537 trillion U.S. dollars by the end of March.



Very good news for our best friend China. 
We Pakistanis are praying for China's success.


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## Screaming Skull

*China's GDP grows slowest in 10 years​*
BEIJING: Chinas economy, battered by collapsing exports, grew at the slowest pace in almost 10 years, probably marking its low point. Gross
domestic product expanded 6.1% in the first quarter from a year earlier, after a 6.8 % gain in the previous three months, the statistics bureau said in Beijing.

A 30% surge in urban fixed-asset investment in March and a jump in industrial output, both reported on Thursday, added to evidence that the governments 4 trillion yuan ($585 billion) stimulus plan is working. Premier Wen Jiabao cautioned that while the worlds third-biggest economy is in better-than- expected shape, China is yet to establish a solid foundation for a recovery.

Theyve stabilized the economy and now the challenge is to think about how to support consumption and how to support private investment, said Stephen Green, head of China research at Standard Chartered Plc in Shanghai.

Were still looking for stimulus measures to encourage consumption. The report follows a statement from US Treasury Secretary Timothy Geithner that China isnt a currency manipulator. His stance eases pressure on China to allow its currency to rise, which would hurt efforts to revive exports.

While stimulus measures have started to produce results, China faces faltering export demand, industrial overcapacity, unemployment and weak private investment sentiment, Wen said in a statement after a meeting of Chinas cabinet.
Industrial output expanded 8.3% in March from a year earlier, up from 3.8% in the first two months. Retail sales rose 14.7%. Consumer prices fell 1.2% in March from a year earlier, compared with a drop of 1.6% in February. Producer prices fell 6%, the most since Bloomberg data began in 1999.

Chinas expansion was the weakest since the fourth quarter of 1999, according to Bloomberg data, and less than the 6.2% median estimate of 13 economists.


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## Nihat

*
Will Chinese consumers rescue world economy?*


April 21, 2009 -- Updated 0729 GMT (1529 HKT)



(CNN) -- When CEOs and professional investors in developed economies go to bed these days, some may pray for protection from markets in turmoil, share prices in the cellar and angry financial gods bringing fire and brimstone with every check of their Bloomberg terminal or the front pages of The Wall Street Journal.
Multinational automakers and other global companies are banking on Chinese consumers.

Multinational automakers and other global companies are banking on Chinese consumers.
more photos »

"Spend, China," they whisper. "Spend."

The dream of China is the life preserver many multinational corporations are clinging to, not without some reason. The recent Shanghai Auto Show perhaps showed that like no other. More than half a million people attended, including 1,500 automotive manufacturers from around the world.

Carmakers decided to use Shanghai as the launching point for 13 new models, most notably Porsche introduced its first four-door sedan, the Panamera, flanked by Chinese models and surrounded by a rapturous crowd of the world press. It's telling that such an important debut took place in China, rather than the company's home in Stuttgart-Zuffenhausen, where the German automotive industry is being buffeted by the high winds of the credit crisis.

While the Big Three from Detroit are fighting for their lives, China has more than 100 domestic car makers competing with multinational carmaker to get a piece of the growing Chinese car market. For the first quarter of the year, 2.7 million cars were sold in China -- besting U.S. sales of 2.2 million for the first time to become the world's largest car market. Video Watch CNN's Emily Chang discuss China's burgeoning auto market »

General Motors may be on the verge of filing for bankruptcy protection, but it has one bright spot on its balance sheets - China, where sales are expected to rise 17 percent this year, according to Kevin Wale, chief executive of GM China. While analysts predict global car sales WILL fall more than 8 percent this year, sales in China grew 10 percent in March, according to the Chinese government. "You have to be here, and you have to be here in a serious way," Dieter Zetsche, Daimler CEO, told CNN.


The automobile industry's hopes for China are emblematic for nearly every industry in the world. A Nielsen consumer confidence index shows Chinese consumers are more optimistic than most consumers elsewhere, rating 89 points compared to the global average of 77.

But all is not well in China. Before Lehman Brothers went belly up last September, an open question among financial academics was the issue of "decoupling"- the belief that developing markets such as China could absorb a drop in export business with increased domestic spending. But the ripple effect of Lehman's collapse created uncertainty -- growth in China is expected to drop to 6 percent this year from an average exceeding 10 percent in recent years, experts say.

While that may sound enviable to Western companies, analysts say China needs 8 percent growth to maintain current employment levels. "For a while it seemed China was relatively immune to the impact of the credit crisis, then the collapse of Lehman Brothers showed it wasn't," said Joseph Zveglich, assistant chief economist at the Asian Development Bank.

And even as Western companies clamor for the China market, it's an open question of whether Chinese consumers - be they nouveau riche or just emerging from poverty - are interested in foreign goods. But let's not forget the annual per capita income in China is just $1,000.


"There is a misconception that Western companies are good at penetrating the Chinese market," said Frederic Neumann, a senior economist at HSBC. "We see a lot (of penetration) in the auto sector and top end of the luxury market, but if you look at broad Chinese consumption trends, Western companies don't have the cachet" of local Chinese brand names.

"We see the top-end (consumer spending) weakening and consumption moving inland ... which suggests the best placed companies will be Chinese companies themselves, not Western multinationals," he said.



CNN.com


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## yh1

* Chinese economy rebounds, but return to rapid growth elusive
*
English_Xinhua

Special Report: Global Financial Crisis 

By Xinhua Writer Cheng Yunjie

BEIJING, May 3 (Xinhua) -- Decoupling from the world, and the economic downturn much of it is experiencing, has proven impossible for China. But its resilience is receiving more recognition, with many leading financial institutions upgrading their 2009 growth forecasts since mid-April.

The adjustments for gross domestic product (GDP) growth, ranging from 0.5 to 2.3 percentage points, were based on signs of a turnaround in the first quarter. These indicators included stronger-than-expected real GDP growth, recovering property investment, a pick-up in power consumption and a surge in bank lending.

Merrill Lynch & Co. said it expected China's GDP to grow 7.2 percent in the second quarter and 8 percent this year, while Goldman Sachs raised its projection from 6 percent to 8.3 percent, the most optimistic forecast so far. Other forecasts include UBS, which raised its estimate by 0.5 point to 7 percent and CLSA Asia-Pacific, which lifted its outlook by 1.5 point to 7 percent.

China's policymakers can take heart from these forecasts. Every upward revision, big or small, given the global economic slowdown, might point to a better chance for the nation to achieve its 8-percent growth target. That level of growth is considered necessary to raise living standards while maintaining social stability.

But there's still the question of whether rapid growth is sustainable. Some analysts believe it isn't unless China can rebalance its economy and achieve higher efficiency, lower environmental costs and a more reasonable balance among investment, trade and consumption.

QUANTITY OR QUALITY?

In an interview with Xinhua, Stephen Roach, chairman of Morgan Stanley Asia, urged Chinese authorities to get more serious about stimulating private consumption because the global economy remains "pretty weak" and might only achieve a weak recovery.

"China has responded to the crisis the way it has always responded to global problems. That is, using proactive fiscal stimulus mainly in the infrastructure area to provide temporary support in the downturn until the global economy comes back. It worked in the 1997 Asian financial crisis and the 2000-2001 mild recession. But this is a different sort of problem," said Roach.

"Once the stimulus wears off and if there is no follow-through, the Chinese economy will weaken again. I don't think exports will recover in the weak global economy."

Domestic economists voice similar worries, saying that the speed of growth doesn't matter as much as the quality. Liu Shangxi, deputy dean of the Research Institute for Fiscal Science at the Ministry of Finance, said that the 6.1-percent year-on-year growth in the first quarter had been "fairly good" for China. But, he said, "sometimes, it's worth slowing down a bit to have the economy move more stably."

Wang Xiaoguang, an economist with the National Development and Reform Commission (NDRC), the chief planning agency. said that the government's annual growth target had become mostly symbolic.

For five years in a row, the target was 8 percent, and for five years in a row, the growth rate overshot the target. Wang said the government had faced a dilemma: a cut in the target might undermine public confidence while a rise might tempt local governments to over-invest to meet a high growth target.

The turnaround signs mostly reflected the impact of the 4-trillion-yuan (586 billion U.S. dollars) stimulus package. Meanwhile, retail sales still trailed investment in contributing to growth. Local economists warned that the economy remained unbalanced and vulnerable.

"Historical records show that adjustments in the Chinese economy would take two to three years, on average. Seven months have passed since the impact of the global financial crisis began to tell on the local economy.

"With a turnaround in sight, recovery might come earlier than expected but there are still risks of a further slowdown," Chen Dongqi, deputy chief of the Macro-Economic Research Institute under the NDRC, told a business development forum in Guangdong in late April.

BUYING CURE

It's widely accepted among economists that China should boost domestic private consumption by leading individuals to buy more and save less. The key question is: how?

"Two big programs" Roach advocates call for doubling the investment in social security immediately to 150 billion U.S. dollars and establishing a goal of raising consumption as a share of the economy from 36 percent to 50 percent within five years.

"What I think is missing here is the social safety net, social security pension and unemployment insurance. Because of the absence of the safety net, China has seen a high level of precautionary saving," he said.

Roach suggested that China develop a private pension system in particular so total employee compensation could rise in tandem with productivity. "Chinese companies need to partner with their workers and provide medical care [and] retirement investing for their workforce. Chinese workers' total pay package should have both wages and benefits," he said.

Liu agreed that the primary task in expanding consumption was to raise incomes. "Securing the legitimate interests of workers is particularly significant when the economy slumps. It would be like drinking poison to quench one's thirst if businesses sought to expand corporate earnings at the cost of workers' pay and benefits," he said.

Low labor costs and massive capacity have propped up China's prosperity over the past decades. But the proportion of wages to national income has been on a long decline since the 1990s.

Between 2002 and 2006 alone, economists estimate the figure dropped from 62.1 percent to 57.1 percent. Meanwhile, the contribution of consumption to GDP growth fell from 43.6 percent to 38.9 percent.

"A more meaningful index to judge the sustainability of China's economic growth would be the proportion of wages to national income," Liu said. "If this ratio did not rise, people would remain poor, and thus expanding consumption would be empty talk."

Chinese are far from wealthy. Only 4 percent of the workforce, and just 10 percent of the urban workforce, earn more than 2,000 yuan a month, the threshold for individual income tax.

As Chinese residents hold 2.43 trillion yuan in aggregate deposits, economists say one immediate way to boost consumption would be to stabilize spending on staple property -- including housing and automobiles -- and support tourism and cultural activities.

"People spend much of their money on housing and food. The government should encourage people to entertain themselves more," Wang said.

CHINA 'NO LOCOMOTIVE'

Although China might be the first major economy to recover from the downturn, economists disagree on when China will return to sustained high growth.

Morgan Stanley, for example, has forecast a firm recovery by mid-year, but said sustainable growth through 2010 would still hinge on what happens in other countries.

"China will be stronger. But will that strength be enough to allow others to follow in its footsteps? I don't think so," said Roach.

"Most of China's resilience comes from infrastructure building, roads, property consumption ... [this] won't have an impact on the United States and Europe. This resilience is only temporary while its stimulus is local rather than global."

Central bank governor Zhou Xiaochuan also warned in late April during World Bank-IMF meetings in Washington that the rebound in China's economy had to be consolidated. He said conditions in China would permit rapid economic development again, once macroeconomic policies such as the stimulus plan took effect.

Challenging internal and external conditions, he said, included continuously shrinking external demand, a relatively large decline in exports, overcapacity in some industries, falling government revenue and lingering employment pressure.

As China emerges from the shadow of the downturn, together with many of its Western partners, the world is closely watching the socialist market economy that it is still trying to develop.

It was interesting to see that there was much "the ideologically-constrained West" could learn from China, just as there was much China could learn from the West, said Roach.

"China has gone slow in many areas, especially in the opening up of its financial market. But China made the right choice," he said.

"Focusing on stability is a huge plus for China. But the nation must be vigilant in its financial policies, especially monetary and regulatory policies, and not allow asset bubbles and financial innovations it doesn't understand," said Roach.


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## yh1

* China, Japan, S Korea reach agreement on distribution ratio of regional reserve pool*

English_Xinhua 

&#183;China, Japan, and South Korea will contribute to the $120-billion pool on a 2:2:1 ratio.
&#183;They vowed to enhance regional economic and financial cooperation under current circumstances.
&#183;They pledged to make due efforts to the regional financial stability and economic revival.

BALI, Indonesia, May 3 (Xinhua) -- China, Japan, and South Korea have reached an agreement on the distribution ratio of a 120-billion-U.S. dollar regional foreign-exchange reserve pool plan here on Sunday. 

China, Japan, and South Korea will contribute to the pool on a 2:2:1 ratio, namely 38.4 billion U.S. dollars from China and Japan each and 19.2 billion from South Korea.

The agreement on the reserve pool, established to help countries tackle a possible foreign capital flow shortage, was reached at a meeting of finance ministers of the three countries on Sunday. 

......................


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## gpit

*China economic boost helps stock market rally*

PARIS (AFP) --

World stock markets advanced on Monday after encouraging signals from the Chinese economy as well as news of Fiat's plans to create a new global auto industry giant despite the economic crisis.

On Wall Street, the Dow Jones Industrial Average climbed 2.24 percent and the tech-heavy Nasdaq index was up 1.64 percent in mid-day trading.

Paris closed up 2.47 percent and Frankfurt gained 2.89 percent, while the London Stock Exchange was closed for a public holiday in Britain.

Tokyo was also closed for a holiday but Hong Kong soared 5.54 percent and Shanghai added 3.32 percent after a report from a government think tank put China's second-quarter economic growth at seven percent from a year earlier.

The CLSA China Purchasing Managers Index, or PMI, a closely watched indicator in the world's third-largest economy, also rose sharply to 50.1 in April from 44.8 the previous month. It was the first expansion in nine months.

Stocks were given an added boost by easing fears of a global pandemic of the swine flu virus, which rattled financial markets last week and had threatened a possible further delay in any recovery for the world economy.

"People are treating swine flu as a non-event," said Goh Mou Lih, head of research at Westcomb Securities in Singapore.

"And with the better US consumer confidence data, the market's perception now is that the economy is going to turn around," he said.

In Hong Kong, Patrick Yiu, associate director at CASH Asset Management, told Dow Jones Newswires: "The whole investor theme is about expectations of an economic recovery, not only in China, but also globally."

That confidence carried through to Wall Street, where analysts at Charles Schwab & Co. said the positive data from China was helping "further the argument that the worst of the global recession may be in the rearview mirror."

Todd Salamone at Schaeffer's Investment Research said: "We are seeing evidence... that suggests the big money players are returning to the stock market. These players are a huge source of fuel."

Investors remained concerned however about the so-called stress tests of the top 19 banks in the United States expected later in the week, which could reveal that some banks may need further shoring up of their capital base.

But good news from the troubled real estate sector helped boost US stocks.

One report showed pending US home sales rose 3.2 percent in March after a 2.0 percent increase in February. A separate report showed construction spending increased 0.3 percent in March after five monthly declines.

Another factor in the global rally was an announcement by Fiat that it intends to take over General Motors' ailing German unit Opel to create a global industry giant following its tie-up with Chrysler announced last week.

In an interview with the Financial Times, Fiat boss Sergio Marchionne outlined plans to build the world's second biggest auto company after Japan's Toyota and said a deal with Opel would be "a marriage made in heaven."

Shares were given an added boost by the Purchasing Managers Index for the 16-nation eurozone, which rose in April to its highest level in six months.

The new PMI, which measures business activity in the eurozone, was at 36.8 points -- still below a 50-point threshold indicating growth.

There was some bad news from Europe however with the European Commission forecasting that the EU and eurozone economies would contract 4.0 percent in 2009 and would continue to shrink in 2010, dashing hopes of a quick recovery.

Copyright &#194;&#169; 2009 AFP All Rights Reserved
http://www.timesoftheinternet.com/70765.html


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## white_pawn

*China's economy may regain growth momentum in H2 of 2009​*
As the risk of deflation looms large on top of weaker exports and declining private real estate investment, China's economy may continue to slow down in the quarters immediately ahead but regain growth momentum in the second half of next year, according to a Morgan Stanley report released on Wednesday.

In its China Economics Outlook for 2009, the Hong Kong-based Morgan Stanley Asia forecast China's baseline GDP growth would be around 7.5 percent next year, with the bull and bear scenarios projected at 9 percent and 5 percent respectively.

The projection came after the country's economic indicators showed that the impacts from the global financial crisis on China's tangible economy have become much severer.

The exports totaled $115 billion last month, down 2.2 percent year-on-year in the first monthly decline since June 2001, the General Administration of Customs said on Wednesday. The previous decline, a much smaller 0.6 percent, reflected slumping US demand after the tech bubble burst.

The producer price index (PPI), a measure of inflation at the factory level, decelerated sharply to an annual rise of 2 percent in November. It was also slowest rise for the PPI since May 2006, which prompted worries about the fast-slowing economy and rising deflation risks.

Late last month, the World Bank has revised down its forecast for China's GDP growth of next year from 9.2 percent to 7.5 percent.

Wang Qing, Morgan Stanley Asia chief economist on the Chinese economy, said that three factors, namely the cooling-down in real estate investment, a massive de-stocking of raw material inputs in the immediate aftermath of the collapse of international commodity prices and the weakening external demand, had caused China's economy to slow down rather sharply.

The "triple-whammy impact" however could barely maintain its full force throughout 2009, although the ravage would likely continue to be felt in the first quarter of next year, he said. "We believe that China's economic outlook for next year is best characterized as getting worse before getting better, laying the foundation for a firmer recovery in 2010."

As the fiscal stimulus package came much faster this time than that during the Asia financial crisis, Morgan Stanley expected the effect to be apparent by mid-2009. Besides, the slow recovery of the G3 economies -- the United States, European Union and Japan-- after the unprecedented monetary and fiscal policy actions might have led to an improving external demand by the second half of next year and thus would contribute to a modest recovery of the Chinese economy.

China's economy may regain growth momentum in H2 of 2009


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## white_pawn

*PBoC to maintain loose monetary policy ​*Economics & Trade 

7 May 2009 

In its quarterly monetary policy report posted on its website Wednesday, the People's Bank of China (PBoC) said it will ensure an "ample" supply of money, Bloomberg reported. While the central bank said the Chinese economy has performed better than originally expected, it still does not believe the recovery is on firm footing; the bank noted that while new lending has surged, the lending is over-concentrated on government projects and does not provide enough to smaller businesses. It advised lenders to pay attention to bad loans and assess the ability of local governments to repay debt. The bank also said that deflationary pressure is easing and that quarterly GDP growth is improving, without providing figures. 

PBoC to maintain loose monetary policy - China Economic Review


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## white_pawn

*Michelle Obama's Footwear boosts Chinese Exports​*Posted by: Frederik Balfour on May 08

Not since Jacqueline Kennedys time in Camelot has the First Ladys fashion developed such a following. And now, it seems the popularity of Michelle Obamas footwear is helping boost the fortunes of a far-flung factory in the Chinese city of Chengdu. Ever since the fashion website coolspotters.com flagged Michelle O sporting a pair of Bandolino Berry kitten pumps at a campaign function last fall, fashionistas have been clamoring to emulate the new style icon living in the White House. Though Bandolino brand owner New York City-based Jones Apparel Group refused to comment, management at Roeblan, the Chinese company which makes the Berry, says shipments to the U.S. were up 50% to 268,000 pairs in the first four months of this year compared with 2008in stark contrast to Chinese exports which fell about 20% in the first quarter. The fact that Mrs. Obama is wearing the Berry shoe is not the only reason for the increase in the US sales, but it does have a big effect, Wu Deguo, owner of the factory said in an email. Just imagine how well things would be going if Ms. Obama shared Imelda Marcos passion for shoes. 

Michelle Obama's Footwear boosts Chinese Exports - BusinessWeek


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## white_pawn

EU, China agree to promote trade, investment(Xinhua)
Updated: 2009-05-08 22:14

BRUSSELS - The European Union and China on Friday agreed to promote trade and investment as a way to counter the world economic crisis.

"The two sides agreed that in the face of the current severe international financial crisis, China and the EU should strengthen cooperation," Chinese Vice Premier Wang Qishan told journalists after two days of high-level talks with EU officials led by Trade Commissioner Catherine Ashton.

Wang said the two sides also reiterated their commitment to jointly advancing trade liberalization and investment facilitation "and maintaining an open environment for trade and investment."

The vice premier, standing with Ashton, also called for joint efforts with the EU to push for a swift conclusion of the long-stalled Doha Round of global trade talks.

"The two sides agreed to oppose protectionism in trade and investment, consolidate the already progress in the Doha round of negotiations and work for the early success of the round of negotiations," Wang said.

Wang's call was echoed by Ashton.

"Trade and investment will lead us out of the current crisis," she said. "The EU and China therefore stand together today in calling for the swift conclusion of the Doha Round, which will help us trade our way out of recession."

In addition to Wang and Ashton, eight EU commissioners and 12 Chinese ministers or vice ministers participated in the second annual meeting that covered a variety of topics, including trade, product safety and intellectual property rights.

EU, China agree to promote trade, investment


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## white_pawn

*Traders seek new markets​*
Cai Liangsui, a tea producer and trader from Fujian province, was expecting many buyers from Europe and the United States at Canton Fair, Guangzhou, but hardly any stopped at his booth.

Instead, those who showed the greatest interest in his products were from the Philippines, Saudi Arabia, Brazil, Turkey and Poland.

It was the same for many other exhibitors at China's biggest trade show, which is regarded by traders, politicians and economists alike as a barometer on the state of the world's financial health. It was visited by 165,436 overseas buyers from 209 countries and regions, down 5.2 percent on the last session.

Transactions at the 105th Canton Fair, totaled $26.23 billion, a fall of 16.9 percent compared with last autumn's fair. Trade with the European Union and the US totaled $7.57 billion and $3.3 billion apiece, a decline of 28 percent and 8.1 percent respectively. However, there was a modest increase in deals with some emerging markets. Transactions with Argentina, India and the Association of South East Asian countries amounted to $380 million, $770 million and $1.93 billion respectively.

"Initially we wanted to target high-end markets such as the UK and the US," said Cai, speaking midway through last week. "But so far the buyers who may place some real orders are all from developing countries."

Chinese exporters have suffered heavily as a result of the global financial crisis, which has seen demand from Europe and the United States plunge. In the first three months of this year exports to the US fell by 15 percent and to the UK by 19 percent, according to the General Administration of Customs. It's a situation which has forced many to seek new markets in Latin America and Southeast Asia.

The few European and American buyers who did turn up proved to be very cautious.

"At the moment I am just looking," said Justin Walton, a British trader who sells outdoor clothing. His company experienced a 70 percent drop in revenues during last summer's sales. "Maybe I'll order some samples but no more than that," he added. "My retailers do not have the confidence. If they do not place an order, I cannot place one."

Wang Xincheng, general manager of China House Footwear Ltd, said the primary market for his company was now Latin America. It accounts for more than 50 percent of his total sales.

"Latin America is a big cake that everyone wants to have a bite of," he said. "Chinese companies usually have a price advantage and the market is not as saturated as it is in developed countries."

China's trade volume with Latin America reached $143.4 billion last year, 39.7 percent up from the previous year. In April, China signed a free trade agreement (FTA) with Peru, under which the two sides will gradually lower tariffs to zero on about 90 percent of goods. The deal is the second FTA package China has signed with a Latin American country. The first was with Chile in 2005.

The Association of Southeast Asian Nations (ASEAN) represents countries with big purchasing power and a large consumer base. There is also the possibility deals with its members could be conducted using RMB, making them less susceptible to fluctuations in exchange rates.

"Consumers in ASEAN countries normally have a habit of saving so the purchasing power is still there although the room for profit could be squeezed by the global economic downturn," Wang said.

The sixth China-ASEAN Expo is going to be held in Nanning, capital of Guangxi Zhuang autonomous region. It is widely thought ASEAN will replace Japan as China's third largest trading partner.

Although market diversification is the key strategy for most Chinese exporters trying to cope with the financial crisis, some still see trade barriers and a lack of trust in companies from emerging markets.

"Expanding into developing markets is the trend," said Zhu Wenyi, sales manager at Zhejiang Busen Garment Holding Co, which produces men's suits. "But the tariffs against Chinese products in some Latin American countries are still an obstacle in front of us," The company is considering opening stores in Ecuador in the next two or three years.

Lu Jiechuan, an exporter from Shandong province, said there were risks attached to doing business with developing countries in that the companies often had not been around for long and so didn't command confidence.

"Many Eastern European companies fail to offer letters of credit and buyers from the Middle East bargain a lot and the prices they offer are not as good as those made by American and European companies," he said.

Although the Canton Fair witnessed a modest increase in orders from new and emerging markets, the overall atmosphere was one of extreme caution. Many buyers had no plans to place orders at the fair but attended simply to check prices to get an idea of the future market.

"Of course we are getting more cautious," said Asgar Suliman, a textile trader from South Africa.

"People buy less and look for cheaper prices because of the economic downturn - so we are looking for cheaper prices too," He said he would only place an order after personally visiting some of the factories of Chinese producers.

"We want orders more than anything else," said Luo Dongxu, a footwear trader from Guangdong whose sales in the European and American market dropped by more than 50 percent.

"The orders booked by buyers from developing countries are usually small. But given the current situation, small orders are better than no order."

Canton Fair has been held in Guangzhou in the spring and autumn seasons every year since the spring of 1957.

It is co-hosted by the Ministry of Commerce and the Guangdong provincial government, and organized by the China Foreign Trade Center.

The Fair is the largest trade fair in China. Among China's largest trade fairs, it has the largest assortment of products, the largest attendance, and the largest number of business deals made at the fair.

Traders seek new markets


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## white_pawn

*Auto sales may top 10m units this year​*
China's booming automobile market is expected to break the 10-million-unit in sales barrier this year, as the government's positive measures drive demand and revive consumer confidence, an industry body said yesterday.

China Association of Automobile Manufacturers (CAAM) has upgraded its forecast for this year's automobile sales to 10.2 million units, with year-on-year growth rate of 8.7 percent, up from the 5 percent projection earlier this year, said Dong Yang, its deputy director.

The passenger car segment is expected to grow by 10.2 percent while commercial vehicle sales are likely to increase by 5 percent this year, Dong said.

The association modified its forecast after vehicle sales hit a monthly record in April, the second consecutive month since March, with a year-on-year growth of 25 percent.

"It seems 2009 will be an optimistic year for China's automobile market, but we all should be cautious amid the gloomy global environment," said Dong.

According to CAAM, 1.153 million vehicles were sold in China last month, up 3.91 percent from March.

"The back-to-back pick-up in sales showed that China's auto industry has recovered and the government's stimulus package is taking effect," said Dong.

"Those vehicles that are eligible for government subsidies, which account for around 52 percent of the total industry, were the major driving force behind the rapid sales growth," said Zhu Yiping, associate secretary-general of CAAM.

The sales of passenger cars with engine capacity of or less than 1.6 liters increased by 56.5 percent over April 2008, to 419,000 units.

However, commercial vehicles continued to show a downtrend with 1 million units sold in April, a drop of 3.86 percent year-on-year.

In the first quarter, the total revenues of 19 major automakers dropped 14.2 percent, with their combined profits diving 48.36 percent year-on-year, according to CAAM.

In April, the US automobile market showed a 34.4 percent fall in unit sales over the past year, the lowest year-on-year growth rate in 30 years.

Auto sales may top 10m units this year


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## white_pawn

*China GDP forecast raised(China Daily/Agencies)​*Updated: 2009-05-15 08:04

Morgan Stanley raised its forecast for China economic growth to 7-8 percent from 5 percent for 2009 but warned the pace will slow next year as a protracted global slowdown deals a blow to the export-led economy.

The government's 4 trillion yuan ($586 billion) stimulus package announced late last year will provide temporary support to China's economy, but growth may fall back to 5.5 to 7 percent in 2010, as external demand will remain weak, Morgan Stanley Asia Chairman Stephen Roach said yesterday.

"I think there's a possibility that this year's strength may borrow from growth that might otherwise occur next year," Roach said in Shanghai. "It's premature to say China is enjoying a V-shaped recovery. I think the outcome is going to be closer to the letter W."

Roach's views contrast with more optimistic tones of other China economists who are betting on a quick turnaround after some encouraging data offered evidence that the country's expansive monetary and fiscal policies are starting to take effect.

Goldman Sachs raised its China growth forecast to 8.3 percent for 2009 and 10.9 percent for 2010, citing strong expansion in both fixed-asset and private sector investment.

"I'm worried about China staying on the same unbalanced, unsustainable path," Roach said, adding that China adopted the same investment-focused strategy during the previous two crises in 1997/98 and 2000/01.

But China's hopes to use infrastructure investment to sustain growth while waiting for the global economy to snap back would be dashed this time because the current crisis, the worst since the 1930's, will curb external demand for years, he said.

Roach expected the government's 4 trillion yuan stimulus would boost the share of investment to 45 percent of GDP from 40 percent. "Those levels are unheard of and underscores the continued building-up of imbalances."

Roach suggested that China should strengthen its social safety net so that people will become more willing to spend.

China should double the size of the country's social security fund to $160 billion immediately and boost the private consumption share of the Chinese economy to 50 percent from currently 36 percent in five years, he said.

"China needs to stop depending on the over-extended American consumer and needs to rely more on the untapped potential of its own consumers," Roach said.

China GDP forecast raised


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## white_pawn

*Baxter draws up 1b yuan capex plan for ChinaBy Zheng Lifei (China Daily)​*Updated: 2009-05-16 09:58

US healthcare company Baxter International Inc said on Friday that it would spend 1 billion yuan ($146.50 million) in China this year to ramp up production capacity in the latest investment made by foreign drugmakers in the country.

The US drugmaker will use the funds to expand the intravenous solutions and peritoneal dialysis products output at its Guangzhou, Suzhou, Tianjin and Shanghai plants.

"The investment reinforces our commitment to China," said Paul Vibert, general manager, Baxter China. "It will also allow us to provide a significant number of jobs, which is in line with our corporate social responsibility," Vibert said.

The investment is expected to create 2,500 jobs, of which 1,000 will be available this year, the manager said.

Baxter, the maker of intravenous drug pumps, renal and other products, realized sales revenue of $200 million from China last year.

The company, Vibert said, "is confident" that it can achieve double-digit sales growth this year despite the economic downturn.

Globally, Baxter expects a sales growth of 7 percent this year from last year's $12.3 billion, excluding the foreign currency exchange impact.

The foreign pharmaceutical industry is one of the few that still continues to increase investment in China this year even as most of the others are cutting spending as a result of the global financial crisis.

Sanofi-Aventis, the world's fourth-biggest drugmaker, said last month that it would invest $90 million in China, after a $94 million investment made in 2007.

The global pharmaceutical market is expected to grow by a mere 2.5 percent to 3.5 percent in 2009, the lowest growth rate in at least 25 years, according to US healthcare market research firm IMS Health Inc.

But China is expected to see sales grow by 13 percent to 16 percent through 2013, IMS said, forecasting that China may become the third-largest market by 2011, up from its current sixth place ranking.

China announced this year that it would invest 850 billion yuan to overhaul its healthcare system over three years.

Baxter draws up 1b yuan capex plan for China


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## white_pawn

*3G ready but users lag behind​*By Li Fei (China Daily)
Updated: 2009-05-18 08:22

China Unicom, one of the nation's three leading mobile operators, started trials of its high-speed, third-generation (3G) network Sunday.

3G lets users enjoy faster wireless data downloads, make video calls and watch TV programs via mobile phones.

The trial network covers 55 cities and would expand to 284 cities by the end of September, said company president Chang Xiaobing.

He said regular service would start at year-end.

China Unicom is the last operator after China Mobile and China Telecom to start trial operation for a 3G service.

However, experts warn that the new service may not give a boost to the telecommunications market due to its high cost.

"Developing killer applications (such as the text messaging in the 2G era) is critical to spur the 3G business as people are still used to and satisfied with the dominant voice and text messaging service available in the 2G era," said Chen Jinqiao, deputy chief engineer from China Academy of Telecommunication Research.

"This is the only way the 3G business can really take off," said Chen, predicting it will take at least five years for 3G to be widely popular in China.

According to an online survey by ÐÂÎÅÖÐÐÄÊ×Ò³_ÐÂÀËÍø, the largest Internet portal in China, only 1.9 percent of 363,000 respondents said they "have an idea of what 3G really is".

And although 59 percent of respondents said they would "ultimately become a 3G subscriber" in the future, nearly half said the pricing offered by the three telecom carriers was "too high".

According to the survey, in addition to the price and the need to get a new handset, 17.5 percent of respondents said the limited 3G application was the third biggest reason why they wouldn't rush to 3G.

The ministry expected the three operators to invest 170 billion yuan ($25 billion) in 3G network construction this year.

Despite the fanfare of 3G entering the market, some analysts said it would not give much boost to China's telecom carriers.

"China's telecom industry is now entering a downward spiral, a trend that is likely to last at least one or two years," said Wang Jinjin, head of Asian telecom research at Swiss bank UBS.

"Global experience shows that 3G has not been very helpful in driving carriers' business growth," said Wang.

3G ready but users lag behind


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## white_pawn

*HK may become yuan hub​*By George Ng (China Daily)
Updated: 2009-05-18 08:03

Hong Kong's ambition to become an offshore yuan center is a step closer thanks to recent central government moves to expand the yuan's international role.

Among the most significant moves is an announcement by the State Council (China's Cabinet) early last month that exporters and importers in five mainland cities will be able to settle their cross-border trade deals in yuan under a pilot program.

The five cities include Shanghai in the Yangtze River Delta and Guangzhou, Shenzhen, Zhuhai and Dongguan in the Pearl River Delta. All have large numbers of export-oriented manufacturers in their surrounding regions and will initially likely only involve deals with the special administrative regions of Hong Kong and Macao.

No timetables for, or details of, the program have been made available.

But signs indicate the scheme could be implemented soon.

Li Feng, Shenzhen's deputy major, told Hong Kong reporters earlier last week that the city authority had chosen 100 import and export firms to participate in the pilot scheme.

He said he expects the Guangdong provincial government to approve the list soon.

Tu Guangshao, a Shanghai vice-mayor, also told media late last month that the city was selecting its first batch of companies to participate in the scheme.

The move to allow yuan settlement in cross-border trade will strengthen Hong Kong's role as a financial gateway to the mainland, Hong Kong's Secretary of Financial Services and the Treasury Chan Ka-keung said.

"Both our financial industry and trade between the two places will benefit immensely from this breakthrough," he said.

Analysts were uncertain on whether the move was intended primarily to help Hong Kong become an offshore yuan hub.

"I can't really speculate what the central government's ultimate intention is. It may not necessarily be intended to help Hong Kong become an offshore yuan hub. But it will be a breakthrough to that effect," said Irina Fan, a senior economist at Hang Seng Bank.

China's rapid growth and the scale of its economy naturally demand a bigger role for the yuan in the international arena, she said.

Yuan settlement for cross-border trade in Hong Kong would likely lead to other services such as yuan lending, issuing yuan bonds and yuan investment assets in the special administrative region, she said.

Hong Kong will enjoy a "first-mover advantage", although the central government may allow yuan settlement in trade with bordering Asian markets, such as ASEAN countries, effectively making them "first movers" too, the economist said.

"But Hong Kong would retain an edge over those countries, in terms of having a mature financial market and financial expertise," she added.

"The move will push Hong Kong a step closer to develop into an offshore yuan hub," said Paul Tang, chief economist at Bank of East Asia.

Tang said the arrangement intends not only to make Hong Kong an offshore yuan hub but also to help open up the mainland's financial system.

The ultimate intention of the move is to boost the role of the yuan in the international monetary system, said Frances Cheung, an economist at Standard Chartered Bank.

"Turning Hong Kong into a offshore yuan hub is just a side effect," she said.

Hong Kong is the only offshore market that is allowed to issue yuan bonds, which helps its drive to become an offshore yuan center, she said.

How fast Hong Kong develops into an offshore yuan center will depend on the pace at which the central government expands the role of the yuan, said economists.

Signs are encouraging in this aspect, according to some observers.

In a meeting with Hong Kong's Chief Executive Donald Tsang last month, Premier Wen Jiabao said the central government will try to expand Hong Kong's yuan bond market.

Mainland units of Hong Kong banks will soon be allowed to issue yuan bonds in the administrative region and the Ministry of Finance is considering issuing yuan bonds in Hong Kong, the Premier said.

The central government is also studying a proposal to extend financial aid to developing countries in yuan instead of in US dollars, according to a report by the South China Morning Post.

China will then allow beneficiary nations to trade yuan reserves in Hong Kong (if they do not use up all the aid) to buy Chinese products, the report said, quoting unidentified sources.

The move, if it materializes, will boost Hong Kong's chances of becoming an offshore yuan hub, Standard Chartered Bank's Cheung said.

Economists said the central government, at some point in the future, will likely announce other measures to boost yuan use in Hong Kong such as allowing yuan lending and developing yuan-based assets other than yuan bonds.

HK may become yuan hub


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## white_pawn

*China, Brazil have huge trade potential: former ambassador​*(Xinhua) Updated: 2009-05-19 13:20

Former Chinese ambassador to Brazil, Chen Duqing, told Xinhua Monday that the two sides have huge potential to expand trade.

He made the comment as Brazilian President Luiz Inacio Lula da Silva began his 3-day visit to Beijing Monday to enhance economic ties.

Bilateral trade rose 63.2 percent year on year to $48.98 billion in 2008, according to data released by the General Administration of Customs.

Despite the sharp rise, the figure made up less than 3 percent of China's foreign trade in 2008, said Chen who left office in March.

Since both countries have abundant resources, there is big potential to increase bilateral trade, he added.

China surpassed the United States to become Brazil's biggest trading partner in April.

Chen said it reflected America's contracting foreign trade as it was hard-hit by the financial crisis. It also showed that closer trade relations between China and Brazil had become a reality.

For example, Brazil's exports to China, mainly iron ore and soybeans, increased.

Chen noted many Brazilian businessmen still knew little about the Chinese market. The two sides lacked understanding partly because of geographical distance and should seek more areas for collaboration.

"The two countries could further expand technology cooperation as the two had good collaboration on satellite launches," Chen said.

Agriculture is another important part of bilateral economic ties as the volume of farm produce between the two sides grew 83.4 percent to $9.06 billion in 2008, data released by the Ministry of Agriculture Monday showed.

In a faxed letter sent Monday, the ministry told Xinhua that while improving agricultural trade with Brazil, China hoped to enhance exchanges in bio-fuel development and animal husbandry technology.

The ministry promised to facilitate information exchanges and encourage mutual direct investment.

Brazil imported $268 million worth of farm produce from China, up 125.2 percent year on year. Imported goods were mainly soybeans, aquatic and livestock products.

China imported vegetable oil, cotton and fruit worth $8.79 billion from Brazil last year, an increase of 82.4 percent from a year ago.

On July 3, 2008, the Brazilian government issued a report analyzing areas that Brazil could increase exports to China.

Chen said it showed a positive attitude from Brazil to beef up trade with China.

China, Brazil have huge trade potential: former ambassador


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## white_pawn

*Mainland urges faster building of economic zone in Fujian*​(Xinhua)Updated: 2009-05-19 10:49

At the conclusion of an inspection tour Monday, China's top political advisor Jia Qinglin said he wants to speed up the building of an economic zone in Fujian province on the western side of the Taiwan Straits.

Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference, the top political advisory body, said the economic zone was conducive to promoting development of areas with comparatively heavy Taiwan investment. It would also enhance exchanges and cooperation with Taiwan.

Facing Taiwan on the other side of the Straits, Fujian sees frequent business exchanges with the island. The State Council issued a document in early May which supported Fujian's construction of an economic zone on the western side of the Taiwan Straits.

During his visits with Taiwan businesses in Fujian, Jia said the province could "make bold attempts" to implement the document and expand mutual investment and cooperation in agriculture, finance, tourism and infrastructure construction.

Jia also stressed the significance of developing "towns" as they play an important role in expanding the domestic market, especially the rural market, facilitating employment of migrant workers, and channeling capital, talent, technologies and information to flow from cities to the countryside.

He also said investment from all social sectors should be expanded as the country strives to expand domestic demand.

Mainland urges faster building of economic zone in Fujian


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## white_pawn

*$10b loan-oil deal lubricates tradeBy Li Xiaokun and Zhang Haizhou ​*(China Daily)
Updated: 2009-05-20 07:38

China yesterday agreed to lend $10 billion to Brazil's state-owned oil giant in exchange for guaranteed oil supply from the South American country over the next decade.

Brazil's Petrobras and Sinopec, China's largest refiner, agreed that the former will supply 150,000 barrels of crude oil a day to China this year and 200,000 barrels per day for nine years from 2010.

The two oil companies also signed a memorandum of understanding on oil exploration, refining and petrochemicals. China will explore for oil in two areas in Brazil, Zhang Guobao, head of the National Energy Administration, told Bloomberg.

Beijing last month finalized a similar agreement under which Russia will supply oil for 20 years in exchange for loans to state firms.

Petrobras and the China Development Bank inked the loan deal in a ceremony attended by President Hu Jintao and his visiting Brazilian counterpart Luiz Inacio Lula da Silva at the Great Hall of the People.

The deal was among 13 signed yesterday, with the others ranging from equipment, financing, science and space exploration to agricultural products.

Petrobras will repay the loan with revenue from oil sales to China, and not with oil itself as some media have speculated, CEO Jose S. Gabrielli De Azevedo told a press conference.


"This is the largest loan Brazil has ever obtained in China," he added.

The China Development Bank and the Brazilian Development Bank also agreed on a framework deal for an $800 million credit extension.

Petrobras had been negotiating for finance with oil consuming countries in exchange for future supplies, seeking alternatives to international borrowing and bond issues to finance its spending plans amid the global credit crunch.

The firm needs funds to help extract massive, newly-found oil reserves deep beneath the ocean floor off Brazil's southern coast.

During talks with Lula, Hu proposed that the countries work more closely in such key areas as infrastructure, energy, minerals, manufacturing and agriculture.

He also called for greater financial collaboration in bilateral economic and trade activities.

Lula told Hu that 35 years after establishing diplomatic relations, Brazil and China "have more to celebrate than countries that have had relations for more than 100 years".

From 2006 to 2008, China-Brazil trade surged by an average of 50 percent annually.

China replaced the United States as Brazil's top trade partner last month.

The Brazilian government said trade with China in April reached $3.2 billion, compared with $2.8 billion with the United States.

"I believe Brazil and China are consolidating their strategic partnership (established in 1993), which is reflected in bilateral trade. I also believe the current status is just 10 percent of the potential," Lula said when he met Premier Wen Jiabao earlier yesterday.

Sun Hongbo, an expert in Latin America studies at the Chinese Academy of Social Sciences (CASS), said enhancing oil cooperation is a "significant part" of the Brazilian president's visit, adding that the current financial crisis offered China the opportunity to seal the deal.

It is Lula's second state visit to China; he first visited after he assumed presidency in 2003.

The visit is to "develop the strategic partnership" between the two "mutually complementary emerging powers", Lula said in a speech at the CASS before unveiling the Center for Brazilian Studies there yesterday morning.

He said there is no way to overcome the current global financial without the involvement of developing countries.

He also called for reforming the UN Security Council to give the developing world more voice.

Zhou Zhiwei, secretary-general of the Centre for Brazilian Studies at the CASS, said Lula's visit also paves the way for the first summit of the BRIC countries (the others being Russia and India) to be held in Russia next month.


$10b loan-oil deal lubricates trade


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## white_pawn

*Yuan may be reserve currency by 2020​*Official(Agencies)
Updated: 2009-05-21 13:28

China's currency yuan could make up more than 3 percent of global foreign exchange reserves by 2020, an official suggested on Wednesday.

The yuan is not convertible for purely financial purposes, ruling it out as a reserve currency for now, but China has started to carve out a bigger international role for its money.

A pilot scheme will start soon in Hong Kong to use the yuan to settle trade with selected companies in southern Guangdong province; China has signed yuan swap deals totalling 650 billion yuan ($95 billion) since December with six central banks; and on Tuesday two foreign banks said they had won permission to float yuan bonds in Hong Kong.

Zhang Guangping, vice-head of the Shanghai branch of the China Banking Regulatory Commission, acknowledged that a series of conditions would have to be met for the yuan internationalisation trend to gather momentum.

China would have to gradually make the yuan convertible on the capital account; it needed a more liquid foreign exchange market; its bond markets and banking system needed to be more developed; and there had to be proper monitoring of cross-border capital flows, Zhang told a foreign exchange conference.

But, hypothetically, he said there was no reason why the yuan could not account for over three percent of global reserves by 2020, the target date for Shanghai to have evolved into an international financial centre.

That would mean the yuan displacing the Japanese yen as the fourth-largest currency in reserve portfolios, behind the pound, the euro and the dollar.

Zhang told reporters later his target was plausible, given the rapid growth of China's economy and outbound investment and its big share of world trade.

"We have the conditions to reach such a proportion," he said.

In late March, central bank governor Zhou Xiaochuan signalled China's intention to play a greater role on the global currency stage by proposing that the dollar be eventually replaced as the dominant reserve currency by a beefed-up version of the Special Drawing Right, the International Monetary Fund's unit of account.

Yuan may be reserve currency by 2020 -&#160;official


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## white_pawn

*Economists confident on 8% growth targetBy Si Tingting (China Daily)​*Updated: 2009-05-21 08:18


Chinese economists have expressed optimism that the targeted 8 percent economic growth is achievable if the nation manages to rein in rising inventory levels, check manufacturing overcapacity and reduce its dependence on external demand.

"With stronger domestic demand, China is very likely to see its economy facing better conditions this year and the government's goal of 8 percent growth will be more than achievable," said Wang Yuanhong, senior economist and head of the Economic Forecasting Department of the State Information Center at a seminar organized by the All-China Journalists Association.

Wang, however, expressed concerns on whether the current economic recovery is sustainable.


Xu Lin, director general of the fiscal and financial affairs department at the National Development and Reform Commission, said China can achieve its goal of 8 percent growth this year as it has enough resources to add to government spending if needed.

Many observers suspect this may be an overestimate. The World Bank estimates that a 6.5 percent growth is more realistic and said the enthusiasm about an economic recovery in China may be "premature" as private investment lags behind government spending.

Most China watchers, however, feel that an 8 percent growth is required to boost employment.

China will also have to identify new growth sectors apart from the saturated automobile and real estate markets, Wang said.

"Technological innovation, green energy and biotechnology sectors could be new investment destinations, especially from the private sector," said Wang, adding that, stimulus spending by the central and local governments are essential to "stabilize" the economy from falling further.

Economists confident on 8% growth target


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## white_pawn

*Household income reforms unveiled*​By Zhang Ran (China Daily)
Updated: 2009-05-26 08:14

China will fast track its payment system reforms to boost household income, especially those of the medium- and low-income group, and spur consumption, the State Council said on Monday.

The cabinet yesterday listed as many as nine steps to increase household income, according to a statement on the reform guidelines posted on its website.

Executives of State-owned enterprises may see their salaries trimmed to narrow the gap between the rich and the poor amid an economic slump that has put pressure on profits and wiped out millions of jobs, according to the statement.

Other measures to encourage spending include an improved social security net, reduced precautionary savings, and increased income for rural and low-income households through fiscal transfers, it said.

Analysts said these measures would help boost consumption, which accounted for just 40 percent of China's GDP growth in 2008.

"In the last few years the household income growth could not keep pace with the growth of treasury income and that of the national economy. As a result, consumption did not take off," said Zhou Tianyong, professor from the Party School of the Central Committee of Communist Party of China.

According to Chang Xiuze, researcher, Academy of Macroeconomy Research, NDRC, China's labor payments have dropped to 11 percent of the GDP in 2007, compared to 17 percent in 1980.

"The government's policies to create jobs and raise household income will definitely boost consumption," said Sun Mingchun, economist, Nomura Securities.

"The real potential for consumption growth is in China's rural areas. While on an average almost every Chinese urban family owns a washing machine, refrigerator, and air conditioner, less than half of their rural counterparts enjoy such luxuries. But as rural household incomes rise, the demand for consumer durable goods will also go up," Sun said.

The cabinet yesterday released a reform package that almost tapped all the aspects of a national economy in a bid to lead the country out of the financial crisis.

"This is the most difficult year for the country's economy and development since we entered the new century. The financial crisis has not bottomed out yet, the speed of the economy has slowed down remarkably, bringing to fore the system contradiction accumulated from the past," the State Council said in a statement posted on its website.

"This requires us to deepen reforms and open up further," it said.

Household income reforms unveiled


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## white_pawn

*Chinese group buys stake in US basketball team(China Daily/AP)​*Updated: 2009-05-26 08:14

The Cleveland Cavaliers have signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena, a partnership that could impact superstar LeBron James' future with the team.

The Asian conglomerate, which includes Huang Jianhua, a Chinese businessman who has brokered sponsorship deals with the New York Yankees and other sports franchises in the US, could acquire up to 15 percent of Cavaliers Operating Company, the entity that owns the team and operates Quicken Loans Arena.

The league's board of governors must approve the deal, completed in recent days.


Team President Len Komoroski said on Sunday the group approached Cavs principal owner Dan Gilbert about the partnership and called the business venture "an exciting new opportunity".

Gilbert's role in overseeing the organization and 20,000-seat arena will not be affected by the new partners.

Citing multiple unnamed sources, the Cleveland Plain Dealer first reported the sides had a tentative deal in place. But in recent days, paperwork was completed between Gilbert and the consortium. It will now be sent to the league office for approval.

With an eye on spreading the game on a global scale, the NBA has been quietly pushing for an international group to become involved in ownership on a minority level. And with a huge fan base already in China - mainly because of Houston All-Star Yao Ming -- the league has entered into several ventures with the nation to develop players and build arenas to NBA specifications.

Huang and others in the group attended Games 1 and 2 of the Eastern Conference finals in Cleveland. On Friday, they sat courtside and watched James hit a game-winning 3-pointer in the final second to give the Cavaliers a 96-95 win and even the best-of-seven series.

If approved, the deal would provide marketing opportunities for the Cavaliers and James, who is eligible to become a free agent in the summer of 2010. The 24-year-old MVP, who is already among the league's most popular players in Asia, has stated he wants to become the first billionaire athlete. Playing for a team with Chinese business partners could enhance his brand overseas.

There has been ongoing speculation that James will leave Cleveland to play in a larger market like New York or Los Angeles because of the vast business opportunities. But James -- and his corporate sponsors like Nike -- have broader goals and may be able to attain them by tapping into China's colossal consumer marketplace without him ever leaving Cleveland.

James has never given any indication he wants to leave the Cavaliers, who drafted the Akron, Ohio, native with the No 1 overall pick in 2003. He won a gold medal with the US team last summer at the Beijing Games and has made four trips to China, including one with the Cavs during the preseason two years ago.

"It's a big market," James said before Game 3. "They love the game of basketball. I've been over there the last four or five summers. It should be good. It should be fun."

Gilbert has been approached by outside investors in the past, but his original business group has mostly remained intact since he bought the Cavaliers and the rights to operate their arena for $375 million from former majority owner Gordon Gund in 2004.

Gilbert purchased the team with several other investors, including longtime business partner David Katzman, R&B superstar Usher and others. Gund maintained partial ownership.

However, in the past two years, Katzman has decided to focus on other business interests and the Chinese group would essentially take over his percentage of the Cavs.

Chinese group buys stake in US basketball team


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## white_pawn

*Shandong plans auto behemoth​*By Li Fei (China Daily)
Updated: 2009-05-26 08:14

Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglomerate in Shandong province with sales projected to exceed 100 billion yuan by 2012, the latest industry consolidation move in China's fragmented auto sector.

Weichai Holdings Group, the biggest shareholder of the country's major high-speed heavy-duty diesel engine maker Weichai Power, and Shandong Construction Machinery Group Co, parent of one of the nation's leading earthmover makers, and Shandong Auto Industrial Group, will form a venture called Shandong Heavy Industry Group Co, according to separate exchange filings by their listed units.

The three companies, all based in the eastern province of Shandong, did not elaborate on the details, such as the financial terms, the timetable and the future structure, of the planned merger in their exchange statements.

But they all said the positions of their controlling shareholders would remain unchanged.

Weichai Holdings owns 14.92 percent of Hong Kong and Shenzhen-listed Weichai Power and 30.59 percent of Shenzhen-listed Weichai Heavy Machinery Co.

Shandong Construction Machinery has a 21.1 percent stake in Shenzhen-listed Shantui Construction, one of the country's biggest earthmover makers.

The combined sales of the three listed companies amounted to more than 40 billion yuan in 2008, according to their annual reports.

Shandong Auto Industrial Group has the capacity of producing 60,000 light trucks and 1 billion yuan of auto parts a year, according to Shandong Association of Automobile Manufacturers.

Shandong plans auto behemoth


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## white_pawn

China, world's 4th in wind power capacity(Xinhua)

BEIJING - With total installed capacity of 12 million kilowatts, China has become the world's fourth country in terms of wind power-installed capacity, an official said on Saturday in Beijing.

"Concerning wind power-installed capacity, China is next only to the United States, France and Spain," Lu Yanchang, vice chairman of the China Science and Technology Association, made the above remarks at the fifth China Energy Strategy Forum.

Wind power has become a main force in China's new energy development cause, said Lu, adding that the country had built more than 200 wind power plants as of 2008, with 12.8 billion kwh electricity generated.

China's total wind power has accounted for 1.5 percent of country's total installed electricity capacity. The country will build more wind power projects before 2010, in east coastal areas, and vast western regions, according to Lu.

North Inner Mongolia and Hebei have exploited wind energy earlier than other regions on the Chinese mainland.

Inner Mongolia, covering 1.18 million square kilometers, boasts 100 million kilowatts of wind energy resources, with enormous white turbines standing high to capture the strong winds from the heartland of Mongolia and Siberia.

The region is striving to increase installed capacity of wind power to more than 10 million kilowatts in 2010, almost half of that of the country's largest hydropower project at the Three Gorges, said Ya Saning, director of the region's economic commission.

Hebei Province will also construct wind power plants with an installed capacity of more than 10 million kilowatts as of 2020, said Zhao Weidong, an official with the provincial Commission of Development and Reform.

China, world's 4th&#160;in wind power capacity


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## white_pawn

*Foreign firms get red-carpet welcome​*By Wang Jingqiong (China Daily)
Updated: 2009-05-27 08:08

The Beijing government yesterday released new regulations aimed at attracting more multinational corporations to set up their regional headquarters in the capital.

The New Regulations on Encouraging Multinational Companies to Establish Regional Headquarters in Beijing will take the place of the old one of 1999, and its implementation rules on how these policies will come out next month.

This regulation applies to foreign multinational corporations and those from Hong Kong, Macau and Taiwan.

"The regulations will provide privileges and conveniences in taxation and foreign exchange management for foreign workers in China. This is to attract more multinational companies to invest in Beijing," said Chen Guangming, committee member of the Beijing Municipal Commission of Development and Reform.


According to the regulations, foreign multinational corporations with an accumulated registered capital of not less than $10 million in China can establish regional headquarters in Beijing. The figure set by the regulation of 1999 was $30 million.

It also allows regional headquarters in Beijing to expand their operational and business areas, hike imports and exports, expand distribution, and logistics within China.

The rules stipulate that regional headquarters registered or set up after January 1, 2009 in Beijing, with a registered capital more than 100 million yuan, will be given subsidies for three years.

Headquarters that have had annual sales revenue of more than 100 million yuan for the first time will receive an encouragement bonus.

The purpose is "to improve the functions of the regional headquarters, and at the same time, promote the development of finance, insurance, trade, accounting and legal system in Beijing," said Chen.

New rules on entry and exit have also been put out to improve the working and living conditions of foreign workers.

High-level managers and technicians can apply for a multiple-entry visa for less than five years; mid-level ones can apply for a multiple-entry visa for less than three years, and common workers for no more than one year. These three kinds of workers can apply for residential permits in Beijing for no more than 5, 4, or 3 years.

Foreign firms get red-carpet welcome


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## white_pawn

*China not a fake-drug factory, says official​*By Xie Chuanjiao (China Daily)
Updated: 2009-05-27 07:43

China has been unfairly demonized as a center of fake drug production, a senior health official said yesterday.

Bian Zhenjia, deputy commissioner of the State Food and Drug Administration, said reports claiming the country was a major exporter of fake drugs were unfair.

"I don't agree with what the foreign media has been saying. The Chinese government has always paid great attention to cracking down on fake drugs," Bian told a news conference.

He said an article in The Observer saying "health fears grow as Chinese fake drugs flood into Britain" was found to be false after confirmation with food and drug supervision departments in the United Kingdom.

"We hope we can work together with the rest of the world to crack down on fake drugs, not hype up the problem and launch attacks," he said.

There are 4,708 pharmaceutical companies and manufacturers in China, all operating in a very standard way - especially compared with what was done in the past, he said.

"We have strict requirements for pharmaceutical producers in terms of qualifications."

For instance, pharmaceutical enterprises need to acquire production licenses, and drugs must have batch and registration numbers approved by industry and commerce departments.

According to World Health Organization rules, drug importers should ask their Chinese producers and dealers to provide certificates authorized by national and provincial food and drug administrations.

"The problems lie in the fact that some overseas companies have deals with illegal producers in China so the products involved have problems," Bian said.

There are also other cases where foreign companies import chemicals from China and then use those to make drugs.

Further cases involve foreign enterprises and importers who have purchased drugs from China which they repackage and sell in other places, actions portrayed by some foreign media as "China-made fake drugs being sold in other countries".

"If the international community gives us information on fake drugs, we will investigate," Bian said.

Nation not a fake-drug factory, says official


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## white_pawn

*HK ties up stimulus boost plan​*Updated: 2009-05-27 08:08

The Hong Kong Special Administrative Region yesterday announced HK$16.8 billion of tax cuts, fee waivers and spending to shield people from a recession that's likely to be the worst on record.

The government could "do something further" if conditions worsen, its Financial Secretary John Tsang said at a briefing in the city yesterday.

Yesterday's measures, including waiving business registration fees, salary tax cuts and suspending two quarters of property rates, take stimulus and relief spending since 2008 to HK$87.6 billion, or about 5.2 percent of gross domestic product, Tsang said.

"It's too little, too late," said Kevin Lai, an economist with Daiwa Institute of Research in Hong Kong. "The problems are hitting us now," he said, adding that a HK$40 billion package should have been announced yesterday.

A waiver on salary tax payments will be raised to HK$8,000 for 2008-09 from HK$6,000. Fees for business registrations and for entertainment and restaurant licenses will be dropped for a year. The government will waive property rates for two more quarters.

The financial secretary predicted that the second half of this year will be better than the first half and the city may return to economic growth in 2010.


HK ties up stimulus boost plan


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## white_pawn

*Index shows 5th straight monthly gain​*(China Daily/Agencies)
Updated: 2009-05-28 08:08

China's benchmark stock index rose, completing a fifth monthly gain, as raw-material producers and shipping companies climbed on higher commodity prices and increased transportation rates.

PetroChina Co advanced 4.4 percent to a nine-month high and China Petroleum & Chemical Co added 2.4 percent. China COSCO Holdings Co, the world's largest operator of dry-bulk ships, climbed 4.6 percent after the Baltic Dry Index rose for a 17th day in London.

"Ample liquidity and optimism about economic recovery have contributed to the monthly rally," said Wang Peng, Shanghai-based chief investment officer at First Trust Fund Management Co. "The gains may not last if we fail to see more good economic and corporate data."

The Shanghai Composite Index, which tracks the bigger of the nation's exchanges, added 44.36, or 1.7 percent, to 2,632.93 at close yesterday. The index gained 6.3 percent this month. China's markets will be shut on Thursday and Friday for public holidays.

The Shanghai index has posted gains every month this year for a 45 percent rally on optimism a 4-trillion-yuan stimulus package and record lending would revive growth.

The CSI 300 Index added 1.5 percent to 2,759.71.

An index of energy stocks on the CSI 300 index has jumped 71 percent this year, the most among the 10 industry groups, as crude climbed.

Shipping companies rose after the Baltic Dry Index gained 5.6 percent on signs China is still stockpiling materials including iron ore. The index tracking transport costs on international trade has advanced almost fourfold since the start of the year, recovering some of 2008's record 92 percent drop.

The Shanghai index's monthly gains this year cap the longest winning streak since the end of May 2007.

Hang Seng soars

Hong Kong stocks rose, with the benchmark index set for its highest close in more than seven months, after the government unveiled HK$16.8 billion of tax cuts, fee waivers and spending to spur growth.

The Hang Seng Index added 893.71, or 5.3 percent, to 17,885.27, its highest close since Oct 2, and its largest gain since May 4.

The benchmark Hang Seng Index has surged 57 percent from a four-month low on March 9 as investors speculated government stimulus efforts worldwide would ease the global economic slump.

Index shows 5th straight monthly gain


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## white_pawn

*120b yuan saved for taxpayers in Q1(Xinhua)​*Updated: 2009-05-27 20:00

BEIJING -- China's tax payers have enjoyed tax reductions of 120 billion yuan ($17.65 billion) in the first quarter, as the country offered cuts to stimulate the slowing economy, Vice Minister of Finance Zhang Shaochun said at a press conference here Wednesday.

China said last November that it would extend its value-added tax (VAT) reform to all industries from January 1, as part of a 4-trillion-yuan stimulus package over the next two years to buttress economic growth.

Premier Wen Jiabao said in March that the VAT reform could see cuts of about 500 billion yuan this year.

Zhang, quoting figures released Tuesday, said the central government had spent 518.9 billion yuan, or 57.1 percent of its 908-billion yuan budget, by the end of April, mainly on projects related to people's livelihood, such as low-income housing.

Mu Hong, Vice Minister of the National Development and Reform Commission (NDRC), at the same press conference repeated his May 6 statement that the central government had allotted 300 billion yuan of stimulus investment, out of the total 1.18 trillion yuan.

The central government said in November it would offer 1.18 trillion yuan towards the 4-trillion-yuan package, the rest will come from local governments and the private sector.

The government said on Tuesday that among the 300 billion yuan, 37.5 billion yuan will be spent on low-income housing, 44.7 billion yuan on education and health care, 34.2 billion yuan on scientific innovation and technological upgrading, 111.9 billion yuan on agriculture infrastructure, forestry, and water conservation in rural areas, 45.8 billion yuan on railways, roads and airports, and 25.9 billion yuan on energy conservation and environment protection.

120b yuan saved for taxpayers in Q1


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## white_pawn

*China allocates $40b for infrastructure investment so far in 2009​*(Xinhua)
Updated: 2009-05-27 14:29

China's central government has allocated 270 billion yuan ($39.7 billion) for infrastructure investment so far this year, a National Development and Reform Commission (NDRC) official told legislators Tuesday.

That amount is part of a planned total of 367.6 billion yuan in the 2009 central budget.

Adding another 30 billion yuan from last year's budget meant that the country had already allocated 300 billion yuan to infrastructure investment since the fourth quarter of last year, NDRC vice director Mu Hong told legislators.

The NDRC is China's top economic planning body.

Mu made his comments during a session on major public investment projects held by the Standing Committee of the National People's Congress, the top legislature.

The money is also part of the 4-trillion-yuan, two-year stimulus plan announced late last year as the economic downturn deepened.

China allocates&#160;$40b for infrastructure investment so far in 2009


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## white_pawn

*$32b plan to form new CBDs, aid industry​*By Qiu Quanlin (China Daily)
Updated: 2009-05-29 10:50

The city Guangzhou is to pump 220 billion yuan ($32.2 billion) into boosting its modern service industry.

The local authority has earmarked two areas of the Guangdong provincial capital to be developed into conceptual central business districts (CBDs), it stated in a new development guideline issued on Wednesday.

Zhujiang New Town, Yuancun and Pazhou will make up one district, while Tianhebei Road, Huanshidong Road and Dongfeng Road will be the other. Both will be formed by 2020.

The CBDs will ensure Guangzhou's future as a business hub by boosting development in finance, trade, information technology, exhibition, premium retail and law, the local government said.

With the CBDs as a platform, the southern metropolis will then establish four core services in outskirt districts, it said, with science research and production in Luogang, logistics in Nansha, air cargo transport in Huadu and Baiyun, and the creative industry in Liwan's downtown Xiguan area.

The guideline also set a new goal for the tertiary industry, to increase to 65 percent of the city's gross domestic product by 2015, and 70 percent by 2020.


Related readings:
Guangdong sees slowdown in foreign trade decreases
Guangdong's Q1 industrial growth slows to a crawl
S China province sees drastic surge in Q1 ship exports
Guangdong sees signs of hope




Ding Li, a researcher with the Guangdong Provincial Academy of Social Sciences, said Guangzhou should strengthen cooperation with Hong Kong to further develop its service industry.

"Hong Kong has developed a sound service industrial system and could help improve Guangzhou's capability to host more international service industries," he said.

Meanwhile, the local government has also attached great importance to attracting more multinational and domestic firms to set up headquarters in the city.

A report by its development and reform commission said Guangzhou ranked third behind Beijing and Shanghai among China's 35 major cities in their capability and potential to spur "headquarters economy" growth.

As the country's third largest metropolis for development capacity, Guangzhou boasts a system covering various major industries and intends to develop its "headquarters economy" by drawing strength from its automobile, iron and steel, petrochemicals and other heavy and high-tech industries.

According to the official website of Guangzhou municipal government, there are 12 districts in Guangzhou, namely, Yuexiu, Haizhu, Liwan, Tianhe, Baiyun, Huangpu, Huadu, Panyu, Nansha, Luogang, Conghua and Zengcheng.

*http://www.chinadaily.com.cn/bizchina/2009-05/29/content_7952753.htm*


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## white_pawn

*$32b plan to form new CBDs, aid industry​*By Qiu Quanlin (China Daily)
Updated: 2009-05-29 10:50

The city Guangzhou is to pump 220 billion yuan ($32.2 billion) into boosting its modern service industry.

The local authority has earmarked two areas of the Guangdong provincial capital to be developed into conceptual central business districts (CBDs), it stated in a new development guideline issued on Wednesday.

Zhujiang New Town, Yuancun and Pazhou will make up one district, while Tianhebei Road, Huanshidong Road and Dongfeng Road will be the other. Both will be formed by 2020.

The CBDs will ensure Guangzhou's future as a business hub by boosting development in finance, trade, information technology, exhibition, premium retail and law, the local government said.

With the CBDs as a platform, the southern metropolis will then establish four core services in outskirt districts, it said, with science research and production in Luogang, logistics in Nansha, air cargo transport in Huadu and Baiyun, and the creative industry in Liwan's downtown Xiguan area.

The guideline also set a new goal for the tertiary industry, to increase to 65 percent of the city's gross domestic product by 2015, and 70 percent by 2020.

Ding Li, a researcher with the Guangdong Provincial Academy of Social Sciences, said Guangzhou should strengthen cooperation with Hong Kong to further develop its service industry.

"Hong Kong has developed a sound service industrial system and could help improve Guangzhou's capability to host more international service industries," he said.

Meanwhile, the local government has also attached great importance to attracting more multinational and domestic firms to set up headquarters in the city.

A report by its development and reform commission said Guangzhou ranked third behind Beijing and Shanghai among China's 35 major cities in their capability and potential to spur "headquarters economy" growth.

As the country's third largest metropolis for development capacity, Guangzhou boasts a system covering various major industries and intends to develop its "headquarters economy" by drawing strength from its automobile, iron and steel, petrochemicals and other heavy and high-tech industries.

According to the official website of Guangzhou municipal government, there are 12 districts in Guangzhou, namely, Yuexiu, Haizhu, Liwan, Tianhe, Baiyun, Huangpu, Huadu, Panyu, Nansha, Luogang, Conghua and Zengcheng.

*http://www.chinadaily.com.cn/bizchina/2009-05/29/content_7952753.htm*


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## white_pawn

*Guangdong sees hope of economic recovery(Xinhua)​*Updated: 2009-05-31 11:05

Guangdong province, an economic powerhouse in southern China, witnessed a slower decline of external trade, a rally in industrial production and a steady growth in investment against the current global downturn in the first four months of this year.

The provincial statistical bureau said on Saturday that in April, Guangdong's foreign trade value was $47.14 billion, a decline of 18.1 percent from the same month of last year. But the value was 5.2 percent above the March level.

The accumulative trade value was down 21.7 percent year-on-year, but the decline rate was 1.4 percentage points below the January-March level.

In April, the province actually used $1.64 billion in foreign direct investment, up 7.2 percent year-on-year. The growth, the third since February, was 1.2 percentage points higher than the March level. FDI actually used amounted to $5.36 billion for the first four months, up 2.9 percent over the same period of last year.

Between January and April, Guangdong invested 286.87 billion yuan in fixed assets, a growth of 13.7 percent year-on-year. The growth rate was one percentage point above the January-March level.

Guangdong's major industrial enterprises, which saw a big decline in the fourth quarter of last year, realized 117.2 billion yuan in output value in April, up 3.5 percent year-on-year or 6.8 percent month-on-month. The industrial output value was up 2.1 percent year-on-year in the first four months, and the growth rate was 1.2 percentage points higher than the January-March level.

Consumption, another important indicator of the provincial economy, remained robust.

In April, Guangdong's retail sales stood at 112.94 billion yuan, up 14.9 percent over the same month of last year. In the first four months of this year, 16.23 million square meters of commercial housing were sold in the province, up 40.8 percent year-on-year.

Guangdong sees hope of economic recovery


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## white_pawn

*New energy seen as new growth engineBy Fu Jing (China Daily)​*Updated: 2009-06-02 09:29

New energy is the focus of a two-tier program that involves the investment of trillions of yuan to add zip to the economy, a senior official said yesterday.

Liu Qi, deputy director of the National Energy Administration, said new-energy output is likely to exceed the targets set by the nation's overall energy plan (announced in 2006) and the renewable-energy plan (released in 2007).

"We are aiming to make the new-energy industry a new engine of development," Liu said.

Following instructions from the Cabinet, Liu and his colleagues "are working intensely so that the draft will be tabled for approval by the higher authorities as soon as possible," he told China Daily after a press conference in Beijing.

The first phase of the program covers a strategic shift in three years to nuclear, solar, wind, biomass power and clean coal technologies - with investment opportunities worth as much as 3 trillion yuan ($439 billion), he said. Phase 2 encompasses the period up to 2020 and will entail far more investment.

According to energy officials, the existing plan for nuclear energy is likely to expand by as much as 50 percent from the level planned in 2006.

Targets may also be raised for renewable energy, whose target for 2020 was set at 15 percent of total output. The actual figures for capital investment and details of the projects are subject to the central government's final approval, Liu said.


The new-energy program is aimed at not only reducing the economy's energy intensity but also identifying potential high-growth areas and driving forces for future development.

Vice-Premier Li Keqiang, in a policy speech on May 21, described the new-energy industry, which includes energy consumption and environmental protection, as a strategic industry.

Officials said that energy specialists were summoned to Beijing on April 2 and have been working on the new program since.

At the press conference yesterday, Zhang Guobao, director of the National Energy Administration, said a new-energy program would be a driving force in growth once the present fiscal stimulus plan has helped stabilize the overall economy.

Beijing has shown keen interest in the development of the new technological frontier after the US, the EU and Japan unveiled clean energy programs against the backdrop of the global financial crisis.

New energy seen as new growth engine


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## white_pawn

*Purchases of US bonds likely to continueBy Zhang Ran and Li Xiaokun​* (China Daily)
Updated: 2009-06-02 10:36

China may continue buying US Treasury bonds and other dollar-denominated assets even though US government debt yielded the lowest return in three decades this year and the dollar is under pressure, experts say.

The comments came as US Treasury Secretary Timothy Geithner yesterday tried to reassure China that its vast holdings of US financial assets are "very safe", and that Washington is committed to a strong dollar as well as a reduction in the budget deficit.

The US' top finance official also promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules.

Geithner, who is in China on his maiden trip as Treasury Secretary, was speaking at Peking University, where he studied Chinese more than two decades ago.

Zhao Quanhou, a senior researcher with the Ministry of Finance, pointed out that "investing in US Treasury bills is an important component of China's foreign currency reserve investments. This type of investment is comparatively safe as the US financial market is the largest in the world and is highly liquid".

"But the timing of purchases is critical. The government should pay close attention to possible fluctuations in the value of the US assets."

Gong Liutang, a professor of Guanghua School of Management at Peking University, agreed, saying that China has limited choices for investing, with US-denominated assets still a "priority" considering overall risk and liquidity.

But they pointed out that China might have to adopt a "de-dollar" strategy if the US failed to restructure its economy by increasing the country's savings rate and reducing its current account deficit.

"In that situation, China will have to speed up the yuan's internationalization and realign the portfolio of its foreign reserves," said Sun Lijian, an expert at Fudan University.

China has turned its huge trade surpluses with the US into the world's largest holdings of Treasury debt.

China now holds about $768 billion of Treasuries as of March.

The government and experts have expressed concern that Washington's mushrooming deficit, generated by massive government borrowing to fuel its economic recovery plan, and the ultra-loose monetary policy will undermine both the dollar and US bonds.

As the media predicted, the Geithner avoided emphasizing repeated US calls for revaluation of the yuan in his speech, mentioning briefly that a more flexible exchange rate regime would spur Chinese domestic demand.

Experts said the move showed Washington's "pragmatic" attitude when seeking help from Beijing.

In his speech, Geithner also backed China for more influence in the framing of international policy.

"China is already too important to the global economy not to have a full seat at the international table," he said.

Though he described the recession as still "powerful and dangerous" in much of the world, Geithner said the global recession seems to be "losing force".

"In the US, the pace of decline in economic activity has slowed ... Households are saving more ... Orders for goods and services are somewhat stronger," he said.

Moreover, the US financial system was healing and it now seemed that the world would avoid financial collapse and deflation, he added.

Geithner spent yesterday in a flurry of meetings with China's top economic team, including Vice-Premier Wang Qishan and the commerce, finance and banking chiefs.

During his meeting with Wang, his Chinese counterpart at the China-US Strategic and Economic Dialogue (SAED), Geithner discussed details of the upcoming dialogue scheduled this summer in Washington.

The US wants to develop relations with China from a long-term and global perspective and handle major economic issues between the two sides under the framework of the dialogue, Geithner said.

Geithner is due to meet with President Hu Jintao and Premier Wen Jiabao today.

Agencies contributed to the story

Purchases of US bonds likely to continue


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## white_pawn

*China may soon revise power goalBy Fu Jing​* (China Daily)
Updated: 2009-06-02 10:21

China will soon announce the revised power supply capacity target for 2020, a senior energy official said yesterday.

Teams of experts and officials are busy reworking the target, which may increase to 1,400-1,500 GW by 2020, said Sun Qin, deputy director of the National Energy Administration. He said speeding up construction of power plants would help stimulate the domestic economy and create more jobs.

The revised target, if approved by the central government, would be nearly a 50 percent increase from the previous goal set by the government in 2006, when it planned to develop 1,000 GW in installed capacity by 2020.

This year, China's power capacity will cross 900 GW and will soon be on par with the US, which has 1,000 GW in electricity supply capacity now.

"To meet the increasing demand for power and face up to the challenges thrown up by financial crisis, we will further accelerate construction of energy infrastructure," Sun said at a news conference held in Beijing yesterday.

Sun, however, did not clarify when the new target would be officially approved. He said China would restructure its electricity supply mix by supporting more investment in nuclear, solar, wind and biomass energy.

In line with the revised target, the ratio of nuclear power to the combined installed electricity capacity will increase to 5 percent in 2020 from 2 percent in 2008. Sun said China's installed nuclear power capacity would increase to 60-75 GW by 2020, from the previous target of 40 GW. It stood at 9.1 GW at the end of 2008.

"All the targets are under discussion and we are drafting the final program documents, which will be submitted to the central government for approval," said Sun.

A senior official with the NEA told China Daily separately that China's highest leadership has called for a revision in the national energy program, in order to help the economy buffeted by the financial crisis.

"The energy infrastructure has seen significant investment and will benefit the industrial chain if it is well developed," said the official, surnamed Ding. She called it a "rational investment area" as China's urbanization and industrialization would continuously expand electricity demand.

China may soon revise power goal


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## white_pawn

*CIC increases its stake in US bankBy Wang Xu (China Daily)​*Updated: 2009-06-03 09:21

China Investment Corp (CIC), the nation's $200 billion sovereign wealth fund, plans to spend $1.2 billion on buying 44.7 million shares of common stock in Morgan Stanley.

Morgan Stanley, the sixth-largest US bank by assets, said last night it was looking to sell approximately 80.2 million shares to raise $2.2 billion in a public offering. That equated to $27.44 per share, an 8.2 percent discount on the closing price on Monday of $29.89 per share.

CIC said in a statement that the purchase raises its equity ownership in Morgan Stanley to approximately 9.86 percent and reduces the bank's overall cost basis and increases its returns potential.

CIC purchased $5.6 billion mandatory convertible securities in Morgan Stanley's common stock in December 2007, representing approximately 9.86 percent equity ownership but its stake was diluted to approximately 7.86 percent after Mitsubishi UFJ Financial Group Inc bought into the bank last October.

Morgan Stanley said yesterday it has not received approval for the deal but it believed that it will satisfy the criteria.

Morgan Stanley received $10 billion as part of the $700 billion Troubled Asset Relief Program, a bailout plan by the US government aimed at shoring up its ailing banking sector.

"Morgan Stanley is widely expected to be able to leverage on its strengthened financial position and will be on the road of resuming its successful trajectory amid the dramatic restructuring of the international financial services industry," CIC said on its website.

CIC was established in 2007 to find better returns for China's massive foreign exchange reserves. It earmarks one-third of its money for overseas investment and two-thirds for the domestic market.

Wang Jianxi, the fund's vice-general manager, said in March that CIC would increase its investment in all classifications, given the global financial crisis had led to a tailspin in asset prices and therefore good investment opportunities.

American Express Co and JPMorgan Chase & Co also announced plans on Monday to raise capital.

CIC increases its stake in US bank


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## white_pawn

*Job growth strong sign of recovery*​By Wang Linyan (China Daily)
Updated: 2009-06-04 09:16

Signaling a recovery in China's employment market, 3.65 million urban residents found new jobs in the first four months of the year, an executive meeting of the State Council presided over by Premier Wen Jiabao said yesterday.

The short-term measures that the country has taken to counter the employment pressures are adequate, said Yang Weiguo, an associate professor at the school of labor and human resources of Renmin University of China.

In the long run, consideration is needed in creating jobs that meet the needs of the country's development, Yang suggested.

China's urban unemployment rate was 4.2 percent at the end of 2008 and 8.86 million urban residents were registered as jobless, according to the Xinhua News Agency.

The government has taken a series of measures to stabilize and increase employment since the second half of last year.

They include expanding domestic consumption, reducing enterprises' tax burden, encouraging graduates and migrant workers to be self-employed and setting up vocational training.

The government plans to allocate 42 billion yuan ($6 billion) from the 2009 central budget to increase employment, up 66 percent from last year, said a statement from the meeting.

However, it pointed out that the employment situation in China is still grim, with an oversupply of laborers and structural problems, as China's economy is not recovering on a solid footing.

Lu Quan, a PhD from the Social Security Research Center in Renmin University of China, said university students and migrant workers are the two main sources of pressure.

Lu suggested employment policies should relate to industry policies.

The development of the service industry would also help create jobs for migrant workers, he said.

According to government figures, 6.11 million new graduates will be fighting for positions this year, along with the nearly one million who have been unemployed since last year.

Yang said most of the university students can find jobs.

"It's just some are selective with what they can get. But they will adjust their expectations along with the change of the labor market," he said.

Enterprises and scientific and research organizations are encouraged to take university graduates.

The government will also encourage the development of small- and medium-sized enterprises and those of the service sector, which will provide more jobs than big enterprises, the statement said.

It said the vocational training plan should be implemented sooner and enterprises should be encouraged to offer skill training for its employees.

"Specialized skills allow these young people to have job choices, but also match the needs of the country's industry development," Yang said.

"Besides, it's more effective to train them at a younger age."

Job growth strong sign of recovery


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## white_pawn

*Minister makes call to go green​*By Li Jing (China Daily)
Updated: 2009-06-05 09:22

A top Chinese minister has a word of warning for the newly rich.

"It is a disgraceful lifestyle to drive a BMW but have only dirty water to drink," said Zhou Shengxian, minister of environmental protection.

In an exclusive interview with China Daily, Zhou said he is concerned about a lack of respect for the environment as the country carries out its economic stimulus plan, which Beijing introduced last November to temper the impact of the global financial crisis.
To coincide with World Environment Day today, Zhou announced he is leading his 200-odd staff into all-out warfare, including a publicity plan to promote green modernization and ensure environmental well-being for the country's 1.3 billion people in a 30-trillion yuan economy.

Fact-finding teams from the Ministry of Environmental Protection recently visited some 40 cities and discovered defects in the 4-trillion yuan stimulus package, which is funding investment in many new infrastructure projects and factories.

Of particular concern, he said, is:

environmental protection not being highlighted in the overall plan;
new industrial operations causing additional environmental problems in China's central and western frontier regions; national environmental protection policies being affected; environmental management by companies becoming more relaxed, and corporate investment in pollution control seeing a marked decline.

Zhou pledged the ministry will use the most stringent measures to ensure the country's green development, especially using its power in the approval and review of new projects.

From November to the end of February, the ministry rejected or suspended approval of 14 polluting and high energy-consuming projects with development budgets totaling 104 billion yuan.

On top of that, ministry officials told China Daily yesterday that due partly to government policing of investment projects, China is fully capable of meeting its goals in the emission control of sulfur dioxide and chemical oxygen demand, a main index of water pollution. The target is to cut emissions by 10 percent of the nation's 2005 level, in line with the goals for the country's 2006-2010 development program.

Controlling those two emissions had only been possible when developed countries' per capita GDP reached the $20,000 level. It is a feat for China to achieve the same when its per capital GDP is only around $3,000, he said.

This is because the country has come to realize that no economic policy can be successful if not matched by sound environmental policy, Zhou said.

Convinced that China can "use the crisis as an opportunity to adjust its industrial structure," Zhou also said he and his staff would keep an eye out for local governments attempting to ignore environmental protection in their investment initiatives.Minister makes call to go green

http://www.chinadaily.com.cn/bizchina/2009-06/05/content_8251884.htm


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## white_pawn

*Merger talks fuel interest in two Shanghai carriers​*By Wang Ying (China Daily)
Updated: 2009-06-05 10:41

Rumors about the impending merger of two Shanghai-based carriers, China Eastern and Shanghai Airlines have been doing the rounds despite denials by managements of both the companies.

This time the rumors have been attributed to a journalist who claims to have overheard China Eastern Chairman Liu Shaoyong confirming the news at a recent dinner party.

The incessant merger news has also had an impact on the share prices of the two carriers. Shares of the smaller Shanghai Airlines rose 0.35 percent to 5.67 yuan in the past three days, while those of the ailing ST China Eastern fell 1.86 percent to 5.27 yuan in the same period.

Analysts said despite the slight fall in China Eastern shares, both companies have gained from the rumors.

"The share prices of the two airliners showed that the market is expecting something big to happen. Otherwise, the two debt-stricken carriers cannot carry such a high price, or we can say they are over-valued," said Yao Jun, industry analyst, China Merchants Securities.

"It is true a merger between the two will be an opportunity for the carriers to get out of the current problems," Yao said.

The idea of merging the two airlines was first broached in 2002 by the Shanghai municipal government, as it was keen on building a superpower local carrier. Although the proposal has been dogged by political and inter-regional complicities, the stock market has never given up its imagination of a super airline based in China's busiest air traffic hub.

The latest merger rumors have been denied by both companies. Luo Zhuping, board secretary with China Eastern, said he has not heard of any new development on the merger front, while Xu Junmin, board secretary of Shanghai Airlines denied any knowledge of an impending merger. "Our airline has been operating normally as usual," he said.

Plagued by fluctuations in fuel prices and falling demand due to the financial crisis, the two carriers have required massive government bailouts.

Falling demand along with hefty losses on hedging contracts saw China Eastern report a net loss of 13.93 billion yuan in 2008, a free fall from previous year's 604 million. Its debt-to-equity ratio hit 115.13 percent by the end of March.

Shanghai Airlines is in no better situation, with its net loss widening to 1.25 billion yuan in 2008 from 2007's 435.12 million yuan. The carrier's debt-to-equity ratio touched 97.26 percent in March.

Analysts said that there are a number of ways that the two carriers could be restructured. China Eastern could acquire Shanghai Airlines or else downsize itself to a local enterprise controlled by the State-owned Assets Supervision and Administration Commission of the Shanghai government. There is a third proposal to merge selective assets of China Eastern and Shanghai Airlines.

The forthcoming World Expo 2010 will provide a golden opportunity for Shanghai-based carriers. If they can produce a win-win merger this time, they can benefit from the surging demand triggered by the expo, analysts said.

Li Lei, aviation analyst, CITIC China Securities, said: "China Eastern currently has a 33 percent share of the Shanghai market, while Shanghai Airlines holds around 20 percent. A merger would guarantee the dominant position in Shanghai for the resultant entity."

Merger talks fuel interest in two Shanghai carriers


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## white_pawn

*China Railway bags 5 orders​*By Li Fei (China Daily)
Updated: 2009-06-05 10:28

China Railway Group has won five railway and light rail orders with a combined value of 10.1 billion yuan, bringing the total amount of contracts awarded to the State-owned rail builder to 200 billion yuan in the past few months.

Analysts said the contracts won so far represent only part of the railway building frenzy embodied in the country's 4-trillion-yuan economic stimulus package announced late last year after the outbreak of the global financial crisis.

The government hopes the package, including massive expenditure on railway construction, will boost domestic demand to help maintain credible economic growth in the face of shrinking exports.

The total value of the contracts accounted for about 4.31 percent of China Railway's revenues in 2008 according to Chinese accounting standards, China Railway said in a stock exchange filing.

One of its subsidiaries won a contract to build a passenger-only rail between Panjin and Yingkou in Liaoning province, valued at 4.44 billion yuan, the single largest order among the five projects it won, according to the company.

The country's largest railway and highway builder was also awarded a 3.44-billion-yuan order to build a passenger-only railway between Hefei and Bengbu within Anhui province.

It also won a 590-million-yuan contract to build a part of a subway line in Beijing and a 690-million-yuan light rail project in Chongqing.

"The new order intake is slightly better than our expectations and we envisage a 50 percent jump in mid-year earnings," securities house BOC International (China) Ltd said in a note.

China Railway, analysts say, will stand to gain the most in China's push to build more railroads in the coming years and the massive infrastructure boom expected as a result of the 4-trillion-yuan stimulus plan.

China is expected to spend 5 trillion yuan until 2020 to build 41,000 km of new railways and this year alone 600 billion yuan will be poured into railway and related construction projects.

"Infrastructure construction projects, especially in the railway sector, will only accelerate in the next two years," said Xu Yongchao, analyst, China Minzu Securities.

"The abundant orders the company has in hand now means it can guarantee robust revenue and profit growth in the coming years," Xu said.

China Railway shares edged up 1.64 percent to close at 6.19 yuan in Shanghai trading yesterday.

The company's revenue is expected to rise by nearly a quarter to 280 billion yuan this year from about 225 billion yuan in 2008, its President Li Changjin said in April.

The rail builder's net profit rose 76 percent to 1.2 billion yuan in the first quarter, while its revenue jumped 70 percent to 60.1 billion yuan.

The construction giant, however, posted a steep drop in 2008 earnings, dragged down by a 4.1 billion yuan foreign-exchange loss.

The builder is planning to issue bonds to raise 12 billion yuan to fund operations and repay loans.

China Railway bags 5 orders


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## aimarraul

Rio deal off; Chinalco seeks other acquisitions
By Jiang Wei (China Daily)
Updated: 2009-06-06 08:18

"Sorry," Rio Tinto told its would-be Chinese investor on Friday. "No deal now."

The Aluminum Corp of China (Chinalco) confirmed the collapse of a deal to invest $19.5 billion in the Anglo-Australian mining company, with general manager Xiong Weiping saying he was "very disappointed".

The world's third largest mining company will now pay Chinalco $195 million as compensation for termination of the deal.

But despite the discouraging outcome, Chinalco will continue to look for investment opportunities outside the Chinese mainland, Xiong said. "Although the Rio Tinto deal has fallen through, Chinalco's strategic aim of building an international multi-metal mining company will not change."

Rio Tinto now seeks to raise $21 billion from a share sale and an iron ore joint venture with BHP Billiton, its rival Australian company, to solve its financing problems. The company said on Friday that it would raise $15.2 billion in a share sale in a 50-50 joint venture with BHP Billiton, and get $5.8 billion from its rival to equalize their contributions.

Chinalco would have invested $12.3 billion in joint investments in aluminum, copper and ore mining with Rio Tinto, and spent $7.2 billion on convertible bonds in the company. If redeemed for shares, the bonds would have almost doubled Chinalco's existing 9.3 percent stake in the Rio Tinto Group to 18 percent.

Geng Nuo, analyst with Shenzhen-based brokerage firm Great Wall Securities, said the deal's failure "is a setback for Chinalco's expansion strategy, but it is not expected to hurt its overseas investment strategy in the long run".

Chinalco's loss, however, has not come as a major surprise to Peng Bo, analyst with another Shenzhen-based brokerage Guosen Securities, because the international non-ferrous metal market has been showing signs of recovery.

"The Chinalco offer came in February when prices of most non-ferrous metals had hit the bottom," Peng said. "Rio Tinto can afford to go back on its words now that the market has turned around."

Though Treasurer of Australia Wayne Swan said the aborted deal was a commercial matter for the private sector and did not concern the government, some observers argued Rio Tinto might have been under political pressure not to tie up with Chinalco.

Wang Zhile, a specialist in foreign investment, said the pressure in Australia was quite remarkable. Opponents ran commercials on TV asking the Australian government to block the deal. Some Rio Tinto shareholders even alleged that the deal favored the State-owned Chinese company.

"Some may argue that blocking the deal was good for a country's economic security but in this era of globalization investing in each other's companies would give countries a much greater sense of security," Wang said.


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## Joshi

Chinese passing off fake drugs as 'Made in India'
Chinese passing off fake drugs as 'Made in India'- Pharmaceuticals-Healthcare / Biotech-News By Industry-News-The Economic Times

NEW DELHI: Are fake drugs manufactured in China being pushed into various African countries with the `Made in India' tag? The Indian government 

has long suspected this to be the case, but it now has definite evidence for the first time. 

Last week, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China. 

New Delhi has registered ``strong protest'' with the Chinese mission and China's foreign trade ministry, according to sources in the commerce ministry. 

India's High Commissioner in the Nigerian capital of Abuja, Mahesh Sachdev, had earlier written to then commerce secretary GSK Pillai, alerting him to the large seizure: ``While this is a case of a Chinese company exporting fake `Made in India' labelled medicines which has been accidentally exposed, it is unlikely to be an isolated incident. Indeed there is no reason for Nigeria to be the only country to be receiving such consignments.'' 

His letter went on to say: ``Fake foreign-made generics carrying `Made in India' label can do tremendous harm to our interests. It not only dents our image and takes our legitimate market share, it also erodes the distinction between generic and fake medicines that we have been campaigning for at WHO and WTO''. 

Commerce ministry sources said: ``We have had many complaints about such fake drugs from China being offloaded as Indian drugs in countries like Ghana, South Africa, Ivory Coast and West Africa, in general, where India has a substantial market share. But so far there has been no formal complaint. This is the first time that such a large international consignment has been seized and this will be taken up strongly with the Chinese side.'' 

Sachdev in his letter said that he had spoken to the director-general of NAFDAC Dr Paul Orhii who said that the Nigerian preference for generics made such cases of fake drugs more common. He expressed NAFDAC's determination to curb circulation of substandard fake medicines. 

India and China have been held primarily responsible for fake drugs in the Nigerian market in particular and Africa in general. About 60% of drugs in Nigeria are imported. Between 2001 and 2007, more than 30 Indian and Chinese companies were banned in Nigeria for exporting fake drugs to the country. 

However, Dr Mira Shiva of the Initiative for Health Equity and Society (IHES) told TOI that both India and China being large manufacturers of generics, multinational firms would look to discredit the two countries and label their drugs as substandard, so that they would have greater access to the African markets. She warned against the two countries trying to run each other down before ascertaining the full facts in the case to rule out any orchestration, but added that India ought to be more careful to ensure the quality of the drugs exported as well as sold domestically.

______________________________________________

All out in their true colours.....


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## Choppers

Well we all know tht Chinese are Pirates No.1.

Last time i heard they were manufacturing Bajaj Pulsar disguised as "Gulsar" and exporting them to African Nations.So nothing new.


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## Joshi

Choppers said:


> Well we all know tht Chinese are Pirates No.1.
> 
> Last time i heard they were manufacturing Bajaj Pulsar disguised as "Gulsar" and exporting them to African Nations.So nothing new.



I think you didnt get it. They are selling it with 'Made in India' tag. This is new. They can ell whatever fakes they want to sell. But dont put India's name. I tell you why. No one buy their drugs now, so they are upto ruining others' brands now.


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## mDumb

> I think you didnt get it.They are selling it with 'Made in India' tag.



C'mon dude, don't be so gullible. Yeah, our drugs are bad let's blame it on the Chinese.


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## Gabbar

*There is a already another thread about this!!! Mods please combine them.*

http://www.defence.pk/forums/curren...hinese-passing-off-fake-drugs-made-india.html


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## M.AKRAM NIAZI

Analysis of Countries from Where Drugs are mainly imported:
Finished drugs are mainly imported from neighboring countries China, India and in some extent from Bangladesh. Therefore it is necessary to analyze their own import policies to know that how they are protecting their local Industry and status of compliance of their Industries to GMP and regulatory requirements

________________________________________________________________________
India

For Protection of Local Manufacturer following measures
Were taken By Indian Government.
Industrial licensing for the manufacture of all drugs and pharmaceuticals has been abolished except for bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids, and specific cell/tissue targeted formulations.
For Restricting Imports following measures
Were taken By Indian Government.
	Ministry of Health and Family Welfare will enforce strict regulatory processes for import of bulk drugs and formulations.
	For imported formulations, the margin to cover selling and distribution expenses including interest and importers profit shall not exceed fifty percent of the landed cost.
	Due to Government policies and low cost of domestically produced drugs and the absence of patent rights regulations has made the Indian Market less attractive for foreign companies.
Quality of Indian Medicines.
Counterfeit drugs could be the single biggest problem in India in the next ten years due to the growth of garage-based drug manufacturing outfits, rampant corruption, and weak drug control, A 2003 Scrip report estimated that 15 to 20% of the medicines sold in the country are counterfeits. A case study reported in a 2001 conference showed the following percentage (out of 125 tracer medicines) that failed quality testing: 6% from the public sector, 12.7% from the private sector; and 0% from NGOs. 
In 2001, Lancet reported that, according to WHO statistics, India produces as much as 35% of the fake and substandard drugs in the world. A powerful group of manufacturers have taken over much of the production during the past three years. It is reported that these Counterfeit drugs are manufactured mostly in the northern states; but these fake drugs are widely available throughout the country. They are available as well in Myanmar (Burma) and Cambodia, and their distribution may even extend as far as the former Soviet states, as evidenced by the arrest of four Uzbek women caught trying to smuggle them to be sold in their country. (Ref: 2004 The United States Pharmacopeial Convention, Inc. A Review of Drug Quality in Asia with Focus on Anti-Infective).
India was among the six countries that participated in a drug quality study which collected a total of 71 samples of the antituberculosis drugs isoniazid (INH) and rifampicin (RMP) as a single entity or a fixed-dose combination (FDC) (see Multi-country studies). Overall, 10% (4/40) of all samples obtained from all six countries, including 13% (4/30) RMP were substandard, containing < 85% of stated content. More FDCs, 21% (5/24), than single drug samples, 13% (2/16), were deemed substandard. 
_____________________________________________________________________
China.
Quality of Chinese Medicines:
According to the SDA, a nation-wide survey on the quality of medicines carried out in 1998 found that 13.1% of the 20,000 batches tested were either counterfeit or fell below minimal pharmaceutical standards. 
In 1997, China News Digest reported that the Health Ministry of China inspected 1100 medicines and found 138 products that failed to meet national standards. Of these, 48 were fake medicines with pirated registration numbers. 
At the 2002 Global Forum on Pharmaceutical Anti counterfeiting held in Geneva, Switzerland, a representative from the Glaxo SmithKline (GSK) pharmaceutical company reported on the counterfeiting of two of their products in China. The first was Imuran tablets. The counterfeit Imuran was found to contain the correct amount of azathioprine, the active ingredient; however, the tablets were labeled incorrectly as azathiopring. Upon testing, the tablets failed the quality specification for disintegration time. The tablets were still intact after four hours in water at 37 °C, while genuine tablets dissolve in 45 minutes. The other drug was Zinacef tablets. The genuine oral dosage form contains cefuroxime axetil; the counterfeit Zinacef tablets revealed the presence of cefuroxime sodium, the injectable dose form. When taken orally, cefuroxime sodium is absorbed minimally by the digestive system resulting in no therapeutic benefit. 
_______________________________________________________________________
Bangladesh.
For Protection of Local Manufacturer following measures
were taken By Government.
1. The importing of a drug which is the same or one produced in the country, or a close substitute for it, may not be imported, as a measure of protection for the local industry. However, if local production is far short of need, this condition may be relaxed in some cases.
2. A basic pharmaceutical raw material, which is locally manufactured, will be given protection by disallowing it or its substitute to be imported if sufficient quantity is available in the country.
3. No foreign brands may be manufactured under license in any factory in Bangladesh if the same or similar products are available/manufactured in Bangladesh. 
4. No multinational company without their own factory in Bangladesh will be allowed to market their products after manufacturing them in another factory in Bangladesh on a toll basis.
Restrictions on patent rights discourage foreign investors to come up actively in the pharmaceutical market in Bangladesh. Moreover introduction of new molecules is difficult due to slow registration process and restrictions.
Quality of Medicines from Bangladesh:
Among the total 245 pharmaceutical manufacturers only top 20 leading manufacturers are producing good quality medicines in the country and most others are engaged in the production of substandard or fake drugs. Substandard or fake versions of life-saving drugs are alarmingly prevalent in Bangladesh markets. In some cases, it is around 70% to 80%.
One media report showed that among all the pharmaceutical manufacturers only 20 to 25 companies are producing quality medicines in the country. The situation clearly raises a question about the role of the remainder manufacturers.
They are mainly involved in the production of fake/substandard or imitating renowned brands of various drugs. At present, spurious drugs have been flooded all over Bangladesh. Another testing conducted by the drug regulating body found 69% paracetamol tablets and 80% ampicillin capsules as substandard from some small manufacturers.
A recent assay involving 15 brands of ciprofloxacin showed that 47% of the collected samples containing active ingredient less than the required specification.
In a survey conducted during 1988-91, it was found that 66 of the 198 licensed manufacturers were each producing between 1 and 16 substandard drugs (49% OTC drugs and 6.3% injectables, the remainder being non-injectable prescription drugs). Of the OTC products, about 36% was paracetamol and 41% consisted of antacids. The content of the active ingredients was found to be insufficient. 
In 1992, quality studies were conducted on paracetamol tablets, ampicillin capsules, cotrimoxazole tablets/suspensions, vitamin B-complex tablets/capsules/injectables, and vitamin B-2 tablets. A total of 137 brand samples of these drugs were obtained from retail shops in various parts of the country and analyzed for level of content of the active ingredients as well as the disintegration of tablets. Results showed 37 samples were substandard, all manufactured by small companies. Of the 16 brands of paracetamol tablets and 10 brands of ampicillin capsules that were substandard, 11 and 8 respectively, had previously been considered substandard in an assessment conducted by the regulatory authority. This holds true also for the two brands of cotrimoxazole suspension found to be substandard. All analyzed products for 13 of the top 15 companies in Bangladesh met the required standards. 
A recent case study involving a sample of 15 brands of ciprofloxacin collected for chemical assay by HPLC and bioassay revealed seven brands containing active ingredient less than the USP specification. 
(Ref: 2004 the United States Pharmacopeial Convention, Inc. A Review of Drug Quality in Asia with Focus on Anti-Infectives )

Conclusion:
From all above analysis it is clear that importing Drugs from these countries will be not only harmful for the economy but also dangerous for the health and safety of the nation.

Therefore, it is needed to restrict import of Low Quality Finished products specially from India and China or any other country by levying Protection duties on products which are produced locally and measures should be taken to improve growth of Local Pharmaceuticals as well as to promote exports of Pharmaceuticals.

M.AKRAM KHAN NIAZI.
Email:akrumniazi@hotmail.com
Karachi,Pakistan.

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## aimarraul

*2.7 million units of "home appliances going to the countryside" sold in the first quarter*

According to China's Ministry of Commerce, a total of 2.7 million units of "home appliances going to the countryside" have been sold in the first quarter of 2009 for 4 billion yuan. Of these 2.7 million units, 1.485 million units were sold in March for 2.24 billion yuan, representing an increase of 70 percent and 72 percent year-on-year, respectively.

The "home appliances going to the countryside" program has stimulated the development of the electronic manufacturing and home appliance industries. It has also boosted the development of various industries, including chemical engineering and mechanical manufacturing of steel, such as sheet steel.

Li Yizhong, Minister of Industry and Information Technology of China, said that, "Facts prove that if the "home appliances going to the countryside" program continues to last for one year, two years or three years, it is likely to produce very noticeable effects in improving the development of the electronics industry and electronic manufacturing industry."

The "home appliances going to the countryside" program started back in December 2007. Under the program, farmers who purchased home appliances which were included on the subsidy list received partial financial subsidies. At first, the program was given a trial run in Shandong, Henan and Sichuan provinces as well as in Qingdao. Its scope was then expanded to 14 provinces in 2008.

This year, all provinces, autonomous regions and municipalities directly under the central government are planned to be included in the program. After farmers buy the products within the scope of the program, they can apply to the town and township financial sectors of their registered residence within a specified time for subsidies after showing relevant documents. And finally, the county (and county city) financial departments, after examination and review, will transfer the subsidy funds to the farmers' saving accounts.


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## Joshi

mDumb said:


> C'mon dude, don't be so gullible. Yeah, our drugs are bad let's blame it on the Chinese.



Read the report before speaking anything on the comments. Read this now...


> Last week, the *National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria* issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China.



It's the Nigerians who found out. OK?


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## Peace_maker

http://www.chinamotorcycleparts.com/motor/image/GULSAR180.jpg


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## mDumb

> Read the report before speaking anything on the comments. Read this now..



Any bozo can read but can you think? That was my point!!!!



> It's the Nigerians who found out. OK?



And you ******* believe the Nigerians? ****, they have been known to steal money from the US citizens. Hey dude, I just got inheritance money ($5million), if you deposit $50K into a designated account you can have the $5million.


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## Communist

The opening sentence says it all about the real victim. 

ARE YOU AN international pharmaceutical company, finding a place for your banned drugs to recover from your losses? Don&#8217;t worry, we have got the solution &#8212; come to India!

Well it does not need a Ripley&#8217;s Believe it or Not show to make people aware that India has become a hub of banned drugs. You will be shocked to find the list of drugs, which we consume and are actually banned in other countries. These drugs are selling as hot cakes in India. It is ghastly, but true.

India has become a dumping ground for banned drugs. The business for production of banned drugs is blooming and because there are more consumers here and all illegalities are duly obeyed. The irony is that very few people know about the banned drugs and consume them unaware, causing a lot of damage to these people. The issue is severe and we must not delay in spreading the warning message to the offenders and innocent people. 

As big time business enterprises and small time defaulters, pharmaceuticals have been growing in every direction. There are few provisions for a proper check and control of spurious drugs in Indian markets. Worst than that is the little knowledge and slapdash attitude of the buyers. Even at this time, a large population takes medicine and drugs without prescribing a doctor, which in fact is a very wrong decision and can be dangerous.

Drugs that have been globally discarded but are available in Indian markets include:

Analgin
It is a painkiller
Reason for ban: Bone marrow depression.
Brand name: Novalgin

Cisapride
For acidity, constipation
Reason for ban: Irregular heartbeat
Brand name: Ciza, Syspride

Droperidol
Anti-depressant. Reason for ban : Irregular heartbeat.
Brand name: Droperol 

Furazolidone
Anti-diarrhoeal
Reason for ban: Cancer
Brand name: Furoxone, Lomofen

Nimesulide
Painkiller, fever
Reason for ban: Liver failure
Brand name: Nise, Nimulid

Nitrofurazone
Anti-bacterial cream
Reason for ban: Cancer
Brand name: Furacin

Phenolphthalein
Laxative
Reason for ban: Cancer
Brand name: Agarol

Pheylpropanolamine
Cold and cough
Reason for ban: stroke
Brand name: D&#8217;cold, Vicks Action - 500

Oxyphenbutazone
Non-steroidal anti-inflammatory drug
Reason for ban: Bone marrow depression
Brand name : Sioril

Piperazine
Anti-worms
Reason for ban: Nerve damage
Brand name: Piperazine

Quiniodochlor
Anti-diarrhoeal
Reason for ban: Damage to sight
Brand name: Enteroquinol

To ensure maximum safety and security, it is advisable to get only drugs prescribed by a medical practioner. Also, ask for the details like the name of the company that manufactures it. Always buy medicines from a recognized drug store.

Killer pills: Banned but available


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## Communist

Dealing with fake drugs

R. RAMACHANDRAN

The Mashelkar Committee, which studied the various aspects of the growing threat from spurious drugs, submits an interim report recommending stringent punishment for offenders.

THE Indian pharmaceutical industry has a domestic turnover of more than Rs.20,000 crores and exports over Rs.10,000 crores. It is also growing at the rate of over 10 per cent for the last decade and is said to be the fourth in the world in terms of volume. But a consumer has good reasons to be concerned about the lack of availability of safe and genuine medicines. For, the problem of spurious and substandard drugs in the country is quite rampant, as is evident from periodic reports in the media on seizures and confiscation of fake drugs from large consignments or godowns. These, however, would constitute only a small fraction of the real extent of the illegal activity, which perhaps is no different from the extent of counterfeit trade in other commercial products... 

Problem areas

A list of possible factors contributing to proliferation of spurious drugs, according to the Mashelkar Committee Report

1. Lack of enforcement of existing laws;

2. Weak penal action;

3. Very remunerative trade;

4. Large-scale sickness in small scale pharmaceutical industry*;

5. Availability of improved printing technology that helps counterfeiting;

6. Lack of coordination between various agencies;

7. Too many retail and wholesale outlets**;

8. Inadequate cooperation between stakeholders;

9. Lack of control by importing/ exporting countries***;

10. Widespread corruption and conflict of interests.

* The report does not provide any data on the extent of this problem and reasons thereof.

** According to the Health Ministry, there are over 0.35 million sales outlets in the country (November 2002 data).

*** This appears as a casual statement in the report with no evidence of any effort at obtaining data from importing countries on rejected consignments, their sources, and so on. Even accepting the absence of controls - highly unlikely, given the nature of countries that are likely to export to India - in the exporting countries, this also points to the absence of testing mechanisms at the Indian ports. 

I think Indians first try to deal with their homeland fake drug problems instead of constantly reciting the same lyrics.

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## Communist

Drugs Banned worldwide still available in India ( A drug banned in most parts of the worl...)

A drug banned in most parts of the world due to its side effects is still available in India,// despite reports of serious adverse events observed among several children who had been taking it in the Sub-continent.

The drug Nimesulide, a non-steroidal anti-inflammatory drug, which has been reported as causing liver toxicity is still widely used in India commonly for pain relief and fever although it was approved for use in India in 1994 for painful inflammatory musculoskeletal disorders. Besides being available as a single ingredient, nimesulide is also available in more than 30 other drugs and as drops for children aged under1 year. All are unapproved by the drugs controller and therefore illegal.

The drugs controller general of India, Ashwini Kumar, has said that the government was appointing a committee to look into the issue of adverse reactions to the drug. However in a statement made by the deputy drugs controller, Ram Teke, has been cited as saying that there was no move to reconsider its use or approval.

At present there is no system of monitoring adverse drug reactions in India hence drugs that are banned globally or whose use is severely restricted or not approved owing to serious side effects are freely available in India. Some of the names of the drugs banned in other parts of the world but available in India include anagen, cerivastatin, droperidol, furazolidone, lynestrenol, nitrofurazone, phenformin, phenolphthalein, phenylbutazone, piperazine, quiniodochlor.

Leading doctors in India say that if a particular drug is bad and harms peoples health, it has to be banned immediately and they also stress on the fact that at present such decisions are taken only to help manufacturers and to suit the commercial interests of the pharmaceutical companies thereby affecting the drug regulatory mechanism in India and until such issues are not sorted out the existing situation would prevail.


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## Communist

Banned drugs sold in India that you should avoid articles Page - From www.HumNRI.com

India has become a dumping ground for banned drugs also the business for production of banned drugs is blooming. Plz make sure that u buy drugs only if prescribed by a doctor(Also, ask which company manufactures it, this would help to ensure that u get what is prescribed at the Drug Store) and that also from a reputed drug store. Not many people know about these banned drugs and consume them causing a lot of damage to themselves.


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## Communist

*Banned Drugs commonly available in India..Very Carefull*

Please Read Very Carefully - INFORM ALL YOUR FRIENDS & FAMILY MEMBERS

India has become a dumping ground for banned drugs; also the business for production of banned drugs is booming. Plz make sure that u buy drugs only if prescribed by a doctor(Also, ask which company manufactures it, this would help to ensure that u get what is prescribed at the Drug Store) and that also from a reputed drug store. Not many people know about these banned drugs and consume them causing a lot of damage to themselves. We forward Jokes and other junk all the time. This is far more important.

Please Make sure u forward it everyone u know.

DANGEROUS DRUGS HAVE BEEN GLOBALLY DISCARDED BUT ARE AVAILABLE IN INDIA . The most common ones are action 500 & Nimulid. 

Banned Drugs commonly available in India..Very Carefull | Gleez


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## Communist

India: a market for banned drugs - The Financial Express

New Delhi, Jul 5 : Thanks to a virtually &#8220;absent&#8221; adverse drug reaction mechanism in the country, drugs like Analgin, Cisapride, Nimesulide, and Piperazine, discarded worldwide due to serious side effects, are among the bestsellers in India. According to a report of the World Health Organisation, there has not been a single instance of adverse drug reaction reported against any drug in the country.

The country has become a dumping ground for discarded drugs and the business of production of these drugs is booming. Some of the most common ones include Nise (Dr Reddy&#8217;s), Nimulid (Panacea Biotec) that are discarded for reported liver damage, while Vicks Action 500 from the stable of Procter and Gamble is discarded for increasing chances of brain haemorrhage. Anti-depressant drug Droperol (produced by Triokka) has been discarded for irregular heartbeats in patients, an industry expert told FE. Anti-diarrhoeal drug Furoxone (from the house of Glaxo) was withdrawn from the market after reports of cancer in some patients, who were administered the drug, editor, Monthly Index of

Medical Specialities, CM Gulati, said.

India&#8217;s contribution to the worldwide collection of data on the side effects of different drugs is dismal. Countries like Ireland, Switzerland and Italy, with a population of about 4 million, 33 million and 57 million, respectively, had submitted 25, 33, and 225 adverse drug reaction on nimesulide. However, India, with over 1 billion population did not report any. Another drug Sildenafil (erectile dysfunction drug) had 18 adverse drug reactions reported from Australia but none from India.

According to a health ministry source, monitoring of adverse drug reaction is not followed in the curriculum for medical students in India, and majority of doctors do not maintain records on patients.

Assessing adverse drug reaction is not an easy task and in a developed country like the US not more than 10&#37; of the side effects are recorded, he added.


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## Communist

*India has become a dumping ground for banned drugs*

India has become a dumping ground for banned drugs; also the business for production of banned drugs is blooming. Plz make sure that u buy drugs only if prescribed by a doctor (Also, ask which company manufactures it, this would help to ensure that u get what is prescribed at the Drug Store) and that also from a reputed drug store. Not many people know about these banned drugs and consume them causing a lot of damage to themselves. 

India has become a dumping ground for banned drugs

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## white_pawn

*Ping An to buy stake in Shenzhen Development Bank(Xinhua)​*Updated: 2009-06-13 09:09

China Ping An Insurance (Group), the nation's second largest insurer, said late Friday that it planned to buy stake worth up to a combined 22 billion yuan ($3.2 billion) in Shenzhen Development Bank.

Ping An said in an online statement that it had agreed to purchase up to 585 million new shares from Shenzhen Development Bank for 10.7 billion yuan, or 18.26 yuan per share.

The company said it would also buy 520 million shares from the US-based TPG's Asian arm Newbridge Capital for 11.45 billion yuan by the end of 2010. Newbridge Capital is currently the top shareholder in Shenzhen Development Bank.

The two deals would enable Ping An to acquire a nearly 30-percent stake in Shenzhen Development Bank, and become its top shareholder.

But the deals still need regulatory approval from the government.

Frank Newman, president of Shenzhen Development Bank, said the deals would enhance the bank's capital adequacy ratio, and is good to its long-term development.

Ma Mingzhe, president of Ping An, said the move is in accordance with the company's strategy to engage in more comprehensive financial services and achieve a balanced growth in insurance, banking and investment.

The Ping An Group, together with Ping An Life Insurance, currently holds a 4.68 percent stake in Shenzhen Development Bank.

Ping An to buy stake in Shenzhen Development Bank


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## TopCat

Indian drugs law is horrible. They make composite drugs and are banned in most of the countries including BD. Composite drug means you put multiple compound in one single drug, for instance in a antibiotic capsule you put 6 different kind of ingredients thinking, if one does not work then the other will. It reduces the necessity of diagnosing the exact cause of diesease.


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## white_pawn

*Niche in Europe for China cars?​*By Li Fangfang (China Daily)
Updated: 2009-06-15 08:08'

The ongoing financial crisis that has hit Western countries especially hard is now giving China's homegrown auto brands some traction in Europe, a must-win battlefield for all international manufacturers.

"If they (Chinese automakers) do it in Europe, they can do it everywhere," said Hans-Ulrich Sachs, managing director of HSO Motors Europe, sales agent for China's Brilliance Jinbei Automobile Co Ltd in Germany.

"I believe Chinese auto brands will have a shorter journey to go than their Japanese and Korean counterparts did decades ago," said Detthold Aden, president and CEO of BLG Automobile Logistics, Germany's biggest logistics company, which is based in the northern port city Bremen.

Aden said he believes that the financial crisis, which makes smaller and cheaper cars popular, provides Chinese medium- and low-end vehicles the best opportunity in Europe.

To boost car sales the German government this January began providing subsidies of 2,500 euros to consumers for every vehicle more than nine years old that is traded for a new car with a smaller engine capacity.

In April, the government raised total funds available for subsidies to 5 billion euros from an initial 1.5 billion euros in the scheme that will expire at the end of the year.

"It is (a chance for) a niche market for Chinese auto brands," said Aden.

Tong Zhiyuan, president of China's Huatai Automobile Group, agrees with Aden. "It's an opportunity for Chinese cars to enter Europe when local markets cry out for small cars with low prices and good performance."

Tong added that by starting in the small car segment, Chinese carmakers can escape a face-down with legendary European rivals in the medium-sized car market.

As one of the largest automobile logistics suppliers in the world with more than 130 years of experience, BLG is "able to support the Chinese OEMs in any direction", said Michael Bnning, BLG's sales and marketing director.

But Europe's high standards for security, the environment, styling, safety and performance are major hurdles for Chinese carmakers.

"They will have to cooperate with local industry players," said Bnning. "More than 500 experienced technicians in our technique center will help Chinese cars overcome some problems and meet local standards."

The company will also manage all necessary compliance and customs papers before Chinese cars enter the market.

Over the past year, BLG and HSO helped Brilliance to improve its emissions to meet the required Euro IV standard.

Feng Ping, vice-president of Chery Automobile Co Ltd in charge of international business, told China Business Weekly that Chery is considering contracting with BLG for pre-delivery inspection (PDI) on Chery cars in Gioia Tauro harbor in Italy.

'Same direction'

Last year, BLG transported 10,000 Chery cars from China to Russia that were offloaded at Bremerhaven harbor in north Germany.

"PDI services, which double-checks the quality and parts and maintains and cleans cars after the long ship journey, prepare brand-new cars for showrooms. It's good for our brand image that the cars have no defects prior to receipt by dealers," said Feng.

BLG, the comprehensive logistics partner for Mercedes-Benz, also said it can and would like to help Chinese automakers establish their overseas manufacturing facilities in Eastern Europe.

BLG is now providing a logistics services package for South Korea's Hyundai Motors' manufacturing base in the Czech Republic. It delivers auto parts to the facility and then transports assembled vehicles to 43 countries.

"As Chinese cars now focus on the Russian market, BLG has also made huge investment to expand its logistics network in Eastern Europe. We - BLG and the Chinese - are going in the same direction," said Manfred Kuhr, deputy chairman of BLG's executive board.

BLG's logistics network, which uses vessels, railways and trucks, can provide transport to Chinese cars or their CKD - complete knocked down - and SKD - semi-knocked down - assembles to Russia, currently the prominent destination for Chinese car exporters, Kuhr said.

"Around 30 years ago, when Japan's Toyota delivered its first car in Europe from Bremerhaven, one of the largest automobile harbors in the world, people thought it was impossible for Toyota to sell cars in Western countries. Today Toyota is the world's top auto manufacturer," said Kuhr.

He noted that when BLG and HSO helped the South Korean brand Hyundai enter the European market 19 years ago, Europeans also looked down on them.

"Yet 350,000 cars under the Hyundai brand and 150,000 Kia cars were sold in Europe last year. Now it's China's turn," said Kuhr.

Chinese auto brands, including Chery, Great Wall and Geely, now have a share of the Russian and Ukrainian markets. Only Brilliance has gone into western Europe, using HSO's 850 dealerships.

HSO sold 800 Brillance cars in Europe in 2008 and aims to increase the number to 3,000 this year, then extend distribution to France, Spain and Italy. According to a distribution agreement signed in 2006, HSO will help Brilliance sell 15,800 cars in Europe within five years.

"Last year, 24.63 percent of the cars on the road in Europe came from outside the continent, the majority from Japan and South Korea," said Sachs. "According to our survey, 25 percent of the Eurozone's 200 million drivers said that they wouldn't say 'no' to Chinese auto brands."

In addition to Brilliance, Great Wall, BYD and Huatai also have ambitions in Europe.

Xing Wenlin, vice-president of Hebei's Great Wall Motor Co, told China Business Weekly that his company "will go to Eastern Europe markets within two years and enter Western Europe in three to five".

Shenzhen-based BYD Auto said that it will export its electric cars to Europe one or two years after they enter the US in 2011.

"We will start selling our cars in Eastern Europe and the south in the near future," said Tong of Huatai, who declined to disclose a detailed export plan before his company starts production in its new factory in Inner Mongolia in July.


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## white_pawn

*China's industrial output up 8.9% in May(Xinhua)​*
China's industrial output expanded 8.9 percent in May from a year earlier, faster than the 7.3 percent rate in April, the National Bureau of Statistics (NBS) said Friday.

The figure exceeded analysts' forecasts of less than 8 percent. It was the highest monthly growth rate since October last year, said the NBS in a statement on its website.

Large industrial enterprises (those with annual revenue of more than 5 million yuan, or about $714,285), also reported May output growth of 8.9 percent.

Their expansion rate was 7.1 percentage points less than a year earlier but 1.6 percentage points above that of April.

The sales ratio of industrial products for May was 97.34 percent, 0.49 percentage point lower than a year earlier.

Output of many major products rose. Auto production rose 29 percent to 1.15 million units. The output of steel was up 7.4 percent to 57.29 million tonnes and coal was up 9.6 percent to 250 million tonnes.

Power generation, however, fell 2.7 percent to 283.89 billion kilowatt-hours and crude oil output was down 1.1 percent to 16.03 million tonnes.

Zhuang Jian, a senior economist with the Asian Development Bank, said the higher rate in May was a positive signal and might mean the country could achieve its 8-percent economic growth goal for 2009.

The NBS statement attributed the faster-than-expected industrial output growth to six factors.

First, a rebound in the growth rate of heavy industry, which accounts for about 70 percent of all large industrial enterprises. The growth rate of heavy industry recovered from continued declines since last September to 8.6 percent in May, 1.7 percentage points faster than April.

Second, almost three-quarters of all 39 industrial categories saw their growth rates accelerate in May compared with April. For instance, the high-tech industry grew 7.3 percent, 2.6 percentage points faster than April.

Third, the output of nearly 60 percent of all 494 industrial products grew faster than the previous month.

Fourth, 20 of the 31 provincial regions reported higher growth rates. Economic powerhouse Guangdong Province posted a growth rate that was 3.2 percentage points faster than April.

Fifth, output in quake-hit Sichuan Province grew 32.5 percent in May, compared with 3.6 percent in May 2008 when it was hit by the deadly earthquake.

Finally, excluding the quake factor, the national growth rate of industrial output was 1 percentage point faster than in April. Meanwhile, the contraction in power generation was 0.8 percentage point less than in April, showing that power output was consistent with industrial production.


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## white_pawn

*Foreign investment freefall eases​*By Ding Qingfen (China Daily)
Updated: 2009-06-16 07:46

Foreign direct investment (FDI) has been in decline for eight months, but the size of the fall in May was smaller than the one in April, probably signaling an easing off.

In comparison with other economies, China is still poised to be among the first choices for global investors in the next five years, the Ministry of Commerce (MOFCOM) said.

According to the figures released by the ministry yesterday, in May, the FDI dropped 17.8 percent compared to a year earlier - equaling $6.38 billion. The number of newly approved foreign enterprises contracted by 32 percent to 1,649.

The figures exclude those in the financial sector.







But May's performance was better than April's, when the FDI registered a negative growth of 22.5 percent.

Between January and May, the FDI fell by 20.4 percent year-on-year to $34.05 billion and newly approved foreign enterprises dropped by 33.8 percent to 7,890.

In the same period, foreign investment in China's central and western regions fell by 35.7 - more than the national average. Newly approved foreign enterprises fell 30.2 percent. For several years prior to the financial crisis, the regions had seen higher rates than the national average.

Yao Jian, a MOFCOM's spokesman, noted the central and western regions' sharp decline: "The coastal areas have the advantage of having gathered a much larger number of foreign investment enterprises in the last three decades."

Encouraged by confidence from global investors in China's 4 trillion yuan stimulus plan, the "decline in FDI will probably be slowing during the rest of the year," predicted Li Jianfeng, macro-economics and trade analyst with Shanghai Securities, a domestic brokerage.

"There is a good chance that the FDI will register a positive growth in the last quarter, given the low reference point in 2008," he added.

During the first quarter, the FDI decline showed some signs of bottoming out. But in April, the performance went down again by 22.5 percent, compared with a decline of 9.5 percent in March.

At the same time, the International Monetary Fund predicted China's GDP would grow by 6.7 percent this year, 1.3 percentage points lower than the Chinese government's target, but higher than the 5.25 percent of India and 5 percent for Vietnam, two countries vying for FDI.

The stimulus plan is having an effect, said Yao, who pointed out that retail volume rose to 4.88 trillion yuan in the first five months, up by 15 percent year-on-year.

Yao predicted that in 2009, China's FDI will contract by an annualized 20 percent in contrast to last year's growth of 27.65 percent.


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## white_pawn

*May fiscal data point to 'recovery'​*By Zhang Ran (China Daily)
Updated: 2009-06-16 08:08

An up-tick in China's fiscal revenue situation signals a recovery in the economy and gives the government more room to use active fiscal measures to boost it, experts said.

And, June to October would be the key period when the treasury would be able to judge whether it can realize an earlier target of 8 percent year on year revenue growth, they pointed out.

China's nationwide fiscal revenue was up 4.8 percent in May from a year earlier, at 656.9 billion yuan, reversing the downward trend of the past few months, the Ministry of Finance (MOF) said yesterday. The national revenue in April had dropped 13.6 percent from a year earlier. And, combined central and local government revenues in the first five months totaled 2.71 trillion yuan, a fall of 6.7 percent year on year.

"The rise in May is a signal the economy is recovering. Hopefully, starting from May, the national fiscal revenue would begin to show positive growth," Jia Kang, president of the Institute of Fiscal Science, Ministry of Finance said.

According to Zhao Quanhou, a senior researcher at the same institute, the reason why May figures have turned positive was because many projects that were included in the government's 4-trillion yuan stimulus plan last year were launched only recently.

"Though the stimulus plan was announced in November, many of projects were actually launched in spring, and is now starting to contribute to the economic growth," Zhao said.

Experts pointed out that May revenue growth leaves much room for the treasury to use more fiscal measures to stimulate the economy.

"Despite that, there still is huge pressure on China to realize an 8 percent revenue growth in 2009," Jia warned.

In a statement on its website, the ministry said the economic slowdown and tax cuts were the underlying factors behind the fall in fiscal revenue in the January-May period.

"The key period is from June to October. We need to watch closely the figures in the coming months, and see if the economy is really starting to recover," Zhao said.

The Chinese government expects revenue to grow 8 percent in 2009, much slower than previous years. Its revenue climbed 18.8 percent in 2008 and 32.4 percent in 2007.


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## Peace_maker

China is shining.Will we next supreme power within 10 years.


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## white_pawn

*IPOs back after long suspensionBy Bi Xiaoning (China Daily)​*Updated: 2009-06-19 07:31

The securities regulator appears to have lifted a nine-month ban on initial public offerings, or IPOs, by reportedly approving the listing of a medium-sized drug firm.


The official China Securities Journal reported on its website late Thursday that Guilin Sanjin Pharmaceutical Co had received a regulatory notice from the China Securities Regulatory Commission (CSRC) allowing it to seek a stock exchange listing.

Earlier reports said that Guilin Sanjin, along with Zhejiang Wanma Group Cable and Shenzhen Salubris Pharmaceutical, had applied to be listed on the small- to medium-sized enterprises board on the Shenzhen Stock Exchange.

The share offer by Guilin Sanjin, a traditional Chinese medicine maker, is likely to mark the resumption of IPOs, which have been quietly suspended since September after the Shanghai Composite Index had fallen by almost 60 percent in the first nine months.

The stock market collapse was attributed, at least partly, to the drain of liquidity by the large number of IPOs by enterprises keen on tapping the market to prepare for leaner economic times ahead.

The suspension also created an opportunity for the CSRC to revise the IPO rules and the subscription mechanism that were seen to have been abused by some financial intermediaries, resulting in unfair distribution of new shares and price volatility after trading began.

Initial drafts of the new IPO rules were circulated among financial intermediaries for comments; and the final draft incorporating some of their feedback was published earlier this month.

Stockbrokers and investors generally welcomed the IPO resumption, saying it would allow the stock exchange to regain its basic function of providing capital to fund the growth of the corporate sector.

But they also warned that the expected stampede by the many cash-starved private companies to tap new capital could put a strain on liquidity and short-circuit the market recovery.

The lifting of the IPO ban is not surprising, said Zhao Xijun, a professor of finance at Renmin University of China.

"Facilitating the raising of capital by enterprises is the primary function of the stock market," he said, adding it is a positive move in line with the government policy of stimulating domestic demand.

Li Daxiao, a director of Yingda Securities, said it is important for the CSRC to regulate the pace of new listings

Sources said the CSRC's listing panel has reviewed the IPO applications of 33 companies of various businesses and sizes.

They include corporate heavyweights such as China State Construction Engineering Corp, Everbright Securities and Sichuan Expressway. The companies are expected to raise at least 1 billion yuan each.

Market worries about a liquidity drain were clearly demonstrated in the nearly 2 percent fall of the benchmark index last Friday on rumors of an impending large IPO from China State Construction.

"I believe the CSRC will exercise great care in minimizing the potential impact of a rush of capital after the IPO ban is lifted," Li said.

IPOs back after long suspension


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## white_pawn

Peace_maker said:


> China is shining.Will we next supreme power within 10 years.



Wont agree with you on this, definately China is on a road of being a super power, but in next 10 years, hmmmm i dont think so. Would take some more time for china to be there condisering the current situation.


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## white_pawn

*Nation may hike US debt in short term(China Daily)​*Updated: 2009-06-19 09:26

China could still increase its holdings of US Treasuries if the dollar is stable, even though the long-term trajectory is to diversify its foreign exchange reserves, a former central bank governor said in an essay.

The nation will need some time to diversify its foreign- exchange reserve holdings and the US government should take "substantial" measures to honor its promise of ensuring the safety of foreign investments, Dai Xianglong, former head of the People's Bank of China (PBOC) and currently chairman of China's National Social Security Fund (NSSF), wrote in an article in the Chinese-language publication China Finance.

China's yuan will "surely become a significant currency for international reserves after years of efforts". The gradual process will include letting foreign governments and businesses obtain the currency through loans, yuan-denominated bond sales in China, trade payments and currency-swap agreements, according to Dai's article.

The government is pushing for the opening up of China's capital accounts to expand the nation's outbound investments, Dai wrote. Eleven such accounts, out of a total 43 monitored by the International Monetary Fund, remained unconvertible as of March.

A number of senior Chinese officials have voiced concern recently about Beijing's exposure to US debt, given what they see as a mounting medium-term risk of inflation in the US.

About 70 percent of China's $1.95 trillion in foreign exchange reserves is held in dollar assets.

The article echoed similar comments he made last week that Beijing has little choice but to keep buying US debt.

"It is still possible for China to increase its investment in US Treasuries at appropriate times," Dai wrote in the article in China Finance magazine, which is backed by the PBOC.

But Dai said that it was not correct to "simply describe the current situation of China's foreign-exchange reserve management as one of falling into a 'dollar trap'".

Reuters-Bloomberg


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## Peace_maker

white_pawn said:


> Wont agree with you on this, definately China is on a road of being a super power, but in next 10 years, hmmmm i dont think so. Would take some more time for china to be there condisering the current situation.



I think with in 10 years they will supreme power. Have u noticed How much say CHINA has now in world affairs?I think After US China is coming into picture these days. India is nowhere near dude...I am also feeling bad.Now All depends upon MMS Govt. I have lot of hope from him. Lets see what can he do? Next 5 years will be the golden year of Indian economy...I hope i am not expecting too much.....

Jai Ho!!!


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## Gucci Juice

^

ya if they have so much say in world affairs they could have blocked ADB's loan.

lol


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## aimarraul

Peace_maker said:


> I think with in 10 years they will supreme power. Have u noticed How much say CHINA has now in world affairs?I think After US China is coming into picture these days. India is nowhere near dude...I am also feeling bad.Now All depends upon MMS Govt. I have lot of hope from him. Lets see what can he do? Next 5 years will be the golden year of Indian economy...I hope i am not expecting too much.....
> 
> Jai Ho!!!



not that optimistic as you are ,even though i am chinese,10 years is too short for china's long term plan,how about another 30 years.if India or US is planning something against china,my suggestion is :do it now


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## aimarraul

Gucci Juice said:


> ^
> 
> ya if they have so much say in world affairs they could have blocked ADB's loan.
> 
> lol



you should be happy while china is still patient to negotiate that "so-call mcmahon" issue,enjoy your fun


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## Gucci Juice

^

i think ur 1 of those government posters who gets paid 50 cents per post.


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## javeda

Pakistan can emerge as an alternative to India and China. Because it has got large pool of man power and human capital available with ethical business practices history. Pakistani products are always quality oriented such as textile, surgical and leather industries.


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## SinoIndusFriendship

This sounds like either fabricated propaganda by over-zealous RSS/GOI state-controlled media, or a mis-understanding, or a mistake by some small time mfg in China, or may not have been mfg in China at all (but in India). 

The same thing happen with 'toys with lead' in which A TINY TINY ITSY BITSY SMALL MFG, in which a LARGE US TOY BRAND USED A SMALL MFG paying them BELOW HUMAN WAGES.... now who is responsible??? This is the same case with POACHERS:

Do we blame: (a) the poacher, (b) the buyer, or (c) the people that assist in the trade, such as the uncle that loads the goods, the aunt the gives them food and cover, the little boys that keep their mouths shut, the butcher that buys what the buyer discards, etc. Many people are involved, and they must all share the blame. 

But in my mind both the buyer and poacher holds most responsibility, but the buyer much more.

This is the same case here. I know in India Media they take enjoyment when bad news (even if it is groundless gossip, or especially if it is juicy gossip) about China. Yes, I've lived in India for a short while and I follow Indian news/Bollywood etc as I am fascinated and admire their culture.

It is funny since nearly all of the Indians believe the PRC engages in the same smear campaign against Hindus/Indians -- but this can't be further from the truth. TRUTH IS, CHINESE MEDIA POTRAYS INDIA IN A POSITVE LIGHT IF AT ALL, BUT MOST OF THE TIME ATTENTION IF FOCUSED ON CHINA + USA + EU + ASIA + JAPAN + AMERICAS + AFRICA. It will surprise many Indians in India that India rarely come up in topic of discussion. Most Chinese have favorable view of Indians, they think nearly all indians are peaceful Buddhists (as that is the birthplace).

It's only overseas Chinese, or those that pay attention who know better. Yes, you will find some Chinese are critical of RSS/Bharat policies.

Truth is you cannot speak about 1962 if you don't also talk about 1957, 1958, 1959, 1960... all leading up to retaliation in 1962. How can it be a 'surprise' attack when all those years Bharat was implimenting it's Akhand Bharat policies of annexing foreign land??? If China really wanted to take India's land, why did they return the land??? The indigenous people on the land that GOI claims as theirs look like Chinese, now why is that??? 

I can tell you that Chinese and SE Asians have no desire to be a part of Akhand Bharat, so why would they desire to annex your land???


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## Ababeel

*Airbus delivers the first A320 jet made in China*
AFP - European aviation giant Airbus delivered the first A320 aircraft made at its factory in China on Tuesday, in an event hailed as a landmark in Sino-European cooperation.

A giant red curtain was pulled back to reveal the jet in a hanger during a ceremony at the factory outside the northern Chinese city of Tianjin.

The jet was the first to be completed at an Airbus factory outside Europe and company CEO Thomas Enders said it underlined the consortium's long-term relationship with China, one of the world's fastest-growing aviation markets.

"We will build a strong future with the China aviation industry and for the China aviation industry," he said.

"(Airbus) will be working increasingly with our partners in China, setting new standards."

The plane was delivered to Dragon Aviation Leasing and will be used by Sichuan Airlines, a regional Chinese air carrier whose markings were already on it.

It was to be flown to Chengdu, capital of Sichuan province, later on Tuesday, officials said.

Tianjin mayor Huang Xingguo called Tuesday's event "a historic day" for Sino-European cooperation.

"We will further cooperate to write a new chapter in Chinese and European cooperation," Huang said.

The ceremony also was attended by the British and French ambassadors to China, German State Secretary Hartmut Schauerte and other top Tianjin officials.

Ten middle-distance A319/320 aircraft will be delivered by the end of the year, and the factory will then start to churn out up to four planes a month before the end of 2011.

The Tianjin plant, modelled on Airbus' factory in Hamburg, Germany, has an investment of nearly 10 billion yuan (1.47 billion dollars) and went into operation in September in the presence of Chinese Prime Minister Wen Jiabao.

The joint-venture factory, about 120 kilometres (72 miles) southeast of Beijing, is 51 percent owned by Airbus, a subsidiary of the European group EADS, and 49 percent by a Chinese aviation consortium.

The venture has also revealed the extent that Airbus has gone to get a foot hold in one of the world's most dynamic markets.

China's air market, the second biggest in the world, makes up 15 percent of sales at Airbus, which sold its first plane here -- an A310 -- in 1985.

The decision to build the China plant was based on strong growth estimates that predict the nation will buy up to 2,800 passenger and transport planes over the next 20 years.

These planes, of which 190 are expected to be jumbo jets, are valued at about 329 billion dollars.

In the next two decades, passenger travel is forecast to increase five-fold, according to industry estimates.

Airbus' goal is to gain half of the China market from now until 2012, compared with a 39 percent market share in mid-2008 and up from seven percent in 1995. Its main rival is current global market leader Boeing.


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## Ababeel




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## TOPGUN

Nice video good for the chinesse!


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## Neo

*Airbus delivers first China-made jet​*
Wednesday, June 24, 2009

TIANJIN, China: European aviation giant Airbus delivered the first A320 aircraft made at its factory in China on Tuesday, saying the event symbolised its long-term focus on the growing Chinese market.

A giant red curtain was pulled back to reveal the jet in a hanger during a ceremony at the factory outside the northern Chinese city of Tianjin.

The jet was the first to be completed at an Airbus factory outside Europe and company CEO Thomas Enders said it underlined the consortiums long-term relationship with China, one of the worlds fastest-growing aviation markets.

We will build a strong future with the China aviation industry and for the China aviation industry, he said. (Airbus) will be working increasingly with our partners in China, setting new standards.

The plane was delivered to Dragon Aviation Leasing and will be used by Sichuan Airlines, a regional Chinese air carrier whose markings were already on it. It was to be flown to Chengdu, capital of Sichuan province, later on Tuesday and put into service the following day, officials said.

Tianjin mayor Huang Xingguo called Tuesdays event a historic day for Sino-European cooperation. We will further cooperate to write a new chapter in Chinese and European cooperation, Huang said.

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## aimarraul

China starts running test of home-made maglev train

SHIJIAZHUANG, June 17 (Xinhua) -- A Chinese firm said on Wednesday it has started a running test on the first China-developed maglev train, and it now has the ability for mass production.

The Tangshan Railway Vehicle Co. Ltd., which is based in Tangshan City of north China's Hebei Province, said the train has a designed speed of up to 120 kilometers per hour, and has three carriages. The carriages can each have 100 to 120 seats.

The company's partner in the maglev project, the Beijing Enterprises Holdings Maglev Technology Development Co., Ltd., said earlier this year that the maglev train would be ready to go into mass production, once it has completed 100,000 test kilometers.

A spokesman with the Tangshan company said the company has not yet secured a commercial contract, though Shenzhen city in south China approached the company and asked it to conduct a feasibility study into the use of the maglev technology for the planned urban rail project.

He said the low- and medium-speed maglev train may offer a new option for urban transport. The train's working noise can hardly be heard five meters away.

The Tangshan company has been engaged in the research of the maglev technology for more than ten years, which has been listed as a national key technology research program supported by the Ministry of Science and Technology.


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## Neo

*China finds Asias largest iron ore deposit ​* 
Thursday, June 25, 2009

BEIJING: China said on Wednesday it had found a new iron ore deposit in northeastern Liaoning province that state media has described as the largest in Asia.

We did find an iron ore deposit there, an official with the land and resources ministry, who declined to be named, told AFP. He refused to give further details, but the official China News Service said on Tuesday that an iron ore deposit with an estimated reserve of more than three billion tonnes was discovered in the region. The report said the reserve, near the city of Benxi, was the largest in Asia and could prove to be twice as big as currently thought as exploration work progresses.

Reactions: Like Like:
1


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## aimarraul

rio tinto can't play the boss in the price negotiation anymore

Reactions: Like Like:
1


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## SinoIndusFriendship

Economic rough times are raising tensions! Hope rich people are not so stingy and share their wealth with the poor and needy. Here's a recent incident.



Guangdong toy factory brawl leaves 2 dead, 118 injured


A brawl among factory workers in south China's Guangdong Province left two people dead and another 118 injured, local authorities said Friday.

A brawl among factory workers in south China's Guangdong Province left two people dead and another 118 injured, local authorities said Friday. [Photo from www.motorfans.com.cn]

A brawl among factory workers in south China's Guangdong Province left two people dead and another 118 injured, local authorities said Friday. [Photo from www.motorfans.com.cn] 

A dispute led to a fight involving hundreds of people Thursday at the Xuri Toy Factory in Shaoguan City, a municipal government spokesman said.

More than 400 police had to be called in to restore order. The injured were rushed to hospitals, but two workers died, the spokesman said.

All the 118 injured were in stable condition, he said.

No details about the dispute are available. Police are investigating the incident.

(Xinhua News Agency June 27, 2009)


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## Communist




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## Communist




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## Communist




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## SinoIndusFriendship

Communist said:


> f4jukCK5-os[/media] - Chinese, Turkish presidents meets - 26 Jun 09



Deals worth 1b euro inked with Turkey


Five Chinese companies signed agreements worth 1 billion euros with a visiting Turkish business delegation on Friday even as officials of both countries called for more trade and investment exchanges.

The projects cover a range of sectors, including metro construction in Turkey and trade of agricultural products, steel products and marble. The agreements were signed in Beijing during Turkish President Abdullah Gul's visit to China. Detailed volume of each agreement is unavailable.

"As two major emerging economies, China and Turkey are complementary with each other and enjoy a promising future in cooperation," Chen Jian, vice-minister of commerce, said at the China-Turkey Business Forum in Beijing on Friday.

He said the two sides should work together to expand cooperation in areas ranging from traditional trade and contracting to sectors such as new energy and hi-tech industries.

Bilateral trade between the two countries jumped from $1.2 billion in 2001 to $12.6 billion in 2008. But investment to each other is comparatively low: Turkey's accumulated investment to China hit $150 million while China's investment is only $60 million.

Turkish officials said Turkey's geographic and economic advantages are attractive for Chinese enterprises to invest in the country.

"For Chinese enterprises, Turkey, which is located at the junction of Europe, Middle East and Central Asia, could serve as a bridge to Europe and other regions and also as a logistics center," said Turkey's Minister of Industry and Trade Zafar Caglayan.

(China Daily June 27, 2009)


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## aimarraul

Decline in industrial profits slows

Chinese industrial profits are expected to rebound in the second half as stabilizing producer prices may boost margins, analysts said.

Decline in industrial profits slows
The country's industrial profits fell 22.9 percent in the first five months, but most analysts feel that the decline would slow in the second half of the year. [CFP]
Industrial profits nationwide fell 22.9 percent in the first five months from a year earlier, the National Bureau of Statistics (NBS) said on Friday. This was 14.4 percentage points less compared with a fall of 37.3 percent in the first two months of the year.

"The slower rate of decline is mainly due to a recovery in domestic demand, a decline in operating costs and a stabilization in producer prices," NBS said in a statement published on its website.

Prices of fuel, power and other raw materials, which have a big impact on industrial profits, have stopped falling month-on-month since April, and that is helping to slow the pace at which profits are dropping, it said. Fast growth in investment and a steady increase in domestic consumption are also pushing up industrial activity.

Analysts said industrial profits are expected to rebound further in the second half as the decline in the producer price index (PPI) eases.

"The PPI decline is expected to ease in the second half, and this would help increase the margins of many industrial enterprises," Li Jianfeng, analyst, Shanghai Securities, said.

The PPI has dropped 5.5 percent year on year from January to May this year, squeezing industrial margins. But the decline is expected to slow in the second half, especially after August, according to Li.

"PPI will continue to see significant drop until August considering the tail-raising factor, but after that, the decline may slow significantly, and this will help increase producer's margins," Li said.

The PPI in August 2008 rose as much as 10.1 percent year on year, the highest in 12 years.

Meanwhile, analysts said profits of industries such as food processing, textile, telecommunications, automobile as well as equipment manufacturing are likely to see a slower decline as the stabilizing of international commodity prices would help them cut costs.

Operating costs in the first five months dropped by 0.9 percent from a year earlier, according to NBS figures.

The NBS this year is releasing nationwide year-to-date profit data for February, May, August and November. In the other months it is issuing year-to-date data compiled from 22 provinces that account for 78.6 percent of nationwide industrial earnings.

The improvement chimes with other indicators suggesting that the economic recovery is gaining momentum.

China's GDP growth is expected to accelerate to nearly 8 percent in the third quarter and over 9 percent in the fourth quarter, a senior government economist said in remarks published on Friday.

Annual growth in the first three months was 6.1 percent. Figures for the second quarter are due on July 16.


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## aimarraul

great news for chinese,it's time to face our problems if we want another 30 years ,go china 

China: Data fraud officials will be sacked
By Xie Chuanjiao (China Daily)
Updated: 2009-06-29 07:11
Comments(0) PrintMail

Officials who falsify economic data could face the sack under a new law aimed at wiping out fraudulent figures.

The revised Law on Statistics bans staff at all levels from tampering with government data and was approved by China's top legislature on Saturday.

It will come into effect on Jan 1 next year.

Officials will also be stopped from asking workers and agencies to fake data, or take revenge on those who refuse to.

"Violators will be ordered to make rectification and imposed administrative punishments," the law now states.

According to the rules that govern civil servants in China, administrative punishments include warnings, fines and dismissal.

Ma Jiantang, director of the National Bureau of Statistics (NBS), said the fabrication of statistics and falsely altered data accounted for about 60 percent of all violations.

Former NBS director Li Deshui said the cumulative gross domestic product data submitted by local governments for 2004 was 3.9 percentage points higher than the NBS data for that year - a difference of nearly 2.66 trillion yuan ($380 billion).

Wu Bangguo, chairman of the Standing Committee of the 11th National People's Congress (NPC), said the revision was focused on coping with data fraud and deception, including the prevention of administrative intervention in statistical work.

Related readings:
China revises statistics law to curb data falsification
Crackdown on invoice fraud intensified
Market hit by false claims, fraud
Discrepancy in May economic data reflects industry restructuring
May fiscal data point to 'recovery'
"The law will make statistical data more reliable so it can play a better role in understanding national realities and capacity, and better serve economic and social development," he said.

The law also stipulates that agencies submitting data, including government departments, must keep the original records.

"Statistical staff in charge of examination and signatures must be responsible for data authenticity, accuracy and integrity," the law states.

While government officials face tough action, individuals who refuse to cooperate or give false or incomplete data during the national census will be counseled, replacing the previous punishment of a 1,000-yuan fine.

The NPC uncovered serious frauds during inspections into the implementation of the old statistics law, including in Chongqing municipality, where two officials asked workers to add a "0" to the production value of a local enterprise, which saw it jump to "30 million yuan" from the previous "3 million yuan", in order to achieve its annual economic development goal.

Analysts believe a blinkered view of economic growth, once the measure of an official's performance, was the major reason behind the faked figures.

Huang Yong, dean of the school of economic law at the University of International Business and Economics, said the revised law would boost the country's statistical work.

"Besides the deterrence from the legislative sector, we still need to deepen system reforms, especially improving the independence of statistical work and enhance statistical expertise and intensify supervision," he added.


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## aimarraul

great news for chinese,it's time to face our problems if we want another 30 years ,go china 

*China: Data fraud officials will be sacked*
By Xie Chuanjiao (China Daily)
Updated: 2009-06-29 07:11
Comments(0) PrintMail

Officials who falsify economic data could face the sack under a new law aimed at wiping out fraudulent figures.

The revised Law on Statistics bans staff at all levels from tampering with government data and was approved by China's top legislature on Saturday.

It will come into effect on Jan 1 next year.

Officials will also be stopped from asking workers and agencies to fake data, or take revenge on those who refuse to.

"Violators will be ordered to make rectification and imposed administrative punishments," the law now states.

According to the rules that govern civil servants in China, administrative punishments include warnings, fines and dismissal.

Ma Jiantang, director of the National Bureau of Statistics (NBS), said the fabrication of statistics and falsely altered data accounted for about 60 percent of all violations.

Former NBS director Li Deshui said the cumulative gross domestic product data submitted by local governments for 2004 was 3.9 percentage points higher than the NBS data for that year - a difference of nearly 2.66 trillion yuan ($380 billion).

Wu Bangguo, chairman of the Standing Committee of the 11th National People's Congress (NPC), said the revision was focused on coping with data fraud and deception, including the prevention of administrative intervention in statistical work.

"The law will make statistical data more reliable so it can play a better role in understanding national realities and capacity, and better serve economic and social development," he said.

The law also stipulates that agencies submitting data, including government departments, must keep the original records.

"Statistical staff in charge of examination and signatures must be responsible for data authenticity, accuracy and integrity," the law states.

While government officials face tough action, individuals who refuse to cooperate or give false or incomplete data during the national census will be counseled, replacing the previous punishment of a 1,000-yuan fine.

The NPC uncovered serious frauds during inspections into the implementation of the old statistics law, including in Chongqing municipality, where two officials asked workers to add a "0" to the production value of a local enterprise, which saw it jump to "30 million yuan" from the previous "3 million yuan", in order to achieve its annual economic development goal.

Analysts believe a blinkered view of economic growth, once the measure of an official's performance, was the major reason behind the faked figures.

Huang Yong, dean of the school of economic law at the University of International Business and Economics, said the revised law would boost the country's statistical work.

"Besides the deterrence from the legislative sector, we still need to deepen system reforms, especially improving the independence of statistical work and enhance statistical expertise and intensify supervision," he added.


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## aimarraul

*Shenzhen mayor sacked over corruption allegations*

The government yesterday sacked tainted Shenzhen mayor Xu Zongheng even as it continued investigating him for alleged corruption.

The 54-year-old former boss of the pivotal city of reform may now face a criminal probe.

Meanwhile, media named more officials and celebrities, including an Olympic gymnast, alleging their possible involvement with Xu.

Shenzhen mayor sacked over corruption allegations

Xu's fall is bound to uncover the involvement of some major players, who either bribed the mayor for government positions or to win bids for construction projects, media said.

The Hong Kong-based Ming Pao newspaper reported on Monday that vice-mayor Yan Xiaopei, a non-Communist Party official "close to Xu", was also being questioned by the government's discipline commission.

The online version of the Beijing-based Caijing magazine reported yesterday that Yan's recent absence from the city's major events was unrelated to Xu's probe. The vice-mayor, who is reportedly ill, is "still under medical observation", it said.

The city's executive vice-mayor Xu Qin, who ranks first among the deputies, has taken over the mayor's responsibilities for now, the report said. The 48-year-old Jiangsu native was in charge of the nation's high-tech industry before he was posted to Shenzhen just over a year ago.

In a desperate bid to get a clean chit from the ongoing investigation, most of the city's nine vice-mayors have made high profile public appearances since the central government confirmed Xu's detention on Monday.

Six of them showed up in different administrative meetings on Tuesday, while a seventh figured in the government's official daily on Wednesday.

In another development yesterday, actress and Olympic gold-medalist gymnast Liu Xuan, and actress Zhou Xun rejected claims they were ever involved with the tainted mayor.

Liu, who shares her hometown in Hunan province with Xu, wrote on her Web blog that she felt "wronged" to be considered the "secret lover of a potentially corrupt official".

The Ming Pao newspaper reported on Tuesday that Xu has been "close to a mainland actress, who has secured residence in Hong Kong through the Quality Migrant Admission Scheme".

The media targeted six mainland actresses, including Zhang Ziyi, Tang Wei, Liu Xuan and Zhou Xun, as Xu's "possible secret lovers".

The government is yet to reveal the reason behind Xu's detention.

But Shi Dongbing, a well-known political writer, who claimed to be a close friend of Xu, said the former mayor has been "found guilty of bribing superiors to secure promotions and striking profitable deals with real estate developers" in Shenzhen.

It was rumored Xu bribed 64-year-old Chen Shaoji, former chairman of the Guangdong committee for the Chinese People's Political Consultative Conference, for a promotion.

Chen was also probed for his involvement in corruption charges against Huang Guangyu, founder of home alliance giant GOME.

Analysts said Xu's growing unpopularity among local political rivals might have led to the probe.

Xu's wife, a manager of a State company in Shenzhen, is also under investigation, Ming Pao reported.


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## Su 30mki

*Less than half of consumer products on sale in south China are safe, according to a survey quoted by state media Tuesday.*

The government survey was carried out between April and June in Guangdong province, which borders Hong Kong, and c*overed 202 items, including tissues, beverages and women's sanitary products, the China Daily reported.
*
*Only 49 per cent met the government's basic hygiene standards while the rest were substandard or even "dangerous to consumers' health," the paper said, citing Guangdong's bureau of industry and commerce.*

*Only a third of the bottled water brands sampled met quality standards, down from more than 90 per cent a year ago, according to the paper.*

However, Guangdong authorities decided not to make public the list of products deemed to be substandard, saying "it is not the right time" to disclose the names of the problem companies.

The decision triggered anger among local consumers, who were worried they might continue using unsafe products, the paper said.

*"What's the point of telling us some products we are consuming are harmful without telling us which ones?" asked Huang Chunhong, a local businessman.*

*Product safety has been a growing concern among Chinese consumers, especially after a scandal erupted in 2008 over baby milk formula.*

At least six babies died and nearly 300,000 fell ill after they consumed milk powder contaminated by the industrial chemical melamine, which was mixed in to give the appearance of a higher protein content.

South China consumer goods sub-standard: report- Hindustan Times


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## duhastmish

*Another brilliant plan from chinese * but i am still skeptic if it will work.
it might be best innovation after sliced bread.


A PRIVATE *airline in China* is submitting plans for journeys *where passengers can opt to stand to save money.*

Spring Airlines first initiated the standing ticket idea earlier this year. It is now considering officially submitting it to the aviation regulator before the year is out.

*The airline has been trying to cope with surging passenger numbers and new flight routes, but only has 13 planes.*

"_The process of plane making is really long,_" Spring Airlines' Zhang Wuan told China's CCTV.

We already ordered 14 new jets. But some of them will only be delivered next year.

And you have to wait for at least five years to lease a plane, and it is also very expensive.

*The standing jet could accommodate 40 per cent more passengers compared to a traditional plane.*

It could also help airlines cut 20 per cent of their costs, while lowering airfares for consumers. 

It's just like bar stools. The *safety belt is the most important thing.* (Ofcourse captain Obvious) I_t will still be fastened around the waist_, ( i think you still fasten it around waist) Mr Wuan said. 

The airline would need government backing to go ahead with the plans.

But Spring Airlines president Wang Zhenghua said that he was confident because the idea had been suggested by China's vice premier Zhang Dejiang.

*He suggested that, for a lower price, passengers should be able to get on a plane like catching a bus, with no seat, no luggage consignment, no food, no water, but very convenient, said Mr Zhenghua.*

He added that the company had consulted with Airbus, the company which built most of its aeroplanes, and had been told the *proposals were safe*.

So once the government approves it formally, we'll try it, he said.


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## aimarraul

thanks for sharing&#65292;but i think this unsure-plan is much safe than indian's train


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## duhastmish

thanksalot for comparing india to china. i thought they are regional leaders -lol
anyways - if you are intended to say chinese copied this idea TOO. then i accept your words.


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## aimarraul

Xinjiang to build 303,000 indemnificatory houses in 3 years

China's Xinjiang Uygur Autonomous Region plans to build 303,000 indemnificatory houses over the next three years, including approximately 244,000 units of low-rent apartments, according to the autonomous region's department of construction.

In 2009, Xinjiang expects to build 85,000 low-rent houses, 28,000 affordable apartments and additional housing of 180,000 square meters to address its housing problems.

Last year Xinjiang invested RMB 1.44 billion for the construction of low-rent houses and provided affordable housing with a total area of 1.22 million square meters for 20,000 families.


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## aimarraul

Tibet to invest RMB 3 bln in indemnificatory housing

China's Tibet Autonomous Region plans to spend RMB 3 billion to build 30,000 flats under its indemnificatory housing projects in the coming three years, sources reported.

Chen Jin, Head of Tibet's Construction Department, told sources that RMB 1 billion will be used for the construction of 10,000 units of low-rent and budget housing, while the remaining RMB 2 billion to be invested in 20,000 units of temporary houses for low-income families.

The autonomous region has started the low-rent housing project since 2007. So far, the first project has completed construction and 1,056 families have moved in.


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## Communist

*China Resources plans to increase wind power capacity*

China Resources plans to increase wind power capacity

_
John Duce, Bloomberg Published: Tuesday, May 19, 2009_



China Resources Power Holdings Co., the third-largest Hong Kong-listed mainland electricity supplier by market value, plans to expand its wind-power capacity by more than four-fold to tap demand for cleaner fuels.

About 900 megawatts of the company's capacity will be produced by wind power by next year, compared with 200 megawatts now, Chief Financial Officer Wang Xiaobin said at a conference in Hong Kong.

The Chinese government is drafting a stimulus package to more than double the nation's output of alternative energy by 2020 to reduce its reliance on more polluting coal and oil, the chief director of China's Renewable Energy Society, Shi Dinghuan, said on May 5. About 80% of China's electricity is produced by coal-fired power plants.

"Wind power offers us a steady stream of income and it also isn't subject to same volatility with coal prices," said Ms. Wang. China Resources Power has four wind farms and this will increase to about 18 within the next two years, she said.

Net income at China Resources Power fell 47% last year to HK$1.72-billion (US$221-million) because of high coal prices. Coal reached a record last July and has since declined about 41%.

"China's power sector will perform much more strongly because of the drop in coal prices," said Ms. Wang. "Our company will perform in line with that forecast," she said, without elaborating.

Wind power plants offer a return of about 15% on equity and the renewable form of energy will make up about 4.5% of the company's total capacity by 2010 compared with about 1% now, she said.

Problems with distribution in China mean investment in cleaner-burning gas is unlikely to take off for at least five years in the power sector when national pipelines and other infrastructure are in place, Ms. Wang said.

China plans renewable sources such as wind and hydro-electricity to produce about 15% of the nation's energy by 2020.

The company's electricity sales rose 13% to 5.7 million megawatt-hours last month, compared with the same period a year earlier, China Resources Power said in a statement on its Web site said on April 14.

Sales climbed 2.4% to 15.4-million megawatt-hours in the first quarter, the Hong Kong-listed company. A megawatt is enough to power a 10-story office building.

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## Communist

*China's wind-power boom to outpace nuclear by 2020*

China's wind-power boom to outpace nuclear by 2020 | Markets | Reuters

_By Rujun Shen and Tom Miles_

BEIJING, April 20 (Reuters) - China will have 100 gigawatts of wind-power capacity by 2020, a senior energy official said on Monday, more than three times the 30 GW target the government laid down in an energy strategy drawn up just 18 months ago.

"Installed wind-power capacity is expected to reach 100 million kilowatts in 2020. That will be eight times more than in 2008," Fang Junshi, head of the coal department of the National Energy Administration, told a Coaltrans conference in Beijing. "The annual growth rate will be about 20 percent."

Fang's remarks confirm what industry experts have long maintained -- wind power has the potential to take a much bigger share of China's power mix than the government had planned.

China, the world's second-largest energy user, has around 12 GW of wind-power capacity and has already said it wants to raise that to around 20 GW by next year, suggesting it was on course to smash the 2020 target, which was set in 2007.

That means wind is set to be a bigger source of power than nuclear, despite a construction boom in nuclear power plants, and far bigger than solar, which is expected to hit 1.8 GW by 2020, according to the 2007 plan.

Suppliers to China's wind sector include China Wind Systems (CWSI.OB), China High (0658.HK), Hansen Transmissions (HSNT.L), Siemens (SIEGn.DE), Vestas (VWS.CO), Suzlon (SUZL.BO) and local leader Goldwind Science & Technology Co. Ltd 002202.SZ.

The original 2020 target for nuclear was set at 40 GW, but China is now aiming for 60 GW and officials have spoken of 70 GW. China had 9.1 GW of nuclear power capacity at the end of last year and is building 24 reactors with a further 25.4 GW. At least five more are planned but not yet approved for construction.

Both wind and nuclear have got a shot in the arm from the economic crisis, since China's 4 trillion yuan ($585 billion) stimulus plan promised more nuclear spending and upgrades to the power grid, which should help stranded wind farms get connected. 

Coal will continue to dominate China's power mix, although it is likely to slip from its 80 percent share.

China was aiming at 1,400-1,500 GW total capacity by 2020, Fang said. Hydropower would account for 300 GW, while coal-fired power capacity would need to reach 900-1,000 GW to ensure a supply-demand balance of energy.

That meant China's annual coal demand would increase by 600 million tonnes to 3.4 billion tonnes, he said.

China has repeatedly failed to hit targets for bringing polluting and greenhouse-gas-emitting industries under control, jeopardising a pledge to cut 20 percent off the energy-intensity of its economy in the five years to 2010.

But the economic slowdown has cut power consumption in China and a new fuel pricing regime has stopped some of the oil price slump filtering straight through to pump prices.

Since China's gross domestic product (GDP) has kept growing, although at a much reduced rate, the overall energy intensity of the economy could show a sharp decline.

"It's very likely that China will be able to achieve the goal of reducing energy consumption per unit of GDP by 20 percent by the end of the eleventh five-year plan (in 2010)," said Fang. ($1=6.833 Yuan).

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## Communist



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## Communist




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## Communist




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## Communist

*Great Wall Motor* 

Great Wall Motor Company Limited (simplified Chinese: &#38271;&#22478;&#27773;&#36710;; traditional Chinese: &#38263;&#22478;&#27773;&#36554;; pinyin: Cháng Chéng Qì Ch&#275 (SEHK: 2333), sometimes abbreviated as GWM or GW, is the largest privately owned automotive manufacturer in China.

The Great Wall Motor Company is the first privately owned auto company of China listed on the Hong Kong stock market and has obtained HK$1.7 billion of financial investment. After more than 10 years of rapid growth, GWM has accumulated enormous economic capacity, becoming the number one taxpayer consecutively for three years in the City of Baoding. It is among the Top 500 Enterprises of China in 2004" and one of the best brands in national automobile industry. GWM took its first step to become a truly global company by exporting CUVs to the competitive European market in September 2006. GWM already sells cars in about 60 (mostly developing) countries and exports account for about a third of the company's sales. 







*Models
Great Wall Sailor CC1027*

Great Wall Motor specializes in large size vehicle models, ranging from CUVs through SUVs to full-sized Pick-ups.

*CUV*

* Great Wall Hover

*SUV*

* Great Wall Safe
* Great Wall Sing
* Great Wall Pegasus

*Pick-up*

* Great Wall Wingle
* Great Wall Sailor
* Great Wall Socool
* Great Wall Deer

*City car*

* Great Wall Coolbear
* Great Wall Florid
* Great Wall Peri

*Compact MPV*

* Great Wall Cowry

*
Manufacturing locations*

Great Wall Motor main manufacturing location is in Baoding, China. The total area of the facility is 1,800,000.00m2 and can currently produce up to 300,000 units per year. In 2007 the total production capacity is to reach 400,000 units per year.

On 23 August 2007 in Ukraine opened a new manufacturing facility on KrASZ.

It is believed that Great Wall Motor will open an overseas manufacturing location. As of September 2006, it is believed that GWM has some near-future plans on opening a new manufacturing facility in Tatarstan, Russia, in a special economic zone.

The Iran motor company Diar also produce Great Wall models under license in Iran.

On April 9, 2009 Great Wall Motor and the Bulgarian company "Litex Motors" signed a contract for building a plant that would manufacture Great Wall Hover, Great Wall Wingle and Great Wall Florid in Lovech, Bulgaria. The investment is for 80 million euros and 1,500 new jobs would be created. The new plant in Bulgaria would be open in October 2010 and would be used to assist entering the EU market by Great Wall Motor. 

*Sales outside China*

The Great Wall Hover was the first Chinese car to be mass exported to Western Europe in 2006, when 30,000 units where shipped to Italy. Apart from selling cars in Western Europe, Great Wall Motor has had sales in 108 countries throughout the world.

In May 2006, 660 Great Wall Deer pick-ups arrived in Cuba, as replacements for the older ZIL 130 and 131, GAZ, KAMAZ as well as other old trucks and vehicles in Havana´s Electric Company . The ceremony included a special Hover as a gift to Fidel Castro. 

Great Wall Motor also entered the Peruvian market in 2006, and sells both the Great Wall Safe and the Great Wall Hover in "Zona Motors" stores throughout Lima.

*Other countries that Great Wall Motors currently exports to include:*

* Australia
* Belarus
* Bosnia & Herzegovina
* Brazil
* Chile - Since January 24, 2007 with the Hover. Added Safe and Deer in July, 2007.
* Costa Rica
* Italy
* Kazakhstan - since October 2005 with Hover, Safe, Deer, So Cool. Added Wingle, Sailor and Hover Pi (since July 2007)
* Romania - model sold are : Hover Pi , Hover CUV and Hover Steed , for the CUV the prices range from 10.600 Euro to 15.350 Euro with all options included .
* Russia
* Saudi Arabia
* South Africa
* Ukraine
* Venezuela


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## Communist

*A few photos of China made cars.*


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## Communist

*Here is your dream car. *  

Just click on the links to download. 

http://www.gwm.com.cn/eng/html/news/spec/sh2009.pdf

http://www.gwm.com.cn/eng/html/news/spec/rally08.pdf


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## Communist

*Great Wall's exhibited models. *


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## Communist




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## Communist




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## aimarraul

Officials gauged by more than economic achievement
By Lan Tian (China Daily)
Updated: 2009-07-01 07:27

Officials will be evaluated on more than just their financial performance, a Party spokesperson said Tuesday.

In a bid to update its economic-orientated focus when reviewing the work of officials, environmental and social development efforts will also be measured, said Li Zhongjie, deputy director of the Party History Research Office under the Communist Party of China (CPC) Central Committee.

"Apart from economic development, the evaluation will focus on various aspects of officials' performance, such as their achievements on environmental protection and on coordinating the development of the economy and society," Li said.

Officials' contribution to maintaining social stability and to improving people's livelihoods will also be looked at, he said.

Top officials called for the changes at Monday's meeting of the CPC Central Committee Political Bureau, which was presided over by Hu Jintao, general-secretary of the CPC Central Committee.

Details of the updated system will be released soon.

For some time, and especially since the reforms and opening-up in the late 1970s, officials' contribution to economic development - and to the GDP growth rate in particular - was the main yardstick by which they were evaluated, said Wang Yukai, a professor with China National School of Administration, in an interview with Shanghai-based newspaper China Business News Tuesday.

"Officials' promotion was closely linked to GDP growth under the old appraisal pattern, which led to vanity projects, drained resources and damaged the environment," he said.


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## xebex

Nothing to troll here am discussing the Chinese motor industry. I am just pointing out that Chinese auto makers need to improove its safety.


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## aimarraul

Britain's BP, Chinese oil firm win Iraq deals
(Agencies)
Updated: 2009-07-01 10:31

BAGHDAD: British energy giant BP and China's Chinese National Petroleum Corp (CNPC) International Ltd won a deal to develop Iraq's biggest oilfield but had to slash its fee as Baghdad's tough terms put off other investors in the country's first major energy auction since the US-led invasion in 2003.

Other companies, including firms from China and India that are eager to get a share of the world's third largest oil reserves, balked at the fees and Iraq failed to strike deals on the remaining seven oil and gas fields on offer.

The controversial auction of Iraq's prized assets took place on the same day that the US troops who toppled Saddam Hussein quit Iraq's cities and left security chiefly to the country's own forces. The sale aims to raise funds for reconstruction as Iraq also takes greater charge of its economy.

"Today we have seen that the Iraqi Oil Ministry and international oil companies are living on different planets," oil analyst Ruba Husari said.

The results of the auction were not a disappointment, said Oil Ministry spokesman Asim Jihad.

"The participation of these well-known, major companies is a good sign and it reflects the desire of these firms to invest in the Iraqi oil sector," Jihad said.

Iraq's Oil Ministry asked companies to submit revised bids at the end of the auction. Seven did, but they were not made public. The bids would be handed to the Iraqi cabinet for a decision, an official close to the process said.

The sale was billed as the first chance since Iraq nationalised its oil in 1972 for major foreign companies to get a run at the country's hydrocarbon reserves, much of which are untapped. But many Iraqi critics said it was a bad bargain.

Foreign companies servicing the fields will be paid per barrel of oil produced above a certain amount.

BP and CNPC Grab Sole Deal

The BP-led consortium including the CNPC, was the only foreign group to strike a deal -- for the 17-billion barrel Rumaila oilfield, Iraq's biggest, in the Shi'ite south.

The deal only went down after an Exxon Mobil-led group rejected the government's proposed fee.


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## aimarraul

PMI of manufacturing sector reaches 53.2&#37; in June
(Xinhua)
Updated: 2009-07-01 10:09

BEIJING: The Purchasing Managers' Index (PMI) of China's manufacturing sector stood at 53.2 percent in June, the China Federation of Logistics and Purchasing (CFLP) said Wednesday.

The figure was up 0.1 percentage points from May, when the index fell 0.4 percentage points from the previous month.

A reading of above 50 suggests expansion, while below 50 indicates contraction.

The PMI includes a package of indices that measure economic performance. The survey, conducted by the National Bureau of Statistics, covers purchasing and supply managers at more than 700 firms across China.

The output index was 57.1 percent, up 0.2 percentage points from a month ago. The new order index fell to 55.5 percent from 56.2 percent in May and 56.6 percent in April.

The purchasing price index climbed 4.7 percentage points to 57.8 percent, the seventh monthly increase since December.


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## aimarraul

Airbus starts $350m Harbin plant construction
By Zheng Lifei (China Daily)
Updated: 2009-07-01 10:35

HARBIN: European aircraft maker Airbus Tuesday started construction of a $350 million component plant in this industrial city, one week after it delivered its first A320 plane assembled in China.

The composite manufacturing facility, in which Airbus holds 20 percent stake, will produce components for A350 XWB, a wide body plane, and A320 families, a single-aisle aircraft.

Harbin Aircraft Industry Group Corporation Ltd, Hafei Aviation Industry Company Ltd, AviChina Industry & Technology Company and other Chinese partners hold the balance 80 percent stake.

The new plant, scheduled to be operational by the end of 2010, is part of the world's second biggest aircraft maker's commitment to locally manufacture 5 percent of the A350 XWB airframe under an agreement reached with the Chinese government in 2007.

The new plant, which will cover more than 30,000 sq m, will create 1,000 jobs, according to Yu Shayan, vice-governor of Heilongjiang province.

"It (the manufacturing center) will be able to manufacture composite parts and assemble composite work-packages for the A350 XWB and A320 families and future Airbus programs," said Laurence Barron, president, Airbus China.

The joint venture plant, Barron said, would serve as an exclusive supplier to Airbus.

Asked whether the plant would in the future supply parts for China's large commercial aircraft project, Barron said: "I doubt it, but all possibilities remain."

Airbus is also in discussions with Chinese industrial partners for a project to manufacture components for its A350 XWB plane in Chengdu, Barron said.

Logistics Center in Tianjin

The plane maker, Barron said, is also considering setting up a logistics center in Tianjin.

But he declined to elaborate on the two issues.

Airbus' industrial procurement value from China amounted to $100 million last year and the aircraft maker is aiming to double it to $200 million by next year and to $500 million by 2015, Barron said.

The construction of the new plant comes one week after Airbus delivered its first A320 aircraft assembled in the Tianjin factory to Chinese airlines.

The Tianjin assembly, in which Airbus holds 51 percent stake, will roll out 10 more A320 aircraft within this year.

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## aimarraul

Fuzhou-Wenzhou high-speed railway on trial run
(Xinhua)
Updated: 2009-06-30 21:24

FUZHOU: The first high-speed railway in China's coastal mountainous Fujian Province began trials Tuesday, local authorities said.

The railway, linking Fujian's capital Fuzhou and Wenzhou City in neighbouring Zhejiang Province, began trials at 8:36 a.m. in Fuzhou. This is the first railway linking the two provinces, said an official with the Fujian Development and Reform Commission.

The railway will be formally put into use in October, the official said.

The 298.4-kilometer-long railway costs 12.66 billion yuan (US$1.85 billion). Nearly 230 kilometers are in Fujian.

The railway has a design speed of 200 to 250 kilometers per hour for passenger trains, and the journey between the two cities will be shortened from five hours to two hours. Construction began in August 2005.

The new line will be an important section of China's coastal railway artery. The other two railway lines in the project, including one rail linking Shenzhen City in Guangdong Province and Xiamen City in Fujian, and the other linking Fuzhou and Xiamen, are still under construction and are expected to be finished in 2010 and 2009 respectively.

"By then, the railways will stretch along China's booming southeast coast, linking the Yangtze and Pearl River Deltas, China's two biggest economic powerhouses," said Yu Xuanming, deputy general manager of the Southeast Coast Railway Fujian Co. Ltd., the railway operator.


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## aimarraul

Disney, Hong Kong reach $465m expansion deal
(Agencies)
Updated: 2009-06-30 14:28

The Walt Disney Co and Hong Kong's government have reached a deal to expand the territory's Disneyland theme park at a cost of about $465 million, officials announced Tuesday.

The deal, in the works over the last two years, is part of an effort to boost the fortunes of the theme park after it failed to attract as many visitors as hoped after its opening in 2005.

The park, a joint venture between Walt Disney and the Hong Kong government, will get three new theme areas, as well as 30 new attractions.

"The expansion will be a catalyst to the park's long-term development and bring benefits to not just the local tourism industry but also the entire economy," Rita Lau, Hong Kong's commerce and economic development secretary, told reporters.

Under terms of the deal, the Burbank, California-based entertainment giant will contribute all the necessary new capital for construction as well as sustaining the park's operation during the building phases. It will also convert into equity about $350 million in loans to the venture to help with funding and will keep open a credit facility of about $40 million.

Hong Kong, which shouldered much of the $3.5 billion original construction cost, will not add any new capital, the government said.

"Disney is making a substantial investment in this important project," Leslie Goodman, a Disney vice president, said in a statement.

The park came under fire after disappointing attendance in its first two years of operation. But traffic in its third year grew 8 percent, according to figures provided by the Hong Kong government.

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## aimarraul

Mainland, HK sign supplementary pact on RMB settlement
(Xinhua)
Updated: 2009-06-30 11:10

HONG KONG: The People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) Monday signed a supplementary Memorandum of Co-operation to prepare for the implementation of a Renminbi trade settlement pilot scheme.

Speaking after the signing ceremony in Hong Kong, Zhou Xiaochuan, the governor of PBOC, said the State Council had given the green light for RMB trade settlement services to be provided in the special administrative region.

"Once the relevant administrative rules on the mainland are promulgated, banks in Hong Kong will be able to provide related services to enterprises using RMB to settle trade transactions with their counterparts on the mainland," the Hong Kong Monetary Authority, the de facto central bank of Hong Kong, said in a statement.

The mainland authorities announced in early April that Shanghai and four cities in the Guangdong Province had been selected for a cross-border RMB trade settlement pilot scheme.

Zhou said the PBOC and the HKMA had been working closely on the implementation of the pilot scheme, including the related arrangements for the cross-border settlement and clearing of RMB funds and amendments to the existing legal documents.

The two central banks have previously signed Memorandum of Co- operation as early as 2003 on RMB clearing services sought after by individuals in Hong Kong.

Authorities would still need to work on details after the signing of the agreement Monday, including the signing of agreements between PBOC, the clearing banks and banks participating in the pilot scheme, HKMA Chief Executive Joseph Yam said.

Yam said he expected the first RMB trade settlement to come in July.

John Tsang, the Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) government, said the pilot scheme would not only strengthen the role of Hong Kong as a testing ground for the use of RMB outside the mainland, but was also conducive to trade activities and economic development in the two places.

"This will also provide Hong Kong enterprises with more flexibility in their operations, and is complementary to the policy initiatives of the Government to assist them in withstanding the impact of the international financial crisis," he said.

Yam said the pilot scheme, once implemented, would help further diversify RMB business in Hong Kong and enhance the capability of Hong Kong financial system in handling RMB-denominated transactions.

"I hope that RMB business in Hong Kong will continue to develop, consistent with the policy direction of further developing a mutually-assisting, complementary and interactive relationship between the financial systems of the mainland and Hong Kong."

"This is of strategic importance," he said.


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## Communist

@ *aimarraul*, 

Try to post the links and some photos if possible. 

And congratulations!!! Today the CPC is 88 years old!!


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## wtf

From the Freakonomics blog. 

Why the Chinese Save - Freakonomics Blog - NYTimes.com

Some say that a major cause of the U.S. housing bubble was a surge in savings overseas, particularly in China, where the personal savings rate soared to 30 percent of disposable income. (In the U.S., meanwhile, we were saving next to nothing). Just why the Chinese were saving so much has been a puzzle to many economists. Now Shang-Jin Wei and Xiaobo Zhang think theyve come up with an explanation. It turns out that Chinas one child policy, which created a huge surplus of men in the country, has driven up the cost of getting married, as more and more men compete for fewer and fewer women. To keep up, families with sons have been holding off on spending to save up wealth that boosts their childrens marriage prospects. In their paper, Wei and Zhang argue that Chinese marriage-price inflation could account for as much as half of the increase in the countrys household savings since 1990.


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## wtf

The actual paper
The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China


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## wtf

If the paper is true then the savings 'problem' might soon spread to India and Pakistan.

Pakistan has a sex ratio of 1.05:1 , India has 1.065:1 and China is at 1.08:1. Wonder if the Indian dowry trend will reverse ? (Does Pakistan have dowry or meher? )


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## aimarraul

chinese save money for the next China-india&#30250;&#19977; war

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## BelligerentPacifist

8 men more for each 100 women should hardly have such a huge impact in savings, though it should matter. The chinese, and I'd say the Indian too, ethos are such that people don't squander off all their earnings. At least among more traditional people.

Pakistan is plagued by a similar dowry issue as India. I don't think meher is as big a problem as dowry. The bad new development is that people are allegedly now handing wishlist to the other party. The good one is that, in my limited experience, people who are into religion often refuse dowry.


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## sob

There is no end to the theories being forward by economists today.

This is a traditional thing in Asia where the savings rate is very high compared to Europe and America. 

But IMO it is due to the lack of Social Security net in these countries. When you know that in old age and in sickness you have to take care of yourself then you better start saving from day one.

Better still it is this high savings rate in India and China that has insulated them to some extent from the current economic turmoil.


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## glomex

Most of the western countries have overspent their income...they are practically Broke..... so theories like these are circulated in media so as to lure people spend more ..and pull money from developing countries to so called developed countries which are dying for money to feed their failed systems...


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## wtf

aimarraul said:


> chinese save money for the next China-india&#30250;&#19977; war




-----------------------------


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## wtf

sob said:


> There is no end to the theories being forward by economists today.



It is the freakonomics blog... the author (of blog) made a bunch of money on a book that correlates abortion with reduction in crime.


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## sob

Got your point, no point freaking out over this


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## aimarraul

General Motors: China sales up 38% in first half of 2009
(Agencies)
Updated: 2009-07-01 14:30

SHANGHAI: General Motors Corp. said Wednesday that sales in China jumped 38 percent in the first half of 2009, helped by strong demand for its minivans and other small vehicles.





GM sold more than 100,000 vehicles a month in China in January-June for a total of 814,442, a record for any half-year, the company said in a statement. That compares with sales of 1,094,561 GM vehicles in China for all of 2008.

Strong growth in China and other emerging markets is crucial for GM's recovery as it works to emerge from Chapter 11 bankruptcy back in the United States. While GM has slashed jobs and closed factories back home, it is still expanding in China.

"China's vehicle market continued to outpace most expectations for growth," said Kevin Wale, GM's China Group president and managing director. "We continued to enjoy strong demand for many of our existing products and new models."

The increase in sales was helped by stimulus policies, such as subsidies for replacement vehicles, and by strong growth in inland cities that have lagged behind China's wealthier coastal areas.

China's total passenger car sales surged 21 percent in January-May, to 3.36 million units, while total vehicle sales climbed 14.3 percent to 4.96 million units, according to industry figures.

Industrywide sales are forecast to top 10 million units this year. In 2008, China's auto sales grew 6.7 percent to 9.38 million units - the first time growth has fallen below 10 percent since 1999.

GM's minivan joint venture in southern China's Guangxi province, SAIC-GM-Wuling, has thrived under government policies aimed at promoting use of more fuel efficient, less polluting vehicles.

SAIC-GM-Wuling sold 524,598 units in January-June, up nearly 50 percent from the first half of 2008.

Its most popular vehicle, the Wuling Sunshine minivan sold 295,789 units, while sales of the Wuling Rong Guang premium minivan, which was launched a year ago, nearly topped 100,000 units. SAIC-GM-Wuling sold 32,056 Chevrolet Spark mini-cars, up 60.0 percent over the year before.

Other big sellers included the Excelle sedan and other Buick models.

Despite its financial woes elsewhere, Wale has said GM's eight joint ventures are sticking to their target of doubling sales from 2008 to about 2 million within the next five years.


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## aimarraul

CNPC-BP consortium wins bid for Iraqi oil field
By Hou Lei (chinadaily.com.cn)
Updated: 2009-07-01 11:39

A consortium led by the Chinese National Petroleum Corp (CNPC) and British giant BP PLC (BP) won the deal to develop the Rumaila oil field in southern Iraq on Tuesday.






The consortium grabbed Iraq&#8217;s first oil fields development contract to foreign capitals since 1972.

Eight of the world&#8217;s top 10 non-state oil producers were among more than 30 companies vying for $16 billion worth of technical service contracts.

An international consortium led by US giant Exxon Mobil won the bid for Rumaila but later rejected the Iraqi government's proposed higher cost of production per barrel.

Under the service contracts, companies winning the bid would be paid by Iraq a per barrel fee for any crude they produced in excess of a minimum production target.

The BP/CNPC alliance agreed to develop the field at a cost of $2 a barrel for excess production, lower than the US$3.99 BP and Exxon initially bid. The Exxon Mobil-led consortium offer was US$4.8 per barrel, according to an earlier report from Reuters.

Rumaila holds 17.8 billion barrels in crude reserves, making it the biggest oil field in Iraq.

Iraq failed to strike deals on the remaining seven oil and gas fields in the auction.


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## aimarraul

Taiwan opens door for mainland investment
(Agencies)
Updated: 2009-06-30 19:34

TAIPEI, Taiwan: Taiwan has opened up key parts of its manufacturing and service sectors to mainland investment as another barrier falls across the Straits.

The new rules announced Tuesday are part of Taiwan leader Ma Ying-jeou's ambitious effort to move the island's economy closer to Chinese mainland, and foster a dialogue aimed at ending six decades of estrangement.

Under the new rules, Chinese mainland companies will be able to invest in 100 categories of local business, including computer components, cell phones, car making and building of resort hotels and commercial ports.

But Taiwan is keeping the semiconductor, flat panel display, solar panel making and communications sectors to itself, to maintain its technological advantages. Real estate development will not be open to mainland companies, though their mainland employees will be permitted to buy property for private use.

No specific investment caps have been imposed but officials said the percentage of mainland ownership in a Taiwanese firm will be subject to approval on a case-by-case basis.

Under the new rules, mainland institutional investors will also be allowed to buy Taiwanese shares as long as the accumulated stock does not exceed 10 percent of a listed firm's total share value.

The new rules take effect immediately.

"We will start on a smaller scale and expand the scope when we see results of the (initial) investments," said Deng Cheng-chung, Taiwan's deputy economics chief.

Despite the limitations, a substantial influx of mainland capital is expected into the island. Chinese mainland has encouraged its businesses to invest in Taiwan, as a chance to establish closer ties across the Taiwan Straits.

Until now, the trade and investment flows have been largely one way. Cumulative Taiwanese investment on the mainland since the late 1980s stands at more than $100 billion and trade now exceeds $110 billion annually.

Since Ma took office 13 months ago, the island leader has pushed aggressively to cement closer economic ties and liberalized conditions for Taiwanese investment on the mainland. The two sides launched regular direct air and maritime links last December.

Fresh mainland funds are expected to help stimulate Taiwan's economy, which shrank by a record 10.2 percent in the first quarter of 2009 from a year earlier.

Property developers say they expect upscale office rentals in Taipei, currently lagging way behind those of Hong Kong or Singapore because of the sluggish local economy, to shoot up as more mainland enterprises set up operations on the island.


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## aimarraul

*Sri Lanka grants China exclusive economic zone*
(Agencies)
Updated: 2009-07-01 20:03


COLOMBO: Sri Lanka has granted China an exclusive economic zone in its first post-war effort to attract more investment from the world's largest developing economy, the country's investment promotion agency said on Wednesday.

Hong Kong-based conglomerate Huichen Investment Holdings Ltd. will invest $28 million to develop the zone located in Mirigama, which is 55 km (34 miles) from the main port in the capital Colombo and 40 km from the international airport.

"The Chinese company will establish, develop, and market the new special economic zone," A.M.C. Kulasekera, BOI deputy director general, said in a statement.

China has long had ties with Sri Lanka and was a time-tested ally in the last stage of a 25-year war with the Tamil Tigers.

Sri Lanka declared total victory on May 18 in a war that has been a drag on its $40 billion economy for decades. It is expecting foreign direct investment this year to surpass the record $889 million seen in 2008.

Already, China's government and Chinese firms are taking part in two major projects, building the Hambantota port in southern Sri Lanka and the financing of a coal-fired electricity plant.

To build the second and third phases of the 900 megawatt coal-fired Norochcholai power plant, China offered an $891 million loan with a tenure of 20 years at 2 percent, media reported this week.

China's Exim bank also gave $360 million to finance the first phase of the Hambantota port, in which Chinese firms are building the harbour and fuel oil bunkering terminals to service ships plying the busy sea lanes at the Indian Ocean island's south.

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## scshqgcm

China Is Moving to Dominate the Global Auto Market

China's Geely Auto unveiled a new model called the GE at the Shanghai Motor Show in April, grabbing the world's attention. The reason was that the model looked like a knockoff of the Rolls-Royce Phantom. Not only was the overall exterior the same, but the GE even copied the British automaker's trademark grill and "Spirit of Ecstasy" emblem complete with wings. However, there was one obvious difference between the two models, the price tag. While a Rolls-Royce Phantom costs more than W500 million (US$1=W1,272), a GE costs just W60 million. 

Chinese automakers have become notorious for producing knock-offs of foreign vehicles. Most compact and mid-sized cars popular in the global market, including Hyundai Motor's Santa Fe and GM Daewoo's Matiz, have been copied without authorization. Now, even the most luxurious car in the world has become a target. However, Chinese carmakers do not seem to care despite growing criticism from around the world. Geely claims it has merely "recreated" the classic style of the Rolls-Royce. Chinese media have even lauded Geely, saying a home-grown carmaker has finally entered the luxury car market.

And now, Geely, China's first privately-run carmaker, has taken the world by surprise once again. The company, established in 1998, has reached a tentative agreement with Ford Motor Company to buy Volvo from the U.S. carmaker, which bought the 82-year-old Swedish carmaker in 1999. Although Geely is only China's 10th largest car company, it has already acquired a stake in a British taxi cab manufacturer in 2007, and earlier this year purchased an Australian manufacturer of gearboxes. Given all this, the world can no longer look down on the company. 

Tengzhong Heavy Industrial Machinery Company based in Sichuan Province recently bought GM's Hummer division, which is famous for producing military vehicles. Another Chinese company also bought the brake and suspension division of Delphi, the world's largest automotive parts maker. Shanghai Automotive Industries Corporation, the largest shareholder of Korea's Ssangyong Motor, owns Britain's MG Rover. Although ending in failure, Chinese automakers also demonstrated interest in acquiring Chrysler and Opel, the European unit of GM. The global automotive landscape is undergoing major change with Chinese carmakers at the center of it. 

Until recently, China's automobile industry was a target of ridicule. None of China's 100 plus carmakers was able to compete internationally. However, once the global economic crisis has passed, things will surely change for Chinese carmakers. Equipped with world-class brands and technologies by acquiring leading global companies, they look set to dominate the world auto market, starting from the small car segment. It remains to be seen whether Korean carmakers will be able to survive these big changes led by China. 

By Chosun Ilbo columnist Kim Ki-cheon 
englishnews@chosun.com / Jun. 22, 2009 12:08 KST

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## scshqgcm

wtf said:


> From the Freakonomics blog.
> 
> Why the Chinese Save - Freakonomics Blog - NYTimes.com
> 
> Some say that a major cause of the U.S. housing bubble was a surge in savings overseas, particularly in China, where the personal savings rate soared to 30 percent of disposable income. (In the U.S., meanwhile, we were saving next to nothing). Just why the Chinese were saving so much has been a puzzle to many economists. Now Shang-Jin Wei and Xiaobo Zhang think theyve come up with an explanation. It turns out that Chinas one child policy, which created a huge surplus of men in the country, has driven up the cost of getting married, as more and more men compete for fewer and fewer women. To keep up, families with sons have been holding off on spending to save up wealth that boosts their childrens marriage prospects. In their paper, Wei and Zhang argue that Chinese marriage-price inflation could account for as much as half of the increase in the countrys household savings since 1990.


when you r in trouble ,you will understand it very well


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## jeypore

wtf said:


> It is the freakonomics blog... the author (of blog) made a bunch of money on a book that correlates abortion with reduction in crime.




But that is the problem of correlation, techincally you can correlate anything. For example one can correlate, sales of American cars down to increasing in savings, but is it really true?

There are other factors far greater, i would suspect.

It terms of Chinese savings, that is based on Asian mentallity, nothing new that I can see.


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## Gabriel

Very optimistic article regarding China auto industry considering the results " Brilliance " got at European New Car Assessment Programme.


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## Gucci Juice

wow cant they create something original?

is it really that hard to make a car?

i mean even Tata makes original stuff...

look at the nano brilliant engineering for a 2000 dollar car

oh and even Mahindra is doing original stuff

they are launching a pickup truck right here soon i hear


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## scshqgcm

Gucci Juice said:


> wow cant they create something original?
> 
> is it really that hard to make a car?
> 
> i mean even Tata makes original stuff...
> 
> look at the nano brilliant engineering for a 2000 dollar car
> 
> oh and even Mahindra is doing original stuff
> 
> they are launching a pickup truck right here soon i hear



it is not really hard to make a car,but we know that it is really hard to make a good car,and we r on the way.

in your eyes we made nothing original,sorry we just did not good enough,but we all know that it will last for a short time from now.
this financial crisis is a turnning point ,we r changing ,so you may surprise,wait ---------


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## SinoIndusFriendship

Look here, European and American automakers copy Japanese Designs, so do Koreans. If we trace the 'vehicle' back to China, then all vehicles copied ancient Chinese 'cars'. Get over it, you did NOT invent everything. You copied us first, now we return the "favor".


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## jeypore

SinoIndusFriendship said:


> Look here, European and American automakers copy Japanese Designs, so do Koreans. If we trace the 'vehicle' back to China, *then all vehicles copied ancient Chinese 'cars'.* Get over it, you did NOT invent everything. You copied us first, now we return the "favor".



Really, ancient Chinese CARS. Can you show me a photo for a proof.

By the way, you do not mean this, Right!!!


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## SinoIndusFriendship

Edited.

This thread is about some guys' theory of why Chinese save money. But I find his theory not credible. Jeypore is correct. It is the appreciation of hard-earned dollars and a responsible long-term attitude that is prevalent in all of Asia. Not related to 'dowry'. Nothing unusual here.


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## SinoIndusFriendship

Great news for all! Colombo can now rebuild its shattered nation into a world-class island nation. Was looking at Bangladesh and amazed at its beauty (and modernity). SL can be a jewel/pearl in the sea!


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## fhassan

Good, China needs to completely encircle India to ensure that it doesnt misbehave.


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## Enigma SIG

thats great!!! this will be a big boost to the chinese aviation industry!!


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## Jako

SinoIndusFriendship said:


> Nonsense fabricated numbers. Just visit India and you'll see sex ratio of Hindustan (which is extremely chauvinistic, just saying) is MUCH higher. Thus there are huge male homosexuality there (which they export to Singapore).
> 
> That said, jeypore is correct. It is the appreciation of hard-earned dollars and a responsible long-term attitude that is prevalent in all of Asia. Not related to 'dowry'. Nothing unusual here.



amusing indeed......what are you?....some kind of super agent?.....how do you come up with this kind of crap theories?.......trolling at its best


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## jeypore

fhassan said:


> Good, China needs to completely encircle India to ensure that it doesnt misbehave.



My friend economic developement and a military base is to different things.

Regards.


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## SinoIndusFriendship

jeypore said:


> My friend economic developement and a military base is to different things.
> 
> Regards.



China and India have unique but similar challenges. China is sea-locked by Japan, Philippines, Malaysia, Indonesia, and Taiwan (until reunification). India is land-locked by Pakistan, Nepal, Bhutan, BD, and Myanmar.

We can learn and appreciate each other's predicaments.


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## SinoIndusFriendship

Deleted by self.

Reason: Arguing is not conducive to building lasting friendship. We need to start from person-to-person exchanges, then nation-to-nation exchange. There is no reason why we need be jealous if the other does well, why can't we be happy for each other's progress???


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## Jako

SinoIndusFriendship said:


> Dear sir, my humble self is not trolling. Just call it world experience.  Also not singling any nation out, as I see similar problems everywhere. With due respects to mother India, she has great perseverance and earn much respect from me. China, Latin America, Iran, Germany, you name it - we all have similar challenges. This world is a crazy and wild place. Humanity is in this together.



ok,nice words indeed.......but,whats the fuss about indian male and female ratio?....you said you visited india once that too in 2005,now with only one visit how can you put forward such a theory ......,and how do you know india exports homosexuality to singapore,being flooded by it?.......fishy indeed


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## SinoIndusFriendship

Self-deleted. Reason is I want to be friends with India. No point in pointing out each others weak points (which one already recognize).


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## quriosity

i dont know abt chinese.... but if any man can save money...i apprecite.... personally i cant save money...


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## Jako

SinoIndusFriendship said:


> Female infantacide. Let's not dwell on this. Regarding Singapore, the guest workers are imported to assist with construction and other blue collar jobs. Most are males, and besides this day job at night they offer "other" services. For everyone's benefit, let's get back on topic.



sorry but i want an end to this......the ratio is generally released by the govt after census every ten years i believe,with what proof you disagree to that?.........yes there are many indian male workers in singapore,but how do you know that they are all GAY,and about their night service?....how dare you insult my country on stupid crappy assumptions,that god knows how you make?........how can you assume so much after one ******* visit?......how can you use indian words like 'gora','desi' and others with such flexibility?.........I WANT ANSWERS,DAMN IT!


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## aimarraul

*China approves new economic zone in NE coast*
(Xinhua)
Updated: 2009-07-01 19:59

SHENYANG: China's State Council, the Cabinet, approved plans Wednesday to develop the coastal economic belt in the northeastern Liaoning Province in effort to rejuvenate the traditional industrial base.

The economic belt, covering about 700 square km, will focus on shipbuilding, petroleum refining, advanced equipment manufacturing, raw materials, high-tech industries and agriculture processing, according to the plan.

The zone comprises ports of Dalian, Jinzhou, Yingkou, Huludao and Dandong, which opened navigation services to more than 140 countries and regions.

"The zone will become an important engine for the rejuvenation of the the northeast industrial base," said Lin Muxi, Economics School dean of Liaoning University.

"Since the Chinese government started to develop eastern coastal cities such as Shenzhen and Shanghai, the Pearl River delta and the Yangtze River delta have seen rapid growth," he said. "Now the government is paying closer attention to the underdeveloped regions like Liaoning and Guangxi."

Previously, China gave the green light to the coastal areas in east China's Jiangsu Province, the Beibu Bay in Guangxi and the economic zone on the western side of Taiwan Straits in Fujian Province.


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## aimarraul

*China vows to further co-op with Indonesia*
(Xinhua)
Updated: 2009-07-01 20:03


BEIJING: China on Wednesday called for more cooperation with Indonesia to push forward bilateral ties.

"China and Indonesia are strategic partners," Vice Premier Li Keqiang said when meeting with visiting Indonesian Foreign Minister Hasan Wirayuda.

Li said that the bilateral ties had stepped into a track of mature, rapid and stable growth, with increasing mutual political trust, effective cooperation in various areas and close coordination in major international and regional affairs.

The two nations, both as major developing countries, shared broad common interests and enjoyed great potentials in making win-win cooperation, according to the vice premier.

Chinese Foreign Minister Yang Jiechi also told Hasan during their talks that the China-Indonesia friendly cooperation had made achievements continuously.

According to Yang, the meeting of the China-Indonesia dialogue mechanism of vice premier level was held successfully. The longest cross-sea bridge in Southeast Asia, the Suramadu Bridge linking East Java province and Madura Island in Indonesia, was completed and opened to the public this June with China's support.

In 2008, the trade value between China and Indonesia reached US$31.5 billion, already above the initial target set for 2010 at US$30 billion.

"China attaches great importance to the important and active role Indonesia plays in the regional and international affairs," said Yang.

Hasan agreed that Indonesia-China relationship was experiencing a healthy development.

He reiterated Indonesia's adherence to the one-China policy.

The two foreign ministers signed an agreement on extradition between the two countries after their talks.

Hasan was here on an official visit from July 1 to 2 at the invitation of Yang .


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## aimarraul

*China industry on more solid ground: surveys*
(Agencies)
Updated: 2009-07-01 20:10

BEIJING: China's manufacturing sector extended a steady if unspectacular recovery in June, surveys released on Wednesday showed, adding to evidence across Asia that the regional economy is finally pulling out of a deep dive.

"I believe the current recovery has been confirmed and can be sustained," Fan Gang, an economist who advises the central bank, told a financial forum.

Fan predicted China's exports will be growing again, from a low base, by the end of the year.

The official purchasing managers' index (PMI) for June rose to 53.2 from 53.1 in May, consolidating for the fourth month in a row above the watershed mark of 50.

A companion index compiled for brokerage CLSA improved to 51.8 from 51.2, its third month in positive territory, as output grew at the strongest rate in a year and overseas orders rose for the first time in 11 months.

A reading over 50 indicates an expansion in manufacturing sector, while one below 50 suggests contraction.

"We take it as signalling that the green shoots of economic recovery have taken root and are likely to blossom in the second half of 2009," Steven Zhang and Qing Wang at Morgan Stanley said in a note to clients.

Beijing responded to last autumn's slump in global demand with a massive 4 trillion yuan ($585 billion) stimulus package, loose credit policy and an array of tax breaks.

Alongside improvements in other timely data such as power consumption, tax revenues, industrial profits and cars sales, Wednesday's reports indicate that the pump-priming is working.

Glimmers of Hope

China accounts for only 7 percent of global output at market rates, so it cannot be expected to haul the rest of the world out of recession. But global investors have responded positively to the improved news flow recently out of Beijing.

Japanese construction makers such as Komatsu and Hitachi Construction, which often rise when there are expectations of orders to be won in China, gained 1.8 percent and 1.6 percent, respectively, on Wednesday. The surveys also helped to underpin a rebound in oil prices

Shanghai's main stock index jumped 1.7 percent to a 13-month high. Shares across the region, by contrast, were little changed as investors took the view that a turnaround to global recovery was likely to be a slow grind.

The recovery in export business revealed in the Chinese surveys was partially reflected in South Korea, where exports fell by 11.3 percent in June from a year earlier, the slowest decline since October.

"The worst is apparently behind us, and the economy is gearing for a faster-than-expected recovery," said Song Jae-Hyok, an economist at SK Securities.

A survey of Indian manufacturers was also broadly positive, with domestic demand boosting activity to an eight-month high.

Economists at J.P Morgan last Friday raised their projection for second-quarter gross domestic product growth in emerging Asia, forecasting quarter-on-quarter growth of more than 10 percent at an annualised rate.

That reflects assumptions that quarter-on-quarter growth in industrial output will surge at a 35 percent annualised pace -- and nearly 40 percent in China's case.


The World Bank, the Organisation for Economic Cooperation and Development and a clutch of banks have all upgraded their growth forecasts for China in the past two weeks.

The government's goal of 8 percent GDP growth for all of 2009, once dismissed as fanciful, now looks attainable.

Andy Rothman, CLSA's China macro strategist, reaffirmed his target of 8 percent but said the risks were now clearly on the upside. "It is now safe to say that a sustainable recovery is well under way in China," he said in a note to clients.

Likewise, Mingchun Sun with Nomura in Hong Kong said the buyers' surveys suggested that the revival in manufacturing was gaining a stronger foothold and reaffirmed his forecast of 8 percent GDP growth this year and 10 percent in 2010.

Not everyone is getting carried away.

Li Hongrong, an economist with Ping An Securities in Shenzhen, cautioned that momentum in investment and industrial output could fizzle out.

"It is hard to say whether economic growth will trace a V or a W shape, but we believe a slowdown will take place next year when the effects of the government's push run out," Li said.


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## aimarraul

*China launches first direct flight linking Beijing, Lhasa*
(Xinhua)
Updated: 2009-07-01 23:21

BEIJING: Air China, the nation's biggest carrier, said Wednesday it will launch the nation's first direct flight between Beijing and Lhasa, the capital city of southwestern Tibet Autonomous Region, beginning July 10 to promote tourism.

The three-hour-fifty-minute flight will be operated by the Airbus A330.

Previously, travelers had to transfer through Chengdu, the capital city of Sichuan Province neighboring Tibet. The transfer added two hours to the flight.

CA4122 will leave at 7 a.m. everyday from the Beijing Capital International Airport, and arrive at the Lhasa Gonggar Airport at 10:50 a.m..


welcome to tibet


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## scshqgcm

jeypore said:


> But that is the problem of correlation, techincally you can correlate anything. For example one can correlate, sales of American cars down to increasing in savings, but is it really true?
> 
> There are other factors far greater, i would suspect.
> 
> It terms of Chinese savings, that is based on Asian mentallity, nothing new that I can see.



asian mentallity? how funny,huh? you Amercans r so blind?
if China have a situation like USA,who would lend money to us? you ?
the US goverment know that nobody want to see her collapse ,because you have dollar,you can print more to make your trouble to become others'.
do you think you had done somethings to help southeast Asia to get out of financial crisis in 1997,but i know that this crisis is a result of some of Americans like George Soros&#12290;

we just care more about our future when we r in troubles,and i am sure that no west country or their allis in asia will help us 
although we lend some money to help you and your allies,we just dont want to face 1929 again.


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## aimarraul

*Iraqi crude deal 'boost' for China's oil security quest*
By Wan Zhihong (China Daily)
Updated: 2009-07-02 09:58


The successful joint bid by BP and China National Petroleum Corp (CNPC) to develop an oilfield in Iraq has offered unique opportunities for the Chinese company to tap crude reserves in the oil-rich nation, analysts said yesterday.

But domestic oil producers should prepare themselves well for any uncertainties in the war-torn country, which boasts of the third-largest oil reserves in the world, they added.

Iraqi crude deal 'boost' for China's oil security quest






Iraq on Tuesday made its first auction of major oil contracts since the 2003 US-led invasion. A consortium by BP and CNPC was finally awarded a contract to develop the Rumaila oilfield, the largest of six oil and two natural gas fields in the bidding.

The BP-CNPC group beat a bid from a consortium by Exxon Mobil and Malaysia's Petronas for the oilfield. It was the only successful bid in Tuesday's auction.

Besides CNPC, China's two other oil majors, Sinopec and CNOOC also took part in Tuesday's auction.

Rumaila is the workhorse of Iraq's oil sector, with a current capacity of 1.1 million barrels per day (bpd) out of Iraq's total national output of 2.4 million bpd.

With a foothold in Iraq, China can diversify its oil supplies to enhance energy security, said Lin Boqiang, professor, Xiamen University, adding that the consortium model can reduce risks both for BP and CNPC.

China, which became a net oil importer 16 years ago and which relies on imported oil for nearly half its requirement currently, has already seen domestic production peaking, said Lin. "The increase in China's oil consumption in future may all come from overseas oil reserves."

China imported 179 million tons of crude oil in 2008, an increase of 9.6 percent from the year earlier. Analysts said there was little doubt that oil imports would see rapid increases, as there existed a big gap between domestic consumption and production.

Statistics showed that China's oil consumption experienced around 5 percent annual growth in recent years. However, the country's crude oil production only saw a 2 percent increase year-on-year.

According to a report by the State Information Center, 55 percent of the country's oil consumption would have to be met by imports in the year 2010, and the figure would further rise to 66 percent in 2020.

On June 24, Sinopec Group, China's second largest oil company, agreed to acquire the Geneva-based oil and gas producer Addax Petroleum Corp for $7.3 billion.

If the deal gets approved, it would be China's largest overseas energy acquisition. Addax has operations in Iraq and in West Africa.

Some experts contend that the West should not be concerned about a substantial Chinese presence in Iraqi oilfields, because it gives China a greater stake in improving stability in the region, the New York Times said on its website on Tuesday.

This was the right time for domestic oil companies to accelerate their overseas acquisitions, as they would "get more reasonable prices in making deals", said Yin Xiaodong, an oil analyst.

"But, compared to their Western counterparts, Chinese companies still lack experience in overseas acquisitions. So, they should be more cautious in making such deals," Lin of Xiamen University said.


----------



## aimarraul

*Local banks to fund Chinalco's rights bid*
(China Daily)
Updated: 2009-07-02 10:08

Chinese banks will fund Aluminum Corp of China (Chinalco) in the $15.2-billion rights issue of Australian mining firm Rio Tinto, media reports said.

China Development Bank (CDB), a policy bank, and Agricultural Bank of China (ABC), one of the four biggest commercial banks in the country, will extend a credit line to Chinalco, which according to both the Financial Times and the Daily Telegraph, was set to subscribe to the issue for around $1.46 billion.

"Negotiations over the financing between CDB and Chinalco have been completed and, I guess, the detailed arrangement will be released soon," reported 21st Century Business Herald yesterday, citing an anonymous person within the banking industry.

But the person did not reveal the exact amount the policy bank would lend to Chinalco or the rate of interest on the loan.

ABC will also fund Chinalco in the rights issue, according to a report by Shanghai Securities News. An unnamed source from the bank said the loan amount this time round would be large.

ABC reached an agreement with Chinalco in April to grant the latter a comprehensive credit line of 100 billion yuan; the current loan is likely to be a part of this credit facility.

In March, a group of banks, including CDB, ABC, the Export-Import Bank of China and Bank of China, signed a contract with Chinalco, agreeing to jointly fund $21 billion for Chinalco's investment in Rio Tinto.

However, the proposed $19.5-billion investment plan was rejected by Rio Tinto on June 5. The company agreed to cooperate with another Australian mining firm BHP Billiton Ltd and went for a $15.2-billion rights issue.

According to a separate statement Chinalco filed with the Shanghai Stock Exchange yesterday, the company will issue no more than 1 billion A shares to at most 10 institutional investors through private placement, aiming to raise up to 10 billion yuan to fuel cash flow and expand processing plants in Chongqing, Shanxi and Henan.

The shares will be issued within six months of the project being approved by the China Securities Regulatory Commission, it said.


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## Spitfighter

Why should India and China fight? We are simply competitors, we both have a long way to go so it would be ridiculous to throw away all that we have managed to gain after such a long and hard fight. Both countries understand this, of course both do things to gain an upper hand but both countries realize the importance of peace and stability at this critical juncture. 

India has always had the means to prop up and sustain a bloody insurgency in Tibet, China in return could have done the same, attacked in the NE and inflicted heavy losses on our side, if we had to fight we would've done it a long time ago. These little disputes are nothing, India and China will never go to war, not for a long time. (62 was an unintended conflict)

We have a lot of catching up to do, the people in the west have so many opportunities and so many facilities, even the maids here in the US have cars. In a country of 300 million, the state pays/heavily subsidizes higher education, they've sent robots to mars, they can wipe out anyone anywhere sitting at home. The US is fighting two wars and people here just go about their lives normally. Europe however reluctantly is always right behind the US. The median income is in the tens of thousands, they are ahead of us in every imaginable sphere of development, their power is unparalleled, the list goes on and on.

Peace and cooperation is the way forward. For South Asia, for Asia.


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## aimarraul

*Govt car purchases drive ire on Internet*
By Wang Huazhong (China Daily)
Updated: 2009-07-03 08:58

Allegations that a Chongqing district government spent 60 million yuan ($8.7 million) on cars over three years has provoked outrage online.

The budget of the unnamed district government was recently leaked on the Internet.

The data shows that 16.9 million yuan was spent on cars and maintenance in 2006, 20.9 million yuan in 2007 and 22.8 million yuan in 2008.

The budget said it would cut spending on vehicle purchases and maintenance, official's reception cost, utility and gas bills and overseas trips by 4.7 million yuan in 2009.

Netizens said the plan to reduce spending was "too little, too late".

"This is just the tip of the iceberg. The real figure might be even bigger," said a Netizen who emphasized that it was just one of the municipalities' 19 districts.

A spokesman for Chongqing's finance bureau surnamed Wang told China Daily that the city's Party discipline authority in Chongqing is conducting an audit in response to Beijing's call to spend less and be more prudent.

The directive from February this year requires local governments to trim 15 percent off spending on vehicle purchases and upkeep.

An unnamed senior official from the city's Party discipline authority said authenticity of the "leaked" information was yet to be verified, but that the public might have been misled by the chart, which provides incomplete information.

"Twenty million yuan sounds big if were spent by a single district people's government. It might actually be an aggregate number of spending by all government bodies and agencies in the district," he said.

He added that the district was unnamed and its geographic size was unspecified, so it did not give a true account of the spending. More than 32 million people in the municipality generated 412 billion yuan of GDP in 2007.

China National Radio recently reported that the Chinese government spent 80 billion yuan to buy vehicles last year.

"Thoughts of tax evasion come to my mind, just looking at the figure," said one Netizen from Henan province in an online forum.

Meanwhile, the Hangzhou city government in Zhejiang province made officials give up their cars in an effort to encourage car sharing. Officials were compensated with a travel allowance between 300 and 2,600 yuan per month.


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## aimarraul

*China hikes 2011 solar power target*
By Zhang Qi (China Daily)
Updated: 2009-07-03 09:09


China is aiming for an installed solar power capacity of 2 gW by 2011, nearly a 15-fold jump from the 140 mW capacity it had at the end of last year, according to people familiar with the matter.

The National Energy Administration has decided to expand the country's solar power capacity to 2 gW in the next two years, with a subsidized price for solar power of 1.09 yuan per kWh, the source said.

China is trying to catch up in a global race to find alternatives to fossil fuels. The country, which revised its 2020 target for solar power capacity from 1.8 gW to 20 gW in its new energy stimulus plan, added 40 mW in new capacity last year.

Six regions and provinces in Northwest China are the most suited for installing solar PV stations in terms of sunshine days. These are Inner Mongolia, Xinjiang Uygur autonomous region, Gansu, Ningxia, Qinghai and Shaanxi, said Shen Yanbo, an expert from the National Climate Center.

China hikes 2011 solar power target






The government's new policy would come as a boost for solar energy in the domestic market and create greater opportunities for companies involved in the entire solar supply chain, said Zhang Shuai, a new energy analyst with Sinolink Securities.

Top panel-makers, including Suntech, Yingli Green Energy and LDK Solar, are expected to benefit from the revised goal.

The solar industry has been hit hard since the end of last year due to freezing credit resulting from the financial crisis and an oversupply of solar panels that have cut prices sharply.

China is considering enhancing incentives at a time when European countries such as Germany and Spain, the largest solar markets, are pulling back on incentives, thereby slowing the market.

Although China has been the largest solar panels supplier in the last two years, it played an insignificant role in the domestic solar photovoltaic (PV) market. But new policies are spurring a change this year.

The government in March approved a subsidy of 20 yuan per watt for solar PV systems larger than 50 kW fixed on building roofs.

The subsidy, which could cover half the cost of installing the system, was popular among developers, attracting applications equivalent to the building of 1 gW of solar power, Reuters reported earlier.

For ground-mounted projects, the government is paying a feed-in tariff for the electricity generated, instead of a subsidy based on the projects' capacity.


It has set a price of 1.09 yuan per kWh for a 10-mW solar PV power plant in Dunhuang, nearly three times the rate paid by coal-fired power plants.

"The subsidized price of 1.09 yuan is not ideal for solar panel players to make money from these projects," said Li Junfeng, deputy director of the Energy Research institute under the National Development and Reform Commission. "The profitable price would be between 1.3 yuan per kWh and 1.5 yuan per kWh, depending on different producers."

He said the government still needed to adjust the feed-in tariff if the domestic PV market had to develop faster.

Besides the subsidy component, some Chinese solar panel makers would be able to make money when the production cost comes down to 1 yuan per kWh within the next two years, company insiders said.


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## aimarraul

Central banker warns of risks in stimulus push
(Agencies)
Updated: 2009-07-04 19:39

BEIJING: China's massive economic stimulus plan has launched some projects that are wasteful, possibly making it hard for investors involved to repay bank loans, China's central bank chief said on Saturday.






"Some projects may be too wasteful, and some projects in local areas may endanger (investors') ability to pay back loans," Zhou Xiaochuan, the People's Bank of China governor, told a forum at the Chinese Academy of Social Sciences, without elaborating.

Zhou's comments underscored government worry about risks from the torrent of spending helping to shore up economic growth.

He said China should formally allow local governments to issue bonds to replace the current irregular practices.

"As the front gate is still closed, many local governments had to launch fund-raising platforms, which makes it harder to control, and there may be big problems in future," he warned.

Beijing announced a 4 trillion yuan ($586 billion) stimulus package at the end of 2008 to help the economy to weather the global slowdown, and banks have rushed to lend money to government-backed projects across the country.

Zhou said many local governments were jostling for the money via their investment arms or other fund-raising vehicles and a significant amount of China's newly offered loans has been used to fund municipal projects.

Last week, the People's Daily warned that banks see loans to government projects as sure bets, and have sometimes become lax in assessing risks and likely returns.

Local Chinese governments are not allowed to issue bonds according to law. But a part of China's stimulus plan and as an ad hoc practice, Beijing had issued 200 billion yuan bonds on behalf of provincial-level governments.

Many governments, however, have also been borrowing through controlled vehicles or by giving hidden guarantees for projects.

"You can see a lot of government financing activities, and you can see lots of municipal debts, it is clear that the demand (to issue municipal bonds) is there," Zhou said.

"It is better to open the front door than to drive people to walk through backdoor or to jump through the window." he added.


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## oct605032048

Auto sales edge past 6m in H1
By Li Fangfang (China Daily)
Updated: 2009-07-10 09:03
Comments(0) PrintMail

Auto sales edge past 6m in H1

Auto sales edge past 6m in H1
A truck transports a load of cars in Jiangsu province. [CFP]

China's booming automobile industry is expected to sprint to the 12-million-unit threshold on the back of a sales surge during the first half of the year.

China sold 6.1 million vehicles in total in the first six months, a 17.69-percent increase over the previous year, the China Association of Automobile Manufacturers (CAAM) said in a statement yesterday.

Full year sales are now likely to comfortably breach the 10-million-unit barrier. China last year sold 9.38 million vehicles, a year-on-year increase of 6.7 percent over 2007 sales.

More impressive, the country has for four consecutive months sold more than a million vehicles in a single month, breaking the monthly sales record each month since March.

US auto sales plunged 35 percent in the first half to 4.8 million units, the slowest since 1982, according to Autodata Corp, a US marketing research firm. Average automobile sales in the US between 1999 and 2007 were 16.8 million units annually.

"China's passenger car segment, which got a stimulus due to the government's positive policies, has been the major power driving the whole vehicle market," said CAAM in the statement.

CAAM data showed that the passenger car segment contributed to the sales increase by 62.89 percent, as the government's tax reduction and subsidies spurred small car sales.

The strong market performance in the first half has made industry analysts double their growth rate forecast for 2009, from a pervious prediction of no more than 10 percent made during the beginning of the year.

"If the market demand won't drop clearly in July and August, which have always been the slack season for the auto market in China and which would be hit by the recent fuel price hikes, the whole year sales may reach 12 million units," said Li Suping, director of auto research at Ipsos, a global market research firm.

Li told China Daily that if July sales plunged no more than 10 percent from June's, China would see a 20 to 30 percent increase in vehicle sales for the whole year. "The quarter-four sales are always hot and there will likely be a delivery peak at the end of the year," she said.

A recent survey by Ipsos showed robust future demand in China's auto market, with 76 percent of the interviewees saying they planned to buy a car in the next two years; among them, 32 percent planned to do so in the next one year itself.

Hui Yumei, an auto market researcher with Sinotrust Co, said China's 2009 vehicle sales would be between 11 and 12 million units if the oil price did not scare away many potential consumers. "The rapid growth, robust market performance and natural demand are strong evidence," Hui said.

Li Chunbo, an auto analyst with CITIC Securities, said that the auto market would see 18 percent growth this year, and a growth rate of between 10 and 15 percent over the next three years.


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## quriosity

hello friends... i just found this video... xinjiang development... at the end the kazakh girls are really exotic & beautiful...


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## oct605032048

China's fiscal revenue up 19.6&#37; in June
English_Xinhua 2009-07-13 23:05:18 Print
&#183;China's fiscal revenue in June rose 19.6 percent year on year to 686.75 billion.
&#183;But in the first half of this year, fiscal revenue fell 2.4 percent to 3.398 trillion yuan.
&#183;The revenue rise is attributed to the stabilization of overall economic performance.

BEIJING, July 13 (Xinhua) -- China's Ministry of Finance announced Monday that the country's fiscal revenue in June rose 19.6 percent year on year to 686.75 billion yuan (100.5 billion U.S. dollars).

However, in the first half of this year, fiscal revenue fell 2.4 percent to 3.398 trillion yuan, said the ministry in a statement on its website.

The growth rate last month was 14.8 percentage points higher than the growth rate in May. Fiscal revenue fell 9.9 percent in the first four months this year from a year earlier to 2.05 trillion yuan due to shrinking business profits hit by the global economic slowdown and active fiscal policies including tax cuts to buoy domestic economic growth.

The ministry attributed the revenue rise in June to the stabilization of overall economic performance, growing business profits and the increase in the cigarette tax.

The government announced on June 20 the tax on cigarette cartons costing 70 yuan or more would rise to 56 percent from 45 percent, and the tax on cigarette cartons costing less than 70 yuan would rise from 30 to 36 percent.

Sales tax revenues rose 63.1 percent year on year in June, with business tax revenues edging up 6.4 percent, but the ministry did not specify the figures.

In June, China's fiscal expenditure increased 21.5 percent to 640.56 billion yuan from a year earlier. From January to June, the figure stood at 2.89 trillion yuan, up 26.3 percent from the same period last year.

The government unveiled a 4-trillion-yuan stimulus package in November last year to be spent over the next two years to shore up the world's third largest economy, with 1.18 trillion yuan from the central government.

Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from state-owned assets.


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## oct605032048

Chinese shares hit 13-month high, boosted by financial, real estate, steel shares 
The benchmark Shanghai Composite Index on Tuesday closed at 3,145.16 points, up 64.6 points, or 2.1 percent to hit a new 13-month high led by banking shares. (Xinhua/Zhao Yingquan)


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## aimarraul

*China's foreign reserves top $2.13t by June*
(Xinhua)
Updated: 2009-07-15 10:52

BEIJING: China's foreign exchange reserves topped $2.13 trillion by the end of June, up 17.84 percent year on year, the People's Bank of China said Wednesday.

About $185.6 billion were added to the world's largest official foreign exchange reserves in the first half of the year, but that figure is about $95 billion less than the same period a year ago, said the central bank.

investments remain profitable
China's foreign exchange reserves topped $2.13 trillion by the end of June, up 17.84 percent year on year, the People's Bank of China said Wednesday.

About $185.6 billion were added to the world's largest official foreign exchange reserves in the first half of the year, but that figure is about $95 billion less than the same period a year ago, said the central bank.

The stockpile was increased by $42.1 billion in June, $30.2 billion more than the same time a year earlier.

Chinese exports plummeted 21.8 percent through the January-June period in the sharpest decrease in a decade after the global financial crisis sapped demand for Chinese goods.

Declining exports drove down the trade surplus to $96.94 billion in the first half, down 1.3 percent year on year.

A decline of the greenback also helped depress the reserves value as a big share of the holdings were US treasury bills.

The central bank also said 7.37 trillion yuan of new bank loans were extended in the first half of the year, 4.92 trillion yuan more than in the same period a year ago, to echo the moderately ease monetary policy to support the economic revival.

Credits to nonfinancial businesses were 6.31 trillion yuan in the first half, up 4.32 trillion yuan year on year. Of the total, 1.32 trillion yuan were short-term loans, and 3.18 trillion yuan were mid-and-long-term loans. Bill financing was 1.71 trillion yuan.

In June, 1.53 trillion yuan of loans were issued, the second highest monthly figure this year.

The broad measure of money supply (M2), which covers cash in circulation and all deposits, rose 28.46 percent year on year to 56.89 trillion yuan by the end of June.

The narrow measure of money supply, M1 (cash in circulation plus corporate current deposits), was up 24.79 percent to 19.32 trillion yuan.


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## oct605032048

First made-in-China regional jet makes longest trial flight




China's first domestically-developed regional ARJ21 jet takes off in east China's Shanghai on July 15, 2009. The jet on Wednesday made its longest trial flight of 1,300 kilometers in about two hours from Shanghai to Xi'an, capital of northwest China's Shaanxi Province. (Xinhua/Pei Xin)


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## aimarraul

*China GDP grows 7.1&#37; in first half '09*
(Xinhua)
Updated: 2009-07-16 10:31


The gross domestic product (GDP) grew 7.1 percent from the same period a year ago to 13.99 trillion yuan (US$2.06 trillion) in the first half, as massive government spending and record lending helped the economy rebound from the worst growth in a decade.

Chinese economy expanded 7.9 percent year on year in the second quarter, said the National Bureau of Statistics (NBS).

The government's growth target for this year is 8 percent.

Many analysts expect China to be the first major country to emerge from the worst global economic slump since the 1930s.

China's consumer price index (CPI), a main gauge of inflation, declined 1.7 percent in June from a year earlier.

This marks the fifth consecutive month of decline since the index dropped 1.6 percent in February, the first fall since October 2002.

PPI falls 7.8% in June

China's producer price index (PPI), a major measurement of inflation at the wholesale level, fell 7.8 percent year on year in June. The decline compared with a 7.2-percent drop in May from the same period last year.

Urban fixed-asset investment up 33.5% in H1

China's urban fixed-asset investment in the first half year rose 33.5 percent from a year earlier. The figure is 7.2 percentage points higher than the same period of last year.

Industrial output up 10.7% in June

China's industrial output expanded 10.7 percent in June from a year earlier, faster than the 8.9 percent rate in May.

It makes the industrial output growth rise to 7 percent for the first half.

Retail sales up 15.0% in H1

China's retail sales in the first half year rose 15.0 percent from a year earlier, the National Bureau of Statistics announced Thursday.

FDI falls 17.9% in first half

China's used foreign direct investment (FDI) dropped by 17.9 percent to US$43 billion in the first half of this year from a year ago, said Yao Jian, spokesman of the Ministry of Commerce, Wednesday.

Foreign reserves top $2.13t by June

China's foreign exchange reserves topped $2.13 trillion by the end of June, up 17.84 percent year on year, the People's Bank of China said Wednesday.


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## Neo

*China forex reserves hit record $2.13 trillion: central bank ​*
** Says reserves, already the worlds largest, grew by $185.6bn in first 6 months of 2009, a rise of 17.8% year-on-year​*
BEIJING: Chinas foreign exchange reserves surged to a record $2.13 trillion at the end of June, the central bank said Wednesday, as money poured into the country while the economy strengthened.

The reserves, already the worlds largest, grew by $185.6 billion in the first six months of 2009, a rise of 17.8 percent year-on-year, the bank said in a statement. The figure was the highest reported by the bank. Foreign exchange reserves were $1.95 trillion at the end of the first quarter of 2009.

The nations forex reserves have ballooned in recent years, fuelled by robust foreign investment, a hefty trade surplus and inflows of hot money or short-term speculative funds in search of quick profits. The inflow eased as the economic crisis hit late last year, but the latest figures showed the trend was resuming.

Overall, with Chinas economy recovering and asset prices rising, China is becoming more attractive to foreign investors, which leads to capital inflows, said Su Chang, an economist with Beijing-based consultancy the CEBM Group. Chinas real estate market has rebounded, also attracting overseas investors who are allocating capital (for such investments). The nations foreign exchange reserves rose by $42.1 billion in June alone compared to Mays figures. 

The month-on-month rise was $30.2 billion more than the increase in June last year, according to the central bank. Ting Lu, a Hong Kong-based economist with Merrill Lynch, said the sharp rise was chiefly attributed to the Chinese economy recovering more quickly and maintaining higher growth rates than many in the developed world.

The return of foreign capital is understandable because asset prices, stocks and properties in China have been outperforming most other markets, Ting said. But Su said the spike in capital inflows was not all good news for the government. One of the concerns is that real estate prices may be rising too fast, if the prices rise too fast, it will become a political issue and the central government will face more pressure, Su said.

Other economists also warned of risks. Chinas forex headache has returned, Standard Chartered China economist Stephen Green said in a research note. Hot money... may be back, encouraged by super loose credit and numerous signs of bubbles forming. Chinas trade surplus was down 1.3 percent to $96.9 billion during the first six months of 2009, according to previous government data. And foreign direct investment dropped 17.9 percent to $43 billion over the same period, the commerce ministry said Wednesday.

With the trade surplus and foreign direct investment far lower than the growth in forex reserves, hot money is clearly flowing in to the country. Analysts said this may prompt the government to respond with some form of monetary tightening. China has invested a large part of its vast reserves in US dollar assets, such as safe but low-yielding US Treasury bonds, but amid the financial crisis Beijing has tried to diversify its investments to improve its returns. With the United States and the world economy still reeling from the crisis, China has also called for the creation of a new international reserve currency to replace the dollar. Chinas forex reserves stood at $1.946 trillion at the end of 2008. afp


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## applesauce

the govenment really need to stop buying so much us debt and start spending that money internally, cant support the us forever


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## quriosity

Shanghai Expo is ahead... i will attend for sure...


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## Neo

*Chinas economy grows 7.9% in stunning rebound​*
** GDP grew by 7.1% in the first half of 2009 compared with same period a year earlier
* Industrial output increased by 10.7%, and by 7% for the first half of 2009
* Consumer price index fell 1.7% in June compared with same month a year earlier​*
BEIJING: Chinas economy grew 7.9 percent in the second quarter of 2009, the government said Thursday, in a stunning turnaround for the Asian powerhouse that offered some hope for the rest of the world.

With help from $580 billion in government pump priming, the worlds third biggest economy picked up pace again after the global economic crisis dragged growth down to 6.1 percent in the first quarter. The economy is rebounding and the strength of the recovery is increasing, National Bureau Spokesman Li Xiaochao said at a media briefing to release the data.

Chinas gross domestic product grew by 7.1 percent in the first half of 2009 compared with the same period a year earlier, according to the bureau. This put China back on track to achieve its goal of eight percent growth for the year, despite the financial crisis hitting its crucial export sector particularly hard. Analysts said the rebound in China would offer a boost of confidence for the global economy as it struggles out of the worst economic crisis since the Great Depression of the 1930s. China is the first big country to have made a strong comeback, so its rebound will definitely offer a stabilising signal for the world economy, said He Jun, a Beijing-based analyst with the Anbound Consulting research group.

However, He and other analysts cautioned that immediate and direct benefits would be limited to countries that import heavily into China, chiefly resource-rich exporters and neighbouring nations in Asia. Before the global economic crisis struck, China experienced double-digit annual growth from 2003 to 2007, and again for the first two quarters of last year. To fight the downturn, the government began implementing a four-trillion-yuan ($580 billion) stimulus package from November last year. Li described the impact of the package as remarkable, but he also warned pitfalls lay ahead amid concerns of bubbles in real estate and other key sectors.

There are many difficulties and challenges existing in the current national economic performance. The base for recovery is still weak. The momentum for picking up is unstable, he said. Lis cautious attitude appeared to infect Chinas stock market as shares closed down 0.15 percent on Thursday amid concerns over the economy in the second half year, dealers said. Economists also warned that Chinas rebound was unbalanced, with the export sector still struggling while massive bank lending had fuelled the potential for asset price bubbles and inflation.

Although private sector investment has picked up, growth still relies heavily on the central government?s expansionary policies, said Lu Zhengwei, a Shanghai-based economist with the Industrial Bank. Nevertheless, Lu and other analysts said Chinas economy would likely grow by around 8.0 percent in 2009, in line with the governments target.

The figure is generally seen as the minimum growth needed to create enough jobs and prevent major social unrest in the nation of 1.3 billion people. 

Industrial output: Chinas exports dropped 21.4 percent year-on-year in June, the government said last week, the eighth straight monthly decline. However, industrial output, which illustrates activity in the nations millions of factories and workshops, expanded by 9.1 percent in the second quarter of 2009 from a year earlier, the bureau said. In June, industrial output increased by 10.7 percent, and by seven percent for the first half of 2009. Chinas urban fixed asset investments, a measure of government spending on infrastructure, rose 33.6 percent in the first half of 2009 compared with the same period a year earlier, the statistics bureau said. Investments in urban fixed assets increased by 35.3 percent in June year-on-year, according to the bureau. 

Consumer price index: The consumer price index, the main gauge of inflation, fell 1.7 percent in June compared with the same month a year earlier, a further decline from Mays drop of 1.4 percent, the bureau said. afp


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## oct605032048

China's Internet users top 338 mln by June

China's power generation in July continues to rise


BEIJING, July. 21 (Xinhua) -- China's power generation in the first 10-day period of July rose by 3 percent year on year, continuing the rebound in June, according to the power dispatch center of State Grid Corporation of China (SGCC).

Power consumption and generation resumed growth in June, putting an end to eight consecutive months of decline since last October.

Power consumption in June rose by 4.3 percent year on year, compared with a 2.57-percent fall in May, said China Electricity Council (CEC). 

China's major export base sees signs of recovery 

GUANGZHOU, July 21 (Xinhua) -- Exports by southern China's Guangdong Province, an economic powerhouse and a major export base of the nation, had seen signs of recovery, expecting a year-on-year growth in the fourth quarter, said a local trade official on Tuesday. 
...
Guangdong's external trade amounted to 257.87 billion U.S. dollars from January to June, a decline of 20.7 percent from the same period of last year. The total included 153.42 billion dollars in export, down 18.6 percent, and 104.45 billion dollars in import, down 23.7 percent. 

But he said the province's foreign trade was recovering quarter on quarter, and predicted that in the fourth quarter, the province was expected to post a year-on-year growth in exports.


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## SinoIndusFriendship

Bruce Lee museum in design phase
Hong Kong government gathers items, commissions doc
July 20, 2009

Related: Bruce Lee's home to become a museum

HONG KONG -- The former home of Bruce Lee is now a love motel, renting rooms by the hour. But officials on Monday launched a design competition to turn it into a Hong Kong museum for the kung fu icon.

"I hope I can personally witness and oversee the completion of the Bruce Lee museum in my lifetime," owner Yu Pang-lin, who is in his 80s, said at a press conference marking the 36th anniversary of Lee's death.


Lee's fans have been calling for an official monument for their hero in his hometown for years.

Lee became a chest-thumping source of Chinese pride by portraying characters that defended the Chinese and the working class from oppressors in films like "Return of the Dragon." He died in Hong Kong in 1973 at age 32 from swelling of the brain.

Yu said he wants the museum to include a memorial hall, a library, a kung fu studio and a film archive.

Lee's daughter, Shannon Lee, and a panel of architects and town planners will judge the design competition, and the winners will be announced in November or December, the Hong Kong government said in a statement.

Yu has offered to donate Lee's home and put up the HK$100,000 ($13,000) in prize money, but it is unclear how the museum itself will be funded.

Meanwhile, the Hong Kong government has started collecting Lee's personal items and commissioned a documentary about the late actor and one about the construction of the museum, Secretary for Commerce and Economic Development Rita Lau said at Monday's press conference.

Officials showed an eight-minute trailer of the biography produced by veteran Hong Kong director Ng See-yuen. It included interviews with "Mission: Impossible II" director John Woo; Lee's frequent collaborator producer, Raymond Chow; Ip Chun, the eldest son of his kung fu teacher, Ip Man; and actress Betty Ting Pei -- in whose home Lee died -- as well as footage of Lee's body in an open casket at his funeral.



Bruce Lee museum, biopic unveiled
J.A. Media plans trilogy on kung fu master's life
By CLIFFORD COONAN


HONG KONG -- The family of martial arts king Bruce Lee is working with Chinas J.A. Media Group to make a three-part biopic about Hong Kongs most famous native son, who died 36 years ago this week.

Bruce Lee, which will start shooting in October, will be produced by Li Chen and directed by Manfred Wong. Tony Leung Ka-fai will play Lees father, but no other cast has been set.

Initial investment in the first movie will be 50 million yuan ($7.3 million) and it is scheduled for release on Nov. 27, 2010, the 70th anniversary of Lees birth.

Lees brother, Robert, and sister, Phoebe, appeared at a press confab with J.A. Media for the project in Beijing on Monday.

Robert Lee said he wanted to give an authoritative account of his brothers life.

Weve read many books and seen many movies about Bruce Lee, but there are many inaccuracies in them, he said.

The Hong Kong government is also memorializing Lee, whose success was crucial in bringing the local biz to a worldwide aud, by launching a design competition to build a museum for the kung fu master.

Lees daughter, Shannon Lee, and a panel of architects and town planners will judge the competition, and the winners will be announced in November or December. The museum is expected to include a kung fu studio, a film archive and a library.

The 5,600-square-foot town house was donated to the Kowloon regional government by real estate tycoon Yu Panglin, who has put up $13,000 in prize money for the design competition.

Rita Lau, Hong Kongs secretary for commerce and economic development, said the government has also commissioned a documentary about the building of the museum and a biography of Lee.

Lee was born in November 1940 in San Francisco and raised in Hong Kong, before his father sent him back to the States after a brawl as a youngster. As well as his martial prowess, he was also a ballroom dancing champion.

Lee made 46 kung fu movies, and his popularity around the world paved the way for stars like Jackie Chan and inspired filmmakers like Quentin Tarantino.

He was just 32 when he died of a swelling in the brain in 1973, while starring in and directing the movie Game of Death in Hong Kong, less than a month after the release of Enter the Dragon, the movie that turned him into an international star.


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## oct605032048

China heavy-duty equipment manufacturer signs biggest-ever deal with Spanish firm 
BEIJING, July 21 (Xinhua) -- Shanghai Zhenhua Heavy Industry (ZPMC), the world's largest manufacturer of heavy-duty equipment, inked a deal worth 2.2 billion U.S. dollars with Spanish marine oil and gas explorer ADHK for supply of offshore engineering products on Monday.

The transaction, including 10 offshore jack-up drilling platforms, seven land drilling rigs, and two float cranes, was the largest sale contract of this kind to date in the country.

It was also the state-owned company's latest move to step up its momentum in the marine engineering business, said Tuesday's China Daily.

The company's shares resumed trading on Tuesday after a four-day suspension before the massive contract was clinched.

ZPMC's container cranes have a global market share of nearly 78percent. More than 72 percent of the company's total revenue was generated from this sector during 2008.

However, the company posted 18 percent year-on-year decline in net profit during the first quarter of this year due to drastic export slips amid the global downturn.

Analysts projected the company's growth in its mainstay business to reach its ceiling within two to three years, after a compound annual growth rate of 20 percent in yearly sales from 2004 to 2008.

The market for heavy-duty equipment particularly for offshore oil and gas extraction has been emerging as a new profit engine for the company.

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## BanglaBhoot

*Investors In China Fuel Fast Expansion*

Indicators Suggest Less Rosy Picture

By Ariana Eunjung Cha
Washington Post Foreign Service
Wednesday, July 29, 2009 



HONG KONG, July 28 -- China's first initial public offering in nearly a year rose so high, so fast on Monday that regulators were forced to halt trading twice. The Hong Kong stock exchange's Hang Seng Index this week soared to double its low point last fall. And new lending on the mainland tripled to more than $1 trillion in the first six months of 2009. 

While most other countries around the world struggle to stabilize their economies, China's appears to be rocketing back. 

China's leaders say that the economy may have bottomed out in the second quarter of this year. The National Bureau of Statistics in China reported that gross domestic product, or the value of goods and services it produced, was up 7.9 percent in that period -- surprising analysts who had predicted growth rates to skid to as low as 4 percent. At this pace, China is on track to overtake Japan as the world's second-largest economy as soon as year's end. 

But some secondary indicators contradict the picture of a miraculous comeback for China, economic analysts say. 

Income tax revenue is plummeting, for instance. Profits of state-controlled companies are down nearly a quarter for the first half of the year. Wages are dropping in some areas. And credit card balances are rising. 

In Hong Kong, the unemployment rate has remained high even as real estate prices have soared to the point where buying a home has become unaffordable for some middle-class earners. Approved loans jumped nearly 37 percent in June to $4.95 billion, a level higher than just before the Asian financial crisis in 1997. 

There's a growing worry that the weaknesses in China's economy and Hong Kong's, which has become increasingly entwined with the mainland's, are similar to the problems the United States faced as its own crisis began: Consumers are overleveraged and banks are taking on too much risk, creating the potential for bubbles in stock and property markets. 

"It is true the Chinese economy is recovering faster than in other parts of the world. But soaring capital prices are bringing unstable factors," said Dong Tao, chief regional economist for Credit Suisse. 

China's central bank on Tuesday warned that inflation might rebound in the second half of the year. An increase in the price of food and consumer goods at this time could pose political challenges for the Communist Party, which has struggled to contain outbreaks of unrest driven by unemployment in its urban centers over the past year. 

A cornerstone of China's $586 billion stimulus package that was rolled out last fall was pumping an eye-popping amount of government money into the economy. The value of loans China gave out in the first half of this year was similar to its gross domestic product during the same period. This type of "credit expansion hasn't been seen in the past 20 years," said Wendy M. Liu, head of China Research for ABN Amro. 

Tao, a Hong Kong-based analyst for Credit Suisse, said that there's so much money that "enterprises and companies have no other places to invest it in the real economy. 

"So they invest the money in buying lands and capital price soared. The credit is out of control now," he said. 

The frenzy could be seen in Monday's initial public offering of Sichuan Expressway, a toll-road company, on the Shanghai Stock Exchange. It was offered at 3.6 yuan, opened at about 7.6 yuan, hit 15.25 yuan before closing at 10.9 yuan -- analysts had estimated shares to be worth no more than 6 yuan. 

China's domestic stock markets are driven by individuals rather than the institutional investors who dominate other larger stock exchanges around the world and speculation has created a dangerous boom-and-bust cycle in the past. 

Stock analysts will be watching the Wednesday debut of China State Construction Engineering closely to see whether it duplicates Sichuan Expressway's performance. China State Construction, China's largest housing contractor, is the world's biggest initial public offering this year. It has raised $7.35 billion. 

"The massive fiscal stimulus package has shown some early signs of success, and this is why investors are now returning to the stock market . . . The recent momentum is certainly unsustainable," said Sherman Chan, an economist at Moody's Economy.com. 

Vincent Chan, head of China research for Credit Suisse, was more blunt. Chan said that right now he thinks most stocks are only slightly overvalued in the mainland and in Hong Kong, but that "if this boom continues for some time it will reach 'crazy' status.' " 

Investors In China Fuel Fast Expansion


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## aimarraul

Chinese first large dia seamless pipe plant starts trial run
Saturday, 18 Jul 2009
China North Industries Group Corporation announced that, under the help of Tsinghua University etc, it spent three years working out 36,000 tonne ferrous metal extrusion vertical press, the largest one in the world.

As per release, China made 36000 tonne ferrous metal extrusion vertical press has finished the first trial production which rolled out the first batch of 700*200 seamless steel pipes indicating great breakthroughs in manufacturing history all over the world.

Mr Zhang Guoqing GM of China North Industries Group Corporation said the project will be carried out into two stages to realize 50,000 tons and 125,000 tonnes of the production goals respectively in the days to come.

In past, China had to import a great number of large caliber seamless steel pipes in higher prices due to the lower production level. But in recent several years, with the supports of NDRC and Ministry of Finance etc, China North Industries Group Corporation has jointly cooperated with some high technology and research institutions to work out the world largest 36,000 tonne ferrous extrusion vertical press.


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## SinoIndusFriendship

aimarraul said:


> Chinese first large dia seamless pipe plant starts trial run
> Saturday, 18 Jul 2009
> China North Industries Group Corporation announced that, under the help of Tsinghua University etc, it spent three years working out 36,000 tonne ferrous metal extrusion vertical press, the largest one in the world.
> 
> As per release, China made 36000 tonne ferrous metal extrusion vertical press has finished the first trial production which rolled out the first batch of 700*200 seamless steel pipes indicating great breakthroughs in manufacturing history all over the world.
> 
> Mr Zhang Guoqing GM of China North Industries Group Corporation said the project will be carried out into two stages to realize 50,000 tons and 125,000 tonnes of the production goals respectively in the days to come.
> 
> In past, China had to import a great number of large caliber seamless steel pipes in higher prices due to the lower production level. But in recent several years, with the supports of NDRC and Ministry of Finance etc, China North Industries Group Corporation has jointly cooperated with some high technology and research institutions to work out the world largest 36,000 tonne ferrous extrusion vertical press.



Fascinating news. If each person works towards common development and prosperity, instead of wars we'll all be better off.


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## SinoIndusFriendship

China-ASEAN free trade area to be completed on schedule


The China-ASEAN (Association of Southeast Asian Nations) Free Trade Area would be completely operative in 2010 as scheduled, a senior official from the Ministry of Commerce said Thursday.

"The free trade zone will cover a population of 1.9 billion and involve about 6 trillion U.S. dollars in gross domestic product," Lu Kejian, director of the ministry's Department of Asian Affairs, said at the opening of the fourth Pan Beibu Gulf Economic Cooperation Forum in Nanning, capital of Guangxi Zhuang Autonomous Region in southern China.

The free trade area project was first brought up in 2002&#65292;and completion set down for next year.

Ma Biao, chairman of the Guangxi regional government, said at the two-day forum that the free trade area would be the world's largest by population.

Du Ying, vice minister of the National Development and Reform Commission, said strengthening economic cooperation in the Pan-Beibu Gulf region would boost its economic growth and competitive edge.

He called for greater efforts to increase mutual investment, improve transportation links and step up cooperation in petrochemical, steel and electronics sectors.

ASEAN is China's fourth largest trade partner after the European Union, the United States and Japan. In 2008, bilateral trade between China and ASEAN totaled 231.1 billion U.S. dollars, up 14 percent from 2007.

But the first half of this year witnessed a 24 percent drop from the first half of 2008 to 88.1 billion U.S. dollars because of the global economic downturn.

In April this year, the Chinese government proposed a fund of 10 billion U.S. dollars and a loan of 15 billion U.S. dollars to build infrastructure in the region over the next three to five years.

(Xinhua News Agency August 6, 2009)


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## aimarraul

China cuts US Treasury holdings in June
(chinadaily.com.cn)
Updated: 2009-08-18 10:45

NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.

China cut its net holdings by 3.1 percent to $776.4 billion in June from $801.5 billion in May, the report says. This is also the first large-scale reduction of US Treasury debt by China so far this year.

However, its June holdings were still larger than April's $763.5 billion and $767.9 billion in March, according to the statistics of the Treasury Department.

Reuters data show the drop in China's treasury holdings in June was the biggest percentage reduction since a 4.2 percent cut in October 2000.

On the other hand, Japan, the second-largest holder of US Treasury securities, increased its holdings to $711.8 billion in June from $677.2 billion in May.

The United Kingdom, the third largest holder, also increased its holdings to $214 billion in June from $163.8 billion, a surge of 30.6 percent.

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## white_pawn

*CIC may invest in US mortgages​*Updated: 2009-08-18 08:04

China's $200-billion sovereign wealth fund is set to invest up to $2 billion in US mortgages as it eyes a property market recovery, two people with direct knowledge of the matter said yesterday.

China Investment Corp (CIC) plans to invest soon in US taxpayer subsidized investment funds of toxic mortgage-backed securities, which it sees as a safer bet than buying into the $700-billion Troubled Asset Relief Program (TARP), also backed by the US Treasury.

Under the Public-Private Investment Plan (PPIP) launched earlier this year, the US government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks.

Compared with TARP, the new and smaller PPIP program focuses on safer toxic securities, which must have so-called "Triple-A" ratings by at least two agencies, and are debts guaranteed by the US Federal Deposit Insurance Corporation (FDIC), sources explained.

"In this case, CIC feels safer to invest and the safer it feels, the more confident it will naturally feel about its investments, as well as in the prospects for the US economy," said one of the sources.

"The Chinese government is always trying to seek a more ideal way to invest in US assets rather than purely buying US government bonds all the time," said the source.

"Some might think $2 billion for a $200-billion sovereign fund is not big money, but it can be regarded as an innovative and positive option for Chinese investment."

CIC is in talks with nine designated PPIP managers, which include Alliance Bernstein LP, with sub-advisers Greenfield Partners LLC and Rialto Capital Management LLC; Angelo Gordon and Co LP, with GE Capital Real Estate; BlackRock Inc; Invesco Ltd; Marathon Asset Management LP; Oaktree Capital Management LP; RLJ Western Asset Management LP; Trust Company of the West; and Wellington Management Co LLP, said the sources who did not want to be identified.

CIC is expected to decide this month which of the nine designated PPIP managers it will mandate for its investments in financial products, said the sources.

The fund is likely to select several, not all, of the firms, said the sources, CIC cannot invest directly in the PPIP.


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## white_pawn

*Chinese banks pip foreign rivals in first-half lending​*
While Chinese banks are seeing a credit boom due to the nation's huge stimulus package, their foreign peers have not been so lucky and might just be facing their most difficult period as far as business expansion in China is concerned.

According to the central bank's latest monetary policy report, in the first half of 2009, lending by foreign financial institutions in China dropped by 32.7 billion yuan. This is in stark contrast to the recording-setting 7.37 trillion yuan in new loans that Chinese banks gave out in the same period.

Analysts said foreign banks in China, restrained by their global development strategy and disadvantages in competing with Chinese banks for funding major government-led projects, could see a significant decline in business revenue this year.

Foreign banks have rushed to extend their presence in the Chinese market since the nation fully opened up its banking industry in December 2006, but the unexpected global financial crisis, which badly hurt the banks' parent companies at home, has curbed their aggressive expansion spree in China.

"The main clients of foreign banks in China are foreign companies, whose demand for loans has shrunk significantly in the current economic downturn," Lian Ping, chief economist of Bank of Communications, said.

"On the other hand, major Chinese banks gained an upper hand in funding State-backed infrastructure projects, which are usually less risky than lending to companies and are not easily accessed by foreign lenders," he said.

State-controlled banks, main lenders to the government-led 4-trillion yuan stimulus package, advanced 3.26 trillion yuan in new loans in the first half of this year, accounting for nearly half of the nation's entire lending in the period, while foreign banks are commonly believed to be at a disadvantage in making such lending because they lack government connections.

"Chinese banks have natural advantages in that there is a strong government inference that State companies should park their deposits and seek loans from State banks," an industry source at a Shanghai-based foreign bank said.

After experiencing galloping growth in 2007, foreign banks saw their business expansion in China slowing significantly last year as a result of the global financial turmoil, with their total assets growing by just 13.2 percent, down 35.3 percentage points from a year earlier. Analysts said the situation could be even tougher this year.

"Some foreign banks in China are likely to lose customers to their Chinese rivals, as they could not give out loans at favorable interest rates due to tightened liquidity and prudent lending practice," Li Mingxu, an analyst with Anbound Consulting Firm, said.

"Besides the lending front, some companies have also started to shift their deposits to Chinese banks and more high-end individual customers are turning to Chinese banks for wealth management," Li said, adding such customer drift could be a short term phenomenon.

An earlier central bank report revealed that late last year, when the global financial crisis was in full swing, it was very difficult for foreign banks in China to get funds on the inter-bank market due to market concerns about the financial situation of their parent companies.

Major locally incorporated foreign banks HSBC (China) and Citibank (China) have declined to comment on their business operations this year, while Standard Chartered Bank (China) said it had not seen a major dent in its credit volume this year.

In contrast, analysts believed that Chinese banks could achieve decent growth for the whole of this year thanks to the lending spree in the first half, but remained vigilant on a possible bad loan surge next year.

Chinese banks pip foreign rivals in first-half lending

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## white_pawn

*New program will lower drug costs​*
Patients at public hospitals will save more money beginning Sept 25, when the government starts to heavily subsidize a list of common medicines.

China's first essential medicine list is part of the country's ongoing medical reform, which aims to assure all Chinese have basic healthcare services.

Most of the 307 drugs on the list are prescription-only drugs, 200 of which are western medicines. The rest are traditional Chinese medicines, which have long been used in China and are proven to be safe, effective and reasonably priced, experts say.

"The inclusion of essential medicines in the overall reform signals the government's intent to ensure high-quality care that is affordable for the whole population," said Vivian Tan, press officer of the Beijing office of the World Health Organization.


The list is a primary step in establishing a drug supply and usage institution that will secure drug safety and lower the general drug costs.

The institution will cover 30 percent of the cost of China's public medical facilities, particularly the grassroots ones, by 2011 and all of them by 2020.

"For patients, the national essential drug institution will help lower their drug expenses substantially," Hu Shanlian, public health expert with the Shanghai-based Fudan University, told China Daily yesterday.

Under the institution, different government agencies will work together to ensure ample supply, safety and quality of the listed drugs for the treatment of the most common diseases, and promote their uses at public hospitals, Hu said.

Previously, some cheap but effective drugs were not available largely due to pharmaceutical companies not producing them. Instead, the companies focused on the manufacture of drugs that were more profitable, reports said. Therefore, patients had no choice but to pay more for drugs.

That in turn passed on the cost to the government, which aims to cover more than 90 percent of the entire population by 2011 through the health reform.

Currently, the annual drug cost of China is approximately 500 billion yuan ($73 billion), accounting for more than 45 percent of the country's entire healthcare expenditures, official statistics show.

"It's much higher than the international average of 20 to 30 percent," Hu said.

The usage of the more common, essential drugs at health facilities, which now takes up 25 percent of the total drug use, will be widened under the institution and thus lower the total drug costs, he said.

Listed drugs will be sold with zero cost added at the grassroots health facilities in both rural and urban areas.

"More patients will go to grassroots health facilities at community level or village level for cheaper drugs, which will help optimize limited medical resources," Hu said.

Some Chinese welcome the new initiative.

"I don't understand why drugs for a common cold costs me nearly 1,000 yuan," said Yuan Kang in Beijing.

"I hope with the new system I can have cheap and good medicines," the 26-year-old office clerk said.

Zhao Mingwu, who heads the internal medicine department with the leading Peking University Third Hospital in Beijing, also welcomed the essential drug institution.

The system will ensure drug supply for health facilities, particularly grassroots ones, and lower medicine costs substantially for patients, he said.

The list will be updated every three years to better meet the demands of both doctors and patients.

New program will lower drug costs

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## white_pawn

*CNNC gets nod for Tianwan phase III​*By Wan Zhihong (China Daily)
Updated: 2009-08-20 08:05

China National Nuclear Corp (CNNC), the country's largest nuclear power plants operator, plans to start building the third phase of its Tianwan nuclear power plant in Jiangsu province from October next year.
The two reactors (number 5 and 6), of 1,000-mW capacity each, have got preliminary approval from the National Development and Reform Commission (NDRC), the company said in a statement on its website.

Construction of the number 5 reactor is scheduled to begin in October 2010, said the statement.

It did not say which technology the two reactors would use.

The Tianwan power plant is designed to have eight reactors, and it already operates two 1,060 mW reactors.

Once all eight reactors come into commercial use, the site will have a combined capacity of over 8,000 mW, by when it would become one of the nation's primary power bases, a CNNC source who declined to be named told China Daily yesterday.

The Tianwan nuclear power base will develop into China's third nuclear generating complex, following those built in Qinshan in Zhejiang and Daya Bay in Guangdong, he said.

China and Russia last year signed an agreement for the second phase of the Tianwan project, under which Russia will supply two 1,060-mW reactors using Russian technology.

Currently, the two parties are still negotiating to finalize the agreement, CNNC said in its statement.

Analysts said the expansion of the Tianwan plant would help meet Jiangsu's voracious appetite for power. The province is one of the fastest growing and most prosperous regions in China.

"The project has also changed the overall energy structure in Jiangsu. Before Tianwan, the province had no nuclear power, which is a clean source of power," Jiang Guoyuan, an executive with CNNC had told China Daily earlier.

Jiangsu is now shuttering many small highly-polluting coal-fired power plants and has plans to further develop clean energy sources, including nuclear power, he said.

Located in Lianyungang in Jiangsu, construction of the Tianwan nuclear power project started in 1999. The first phase of the project includes two 1,060 mW reactors using technology from Russia.

With a total investment of nearly 30 billion yuan, Tianwan phase one was then the largest joint project ever undertaken between China and Russia.

The Tianwan nuclear power plant still uses second-generation nuclear power technology. China is now focusing on developing the third generation technology.

Compared with reactors using first or second generation technology, reactors with third generation technology are simpler in design, thus reducing capital costs. They are also more fuel-efficient and safer.

The country has set up the State Nuclear Power Technology Corp Ltd, which is mainly responsible for domestic development of nuclear power using advanced third generation technology from overseas.

China has signed a deal with a consortium led by the US-based Westinghouse Electric Co to build four third-generation nuclear power reactors. The country will use Westinghouse's AP1000 technology to build two reactors in Sanmen, Zhejiang province, and in Haiyang, Shandong province.

China has also signed an 8-billion-euro agreement with the French nuclear company Areva to supply technology for two other third generation nuclear reactors. Areva will supply two reactors for a project in Taishan in Guangdong.

According to the NDRC, China's nuclear power industry has seen accelerated development in recent years. In 2005, China had planned to increase its nuclear power capacity to 40 gW by 2020, when it would account for 4 percent of the nation's total power capacity.

NDRC has readjusted its earlier goal in order to coordinate with the boom in industrial development, by increasing it to some 5 percent of the total power capacity in 2020.

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## white_pawn

*Bank of Communications H1 profit beats estimates(Xinhua)​*Updated: 2009-08-20 09:53

Bank of Communications, one of the largest mainland-based commercial lenders, on Wednesday reported a net profit of 15.6 billion yuan ($2.3 billion) for the six months ended June 30, up 0.3 percent.

This was better than the market estimates of declines, most of which were less than 1 percent.

The company declared an interim dividend of 0.1 yuan.

The net interest income totaled 29.8 billion yuan, representing a decline of 9.78 percent from the same period last year. But cumulative realized net fee and commission income rose 17.69 percent to 5.5 billion yuan, accounting for 14.76 percent of net operating income.

The company said it "moderately increased its loans disbursements while keeping risks within acceptable levels in support of the country's investment promotion policy," with loans increasing 30.15 percent, or 400.6 billion yuan in the first half to reach 1,729.2 billion yuan.

Net interest margin decreased by 5 basis points to 2.21 percent from the end of the first quarter, but net interest income began to increase compared with the first quarter after reporting two quarters of quarter-on-quarter declines.

This "signaled an upturn in the bank's net interest income," the report said.

The bank's impaired loans ratio decreased by 0.41 percent to 1.51 percent from the beginning of the year and provision coverage of impaired loans was 123 percent.

The capital adequacy ratio declined slightly from beginning of the year to 12.57 percent, while core capital adequacy ratio declined to 8.81 percent.

The company said it expected a period of stability for the domestic economy in the second quarter, but nevertheless added that there remained uncertainties head. It said it would actively adapt to macroeconomic changes and leverage on the opportunities arising from the Shanghai World Expo and the role of Shanghai as a key center.

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## aimarraul

*China, Australia ink $41B gas deal, biggest ever*
(Agencies)
Updated: 2009-08-18 19:59






PERTH/BEIJING: Australia and China struck their biggest trade deal ever on Tuesday as the world's two most valuable listed oil companies, Exxon Mobil and PetroChina, agreed a $41 billion liquefied natural gas deal.

"It's a statement about the nature of our two economies and the fact that Australia is important to China, just like China is important to Australia," Australian Resources Minister Martin Ferguson told Reuters in Beijing.

The gas sale agreement between Exxon and PetroChina comes just weeks after Exxon inked a A$10 billion Gorgon LNG sales deal with India's Petronet, which marked Australia's first ever LNG contract with India.


China, Australia ink $41B gas deal, biggest ever CNOOC strikes Qatar LNG deal
The deals, along with regulatory approvals process from the federal government now nearing completion, means that the Gorgon project partners could approve the massive LNG project, located off Western Australia, by early as next month.

The latest Gorgon gas sale would bring PetroChina's total LNG purchase from the project to a total of 3.25 million tonnes per annum (mtpa) for 20 years -- making it the largest buyer of gas from the project.

Despite the volumes it is buying, the fact that PetroChina has not secured a minority stake in the project is an indication that demand for long-term LNG supplies is still buoyant despite the current economic downturn.

With a long list of around a dozen proposed LNG projects in the Asia-Pacific region, buyers are also eager to lock in supplies as quickly as possible from projects that are most likely to be developed.

In the deal signed on Tuesday, PetroChina will buy 2.25 million tonnes per annum (mtpa) of gas from the Gorgon LNG project for a period of 20 years, Ferguson said in a statement.

The sale is Australia's most valuable trade deal ever with China, Australia said, adding that the agreement was a reflection of the strength of Australia's continuing trade and investment relationship with China.

The massive Gorgon LNG project, operated by Chevron Corp which owns a 50 percent stake, is located off western Australia and has a proposed annual output of 15 mtpa. Exxon and Royal Dutch Shell each own a 25 percent stake in the project.

Chevron and its partners may give final investment approval for the much-delayed Gorgon project as early as next month, with the project expected to cost about A$50 billion, according to Western Australia Premier Colin Barnett.


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## aimarraul

*China outstrips US as Japan's No.1 trade partner*
(Xinhua)
Updated: 2009-08-19 21:37

TOKYO: China becomes Japan's biggest trading partner in both exports and imports in the first six months this year, as the global economic downturn affected Japan-US trade more seriously, the Japan External Trade Organization (JETRO) said Wednesday.

Exports to China fell 25.3 percent from a year earlier to $46.5 billion and imports from the country dropped 17.8 percent to $56.2 billion, however, trading with other countries and regions including the United States showed larger declines, JETRO said in its report.

It is the first time exports to China surpassed those to the United States.

In the January-June period, the trade with China accounted for 20.4 percent of the total trade volume of Japan, while that with the United States accounted for 13.7 percent and that with South Korea 6.1 percent.

JETRO also projected a decline of Sino-Japanese trade for the whole year of 2009, the first yearly contraction since 1998 Asian financial crisis.

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## oct605032048

Beijing steel giant says annual output to reach 30 mln tonnes
English_Xinhua 2009-09-02 17:04:40 Print

BEIJING, Sept. 2 (Xinhua) -- Shougang Iron and Steel Group(8th largest iron producer in china) expects its annual steel output to reach 30 million tonnes by 2012,two years after its Beijing facilities are to be shut down, the group's chairman said Wednesday.

Shougang, meaning "Capital Steel", was Beijing's biggest polluter before it began cutting output at its Beijing plants for last year's Olympics. It is now moving production to a 10-million-tonne, state-of-the-art mill on the nearby coast of Hebei Province.

The 21-square-kilometer new plant in Caofeidian, an islet 220 km east of Beijing, will replace Shougang's old facilities in Beijing next year, to become the country's largest steel production base.

"The new plant will produce 9.7 million tonnes by the end of next year," said Chairman Zhu Jimin at a Beijing assembly commemorating the group's 90th founding anniversary.

He said the group would further expand production by launching new projects as well as merging and acquiring smaller plants in different provinces.

In its latest expansion plan, Shougang last month acquired 90 percent of the equities of Changzhi Iron & Steel Co., Ltd., a 3.6-million-tonne plant in the northern Shanxi Province.

"By 2012, we'll be producing 30 million tonnes of steel a year," said Zhu.

Meanwhile, the Beijing factory site will become a development zone for a wide range of industries including logistic services, real estate development and auto spares production, which will yield an additional 100 billion yuan (14.7 billion U.S. dollars) a year, he said.

Founded in 1919, Shougang is widely considered the flagship of China's heavy industry. With its production base just 17 km west of Tiananmen Square in central Beijing, however, it has long been blamed for causing heavy pollution as the plant's chimneys belch out thick clouds of smoke.

Its Beijing plant produced more than 12 million tonnes of steel annually before it was forced to cut output and pollution in 2007.

Last year, the plant said it cut output and pollution by 70 percent to ensure better air quality for the Beijing Olympics.


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## oct605032048

China tops world in meat production
English_Xinhua 2009-09-03 21:02:00 Print

QINGDAO, Sept. 3 (Xinhua) -- China has become the world's leading meat producer, with 29 percent of the global total output last year, an industry official said Thursday.

Last year, China's meat production topped 72.69 million tonnes, up 6 percent from the previous year, Deng Fujiang, vice president of the China Meat Association, told the World Pork Conference which opened Thursday morning in eastern China's coastal city of Qingdao.

Of the total, 63.5 percent was pork, he said, adding nearly half of the world's pork last year had been produced in China.

China is a major consumer of meat products as well. It imported1.84 million tonnes but exported only 742,000 tonnes last year, said Deng.

Patrick J. Moore, president of the International Meat Secretariat, said he expected increasing worldwide meat consumption and international trade despite the impact of the global economic downturn and the A/H1N1 flu epidemic.

Global meat consumption is projected to expand by almost 2 percent annually from now to 2018 to more than 320 million tones, 37.5 percent of which would be pig meat, he said, citing an OECD (Organization for Economic Cooperation and Development)-FAO (UN Food and Agriculture Organization) Agricultural Outlook report issued in June.

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## oct605032048

China banking on IMF's bond idea
By Fu Jing (China Daily)
Updated: 2009-09-04 07:55
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China will be expecting more input during the restructuring of the international financial system after agreeing on Wednesday to buy the first $50 billion of the International Monetary Fund (IMF)'s new bonds.

The purchase, made three weeks before the Group of 20 Summit that will be held in Pittsburgh, is being seen as an example to the rest of the world of China's commitment.

China banking on IMF's bond idea

Chinese think-tank economists said the purchase symbolized the country's "very first step" toward increasing its say in reshaping global financial institutions amid the financial crisis.

The bonds also allow China to diversify its massive holdings of foreign reserves, giving it an alternative to purchasing US State bonds. And it will give the IMF the resources it needs to help other countries battle through the global crisis.

IMF Managing Director Dominique Strauss-Kahn and Deputy Governor of the People's Bank of China Yi Gang signed the agreement at the IMF headquarters in Washington.

Under the deal, the Chinese central bank "would purchase up to SDR 32 billion (around US$50 billion) in IMF notes".

SDR (Special Drawing Right) is the name given to an interest-bearing IMF asset based on a basket of international currencies - the dollar, yen, euro and pound. The rate is calculated daily. IMF members can convert SDRs into other currencies.

The IMF executive board approved the plan to issue the notes to governments and central banks in July.

Russia and Brazil have both said they intend to buy $10 billion IMF bonds but, so far, their governments have not entered into an agreement.

Zhang Xiaojing, senior economist with the Chinese Academy of Social Sciences, said he expects more voting rights will be allocated to China during the next round of IMF reform following the country's commitment to the institution.

Developed economies currently dominate the international institution. The voting rights of the so-called BRIC countries - Brazil, Russia, India and China - amounts to 9.62 percent of the IMF total, despite the fact that they are some of the world's largest economies and most populous countries. The US, meanwhile, holds nearly 17 percent of the IMF's voting rights.

"The emerging economies are expecting more say in global governance, which will represent their growing economic influence," said Zhang. "The developed bloc nodded their heads but said, you (the emerging economies) should contribute something first."

Now that the world's economy has pulled out of its free-fall, Zhang said the IMF is in dire need of resources to help it support member nations as they battle to rebound from the global financial and economic crises.

AFP reported that any bid by China to expand its formal influence at the IMF is likely to encounter resistance, especially from Europe, which has traditionally provided the fund's managing director.

China's deal with IMF came within hours of an agreement by European Union finance ministers to raise the 27-nation bloc's contribution to the IMF to 125 billion euros ($178 billion), from 75 billion euros.

Yu Yongding, a renowned economist from the same academy as Zhang, said China could have contributed more to increase the institution's resources to tackle the financial crisis.

"However, to obtain the support of the public in China, I shall emphasize more fundamental reforms of the IMF, such as to increase China's voting rights are indispensable," Yu said.

Li Jianwei, senior researcher on macroeconomics with the Development Research Center of the State Council, a powerful think-tank for the central government, said China's purchase was largely aimed at finding new ways to invest its $2.1 trillion in foreign reserves.

"The bond purchase is diversifying China's investment opportunities for colossal foreign reserves," said Li. "The risk of the US dollar depreciating is high and we should think about the danger ahead."

The IMF said the agreement offers China a safe investment instrument while boosting the fund's potential to help its members - particularly developing and emerging countries.

But Zhang Xiaojing added: "We need to assess the safety of the investment because the world's recovery is still sluggish and financial systems remain fragile in many developed countries."

---------- Post added at 03:40 PM ---------- Previous post was at 03:39 PM ----------

Google's Greater China chief to step down
(Xinhua)
Updated: 2009-09-04 16:42
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Google's president of Greater China Kai-fu Lee wrote in his blog Friday that his next step is to create a "technology miracle" with young Chinese after he leaves the company in mid-September.

Google China said in a statement Friday that Lee is to step down from his post in mid-September and start his own business in Beijing.

Lee's engineering responsibilities will be taken over by Boon-Lock Yeo, director of the company's Shanghai engineering office. Vice president John Liu, who currently heads Google's Greater China sales business, will take on Lee's business and operational roles.

Shortly after the company announced his resignation, Lee explained in his blog on sina.com that he left to make up for a regret of his life.

"I have no regret with Google now, but I have a regret with my life that needs to be made up for," Lee wrote. "I want to pass on my experiences in technology and business management to the young Chinese.

"My next step is to create a technology miracle with the youths in China," he wrote. "I want to use my initiatives to land a job that can control the whole picture."

Lee left Microsoft to join Google in 2004 and led the company's expansion in China.

He had also recruited many outstanding engineers for Google, Eustace said.

Lee was born in Taiwan in 1961. He also worked for Apple Inc before joining Microsoft.

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## Omar1984

*Urumqi Trade Fair opens ​* 
URUMQI, Sep. 1 (Xinhua) -- The 18th Urumqi Trade Fair, China's only business event targeting central, west and south Asia, opened Tuesday, nearly two months after a riot in the city. 

The trade fair has attracted more than 500 overseas businessmen from 29 countries and regions, including Russia, Kazakhstan and Uzbekistan. It also attracted many business people from 21 inland provinces and municipalities. 

The trade fair, in the capital city of northwest China's Xinjiang Uygur Autonomous Region, covers an area of 35,000 square meters and has more than 2,000 exhibition booths, including a "Hong Kong Hall" and a "Pakistan Hall". 

The exhibition booths were sold out before the fair began, and is proof that the riot did not change Xinjiang's geographical advantage, said Nur Bekri, the regional government chairman. 

The riot on July 5 left 197 people dead and more than 1,600 injured. 

The annual trade fair first started in 1992. The total value of contracts signed with overseas businessmen at the fair in the past 17 years has reached 31.7 billion U.S. dollars. 

The fair will end on Saturday.

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## oct605032048

HSBC starts yuan cross-border trade settlement service
(China Daily)
Updated: 2009-09-05 11:07
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HSBC China launched its renminbi cross-border trade settlement services Friday in Shanghai, and Shenzhen, Guangzhou and Dongguan of south China's Guangdong province.

The Bank of China, China's largest foreign exchange bank, transacted the country's first cross-border yuan trade settlement deal on July 6.

China's State Council, or Cabinet, announced in April a pilot program to allow exporters and importers in Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan to settle cross-border trade deals in renminbi, or yuan.

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## Speeder

*China Becomes World's Largest Exporter *


Overtakes Germany for first time in first half of 2009 
For the first time, China overtook Germany as the world's biggest exporter during the first half of 2009, the World Trade Organization reported Tuesday. 

From January through June 2009, China's total export volume amounted to $521.7 billion, slightly exceeding Germany's exports, which totaled $521.6 billion. 

Germany has long been the biggest exporter of goods and services but has been closely followed by China in recent years. In 2007, Germany exported $1.32 trillion of goods over the full year while China's exports reached $1.22 trillion, according to the WTO. However, between 2000 and 2007 China's exports grew by an average annual rate of 25 percent, while Germany's exports grew by only 13 percent a year.

A WTO spokesperson said China and Germany remain very close in the competition, and it is too soon to say if China will overtake Germany as the world's largest goods exporter for all of 2009. The final results will depend on several unknown factors, including foreign exchange rates and the pace of economic recovery in the various markets that buy exports from China and Germany in coming months.

China Becomes World's Largest Exporter | Journal of Commerce

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## SinoIndusFriendship

Speeder said:


> *China Becomes World's Largest Exporter *
> 
> 
> Overtakes Germany for first time in first half of 2009
> For the first time, China overtook Germany as the world's biggest exporter during the first half of 2009, the World Trade Organization reported Tuesday.
> 
> From January through June 2009, China's total export volume amounted to $521.7 billion, slightly exceeding Germany's exports, which totaled $521.6 billion.
> 
> Germany has long been the biggest exporter of goods and services but has been closely followed by China in recent years. In 2007, Germany exported $1.32 trillion of goods over the full year while China's exports reached $1.22 trillion, according to the WTO. However, between 2000 and 2007 China's exports grew by an average annual rate of 25 percent, while Germany's exports grew by only 13 percent a year.
> 
> A WTO spokesperson said China and Germany remain very close in the competition, and it is too soon to say if China will overtake Germany as the world's largest goods exporter for all of 2009. The final results will depend on several unknown factors, including foreign exchange rates and the pace of economic recovery in the various markets that buy exports from China and Germany in coming months.
> 
> China Becomes World's Largest Exporter | Journal of Commerce



I always wonder how is it that Germany was the largest exporter? How can they export more than USA, Japan and China??? I don't see much German cars, no fashion cloths, no electronics from them. And do they export that much military hardware??? Is it cocaine? heroine? ectasy? 

What the hell are they exporting that amounts to over a TRILLION dollars a year???


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## Speeder

SinoIndusFriendship said:


> I always wonder how is it that Germany was the largest exporter? How can they export more than USA, Japan and China??? I don't see much German cars, no fashion cloths, no electronics from them. And do they export that much military hardware??? Is it cocaine? heroine? ectasy?
> 
> What the hell are they exporting that amounts to over a TRILLION dollars a year???



check this out: 
Germany Products, Manufacturers, Importers and Suppliers

You forgot German Beers & Sausages btw...


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## oct605032048

Chinese top companies see better profits than U.S. counterparts, says report
English_Xinhua 2009-09-06 00:23:40 Print

HANGZHOU, Sept. 5 (Xinhua) -- Profits of the top 500 enterprises in China exceeded that of their counterparts in the United States, a domestic ranking report said Saturday.

Net profits of the Chinese companies are 170.6 billion U.S. dollars in the first half of this year, while the figure for the U.S. companies are 98.9 billion U.S. dollars, according to a report released by the China Enterprise Confederation (CEC) and China Enterprise Directors Association.

Although the net profits for the Chinese heavyweights are down 12.4 percent from a year ago, it is still less than a 84.67 percent fall for the U.S. companies, which see the worst decline in 55 years recorded by the U.S. Fortune magazine.

Wang Jiming, vice president of CEC, said although the business data showed that the Chinese companies were less vulnerable to the global financial crisis than the U.S. counterparts, it did not mean they have made substantial improvements in comprehensive competitive power.

He said Chinese enterprises enjoy relatively better policies and domestic market environment.

Chinese companies still lacked behind world's leading enterprises in resource allocation, innovation, international presence, business model and corporate culture, he noted.

The threshold of this year's top 500 companies in China is raised to 10.54 billion yuan (1.55 billion U.S. dollars) for sales revenue, compared with last year's 9.31 billion yuan.

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## oct605032048

China to launch high-speed train in 2012
(chinadaily.com.cn)
Updated: 2009-09-09 16:52
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*A trial high-speed train with a speed of 500 km per hour* will be off line by the end of next year, Zhang Shuguang, a senior expert with the China Academy of Railway Sciences, revealed at the 11th annual meeting of the China Association of Science and Technology held in Chongqing, the Xinhuanet quoted Chengdu Business Daily as saying.

Travel time between Beijing and Chongqing will be shortened to seven hours by 2012 and it will also take only seven hours to travel between Shanghai and Chengdu, the report said.

Zhang said the country will build 42 high-speed railway lines for passenger transportation with a speed of 350 km per hour in the next three years.

China has made a breakthrough in the development of high-speed railway technologies as high-speed trains can run both on high-speed railways and normal railways, which will greatly enhance the efficiency of China's railway network, Zhang said.

When the high-speed network completes construction between 2011 and 2012, it will be able to carry over 7 billion passengers each year, Zhang noted.

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## oct605032048

China's Geely plans joint bid for Volvo
(Agencies)
Updated: 2009-09-09 13:12
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China's Geely plans joint bid for Volvo
A Geely TX4 car is seen at a Geely Automobile dealership in Shanghai June 16, 2009. [Agencies]

SHANGHAI: Geely Group, one of China's main independent automakers, is considering bidding for Ford Motor Co.'s Volvo Cars unit in alliance with an unnamed investment partner, a company spokesman confirmed Wednesday.

Geely, based in the eastern city of Hangzhou, is among several Chinese automakers that reportedly have shown interest in the Swedish automaker, though company officials had earlier denied such reports.

Gui Shengyue, chief executive of Geely Automobile Holdings, the automaker's Hong Kong-listed entity, told reporters Tuesday that Geely may team up with a state-owned Chinese investment company to make a bid for Volvo.

Weng Xiaodong, director of Geely's board of directors office, confirmed the reports in a phone interview.

Speaking at a briefing in Hong Kong on Geely's first-half earnings report, Gui said Geely's parent company, rather than its listed unit, may bid for Volvo.

"Geely is an ambitious company and given current global changes, we really cannot miss out on this move," the financial magazine Caijing quoted Gui as saying.

Since more than 90 percent of Geely's capital is tied up in its listed company, the parent company lacks the wherewithal to manage the acquisition by itself, Gui said. But the company would join with either a government entity or some other institutional investor, Caijing quoted him as saying.

Gui did not say how much Geely might pay for Volvo.

Earlier reports had named state-owned Beijing Automotive Industry Holding as a potential bidder for Volvo.

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## Omar1984

*European firms want level playing field in China ​*
BEIJING: European Union trade commissioner Catherine Ashton said on Thursday that foreign companies operating in China did not expect &#8220;red carpet treatment&#8221; but wanted a level playing field.

&#8220;The perception of European businesses has been that they would not be welcome in tendering for business in China,&#8221; Ashton told a news conference.

&#8220;European businesses do not expect red carpet treatment in China but we need to make sure they don&#8217;t get the rug pulled from under their feet at the same time.&#8221;

Ashton said she had been given assurances by senior government officials during her first visit to China that European businesses operating here &#8220;would be regarded as Chinese businesses&#8221;.

But she said it remained unclear how the government would ensure such treatment at the local level.

&#8220;We have to clarify exactly what is being proposed and communicate with businesses on what it actually means and make sure that those who are going to implement it know what it means,&#8221; she said.

Ashton&#8217;s comments came after a leading European business group last week said China was backtracking on the implementation of reforms aimed at opening up the world&#8217;s third largest economy to foreign firms.

The European Union Chamber of Commerce in China said in a position paper that conditions for European companies operating here had become increasingly challenging.

&#8220;In many sectors there is a slowdown, even a partial reversal, of reforms,&#8221; said chamber president Joerg Wuttke.

The group pointed out that foreign companies wishing to operate in China, continued to face major barriers, such as the need for auto companies to create joint ventures with local firms.

Ashton acknowledged the friction between Europe and China, but said &#8220;99 per cent of our trade with China works effectively&#8221;.

&#8220;We have very clear rules in the EU about anti-dumping and my responsibility is to make sure that we stick to those rules and that&#8217;s what I do,&#8221; Ashton said.

&#8220;I would like to avoid needing to use those rules and we need to continue to develop this partnership strategically in order to trade 100 per cent in the right way,&#8221; Ashton said.

While Europe and China are major trade partners, friction has been increasing with Europe opening four anti-dumping cases against Chinese industries this year.

Europe has anti-dumping measures in force against 50, or about one per cent, of Chinese imports to Europe, according to the EU website.

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## BanglaBhoot

*Internationalizing the Yuan *

*A Hong Kong bond issue is a small but important step.*

Beijing's announcement earlier this week that it will sell yuan-denominated government bonds in Hong Kong has caught a lot of attention. The Ministry of Finance bills it as a measure to "promote the yuan in neighboring countries and improve the yuan's international status." The move comes in the context of Beijing's larger goal of transforming the yuan into a global currency. While on its own this is a relative baby step, it is more significant than at first appears.

The bond issue, set for September 28, will consist of six billion yuan ($879 million) in government debt sold to retail and institutional investors in Hong Kong. This is a drop in the bucket compared to Beijing's overall outstanding government debt of 6.3 trillion yuan and especially relative to a world-wide United States Treasury market of nearly $7.5 trillion. But it's a strong signal of Beijing's future plans to internationalize the yuan.

China has taken several steps down this road since late 2008. Beijing in early July established yuan settlement agreements between Hong Kong and the five big cities in China that form the bulk of Hong Kong's trading partners on the mainland. This trial program allows local firms in Hong Kong and China to settle their trade in yuan, insulating them to some extent from risks associated with currency fluctuations. The Chinese central bank also has established bilateral currency swap agreements with the central banks of South Korea, Hong Kong, Malaysia, Indonesia, Belarus and Argentina. China reportedly is in talks with other central banks to create additional swap agreements with the goal of being able to conduct most of China's trade with Asia, excluding Japan, in yuan. Longer-term plans even call for the expansion of currency swap agreements in the Middle East and Latin America.

China's motives are straightforward. In the second quarter of 2009 China had accumulated $2.13 trillion of foreign exchange reserves. While the exact breakdown of China's holdings is unclear, most analysts agree that 65%-70% is held in dollars. As the dollar has weakened, Beijing's fears over the value of China's massive dollar holdings have increased. These fears have become especially pronounced since the beginning of 2009 amid aggressive monetary and fiscal easing in the U.S.

For now China is stuck with the dollar since it is not in a position to sell large amounts of its dollar holdings in the open market without driving the value of its holdings down further. Although China has called for the establishment of an international currency based on the International Monetary Fund's special drawing rights, Chinese policy makers appear to have decided that the only long-term way out of China's dependency on the dollar is to gradually internationalize the yuan. These efforts should be seen as natural, since China is already the world's third-largest economy and trading power.

Internationalizing the yuan will probably take years, however, and must involve substantial moves to allow the yuan to be used as a viable reserve currency. The biggest obstacle is that capital account convertibility for the yuan is still a long way off. In this respect, the internationalization of the yuan poses certain dilemmas for the Chinese leadership. The Chinese economy in general still lacks a high degree of institutional and legal certainty and predictability. Chinese leaders prefer ambiguity that allows them to intervene with administrative commands when needed. The barrage of Chinese bank lending unleashed in the first half of 2009 in reaction to the financial crisis is an example of how this system has its handy features.

Capital account convertibility for the yuan would subject Beijing's policies to the judgments of individual investors at home and abroad capable of contributing to large capital flows, including highly temporary and speculative gushes. It would put China's economy much more at the mercy of global financial forces.

In view of this, it is unlikely that the Chinese leadership would move quickly toward full capital account convertibility. Rather, the Chinese will try to get the best of all worlds: to reduce China's reliance on the dollar for international payments, strengthen the yuan's role in trade and central bank reserve allocation, and yet keep in place legal and institutional barriers to short-term speculative capital flows.

This can best be accomplished in the short run by creating an offshore market for yuan financial instruments that foreign central banks and investors can trust. China's latest move to create an offshore market in Hong Kong for yuan-denominated Chinese government bonds does just that. While the first step is very small, it might mark the beginning of a scheme to provide opportunities for central banks and investors to store capital in a secure, tradable and liquid form of yuan deposits. In addition, Chinese government bonds issued overseas and perhaps bonds issued by Chinese state firms and banks with quasi-sovereign guarantees could provide the pricing benchmarks, liquidity and security that an internationalized market for yuan needs. 

The yuan's role as one of the premier international currencies is still some way off, but Chinese policy makers are moving in the direction of establishing an international alternative to the dollar, yen and euro. They have to start somewhere, and that "somewhere" is with relatively small steps like this week's bond announcement. 

Internationalizing the Yuan - WSJ.com


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## BanglaBhoot

*A Protectionist Wave *

*Obama makes a big mistake in his first trade decision on Chinese tires*

The White House disclosed late Friday evening that the U.S. will impose stiff tariffs on imported Chinese tires used by millions of Americans. Perhaps President Obama thought he could minimize controversy by releasing the news on a weekend, days ahead of the September 17 deadline and two weeks before he will host Chinese President Hu Jintao at the Group of 20 summit in Pittsburgh. But the protectionist signal he has sent in his first major trade-policy decision is unmistakable.

Mr. Obama has applied a previously unused part of the trade law known as Section 421. This allows U.S. industries or unions to seek protection from "surges" of Chinese imports, with a lower burden of proof than normal antidumping or countervailing duty cases. President Bush nixed the four Section 421 petitions that reached his desk, citing the national economic interest.

Domestic lobbiesincluding unions like the United Steelworkers that supported him during the campaign and filed this case looking for a political favor in returnhoped Mr. Obama would reverse that precedent, and they haven't been disappointed. Such congressional protectionist stalwarts as Sen. Sherrod Brown (D., Ohio) and Rep. Sander Levin (D., Mich.) endorsed Friday night's move. "Today, the President courageously stood up and enforced fair trade rules that will save jobs and help our communities," crowed Mr. Brown, who had enthusiastically supported the tariff proposal. It hardly matters that the 35% tire tariff is less than the 55% the International Trade Commission recommended. Despite that attempt at political and economic baby-splitting, the door is now open to more such claims.

To see where this may lead, look at the companies that face competition from lower-cost Chinese imports and lobbied hard for tire tariffs because of the precedent they would set. The Committee to Support U.S. Trade Laws, for instance, lobbed a pro-tariff letter into the White House this month. The umbrella group includes the American Furniture Manufacturers Committee for Legal Trade; the California Fresh Garlic Producers Association; the U.S. Beekeepers; the Florida Fruit & Vegetable Association; and the Flower Growers of Puget Sound. "This case is being watched closely to see whether Section 421 is an effective law or a dead issue," committee executive director David A. Hartquist wrote to Mr. Obama.

This threat is worth taking seriously. Some of the product categories that have seen import surges include shoes, lawn mowers, television monitors, hearing aids, musical instruments like keyboards and guitars, women's underwear, blouses and t-shirts, according to Greg Rushford, editor of a newsletter on trade policy. Oh, and trousers, women's knit shirts and bras, according to Cass Johnson, president of the National Council of Textile Organizationsanother lobby that wanted Mr. Obama to unleash Section 421.

Mr. Obama has signed onto a number of G-20 statements on the importance of resisting protectionism in an economic downturn. But with his tire decision he is ceding American leadership on trade in favor of assuaging his political base at homeas the Chinese Commerce Ministry noted in its condemnation of the tire move. This is a dangerous game, both for American consumers and businesses and for a world economy that needs more trade, not a trade war.

Chinese Tire Tariffs Test President Obama&#8217;s Protectionism - WSJ.com

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## BanglaBhoot

*Ill Trade Winds with Beijing *

September 14, 2009
Author: Robert McMahon 

The Obama administration's decision to levy tariffs of up to 35 percent on imported Chinese tires and Beijing's threats of reprisal against some U.S. products have raised concerns about a sudden escalation of protectionism between two of the world's largest economies.

Roughly 17 percent of tires now purchased in the United States come from China. U.S. officials said they were obligated to act after a finding by the U.S. International Trade Commission that an improper increase in China's imports caused domestic U.S. tire factories to close. Free trade advocates such as Daniel Ikenson of the Cato Institute say the negative impact of the tariffs outweigh any economic benefits: "Although the lightning rod is China (with all of the negative perceptions that have been cultivated about its trade practices), this case has little to do with China per se, and everything to do with organized labor begrudging U.S. producers for pursuing profit-maximizing strategies in a globalized world."

Eswar Prasad, who teaches trade economics at Cornell University, told the Financial Times the moves by the Obama administration could "easily ratchet up into a full-blown trade war and inflict serious economic damage on both countries." And a former assistant U.S. trade representative for China affairs, Charles Freeman, writes in an Financial Times op-ed that the U.S. decision could serve to both whip up nationalism in China but also "play into a broader trend within China to roll back market-opening reforms." At the same time, other trade experts say the United States is acting within its rights and China can now try to make its case against the tariffs at the World Trade Organization. 

A TIME magazine analysis says the timing of the dispute couldn't be worse, ahead of a meeting of the U.S. and Chinese presidents at next week's G-20 summit and at a time when the two countries have been seeking to build partnerships on everything from climate change to repairing the world's financial system. "Most pressing, cooperation between Washington and Beijing is seen as absolutely crucial to nurturing the budding recovery of the global economy," writes TIME's Michal Schuman. "The two sides need to alleviate the giant economic imbalances--excessive debt and deficits in the U.S. paired with excessive savings in China--to restore the world economy to a more sustainable growth path."

The New York Times reports that the White House decision to impose the tariff is a sign that President Barack Obama will follow through on a pledge to labor unions to more strictly enforce trade laws, especially against China. The tire penalties followed a petition filed by the United Steelworkers Union.

Yet a Bloomberg News report suggests a much different reason for the administration's action: Obama could be making a tough opening gesture on trade as a prelude to launching a broader free trade initiative. The report notes that the four previous U.S. presidents each made moves to protect domestic industries at the outset of their administrations before later pursuing free trade agendas.

Ill Trade Winds with Beijing - Council on Foreign Relations


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## oct605032048

China's 8&#37; goal difficult but achievable: economist
English_Xinhua 2009-09-19 16:45:06 Print

SHANGHAI, Sept. 19 (Xinhua) -- China's economy will be able to achieve the 8 percent growth of gross domestic product (GDP) this year set by the central government, although there are still difficulties ahead, a senior economist said Saturday.

Yao Jingyuan, chief economist with the National Bureau of Statistics, made the remarks at a forum in Shanghai, saying the global economic downturn did not change the fundamentals of the country's economic development, buoyed by the ongoing industrialization, urbanization and marketization.

He said the country's economy has taken a turn for the better from the slowdown in the second half of last year, presenting better recovery than in the United States, Japan, Europe and the other members of the BRIC group, which includes Brazil, Russia, India and China.

The country's economy expanded at 7.9 percent from a year ago in the second quarter of this year, faster than the 6.1 percent in the first quarter, which was the worst quarterly growth in 10 years, dampened by a slump in exports.

The recovery was boosted by the active fiscal policy and moderately loose monetary policy the central government put into place in November last year.

However, he warned of "blind optimism" toward what has been achieved, adding the economic recovery is not on a solid footing yet and there are still many uncertainties ahead.

He also downplayed possibilities of inflation in China in short term, at least within this year as demand fell short of supply in the country because of overcapacity. "Less demand will prevent prices from rising," he said.


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## oct605032048

China's industrial output up 12.3&#37; in August
English_Xinhua 2009-09-11 10:02:55 Print

BEIJING, Sept. 11 (Xinhua) -- China's industrial output accelerated 12.3 percent in August from a year earlier, after gaining 10.8 percent in July, the National Bureau of Statistics said Friday.

The August growth rate was 0.5 percentage points lower than the growth figure for the same month last year, but 1.5 percentage points up from July.

Compared with previous forecasts the growth rate of industrial output would be about 11.8 percent, the new figure is beyond most analysts' expectations.

The output of light industry, including the garment, textile and food sectors among others, rose 9.8 percent in August over the same month last year. The output of heavy industry increased 13.2 percent from a year earlier.

Power generation in August rose 9.3 percent over the same month in 2008 to hit 344.3 billion kwh. The output of coal and crude oil respectively rose 14.6 percent and 1.6 percent compared with August 2008.

In August, outputs of industrials invested in by foreign companies and investors from Hong Kong, Macao and Taiwan rose 8.0 percent from a year earlier, compared with a growth rate of 5 percent in July.

"A fast output growth reflects that demand from overseas markets began to increase," said Liu Tiejun, a senior analyst with Haitong Securities.

"It's also a sign of recovery in the country's exports sector," he said.

Friday's figures from the General Administration of Customs show the value of China's foreign trade continued to fall in August, but its downward rate slowed.

The total value of imports and exports for August was 191.7 billion U.S. dollars, a decrease of 20.6 percent compared with the same month last year, but a 2.3 percent increase from July.

According to the NBS, China's industrial output from January to August rose 8.1 percent over the same period last year.

The growth rate was 7.6 percentage points lower than that in the 2008 January-August period, but up 0.6 percentage points from the first seven months of this year.

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## oct605032048

By Si Tingting (China Daily)
Updated: 2009-09-18 08:34
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Global investors' faith in China swells

China's charm for foreign investors has not waned despite the global credit crunch that dampened investors worldwide, according to a UN report on trends in foreign direct investment.







The economically recovering nation also capitalized on the financial crisis by buying cheap overseas assets, according to the World Investment Report 2009 released yesterday by the United Nations Conference on Trade and Development. China is reportedly poised to join the list of top investing nations in the world.

Globally, the infusion of FDI fell from $2 trillion in 2007 to $1.7 trillion in 2008, a 14 percent drop, according to the report.

The report projected that FDI inflows will bottom in 2009, dropping by at least 40 percent, to below $1.2 trillion. A rebound is expected in 2010.

Despite the global gloom, FDI into China in 2008 rose by 30 percent to $108 billion, making it the third largest recipient of FDI in the world, after US and France.

Global investors' faith in China swells World Economic Recovery?
FDI to China dropped by 17.9 percent in the first half of this year, beating the 40 percent drop globally.

Recently, the UN conference ranked China as the most favorite destination for FDI, followed by the US, India, Brazil and Russia.

But growing overcapacity in some manufacturing sectors in China will force the infusion of FDI into Chinese agriculture and services sectors, said Zhuang Jian, a senior economist with the Asian Development Bank.

"As the Chinese government takes steps to support small-and medium-sized enterprises development, new energy and high-tech industries, FDI may flow into these sectors as well," he added.

China is also facing increasing competition to acquire foreign investments for labor-intensive industries from neighboring countries with cheaper labor, said James Xiaoning Zhan, head of the Division on Investment and Enterprise for the UN conference.

He said that China also has FDI competition from developed countries in high-tech industries, such as the green technology sector.

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## oct605032048

*china's nasdaqGreen light for 7 GEB suitors*
By Bi Xiaoning and Zhang Ran (China Daily)
Updated: 2009-09-18 08:40
Comments(0) PrintMail

Green light for 7 GEB suitors

[CFP]

The securities watchdog yesterday gave seven companies the green light for initial public offerings (IPO) on the to-be-launched growth enterprise board (GEB) anticipating the turnaround in the bourses to help boost investor sentiments.

A total of seven companies have entered the primary IPO review procedures yesterday. All the companies have met the listing requirements for the main board in terms of financial indicators.

According the companies' prospectuses, their accumulated net profit in the past three years has surpassed 30 million yuan ($4.4 million), the minimum threshold for listing on China's main board.

One of the firms, Lepu Medical Technology (Beijing) Co even posted 415 million yuan of accumulated net profit over the past three years.

"Besides the financial requirement for the GEB companies, we also pay much attention to the companies' information disclosure, growth prospects and the ability to innovate," said Jiang Xinhong, an experienced accountant and a member of the IPO review committee for the GEB.

According to the China Securities Regulatory Commission (CSRC), 149 companies have submitted applications for listing on the GEB, which intends to raise a combined 33.6 billion yuan.

Though there are some market apprehensions that to-be-launched GEB may derail the rebound of the main board, industry analysts said there is no need for panic.

"The capital raised by these small- and medium-sized enterprises (SMEs) is quite limited. Even if all the 149 companies get approval, the total capital raised would be less than one blue-chip on the main board," said Lu Junlong, analyst, China Finance Online, a NASDAQ-listed finance group.

Earlier, China State Construction Engineering Corp issued 42.6-billion-yuan new shares. Metallurgical Corp of China recently announced plans to raise up to $5.3 billion through dual listings on the mainland and in Hong Kong. The capital raised by the two industry heavyweights both exceeded the combined 33.6 billion yuan of capital set to be raised by the 149 GEB companies.

The regulator said that six more companies would enter the primary IPO review procedures today, indicating that the GEB could be launched by early October to fund high-growth start-ups.

"Launching the GEB in October is ideal as the main board would have stabilized by then after a two-month correction and continue its rebound in tandem with the global rebound," said Li Daxiao, director of research at Yingda Securities.

Buoyed by the to-be-launched GEB, many listed securities companies saw their share prices go up yesterday. The country's top listed securities firms, including Hongyuan Securities, CITIC Securities Co and Haitong Securities Co, climbed about 2 percent yesterday.

"China's economic growth may quicken to 10 percent or more in the fourth quarter because of stimulus spending and a recovery in exports," Chen Dongqi, a researcher at the country's top economic planning agency, the National Development and Reform Commission, said at a conference in Shanghai yesterday.

JP Morgan also said in a recent report that it was optimistic about the A-share market in mid- and long-term, buoyed by the ample liquidity, the economy's strong recovery signals and active civil investment.


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## grey boy 2

*China's Economy Can Achieve 8% Growth*

China's economy can achieve 8% growth target: official
2009-09-19 lBEIJING: China's economy will be able to achieve a growth target of 8 percent this year, but the country should not rest on its laurels as problems remain, the statistics bureau's top economist was quoted as saying on Saturday.

Yao Jingyuan, chief economist of the National Bureau of Statistics, told a forum in Shanghai that the basis for China's economic recovery was still not stable, and many uncertainties existed.

Authorities have set a target of 8 percent gross domestic product growth this year, something most economists think is in sight since annual growth reached 7.9 percent in the second quarter and appears set to accelerate in year-on-year terms in the second half.

Yao said the 8 percent target will "be difficult but is not a problem", according to a report by the state-run China News Service.
Figures for August showed industrial output, investment and money supply growth all accelerated, prompting many economists to say the recovery is now solid. Officials have been more circumspect, though.

Yao said the slide in China's economic performance which began in the second half of last year had already been arrested.

"But we cannot be blindly optimistic about these achievements, as the basis for China's economic recovery is still not firm, and there exist many uncertainties," he was paraphrased as saying.

As for the possible threat of resurgent inflation, Yao said that at least for this year it would not be a worry.


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## grey boy 2

China's development a contribution to the whole world: UNESCO official 
+ - 08:16, September 22, 2009

China's rapid development was a great contribution to the whole world and all nations were benefiting from it, UNESCO's Vice Director General told Xinhua on Saturday. 

Marcio Barbosa said China's achievement in education was one of the most satisfying parts of the country's progress. 

"I think the progress China has obtained in education is fantastic and very important for UNESCO," he said. 

"We cannot forget the basis of development, which is education, the quality of people's lives and the determination of hard work, you have all of these," Barbosa said. 

Barbosa expressed his optimism about China's future, saying "the country, with a population of 1.3 billion, is full of hope." 

"I believe China will continue to make successes on the international stage," he said. 

When asked what in China had left the biggest impression on him, the Brazilian official said it was undoubtedly the 2008 Beijing Olympic Games. 

"For me, the Beijing Olympic Games was the most important moment, because it was the opportunity to show the world the real China, and I think it was a great success." 

"We have seen the change and all the infrastructure work China undertook for the Games. It was an extraordinary and incredible change," Barbosa said. 

Barbosa's links with China started when he was in charge of Brazil's Space Agency in the late 1980s, and, when he was appointed vice director general of UNESCO in 2001, his engagement with China in education, culture and science increased. 

Last year's Sichuan earthquake was another important memory for Barbosa. 

"During my last trip to China, three months after the earthquake, I visited two global heritage sites, which are on the protection list of UNESCO and had suffered damage. I was surprised to see the reparation works being undertaking even when conditions were still terrible, which demonstrated the responsibility of the Chinese people and the authorities," he said. 

Ten days before China's National Day on Oct. 1, Barbosa expressed his congratulations for the 60th anniversary of the People's Republic of China. "Certainly, the Chinese people should be proud of and content with the progress achieved in their country. It is a country that has changed the people's lives through years of enthusiastic work. The progress we observed is remarkable." 

"China is going to celebrate its 60th birthday, and the 60 years is a phase of peace and stablization and full of industrious work. I wish this kind of development continues, all the world will benefit from it," he said. 
China's development a contribution to the whole world: UNESCO official - People's Daily Online
Source:Xinhua

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## oct605032048

*ADB says China GDP growth at 8.2% this year*
(Xinhua)
Updated: 2009-09-22 10:40
The Asian Development Bank said Tuesday that it revised its forecast on China's year-on-year economic growth to 8.2 percent for 2009.
The new projection for this year is higher than the bank's previous forecast of 7 percent on March 31 and above the goal of 8 percent set by the central government.

The lift in the GDP growth forecast was because of "a surge in bank lending and vigorous fixed-assets investment".

The government rolled out a 4-trillion-yuan ($585 billion) stimulus package in November last year, aiming to boost economic growth slowed by a slump in exports amid the global economic downturn. It also implemented moderately relaxed, proactive policy to help revive the economy.

"The policy has softened the blow from the global slump," the bank said.

China's economic expansion will surge to 8.9 percent in 2010, the ADB said. The momentum is mainly coming from infrastructure investment, the construction industry and consumption, while exports are also making a contribution.

The bank estimated China's consumer price index (CPI) would fall 0.5 percent from a year earlier this year and rise 3.0 percent in 2010.

"Authorities face the challenge of balancing the need to maintain aggressive monetary stimulus until growth is sustainable against the risk the flood of bank lending will be diverted into speculation and excess industry capacity," the bank said.

"Such a scenario might trigger a round of severe monetary belt-tightening in the medium term to pull growth down again," the ADB said.


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## oct605032048

*Coal consumption is slashed
(China Daily/Xinhua)
Updated: 2009-10-05 06:59*

China's consumption of standard coal was 1.10 tons per 10,000 yuan ($1,500) of gross domestic product last year, down from 3.39 tons in 1980, the National Bureau of Statistics said Sunday in a statement.
The progress was a result of China's efforts to cut emissions and develop low-carbon economy, the NBS said.

Since the 1980s, especially during the past few years, China had raised energy efficiency by eliminating high energy-consuming equipment and introducing energy-saving technologies, it said.

The energy consumption per 10,000 yuan of GDP was down 1.79 percent year on year in 2006, 4.04 percent in 2007, and 4.59 percent in 2008, according to NBS.

China has set a target to cut energy consumption for every 10,000 yuan of GDP by 20 percent from 2006 to 2010 in its 11th national development plan.

Statistics of the NBS showed China's national economy grew by 9.8 percent annually during the past 30 years, with its energy consumption up 5.2 percent annually for the same period.

---------- Post added at 07:35 AM ---------- Previous post was at 07:34 AM ----------

*China's firms raise $113.8b by overseas listing
(Xinhua)
Updated: 2009-10-05 15:05*

By the end of last July, China's domestic enterprises had raised $113.8 billion through listing their shares on overseas bourses, China's top securities regulator said Monday.

Statistics from the China Securities Regulatory Commission (CSRC) showed 154 Chinese enterprises had started initial public offering overseas by the end of last July.

Tsingtao Brewery Corporation started listing H-shares on the Hong Kong bourse in June 1993, becoming China's first firm to list outside the mainland.

Meanwhile, China opened up its capital market to foreign investors by launching qualified foreign institutional investors.
By the end of July, China had approved nine Sino-foreign securities ventures, 33 joint venture fund management companies, 113 foreign securities institutions and 38 foreign assets management companies, according to CSRC.

China is also considering allowing high-quality overseas firms to list in China in an effort to stabilize foreign direct investment, Vice Minister of Commerce Chen Jian said in July.


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## oct605032048

*China Southern Airlines to increase Dhaka-Guangzhou flights
(Xinhua)
Updated: 2009-10-05 13:57*

China Southern Airlines will increase the flights for Dhaka-Guangzhou route from once a week to three times a week from October 11, according to the company's source on Monday.

The flights from Guangzhou to Dhaka are scheduled for Tuesday, Thursday and Sunday, and those from Dhaka to Guangzhou on Monday, Wednesday and Friday, Gao Bo, China Southern Airlines representative in Bangladesh, told Xinhua.

Since China Southern Airlines inaugurated Dhaka-Guangzhou route on August 2 this year, it has been providing the lowest price for one return ticket at $150 (not including tax).

Gao said they will increase the prices after they fly three flights per week.

"The lowest price will be $300 (not including tax) for one return ticket," he said.
Gao said the increasing of flights will attract more Bangladeshi passengers to choose Southern Airlines to go to Guangzhou or southern China.

The company has started selling the tickets for the new schedule. "Around 70 percent of the tickets on October 11 have been sold, it is a good sign," Gao said.

Gao said the Canton Autumn Fair is going to be held. "The fair will bring us good business opportunities," he said.

China Southern Airlines is the second airlines of China in Bangladesh after China Eastern Airlines. In 2005, China Eastern Airlines launched Dhaka-Kunming flight.

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## oct605032048

*Two high-speed railways open in east China
(Xinhua)
Updated: 2009-09-28 14:24*

Two high-speed passenger railway lines linking east China's Fujian province with neighboring Zhejiang province went into operation today, which greatly shorten the travel time from mountainous Fujian to the Yangtze River Delta.
The Fuzhou-Wenzhou line shortens the travel time from 15 hours to 100 minutes. Trains can run at 250 km per hour on the line, said Gao An'gang, official with Nanchang Railway Bureau. which is responsible for the construction.

The other line links Wenzhou with Ningbo cities, both in Zhejiang...

The full text is available in the September Issue of Logistics China. Please visit Please visit E-Shop for more subscription details. for more subscription details.


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## hembo

The ugly side of uncontrolled industrial developmet....

*China to move residents from lead smelter base-report*
Sun Oct 18, 2009 8:27pm

BEIJING, Oct 19 (Reuters) - China will move 15,000 residents living near the country's biggest lead smelter base after more than 1,000 children were found to have excessive amounts of the metal in their blood, a Chinese newspaper reported.

The weekend edition of the English-language China Daily said the residents of Jiyuan in central Henan province would be relocated from the smelters, which have become a source of local discontent and another symbol of China's often unbridled industrial growth.

Chinese state media reported last week that over 1,000 children in Jiyuan had excessive levels of lead in their blood. The smelter operator, Yuguang Gold and Lead (600531.SS), said its plants bore some responsibility. [ID:nPEK331271]

A child exposed to heavy concentrations of lead can develop anaemia, muscle weakness and brain damage, and a rash of reported poisonings across several Chinese provinces has raised pressure on officials and companies to deal with the problem.

The mayor of Jiyuan, Zhao Suping, said 15,000 people in 10 villagers around the plants would move at a total cost of about 1 billion yuan ($150 million), allowing the lead plants to keep operating, the China Daily reported.

Not all locals had been mollified, said the paper.

"I am not satisfied with the current steps by the government," said one resident, surnamed Li, according to the paper. She said her two granddaughters were found to have lead levels far above safe limits.

"I think the government should respond faster and do more to prevent similar cases from occurring."

After the people move, the smelters will rent their abandoned land and plant trees to serve as a barrier protecting nearby villages, the report said.

An official in one of the villagers set to move said the residents were likely to be shifted to a site 4 km (miles) from their present homes. (Reporting by Chris Buckley; Editing by Ken Wills and Dean Yates)


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## oct605032048




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## oct605032048

Automobile numbers could be capped
By Qian Yanfeng (China Daily)
Updated: 2009-10-19 09:02

As many as 5.5 million cars will be on Beijing's roads by 2015, although the growth rate will stabilize in the next five years, a senior local transport official said.

Beijing's car community will hit 4 million by the beginning of next year and will then grow by an average of 300,000 cars a year, compared to the present rate of 400,000, to reach 5.5 million in 2015, Liu Xiaoming, director of the Beijing municipal committee of communications, said.

Liu said the municipal government would not restrict the number of cars on the road at the moment, but would not rule out doing so in the future.

"But efforts would be made to reduce public needs for cars and restrict their use and parking through overall traffic planning and related policies," he said.
By next year, Beijing's car community will have grown by 1 million in only two-and-a-half years. It took cities like Tokyo 12 years to reach that rate of growth.

Authorities have tried to ease persistent traffic jams and reduce emissions with an on-going car ban in the city, which stops motorists from driving one day every week based on their license plate number.

They have also attempted to enlarge and enhance the city's public transport system. Official estimates show public transport would make up to 50 percent of the total passenger trips in the central urban areas by 2015, while 20 percent of journeys will be made on bicycles.

Liu said that less reliance on private cars would ensure that vehicle emissions do not exceed that of 2008, despite increasing vehicles.

But Jia Yuanhua, a transportation professor at Beijing Jiaotong University who is a proponent for car controls, said the government should control the number of vehicles since the road resources are limited.

"The government would not restrict the purchase of cars because they need to support the growth of the industry and increase GDP during the financial crisis," he said.

"But that is not sustainable and we have to take into consideration the traffic capacity."

Lu Huapu, director of the institute of transportation engineering, Tsinghua University, also expressed concern over the city's infrastructure capacity.

"The Chinese people like to use their cars frequently once they have one and I really doubt whether we can support such an enormous need," Lu said.

China's automotive output hits 10 mln mark


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## oct605032048

China's first subway tunnel traversing the Yangtze River is expected to begin construction this month in Wuhan, capital of central China's Hubei province, local officials said Saturday.

The 3,100-meter-long tunnel is located between the country's first bridge on the river, the Wuhan Yangtze River Bridge, and its first road tunnel beneath the river, officials said.

The subway tunnel is expected to undertake 50 percent of the city's traffic flow across the river. And it is designed to withstand a 6.0-magnitude earthquake and a flood that occurs once every 300 years, they said.

The tunnel is part of the city's No 2 metro line with a length of 27.98 km, which is expected to be completed in 2012.

About 14.9 billion yuan ($2.2 billion) will be invested in the construction of the metro line, officials said.

The first road tunnel was built in Wuhan, and opened for traffic since last December.

Another two road tunnels under the Yangtze River in Shanghai and Nanjing, captial of East China's Jiangsu Province, are expected to open for traffic respectively at the end of this year and in July, 2010.
The 6,300-km-long Yangtze River, which originates in Northwest China's Qinghai province and flows through 10 provinces and municipalities before emptying into the East China Sea, is a major transport link between the west and east China. More than 100 bridges across the river are in use.


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## genmirajborgza786

China car output 'breaks record' 

Chinese annual car production has topped 10 million for the first time as carmakers boost output to meet growing demand, state media has said. 

The 10 millionth car produced this year rolled off the First Automobile Works Group assembly line in Changchun, the official Xinhua News Agency reported. 

Despite the downturn and falling sales at most global carmakers, demand for cars in China is booming. 

State incentives, such as tax cuts on small cars, have boosted sales. 

Like many other governments around the world, China has also introduced subsidies to trade in older vehicles. 

Previously, only the US and Japan had produced 10 million cars in a single year. 

Domestic Chinese car sales overtook those in the US for the first time in December of last year, and this trend has continued. 

Global carmakers are now increasingly targeting China as a key growth market. 

Story from BBC NEWS:
BBC NEWS | Business | China car output 'breaks record'

Published: 2009/10/20 06:32:25 GMT

&#169; BBC MMIX

Print Sponsor

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## oct605032048

China's growth accelerates to 8.9&#37; in 3Q
(chinadaily.com.cn/Agencies)
Updated: 2009-10-22 10:11
China's economy expanded a blistering 8.9 percent in the third quarter, fueled by lavish government stimulus spending that has helped the nation spearhead recovery from the global recession.

Growth in the world's third-largest economy accelerated from 7.9 percent in the second quarter and for the first nine months of the year was 7.7 percent, the National Statistics Bureau said Thursday.

Officials have said they expect the economy to at least reach the annual growth target of 8 percent.

The consumer price index (CPI), a main gauge of inflation, was up 0.4% in September from the previous month, said the National Bureau of Statistics. The CPI dipped 1.1 percent year on year in the first nine months.
The producer price index (PPI), a major measurement of inflation at the wholesale level, dropped 6.5 percent year on year in the first three quarters of this year. The September PPI rose 0.6 percent from a month earlier.

China's retail sales in the third quarter of this year rose 15.1 percent year on year, or 17.0 percent after deducting price factors, said the National Bureau of Statistics.

Fixed-asset investment in the first nine months increased by 33.4 percent year-on-year, according to the National Bureau of Statistics.

Fixed-asset investment in urban and rural areas rose 33.3 percent and 33.6 percent respectively, compared with the same time last year.

Industrial output rose 8.7 percent in the first three quarters of the year, and 12.4 percent in July-September - signaling accelerating demand, the statistics bureau said.

China has countered the global downturn with a 4 trillion yuan ($586 billion) stimulus plan involving massive spending on infrastructure such as rail and roads to pump up the domestic economy as exports slumped.

The mixture of liberal credit, strong government backing for massive public works and incentives for domestic industries like autos have enabled China's economy to quickly rebound while the US, Japan and Europe continue to flounder.

However, on Wednesday, China's top leaders signaled their concerns over imbalances in the economy, with the State Council saying policy will shift to dealing with waste and other problems of high growth.

"In the first three quarters, the pace of economic growth quickened," the State Council said in a statement after a meeting with Premier Wen Jiabao. "At the same time, we also are clearly aware that there are still difficulties and problems in the economic and social development of our country."

China's economic stimulus plan remains on track, but greater efforts will be made to curb industrial overcapacity, promote new industries, maintain liquidity and lower unemployment, it said.


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## oct605032048

World Bank upgrades China growth forecast to 8.4%





The World Bank yesterday revised upwards its forecast for China's growth this year - from 7.2 percent to 8.4 percent - and projected a slightly faster pace of expansion in the coming year.

The Washington-based bank was the latest major international financial institution to upgrade predictions - a reflection of its confidence in the country's recovery.

But the World Bank sounded a note of caution, pointing out that a sustained recovery will need a shift in the economy to emphasize consumer spending, instead of industry and investment.

Eight months ago, when China's exports were plunging sharply and its massive stimulus package had not yet had an impact, the World Bank projected this year's growth would be 6.5 percent. In June, it upgraded that forecast to 7.2 percent.

The latest economic data from the third quarter shows China has already outperformed those expectations.

The World Bank's forecast of 8.7 percent growth in 2010 remains unchanged.

The upgrade follows similar moves from the International Monetary Fund and the Asian Development Bank.

The World Bank admitted that the previous lower projections were down to an underestimation of China's subsequent efforts to mobilize its massive stimulus package.

However, the bank believes "the growth impact of the government stimulus is set to decline sharply next year and investment in parts of manufacturing is likely to remain under pressure from spare capacity in China and abroad."

"Now, all of a sudden, international financial institutions are bullish about Chinese economic performance," said Liu Yuhui, director of the Center for Chinese Economic Evaluation at the Chinese Academy of Social Sciences.

Liu pointed out that the Chinese government may become more tolerant of a possible economic slowdown in the coming year.

"The State Council has recently pledged to balance the relationship between boosting growth and rebalancing the economy. The effort to rebalance the economy will likely bring about economic slowdown," Liu said. "If the government is truly committed to rebalancing the economy, it should tolerate slower growth and it may not be so keen to achieve the 8 percent growth rate."

With more robust data likely to follow, the Chinese government may now consider withdrawing some of its pro-growth policies, said Louis Kuijs, senior economist with the World Bank in China and the main author of the China quarterly update.
He said monetary policy should lead tightening efforts in 2010.

"Risks of asset price bubbles and misallocation of resources amid abundant liquidity need to be mitigated and the overall monetary stance will have to be tightened, eventually," said Kuijs.

Chinese banks have started to rein in new lending, though experts say easy credit will likely continue.

Banks lent about 1 trillion yuan ($125 billion) per month earlier this year. That rate has slowed by about a half since July.

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## oct605032048

Shanghai Disneyland gets state approval
(Xinhua/China Daily)
Updated: 2009-11-04 09:53










SHANGHAI: The Shanghai Disneyland Project has got state approval, the Shanghai municipal government announced here Wednesday morning.

The government's information office said that talks have started on details of the project, which has been planned in the Pudong New District of Shanghai.

---------- Post added at 03:47 AM ---------- Previous post was at 03:46 AM ----------

Sinopec to buy LNG from ExxonMobil
By Wan Zhihong (China Daily)
Updated: 2009-11-05 08:44
China's second largest oil company, Sinopec Corp, yesterday signed its first purchase deal for liquefied natural gas (LNG) with US oil major ExxonMobil, in a move to expand its share in the rapidly growing domestic gas market.

The two companies entered into a preliminary agreement for the long-term supply of 2 million tons per annum of LNG from ExxonMobil's project in Papua New Guinea. The two sides are working together to finalize a binding sale and purchase agreement this year, Sinopec yesterday said in a statement.

The LNG will be supplied to Qingdao, Shandong province, where Sinopec will build an LNG receiving terminal, Wang Zhigang, senior vice-president of Sinopec Corp, said yesterday.

Analysts said the deal marks a milestone in the company's expansion into the domestic LNG market. At present, the market is dominated by the country's leading oil and gas producer, PetroChina, and the country's leading offshore oil company, CNOOC.

China's LNG imports rose to a record, of around 800,000 tons in September. Analysts said the figure would remain high during the rest of the year due to growing demand.
With this agreement, the ExxonMobil-led LNG project developer will conduct exclusive discussions with Sinopec and other major Asian LNG customers for binding sale and purchase agreements covering its full project capacity, said Ron Billings, marketing vice-president of ExxonMobil Gas and Power.

Other potential gas buyers include Japan's Tokyo Electric and Osaka Gas Ltd.


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## Gin ka Pakistan

Wal-Mart estimates it imports $15 billion of Chinese goods every year
===========================================
*Wal-Mart sees quarterly profits jump 3.2&#37;*

NEW YORK (AFP) - *US retail giant Wal-Mart on Thursday posted third quarter profits of 3.23 billion dollars, up 3.2 percent from a year ago, beating market expectations.*
The firm, which is the world's largest retailer, overcame battered consumer confidence in its principal market, the United States.
The profit amounted to 84 cents per share, three cents ahead of Wall Street expectations for the quarter ended October 31.
Net sales for the third quarter were 98.667 billion dollars, an increase of 1.1 percent from the same period last year. But sales would have been even higher if not for foreign exchange fluctuations, the company said.
Mike Duke, Walmart president and chief executive officer said of the results: "Increased productivity and improved inventory management led to a better customer experience and contributed to our strong financial performance."
He added: "The sales environment continued to be difficult this quarter, but customer traffic is up throughout the company. We gained market share, especially in the United States, the United Kingdom and Mexico, as customers around the globe continued to count on Walmart for quality and low prices."
Following the results, Wal-Mart raised its outlook for the coming quarter and rest of its fiscal year.
"We continue to operate in a very challenging economy and remain dedicated to provide the lowest prices to our customers around the world," said Tom Schoewe, Walmart executive vice president and chief financial officer.
"We believe Walmart is positioned better than any other retailer to succeed with customers this holiday season."
*Wal-Mart is the biggest private employer in the United States. It has more than 1.4 million workers at home and more than two million globally.* (thanks to China)
Aside from the United States, its overseas operations are in Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua and Britain.

http://ca.news.yahoo.com/s/afp/091112/business/us_retail_company_walmart_earnings


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## Solomon2

China has accumulated $2.2 trillion in foreign reserves, all by the Communist Party keeping for itself what it could give out to its population. That's a subsidy to the U.S. of over $7,000 per person! 

For now, it's more important of the Chinese communists to keep their population employed/the U.S. supplied with cheap goods than risk social upset through political and economic reforms. Thus the Chinese must keep buying dollars and euros. If it wasn't for China being a dictatorship, big American retailers would take a huge cut just as U.S. farmers did when Russia gave up Communism and started growing wheat for a profit, driving the price of grain way down.

So "Made in China" doesn't rule, the U.S. dollar and Euro do - for now.


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## Gin ka Pakistan

*China to be world's largest construction market by 2018*

China will overtake the US as the world's largest construction market by 2018, and would be about four times larger than India's at the end of the next decade, according to a report by market analyst Global Construction Perspectives and Oxford Economics.

In the next 10 years, China's construction market will be worth *about $2.4 trillion and represent 19.1 percent of the global construction output*, said the Global Construction 2020 report released here Thursday.

Speaking at the launch of the report, Mike Betts of Global Construction Perspectives said: 'The construction market in China is already enormous at almost double the size of its nearest rival Japan. The US has for some time held the top spot but despite its strong predicted growth over the next decade, China will become the world's largest construction market by 2018.'

From 2009 to 2020, only Nigeria and India will enjoy higher growth rates than China in their construction output. Despite India's continued construction boom, China's market will still be between three and four times larger than India's at the end of the next decade, the China Daily said quoting the report.

In the vast majority of the emerging markets, residential construction helps to drive high growth rates. In China, housing will be the slowest growing sector, but still, the country will see its construction market more than double in size in just one decade.

The 10-year forecast indicates emerging markets would rapidly overtake the construction output of their developed neighbours. The top 10 highest growth markets in 2020 will be the emerging markets, with Poland the only European country to feature on the list. China would rank third.

The report highlights that today's global construction market is worth an estimated $7.5 trillion, representing 13.4 percent of global GDP. But by 2020, construction will be a $12.7 trillion global market, an overall growth of 70 percent in the next decade. Construction in 2020 will account for 14.6 percent of global GDP.

The infrastructure construction market in emerging markets will grow by a staggering 128 percent over the next decade to 2020, compared with just 18 percent over the same period in developed countries.

The largest construction market globally is residential, accounting for 40 percent of the total global construction market by 2020, when it will be worth $5.1 trillion.

China to be world's largest construction market by 2018


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## Gin ka Pakistan

Business Intelligence Statistics

* U.S. engine giant Cummins turns over 1 bln dollars in China for 3 years
* China to deliver 1st LNG ship
* China's ship industry strives for No. 1 spot
* China's automakers earn US$10B in 2006
* China aims to save 69 bln cubic meters of water by 2010
* Schneider National got China business license in transportation and logistics
* China to boost investment in rural road construction
* Demand in logistics sector to grow 15&#37; in 2007

CE

The domestic oil refining industry, led by China Petroleum & Chemical Corp., posted a net profit of 67.1 billion yuan (US$9.8 billion) in the first eight months of this year as the government eased control on fuel prices.
The earnings compared with a net loss of 118.2 billion yuan a year earlier, the National Development and Reform Commission said in a statement on its Web site Thursday.
Source:Shenzhen Daily
2009-10-30
http://www1.cei.gov.cn/ce/doc/cenf/200910300001.htm


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## ssheppard

Things are about to change


Very soon ...



No.1 Mexico, No.2 India, No.3 China | 13 November 2009 | www.commodityonline.com


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## Gin ka Pakistan

ssheppard said:


> Things are about to change
> 
> 
> Very soon ...
> 
> 
> 
> No.1 Mexico, No.2 India, No.3 China | 13 November 2009 | www.commodityonline.com



If my info is correct world richest guy is from Mexico


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## Spring Onion

Solomon2 said:


> China has accumulated $2.2 trillion in foreign reserves, all by the Communist Party keeping for itself what it could give out to its population. That's a subsidy to the U.S. of over $7,000 per person!
> 
> For now, it's more important of the Chinese communists to keep their population employed/the U.S. supplied with cheap goods than risk social upset through political and economic reforms. Thus the Chinese must keep buying dollars and euros. If it wasn't for China being a dictatorship, big American retailers would take a huge cut just as U.S. farmers did when Russia gave up Communism and started growing wheat for a profit, driving the price of grain way down.
> 
> So "Made in China" doesn't rule, the U.S. dollar and Euro do - for now.





Dont toy think so you should be more worried for loosing your own market to Chinese instead of worrying who is accumulating the wealth in China


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## alice45

Thanks for your nice information of China. The best form of government is Rule of Law, organized as a Republic. Democracy is a component of that best of systems. China is the world's largest country. It has become the world's construction market by 2018.


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## conworldus

MIIT: China&#8217;s Software Revenue Over CNY750 Billion In 2008 - ChinaTechNews.com - The Technology Source for the Latest Chinese News on Internet, Computers, Digital, Science, Electronics, Law, Security, Software, Web 2.0, Telecom, and Wireless In


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## arihant

100 billion is a good amount. Good luck China.


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## cherryerror

Good news.
And I believe in the next twenty years we Asian will play the leading role in the world software industry

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## grey boy 2

*People's Daily Online - Home Page*

15:15, November 23, 2009 

*This year, China's fourth-quarter GDP growth is expected to surpass 10% and the annual GDP growth will reach 8.5% or so*, Yu Bin, Director General of the Department of Macroeconomic Research at Development Research Centre of the State Council (DRC) said on November 21. He also added that China's macro economy should adopt "double stable" policy which means to maintain stable economic growth and stable price level next year.

Yu said, "Generally speaking, there is no possibility of major adjustment in the government's macroeconomic policy in 2010, and the government should continue to maintain the continuity and stability of macroeconomic policies. At the same time, China needs to leave some room for policy adjustments according to changes in domestic and international situation. "

Four-quarter GDP growth may reach 10% 

While attending the 6th session of China's Economic Growth and Economic Security Strategy Forum, Yu Bin said that the Chinese government reduces the decline in exports' impact on the Chinese economy by increasing investment. But China's economic growth can not have long-term dependence on government investment, and the market-driven business investment and residents' consumption need to take over the government's investment expansion. Sustained economic recovery in the third quarter has laid a good foundation for the future development.

*He pointed out that, four factors which are the sustained rapid growth in investment, the actual consumption growth reached record levels, the export share in the international market rose steadily, and steady rebound in industrial production support the strong revival in the Chinese economy, and this year's 4th quarter GDP growth is expected to reach 10% or even higher level. The annual economic growth will achieve slightly higher than the target of 8% and will remain at about 8.5%, while the growth in the first quarter of next year could be higher.*

As a number of investment projects newly opened this year are long-term large-scale projects, such as railways, highways, airports, their construction and investment period is very long, thus the demand for capital is a continuous process, and large-scale investment may occur in the next year or even the year after next. Yu Bin thinks in order to guarantee the demand for capital of these projects, China is unlikely to make major adjustments in monetary policy.


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## aimarraul

*China announces targets on carbon dioxide emission cuts*

* Source: Xinhua
* [16:27 November 26 2009]
* Comments

The State Council announced Thursday that China is going to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.

This is a voluntary action taken by the Chinese government based on its own national conditions and is a major contribution to the global effort in tackling climate change, the State Council said.


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## grey boy 2

*China strives for faster retail growth - People's Daily Online*

12:10, November 29, 2009 

China will strive for a higher growth rate for retail sales in 2010 with a bigger contribution tonext year's GDP increase, the Ministry of Commerce (MOC) said on Saturday. 

Consumption was the key drive force for China's economic recovery in 2009, said Jiang Zengwei, vice minister of commerce, at a forum in Beijing on the development and reform of China's circulation industry. 

*The country's economy grew 8.9 percent year on year in the third quarter this year, accelerating from 7.9 percent in the second quarter and 6.1 percent in the first quarter, according to the National Bureau of Statistics (NBS). *

The MOC will take measures to boost both rural and urban consumption in 2010 to push up economic growth, said Jiang. 

He said the MOC will expand the "old-for-new" program to encourage more consumers to buy new cars and home appliances on a basis of discount if they give up their old ones to sellers. 

Credit consumption and sales promotion, especially those during holidays, will also be encouraged by the MOC, according to Jiang. 

*The country's retail sales are predicted to increase 18.2 percent year on year in 2010, boosted by domestic consumption and income growth, according to a recent report by Beijing-based Renmin University of China. *

*The NBS data showed retail sales in October rose 16.2 percent year on year to 1.17 trillion yuan (171.3 billion U.S. dollars).* 

Source: Xinhua


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## grey boy 2

*China takes fast lane in growth - People's Daily Online*

10:45, December 02, 2009 

China's manufacturing sustained rapid growth in November, shored up by the country's strengthened economy and improved profit margins among producers, according to a pair of definitive indexes released Tuesday.

*An index produced for HSBC, based on a poll of purchasing executives in manufacturing, hit a record high of 55.7 in November, while a parallel official index was unchanged at an 18-month peak of 55.2. *

Together, the surveys showed that China's economy has largely recovered from the global downturn thanks to aggressive pro-growth measures adopted a year ago. 

*The official Purchasing Managers' Index, measuring manufacturing activity, settled at 55.2 last month, the same as the figure in October and up from 54.3 in September, the China Federation of Logistics and Purchasing said. *

*STEADY TREND *

The PMI, which includes forward-looking elements such as orders for sales, has been above 50 for nine straight months and extended the 18-month high in November reached the previous month. 

A reading above 50 refers to expansion. 

HSBC's China Purchasing Managers' Index rose to a record high of 55.7 in November from 55.4 in October, Reuters reported. 

*The index, based on a survey dating back to April 2004, has steadily recovered from a record low of 40.9 in November 2008 in the depths of the global credit crunch.* 

It is the eighth month in a row that the index, designed to provide a timely snapshot of business conditions in industry, has been above the watershed of 50. 

"The growth momentum in China's PMI suggests industrial production is improving steadily," said Sherman Chan, an economist at Moody's Economy.com. 

*DIFFERENT VIEWS *

The official PMI sub-index for production increased 0.1 from a month earlier to 59.4 in November. New orders slipped 0.1 to 58.4. 

Industries including textile, apparel, tobacco, metal production and transport equipment manufacturing reported gains in new orders. 

HSBC's new export orders sub-index rose in November to 57.5, the highest level since March 2005. 

According to Reuters, respondents said they were seeing stronger demand because of a global recovery. 

As is often the case, the two indexes told slightly different tales. Whereas HSBC's survey is slanted toward privately owned, export-oriented firms, the official one is weighted more heavily toward big domestic companies. 

*As government pump-priming gradually lost momentum, demand would be driven more by the private sector, Reuters quoted Zhang Liqun, a government economist, as saying. *

"Such a change is positive, showing that China's economic growth is becoming more stable and sustainable," said Zhang, who works for the Development Research Center, a think-tank under the State Council, China's Cabinet. 

Source: Shanghai Daily


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## Seadog1

China per capita income is only 6000 a year, that still makes China very very poor...


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## grey boy 2

Seadog1 said:


> China per capita income is only 6000 a year, that still makes China very very poor...



HaHa, nice try, curry boy, Chinese won't feel bad with your rant, but

you did create for yourself a lot of enemies= people that made less 

than that. Now, get lost, troll.


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## aimarraul

Seadog1 said:


> China per capita income is only 6000 a year, that still makes China very very poor...



of course china is very poor,china's urbanization rate is still less than 50&#37;,that's one of the reasons why chinese are very optimistic about our country's future&#65292;huge potential is there


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## Seadog1

aimarraul said:


> of course china is very poor,china's urbanization rate is still less than 50%,that's one of the reasons why chinese are very optimistic about our country's future&#65292;huge potential is there



Not everybody thinks so....

In China, it is possible to completely lose your dignity as human being. Waking up day after day to find only hunger, misery, infinite injustice and no future; the dignity of being a human being is nowhere to be found  and never was. All that is left is to live as a beast. 

This is what has happened to over 800 million farmers in China this year: the land they work is not their own, their crops belong to the Chinese communist party, to which they owe taxes, labor and obedience. So just like animals migrate, millions of these poor farmers try to become workers instead of beasts of burden by moving to the city. Here they morph into clandestine citizens  as the law does not grant them with resident permits for the cities  then into Mingongs ("min"=farmer, "gong"=work). Mingongs are clandestine nonentities with neither a past nor a future, human fuel for the unstoppable Chinese production machine, slaves to be exploited. 

The Mingong: Half Animals, Half Laborers

Chinas in for a rough ride, half capitalist, half communist,,,I hope it succeeds.


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## conworldus

Err... what you read is called fabrication and that's not China. We are adding more law to protect private properties and farmers do not pay tax at all for selling their crops (the tax was eliminated 3 years ago I think). The government does not own the crops. Hunger has been eliminated in China for a long time.

Rural China is in fact booming now days with more and more entreprenuership incentives. Obstacles remain but the progress has been great. Yes many migrant workers work in cities to earn better wages, but their families still have farmland back home that they can return to. Not only this provides good labour, it also trains the workers and many smart ones return home to start their own business. Labour laws are improving in China and salaries have been rising. The working condition in most factories now are meeting international standard. The workers work by contract, not slavery. Slavery is not legal in China.

Regardless, we are doing great and thx for your concern. But you don't need to.




Seadog1 said:


> Not everybody thinks so....
> 
> In China, it is possible to completely lose your dignity as human being. Waking up day after day to find only hunger, misery, infinite injustice and no future; the dignity of being a human being is nowhere to be found  and never was. All that is left is to live as a beast.
> 
> This is what has happened to over 800 million farmers in China this year: the land they work is not their own, their crops belong to the Chinese communist party, to which they owe taxes, labor and obedience. So just like animals migrate, millions of these poor farmers try to become workers instead of beasts of burden by moving to the city. Here they morph into clandestine citizens  as the law does not grant them with resident permits for the cities  then into Mingongs ("min"=farmer, "gong"=work). Mingongs are clandestine nonentities with neither a past nor a future, human fuel for the unstoppable Chinese production machine, slaves to be exploited.
> 
> The Mingong: Half Animals, Half Laborers
> 
> Chinas in for a rough ride, half capitalist, half communist,,,I hope it succeeds.

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## Seadog1

conworldus said:


> Err... what you read is called fabrication and that's not China. We are adding more law to protect private properties and farmers do not pay tax at all for selling their crops (the tax was eliminated 3 years ago I think). The government does not own the crops. Hunger has been eliminated in China for a long time.
> 
> Rural China is in fact booming now days with more and more entreprenuership incentives. Obstacles remain but the progress has been great. Yes many migrant workers work in cities to earn better wages, but their families still have farmland back home that they can return to. Not only this provides good labour, it also trains the workers and many smart ones return home to start their own business. Labour laws are improving in China and salaries have been rising. The working condition in most factories now are meeting international standard. The workers work by contract, not slavery. Slavery is not legal in China.
> 
> Regardless, we are doing great and thx for your concern. But you don't need to.



Are you sure you would know....

How would you like to live in a world without facebook, YouTube, Twitter and Flickr etc. What would you do if I tell you starting from tomorrow you are not allowed to access these sites anymore? As many of you probably already know, this is actually a reality in China  a country which has the highest number of internet users. Due to censorship policy in China, especially Internet Censorship, as for now, Twitter, YouTube, Facebook and Flickr etc. are all blocked by the GFW  Great Firewall of China.


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## bigmoneymaker

Seadog1 said:


> Are you sure you would know....
> 
> How would you like to live in a world without facebook, YouTube, Twitter and Flickr etc. What would you do if I tell you starting from tomorrow you are not allowed to access these sites anymore? As many of you probably already know, this is actually a reality in China &#8211; a country which has the highest number of internet users. Due to censorship policy in China, especially Internet Censorship, as for now, Twitter, YouTube, Facebook and Flickr etc. are all blocked by the GFW &#8211; Great Firewall of China.



dude, not a single website in this world is neutral since certain websites are just flooded by certain groups of people holding and running the administration of website....lets say if your a true pakistani and see some biased western propaganda against pak in these website you mentioned and all euro and americans users think that it is correct and pointing the fingers of blame on pak and defame islam??? if now china is stronger than usa in terms of national strength then all this situation will be totally inverted...then it should be usa trying everything to block the incoming chinese influential websites which may guide the simple minded western youths in favor of china....i hope you understand this and stop making your childish remarks about the rising but still weak china in a wrong section....get it??? reason stated.....most of chinese are sleeping now and i am going to sleep too, good night...reminder, you should get know to real chinese people by learning up mandarin if you really care for chinese people and dont just stand there reading outdated english comments on chinese development if you are a true pakistani...WHAT YOU SAID WAS TRUE IN A FEW YEARS AGO BUT NOW THINGS ARE IMPROVING AT A MUCH FASTER RATE EVEN BEYOND MY IMAGINATION IN CHINA, HOPE THIS HELP THOSE OUTSIDERS OBSERVING CHINA LATEST DEVELOPMENT THROUGH THE EYES OF WESTERN MEDIA WAKING UP, INCLUDING MYSELF.........

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## Omar1984

bigmoneymaker said:


> dude, not a single website in this world is neutral since certain websites are just flooded by certain groups of people holding and running the administration of website....lets say if your a true pakistani and see some biased western propaganda against pak in these website you mentioned and all euro and americans users think that it is correct and pointing the fingers of blame on pak and defame islam??? if now china is stronger than usa in terms of national strength then all this situation will be totally inverted...then it should be usa trying everything to block the incoming chinese influential websites which may guide the simple minded western youths in favor of china....i hope you understand this and stop making your childish remarks about the rising but still weak china in a wrong section....get it??? reason stated.....most of chinese are sleeping now and i am going to sleep too, good night...reminder, you should get know to real chinese people by learning up mandarin if you really care for chinese people and dont just stand there reading outdated english comments on chinese development *if you are a true pakistani*...WHAT YOU SAID WAS TRUE IN A FEW YEARS AGO BUT NOW THINGS ARE IMPROVING AT A MUCH FASTER RATE EVEN BEYOND MY IMAGINATION IN CHINA, HOPE THIS HELP THOSE OUTSIDERS OBSERVING CHINA LATEST DEVELOPMENT THROUGH THE EYES OF WESTERN MEDIA WAKING UP, INCLUDING MYSELF.........



The guy, SeaDog is most likely another indian pretending to be Pakistani. Check out his previous posts, he even makes negative comments on Pakistan and Pakistanis.

Every Pakistani on earth wants China to succeed.

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## grey boy 2

Omar1984 said:


> The guy, SeaDog is most likely another indian pretending to be Pakistani. Check out his previous posts, he even makes negative comments on Pakistan and Pakistanis.
> 
> Every Pakistani on earth wants China to succeed.



Well said brother, I been watching this SeaDog guy for some time, all

his post was hiding behind a Pakistan flag doing his Pakistan bashing,

He is a damn coward, and now he started to bash Chinese with the

protection with the Pakistan flag. Hope Mod. will do something about

it soon.

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## Seadog1

grey boy 2 said:


> Well said brother, I been watching this SeaDog guy for some time, all
> 
> his post was hiding behind a Pakistan flag doing his Pakistan bashing,
> 
> He is a damn coward, and now he started to bash Chinese with the
> 
> protection with the Pakistan flag. Hope Mod. will do something about
> 
> it soon.



How would you like to live in a world without facebook, YouTube, Twitter and Flickr etc. What would you do if I tell you starting from tomorrow you are not allowed to access these sites anymore? As many of you probably already know, this is actually a reality in China  a country which has the highest number of internet users. Due to censorship policy in China, especially Internet Censorship, as for now, Twitter, YouTube, Facebook and Flickr etc. are all blocked by the GFW  Great Firewall of China. 

The above is a fact.

Dont you think its strange such a simple fact, would get such a hysterical reaction...and such violent personal attacks..much worse has been said in here about many countries. Dont you think this site should be a place for debate and discussion rather then personal attacks and censorship....


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## grey boy 2

Seadog1 said:


> Isnt it strange a few simple truths, would get such a hysterical reaction...and such violent personal attacks..much worse has been said in here about many countries.



Give it up man, i could smell you miles away, not interesting to reply

to someone with identity crisis. 

Truth ? do you have this word in your dictionary ?

Get lost, troll.


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## grey boy 2

*Economic growth expected for China in 2010: UN report - People's Daily Online*

08:20, December 03, 2009 

*China's economic growth is projected to reach 8.8 percent in 2010, but will still fall short of pace according to pre-economic crisis levels, a new UN economic report said here on Wednesday.*

A preview of the annual economic report, which was launched here at the UN Headquarters in New York, recognized that the global "economic revival" is a byproduct of the massive fiscal stimulus by governments worldwide toward the end of 2008.

*According to the report, the world economy is expected to slowly rebound in 2010 where developing Asia would lead the pack in the strongest recovery.*

*India was also listed as another developing country where economic growth would take place, at a projected rate of 6.5 percent.*

*According to the report, China has experienced a surge in outward investment, which reached an estimated 150 billion U.S. dollars in 2009. This was compared to the outflows of capital from emerging economies to other developing countries which had "moderated" in the last two years.*

Citing that "investors in emerging economies recoiled along with those in developed countries," the report noted that China was "bucking the trend."

*Warning that the economic recovery was "uneven and conditions for sustained growth remain fragile," the report urged "rebalancing global growth." This was needed, the report warned, in order to avoid the recurrence of another global imbalance.*

The annual report which is scheduled to be released next month is produced by the UN Department of Economic and Social Affairs (DESA), the UN Conference on Trade and Development (UNCTAD), and five UN regional commissions.

Source: Xinhua

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## Kuuba

Seadog1 said:


> How would you like to live in a world without facebook, YouTube, Twitter and Flickr etc. What would you do if I tell you starting from tomorrow you are not allowed to access these sites anymore? As many of you probably already know, this is actually a reality in China  a country which has the highest number of internet users. Due to censorship policy in China, especially Internet Censorship, as for now, Twitter, YouTube, Facebook and Flickr etc. are all blocked by the GFW  Great Firewall of China.
> 
> The above is a fact.
> 
> Dont you think its strange such a simple fact, would get such a hysterical reaction...and such violent personal attacks..much worse has been said in here about many countries. Dont you think this site should be a place for debate and discussion rather then personal attacks and censorship....



Frankly speaking, I don't like GFW, which was created to solve one issue but created another. However, just let you know, we could bypass the wall if we want or we could simply choose countless domestic "youtube"s - faster and easier to use. And the most important is, people lived very well without youtube for years. It's not a fundamental element of people's daily life. 

I am not a guardian of the censorship. However, I believe that in a developing country with 1.3 billion population, stability is more important than "free speech". We are extremely scrupulous on this point because we can't afford any anarchy.

I believe many years later, when our country is ready, we will be there. I have confidence.

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## grey boy 2

*AMD says China is expected to be its largest single market by 2012 - People's Daily Online* December 03, 2009 

*Global innovative technology leader Advanced Micro Devices (AMD) said yesterday that China could become the company's largest single market within the next two years, boosted by the country's booming rural market and increasing demand for notebooks. *

*The observation came from AMD President and Chief Executive Officer Dirk Meyer, whose company now stands as the world's second largest chipmaker. *

*"There are speculations that China will become the world's largest PC market by 2012, but for us, China could become our largest market sooner than that, as we have a higher market share in the country," he said*. 

China's PC market has showed signs of recovery during the past few months, as the government's economic stimulus package and efforts to subsidize rural computer buyers took effect. 

*According to figures from research firm Gartner, the PC market in China is estimated to have grown 28.5 percent in the third quarter of 2009, compared with a worldwide average growth of 0.5 percent in the same period.* 

AMD Senior Vice President and President of AMD Greater China Karen Guo said China's PC market has shown great potential during the financial crisis. She said the company's growth in the country is expected to come from rural areas and demand for notebooks in the future. 

*Since the company's entry into China in 1993, it has maintained sustained growth as it successfully won local customers such as Lenovo, Founder, Tongfang and Dawning.* 

*The company also established a close relationship with key Chinese government organizations by transferring key x86 microprocessor technology and helping China develop its own supercomputing capability. *

Lagging behind market leader Intel, AMD accounts for about 25 to 30 percent of desktop computers around the world, according to the company. In the emerging notebook market, the company's share is about 10 to 15 percent. 

Guo said in China AMD's market share is relatively higher. She said the company would work closely with local governments and its partners in China to cash in on the plan to sell more computers in rural areas. 

*AMD now has nearly 2,000 employees in China and has the company's second largest research center in the country. The company also has a microprocessor test, mark and pack (TMP) facility in Suzhou, east China's Jiangsu province. *

Last month, the giant chipmaker Intel announced that it would pay $1.25 billion to settle its long-running disputes with AMD, ending the industry's most bitter legal war that covers both antitrust and patent claims. 

Dirk said yesterday that most of the payment it received from Intel would be used to pay the company's current debt. "But we will assuredly increase our investment in emerging markets such as China where most of the PC shipment growth comes from," he said. 

*In the past few years, AMD has challenged its biggest rival Intel Corp as never before in the company's 40-year history. *

Earlier this year, AMD decided to drop its "Smarter Choice" tagline in exchange for "The future is fusion", as it tries to highlight the combination of its microprocessor and graphics technologies.

Source: China Daily


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## Seadog1

Kuuba said:


> Frankly speaking, I don't like GFW, which was created to solve one issue but created another. However, just let you know, we could bypass the wall if we want or we could simply choose countless domestic "youtube"s - faster and easier to use. And the most important is, people lived very well without youtube for years. It's not a fundamental element of people's daily life.
> 
> I am not a guardian of the censorship. However, I believe that in a developing country with 1.3 billion population, stability is more important than "free speech". We are extremely scrupulous on this point because we can't afford any anarchy.
> 
> I believe many years later, when our country is ready, we will be there. I have confidence.



I think it was Voltaire that said,,, I disagree with what you say but I would defend to the death your right to say it....I am not sure I have ever heard some one defend censorship before...

To Americans No right is more fundamental than freedom of speech. Without freedom of speech you sooner or later you wont be able to communicate your ideas and feelings, decry a social injustice, pursue an artistic vision, investigate scientific truth, practice a religion, or criticize government. If freedom of speech is destroyed, self-development is crippled, social progress grinds to a halt, and official lies become the only "truth."

Freedom of speech is considered one of the basic human rights, included in the *Universal Declaration of Human Rights*: "Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and freedom of belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people"; and in the European Convention on Human Rights: "Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers"; and guaranteed in the first amendment to the U.S. Constitution: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."


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## oct605032048

*I do appreciate the value of human right, but this thread is not for this argument.* You may discuss your opinions in other posts. It is very *impolite* to interrupt offensively into this thread which is about China's economic development.

If you live in the States and never came to China, how would you know people in China have been cut off from the outside world? 

Does youtube or other google's products equal human rights? If this is the result of your logical thinking, then no discussion is needed. Have you ever heard of Baidu, sina and qq? All chinese here on this forum can read, write and understand english and news on the so-called free media, but how many of you can read and understand chinese&#65311;Since your knowledge about china comes from secand-hand media than your opinion has no value here. The fact is there are 100 million Chinese people traveling abroad,come and back. If life in China is awful why would they come back?

Even if China were lacking human rights as you said, as a foreigner especially an american has no say here. because the history since 1840 taught people in China a lesson: national sovereignty and independence from the foreign powers are the most precious values. When Nanjing, the then capital was lost in the war against Japanese and millions of people were slaughtered, where are the moralist and their human rights?

Thanks for your concern for China's human rights, people in China have been pursuing and will defend their rights and there is no such a need of *any* foreign assistance/interference/conspiracy/lampoon/crocodile tears.


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## Seadog1

oct605032048 said:


> I do appreciate the value of human right, but this thread is not for this argument. You may discuss your opinions in other posts.



But it does lead to a logical question,,doesnt it...

What is that China fears, What is the problem that is so great that it is necessary for China to deprive 1.5 billion Chinese of one of their Basic Human Rights...and

that leads to the next logical conclusion is if Chinas stability is threaten by such a basic human right then China economy is threaten if Chinas stability is in danger.


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## Kuuba

Seadog1 said:


> I think it was Voltaire that said,,, I disagree with what you say but I would defend to the death your right to say it....I am not sure I have ever heard some one defend censorship before...
> 
> To Americans No right is more fundamental than freedom of speech. Without freedom of speech you sooner or later you wont be able to communicate your ideas and feelings, decry a social injustice, pursue an artistic vision, investigate scientific truth, practice a religion, or criticize government. If freedom of speech is destroyed, self-development is crippled, social progress grinds to a halt, and official lies become the only "truth."
> 
> Freedom of speech is considered one of the basic human rights, included in the *Universal Declaration of Human Rights*: "Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and freedom of belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people"; and in the European Convention on Human Rights: "Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers"; and guaranteed in the first amendment to the U.S. Constitution: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."



You are a funny guy with comedy talent.  It's really shameless for US to talk about human rights. Seriously. Politicians do that because shameless is their job. Do you also get paid because of shameless? Here I am not going to waste my time to list all the anti-human-right behaviors of yesterday and today done by US.

_Who is innocent? - Godfather_

What I disgust most is not bad, but bad in the name of good.


----------



## Seadog1

Kuuba said:


> You are a funny guy with comedy talent.  It's really shameless for US to talk about human rights. Seriously. Politicians do that because shameless is their job. Do you also get paid because of shameless? Here I am not going to waste my time to list all the anti-human-right behaviors of yesterday and today done by US.
> 
> _Who is innocent? - Godfather_
> 
> What I disgust most is not bad, but bad in the name of good.



What I find amuseing is people trying to defend that that which is indefenseable ..such as a country depriveing its citizens of basic human rights such as the freedom of speech. Dont get me wrong I strongly support China prosperity,,I dont see it as a threat to the USA but a blesssing for the people of China and the entire world,,,but I also forsee the posibility of major problems with a country that half capitalist and half communist and I am aware of the unrest in China.


----------



## grey boy 2

*Goldman: China, emerging economies to lure funds for 20 years - People's Daily Online* December 03, 2009 

*World's major emerging economies led by China are expected to attract more global investments away from the developed economies for the upcoming 20 years, the Goldman Sachs Group said a report.*

Those flows will counter any impact on China's capital markets from government measures aimed at curbing over-speculation, the Bloomberg quoted Thomas Deng, Goldman Sachs' head of China strategy, as saying.

Corporate profit growth in China, estimated at between 20-30 percent on average in 2010, will fuel an equity market rally in China, said Deng. He recommended buying shares in China's auto and healthcare industries. 

*"Western countries' money is moving to oriental countries, and that means developed world money is flowing into developing countries, Deng told reporters in Hong Kong on Wednesday. "This will be a trend in the next 10 to 20 years."*

Developing economies will expand 5.1 percent in 2010 compared with 1.3 percent growth in the developed economies, according to the International Monetary Fund. 

*Goldman Sachs forecasts Hong Kong's Hang Seng China Enterprises Index will reach 17,000 by the end of next year, according to Deng. 
China's CSI 300 Index will hit 4,300 by the end of 2010, the Bloomberg quoted Deng as saying. *

*An unprecedented $1.3 trillion of loans this year and a $586 billion stimulus package pushed China's economy to record 8.9 percent growth in the third quarter, the fastest expansion in a year. The credit boom helped the Shanghai Composite Index rally 80 percent this year and Hong Kong's H-share index surge 69 percent. Home prices in 70 major cities in China climbed at the fastest pace in 14 months in October.*

People's Daily Online


----------



## grey boy 2

*GM to cede venture control to China partner - People's Daily Online* 08:51, December 04, 2009 

*US auto giant General Motors has reached a deal to hand control of its joint venture with China's SAIC Motor Corp to the Shanghai-based car maker, the New York Times said Thursday*

SAIC said Thursday its shares had been suspended from trading pending an announcement on a "major assets restructuring."

*According to the Times, the troubled GM will sell SAIC 1.0 percent of its stake in their joint venture which would then give China's largest car maker a 51 percent share of the company.*

In return, GM will keep equal voting rights with SAIC and reserve the right to buy back the 1.0 percent stake at a later stage, the report said.

There was no immediate comment from General Motors on the report, and it was not known how much the sale would raise for the US giant which is undergoing a major restructuring.

*But one person close to GM told the Times: "It's a big deal, it's a good deal."*

SAIC shares, which closed down 0.04 percent at 25.53 yuan on Wednesday, will resume trading after the plan is announced, SAIC said

People's Daily Online


----------



## grey boy 2

*China makes new carbon aircraft brake disk - People's Daily Online*

10:15, December 06, 2009 

*China has invented a carbon aircraft brake disk, breaking foreign companies' monopoly on the product.* 

The brake disk, developed by the Xi'an Chaoma Technology Co. Ltd affiliated with the China Aerospace Science and Technology Corporation, passed experts' appraisal here Friday. 

*The brake disk has proprietary intellectual property rights and its function has reached international level, according to the appraisal meeting. *

*The disk costs half of the similar products overseas and can save about 100 million yuan (14.6 million yuan) a year for the Chinese civil aviation industry.* 

*The disk applies the carbon-carbon composite materials, which has high intensity and stiffness. It's 40 percent lighter than the traditional metal materials and can resist temperature as high as 2,000 degrees Celsius. *

*The disk has got the manufacturing license for the Boing 757 and Airbus 318/319/320.* 

Source: Xinhua


----------



## grey boy 2

*Sales of China's online gaming industry to hit 27.5 bln yuan in 2009 - People's Daily Online*
11:45, December 06, 2009 

*The sales revenue of China's online gaming industry is expected to reach 27.5 billion yuan (about 4.03 billion U.S. dollars) in 2009, according to Ma Huateng, president and CEO of China's leading Internet service provider Tencent Holdings Limited. *

Ma made the prediction at the opening ceremony of the Seventh China International Digital Content Expo on Friday. 

The third quarter financial reports of major Chinese online game companies including Sohu, Tencent, NetEase and Shanda, showed most of them recorded a 60 percent or even higher increase in gross profit, Beijing Daily reported Saturday. 

*The sales revenue of China's online gaming industry reached 18.38 billion yuan in 2008, up 76.6 percent from 2007. *

An executive from the gaming department of NetEase attributed the continuous growth of the online gaming industry to the development of Internet technologies and preferential policies from the government. 

*Chinese online game companies' expansion overseas also contributed to the growth. *

*The Nasdaq-listed Perfect World, a leading Chinese online game developer and operator, entered the Russian market and set up a branch company in the United States in 2009. *

Source: Xinhua


----------



## Seadog1

Chinese Crime Rate Soars As Economic Problems Grow
By John Pomfret
Washington Post Foreign Service
Thursday, January 21, 1999; Page A19 

BEIJINGAs economic conditions begin to worsen, China's Communist leadership faces a growing problem of internal security, manifested in a soaring crime rate and signals of a broader restiveness around the country.

Over the past two weeks, state-run media have reported three bombings that killed more than 21 people. A gang of masked thieves suspected of robbing jewelry stores throughout central China engaged in a dramatic shootout with police in the middle of Wuhan, a city of 7 million people. And a human rights organization said a tax protest by thousands of farmers in Hunan province on Jan. 8 left one protester dead and scores injured when police suppressed it.

Communist Party sources said that last year more than 5,000 protests -- in cities and the countryside -- severely taxed China's massive security services. Meanwhile, Chinese experts have been quoted in the state-run press as saying China is facing its most serious crime wave since the Communist revolution in 1949. Narcotics seizures are the highest ever. So are slayings of police officers.

The reports, collected over several weeks, seem to underscore the fears of senior Communist Party officials that 1999 will be a difficult year for China. The Asian financial crisis has begun to bite here, slowing the country's growth rate and increasing unemployment in major cities. Discontent with corruption within the Communist Party also is growing, triggering unrest.

Few, if any, analysts believe that China is tottering on the brink of a political breakdown. But the events of the past two weeks, coupled with a smattering of statistics released recently by the official media, paint a picture of a country with serious crime problems, a disgruntled population and no readily available means to improve the situation.

The reports follow one of the Communist Party's toughest crackdowns on dissent in years. Four dissidents were sentenced last month to 10 years or more in jail for attempting to establish an opposition political party, the China Democracy Party. That party formed preparatory committees in 23 provinces and was trying to register in 14 provinces and cities when China's security apparatus smashed it and arrested its organizers, who are veteran dissidents. The ability of the China Democracy Party to organize so quickly surprised the Communist Party and Western diplomats and was an indication of the depth of disquiet felt by many Chinese.

The main ingredients in the current strife appear to be the economic slowdown coupled with growing opposition to corruption within the Communist Party.

Opposition to corruption and to heavy-handed tactics is what prompted 3,000 farmers to protest on Jan. 8 in the village of Daolin, outside of Changsha, the capital of Hunan province. The farmers marched on government offices after police arrested the organizers of an unofficial group called the Lower Taxes and Save the Country Society, according to the Information Center of Human Rights and Democratic Movement in China, a Hong Kong-based human rights organization.

More than 1,000 security personnel broke up the protest, using clubs and tear gas, the center said. One man bled to death after he was hit by a canister. Authorities gave his family $7,000 in reparations. The protests continued the next day, and the People's Armed Police were called in to quell the disturbance; more than 110 people were detained. Residents in Daolin corroborated the Hong Kong report, but added that many of those detained have been released.

Hunan is not just a hotbed of rural dissent. It also has been battered by high urban unemployment. On Jan. 1, the Changsha city government issued an order "prohibiting attacks on state organs and blockages of traffic," according to a recent edition of the Hunan Economic Times, a state-run paper. It said that during the first 10 months of 1998, unemployed workers, angry at not being paid unemployment benefits, blocked traffic on the main boulevards of the provincial capital more than 60 times -- a rare acknowledgment of the extent of urban unrest.

Throughout the country, labor unrest is expected to increase with the economic decline. The official China Daily reported last week that 16 million city dwellers will not be able to find work this year -- 11 percent of the urban work force, and one of the highest percentages of unemployed since 1949. Another 120 million people in the countryside are out of work, and many of them have traveled in search of jobs, leading to social problems and crime waves.

Crime, after corruption, is fast becoming one of the main worries of city dwellers. Over the past two weeks, Chinese have been treated to a number of shocking reports.

Shortly after sundown on Jan. 4, a gang burst into a jewelry store in the Wuhan Square Shopping Center, stole about $500,000 worth of jewels and then fired a fusillade at police during their escape. Two police officers, one soldier and three passersby were wounded. Last year, 442 Chinese police officers were killed and 7,735 injured while on duty, the Public Security Ministry reported earlier this month.

On Jan. 6, in northeastern Liaoning province, a prospective thief blew up a bus, killing 19 people in a botched robbery attempt. The suspect had hoped to rob passengers after knocking them out with a controlled explosion. He was arrested and has confessed, official press reports said.

On Sunday, again in Hunan's Changsha, a man believed to be a rural migrant ignited a bomb on a bus injuring 37 passengers, including three who lost their legs, the New China News Agency reported. Last Wednesday, four people were injured in a blast in the southern city of Zhuhai. Official press reports said an "unidentified object" exploded near a downtown bus stop.

The bombs and Wuhan robbery are dramatic indications of the crime wave sweeping China.

In an interview with the state-run press last week, Cao Feng, an expert on crime statistics at the Chinese People's University of Public Security, said China was experiencing its "fifth peak of criminal activity" since the Communist revolution.

Cao said the incidence of crimes is running about eight times what it was a decade ago and illegal drugs are a particularly troubling problem because China had all but wiped out drug use following the revolution.

Narcotics seizures in 1998 were the highest in the history of Communist China.

Police seized more than seven tons of drugs, including 2.5 tons of heroin last year, the state-run press said last week. In all, narcotics seizures were up 19-fold over 1997, it said.


----------



## Honor

Seadog1 said:


> Chinese Crime Rate Soars As Economic Problems Grow
> By John Pomfret
> Washington Post Foreign Service
> Thursday, January 21, 1999; Page A19
> 
> BEIJINGAs economic conditions begin to worsen, China's Communist leadership faces a growing problem of internal security, manifested in a soaring crime rate and signals of a broader restiveness around the country.
> 
> Over the past two weeks, state-run media have reported three bombings that killed more than 21 people. A gang of masked thieves suspected of robbing jewelry stores throughout central China engaged in a dramatic shootout with police in the middle of Wuhan, a city of 7 million people. And a human rights organization said a tax protest by thousands of farmers in Hunan province on Jan. 8 left one protester dead and scores injured when police suppressed it.
> 
> Communist Party sources said that last year more than 5,000 protests -- in cities and the countryside -- severely taxed China's massive security services. Meanwhile, Chinese experts have been quoted in the state-run press as saying China is facing its most serious crime wave since the Communist revolution in 1949. Narcotics seizures are the highest ever. So are slayings of police officers.
> 
> The reports, collected over several weeks, seem to underscore the fears of senior Communist Party officials that 1999 will be a difficult year for China. The Asian financial crisis has begun to bite here, slowing the country's growth rate and increasing unemployment in major cities. Discontent with corruption within the Communist Party also is growing, triggering unrest.
> 
> Few, if any, analysts believe that China is tottering on the brink of a political breakdown. But the events of the past two weeks, coupled with a smattering of statistics released recently by the official media, paint a picture of a country with serious crime problems, a disgruntled population and no readily available means to improve the situation.
> 
> The reports follow one of the Communist Party's toughest crackdowns on dissent in years. Four dissidents were sentenced last month to 10 years or more in jail for attempting to establish an opposition political party, the China Democracy Party. That party formed preparatory committees in 23 provinces and was trying to register in 14 provinces and cities when China's security apparatus smashed it and arrested its organizers, who are veteran dissidents. The ability of the China Democracy Party to organize so quickly surprised the Communist Party and Western diplomats and was an indication of the depth of disquiet felt by many Chinese.
> 
> The main ingredients in the current strife appear to be the economic slowdown coupled with growing opposition to corruption within the Communist Party.
> 
> Opposition to corruption and to heavy-handed tactics is what prompted 3,000 farmers to protest on Jan. 8 in the village of Daolin, outside of Changsha, the capital of Hunan province. The farmers marched on government offices after police arrested the organizers of an unofficial group called the Lower Taxes and Save the Country Society, according to the Information Center of Human Rights and Democratic Movement in China, a Hong Kong-based human rights organization.
> 
> More than 1,000 security personnel broke up the protest, using clubs and tear gas, the center said. One man bled to death after he was hit by a canister. Authorities gave his family $7,000 in reparations. The protests continued the next day, and the People's Armed Police were called in to quell the disturbance; more than 110 people were detained. Residents in Daolin corroborated the Hong Kong report, but added that many of those detained have been released.
> 
> Hunan is not just a hotbed of rural dissent. It also has been battered by high urban unemployment. On Jan. 1, the Changsha city government issued an order "prohibiting attacks on state organs and blockages of traffic," according to a recent edition of the Hunan Economic Times, a state-run paper. It said that during the first 10 months of 1998, unemployed workers, angry at not being paid unemployment benefits, blocked traffic on the main boulevards of the provincial capital more than 60 times -- a rare acknowledgment of the extent of urban unrest.
> 
> Throughout the country, labor unrest is expected to increase with the economic decline. The official China Daily reported last week that 16 million city dwellers will not be able to find work this year -- 11 percent of the urban work force, and one of the highest percentages of unemployed since 1949. Another 120 million people in the countryside are out of work, and many of them have traveled in search of jobs, leading to social problems and crime waves.
> 
> Crime, after corruption, is fast becoming one of the main worries of city dwellers. Over the past two weeks, Chinese have been treated to a number of shocking reports.
> 
> Shortly after sundown on Jan. 4, a gang burst into a jewelry store in the Wuhan Square Shopping Center, stole about $500,000 worth of jewels and then fired a fusillade at police during their escape. Two police officers, one soldier and three passersby were wounded. Last year, 442 Chinese police officers were killed and 7,735 injured while on duty, the Public Security Ministry reported earlier this month.
> 
> On Jan. 6, in northeastern Liaoning province, a prospective thief blew up a bus, killing 19 people in a botched robbery attempt. The suspect had hoped to rob passengers after knocking them out with a controlled explosion. He was arrested and has confessed, official press reports said.
> 
> On Sunday, again in Hunan's Changsha, a man believed to be a rural migrant ignited a bomb on a bus injuring 37 passengers, including three who lost their legs, the New China News Agency reported. Last Wednesday, four people were injured in a blast in the southern city of Zhuhai. Official press reports said an "unidentified object" exploded near a downtown bus stop.
> 
> The bombs and Wuhan robbery are dramatic indications of the crime wave sweeping China.
> 
> In an interview with the state-run press last week, Cao Feng, an expert on crime statistics at the Chinese People's University of Public Security, said China was experiencing its "fifth peak of criminal activity" since the Communist revolution.
> 
> Cao said the incidence of crimes is running about eight times what it was a decade ago and illegal drugs are a particularly troubling problem because China had all but wiped out drug use following the revolution.
> 
> Narcotics seizures in 1998 were the highest in the history of Communist China.
> 
> Police seized more than seven tons of drugs, including 2.5 tons of heroin last year, the state-run press said last week. In all, narcotics seizures were up 19-fold over 1997, it said.



Why are u posting a 10years ago information?


----------



## GLOBAL HAWK

Seadog1 said:


> Chinese Crime Rate Soars As Economic Problems Grow
> By John Pomfret
> Washington Post Foreign Service
> Thursday, January 21, 1999; Page A19
> 
> BEIJINGAs economic conditions begin to worsen, China's Communist leadership faces a growing problem of internal security, manifested in a soaring crime rate and signals of a broader restiveness around the country.
> 
> Over the past two weeks, state-run media have reported three bombings that killed more than 21 people. A gang of masked thieves suspected of robbing jewelry stores throughout central China engaged in a dramatic shootout with police in the middle of Wuhan, a city of 7 million people. And a human rights organization said a tax protest by thousands of farmers in Hunan province on Jan. 8 left one protester dead and scores injured when police suppressed it.
> 
> Communist Party sources said that last year more than 5,000 protests -- in cities and the countryside -- severely taxed China's massive security services. Meanwhile, Chinese experts have been quoted in the state-run press as saying China is facing its most serious crime wave since the Communist revolution in 1949. Narcotics seizures are the highest ever. So are slayings of police officers.
> 
> The reports, collected over several weeks, seem to underscore the fears of senior Communist Party officials that 1999 will be a difficult year for China. The Asian financial crisis has begun to bite here, slowing the country's growth rate and increasing unemployment in major cities. Discontent with corruption within the Communist Party also is growing, triggering unrest.
> 
> Few, if any, analysts believe that China is tottering on the brink of a political breakdown. But the events of the past two weeks, coupled with a smattering of statistics released recently by the official media, paint a picture of a country with serious crime problems, a disgruntled population and no readily available means to improve the situation.
> 
> The reports follow one of the Communist Party's toughest crackdowns on dissent in years. Four dissidents were sentenced last month to 10 years or more in jail for attempting to establish an opposition political party, the China Democracy Party. That party formed preparatory committees in 23 provinces and was trying to register in 14 provinces and cities when China's security apparatus smashed it and arrested its organizers, who are veteran dissidents. The ability of the China Democracy Party to organize so quickly surprised the Communist Party and Western diplomats and was an indication of the depth of disquiet felt by many Chinese.
> 
> The main ingredients in the current strife appear to be the economic slowdown coupled with growing opposition to corruption within the Communist Party.
> 
> Opposition to corruption and to heavy-handed tactics is what prompted 3,000 farmers to protest on Jan. 8 in the village of Daolin, outside of Changsha, the capital of Hunan province. The farmers marched on government offices after police arrested the organizers of an unofficial group called the Lower Taxes and Save the Country Society, according to the Information Center of Human Rights and Democratic Movement in China, a Hong Kong-based human rights organization.
> 
> More than 1,000 security personnel broke up the protest, using clubs and tear gas, the center said. One man bled to death after he was hit by a canister. Authorities gave his family $7,000 in reparations. The protests continued the next day, and the People's Armed Police were called in to quell the disturbance; more than 110 people were detained. Residents in Daolin corroborated the Hong Kong report, but added that many of those detained have been released.
> 
> Hunan is not just a hotbed of rural dissent. It also has been battered by high urban unemployment. On Jan. 1, the Changsha city government issued an order "prohibiting attacks on state organs and blockages of traffic," according to a recent edition of the Hunan Economic Times, a state-run paper. It said that during the first 10 months of 1998, unemployed workers, angry at not being paid unemployment benefits, blocked traffic on the main boulevards of the provincial capital more than 60 times -- a rare acknowledgment of the extent of urban unrest.
> 
> Throughout the country, labor unrest is expected to increase with the economic decline. The official China Daily reported last week that 16 million city dwellers will not be able to find work this year -- 11 percent of the urban work force, and one of the highest percentages of unemployed since 1949. Another 120 million people in the countryside are out of work, and many of them have traveled in search of jobs, leading to social problems and crime waves.
> 
> Crime, after corruption, is fast becoming one of the main worries of city dwellers. Over the past two weeks, Chinese have been treated to a number of shocking reports.
> 
> Shortly after sundown on Jan. 4, a gang burst into a jewelry store in the Wuhan Square Shopping Center, stole about $500,000 worth of jewels and then fired a fusillade at police during their escape. Two police officers, one soldier and three passersby were wounded. Last year, 442 Chinese police officers were killed and 7,735 injured while on duty, the Public Security Ministry reported earlier this month.
> 
> On Jan. 6, in northeastern Liaoning province, a prospective thief blew up a bus, killing 19 people in a botched robbery attempt. The suspect had hoped to rob passengers after knocking them out with a controlled explosion. He was arrested and has confessed, official press reports said.
> 
> On Sunday, again in Hunan's Changsha, a man believed to be a rural migrant ignited a bomb on a bus injuring 37 passengers, including three who lost their legs, the New China News Agency reported. Last Wednesday, four people were injured in a blast in the southern city of Zhuhai. Official press reports said an "unidentified object" exploded near a downtown bus stop.
> 
> The bombs and Wuhan robbery are dramatic indications of the crime wave sweeping China.
> 
> In an interview with the state-run press last week, Cao Feng, an expert on crime statistics at the Chinese People's University of Public Security, said China was experiencing its "fifth peak of criminal activity" since the Communist revolution.
> 
> Cao said the incidence of crimes is running about eight times what it was a decade ago and illegal drugs are a particularly troubling problem because China had all but wiped out drug use following the revolution.
> 
> Narcotics seizures in 1998 were the highest in the history of Communist China.
> 
> Police seized more than seven tons of drugs, including 2.5 tons of heroin last year, the state-run press said last week. In all, narcotics seizures were up 19-fold over 1997, it said.



This is indeed worrisome!! 
But hey Chinese CCP can crackdown on these easily!!!
Narcotics is a big headache to the whole world.

Reactions: Like Like:
1


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## Seadog1

Honor said:


> Why are u posting a 10years ago information?



My mistake thought it was 2009

This is better:

China riots 'won't lead to rebellion' 

Tracy Quek 
The Straits Times
Publication Date: 12-02-2009 







The number of protests and riots in China is rising by the year, but there is little possibility that social unrest will result in an anti-government uprising, a Chinese academic said yesterday (February 11).

Mass incidents - the Chinese government's term for riots, demonstrations and protests - should not be mistaken for attempts to "rebel against or overthrow the government", said Dr Wang Erping of the Chinese Academy of Sciences' Institute of Psychology.

Rather, these are instances of "ordinary Chinese people wanting to put pressure on local governments to solve problems or improve situations", he said in a discussion with journalists. He had been asked if recent and increasingly common reports of unrest were signs that Beijing could soon have a 'revolution' on its hands.


Using an analogy, Dr Wang, who has studied mass incidents from a psychological perspective, said current cases of unrest for the Chinese government 'are like ringworm infections: They make you feel uncomfortable, but they are not fatal'.

In fact, he said his research revealed that protesting or rioting was the last recourse for most Chinese. His team's survey of almost 10,000 ordinary Chinese carried out between 2004 and last year showed that if faced with grievances, a majority said they preferred to settle the matter privately or through legal and 'proper' channels, rather than resort to violent means.

The survey was carried out in 193 counties across five provinces located in China's western and central regions.

Even as China's top leaders grapple with a withering economy this year after three decades of red-hot growth, a bigger challenge will be to maintain social stability amid rising tensions exacerbated by the economic crisis and huge job losses.

Social unrest goes against President Hu Jintao's political mantra of a "harmonious society" and is seen by the ruling Chinese Communist Party as the biggest challenge to its rule.

China's Public Security Ministry reported 87,000 mass incidents in 2005, up 6.6 per cent over the number in 2004, and 50 per cent over the 2003 figure. The ministry has not released the latest figures.

According to Dr Wang's presentation yesterday, which he said was based on official statistics, there were at least 10,000 mass incidents recorded in 1993. The number ballooned to more than 60,000 in 2005. Two years later, it exceeded 80,000.

Asked if he had an estimate for the number of mass incidents last year, Dr Wang said a study had been done, but he would say only that the number was "higher than that in 2007, but the increase was not as big as the rise between 2005 and 2007".

He added that scholars researching the phenomenon have advised China's leaders since 2005 to "listen more to the voices and complaints of the ordinary people" in order to minimise unrest.

Reactions: Like Like:
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## grey boy 2

*China's solar power capacity will reach 20 mln kWh in 2020 - People's Daily Online*

11:18, December 07, 2009 

*China plans to achieve the goal of 20 million kWh of installed solar power capacity in 2020, said Liang Zhipeng, head of the new and renewable energy division of China's State Energy Bureau. The goal is over 10 times the target set by the government two years ago.*

*"With fierce market competition and advancing technology, if the cost of solar power is comparable with wind power and thermal power, the total solar power capacity won't be limited to 20 million kWh," said Liang, expecting that annual growth of solar power capacity will be 5 to 10 million kWh by then.*

In the wind power sector, the government set a goal close to market estimation. Liang said that China would establish 7 wind power bases which would have over 10 million kWh of power capacity each. By 2020, China's wind power capacity will reach 150 million kWh.

*China's target for water power and biomass energy remained unchanged. By 2020, these two sectors are expected to have capacity of 300 million kWh and 30 million kWh respectively. Nuclear power will "see considerable growth," said Liang.*

Capacity is not the Chinese government's only goal, Liang noted. "We are in pursuit of not only capacity, but also technology and industrial competitiveness."

*Liang estimated that by 2020, China's renewable energy use will be equivalent to 800 million tons of standard coal, or one third of China's current annual energy consumption. By then, China will be able to reduce carbon dioxide emission by 1.8 billion tons annually.*

By People's Daily Online


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## grey boy 2

*China's auto sales, output exceed 12 mln units in first 11 months - People's Daily Online* 13:14, December 07, 2009 

*China's auto sales and output both exceeded 12 million units in the first 11 months this year, said the China Association of Automobile Manufacturers (CAAM) on Monday.*

*The CAAM forecasts the sales and output for the whole year would both exceed 13 million units. *

Source: Xinhua


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## bigmoneymaker

SEADOG, WHAT SHOULD I SAY ABOUT YOU..RECKLESS CHILDISH???

SEADOG , DO YOU KNOW THAT FOR A COUNTRY TO PROGRESS YOU HAVE TO TAKE CARE OF THE INTERESTS OF THE EXISTING INTERESTS GROUPS EVEN IF THEY ARE CURRENTLY DOING BAD THINGS TO THE PEOPLE, SINCE STABILTY IS ENSURED BY THE ECONOMIC PROGRESS OF A COUNTRY, WHICH IS A PREMISE FOR IMPROVING THE PEOPLE BASIC RIGHTS NO MATTER IN WHAT TERMS GRADUALLY.....I KNOW THIS STATEMENT HAS SOME PROBLEM BUT THE REASONS BEHIND STILL ARE TENABLE....SMART PEOPLE GET THE WHOLE PICTURE ALREADY....

YOU CANNOT EXPECT A COUNTRY TO CHANGE OVERNIGHT AS YOU VERY LIKELY DONT KNOW THE TRUE NATURE OF HUMANITY, AND OF COURSE OF THE POLITICIANS AND OF THE EXISTING INTERESTS GROUPS BEHIND THE SCENE TO PROVIDE SUPPORTS TO THE PARTY THAT BENEFITS THEM THE MOST........


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## bigmoneymaker

YEAH, I DISCOVERED THAT SEADOG PUT A MANTLE OF FLAG ON HIS IDENTITY , SO I WILL JUST IGNORE HIM...

SUCH A PATHETIC WOXM TRIES TO SHAKE THE WHOLE INEVITABLE TREND......

Reactions: Like Like:
1


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## grey boy 2

*Foreign investors return to China as economy warms up - People's Daily Online* 07:59, December 08, 2009 

*China's economic recovery is alluring back overseas investors who had withdrawn from the country under the tide of the global financial crisis. *

In Qingdao, an eastern China port city, the number of overseas investors coming to make investment in the Chengyang District has been on the rise since June, said deputy head of the district government Li Guixi. 

*Li said, the district approved 146 foreign-funded projects in the first ten months, and involved contracted foreign investment totalled 280 million U.S. dollars, up 2.2 percent year on year.* 

*Li said Swarovski, the world's leading producer of precision-cut crystal, invested more than 100 million U.S. dollars in Chengyang to build its first factory outside Europe in July. *

However, just one year ago, foreign investors were busy evacuating from the district, leaving thousands of workers jobless and their wages unpaid. 

Speaking of his ex-employer's evacuation, Cao Kejun, 59, still broods over his unpaid wage. 

"Had I found that boss from the Republic of Korea (ROK), I would like my 600 yuan (about 87.8 U.S. dollars) back," he spoke with a strong Shandong accent. 

His ex-employer, a ROK investor of a suitcase and bag factory in Qianwangtuan Community, Chengyang District, northern Qingdao, took an overnight evacuation back to his home country ahead of the financial crisis, abandoning DeBest, his factory, with 500 jobless workers. 

Two more ROK investors in the community left without a notice about 11 months ago, leaving 420 more people jobless, said Qi Xide, who was in charge of management of enterprises in the community. 

Due to the global crisis, the inflow of foreign direct investment (FDI) to China began to slow down in the fourth quarter last year, and as of July this year, the FDI China received had decreased year on year for 10 consecutive months, according to the Ministry of Commerce. 

*In November last year, the Chinese government adopted a massive economic stimulus package, including raising export tax rebate and other measures, to halt the drastic FDI decline and combat the crisis, which turned out to be effective in boosting economy. *

*The country's gross domestic product (GDP) grew 8.9 percent year on year in the third quarter, accelerating from 7.9 percent in the second quarter and 6.1 percent in the first. In the third quarter last year, it increased 9 percent year on year.* 

With favorable policies and the economy picking up, investors that once had doubts in China's economy and business environment had come to discuss investment with the local governments, said Li Guixi. 

*Nationally, the latest data had shown that China saw a third consecutive monthly increase in FDI in October by attracting 7.1 billion U.S. dollars, up 5.7 percent from the same period last year. *

Young-Su Park, the China president of a ROK company, expressed great confidence in further growth of China's economy, which he said means greater demand for infrastructure investments. 

His company, Leading Solution, which mainly produces air-conditioners and farm machineries, had just invested 48 million U.S. dollars for a new farm machinery factory in Chengyang, capital of northeastern Liaoning Province. 

*"Investors have reasons to leave, and now they find reasons to come back," said Park.* 

In Qianwangtuan of Qingdao, the old building of DeBest is now taken by a new ROK-funded factory. 

"With three new foreign-funded factories going into operation this year, workers are starting to work overtime again," said Qi, the administrator. 

Cao, just like his ex-colleagues, has found a new job. He is now working as a cleaner in the Qianwangtuan community and earns 600 yuan a month. 

Source: Xinhua


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## grey boy 2

*China's auto sales, output exceed 1 mln in Nov. - People's Daily Online*
08:05, December 09, 2009 

*China's auto production and sales almost doubled the previous year figures to reach 1.39 million and 1.34 million units in November, the China Association of Automobile Manufacturers (CAAM) said Tuesday.*

*Overall auto production topped 12.27 million units in the first11 months, up 41.59 percent from the same period last year; auto sales stood at 12.23 million in the January-November period, up 42.39 percent year on year.*

The association forecast sales and output for 2009 would both surpass 13 million units.

*The country's largest auto maker, the Shanghai Automotive Industry Corporation, sold about 2.43 million auto units in the first 11 months, up 54.51 percent year on year.*

The association attributed the increases to a series of government stimulus measures to boost domestic consumption.

China in January halved the purchase tax on passenger cars to five percent for models with engine displacements of less than 1.6liters, a move to shore up domestic auto consumption.

Source: Xinhua


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## grey boy 2

*China to launch high-speed railway from central to south China - People's Daily Online*
December 09, 2009 

*Drivers lead the train trough the tunnel on the Wuhan-Guangzhou Railway, Dec. 9, 2009. The High-Speed Passenger-dedicated Wuhan-Guangzhou Railway, which extends to 1068.6 km in full length and scheduled to be operational by the end of 2009, has made its trial operation on wednesday.* (Xinhua/Lu Hanxin)


&#12304;1&#12305; &#12304;2&#12305; &#12304;3&#12305;


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## grey boy 2

*China to further boost domestic consumption in 2010: State Council - People's Daily Online* 20:58, December 09, 2009 

*China's State Council said Wednesday that the government will continue to tap into the domestic market for a stable and relatively rapid economic growth next year. *

Policies to boost consumption will be further strengthened and most of the current policies will be continued, according to an executive meeting of the State Council, chaired by Premier Wen Jiabao. 

*China will continue to expand domestic consumption next year and especially to highlight consumption's role in boosting economic growth, as China's economy will still face many challenges next year, according to the meeting. *

*Policies to subsidize rural households to buy electric appliances will be continued next year and policies to subsidize rural households to buy automobiles will be prolonged to the end of next year. *

*After home appliance replacement ended trial operation in May next year, the policies will be fully carried out and further promoted. Measures to subsidize agricultural equipment will be continued. *

Policies to reduce purchase tax on passenger cars will be continued but adjusted to 7.5 percent for models with engine displacements of less than 1.6 liters. 

The central government has implemented a series of policies in improving people's living standards and promoting consumption since the fourth quarter in 2008 to fight the global financial crisis. 

*The policies have effectively tapped consumption potentials and boosted China's economic recovery, according to the meeting. *

The meeting also issued a guideline on trial operation of social insurance fund budget to put social insurance fund under government budget management. 

Source:Xinhua


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## Seadog1

Chinese Outrage,, The Wall Street Journal 2006

News that Chinese police shot and killed local villagers protesting land seizures last week conjures up remembrances of past instances of brutality on the mainland. While the scale of each outrage differs, the root problems haven't changed in recent years: the lack of official transparency, the absence of true property rights and high-handed dispute settlement methods. What a shame that today's Chinese leaders, initially thought to be progressive, are doing so little to change the way the ruling party deals with China's citizens.

The latest brutishness is said to have occurred in the village of Dongzhou, a coastal spot located in the southern China province of Guangdong. International news agencies claim up to 20 people were shot dead after protesting the construction of a power plant that would require landfill in waters traditionally used for fishing. China's official Xinhua News agency -- breaking days of silence -- put the fatality count at three on Saturday, blaming a "chaotic mob" for provoking the police. The villagers contest this account. News reports claimed that some were offered hush money by the local authorities. Xinhua didn't address this assertion.

The haze of incomplete information continues at the time of this writing, not least because police heavies have now sealed off Dongzhou to visitors. Imagine the chaos that must be roiling the place.

Cover-ups are the knee-jerk reactions of all repressive regimes, but it is particularly acute in China, where the authorities even try to monitor and censor Internet blogs. The trouble is, as the mainland's economy grows, its citizens' access to outside information grows, too, regardless of how hard the state tries to crack down. So does their ability to organize. Mobile phones are already transforming the ability of ordinary Chinese to contact each other and the outside world. Earlier this year, a mobile phone video showing paramilitary thugs beating Chinese villagers to a pulp was leaked, broadcast on the BBC and posted on the Washington Post's Web site.

These sorts of incidents aren't supposed to happen in coastal areas like Dongzhou. According to widely-held myth, China's "agricultural" classes in the interior provinces are upset with the wealth accrual of the coastal city-dwellers, and therein lies the problem. That explanation doesn't hold up. Dongzhou is located in a relatively prosperous region, on the outskirts of the city of Shanwei and close to China's shining star, the city of Hong Kong. Beijing has been pouring money into Shanwei, building an industrial zone and planning various power plants. The villagers' dispute, it seems, is more about perceived property rights infringements than worrying about whether a neighbor is better off.

In an ideal communist society, land is shared by all and property rights theoretically don't exist. In practice, however, these lines blur, which is part of the reason why, ultimately, communism fails. If a farmer's family has tilled a plot of land for several generations, does he assert a type of ownership over it? And if he can't transfer this land for profit, what incentive has he to maintain it, besides subsistence? As the Chinese government has seized agricultural land for industrial purposes, discontent has grown.

Unfortunately, any good intentions by the Chinese state are often undermined by corruption on the local level. Furthermore, many Chinese are unable to settle their complaints through effective legal channels. And so they revert to the only thing they can think of: protests.

Official arrogance is spurring a burgeoning rights consciousness in China, one which will likely only grow over time. The protest in Dongzhou is only a small manifestation of it. Over 70,000 people have participated in protests this year, according to official numbers. "Barefoot lawyers" are heading out into the countryside to educate citizens on what they can, and cannot, claim as crimes. Rural folks are increasingly taking advantage of their ancient right to "petition," or head to Beijing and ask the state to redress local grievances. We've been told that petitioners are now so desperate for help that they're starting to gather regularly in front of the U.S. Embassy.

The Communists in Beijing aren't blind to this state of affairs. In fact, sources tell us that the top leadership is genuinely afraid that their country -- a diverse collection of ethnicities, religions, and languages -- is cracking around the edges. In the new five-year plan announced last month, Beijing rolled out a new euphemism, "harmonious and sustainable development," meant to emphasize the distribution of the gains from economic growth more widely and to promote "stability."

The problem is that this kind of approach -- as the Soviet Union discovered -- doesn't work. When an economy is growing fast, it's impossible to control every facet of it. And the point isn't to ensure that everyone is compensated equally; rather, it's to ensure that citizens have access to the same starting point, such as decent education, a fair legal system to protect them, and transparent political representation. Where citizens go from there is their problem.

Political instability is Beijing's worst nightmare. But dealing with protests as in Dongzhou with dictated economic plans, brute force and cover-ups is fated to backfire. The ruling party isn't finding solutions but merely displaying the nastiness of authoritarianism.


----------



## grey boy 2

Seadog1 said:


> Chinese Outrage,, The Wall Street Journal 2006
> 
> News that Chinese police shot and killed local villagers protesting land seizures last week conjures up remembrances of past instances of brutality on the mainland. While the scale of each outrage differs, the root problems haven't changed in recent years: the lack of official transparency, the absence of true property rights and high-handed dispute settlement methods. What a shame that today's Chinese leaders, initially thought to be progressive, are doing so little to change the way the ruling party deals with China's citizens.
> 
> The latest brutishness is said to have occurred in the village of Dongzhou, a coastal spot located in the southern China province of Guangdong. International news agencies claim up to 20 people were shot dead after protesting the construction of a power plant that would require landfill in waters traditionally used for fishing. China's official Xinhua News agency -- breaking days of silence -- put the fatality count at three on Saturday, blaming a "chaotic mob" for provoking the police. The villagers contest this account. News reports claimed that some were offered hush money by the local authorities. Xinhua didn't address this assertion.
> 
> The haze of incomplete information continues at the time of this writing, not least because police heavies have now sealed off Dongzhou to visitors. Imagine the chaos that must be roiling the place.
> 
> Cover-ups are the knee-jerk reactions of all repressive regimes, but it is particularly acute in China, where the authorities even try to monitor and censor Internet blogs. The trouble is, as the mainland's economy grows, its citizens' access to outside information grows, too, regardless of how hard the state tries to crack down. So does their ability to organize. Mobile phones are already transforming the ability of ordinary Chinese to contact each other and the outside world. Earlier this year, a mobile phone video showing paramilitary thugs beating Chinese villagers to a pulp was leaked, broadcast on the BBC and posted on the Washington Post's Web site.
> 
> These sorts of incidents aren't supposed to happen in coastal areas like Dongzhou. According to widely-held myth, China's "agricultural" classes in the interior provinces are upset with the wealth accrual of the coastal city-dwellers, and therein lies the problem. That explanation doesn't hold up. Dongzhou is located in a relatively prosperous region, on the outskirts of the city of Shanwei and close to China's shining star, the city of Hong Kong. Beijing has been pouring money into Shanwei, building an industrial zone and planning various power plants. The villagers' dispute, it seems, is more about perceived property rights infringements than worrying about whether a neighbor is better off.
> 
> In an ideal communist society, land is shared by all and property rights theoretically don't exist. In practice, however, these lines blur, which is part of the reason why, ultimately, communism fails. If a farmer's family has tilled a plot of land for several generations, does he assert a type of ownership over it? And if he can't transfer this land for profit, what incentive has he to maintain it, besides subsistence? As the Chinese government has seized agricultural land for industrial purposes, discontent has grown.
> 
> Unfortunately, any good intentions by the Chinese state are often undermined by corruption on the local level. Furthermore, many Chinese are unable to settle their complaints through effective legal channels. And so they revert to the only thing they can think of: protests.
> 
> Official arrogance is spurring a burgeoning rights consciousness in China, one which will likely only grow over time. The protest in Dongzhou is only a small manifestation of it. Over 70,000 people have participated in protests this year, according to official numbers. "Barefoot lawyers" are heading out into the countryside to educate citizens on what they can, and cannot, claim as crimes. Rural folks are increasingly taking advantage of their ancient right to "petition," or head to Beijing and ask the state to redress local grievances. We've been told that petitioners are now so desperate for help that they're starting to gather regularly in front of the U.S. Embassy.
> 
> The Communists in Beijing aren't blind to this state of affairs. In fact, sources tell us that the top leadership is genuinely afraid that their country -- a diverse collection of ethnicities, religions, and languages -- is cracking around the edges. In the new five-year plan announced last month, Beijing rolled out a new euphemism, "harmonious and sustainable development," meant to emphasize the distribution of the gains from economic growth more widely and to promote "stability."
> 
> The problem is that this kind of approach -- as the Soviet Union discovered -- doesn't work. When an economy is growing fast, it's impossible to control every facet of it. And the point isn't to ensure that everyone is compensated equally; rather, it's to ensure that citizens have access to the same starting point, such as decent education, a fair legal system to protect them, and transparent political representation. Where citizens go from there is their problem.
> 
> Political instability is Beijing's worst nightmare. But dealing with protests as in Dongzhou with dictated economic plans, brute force and cover-ups is fated to backfire. The ruling party isn't finding solutions but merely displaying the nastiness of authoritarianism.



Damn you stupid troll, posting an article wasn't even found in wall-

street journal, posting thing about human right stuff dated back 1999 on

an economy thread, posting article without LINK.

*You are being reported*, don't you think you can get away with your

evil intention to ruin the thread.

Now get the hell out of here, you low life loser !!

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1


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## grey boy 2

*CNOOC announces new deepwater gas finding in South China Sea - People's Daily Online* December 10, 2009

*China National Oil Company Limited (CNOOC Ltd.) announced Wednesday that its partner, Husky Oil China Limited, a subsidiary of Canada-based Husky Energy Inc., has made a new deepwater gas discovery in the South China Sea. *

The Liuhua34-2 finding becomes the second deepwater gas discovery following the Liwan3-1 discovery, made by CNOOC Ltd. And its partner in the Pearl River Mouth Basin in the eastern South China Sea. 

The Liwan3-1 discovery was made on deepwater Block 29/26 in the South China Sea in 2006. The Liuhua34-2 discovery is also in the Block 29/26. 

The discovery well Liuhua34-2-1 is located about 23 kilometers northeast of Liwan3-1 gas field. The total vertical depth of the well is 3,449 meters, and the water depth is the area is about 1,145 meters. 

*Test results of the well show that it produced 55 million cubic feet of natural gas per day, which indicates the well's future deliverability could exceed 140 million cubic feet per day. *

Zhu Weilin, executive vice president of the CNOOC Ltd. and general manager of exploration department said that the new deepwater discovery Liuhua34-2 further demonstrates the huge potential in the deepwater area in the South China Sea. 

The two adjacent discoveries could be developed in a more efficient way through sharing development facilities, said Zhu. 

*In order to determine the full potential of the Liuhua34-2 field, an appraisal well is planned to be drilled in early 2010 by Husky.* 

*Husky started exploring in offshore China in 2002. Husky signed a Petroleum Contract for Block 29/26 in 2004, which is 2,230 square kilometers in area. *

The Liwan3-1 natural gas field was discovered in June, 2006. Husky expects the plan of development for the Liwan3-1 Field to be submitted to the regulatory authorities in early 2010. First gas production is targeted to be in the 2013 time frame, according to the statement posted on the website of Husky Energy. 

*According to the production sharing contract, CNOOC Limited has the right to participate in up to 51 percent working interest in any commercial discoveries on Block 29/26. *

CNOOC Ltd. is the listed subsidiary of China National Offshore Oil Corporation, China's largest offshore oil company. 

Husky Energy is an integrated energy and energy-related company headquartered in Calgary, Alberta, Canada. 

The concept of deepwater varies against time as probing technology develops. For the time being, deepwater refers to the area in the sea where the depths from the sea surface to the seabed are above 300 meters. 

Source: Xinhua


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## Communist

*China launches 'Yaogan VII' remote-sensing satellite*
(Xinhua)
Updated: 2009-12-09 22:16







A Long March 2D rocket carrying the remote-sensing satellite "Yaogan VII" lifts off from the Jiuquan Satellite Launch Center in northwestern GansuProvince, December 9, 2009.[CFP]






A Long March 2D rocket carrying the remote-sensing satellite "Yaogan VII" lifts off from the Jiuquan Satellite Launch Center in northwestern GansuProvince, December 9, 2009.[CFP]

JIUQUAN, Gansu: China launched Wednesday a remote-sensing satellite, "Yaogan VII," from the Jiuquan Satellite Launch Center in northwestern Gansu Province.

The satellite was successfully launched into the space on a Long March 2D carrier rocket at 4:42 p.m., the center reported.

It will be mainly used for scientific experiment, land resources survey, crop yield estimates and disaster prevention and reduction, according to the center.

The satellite was developed by the China Academy of Space Technology under the China Aerospace Science and Technology Corp. The rocket was designed by the Shanghai Academy of Spaceflight Technology, also under the corporation.

The flight was the 120th of the Long March series of carrier rockets. 

China launches 'Yaogan VII' remote-sensing satellite


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## grey boy 2

Seadog1 said:


> No matter how well China economy does, its going to have major problems if China does not have poltical stability...
> here is link you are so excited about,,,,
> China's Latest Outrage - WSJ.com



Damn troll, you make it up 2006, instead its dated back 2005, its

show your evil intention, why post article dated back 1999, 2005 ?

whats human right, political problem had to do on a economy thread.
*
I will keep reporting you until mod. take action.*


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## aimarraul

*Magnificent Wuhan Railway Station*
07:57, December 11, 2009 





The main building of Wuhan Railway Station lights up for test, Dec. 9, 2009. Wuhan Railway Station locates in Wuhan, capital of central China's Hubei Province, and has 11 platforms ,a total of 20 track. The station costing more than 14 billion RMB yuan (2.4 billion U.S. dollars) is scheduled to be put into use on Dec. 20. It is the first station built for the Wuhan-Guangzhou high speed railway passenger special line. 






An interior view of the under-construction Wuhan Railway Station is seen in this photo taken on Dec. 10, 2009 in Wuhan, capital of central China's Hubei Province.






An interior view of the under-construction Wuhan Railway Station is seen in this photo taken on Dec. 10, 2009 in Wuhan, capital of central China's Hubei Province.(Xinhua/Cheng Min)

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## grey boy 2

*China urban fixed-asset investment up 32.1% in first 11 months - People's Daily Online* 10:13, December 11, 2009 

*China's urban fixed-asset investment rose 32.1 percent in the first 11 months, the National Bureau of Statistics said Friday.* 


Source: Xinhua


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## grey boy 2

*China's electricity power production up 26.9% in November - People's Daily Online* 11:03, December 11, 2009 

*China's electricity power production increased by 26.9 percent in November year on year, the National Bureau of Statistics said Friday.* 

In October, the country's power production climbed 17.1 percent. 

Source: Xinhua


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## oct605032048

aimarraul said:


> *Magnificent Wuhan Railway Station*
> 07:57, December 11, 2009
> 
> 
> 
> 
> 
> 
> 
> 
> An interior view of the under-construction Wuhan Railway Station is seen in this photo taken on Dec. 10, 2009 in Wuhan, capital of central China's Hubei Province.
> 
> 
> 
> 
> 
> 
> An interior view of the under-construction Wuhan Railway Station is seen in this photo taken on Dec. 10, 2009 in Wuhan, capital of central China's Hubei Province.(Xinhua/Cheng Min)



it runs at 394kmph.


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## Communist

China boosts energy tie with Kazakhstan

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## oct605032048

China's auto sales, output exceed 12m units in Jan-Nov

China's auto sales and output both exceeded 12 million units in the first 11 months, the China Association of Automobile Manufacturers (CAAM) announced Monday.
The CAAM forecast sales and output for the whole year would both exceed 13 million units.
In November alone, sales reached more than 1.35 million units, according to preliminary statistics. Detailed figures are expected to be released on Tuesday.

The country's largest auto maker, Shanghai Automotive Industry Corporation, sold about 2.44 million auto units in the first 11 months, up 54 percent year-on-year, while Sino-US joint venture company Shanghai GM sold 627,495 units, up 50.5 percent.

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## oct605032048

The most searched for term among mainland Chinese users of Google is "Baidu"  Google's largest rival in China, according to a report recently released by Google itself, the Beijing Times reported yesterday.

Xie Wen, an Internet expert said the fact that Google released the report showed its generosity, and revealed both Baidu's strong competitiveness and Google's own flaws in China.

Google released the Hottest Words by Chinese Mainland, Hong Kong, Macao and Taiwan 2009 on Wednesday.

The report also lists search terms by subject. Among stocks, Vanke A share, China Unicom and Ping An were the most searched for. Shanghai Composite Index, fund, exchange rate Growth Enterprise Board, and paper gold were among the top economic search terms. Google users were also curious about the prices of gold, airplane flights, steel and petrol.

Internet companies occupy all of the top ten spots, and three of them are Chinese online video sites, the report said.

Googling Baidu: Guess what's the most searched word?

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## grey boy 2

*E. China heavy truck maker claims world's 2nd largest output - People's Daily Online* 21:11, December 11, 2009 

China's largest heavy truck maker claimed Friday that its output had become the second largest in the world at its headquarters in Ji'nan City, capital of eastern Shandong Province. 

*"China National Heavy Duty Truck Group Corp. (CNHTC)'s output reached 120,000 Friday, which is second only to Germany auto maker Mercedes-Benz in world heavy truck industry," said Ni Guixiang, head of the company's publicity department. *

*Cai Dong, president of CNHTC, drove the 120,000th truck the company manufactured this year off the production line. He said the truck marked a 11.2 percent year-on-year output growth, which was a remarkable achievement, considering the world economic downturn. *

Source:Xinhua

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## grey boy 2

*Billion-tonne iron ore deposit found in N China - People's Daily Online* 11:11, December 13, 2009 

An 1-billion-tonne iron ore deposit was found in northern Hebei Province, official said Saturday.

*The 6-km long deposit is 41.43 to 108.95 meters thick on average and lies 100 to 600 meters deep underground, said Zhang Shaolian, head of Hebei Provincial Bureau of Land and Resources.*

*The deposit, in Hebei's Luannan County, was the largest ever found in China since the 1980s, Zhang said.*

*In addition to the proved 1.04-billion-tonne iron ore, the deposit has an estimated unproved reserve of 500 million tonnes, Zhang added.*

The deposit is shallow and comparatively easy for mining, he said.

The No.1 Geological Exploration Institute of China Metallurgical Geology Bureau, who had been prospecting the area since February 2008, issued a report with details of the deposit including its reserves, Zhang said.

*The report was reviewed and approved on Aug. 12 jointly by central and provincial land and resources reserve evaluation authorities, he added. *

Source: Xinhua

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## grey boy 2

*HK's Exchange Fund foreign assets increase 116.1 bln HK dollars in Nov. - People's Daily Online* 21:29, December 14, 2009 

*Hong Kong's Exchange Fund reported an increase of 116.1 billion HK dollars in the foreign assets in November, the Hong Kong Monetary Authority released hereon Monday. *

*According to the key analytical accounts of the Exchange Fund, the foreign assets, representing the external assets of the Exchange Fund, amounted to 1,852.4 billion HK dollars at the end of November. *

The Monetary Base, comprising Certificates of Indebtedness, Government issued currency notes and coins in circulation, the Aggregate Balance and Exchange Fund Bills and Notes issued, amounted to 996.1 billion HK dollars. 

*Claims on the private sector in Hong Kong amounted to 137.6 billion HK dollars. *

Foreign liabilities, representing mainly obligations under repurchase agreements, amounted to 0.4 billion HK dollars. 

Source: Xinhua

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## grey boy 2

*World's longest sea bridge begins construction - People's Daily Online*

16:28, December 15, 2009 

*The Hong Kong-Zhuhai-Macao sea bridge began construction on December 15 and Chief Executive Zeng Yinquan of Hong Kong Special Administrative Region attended the ceremony in Zhuhai. *

Extending more than 35 kilometers, the bridge will be the longest of its kind in the world. A six kilometer long tunnel will also be part of the sea bridge and will make construction an extremely difficult task. With an operation life of 120 years, the bridge will be able to withstand magnitude 8.0 earthquakes.

*The bridge will cross through the Pearl River estuary and link Hong Kong, Zhuhai and Macau. The main part of the bridge will be 29.6 kilometers long, and the length of the tunnel will reach 6 kilometers. With a 72 billion yuan investment, the sea bridge will be completed in nearly six years. The bridge, once completed, will shorten the driving time between Zhuhai and Hong Kong from three and a half hours to half an hour. Driving time from Hong Kong to Macao will be shortened to one hour from the current three hours. Built to meet the strictest quality standards, the bridge will be able to withstand magnitude 8.0 earthquakes. Its operation life is 120 years.*

By People's Daily Online

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## grey boy 2

*China's mainland to have first free port by 2020 - People's Daily Online* 09:18, December 16, 2009 

*Hong Kong is often regarded as a shopping paradise by many people from Chinese mainland. Thanks to the free port, imported goods, especially luxuries, cosmetics and digital products, are less expensive than in the mainland.*

*However, Hong Kong may lose the advantage of being the only free port after 2015 because Shanghai is planning to build up an international free port which will not only upgrade Shanghai to become an international shipping center, but also further accelerate the consumption market there.*

Usually a free port is a special customs area with favorable customs regulations (or no customs duties and controls for transshipment). Moreover, imported goods can also be converted, processed, stored long-term or sold in free port. That is why imported goods are less expensive in Hong Kong.

*Shanghai has launched a three-step strategy for building up a free port, according to Xiao Lin, deputy director from Shanghai Municipal Development and Reform Commission*.

First step from 2009 to 2010, Shanghai will launch a series of preferential policies including tax relief in bonded area and promote enterprises to open offshore accounts.

Second step from 2011 to 2015, Shanghai will explore new managerial systems and reform shipping taxation.

The last step from 2016 to 2020, the functions and system of the free port will have basically taken shape in Shanghai. 

By People's Daily Online

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## BlackenTheSky

china rulezz


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## grey boy 2

*Sign of the new times: Foreign money to nation surging - People's Daily Online* December 17 2009

*China's foreign direct investment (FDI) reached its highest total in 16 months during November, sustaining the rising trend since August, a clear signal that the nation's speedy economic recovery is attracting more foreign investors. *

*The FDI climbed as high as 32 percent from a year earlier to $7.02 billion last month, compared with a 5.7 percent bump in October, according to the Ministry of Commerce. *

China's FDI rose by 7 percent in August, the first monthly growth since last October when the financial crisis landed. Foreign investment grew by 19 percent in September. 

The growth for four consecutive months has saved the total FDI from dropping by double digits during the past 11 months. China's FDI fell by 9.9 percent to $77.9 billion from January to November, said the Ministry of Commerce. 

"China's ongoing economic recovery and the low reference point last year are the reasons behind (November's growth)," said Li Wei, an economist from Standard Chartered China. 

*While developed economies, including the United States and Europe, are still weak, China's GDP for the third quarter grew by 8.9 percent year-on-year, one percentage point higher than the second quarter. *

*The World Bank predicted recently that China's GDP will grow by 8.4 percent for the year and 8.7 percent in the upcoming year, much higher than that of developed nations. *

"China's amazingly high economic growth has and will keep it the most attractive destination for international investors," said Li Xiaogang, a professor with foreign investment research center under the Shanghai Academy of Social Sciences. 

*The FDI will grow steadily in the next few months with the monthly figure possibly remaining in the range of $7 billion to $8 billion, predicted the Ministry of Commerce.* 

During the three-day central economic work conference that ended on Dec 7, President Hu Jintao said that China will take efforts to expand domestic spending in the coming year as one way to support stable economic growth. 

"More global companies will flock into sectors related to domestic consumption, such as the service industry, pharmaceuticals, environmental protection and retailing, to tap business opportunities," said Li. 

And there is growing interest in spending-driven sectors from overseas. 

*In the pharmaceutical sector, Novartis International AG, the world's sixth largest pharmaceutical, said in November it will inject $1 billion to strengthen research capabilities in China in five years, to cash in on the nation's rapidly growing medical business industry under the healthcare reform. It also signed an agreement with Tianyuan Bio-pharm to invest in and acquire business from the leading vaccine producer in China. *

*According to the Ministry of Commerce, investment from developed regions, including the US and Europe, declined in November, but those from neighboring nations represented by ASEAN (Association of Southeast Asian Nations) grew by margins. *

*This year, China has taken measures to promote FDI. Song Zhe, head of the Chinese mission to the European Union, said on Tuesday that the nation will step up efforts to boost foreign investment, including opening more opportunities in the service, hi-tech and energy-saving industries; and encouraging foreign companies to be listed domestically. *

Source: China Daily

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## Martian2

*Greater China outnumbers German patents*

China continues to climb the ranks of countries that receive the most patents in the United States.

http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cst_all.htm

Patents granted by the United States for the year 2008.

1. U.S. 92,000 patents
2. Japan 36,679
3. Germany 10,086
4. South Korea 8,731
5. Taiwan 7,779
6. Canada 4,125
7. U.K. 3,843
8. France 3,813
9. Italy 1,916
10. China 1,874
...
Hong Kong 717 (Patent office counts Hong Kong as a separate entity)
India 672
Singapore 450
Russian Federation 181

There are 18,000 Taiwanese companies on the Chinese Mainland. It is my guess that many Chinese exports incorporate not only Chinese patents, but also Taiwanese patents. The Taiwanese were a perennial #4 in U.S. patents received until they were passed by South Korea in 2008.

While the current number of Chinese patents appears to be insufficient to support a large high-tech export base, the combination of Greater China (i.e. Chinese, Taiwanese, and Hong Kong) patents should suffice.

Greater China's 10,370 patents (i.e. China's 1,874 + Taiwan's 7,779 + Hong Kong's 717) are *greater than the number of German patents* at 10,086.

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## Martian2

*China's $610 Billion High-tech Exports*

US-China Trade Statistics and China's World Trade Statistics

As indicated in Table 5, China's top two export categories are "Electrical machinery & equipment" and "Power generation equipment." They account for a total of $610.6 billion US dollars in high-tech exports.

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## Martian2

*China's Advanced Sciences*

Are you aware of the current Chinese advances in nanotechnology, drug delivery, quantum cryptography, material science, etc.?

Here is a sample of the cool products that might result from China's R&D.

Nanotechnology: Tom Mackenzie on China's giant step into nanotech | Technology | The Guardian
http://www.guardian.co.uk/technology/2009/mar/26/nanotechnology-china

BBC NEWS | Health | Nanoparticle lung threat blocked
BBC NEWS | Health | Nanoparticle lung threat blocked

'Nano-raspberries' for Steamy Windows
'Nano-raspberries' for Steamy Windows

Polymers release insulin in response to glucose trigger
http://www.rsc.org/chemistryworld/News/2009/May/07050902.asp

China develops world's first quantum cryptography network
China develops world's first quantum cryptography network

New Super-bouyant Material: Life Preserver Might Float A Horse
http://www.sciencedaily.com/releases/2009/03/090316092837.htm


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## grey boy 2

*Official: Beijing tourism revenue to reach $35 bln in 2009 *
19:35, December 18, 2009 

*Beijing is likely to report 240 billion yuan (35.1 billion U.S. dollars) in tourism revenue in 2009, up 8 percent from the previous year, a municipal tourism official said here Friday.* 

The growth came after 2 million free entrance tickets of major tourist sites were offered this year amid other measures to boost tourism, Gu Xiaoyuan, deputy director of the municipal tourism bureau, told a conference on Beijing tourism market. 

Of all, the revenue in foreign exchange earnings was estimated at 4.46 billion U.S. dollars, flat from last year, Gu said. 

*The revenue earned from domestic tourists is likely to exceed 210 billion yuan, up more than 10 percent year on year. *

*The Chinese capital hosted 125.2 million domestic and overseas tourists in the year to September, an increase of 20 percent from the same period last year. *

*Tourism revenue in the nine-month period climbed 16.5 percent to 186.2 billion yuan. *

Source: Xinhua Official: Beijing tourism revenue to reach $35 bln in 2009 - People's Daily Online


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## grey boy 2

*China creates 10.13 mln jobs in urban China in first 11 months - People's Daily Online* 21:46, December 18, 2009 

*China generated 10.13 million new jobs in urban areas in the first eleven months, as government stepped up efforts to ensure adequate employment, according to the official data released on Friday. *

The urban jobless rate would likely reach 4.3 percent by the end of this year and the total employed will surpass 11 million, Yin Weimin, Minister of Human Resources and Social Security told a national meeting on job promotion and social security work. 

Also at the meeting, Vice Premier Zhang Dejiang urged authorities to maintain the continuity of the employment policy and make every efforts to secure jobs notably for college graduates and rural migrant workers. 

He said the social insurance system should expand coverage, and the beneficiary should enjoy higher insurance income. 

To help more than seven million college graduates land jobs, China has unveiled a slew of measures including offering them incentives to work in rural areas and in small firms, giving financial support for start-ups of their own business, and telling enterprises to provide internships for graduates. 

*Employment rate of college graduates reached 83 percent by the end of October as those measures showed effects. *

*Near 152 million migrant workers found new jobs outside of their hometowns in the first three quarters, a rise of 11.57 million from the same period a year ago. *

Source: Xinhua

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## grey boy 2

*China's King Long bus company sets up assembly plant in Hungary - People's Daily Online* 09:05, December 19, 2009 

*King Long, a bus production company based in Xiamen in southeast China's Fujian province, will build its first European vehicle assembly facility in Hungary, announced Janos Kelemen, manager of King Long Hungary, at a news conference on Friday. *

Kelemen did not give the amount of the investment, but said that the Chinese firm had signed a declaration of intent and the project was already on the drawing board. The assembly plant will be in eastern Hungary, he added, although the specific venue has yet to be decided. He named the southern great plain region and the cities of Gyongyos and Miskolc as possible sites for the plant. 

*The project, fully financed by China, is likely to be implemented within the next six months, he added.*

Source: Xinhua

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## oct605032048

BEIJING: China's foreign trade is projected to grow 15 percent next year, according to a report released by the China Institute for WTO Studies on Friday.

The report forecasts imports to increase by 15 percent and exports up 13 percent.

With the external demand improving and the global economic recovery gaining momentum, "the declining trend of China's exports would come to an end next year," the report says.

The government stimulus package would boost imports through enhancing domestic demand, while the growing competitiveness of Chinese enterprises in the international market would increase exports, said Zhang Hanlin, head of the institute based in the University of International Business and Economics.

Net exports would contribute 0.3 percent to China's GDP growth next year, said Zhang, compared with a minus 4.4 percent this year as predicted by the World Bank in a recent report.

In the first 11 months this year, China's imports and exports totaled US$1.96 trillion, down 17.5 percent compared with the corresponding period last year, according to the General Administration of Customs.
Exports dropped 1.2 percent year on year in November, but were up 2.6 percent from October, the fifth consecutive monthly increase. And imports rose 26.7 percent from year on year.

However, the China Institute for WTO Studies report also warns of rising protectionism against Chinese products in 2010.

Faced with worsening unemployment situation and shrinking market share, some countries tended to make China a scapegoat, said Zhang. "China will suffer from more trade frictions in the years to come."

The report says, in the first nine months this year, 19 countries has launched 88 trade remedy investigations against China, involving 10 billion dollars, a year-on-year rise of 125 percent.

China suffered 14 trade remedy investigations from the United States, involving US$5.84 billion, or 639 percent more than that of the corresponding period last year.

Some countries might resort to new remedy measures which are often in disguised forms but with more destructive effects, Zhang said.


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## oct605032048

MACAO: The Macao Special Administrative Region (SAR) is welcoming its tenth anniversary on December 20. The following are the facts and figures about its economic and social development in the past decade.

With a population of 540,000 and an area of less than 30 square km, Macao is a small city in terms of both natural and human resources. Despite this, Macao has made remarkable progress since its return to the motherland in 1999.

-- In 2000, Macao's economy reported growth after four consecutive years of decline. Its gross domestic product (GDP) increased by 14 percent annually in average from 2000 to 2008.

-- In 2008, the GDP per capita in Macao was 313,091 pataca ($39,036), 2.8 times that of 1999.

-- The fiscal surplus of Macao SAR government increased from less than 13 billion patacas to 100 billion patacas over the last decade.

-- In 2007, Macao received 27 million visits including students and labors. The figure was 10 million in 2001. In 2008, as the government statistics did not include students and labors any more, the figure stood at 22.93 million, 42 times of its population.

-- The unemployment rate declined steadily from the peak 6.8 percent in 2000 to 3 percent in 2008.

-- The government allowance for a Macao resident to maintain the minimum living standard is 2,640 patacas a month now, more than doubling that in 1999.

-- The Macao SAR government raised the annual subsidy to the elderly, 65 and older, to 5,000 patacas in 2009 from 1,200 patacas in 2005 when it started the program.

-- The life expectancy from 2005 to 2008 averaged 82 years, compared to 77.9 years from 1996 to 1999.

-- In 2009, each permanent resident received 6,000 patacas of government bonus and a health-care coupon worth 500 patacas. Each non-permanent resident received 3,600 patacas.

-- In 2008, Macao's social insurance fund had 250,000 beneficiaries, up from 115,000 in 1999.

-- In the 2007-2008 academic year, Macao became the first region, ahead of Hong Kong, Taiwan and the mainland, to provide 15-year free education program for its residents.

-- The Macao SAR government spent 1.02 billion patacas in providing free education in the 2008-2009 academic year, up from 370 million patacas in the 1999-2000 academic year.

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## grey boy 2

East-west China highway completed - People's Daily Online

10:35, December 20, 2009 

A highway section started a trial operation Saturday, marking the completion of China's east-west trunk line linking Shanghai to Chongqing. 

*The 320-km-long Hurongxi Section, in Hubei Province, finally joined up the 1,900-km-long Shanghai-Chongqing National Highway, reducing trip between the two destinations to 17 hours. *

Construction of the section started seven years ago, during which workers erected 370 bridges, dug 46 tunnels and paved roads through steep mountain ranges by overcoming rare technical difficulties. 

*The project, involving 20.4 billion yuan (3 billion U.S. dollars) in investment, also greatly saved travel hours and improved traffic conditions in Hubei. *

Source: Xinhua


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## grey boy 2

*China's industrial output to grow 11 pct this year: minister - People's Daily Online* 13:09, December 21, 2009 

*China's industrial output is expected to post an 11 percent rise from a year earlier this year, buoyed by the government's stimulus packages, Minister of Industry and Information Technology Li Yizhong said Monday.* 

*Li made the forecast at a two-day conference starting Monday in Beijing, adding the industrial output development would ensure the 8 percent growth of the country's gross domestic production the government had projected for this year. *

Source: Xinhua


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## grey boy 2

*China's GDP per capita to reach $4,000 - People's Daily Online* 16:53, December 21, 2009 

*China's GDP per capita will approach 4,000 U.S. dollars by the end of next year, according to Li Peilin, director of the Institute of Sociology from Chinese Academy of Social Sciences.*

In the last two years, China's GDP per capita (dollar-denominated) maintained a fast growth rate, said Li. 

*From 1978 to 2000, China's GDP per capita increased from less than 400 U.S. dollars to more than 800 U.S. dollars.*

*But the growth rate has picked up the pace since 2000. In 2003, China's GDP per capita surpassed 1,000 U.S. dollars. In 2008, it reached 3,000 U.S. dollars.*

*Li said that three reasons contributed to the fast growth rate of GDP per capita, including the high speed growth of China's economy, the decrease of newly-born population, and the appreciation of yuan.*

By People's Daily Online


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## grey boy 2

*Nuclear power plants set to go inland - People's Daily Online* 08:19, December 22, 2009

Construction of two or three inland nuclear power plants is expected to start by the end of next year, in a move that would further enhance the use of clean energy in China, according to sources familiar with the subject. 

*The new plants will use the AP1000 technology developed by US-based nuclear equipment firm Westinghouse. Nuclear projects will have a longer life cycle and improved safety by using the third-generation technology, said the sources. *

These nuclear projects still need to get the final approval from the government, the sources said, without providing any further details. 

*Indications are that the projects would be Taohuajiang power plant in Hunan province, Xianning in Hubei province and Pengze in Jiangxi province, said industry insiders. The three projects are the first batch of inland nuclear power plants in the country. *

The Hubei project is expected to generate electricity after four years, said media reports citing Wang Yanbin, deputy Party secretary of Tongshan county, where the project is located. 

"Inland nuclear power projects will not only improve the power supply in the area, they will also help boost the economy of those regions, as they are always large projects which require large investment," said Fu Manchang, a nuclear power analyst. 

*Development of inland nuclear power is inevitable for the long-term growth of the nuclear power sector, said analysts. At present all the nuclear power projects that are in operation are in the coastal regions of China. *

Though the development of inland nuclear power has been widely discussed, doubts still persist on the safety and environmental impact of the projects. 

But with the use of the third generation technology, the most advanced in the world, the safety and environmental issues have been largely addressed, said an expert with State Nuclear Power Technology Corp (SNPTC) who declined to be named. 

*Compared with reactors using first- or second-generation technology, reactors with third-generation technology are simpler in design, thus reducing capital costs. They are also more fuel-efficient and safer, he said. *

SNPTC, mainly responsible for the domestic development of nuclear power using third-generation technology from overseas, signed agreements with the Taohuajiang and Xianning projects for design and equipment supply, he said. 

China has chosen AP1000 technology to build four nuclear reactors in coastal regions, two in Zhejiang and two in Shandong. 

*There are 11 nuclear reactors in operation in the country, with a combined installed capacity of 9,080 mW, according to the China Electricity Council. Three nuclear power bases have also been developed at Qinshan in Zhejiang province, Daya Bay in Guangdong province and Tianwan in Jiangsu province. *

Source: China Daily


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## grey boy 2

*China IPO yields expected to triple in 2010: analysts - People's Daily Online* 08:16, December 22, 2009 

Funds raised through IPOs on the Shanghai Stock Exchange next year will be triple those raised this year, according to projections from accounting firm Ernst & Young.

*Terence Ho, Strategic Growth Markets Leader for Ernst & Young, predicted that the abundant supply of stocks wouldn't lead to a market plunge. The firm's report released Monday said next year's IPOs on the SSE would raise 380 billion yuan ($55.6 billion), up from this year's 118 billion yuan ($17.3 billion). About 447 billion yuan ($65.4 billion) was raised from 120 IPOs in 2007.*

Ernst & Young expects 30- 40 IPOs on the exchange next year, with most coming from financial and industrial firms, said Ho.

The firm's estimate on the number of IPOs next year comes from the number of companies already approved and those waiting to apply for an IPO.

The new IPOs next year won't lead to an oversupply on the stock market, because "the raised funds are only a small part of the trading volume," and investor confidence is trending upward, Ho said.

"The stimulus policy pushed up the economy, and the market liquidity is likely to be maintained," Ho said. "Market demand is still strong on IPOs after 9 months of suspension following the fourth quarter of 2008. With these combined factors, we think the IPO market will continue to be strong next year, but won't reach the level of 2007."

*The report also estimated funds raised on the Hong Kong Stock Exchange (HKEX) next year will hit HK$370 billion ($47.7 billion), 28 percent more than the historic high of HK$290 billion ($37.4 billion) from 2007.*

That's due to the exchange's allowing companies incorporated in more overseas locations, such as Australia and Germany, to list on the exchange. Currently the only foreign companies enjoying such access to the HKEX are those incorporated in the Cayman Islands and Bermuda.

*The HKEX surpassed the SSE this year with HK$246 billion ($31.7 billion) raised in 64 IPOs. Companies incorporated and operating in the Chinese mainland, including Sinopharm Group and China Minsheng Banking, accounted for 35 percent of the raised funds and 9 percent of the IPO numbers on the HKEX.*

*The HKEX will also attract listings from a number of overseas natural resources companies in 2010, due to better liquidity and higher prices that the market is willing to offer, Ho noted.*

The Shenzhen Stock Exchange (SZSE) known for medium- and small-sized enterprises, and the alternative ChiNext exchange, ranked top with 90 IPOs in 2009, but were only fifth in terms of funds raised, with 58 billion yuan ($8.5 billion).

Source: Global Times


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## grey boy 2

*Mainland rail builder steps up overseas expansion pace - People's Daily Online* 08:21, December 22, 2009 

*China Railway No 2 Engineering Group Co Ltd, (formerly China Railway Erju Co Ltd), the leading railway construction contractor in China, is finalizing an agreement with the Algerian government for the construction of a railway project in that nation, a senior company executive said. *

*The deal is worth 1.5 billion euros ($2.15 billion), Zheng Jianzhong, vice-chairman of the company said in an exclusive interview with China Daily, while providing few other details on the agreement. *

The Sichuan-based company, a unit of China Railway Group, is also bidding for railway and highway projects in Southeast Asia, including Malaysia and Vietnam, as well as the African nations of Ethiopia and Morocco, as part of an effort to expand into overseas markets, Zheng said. 

*The Shanghai-listed contractor's current overseas businesses generated 300 million yuan this year, only accounting for 1 percent of its total revenues. But Zheng said overseas business is expected to contribute 5 to 10 percent of total sales in the near future. *

The company is one of the largest beneficiaries of China's 4 trillion yuan stimulus package largely allocated to infrastructure construction projects such as railways and highways. 

*Zheng expects China Railway No 2's revenue to reach 40 billion yuan this year - a 50 percent jump over last year - as a result of accelerated infrastructure and reconstruction work following the devastating earthquake that hit Sichuan province last year. *

*Revenue of State-owned competitor, China Railway Construction Corp, is also expected to grow by over 20 percent this year.* 

*Construction and installation made up the largest part of China Railway No 2's revenue with over 30 billion yuan generated from this sector. The contractor also engages in retailing and logistics, which together contributed 3 billion yuan. *

The builder is also considering investing in Beijing's property sector which is heating up rapidly and the group now holds a land reserve of 4 million sq m, according to the vice-chairman. 

Source: China Daily


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## grey boy 2

*Bullet train won't derail growth: govt - People's Daily Online* 08:24, December 24, 2009 

The construction of a nationwide high-speed passenger-rail network will be an engine driving China's economy, the Ministry of Railways said Wednesday, refuting an earlier report that the system may instead put the brakes on the nation's economic growth.

The 350-kilometer-per-hour railway linking Wuhan and Guangzhou, set to begin operations Saturday, trumpets China's ambitious 2 trillion-yuan ($293 billion) effort to speed up the country's railway system.

But some people have raised questions as to whether the mammoth project, aimed at boosting the country's GDP growth through infrastructure investment, will be too much for travelers to afford, and whether it will be a drag on the economy in the long term.

Michael Pettis, the former head of emerging markets at former global investment bank Bear Stearns, said that the time-saving rail service "may not justify the cost," according to a Tuesday report by Bloomberg.

The article suggested that the high-speed network is symbolic of a stimulus program that places too much emphasis on infrastructure spending and not enough on raising living standards in a country where the average urban worker made 28,898 yuan last year, a tenth of the $39,653 average wage earned in the US.

"If America had its subprime crisis, in China we have a railroad-debt crisis. Or you could call it a government-debt crisis," Zhao Jian, a professor of economics at Beijing Jiaotong University, said during a televised interview in September.

However, Li Jun, transport director for the Ministry of Railways, told the Global Times that such worries were unjustified, citing the Beijing-Tianjiin high-speed rail as a successful endeavor.

Launched in August of last year, the Beijing-Tianjiin high-speed rail makes the journey between the two cities in just 30 minutes, half the normal traveling time. Its average speed is 350 kilo-meters an hour.

He said an average of 70 percent of seats for the Beijing-Tianjiin service were sold during its first year of operation, enough to offset expenses. The second-fastest train service, known as multiple-unit trains that run at 200 kilometers an hour, enjoyed the largest occupancy rate, at 112 percent.

"Since the launch of the high-speed service, Beijing and Tianjin saw the fastest economic growth among other cities across the country, and Tianjin posted a 35 percent growth in tourism," he said.

China stepped up its railway-development program last year in the wake of the global financial crisis, promising to increase the passenger network to 12,000 kilometers by 2020. High-speed rail service is part of that effort.

&#12304;1&#12305; &#12304;2&#12305;


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## grey boy 2

*China's nuclear power giants ink 5.3-bln-yuan contract - People's Daily Online* 08:14, December 24, 2009 

*The China Nuclear Engineering Group (CNEG) and the China Guangdong Nuclear Power Holding Corporation (CGNPC) signed on Wednesday a 5.3-billion-yuan (776 million U.S. dollars) nuclear island installation contract, the biggest of its kind in the country. *

*According to the contract, the China Nuclear Industry 23rd Construction Corporation under the CNEG would install six 1,000MW nuclear generator units in Fujian, Guangdong and Guangxi, and two 1,750MW nuclear generator units in Guangdong for the CGNPC. *

The signing of a installation contract on such a large scale showed that the country's nuclear power construction had "entered a new stage," said Mu Zhanying, general manager of CNEG. 

*China now has 11 nuclear reactors, with a total nuclear power installed capacity of 9.08 GW, Pan Ziqiang, director of the Science and Technology Committee of China National Nuclear Corporation, said in November. *

*The country's nuclear power installed capacity is expected to top 70 Gigawatts (GW) by 2020. *

Source: Xinhua

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## oct605032048

China revises 2008 GDP growth up to 9.6&#37;
(Xinhua)
Updated: 2009-12-25 10:46
BEIJING: China has revised its gross domestic product (GDP) growth rate for 2008 to 9.6 percent from 9 percent, the National Bureau of Statistics (NBS) said Friday.

That raised GDP for 2008 to 31.4045 trillion yuan from the previous figure of 30.067 trillion yuan, NBS director Ma Jiantang told a press conference.

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## oct605032048

2008 GDP figure revised to $4.6t
By Si Tingting (chinadaily.com.cn)
Updated: 2009-12-25 11:03
China's GDP was revised to be 31.4045 trillion yuan ($4.6 trillion) in 2008, the National Bureau of Statistics (NBS) said today.

The latest revised figure is 1.3375 trillion yuan ($196 billion) more than the number released in February. The adjustment was the result of new data from a just-concluded national economic census.
The NBS also said that in 2008, China's energy consumption per unit of GDP dropped by 5.2 percent year-on-year and is now 12.45 percent lower than the 2005 level. That is slightly more than the previous estimate from February of 2009,which was 4.59 percent.


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## grey boy 2

*World's fastest rail journey starts operation - People's Daily Online* 11:32, December 26, 2009 

*The Wuhan-Guangzhou high-speed railway with the world's fastest train journey with a 350-km-per-hour average speed, started operation Saturday. *

Two passenger trains rolled out the Wuhan Railway Station and Guangzhou North Railway Station at about 9 a.m. and were expected to reach the terminals at 12 a.m., cutting the 1,068.6 km journey to three hours from the previous 10 and a half hours. 

*The service between Wuhan, a metropolis in central China, and Guangzhou City, a business hub in the southern Guangdong Province, was put into trial operation on Dec. 9, reaching a maximum speed of 394.2 km per hour. *

*In 2004, China hailed the completion of the rail line from Guangzhou to Shenzhen, both in Guangdong Province, with a speed of160 km per hour. Now the speed more than doubled within five years, said Xu Fangliang, general engineer in charge of designing the Wuhan-Guangzhou high-speed line. *

*The average of high-speed rail ways is 243 km per hour in Japan,232 km per hour in Germany and 277 km per hour in France, he said. *

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## grey boy 2

*China allocates $104.8 bln for rural development - People's Daily Online * 09:21, December 26, 2009 

*China has earmarked 716.1 billion yuan (104.8 billion U.S. dollars) from the central budget this year for agriculture, rural areas and farmers, the Ministry of Finance said Friday in a statement. *

*That was 120.59 billion yuan more than that in 2008, which has helped to further stabilize the development of the agriculture and increase farmers' income, according to the statement on the ministry's website.* 

Farming-related subsidies including subsidies for food, agricultural material, seeds, and agricultural machinery and tools in 2009 stood at 123.08 billion yuan, up 19.4 percent year on year, the statement said. 

*A total of 264.22 billion yuan were allocated to improve agricultural infrastructure construction, including reinforcing the dilapidated small-sized reservoirs and purifying small-sized contaminated watersheds. 

The central government also arranged 269.32 billion yuan to enhance public services in rural areas, according to the statement. *

The central government vowed in this year's Central Economic Work Conference, which wrapped up on Dec. 10, to devote more efforts in 2010 to promote agriculture development, strengthen produce supply to the market, and expand rural demand. 

Source:Xinhua

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## Evil Flare

We must follow on Footsteps of CHINA

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## PWFI

yes ,with Mr.10&#37; i am sure will learn to all third worl nations how to become future tiger of asia! Pakistan ka allah hafiz at the moment


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## SinoIndusFriendship

Aamir Zia said:


> We must follow on Footsteps of CHINA



Viet Nam is already doing that, and they are doing quite well! Self-sufficient and decent people.


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## grey boy 2

*China's electrified railway mileage exceeds 30,000 kilometers - People's Daily Online* 09:36, December 27, 2009 

*China's electrified railway mileage has surpassed 30,000 kilometers, ranking the second in the world, said the China CREC Railway Electrification Bureau Group (CCREBG) on Saturday. *

It achieved the goal with the completion of a 1,422.2-kilometer electrified railway line which connects Beijing and Lehua in south China's Jiangxi Province on Saturday, according to the CCREBG. 

*The project, involving an investment of more than 7.6 billion yuan (or1.112 billion U.S. dollars), will increase the trains' speed from 120 kilometers to 160 kilometers per hour and raise the transportation volume from 3,500 tonnes to 6,000 tonnes by each train. *

*The operation of this railway links the electrified railways in the country's central and eastern regions, and it would help to ease transportation strains on the Beijing-Kowloon Railway, according to the CCREBG. *

Source: Xinhua

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## grey boy 2

*China predicts 10 bln tonnes of iron ore reserves in Hebei Province - People's Daily Online* 10:11, December 27, 2009 

*Exploration work in the eastern region of north China's Hebei Province shows potential iron ore reserves in this area is estimated to top 10 billion tonnes, the China Metallurgical Geology Bureau (CMGB) said Saturday.* 

*A total of 3.44 billion tonnes of iron ore has been verified in five mines in the province, said Yan Xueyi, director with the CMGB. *

The discovery of this deposit would largely ease the shortfall in China's domestic iron ore supplies and contribute to a sound and sustainable development of the country's steel industry, according to Yan. 

*China imported 443.56 million tonnes of iron ore in 2008, bringing the country's reliance on imported iron ore to around 50 percent.* 

*The country's steel mills suffered an unfavorable position during the annual iron ore pricing talks as overseas miners alliedto ask for a higher price.* 

Source: Xinhua

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## grey boy 2

*Wuhan Iron and Steel to expand output by 24% next year - People's Daily Online*
12:06, December 26, 2009

Wuhan Iron and Steel Group (Wugang), China's third-largest steel maker, plans to increase production by 24 percent next year as demand recovers amid the reviving economy, China Daily reported Saturday citing the company's statement. 

*Wugang expected to produce 37.9 million tonnes of crude steel next year, up from a forecasted 30.5 million tonnes this year, and it raised revenue expectation by 11 percent to 150 billion yuan (22 billion U.S. dollars) in 2010, according to the statement. *

*China's 4-trillion yuan stimulus package has helped domestic steel makers return to profit in May after seven straight months of losses because of the global economic crisis.* 

*Steel consumption might rise by 10 percent next year due to a stronger demand boosted by a 28-percent-increase in assets investment in 2010, Yu Liangui, a senior analyst from Mysteel, was quoted as saying. *

"The government's plan to restrict entry for small steel makers gives ample room for large steel mills to expand production," according to Yu. 

*The Ministry of Industry and Information Technology earlier this month said it would be mandatory for steel mills to have at least 1 million tonnes of capacity, a move that could squeeze small steel mills out of the market and speed up the pace of industry consolidation.* 

Source:Xinhua


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## grey boy 2

*China's first environmental industry fund established - People's Daily Online* Dec 29 2009

China's first fund for environmental industry was launched Monday in Beijing, aiming to promote investment in the country's environment-related sectors. 

*The Environment Industry Fund, run by China General Technology Investment Fund Management Corp., is expected to raise 2 billion yuan (292.8 million U.S. dollars) in the first stage. *

*The company will also set up a parallel 300-million-U.S. dollar overseas fund.* 

*The money-raising will be finished by the second quarter in 2010 and the money will be invested in water industry, solid waste disposal, renewable energy, energy conservation and emission cuts sectors, said Liu Debing, chairman of the company. *

*The project came after the Chinese government announced to reduce carbon dioxide emission per unit of gross domestic product by 40 percent to 45 percent by 2020 compared with the level of 2005. *

Li Dang, general manager of China General Technology Group (Genertec), major stakeholder of the fund management company, said that the investment conformed to adjustment in China's industrial investment policy and is expected to reap good returns. 

*Chinese Premier Wen Jiabao told Xinhua in an exclusive interview Sunday that the government would gear more investment to energy conservation and emission cuts sectors in 2010. 

The China General Technology Investment Fund Management Corp. was founded jointly Monday by Genertec and investment agencies with a registered capital of 50 million yuan.*

Source: Xinhua

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## grey boy 2

*China becomes world's biggest gold buyer in 2009 - People's Daily Online*
15:23, December 29, 2009 

*World Gold Council (WGC) data reveals that for the first time in 21 years the world's central banks have been net buyers of gold and China has been the biggest buyer this year, adding 454 tones to bring its central bank reserves to 1,054 tones.*

*Amid growing concern over the weakness of the dollar, about 28 billion U.S. dollars worth of bullion was bought by central banks this year, based on an average price of 978 U.S. dollars an ounce, according to the WGC.*

*The biggest buyers have been the emerging economies of China, Russia and India, but smaller countries such as the Philippines, Kazakhstan, Sri Lanka and Mexico have also been shifting their reserves into gold.*

*The value of the dollar, the default reserve currency for most countries, has fallen as investors have grown cautious about America's huge debt burden and possible inflationary trends.*

Meanwhile, a handful of developed countries have taken advantage of record gold prices to reduce the size of their vaults. The metal hit a peak of more than 1,200 U.S. dollars an ounce this year, according to Goldman Sachs.

*However, Dylan Grice, an analyst at Société Générale, believes that the continued weakness of the dollar, concern about inflation and fiscal policy will continue to drive the gold price.*

*A spate of gold-buying in the 1960s, led by France, resulted in the collapse of the Bretton-Woods system in 1971 when the link between the value of the dollar and gold was abolished.*

By People's Daily Online


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## grey boy 2

*Guangzhou subway Line 5 opens - People's Daily Online* 12:26, December 29, 2009 

*Guangzhou opened its subway Line 5 on December 28. The city currently has a subway network of 5 lines totaling 150 kilometers, ranking third in the entire country. The opening of Line 5 will attract more people to choose the subway as their main transportation means, which will help to relieve the serious problem of traffic congestion in Guangzhou.*

*From the industrial and regional development point of view, subway Line 5 connects 2 major business districts  the Pearl River New Town which is 1 of the 3 largest central business districts in China and the Huanshidong business district which is considerably large. This connection will inject new vitality to the smooth operation of Guangzhou's modern service industry. In addition, subway Line 5 also allows more convenient travel between Guangzhou's central area and its eastern industrial transfer areas, providing new development opportunities to the eastern industrial belt where advanced manufacturing industries are concentrated. Furthermore, subway Line 5 will provide new urban development prospects for new eastern districts like Yuancun and Huangpu District. *

*Subway Line 5 is an important channel for Guangzhou to strengthen its sphere of influence to the Pearl River's east and west banks. It allows for further construction of urban rail transit lines connecting it with Foshan, Dongguan and other cities, which will lay a sound transportation foundation for accelerating the construction of Guangzhou into a national central city and realizing the strategies of building Guangzhou and Foshan into one large city, as well as integrating the Pan-Pearl River Delta.*

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## Metallic

*China says billions missing from public funds*
*CHINA - 29 DECEMBER 2009*

*SHANGHAI  *Over 34.4 billion dollars went missing from public funds in China in the first 11 months of 2009, state media said Tuesday, with national auditors highlighting embezzlement, waste and fraud.

Over 230 people, including 67 government officials, have been handed over to disciplinary or judicial authorities for their roles in the missing funds, the China Daily said, citing the National Audit Office.

The audit covered 99,000 companies, government agencies and public institutions across the nation, Liu Jiayi, China's top auditor, told a national auditing conference.

Of the 234.7 billion yuan (34.4 billion dollars) found missing in the audit, 16.3 billion yuan had already been recovered, it said.

Premier Wen Jiabao told auditors at the conference to step up efforts to tackle corruption, according to the report.

China's state auditor has the power to review government accounts, but its lack of law enforcement powers means that many irregularities do not result in prosecutions.

Beijing vowed to curb corruption in November last year when it launched a four-trillion-yuan stimulus package to prop up economic growth amid a sharp drop in demand for exports due to the global financial crisis.

_
Source: AFP_


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## grey boy 2

*Chinese Premier asks auditors to keep a close eye on public funds - People's Daily Online*

*Chinese Premier Wen Jiabao Monday asked auditors to keep a close eye on public investment projects to help avoid embezzlement and waste of public funds. *

*Jerry-built projects and vanity projects should be strictly forbidden with the help of closer follow-up scrutiny of public funds, said the premier in a meeting with participants at a national auditing conference. *

*The National Audit Office (NAO) statistics showed that altogether 234.7 billion yuan (34.51 billion U.S. dollars) of public funds have been misappropriated and 16.3 billion yuan wasted during the first 11 months this year.* 

*Wen urged auditors to strengthen budget enforcement auditing in order to guarantee an open and transparent fiscal budget for governments at all levels. *

The premier said that auditing should shoulder the responsibility of safeguarding the country's economic security by detecting possible risks in economic operations. As for now, special attention should be paid to fiscal and financial risks, he said. 

*He also called for giving full play to the role of auditing in the fight against corruption and severely cracking down on corruption.* 

*China carried out audit among more than 20,000 government officials including provincial level cadres and bosses of large state-owned enterprises this year. Cases involving 67 senior officials and 164 others were handed over to judicial authorities, said the NAO. *

Source: Xinhua

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## Panditji

Too bad! - embezzled money does not help anyone, including the corrupt. (maybe it keeps some dough away from the defense budget... but that's a long shot!)

Maybe China should double the number of public executions for corruption. That should deter the wrongdoers.

I am also awaiting India to adopt such tough measures against corruption. Only drastic measures will work on this evil, as it is so strongly rooted in the society.


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## grey boy 2

*Audit unearths huge graft - People's Daily Online* 08:31, December 29, 2009 

The National Audit Office (NAO) has found over 234 billion yuan ($34.5 billion) of public finances was misused in its annual audits of almost 100,000 government departments and State-owned enter-prises (SOEs), China's chief auditor said Monday.

*The NAO transferred the cases of 67 officials and senior managers of SOEs to discipline-inspection and judicial organizations for investigation for their alleged involvement in the massive embezzlement, Liu Jiayi, head of the NAO, said Monday at the annual conference of auditors.*

The office did not disclose the amount of public funds its audits covered.

The NAO said it audited over 20,000 officials, including 14 provincial governors and ministerial-level officials, as well as the directors of 12 SOEs across the country from January to November this year.

*Liu attributed 10.69 billion yuan of the misused funds to officials and directors, with senior management accounting for 4.5 percent of the total amount embezzled.*

*Another 164 people were punished according to administrative and disciplinary procedures.*

*The audit authority provided 863 cases to the justice, discipline-inspection and supervisory organs in 2009. The cases, involving 1,068 people, referred to bank loans, discounted notes, securities transactions, land and mining rights sales, the transfer of state-owned assets and other issues.*

*Liu said criminals are now more intelligent and covert.*

*Some are involved with money laundering, transferring large-scale funds to other areas via Internet banking; some are involved in credit fraud, issuing false certificates or notes, and others are involved in illegal profit-making through illegal insider trading, he said.*

*The need to restrain corruption in the public sector alongside the nation's booming economy has been repeatedly underscored by the authorities, which say corruption erodes the credibility of the ruling party and causes huge economic losses.*

*In 2008, a total of 10,315 cases of commercial bribery were committed by government workers, involving more than 2.1 billion yuan ($300 million), Cao Jianming, the country's prosecutor-general, said earlier this year.*

*To secretly allocate an amount of public finance for personal or department use is a common form of misuse of public funds, as the country's anti-graft watchdog found the practice appears to remain rampant.*

*As of November, 22,884 such cases of illegal allocation of central finances, worth 10.16 billion yuan ($1.49 billion), had been uncovered since June, according to the Central Commission for Discipline Inspection of the Communist Party of China.*

*A total of 270 officials have received administrative punishment for illegally holding "small coffers" for personal use, and 81 have been prosecuted.*

*Lei Jiaxiao, a scholar of economic security at Tsinghua University, told the Global Times that the final allocations of funds always show discrepancies with the budgeting, but the problem unearthed by auditing may not necessarily be related to corruption.*

*"Some local governments, besieged by the money shortage, chose to divert some funds to projects they consider urgent," Lei said.*

Through auditing, the central government can gain more accurate information for decision-making, and the misuse of funds by local governments could be prevented, Lei said.

Lei suggested the National People's Congress play a bigger role in government budget planning and implementation.

*A report sent to the NPC Standing Committee last week by the State Council stated that the National Audit Office will try to make all the budgets of central departments open to the public in two or three years.*

Source: Global Times

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## FreekiN

China!, Ask Zardari where the money went! LOL


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## Gin ka Pakistan

FreekiN said:


> China!, Ask Zardari where the money went! LOL


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## grey boy 2

*Beijing-Guangzhou high-speed railway to open in 2012 - People's Daily Online* Dec 30 2009

*Reporters learned from railway authorities that the Beijing-Shijiazhuang and Shijiazhuang-Wuhan high-speed railways are currently under intense construction and a trip from Beijing to Guangzhou by train will only take 8 hours in 2012.*

*The Wuhan-Guangzhou high-speed railway that went under construction from June 2005 is an important part of the Beijing-Guangzhou high-speed railway. It runs through Hubei, Hunan and Guangdong provinces, totaling about 1,068 kilometers. The opening of the Wuhan-Guangzhou high-speed railway reduces the travel time between the 2 cities to 3 hours from the original 10 hours.*

*According to the Wuhan Railway Bureau, the travel time between Beijing and Guangzhou has reduced to 21 hours from over 90 hours in the past, after passenger train speeds were increased several times. Following the opening of the Wuhan-Guangzhou high-speed railway and the construction of other high-speed railways in progress, the Beijing-Guangzhou high-speed railway will serve as a main artery running through China from north to south in the future, and the trip from Beijing to Guangzhou will only take 8 hours. An "8-hour transport circle" that China is striving to build will gradually become a reality.*

*Zhang Shuguang, head of the Transportation Department of the Ministry of Railways, said that China will form a 1-8 hour transport circle, which has Beijing at its center and allows travel between Beijing and most provincial capitals in 1-8 hours. China will also build a transport circle that allows travel between central cities, such as Shanghai, Zhengzhou and Wuhan, and their surrounding cities in half an hour to 1 hour. China's high-speed passenger transport network connects all provincial capitals and large cities with a population of over 500,000, and covers 90 percent of the population nationwide. It will significantly shorten the inter-city distances.*

By People's Daily Online

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## grey boy 2

*A miserable year for corrupt officials in China - People's Daily Online* Dec 31 2009

*At least 15 governor and ministerial-level officials, a record high in 30 years, have been brought down this year, many for allegedly trading their power for money in the country's economic boom, driven by mammoth investment in infrastructure construction and the real estate industry.*

"We must be sober enough to see that the anti-corruption work still faces new problems, and the situation is still serious," an anti-corruption meeting of the Political Bureau, chaired by President Hu Jintao, announced Tuesday, according to the Xinhua News Agency.

*A stepped-up anti-corruption campaign since the fourth plenary session of the 17th national Communist Party of China Committee in October has spread to the land sector.*

Wang Wei, a member of the communist party's Central Commission for Discipline Inspection (CCDI), said last Thursday that supervision bodies nationwide gave special attention this year to real estate development, land management, engineering construction and the financial sector.

*The latest case involves Cai Zhiqiang, former head of the Putuo District of Shanghai, who was officially arrested last Thursday on charges of taking "huge amounts" in bribes, although the exact figure was not disclosed.*

While he served as the district head, he was also in charge of land use, bidding, auctions and listings, according to the Shanghai-based Xinmin Evening News.

Putuo district is a new hotspot for land development, with "China's most expensive land" in September, when a square meter sold for 22,400 yuan ($3,290).

*Kang Huijun, 52, a former senior official of Shanghai's Pudong New Area, was given a life sentence in February for accepting bribes of 5.9 million yuan and for his role in illicit property deals.*

*In the same month, Jiang Yong, the former director of Chongqing Planning Bureau, was sentenced to death with a two-year reprieve for accepting bribes of 18.7 million yuan over five years from developers, along with his mistress, after he promised to aid them in their application for projects.*

*A two-year investigation found 10 other officials above the provincial-department-level involved in the same case.*

*"It often went like this, when a series of construction projects were wrapped up, a number of officials would fall," Lin Zhe, an expert on anti-corruption at the CPC Party School, told the Global Times.*

Land has become an increasingly rare resource held by the government. As long as real estate prices kept soaring, some officials failed to resist the lure of huge profits shared with the developers, she said.

*Corruption has not just been seen within the real estate industry. Some officials were also found to be colluding with businessmen in other areas.*

*Sun Shuyi, chairman of the Shandong Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC), was sacked December 17 for his alleged connection with the illegal fundraising of four billion yuan.*

*Chen Shaoji, former chairman of the Guangdong provincial committee of the CPPCC, and Wang Yuanhua, former secretary of the Guangdong provincial discipline committee, were detained and interrogated for their role as 'umbrellas' for Huang Guangyu, formerly the country's richest man and chairman of Gome Electrical Appliances.*

*Chen Tonghai, the former chairman of Chinese oil giant Sinopec Corp, is an example. He was sentenced to death with a two-year reprieve in July for taking bribes of 196 million yuan between 1999 and June 2007. He was found to have helped others "seek interests" in land transfers.*

The total number of provincial and ministerial-level officials detained this year is a record high since China abandoned its planned economy and embraced a market-oriented economy 31 years ago, according to Lin.

*Statistics in 2008 showed that as many as 41,179 officials were found to be involved in embezzlement and bribery. Among them, 17,594 major cases of embezzlement and bribery were found, an increase of 4.6 percent. 29,836 people were sentenced for abuse of power, a 12.6 percent increase compared with 2007.*

*Besides disciplinary or legal actions, the government has been trying other means, such as urging leading officials at various levels to report their property and investment activity and the jobs of their spouses and children, a step that many consider a prelude to a much-anticipated official property-declaration system.*

Source: Global Times

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## grey boy 2

*China starts to build petroleum reserve base in its northwest - People's Daily Online* Dec 31 2009

China has launched the construction of a national petroleum reserve base in northwest China's Gansu Province. 

*The reserve base, located in Yongdeng County of Lanzhou City, has a capacity of three million cubic meters, said an official with Lanzhou Petrochemical Company of China National Petroleum Corporation (CNPC).* 

*Construction of the project, which started Tuesday, is expected to cost around 2.38 billion yuan (about 350 million U.S. dollars), the official said. *

*The base mainly includes 30 oil tanks each with a capacity of 100,000 cubic meters. It is expected to be completed and put into use in the first half of 2011.* 

Construction of a repository for production and operation has also started in Lanzhou as a complementary part of the base. It is planned to be completed by October 2010. 

Source: Xinhua


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## oct605032048

data source&#65306;United Nations Statistics Division
&#20013;,&#32654;,&#20420;,&#24503;,&#26085;,&#21360;=CHN USA RUS GER JPN IND

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## grey boy 2

*Beijing to accelerate solar energy development - People's Daily Online* Jan 06 2010

*The Beijing Municipal Commission of Development and Reform said January 5 that Beijing will implement 6 major "golden sunlight" projects in order to accelerate solar energy development and application, promote the development of the new-energy industry and develop Beijing into a solar energy technological, research and development center, a high-end manufacturing center as well as an application and demonstration center.*

*The 6 major "golden sunlight" projects are composed of a 20,000 kW rooftop solar photovoltaic (PV) power generation project, a 50,000 kW on-grid solar power station demonstration project, a solar campus project, a solar thermal water project, a rural solar power project and a solar energy-powered nightscape lighting project.*

*In 2012, the coverage area of solar collectors installed in Beijing will reach 70 million square meters. Beijing's solar energy power generation capacity will total 70 MW and the output value of its solar energy industry will exceed 20 billion yuan. By then, solar energy will save energy consumption equivalent to 900,000 tons of standard coal, an increase of 20 percent from 2008. It will also reduce carbon dioxide emissions by 1.96 million tons, sulfur dioxide by 59,000 tons, and nitrogen oxide by 32,000 tons.*

By People's Daily Online

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## AnGrz_Z_K_Jailer

*China reacts to credit boom fears *

The country's asset watchdog ordered its army of state-owned firms to take greater care, "resisting the temptation" of speculating in property, stocks, and derivatives markets. 

The co-ordinated moves across all fronts cooled the buying fever on China's frothy bourses. The Shanghai Composite fell 1.9pc, with sharper corrections among cyclical stocks. Top steel producer Baoshan dropped 4.8pc, and Saic Motor fell 4.4pc.

The central bank nudged up the interest rate on 3-month loans, a symbolic move intended to signal the shift in policy direction. The authorities have quietly been issuing tougher guidelines for lenders over the past few weeks. "This tightening is the start of a long squeeze," said Charles Dumas from Lombard Street Research. The think tank said Beijing is waking up to the danger of over-heating, with the money supply growing at an annual rate of 20pc. 

While China's $600bn (&#163;376bn) fiscal stimulus package has been huge, it was more than matched by nearly $1 trillion growth in credit in the first half of the year. The authorities have since tried to rein in credit but it is already leaking in food inflation &#8211; as well as into an asset bubble &#8211; a dangerous political issue in a country grappling with tens of millions of footloose migrant workers, often quick to protest. 

Jiang Weixin, the housing minister, said credit for property would be restricted to slow the runaway rise in prices. "We should scrap or adjust local property policies launched last year that no longer comply with the current macroeconomic goals," he said. 

The government is concerned that huge tracts of office blocks and housing bought by investors are sitting empty. Mortgages are mostly limited to 65pc of equity &#8211; and many flats are purchased with cash &#8211; so arguably there is little danger of repeating America's subprime debacle. However, excesses are now obvious in dozens of cities. 

Banking practices have been opaque, leaving it far from clear whether or not lenders are sitting on a vast underbelly of bad loans. China appears to be opting for a credit squeeze rather than allowing the yuan to rise against the dollar, euro, and yen &#8211; an alternative way to cool the economy. 

This mercantilist strategy lowers the risk of job losses among toy, textile, shoe and furniture exporters but raises the risk of a trade showdown with the West, where protectionist voices are growing louder. 

Tightening by China may have knock-on effects for the global commodities markets, which have been feeding the insatiable Dragon for the last year. 

Andy Xie from Caijing says a significant chunk of government stimulus has been used to speculate on metals and crude. Even pig farmers have been borrowing from banks to hoard copper, hoping to flip a profit. 

Mr Dumas said the policy shift in Beijing may mark the moment when China joins the US, Europe and Japan in smothering broad money growth. &#8220;This means global deflation &#8211; initially of risk-asset markets, later of economies and consumer prices. Grief will ripple out from the Pacific Rim.&#8221;

Source : China reacts to credit boom fears - Telegraph


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## grey boy 2

*China's nuclear power capacity over 21 million kW - People's Daily Online* Jan 08 2010

*According to statistics released by the National Energy Administration Jan. 6, 20 nuclear power plants were under construction at the end of 2009, with a total capacity of 21.92 million kW. *

*China speeded up the construction of nuclear power plants last year. The data showed that construction of two 1.25 million kW nuclear power units in Sanmen, Zhejiang province, two 1.25 million kW nuclear power units in Haiyang, Shandong province and two 1.75 million kW nuclear power units in Taishan, Guangdong province were started in 2009.*

*China continued to construct large-capacity and environmentally friendly thermal power plants in 2009. By the end of last year, thermal plants with a capacity above 300,000 kW accounted for 64.46 percent of the nation's total.* 

*China also attached great importance to the development of wind power last year. The capacity of wind power units in Inner Mongolia Autonomous Region reached 5 million kW. China's first pilot wind power project, Jiuquan wind power base, was launched. And the PV solar power station in Dunhuang, Gansu province, the first of this kind in China, was started. *

*The year 2009 also witnessed the shutdown of small thermal power stations of 26.17 million kW. During the 11th Five Year period, small thermal power stations with total capacity of 60.06 million kW have been shut down, which helped save 69 million tons of coal, reduce emission of sulfur dioxide by 1.2 million tons and carbon dioxide by 139 million tons annually.*

By People's Daily Online


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## grey boy 2

*China, Turkey to boost trade ties, mutual investment - People's Daily Online* January 08, 2010 

Chinese Commerce Minister Chen Deming (L) meets with Turkish State Minister for Foreign Trade Zafer Caglayan in Ankara, capital of Turkey, on Jan. 7, 2010. (Xinhua/Zheng Jinfa)

*China and Turkey look to trade growth and a larger scale of mutual investment in a bid to forge closer economic ties, the two countries' top trade officials said in Ankara Thursday. *

*"For China, Turkey is an extremely significant strategic trade partner with its location between Europe and Asia," China's Commerce Minister Chen Deming said after a meeting with Turkish State Minister for Foreign Trade Zafer Caglayan, noting that Sino-Turkish trade has a good prospect despite the impact of the global financial crisis. *

*China will work with Turkey to improve transportation between the two countries to facilitate economic ties and wants to see the revitalization of the ancient Silk Road, a 2000-year-old ancient trade route linking Asia and Europe, Chen told reporters. *

*The minister said China will take measures to encourage Turkish companies to expand sales network in China, adding that he had discussed with Caglayan on boosting cooperation in such sectors as finance, food, energy, tourism and processing industry.* 

Both sides should continue to solve trade disputes properly through friendly negotiations and fight against trade protectionism, he said. 

*More than 100 Chinese entrepreneurs came along with Chen to seek purchase and investment opportunities during the minister's four-day visit to Turkey. *

*China and Turkey saw their trade surge from more than 1 billion U.S. dollars in 2000 to 12.6 billion U.S. dollars in 2008. Turkey's exports stood at only 1.98 billion U.S. dollars in 2008. *


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## grey boy 2

*Lenovo enters mobile Internet area - People's Daily Online* Jan 08 2010

*Lenovo Group officially announced its strategy for entering the mobile Internet area at the 2010 International Consumer Electronics Show (CES) in Las Vegas, U.S. January 7. It also unveiled its first generation of mobile Internet terminals. Given the rapid advancement in information technology and growing competition from giant foreign companies, Lenovo Group expressed its firm voice, "Building up the made-in-China image in the mobile Internet area."*

*Aside from the hybrid computer Ideapad U1, a transition product between PCs and mobile Internet terminals, Lenovo's first generation of mobile Internet terminals also defines 2 types of fresh new products, the smart mobile phone LePhone and smart-book Skylight. As the extension from traditional PCs to mobile Internet terminals, they are specially designed for mobile Internet content and application.*

By People's Daily Online


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## sirius

SHANGHAI: James Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other highflying companies whose
Twitter	Facebook	Share
Email	Print	Save	Comment
stories were too good to be true.

Now Chanos, a wealthy hedge fund investor, is working to bust the myth of the biggest conglomerate of all: China Inc.

As most of the world bets on China to help lift the global economy out of recession, Chanos is warning that China's hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict. Its surging real estate sector, buoyed by a flood of speculative capital, looks like "Dubai times 1,000  or worse", he frets. He even suspects that Beijing is cooking its books, faking, among other things, its eye-popping growth rates of more than 8%.

"Bubbles are best identified by credit excesses, not valuation excesses," he said in a recent appearance on CNBC. "And there's no bigger credit excess than in China." He is planning a speech later this month at the University of Oxford to drive home his point.

As America's pre-eminent short-seller  he bets big money that companies' strategies will fail  Chanos's narrative runs counter to the prevailing wisdom on China. Economists and governments expect Chinese growth momentum to continue this year, buoyed by what remains of a $586 billion government stimulus program that began last year, meant to lift exports and consumption among Chinese consumers.

Still, betting against China will not be easy. Because foreigners are restricted from investing in stocks listed inside China, Chanos has said he is searching for other ways to make his bets, including focusing on construction- and infrastructure-related companies that sell cement, coal and steel.

Chanos, whose hedge fund, Kynikos Associates, has $6 billion under management, is hardly the only skeptic on China. But he is certainly the most prominent and vocal. He has been spreading the view that the China miracle is blinding investors to the risk that the country is producing far too much. 
Is China's economy headed for a crash? - China - World - The Times of India


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## grey boy 2

*Beijing's per capita GDP estimated to exceed $10,000 in 2009 - People's Daily Online*
Jan 08 2010
*The annual per capita GDP in Beijing was expected to top 10,000 U.S. dollars in 2009 as the national capital expected an over 9.5 percent economic growth for the same year, said an official with the municipal economic planning agency Thursday. *

*Beijing expected to rake in financial revenue totaling 202.7 billion yuan (about 29.8 billion U.S. dollars), up 10.3 percent year on year, said Zhang Gong, head of the Beijing Municipal Development and Reform Committee. *

*The income of urban and rural residents were estimated to rise by 9 percent and 12 percent respectively in 2009 compared to 2008 figures, said Zhang. *

*Government policies and investment had helped boost local industries amid the global downturn, Zhang said. The city's industrial added value was expected to grow by about 8 percent and the service sector by more than 10.5 percent in 2009, accounting for 73.5 percent of Beijing overall economic strength.* 

*Beijing also strengthened infrastructure construction in 2009 to raise its capability for sustained development, Zhang said. The length of highways and track traffic lines in operation reached 884 kilometers and 228 kilometers respectively currently. The city still has 276.7 kilometers of track traffic line under construction, he said*. 

*The annual per capita GDP in Beijing was more than 9,075 U.S. dollars in 2008 and the figure was 7,370 U.S. dollars in 2007. *

Source: Xinhua

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## oct605032048

grey boy 2 said:


> *Beijing's per capita GDP estimated to exceed $10,000 in 2009 - People's Daily Online*
> Jan 08 2010
> *The annual per capita GDP in Beijing was expected to top 10,000 U.S. dollars in 2009 as the national capital expected an over 9.5 percent economic growth for the same year, said an official with the municipal economic planning agency Thursday. *
> 
> Source: Xinhua



And the gdp of 3 provinces of Yangtze Delta (Shanghai Jiangsu & Zhejiang) is bigger than that of India or Korea.

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## grey boy 2

*Chinese auto market takes over US as world's largest - People's Daily Online*
Jan 09 2010


*China's passenger vehicle market ended last year with a 59 percent year-on-year sales increase to surpass the United States as the world's largest auto market for the first year, thanks to the central government's stimulus package.*

*The domestic sales of cars, sports-utility vehicles (SUV), minivans and multi-purpose vehicles (MPV) hit 10.26 million units last year, surging from 6.4 million units in 2008, said Rao Da, secretary-general of the China Passenger Car Association on Friday.*

*The growth is also the highest in the country's auto history, with total automobile sales expected to surge 44 percent year-on-year to 13.5 million units in 2009.*

*Statistics from the US consulting institution Center for Automotive Research showed that new car sales in the US last year plunged 21 percent year-on-year to a 27-year low of 10.43 million units, more than 3 million behind China.*

The China Association of Automobile Manufacturers (CAAM) is expected to release detailed market figures of the country's automobile industry on Monday.

*The spike in vehicle sales was largely boosted by the government's stimulus policies for lifting market demand, which included tax cuts on small-displacement automobiles, subsidies for trade-ins and subsidies for farmers to buy vehicles.*

*A low comparative base in 2008, when car sales growth slowed to 6.7 percent with 9.38 million vehicles sold, also helped boost 2009 figures.*

*To further support the world's fastest growing auto market, the Chinese government said last month it will extend stimulus measures in the automobile industry for one more year.*

*The purchase tax for smaller cars will be lifted from the current 5 percent to 7.5 percent of the total vehicle price. The government also decided to raise the subsidy for trade-in cars from between 3,000 and 6,000 yuan ($440 to $880) to between 5,000 yuan and 18,000 yuan per vehicle.*

*The government's continued support for the industry promises to fuel its rise for the coming years.*

Automobile industry consulting firm Sinotrust predicted that vehicle sales will reach 15.13 million units this year, with a year-on-year growth rate of 15.2 percent.

*According to the Ministry of Public Security, until the end of last year, almost 200 million Chinese people are able to drive a vehicle, making up about 15 percent of the country's 1.3 billion population.*

"Natural demand will continue to expand in the next few years," said Lang Xuehong, chief auto industry analyst at Sinotrust.
*
Chinese automakers launched a record 221 new passenger vehicle models last year, with a majority of them upgraded models and less than half being new ones, according to the latest statistics from the CAAM.*

*Chinese automakers are expected to launch about 100 new models this year.*

The brisk sales have also brought challenges to China's appeal for a green society.

*However, a number of analysts said the sales may also speed up automakers' efforts to develop next-generation energy-efficient and emission-free vehicles.*

Moreover, "the revised policy for this year, with tripled subsidies to encourage the replacement of outdated vehicles with high emissions and unstable driving performance, will contribute to an environmentally friendly society in which the automobile industry has a heavy responsibility," said Yale Zhang, director of the Greater China Vehicle Forecasts for US auto industry consultancy CSM Worldwide.

*Still, Chinese cities may face worsening traffic as the car boom puts an increasing number of people behind the wheel, with a number of local governments already expressing concern about the rising number of cars.*

*Zhang Gong, director of Beijing's municipal commission of development, said the capital will enter the "automobile age" when every 100 families own 66.1 cars.*

The capital is rated in a Sohu.com survey of more than 5,000 Web users as the most crowded Chinese city in November.

Source: China Daily


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## grey boy 2

*China signs $1 bln contracts with Turkey - People's Daily Online*
Jan 09 2010

China and Turkey signed 38 contracts worth of 1.05 billion U.S. dollars at the end of the forum on economic cooperation and investment here on Friday. 

The deals cover Chinese imports of minerals, marble and other products from Turkey as well as contracting power plant projects in Turkey. 

The signing ceremony was witnessed by visiting Chinese Commerce Minister Chen Deming and his Turkish host State Minister for Foreign Trade Zafer Caglayan in Istanbul. 

More than 100 Chinese entrepreneurs came along with Chen to seek purchase and investment opportunities during the minister's four-day visit to Turkey. 

Addressing the forum with more than 400 people from the two countries, the two ministers pledged their efforts to forge close economic and trade relations by expanding trade and increasing mutual investment. 

China and Turkey saw their trade surge from more than 1 billion U.S. dollars in 2000 to 12.6 billion U.S. dollars in 2008. Turkey's exports stood at only 1.98 billion U.S. dollars in 2008. 

Chinese enterprises' direct investment in Turkey reached 313 million U.S. dollars as of the end of September 2009, with the amount in the first three quarters accounting for more than 90 percent of the total, figures from China's Commerce Ministry show. Meanwhile, actual investment by Turkish companies in China exceeded 100 million U.S. dollars as of the end of October. 

Source: Xinhua


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## oct605032048

Chinese auto market overtakes US as world's largest
By Li Fangfang (China Daily)
Updated: 2010-01-09 07:39

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## oct605032048

unit:100 million USD
items of last(right hand) 3 columns: ASEAN as total, China, Percentage of China compared with ASEAN(ASEAN as 100%)
items of first(left hand)11 columns: year, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam.

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## oct605032048

Made in China.
350KT oil tanker to have maiden voyage in Guangzhou.
?????????? ????????3?(?)_??_???

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## xuxu1457

JANUARY 11, 2010
China's Exports Turn Upward in December 
Jump of 18&#37; Marks the End of More Than a Year of Declines; Imports Also Soar, Fueled by the Country's Stimulus Programs

By J.R. WU 
BEIJING -- Exports from China turned upward in December, resuming growth after 13 months of declines, in the latest sign of improvement in global trade.

View Full Image

Agence France-Presse/Getty Images

Chinese workers prepare for their shift at the Yangshan container port in Shanghai, in June. China's exports surged in December, ending 13 months of declines. Imports soared 56%.
The change of direction came a year after Chinese leaders embarked on a massive domestic investment-led stimulus program to offset the global erosion of demand for its exports, a key driver of China's economic growth.

The shift in focus was evident in December's trade data: While exports appeared to have turned the corner, rising 18% from the year-earlier month, imports grew even more, up 56%, reflecting China's stimulus-fueled appetite for raw materials. Crude-oil imports set a monthly record, and those of iron ore were the second-highest recorded.

This trend also showed in the annual trade surplus, which shrank for the first time in six years.

More
China Dethrones Germany as Top Exporter For the year, exports fell 16% to $1.202 trillion and imports slid 11.2% to $1.006 trillion, data issued Sunday by the General Administration of Customs showed. It was China's first annual export decline since 1983, when exports fell a mere 0.4%. While the rest of the world took even harder hits from the global slowdown, the effects of the crisis have marked Chinese leaders' thinking about accelerating the economy's drivers away from exports and toward domestic consumption.

Still, the sharp December trade improvement in China -- which overtook Germany last year as the world's largest exporter -- suggests a strong expansion in China's economy in the final quarter of 2009, after the 8.9% expansion in the third quarter, and is likely to stoke debate about when Beijing will start to wind down its stimulus policies.

"Growth in exports is expected to be strong in the coming months due to steady improvement in external demand combined with low base effects. Continued recovery in China's industrial sector should support increased demand for energy and raw material imports," said Jing Ulrich, chairman of China equities and commodities at J.P. Morgan.

Economists said a continued rise in exports might increase the government's willingness to let its currency rise in the coming months. Critics say Chinese exporters enjoy an unfair advantage in global markets because the yuan is undervalued, and trade tensions between China and its key trading partners have escalated in recent months.

"Positive export growth will ... likely increase the global pressure on Beijing to allow some currency appreciation, while also making it easier to justify such a move to domestic audiences," said Royal Bank of Canada Capital Markets senior strategist Brian Jackson.

China's December exports surged to $130.7 billion as imports grew to $112.3 billion, resulting in a trade surplus for the month of $18.4 billion, customs data showed.

Economists polled by Dow Jones Newswires had expected exports to grow 5% and imports to increase 31% in December. China's exports last grew on a year-on-year basis in October 2008 before the global financial crisis sharply eroded demand at the tail end of 2008.

China's trade surplus last year topped $196 billion, falling 34% for the year and recording its first annual drop since it fell 16% in 2003.

In the fourth quarter, China's trade surplus totaled about $61 billion, greater than the roughly $39 billion of the third quarter, likely bolstering China's foreign exchange reserves and its money supply into the end of the year. China's central bank is due to issue the reserves and lending data early this week.

China's crude oil imports hit a record 21.26 million metric tons in December, equivalent to 5.03 million barrels a day, the data showed, partly on a push by state-owned refiners to have enough fuel in reserve ahead of the Lunar New Year holiday next month.

For all of last year, crude oil imports rose 14% to 203.79 million tons, likely cementing China's place as the second-largest importer of crude oil after the U.S. in 2009, overtaking Japan, whose oil demand stagnated when its economy slid into recession.

China's commodity imports trumped expectations of a winter slowdown, underscoring an unabated hunger for key industrial products.

China imported 62.16 million metric tons of iron ore in December, 80% more than a year earlier and the second highest volume on record, the data showed. Iron ore imports were up 22% from the month before.

For the full year of 2009, China imported 627.78 million tons of iron ore, up 42% from 2008.

The high import volume points to traders and steelmakers moving to stock up on the steelmaking ingredient, ahead of market expectations that annually-set benchmark prices are poised to rise some 20%.

For the year, China's trade with the European Union, its top trading partner, fell 14.5% to $364 billion as exports to the EU slumped 19% to $236 billion. China's trade with the U.S., its second largest trading partner, sank 11% to $298 billion as exports fell 12.5% to $221 billion.

China's Exports Turn Upward in December - WSJ.com

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## grey boy 2

*China, Saudi Arabia to boost trade - People's Daily Online* Jan 12 2010

*Bilateral trade between China and Saudi-Arabia could "far exceed" the goal of $60 billion by 2015 and further strengthen trade ties with the Middle Eastern region, said experts yesterday. *

*During his recent trip to Saudi Arabia, the world's major oil exporter and also the largest oil supplier to China, Minister of Commerce Chen Deming said "both sides want to increase trade volume to $60 billion by 2015 after the target of $40 billion (for 2010) was reached ahead of time in 2008". *

"It (the goal) is a conservative estimate. There is high possibility that the China-Saudi Arabia trade would far exceed the target by 2015, as bilateral relations are getting stronger and the two nations' industries are highly complementary," said Tang Zhichao, director of Middle East Studies with China Institute of Contemporary International Relations. 

*During the 2003-08 period, China-Saudi Arabia trade registered annual growth rates of 30 to 50 percent. In 2008, bilateral trade surged by 64.7 percent to $41.8 billion, two years ahead of the goal set in 2006. *

*Trade between the two regions during the first half of 2009 was only $12.71 billion, hurt largely by the global financial crisis. The figure for last year is expected to "fall from a year earlier", said Zheng Dayong, China's former ambassador to Saudi Arabia. *

"This is the best time for growth in China-Saudi Arabian trade," he said. 

*China exports textiles, mechanical and electrical products to Saudi Arabia, still in small volumes, but imports large quantity of crude oil from Saudi Arabia, leading to a trade deficit with the Arab nation. China's crude oil imports rose by over 12 percent last year to 800,000 barrels per day. *

"The deficit situation cannot be changed in the short term," Zheng said. 

*During 2009, China's crude oil imports increased by 13.9 percent to 200 million tons, but the price on average fell by 39.4 percent to $438 per ton, said the Customs. *

*Saudi Arbaia's Finance Minister Arabia Ibrahim al-Assaf said his country wants to increase "exports of oil and non-oil products to China" and "boost bilateral investments". He also said both countries hoped to "end a conflict over anti-dumping measures imposed by China on some petrochemicals products."*

Source: China Daily

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## grey boy 2

*HK toy exports earn 88.55 billion HK dollars - People's Daily Online* Jan 11 2010

*Hong Kong's toy exports went down 10 percent to 88.55 billion HK dollars (11.35 billion U.S. dollars) in the first 11 months of 2009, according to figures released by the Hong Kong Trade Development Council Monday at a toys and games fair. *

*Toy exports to Russia fell 57.1 percent while exports to Czech rose 58.2 percent. Exports to the U.S. dropped 23.6 percent and that to the European Union dipped 8 percent. *

*As for baby products in the first 11 months of 2009, the exports reached approximately 6 billion HK dollars (726 million U.S. dollars). Its top export markets were the U.S., the U.K., Macao, Italy and France. *

*The 36th Hong Kong Toys and Games Fair, Asia's largest toy show, opened on Monday featuring about 2,000 exhibitors from 38 countries and regions.*

Source: Xinhua

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## grey boy 2

*Chinese supertanker set for maiden voyage to Mid-East - People's Daily Online*
Jan 12 2010

China's largest and the most advanced crude oil tanker, Xin Buyang, will embark on its maiden voyage from Guangzhou Zhongchuan Longxue Shipbuilding Base later this month en route to the Middle East, Guangzhou Daily reported.

*The 308,000-ton super large tanker, which is independently designed and built by a Chinese company, is believed to have the world''s largest tonnage with a water displacement of 350,000 tons. The deck stretches 333 meters long.*

*Captain Feng Wanyuan told the newspaper that the pilotless tanker is equipped with an automatic navigation system that can spare crew members from the navigation bridge and sail on automatic pilot for 24 hours in the worst weather.*

*"Xin Buyang is by far the most advanced super-large oil tanker with a high level of automation and reliability in performance, featuring independent technology in design and construction," Feng said.*

*In response to the growing threat of Somali pirates attacking oil tankers, the tanker is equipped with high-pressure water cannons to fend off marauding attackers. Feng said the oil tanker will pass through the Gulf of Aden on its maiden voyage to the Middle East.*

*The tanker has installed an alarm system that will immediately send nautical information on the ships'' location to offshore operators within 35 seconds of an emergency.*

"A crude oil carrier is the easiest target for a pirate attack because it travels at a relatively lower speed compared to other cargo ships," said Miss Zhu, director of the Shipping Division of China Shipping Group Company, which is in charge of the business operations of Xin Buyang.

"But that should not prevent us from developing our own large-scale oil tanker which is much more cost effective," Zhu added.

*However, Zhou Hongchun, professor of social development at the Development Research Center of the State Council, told the Global Times that despite the increased number of Chinese made large-scale oil tankers, the imported crude oil shipping industry is still dominated by foreign tankers.*

*A 2005 statistic reveals that the nation's oil imports shipped by domestic oil tankers made up only 10 percent of the total, and 90 percent of oil imports were shipped by leasing foreign oil tankers.*

*"That situation has changed much over the years," said professor Zhou, indicating that the competitive edge of Chinese oil tankers still lacks behind.*

*Since 2003, China has become the world's second largest crude oil consumption country after the US. Imported crude oil amounted to 183 million tons last year.*

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## Communist

*

China overtakes US as world's largest car market*

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## Communist

*

China Building 50,000 New Skyscrapers By 2025*

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## grey boy 2

*China plans world's highest airport in Tibet - People's Daily Online* 09:01, January 13, 2010 

*LHASA: China plans to break a new record and build the world's highest airport in Tibet at an elevation of 4,436 m, the regional civil aviation director announced.* 

*Xu Bo, director of the Tibetan Branch of the China Civil Aviation Administration, said the airport, planned for the Nagqu prefecture, would be 102 meters higher than Bamda Airport in Tibet's Qamdo prefecture, which was built in 1994 and is currently the world's highest airport. *

Xu Jian, director of the Nagqu Committee of Development and Reform, said the airport included in Tibet's development plan. The committee has yet to confirm a site for the airport. 

*"The construction is planned for 2011. It will take three years to build the airport, which is expected to cost 1.8 billion yuan ($263 million) and cover between 233 to 266 hectares," he said. *

*This airport, the sixth in Tibet, would be named Nagqu Dagring Airport after the area of its expected location. *

"The civil aviation network in Tibet has taken shape. The objective for the next stage of development is to open direct air routes from Tibet to south Asian countries," he said. 

*Nagqu, about 300 km from Lhasa, capital of Tibet, is in the center of the Qinghai-Tibet Plateau. The prefecture has a population of about 400,000. *

*"With the airport, Nagqu, which is also on the Qinghai-Tibet railway line, is expected to become an economic hub in the plateau region," said Tan Yongshou, commissioner of Nagqu prefecture.* 

Source:Xinhua

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## grey boy 2

*Mercedes-Benz's 2009 sales soar 77% in China - People's Daily Online* Jan 12 2010

*Mercedes-Benz marked 2009 as their "best year ever" in China with sales in the mainland soaring 77 percent to 68,500 vehicles, German-U.S. auto giant Daimler Chrysler said Tuesday.* 

*The locally produced C-Class cars became the best-selling model, totalling 16,000 units in 2009, up 156.3 percent on 2008. *

Sales of Mercedes-Benz passenger vehicles in China set a new monthly record of 9,350 units in December. 

*"China became the fourth-largest market for Mercedes-Benz in the world," said Klaus Maier, president of Mercedes-Benz China. *

*Despite the far-reaching international economic crisis, Mercedes-Benz sold nearly 15,000 S-Class cars in China last year, making the country the largest market for the luxury flagship model, while the sales of SUV series added up to 15,800 units, said the company. *

The company also said 2009 was the best year for Mercedes-Benz since it came into the Chinese market more than 20 years ago. 

*German automaker Volkswagen AG said its 2009 sales in China rose 36.7 percent to 1.4 million vehicles.* 

Source: Xinhua

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## AnGrz_Z_K_Jailer

*China puts brakes on growth*

Global markets were rattled by China's surprise increase of banks' required reserves, but investors should be thankful that Beijing is not asleep at the wheel of a very fast-moving car. 

Analysis by Simon Rabinovitch and Aileen Wang, in Beijing for Reuters 
Published: 1:08PM GMT 13 Jan 2010

On the contrary, China is trying to prolong its cycle of strong growth and steer clear of a boom-bust scenario. 

The 50-basis-point rise in the reserve requirement ratio (RRR) that was announced late on Tuesday is, first and foremost, a tool for the central bank to manage cash sloshing about the Chinese economy, locking up about 300 billion yuan (&#163;27 billion) that banks would otherwise be able to lend. 

But its greater significance is that it is China's most unambiguous tightening of monetary policy since the world's third-largest economy shot back towards double-digit growth from a near standstill in late 2008. 

Hence the fears that Beijing is about to launch a cycle of aggressive tightening that will weigh on the Chinese economy and, by extension, the China-powered global recovery. 

Further tightening steps - more bank reserve increases, higher interest rates and even allowing some appreciation of the yuan - are widely expected to come. Lost in the market panic, though, are two essential points. 

First, Chinese monetary conditions remain quite loose and officials have repeatedly insisted that they are not about to choke off a recovery that they fret is still not on solid ground. 

Second, by taking pre-emptive steps now to nip overheating, inflation and asset bubbles in the bud, Beijing is hoping to avoid draconian tightening down the road. 

"We see this adjustment as a positive step given the rapidly increasing inflationary pressures in the economy," said Yu Song, an economist at Goldman Sachs in Hong Kong. "It highlights that the government is well aware of the inflationary pressures in the economy and is very flexible in changing its policy stance." 

Although the reserve requirement increase caught global investors' attention, China had already made a series of smaller moves. The central bank also raised one-year bill yields on Tuesday and drained a record 200 billion yuan (&#163;18 billion) via 28-day repurchase agreements. 

Nevertheless, Beijing raised required reserves earlier than the market expected, setting off speculation about what pushed it to act so soon. Several factors probably worked together. 

Chinese banks reportedly issued 600 billion yuan in new loans in the first week of the year, about double their monthly average in the last half of 2009. By freezing more of their deposits as required reserves, Beijing was making clear that it does not want a repeat of their unprecedented lending surge a year ago. 

There is also reason to believe that inflows from abroad have been picking up, generating more liquidity above and beyond that from the banks' nearly 10 trillion yuan in lending last year. 

"With exports recovering and RMB appreciation expectations rising, FX inflows will only get larger, requiring increased sterilisation efforts by the People's Bank of China," Wang Tao, China economist at UBS, said in a note. "In other words, the central bank has to keep running to stand still." 

Inflation figures for December, likely to be published next week, may also contain a nasty surprise, which could have cemented China's will to act now. 

Consumer prices rose 0.6 per cent in the year to November after spending much of 2009 in deflation. Analysts polled by Reuters forecast that the December reading jumped to 1.5 per cent. 

"The increase in required reserves is mainly targeted at curbing inflation expectations," said Nie Wen, an economist at Fortune Trust in Shanghai. "I don't think the central bank will take aggressive tightening action until more figures in the coming months show steep inflation growth and a sustainable improvement in exports." 

Expectations that more tightening steps will follow are, of course, predicated on the view that monetary conditions in China are still very loose. 

The government is believed to be targetting about 7.5 trillion yuan in new lending this year. With as much as 1.5 trillion yuan of last year's loans still sitting unused in corporate bank accounts, credit in the economy should remain ample throughout this year. 

It is also important not to overstate the power of reserve requirements. In China's last tightening cycle, from mid-2006 to mid-2008, the central bank raised the ratio 18 times. That did not stop the stock market from soaring until late 2007 and inflation from climbing to a decade-high in early 2008. 

Source : China puts brakes on growth - Telegraph

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## grey boy 2

*Construction of China's jumbo jet engine base starts - People's Daily Online* 13:09, January 13, 2010 

*On the morning of January 12, the Aviation Industry Corporation of China's Commercial Aircraft Engine Company, the main participant and general manufacturer of China's jumbo jet engine project, held a ceremony to mark the beginning of its research and development base construction in Shanghai's Minhang District. Construction of the base which will integrate many functions such as research, development, airworthiness, customer service, and international communication indicates the important progress that China has made in developing jumbo jet engines.*

*Reporters learned that the total land area for the base will reach 450 mu with the floor area standing at 300,000 square meters. It is expected to be completed in 2013 at a cost of 3.23 billion yuan.*

By People's Daily Online

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## AnGrz_Z_K_Jailer

*Shanghai overtakes Tokyo as busiest Asia stock market*


15 Jan 2010, 0307 hrs IST, Bloomberg

SINGAPORE: Shanghai overtook Tokyo as Asia&#8217;s biggest stock market by trading value last year, as an 80&#37; jump in China&#8217;s benchmark index boosted 
equities demand. 

Shares worth $5.01 trillion changed hands on the Shanghai Stock Exchange in 2009, compared with $4.07 trillion on the Tokyo Stock Exchange, according to data compiled by Bloomberg. The Shanghai and Tokyo exchanges were ranked third and fourth globally, the Nikkei newspaper reported, citing the World Federation of Exchanges. Only the Nasdaq stock market and the New York Stock Exchange had higher trading volumes than Shanghai. 

&#8220;As an emerging market, China has a very high ratio of stocks changing hands,&#8221; said Li Jun, a strategist at Central China Securities Holdings in Shanghai. &#8220;Increased new share sales are also one reason behind the high turnover. It&#8217;ll probably take one year or two for China to catch up with the world&#8217;s biggest.&#8221; 

The Securities Regulatory Commission on January 8 approved short sales, stock index futures and margin trading. Morgan Stanley said the reforms may boost transaction volume by 50%, helping to usher China&#8217;s market into a &#8220;new era.&#8221; 

The Shanghai Composite Index rebounded last year from a 65% loss in 2008 after the government introduced a 4 trillion-yuan ($585.9 billion) stimulus package, encouraged banks to advance record loans and subsidised individual purchases of cars and home appliances. Japan&#8217;s Nikkei 225 Stock Average rose 19%. 

Shanghai has the world&#8217;s third largest stock market by market capitalization, briefly overtaking Tokyo in July 2009. New York is the biggest by market cap. Mainland companies raised 207.6 billion yuan from initial public offerings in 2009, double from the previous year, according to Bloomberg data.

Source : Shanghai overtakes Tokyo as busiest Asia stock market- Global Markets-Markets-The Economic Times

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## Lankan Ranger

*China's foreign exchange reserves near $2.4 trillion *

*Jan. 15 (Xinhua) -- China's foreign exchange reserves almost hit 2.4 trillion U.S. dollars by the end of 2009, up 23.28 percent year on year, the People's Bank of China, the central bank, announced on Friday. 

China's forex reserves near $2.4 trln_English_Xinhua*

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## grey boy 2

*China automaker Geely inaugurates assembly line in Russia - People's Daily Online* Jan 16 2010

An assembly line of Chinese automaker Geely was officially launched in Russia's Caucasus republic of Karachay-Cherkessia, local media reported Saturday. 

*Russian car company Derways has started body welding and other assembling work of Geely-brand vehicles on Friday, according to Russian state TV channel Russia-24. *

*Some 1,100 units were expected to be produced by the end of February, the first batch of which will be delivered to Moscow by Jan. 20. The annual production of Geely will be no lower than 12,000 units. *

*Besides Geely, Derways was also scheduled to manufacture for other Chinese brands such as Li Fan, Great Wall Motors, Chery and Haima. The total annual output of the Derways company was estimated to reach 100,000 units. *

*Local residents could enjoy price discounts when purchasing these cars, according to the company, which also foresees a great demand of Chinese vehicles on Russian market. *

Source: Xinhua

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## grey boy 2

*TCL starts to build $3.6 bln 8.5G LCD production line - People's Daily Online*

China's top appliance maker TCL Saturday started building a 8.5-generation LCD production line in the southern city of Shenzhen to meet the rising demand for flat-screen TVs. 

*The plant, in which TCL and Shenchao Technology Investment Company each hold a 50 percent stake, involves an investment of 24.5 billion yuan (3.6 billion U.S. dollars). It covers an area of 600,000 square meters. *

The fund includes 10 billion yuan from TCL and Shenchao, bank loans and also investment from domestic TV makers and overseas LCD panel producers, the two investors said. 

*The plant has a full capacity of 14 million LCD panels per year with an estimated output value of 16.9 billion yuan (2.48 billion U.S. dollars). *

Its initial phase is expected to be put into operation in August 2010 and start mass production at the end of 2011. The second phase will start mass production one year later. 

*TCL, founded in 1981, sold 14.28 million color TVs globally last year. Shenchao Investment, owned by the Shenzhen government, runs businesses including investment in projects related to integrated circuits and flat screens.* 

Source: Xinhua

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## grey boy 2

*Huaneng to build $703 mln power generators in Xinjiang - People's Daily Online* Jan 17 2010

*China Huaneng Group, China's biggest power producer, will build two 600MW power units in the far western Xinjiang Uygur Autonomous Region, an executive at its Xinjiang subsidiary said Saturday. *

Liu Xinmin, general manager of the Huaneng Xinjiang Energy Development Company, said the regional development and reform commission, the local economic planner, gave the green light to the initial phase of its Turpan power plant Saturday. 

*The plant will help to meet rising power demand in Turpan and southern Xinjiang and also is a major power source for the country's west-east electricity transmission project, Liu said.* 

*Huaneng planned to start construction this April. The units, which cost about 4.8 billion yuan (703 million U.S. dollars), are expected to be put into operation at the end of 2012, he said. *

*Huaneng also planned to add another two 600MW power units to the Turpan power plant before 2015 to take advantage of the rich coal resources and the region's position as a power-grid hub, the executive said.* 

*The power grid in Turpan will be connected this year to a national one that helps transmit power from the west to the east. *

Source: Xinhua

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## grey boy 2

*Economist warns against China bashing from Washington over trade - People's Daily Online* Jan 18 2010

*The United States needs to face up to its own imbalances rather than engage in more China bashing over trade, said world-renowned economist Stephen Roach. *

*"The West, especially the United States, needs to take a long hard look in the mirror and face up to its own imbalances. Hypocrisy is not a recipe for global statesmanship," wrote Roach in Singapore's leading financial daily Business Times this week. *

*As U.S. congress and the White House look toward the mid-term elections of 2010, Washington could well up the ante on China bashing -- moving from a rhetorical assault to widespread trade sanctions, predicted Roach, chairman of Morgan Stanley Asia. *

*He noted that the United States has already imposed trade sanctions on Chinese exports of tyres, coated paper product and steel piping and grating in recent month. *

*Roach argued that the expected salvo from Washington was apparently built on hypocrisy as the United States itself should also be held accountable for the global economic imbalances.* 

*Meaningful progress on global rebalancing could not occur without progress by both China and the United States and that China has a more optimistic prospect of achieving rebalancing, he said. *

"There is good reason to believe that China ... is about to take dramatic steps in rebalancing its domestic economy in a fashion that would provide a sustained and meaningful reduction in its current account surplus." 

*China viewed the recent crisis and recession as an unmistakable wake-up call, which left the country with little choice other than to shift the sources of its GDP growth from external to internal markets, he said. *

*However, it was hard to be sanguine about the outlook for America's saving and current account imbalance. *

*"The United States, with its massive shortfall in domestic saving, has come to rely heavily on surplus saving from abroad to fund economic growth. And it must run massive current account deficits in order to attract that capital," he said. *

*All nations need to be accountable for the role they need to play in driving a long overdue global rebalancing, said Roach. "It would be the height of folly to try and force China into a counter-productive approach, especially since it appears to be taking its own rebalancing agenda very seriously." *

Source:Xinhua

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## AZADPAKISTAN2009

GREAT NATION SYMBOL OF PEACE AND NEW WORLD

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## xuxu1457

english.news.cn
China's Internet users top 384 million 
BEIJING, Jan. 15 (Xinhua) -- China reported 384 million Internet users by the end of 2009, up 28.9 percent, or 86 million, from a year ago, said a report from the China Internet Network Information Center on Friday. 

Internet users surfing through mobile phones increased by 120 million to top 233 million, about 60.8 percent of the total Internet population, thanks to expanding third-generation (3G) business, said the report. 

About 30.7 million surf the Internet only through mobile phones, about eight percent of the total Internet users. 

Internet users in the rural areas hit 106.81 million in 2009, up 26.3 percent year on year, who accounted for 27.8 percent of the total Internet users, said the report. 

Online business trade soared remarkably with trade volume at 250 billion yuan (36.60 billion U.S. dollars) in 2009, said the report. 

The 384 million Internet users take about one third of China's 1.3 billion population.

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## grey boy 2

*Rogers trains guns on Chanos for China remarks*







*American investment guru Jim Rogers has debunked contrarian investor James S Chanos suggestions that China's investment bubble may lead to a Dubai-style implosion. Rogers said the Chinese economy is not in any imminent threat of collapse, and investors and companies are wise to stay involved with it. *

*"It is absurd to say China is in a bubble when the stock market is 50 to 60 percent below its all-time high. If you have a bubble you have things going through the roof. You have everybody screaming fire every day," he said. *

*Chanos, a hedge fund investor who predicted the collapse of Enron, said speculation in China's real estate sector was 1,000 times worse than Dubai.* 

*"His remarks show a lack of understanding about Dubai and of China. Dubai's economy is built on real estate speculation, whereas China's is not. It is just part of the Chinese economy," said Rogers.* 

He, however, warns that the world could be heading again for 1970s-style inflation. 

*Rogers, 67, lives in Singapore and is the co-founder of the Quantum Fund along with noted investor George Soros. *

He said while concerted government efforts to bail out economies may have averted a depression, it would eventually lead to spiraling price increases. 

*"Whenever governments print a lot of money, you get inflation. That is the way the world has always worked," he said. *

"I am sure inflation is going to go to levels seen in the 1970s, if not higher. It is not necessarily going to happen this year, but certainly over the next few years." 

*Rogers believes that the inflation risk would be more acute in China as exchange controls would trap funds and restrict outflows. *

*"It (the money) has only so many places it can go. You cannot go and buy a house on the (French) Riviera. More and more overseas Chinese investors would want to keep their money in yuan, as they know it would appreciate later. *
Refuting claims that interest rates would need to remain low to avert potential deflation, he said central banks would have to hike rates in order to keep their economies under control. 

"Governments around the world are going deeper and deeper into debt and this has got to be financed. Someone will have to pay higher rates eventually, " he said. 
*
"Interest rates have already gone up to some extent. The US long-term government bonds market has already dipped beyond its low. The US government is trying to hold down interest and mortgage rates but there is only so much they can do." *

Rogers, who last invested in China equities in October 2008, said he had no clear view on whether the recent rally in share prices in China and around the world would reverse. 

*"We are closer to some kind of top than we were and we are overdue for a correction. But are we going to have one? I don't know," he said. *

Rogers said he would continue to invest in commodities, as demand continues to be strong. 

"My investments have been mainly in commodities because if the world economy improves there are going to be shortages. If it doesn't improve, commodities are still the place to be in, as they (governments) are printing so much money," he said. 

Rogers, whose latest book is A Gift to My Children: A Father's Lessons for Life and Investing, remains bullish about the prospects for the Chinese economy over the long term. 

*He believes the economic crisis could prove the catalyst for China to take over from the US as the next economic superpower. *

*"In the 1920s and 1930s there was shift from the UK to the US aggravated by financial upheaval and the same thing is happening now. We are in the process of a transition of economic power from America to Asia. It has been exacerbated by the financial situation," he said.* 

*He believes that if China does become the world's dominant economic power again, it will have achieved something no other country has ever done before. *

*"Great Britain was great once, Egypt also once and Rome once too, but China will have done it four of five times. After 300 years of decline everything is coming together for China in the 21st century," he said. *

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## xuxu1457

english.news.cn
China's GDP grows 8.7&#37; in 2009 

English.news.cn 2010-01-21 10:01:28


BEIJING, Jan. 21 (Xinhua) -- China's economy expanded 8.7 percent in 2009 from a year earlier, indicating that China has achieved its full-year growth target of 8 percent for 2009, which the government believes is essential to generate more jobs for the country's 1.3 billion population.

The gross domestic product (GDP) reached 33.54 trillion yuan (4.91 trillion U.S. dollars) in 2009, Ma Jiantang, director of the National Bureau of Statistics (NBS), told a press conference Thursday.

Editor: Zhang Xiang

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## xuxu1457

english.news.cn
China's home mortgage lending up 48&#37; in 2009: central bank 

English.news.cn 2010-01-21 03:02:59 FeedbackPrintRSS 

BEIJING, Jan. 21 (Xinhua) -- China's yuan-denominated individual home mortgage lending rose 1.4 trillion yuan (204.98 billion U.S. dollars) in 2009, up 47.9 percent from the previous year, said a report issued by the People's Bank of China, the central bank, on Wednesday.

The growth rate was 37.4 percentage points higher than the previous year, said the report on China's investment flow in 2009.

Meanwhile, the yuan-denominated property development lending gained 576.4 billion yuan in 2009, up 30.7 percent year on year, and the growth rate was 20.4 percentage points more than the previous year, the report said.

The total mid-term and long-term loans in foreign and domestic currency expanded 7.1 trillion yuan in 2009, up 43.5 percent from the previous year, and the growth rate was 23.4 percentage points more than the previous year.

The short-term loans in foreign and domestic currency expanded 2.3 trillion yuan, up 758.5 billion yuan from the same period last year.

Industrial mid-term and long-term loans in foreign and domestic currency added 1 trillion yuan among China's major financial institutions, up 26 percent from the previous year.

Infrastructure mid-term and long-term loans in foreign and domestic currency expanded 2.5 trillion yuan, up 43 percent from the same period last year, according to the report.

The central bank said on Jan. 15 that China's new yuan-denominated lending in 2009 hit a record 9.59 trillion yuan (1.4 trillion U.S. dollars), almost double that of the previous year. 

Editor: Lin Zhi

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## xuxu1457

National Economy: Recovery and Posing in the Good Direction in 2009 
National Economy: Recovery and Posing in the Good Direction in 2009
2010-01-21 10:00:00 
Ma Jiantang

Commissioner

National Bureau of Statistics of China

January 21, 2010



The year 2009 is the most difficult time for China&#8217;s economic development in the new century. In face of the severe impact brought about by the global financial crisis in a century and the most complicated domestic and international situations, the Central Party Committee and the State Council sized up the situation, made scientific decision and headed the whole nation united as one to surmount the difficulties of our time; to stick to implement the proactive fiscal policy and moderately easy monetary policy; and to fully implement and further improve the package plan targeting on tackling with the global financial crisis. All these lead to the holding back noticeable sliding of the economy, and the national economy recovered and moved toward a favorable direction.



According to preliminary estimation, the gross domestic product (*GDP*) for the year 2009 was 33,535.3 billion yuan(4.91trillion$), up by 8.7 percent at comparable prices, or 0.9 percentage points lower than that in the previous year. In terms of growth by quarters, it was up 6.2 percent for the first quarter, 7.9 percent growth for the second quarter, 9.1 percent for the third quarter and 10.7 percent for the last quarter. In terms of growth by sectors, the value added of the primary industry was 3,547.7 billion yuan, up by 4.2 percent; that of the secondary industry was 15,695.8 billion yuan, up by 9.5 percent; and that of the tertiary industry was 14,291.8 billion yuan, up by 8.9 percent. 



I. *Agricultural Production *Continued to Develop Steadily with Increase in Grain Output for Consecutive Six Years. In 2009, the total output of grain reached 530.82 million tons, an increase of 0.4 percent over that in the previous year with an output increase for the sixth year. Of this total, the output of summer grain was 123.35 million tons, a year-on-year increase of 2.2 percent; the output of early rice was 33.27 million tons, a growth of 5.3 percent over that in the previous year; the output of autumn grain was 374.20 million tons, a year-on-year decline of 0.6 percent. The output of oil-bearing seeds is expected to grow around 5.0 percent and the output of sugar will drop by 9.0 percent. The output of meat maintained steady growth and the total output of meat in 2009 reached 75.09 million tons, up by 5.0 percent. Of this total, the output of pork was 48.89 million tons, up by 5.8 percent; the number of slaughtered pigs stood at 640 million, up by 5.7 percent, the total stocks of pigs were 470 million, rose by 1.5 percent.



II. *Industrial Production *Picked up Quarter by Quarter, Profits Made Reversed from Sharp Declining to Rising. In 2009, the value added of the industrial enterprises above the designated size was up by 11.0 percent, or 1.9 percentage points lower than that in 2008. Of which, the growth in the first quarter was 5.1 percent, that in the second quarter was 9.1 percent, 12.4 percent growth in the third quarter and 18.0 percent growth in the last quarter. Analysis on different types of enterprises showed that the value added of the state-owned and state holding enterprises went up by 6.9 percent; collective enterprises, up by 10.2 percent; share-holding enterprises, up by 13.3 percent; and 6.2 percent growth for the enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan. The growth of the heavy industry was 11.5 percent and that of the light industry was 9.7 percent. Among the 39 industrial divisions, all witnessed growth over the previous year. In terms of different areas, the growth in eastern, central and western regions went up by 9.7 percent, 12.1 percent and 15.5 percent respectively. The production and marketing situation was good, the sales ratio was 97.67 percent for the industrial enterprises above the designated size. 



In the first eleven months of 2009, the profits made by industrial enterprises above the designated size reached 2,589.1 billion yuan, up by 7.8 percent, over the same period of last year, which was 2.9 percentage points higher than that in the same period of last year. Among the 39 industrial divisions, 30 divisions registered year-on-year growth with profits. 



III. *Investment* Continued to Grow fast, Investment in Areas Related to People&#8217;s Livelihood Speeded up Noticeably. In 2009, the total investment in fixed assets of the country reached 22,484.6 billion yuan, a year-on-year growth of 30.1 percent, with an increase of 4.6 percentage points over the previous year. Of this total, the fixed assets investment in urban areas was 19,413.9 billion yuan, up by 30.5 percent, or 4.4 percentage points higher; and that in rural areas was 3,070.7 billion yuan, up by 27.5 percent, or 6.0 percentage points higher. Of the fixed assets investment in urban areas, the growth of investment in the primary industry was 49.9 percent; that in the secondary industry was 26.8 percent and 33.0 percent for the tertiary industry. In terms of different areas, the investment in urban areas in eastern, central and western regions grew by 23.9 percent, 36.0 percent and 35.0 percent respectively. Investment in areas that related to the improvement of people&#8217;s livelihood increased by a large margin. The investment in infrastructure facilities (excluding electricity) for the whole year topped 4,191.3 billion yuan, up 44.3 percent. Of this total, the growth of investment in railway transportation was 67.5 percent; road transportation, 40.1 percent; urban public traffic, 59.7 percent; services to households and other services, 61.8 percent; education, 37.2 percent; health, social security and social welfare, 58.5 percent. The total investment in the real estate development for the year was 3,623.2 billion yuan, a growth of 16.1 percent, which was 4.8 percentage points lower than that in 2008.



IV. The Growth of *Market Sales *was Steady and Fast, Sales of Selected Products Increased Rapidly. In 2009, the total sales of consumer goods reached 12,534.3 billion yuan, a growth of 15.5 percent, or a real growth of 16.9 percent after deducting price factors, which was 2.1 percentage points higher than that in the previous year. Of this total, the retail sales of consumer goods in cities stood at 8,513.3 billion yuan, up 15.5 percent, while the retail sales at and below county level reached 4,021.0 billion yuan, up 15.7 percent. Grouped by different sectors, the sales by wholesale and retail businesses was 10,541.3 billion yuan, up by 15.6 percent; and that by lodging and catering industry was 1,799.8 billion yuan, up by 16.8 percent. Of the total retail sales by wholesale and retail businesses above designated size, except that of the communication equipment, the rest 20 types of commodities all registered large margin growth. Of which, the growth of clothing, shoes, hats and textiles was 18.8 percent, that of furniture, 35.5 percent and 32.3 percent growth for automobiles.



V. *The Consumer Price and Producer Price *Witnessed Decline for the Whole Year, Picking up Was Shown at the End of the Year. In 2009, the CPI was down by 0.7 percent. Of this total, the CPI declined by 0.9 percent in cities and down by 0.3 percent in rural areas. Grouped by categories, four of the total eight categories witnessed price rise and the rest four had declines, the prices for tobacco and liquor, went up by 1.5 percent, that of the medical care services and personal articles, up by 1.2 percent, that of food went up by 0.7 percent, and that of household appliance and maintenance services, up 0.2 percent; the prices of housing down by 3.6 percent, that of transportation and communication, down by 2.4 percent, clothing, down by 2.0 percent and 0.7 percent decrease for recreation, education, cultural articles and services. The year-on-year change of CPI in November reversed from negative one to positive one, which was up 0.6 percent in November, it was up by 1.9 percent in December. In 2009, the year-on-year change of producers&#8217; prices for manufactured goods down by 5.4 percent, in December it was up 1.7 percent reversing the trend of declining. The purchasers&#8217; prices for raw material, fuel and power down by 7.9 percent for the whole year; the retail prices for commodities dropped down by 1.2 percent.



VI. *The Total Value of Imports and Exports *Dropped in 2009, It Shifted from Declining to Rising in November. The total value of imports and exports for the whole year reached 2,207.3 billion US dollars, a drop of 13.9 percent over that in the previous year. In November, the year-on-year change of total value of imports and exports shifted from negative one to a positive one, which was up by 9.8 percent, it was up 32.7 percent in December. The total value of exports for the whole year was 1,201.7 billion US dollars, down by 16.0 percent; that of the imports was 1,005.6 billion US dollars, down by 11.2 percent; China had a trade surplus of 196.1 billion US dollars, or 99.4 billion US dollars less over that in the previous year. 



VII. *Urban and Rural Residents&#8217; Income *Increased Steadily, the Employment Situation was Better than Expected. In 2009, the per capita income of urban household was 18,858 yuan. Of this total, the per capita disposable income of urban residents was 17,175 yuan, up by 8.8 percent, or a real increase of 9.8 percent after deducting price factors. Of the per capita income of urban household, the growth of wage income was 9.6 percent; that of operating net income was 5.2 percent; property income, 11.6 percent, transferred income, 14.9 percent. The per capita net income of rural residents was 5,153 yuan, up by 8.2 percent over that in the previous year, or a real increase of 8.5 percent after deducting price factors. Of this total, the growth of wage income was 11.2 percent; the production operating income from the primary industry was 2.2 percent, and that from the secondary and tertiary industries was 10.0 percent; the property income was 12.9 percent and 23.1 percent growth for the transferred income. The total newly increased employment in urban areas was 9.10 million people. By the end of the year, there were 149 million rural migrant workers; it was 1.7 million people more than that at the end of the first quarter of 2009.



VIII. Grew Rapidly, Newly Increased Credits Increased by a Large Margin. At the end of December, the broad money (M2) was 60.6 trillion yuan, it was up 27.7 percent as compared with that at the end of 2008, the growth rate was 9.9 percentage points higher over that in the previous year; the narrow money (M1) was 22.0 trillion yuan, up by 32.4 percent, or 23.3 percentage points higher; the cash in circulation (M0) was 3,824.6 billion yuan, a rise of 11.8 percent, or down by 0.9 percentage points. The amount of outstanding loans of all financial institutions was 40.0 trillion yuan, increased by 9.6 trillion yuan over that at the beginning of this year, or an increase of 4.7 trillion yuan as compared with the same period last year. 



At present, the base of world economy recovery is relatively weak; there are uncertainties in domestic economic development. Facing the complex situation of coexistence of difficulties and opportunities, we should unswervingly carry out various plans set by the central government on economic work; thoroughly apply the scientific outlook of development; maintain the consistency and stability of the macro economic policy; put forth effort to enhance the pertinence and flexibility of policies; further improve the quality and efficiency of economic growth; accelerate the change of economic growth mode and the adjustment of economic structures; actively push forward reform, opening-up and independent innovation; attach importance to the improvement of people&#8217;s livelihood and maintain a harmonious and stable social climate; take both international and domestic situation into consideration and plan accordingly; and achieve a steady and fast growth of national economy.

*yuan:U.S. Dollar=6.8:1
**

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## AnGrz_Z_K_Jailer

*China's growth surges to 10.7 per cent *

China's economic growth accelerated to 10.7 per cent in the final quarter of 2009, adding to pressure on Beijing to cool inflation pressures while keeping the country's recovery on track. 

Published: 4:30AM GMT 21 Jan 2010

The quarterly growth exceeded most forecasts and brought 2009's full-year expansion to 8.7 per cent. The government had forecast 8.3 per cent growth for the coming year.

China has rebounded strongly from the global downturn but the government worries that heavy stimulus spending and bank lending might fuel inflation. Regulators have ordered banks to control lending and analysts expect them to raise interest rates this year.

"At present, the base of the world economic recovery is relatively weak. There are uncertainties in domestic economic development," Ma Jiantang, commissioner of the National Bureau of Statistics, said at a news conference. "We should ... maintain consistency and stability of macroeconomic policy."

Consumer prices fell through much of the year but the decline turned around in November and prices rose by 1.9 per cent in December from a year earlier, Ma said.

China has led the recovery from the global financial and economic crisis, due partly to its 4 trillion yuan ($586 billion) of stimulus spending. 

"Obviously the month-on-month growth momentum is very strong," said Xing Ziqiang, an economist at CICC in Beijing. "So I think the chances for us to see an interest rate rise in the first quarter are increasing." 

Source : China's growth surges to 10.7 per cent - Telegraph

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## xuxu1457



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## abdul1

China Losing to U.S. Among Investments of Choice (Update1) - Bloomberg.com


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## AnGrz_Z_K_Jailer

*Rising inflation a big worry for Chinese govt*


23 Jan 2010, 0018 hrs IST, REUTERS.

BEIJING: Wang Zihua&#8217;s last pay rise was two years ago and the 56-year-old post office worker in the northern Chinese city of Harbin is concerned his 
1,200 yuan monthly salary is being eaten away by rising prices. 

Chinese inflation remains tame, but prices have been creeping up in the past few months and policymakers may not only have to step up their rhetoric but also the pace of monetary tightening to prevent Wang&#8217;s fears from becoming a reality. &#8220;I really worry that prices may rise quickly in the future, especially for rice and vegetables. After all, we can skip buying things like clothing and entertainment, but we can&#8217;t skip food,&#8221; Wang said. 

Inflation picked up to 1.9&#37; in December, its highest in 13 months, though still low by international standards. 

Economists have dismissed the rise as a result of volatile food prices and bad weather, but these factors could profoundly affect consumer and corporate behaviour, in turn determining how fast prices may rise over the next few months. 

China&#8217;s central bank has been trying to fulfill its promise to manage inflation expectations this year by cracking down on speculation in the property market, curbing rampant loan growth, guiding market rates higher and lifting bank reserve requirements. 

However, double-digit economic growth in the fourth quarter of 2009, accelerating consumer price rises, and surging exports all shorten the odds that the central bank will go farther and raise interest rates perhaps as early as this quarter. 

&#8220;It&#8217;s safe to say that this will only increase inflationary expectations, and inflationary expectations can be self-fulfilling. So there&#8217;s no point for them to wait,&#8221; Qu Hongbin, chief China economist with HSBC in Hong Kong, said of Thursday&#8217;s batch of strong economic data. 

In fact, food prices have already risen by more than 5 percent in the year to December and with food accounting for a third of the consumer price basket, China is particularly vulnerable to food price shocks. 

In 2008, food prices spiked more than 14 percent after pig stocks were decimated by the blue-ear disease, driving overall prices 5.9 percent higher. 

What should be particularly unsettling for the People&#8217;s Bank of China is that its own survey results for the fourth quarter show an index of future price expectations outstripping another of future income confidence by the biggest margin in two years. 

&#8220;If workers expect inflation to increase, they may argue for higher wages. If corporations see costs going up, they may want to raise prices,&#8221; said Wensheng Peng, chief China economist with Barclays Capital in Hong Kong. 

&#8220;That channel is particularly important given what happened last year &#8212; expansion of bank credit. That in itself already generated some inflation expectations,&#8221; he said. 

FALLING BEHIND? 

China&#8217;s growth has led the global economic recovery, so how aggressively Beijing tightens policy is crucial for international markets. Last week, investors pulled a net $348 million out of China-focused equity funds, the most in 18 weeks, fund tracker EPFR Global said in a report. 

Source : Rising inflation a big worry for Chinese govt- International Business-News-The Economic Times


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## xuxu1457

China creates 11.02 mln new jobs in 2009 
BEIJING, Jan. 22 (Xinhua) -- China created 11.02 million new jobs in urban areas in 2009, topping the government goal of 9 million, the Ministry of Human Resources and Social Security said Friday.

Experts call for revisions of China's rising CPI 
China's CPI picks up amid rising inflation fears 
China's PPI up 1.7&#37; in December 2009 
China 2009 Q4 GDP rise 10.7% 
China's fixed-asset investment up 30.1% in 2009 
China's retail sales up 16.9% in 2009 
China's industrial value-added increases 11% in 2009 


This figure was about 22.4 percent higher than the government's whole year target set in March last year, Yin Chengji, spokesman of the ministry told a press conference.

Around 5.14 million laid-off workers were re-employed last year, exceeding the preset goal of 5 million.

Urban unemployment rate stood at 4.3 percent, with 9.21 million people being registered to be unemployed.

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## grey boy 2

*3G network construction drives 589 bln yuan domestic investment in 2009 - People's Daily Online*

The Ministry of Industry and Information Technology (MIIT) said January 20 that the business revenues of China's telecom industry did not rapidly rise along with the popularity of the 3G business in 2009, and is expected to rise by only 4 percent. Meanwhile, the construction of 3G networks has indirectly boosted domestic investment by 589 billion yuan and directly increased consumption by 36.4 billion yuan. 

*China's 3 telecom enterprises completed investments totaling 160.9 billion yuan in 3G network construction, with 325,000 3G base stations built. Following the completion of large-scale networks, the growth in the number of 3G users has accordingly accelerated, with the number of users expected to exceed 15 million. *

According to Lu Xinjie at the Market Operation Research Department of the China Academy of Telecommunication Research, this marks a change in the mode of contribution by the telecom industry to China's economic development, shifting from the previous "direct contribution" by increasing revenues to the current "indirect contribution" by enhancing China's economic development quality. 

*According to the initial estimate by MIIT, the construction of 3G networks in 2009 has indirectly boosted domestic investment by 589 billion yuan, and directly increased consumption by 36.4 billion yuan and indirectly by 14.1 billion yuan. It has also directly increased GDP by 34.3 billion yuan and indirectly by 141.3 billion yuan, and has directly created 260,000 new job opportunities and indirectly created 670,000 new opportunities. *
*At the same time, 3G services have also facilitated the deployment and innovation in IT, communications, commerce, finance, culture and entertainment, and have promoted the development of emerging industries such as mobile Internet and e-commerce.*

MIIT holds that the low operating revenues in China's telecom enterprises relate to the operation structures of these enterprises. In 2009, 3 telecommunication companies focused on personal mobile device users and all of China's telecom operators did not show interest in enterprise users. 

*Lu holds that many factors can be attributed to insufficient innovation in China's telecommunication operators, but the most important factor is that a market situation of effective competition had not formed in 2009. In 2008, China Mobile's prime operating revenue accounted for 52.3 percent of China's total. Between January 2009 and November 2009, China Mobile's prime operating revenue accounted for 55.4 percent of China's total, an increase of 3.1 percentage points. This shows that China Mobile's status in China's telecommunication market has improved since the restructuring of China's telecom industry.*

By People's Daily Online


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## oct605032048



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## grey boy 2

*Beijing's GDP hits 1.18659 trillion yuan in 2009 - People's Daily Online* Jan 25 2010

*Beijing has achieved a remarkable success in coping with the global financial crisis and its GDP reached 1.18659 trillion yuan in 2009, an increase of 10.1 percent over the previous year, Guo Jinlong, Mayor of Beijing, said to the opening session of the Third Session of the Thirteen People's Congress of Beijing Municipality on Monday.* 

Guo added that the per-capita GDP of the city had surpassed 10,000 U.S. dollars.

*Also, the capital city's fiscal revenue last year reached 202.68 billion yuan, a 10.3 percent growth over the previous year. *

By People's Daily Online


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## grey boy 2

*Tourism to exceed 1.44 trillion yuan in 2010 - People's Daily Online* Jan 26 2010

*China's tourism industry will grow by 12 percent to exceed 1.44 trillion yuan ($210 billion) in 2010 and employ 500,000 more people in the industry, according to a nationwide tourism meeting today, reported by xinhuanet.com.cn.*

Shao Qiwei, head of China's National Tourism Bureau, is hopeful that the inbound tourism will resume this year and the outbound tourist flow remains stable.

*"We will focus on the domestic tourism this year and change the mode of tourism development," said Shao.*

The national tourism administration urged some provinces to be experimental in the industry and speed up the development of local tourisms.

*"We will release a guidebook on national tours to promote people to do traveling more," Shao was quoted as saying.*

Source:chinadaily.com.cn


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## hero

grey boy 2 said:


> *Tourism to exceed 1.44 trillion yuan in 2010 - People's Daily Online* Jan 26 2010
> 
> *China's tourism industry will grow by 12 percent to exceed 1.44 trillion yuan ($210 billion) in 2010 and employ 500,000 more people in the industry, according to a nationwide tourism meeting today, reported by xinhuanet.com.cn.*
> 
> Shao Qiwei, head of China's National Tourism Bureau, is hopeful that the inbound tourism will resume this year and the outbound tourist flow remains stable.
> 
> *"We will focus on the domestic tourism this year and change the mode of tourism development," said Shao.*
> 
> The national tourism administration urged some provinces to be experimental in the industry and speed up the development of local tourisms.
> 
> *"We will release a guidebook on national tours to promote people to do traveling more," Shao was quoted as saying.*
> 
> Source:chinadaily.com.cn



Is it domestic or international tourism?


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## grey boy 2

*IMF says Chinese economy to grow 10% for 2010 - People's Daily Online* January 27, 2010 

*The International Monetary Fund (IMF) said Tuesday the Chinese economy will expand* 10.0 percent this year and 9.7 percent *next year, much better than previous forecasts.* 

Source: Xinhua


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## oct605032048

hero said:


> Is it domestic or international tourism?



. combined


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## abdul1

interesting:

China's runaway growth train on a dangerous course



> Professor Yu Yongding says he is ''one of 50 well-known Chinese economists in China''. Some respected market economists say he has a better grasp of China's macro-economy than anybody else, full stop.





> "When a country has an investment rate over 50 per cent [of] GDP and rising, you say this country is not suffering from overcapacity! &#8230; are you serious?"





> Yu has elaborated further on his views. He believes China is trapped in a cycle where constantly rising growth in investment is constantly increasing China's supply, but consumption has conspicuously failed to grow fast enough to absorb it. And so* China is forced to increase investment in order to provide enough demand to absorb the previous round of increased supply, thus creating ever-widening cycles of oversupply.* In this manner, the *investment share of gross domestic product has increased from a quarter of GDP in 2001 to at least half.* "There is sort of a chase - demand chasing supply and then more demand is needed to chase more supply," he says. *"This is of course an unsustainable process."*
> 
> From 2005 China's overcapacity problem had been "concealed" by ever-increasing net exports - but that strategy was interrupted by the financial crisis. Then came last year's globally unprecedented stimulus-investment binge, which might not have been so worrying if it were delivering things that people needed. But the Government's hand in resource allocation has grown heavier since the crisis without reforms to make officials more responsible for what they spend. "As a result of the institutional arrangements in China, local governments have an insatiable appetite for grandiose investment projects and sub-optimal allocation of resources," as Yu previously said, in his Richard Snape lecture for the Productivity Commission in November.
> 
> So there are now airports without towns, highways and high-speed railways running parallel, and towns where peasants are building houses for no reason other than to tear them down again because they know that will earn them more compensation when the local government inevitably appropriates their land. It's great for Australia in the short term, because we supply the materials, but it's unsustainable. One day China's overcapacity problem will become real.
> 
> That will be the Wile E. Coyote moment: when the resource-exporting world falls off a cliff.


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## oct605032048

China supply the world with goods people needs. That it. Even last year world import declined 30&#37;, but China's export declined only 20% and made China overpass Hans as world No.1 exporter.

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## grey boy 2

*China's local governments strive to house average people - People's Daily Online* Jan 29 2010

*Local governments nationwide are vowing to house average people whose dreams of owning a private residence are fading amid reckless property price surges.*

The resolutions were made public when home prices topped the agenda at annual sessions of local legislative bodies that opened in January.

*China's real estate market showed signs of overheating in the second half of 2009 despite the global financial crisis. DTZ, one of the world's leading real estate advisors, said China's average home price in 2009 was estimated at 4,518 yuan per square meter, up 30 percent from 2008.*

*Beijing would rein in property price hikes through persistent crackdowns on illegalities, including delaying the launch of projects and leaving construction land idle to drive up prices, said Mayor Guo Jinlong at the full session of the Beijing Municipal People's Congress.*

*In 2010, the government would build or purchase 134,000 welfare houses, including houses for rent and affordable houses for people with low income.*

*It also planned to invest 100 billion yuan (14.7 billion U.S. dollars), or almost 10 percent of Beijing's GDP in 2009, in land development to stabilize the real estate market.*

*Last year, Beijing saw the per capita disposable income of urban residents increase 9.7 percent to 26,738 yuan, and the average price of most new homes jump 50 percent, according to a survey conducted in mid-December by the Beijing News newspaper.*

Despite lofty prices, residential properties of 18.8 million square meters were sold in Beijing in 2009, up 82.3 percent year on year, said the municipal bureau of statistics earlier this month.

*"The ongoing property craze suggested potential bubbles. We have limited land resources, but I heard someone owned 100 houses in Beijing," said Qiu Ganqing, a deputy to the Beijing Municipal People's Congress.*

*The southern island province of Hainan also faces property bubble concerns after the central government announced a plan this month to build the island into a top international tourist destination by 2020.*

The government would curb the speculative bubbles, as well as build more welfare houses for low income families, said Luo Baoming, provincial governor at the full session of the Hainan Provincial People's Congress.

*In Shanghai, home price growth saw an 87.4-percent rise in 2009, DTZ said.*

*The Shanghai government would further curb investment-led demand in the housing market, and build 700,000 welfare houses by 2012, said Yu Zhengsheng, secretary of the Shanghai Municipal Committee of the Communist Party of China, at the annual full session of the Shanghai Municipal People's Congress.*

*"Shanghai faces a tight land supply. So our residential properties should mainly benefit inhabitants, not investors," Yu said.*

"Driven by high property prices, the cost of home rents has also soared," said Yin Baoxing, a deputy to the Shanghai Municipal People's Congress.

*China had made several moves to stop the bubble in an early stage, including reimposing a sales tax on homes sold within five years of their purchase from this year and increasing the down payment requirement for land purchases to at least 50 percent of the total price.*

The measures would crack down on speculation and lead to stable house prices, said Liu Hongyu, head of the real estate research center of Tsinghua University.

*But DTZ said since it takes about a year to finish construction projects, the supply of commodity residential homes should peak in 2011 when the imbalance of demand and supply is expected to be addressed. *

Source: Xinhua


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## grey boy 2

*China's exports benefit people around the world - People's Daily Online* Jan 28 2010

*Workers at Ningbo Rifeng Electric Appliance Company have been working extra hours in recent days.*

"We make all kinds of flashlights, headlights that are sold to Europe, America, Middle East and Africa. The demand for our products began to surge in late 2009, we have too many orders to manage," Zhu Changqing, the general manger of the company said.

*Countless made-in-China products are shipped to the world, making contributions to improving people's lives. In 2009, China surpassed Germany to become the world's biggest exporter.* 

"The increase of China's exports is a win-win result, benefiting people around the world," analysts indicated.

*Made-in-China makes life more enjoyable*

U.S. journalist Sara and her family tried to live without China-made products. In her one-year experiment, she put much energy and time into looking for substitutes of China-made goods, which resulted in higher costs in daily life. "It is better to co-exist with Chinese products," Sara concluded at the end.

"China enables western countries, in particular the U.S. to enjoy services and commodities at low prices," said Yu Xiaohua, associate professor with Georg-August-Universität Göttingen, who believes China-made products help the masses maintain their life quality.

"Western countries rely on the cheap products from China to subsidize their low-income groups," Yu said. To some extent, Chinese products serve as a stabilizer of their society. This is more evident after the outbreak of the global financial crisis.

Yao Jian, spokesperson of China's Ministry of Commerce, stated: "China played a critical role in combating the financial crisis, by providing people in other counties with a large quantity of quality and less expensive daily necessities."

*"Collaborative manufacture" profit sharing*

Ordinary people are not the only group benefiting from China exports. Many multinational companies and foreign companies are also sharing the benefits of "China exports", as "made in China" is transforming to "made with China".

"The import and export volume of foreign-invested companies account for 60 percent of total volume in China," said Yu Xiaohua. "They earned remarkable profits from the transactions". Benefiting from China's manufacturing bases and population advantage has already become a significant strategy of multinational companies.

Swedish company Sandvic is one such example. Last September, Sandvic built its largest mining machine center in Shanghai which targets the global market. Foreign companies and individuals sales to application have all benefited from "China exports".

*Boosting imports, more China opportunities*

Experts say a huge amount of imports brought about by exports is worth paying attention too. "In the global market system, a country's ability to import is dependant on its ability to export. The increase of China's exports means new markets and opportunity," Mei Yuxin, a research fellow affiliated to the Ministry of Commerce said.

Prior to the accession to the WTO, the western media hyped up China's grabbing of ASEAN's export. The fact is China became the fastest growing export market of the ASEAN. "Without the tangible benefits, can the China-ASEAN FTA be realized so quickly?"

"Many countries' exports to China are better than to other counties." Yao Jian's statistics show, the EU's export dipped 30 percent in first half of 2009, but its export to China only declined 16 percent; the U.S. export dropped 22 percent by October, in contrast export to China declined 9 percent. In 2009, European and American exports to China fell by just half of the overall decline.

*"This shows China's market is open and conducive. It reins in their decrease of exports. China's foreign trade is active and conducive to the global economy," Yao Jian concluded.*

By People's Daily Online


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## grey boy 2

*China's gold output ranks 1st in world for 3rd year - People's Daily Online*
Jan 29 2010
*According to the latest statistics from the China Gold Association, China's gold output reached 313.98 tons in 2009, up 11.34 percent year-on-year. This was the first time that China's gold output had exceeded 300 tons, setting a new record.*

*So far, China's gold output has been first in the world for 3 consecutive years. In 2009, the industrial output value of China's gold industry reached 137.53 billion yuan, up 18.56 percent year-on-year. China's top 5 provinces by gold output are Shandong, Henan, Jiangxi, Fujian and Yunnan, and the gold output of these 5 provinces account for 59.48 percent of China's total. At present, more than 500 counties produce gold, and the gold industry has become the pillar industry in more than 100 counties.*

By People's Daily Online


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## grey boy 2

*China's PCT application volume enters global top 5 - People's Daily Online* February 02, 2010 

*Reporters learned from the director-generals conference held by the State Intellectual Property Office that China received 977,000 patent applications in 2009, up 18 percent year-on-year. *

The application volume of China's domestic invention patents reached another high-level, and accounted for 73 percent of the total invention application volume. The amount of patent cooperation treaty (PCT) applications from China reached 8,000, ranking among the top-5 in the world. Chinese enterprises are gradually becoming owners of intellectual property inventions and China's intellectual property invention ability has strengthened greatly.

*Reporters also learned that the 11th Patent Awards of China winners were announced in Beijing February 2, including 15 gold award winners and 170 outstanding award winners.*

By People's Daily Online

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## grey boy 2

*China's military-industrial group listed in world's top 500 - People's Daily Online* Feb 03 2010

*China South Industries Group Corporation (CSG) realized a revenue of 197.1 billion yuan in 2009, up by 29.6 percent year on year. With 186.2 billion yuan total assets (an increase of 16.1 percent), CSG is listed in the world's top 500 enterprises for the first time.*

As a giant state-owned enterprise directly under the administration of China's Central Government and an investment institution authorized by the State Council, CSG possesses more then 40 industrial enterprises and 23 research & development centers. 

*It has established production bases & marketing institutions in over 30 countries and regions with products distributed to more than 100 countries all over the world. *

*Engaged in the four main fields of special products including military products, auto-vehicles, new resources of energy and equipment manufacture, CSG has been playing a very important role in China's national economic development. It plans to achieve net profits of 20 billion yuan which will double 2009's profits.*

By People's Daily Online


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## oct605032048

China's Efforts Narrow Gap Between The Rich And Poor
China's Efforts Narrow Gap Between The Rich And Poor-»ª¶û½ÖÈÕ±¨

The increase in inequality in China has leveled off in recent years and could be less severe than previously thought, the Organization for Economic Cooperation and Development says, suggesting that Beijing is starting to make progress in tackling one of its biggest social problems.

The OECD, in its economic survey of China published Tuesday, said more welfare spending in rural areas and increased migration to cities helped to arrest a widening of the income gap. The Paris-based organization urged China to lower what is still a fairly high level of inequality by further boosting social programs and eliminating discrimination against rural residents.

The report is the OECD's second major study of China, which isn't a member of the organization. China's economy is on pace to surpass Japan this year as the world's second-biggest after the U.S. The OECD urged China to take a range of measures to liberalize its economy, such as freeing up interest rates to encourage banks to lend more to small companies, and privatizing state-owned enterprises. It also said that allowing the currency to appreciate would help the government manage the economy better.

China's breakneck economic growth of the past three decades has pulled hundreds of millions of people out of poverty. But the incomes of people at the top have risen much faster than the rest, creating new divisions in a once-egalitarian society. Tensions between property developers and dispossessed farmers, and between factory bosses and their rural work force, are often a flashpoint for social conflict. That has pushed China's government to narrow the gap, and officials have repeatedly said they will do more to boost incomes of the worst-off.

'We've already seen, in the last five years, a stabilizing of the disparities,' said Richard Herd, a senior economist at the OECD, told a press briefing in Beijing. Much of that is due to an enormous movement of rural people off farms and into urban jobs, a change which allows them to raise their incomes significantly. 'You've had a major adjustment in the labor market since the mid-1990s,' he said.

China's income inequality as measured by the Gini index -- a scale on which zero is perfect equality and 100 is perfect inequality -- was at 49.6 in 2005, already greater than the U.S., according to the Chinese Academy of Social Sciences. But the OECD, using what it says are better estimates of price changes and the ranks of undocumented rural migrants in cities, puts the Gini index for 2005 at 41, and says the measure of inequality edged down to 40.8 by 2007.

The OECD's numbers indicate that inequality remains higher in China than in the U.S. and most other developed countries. But China's inequality remains less severe than that of South Africa, Brazil, Chile, Russia or Mexico. Many domestic commentators have urged China to narrow the income gap and avoid the so-called Latin Americanization of its economy, a reference to the region's wealth disparities.

Chinese officials often focus on the gap between the country and cities. Last year, per-capita annual income in urban areas was about $2,500, more than three times the $750 in rural areas -- a ratio that has risen over the past decade.

But that comparison doesn't take into account the growing number of rural migrant workers in urban areas, or the fact that prices for most things are cheaper in rural areas. After adjusting for those factors, the OECD says, average urban incomes are actually closer to two times rural ones, not three.

Much of the remaining gap between urban and rural incomes comes from urban workers having more education than rural ones, Mr. Herd said. He urged China's government, which has already cut school fees, to make 12 full years of education universally available in the countryside.

Andrew Batson

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## grey boy 2

*Software industry to enjoy rapid growth thanks to policy support - People's Daily Online* February 04, 2010 

*China's software industry is expected to grow by around 25 percent in 2010, remarked the Ministry of Industry and Information Technology (MIIT) February 3, adding that the industry will continue to receive strong policy support.*

*In 2009, China's software industry revealed a V-shaped recovery trend. Data from MIIT showed that the software industry's annual revenue grew 25.6 percent year on year in 2009 to 951.3 billion yuan (139.36 billion U.S. dollars), the increase rate was 4.2 percentage points lower compared with 2008. The top 100 software enterprises realized profits growth of over 20 percent.*

China's software industry will remain far below saturation in 2010, and will be on fast track in the coming several years, said the MIIT.

*An official from the MIIT pointed out that the IT applications in the 4 trillion yuan stimulus package, the expansion of the banking industry and the booming 3G construction will bring remarkable demand for software services. In addition, relevant policies and laws will create new chances for the software industry in 2010.*

By People's Daily Online

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## oct605032048

Nature 457, 357 (22 January 2009) | doi:10.1038/457357a; Published online 21 January 2009

China's wind-power potential

Top of pageAbstract
The nation can lead the world in wind energy &#8212; but its policies need to be more coherent.

A quick glance at China's wind-energy statistics suggests that all the right things are happening. The country has doubled its capacity every year for the past three years; in 2007, it had surpassed a 5-gigawatt target three years ahead of schedule and, in 2008, it hit a revised 10-gigawatt target two years early. Domestic manufacturers are positioned to produce more wind turbines than any other country over the next three years.

But the reality is much more complicated. Many wind projects do not even get off the ground because power companies cannot make enough money from them. Those that do go forward often produce turbines that simply sit, waiting for four months or more &#8212; a big delay in financial terms &#8212; to be hooked up to the electricity grid. And even when they are connected, they break down more often and are much less efficient at producing energy than those in many other countries (see page 372).

In May 2007, the Global Wind Energy Council, the Chinese Renewable Energy Industries Association, and the China Wind Energy Association released a joint memorandum proposing improvements in the industry. More than a year and a half later, the concerns expressed in the memorandum have been borne out and the recommendations remain just as pertinent.


For example, the bidding system used by the government to appoint developers favours companies that agree to supply electricity at cheaper prices &#8212; even if that price will render them unprofitable. As a result, many projects haven't even got started. International development companies with more experience and foreign turbine-makers with more efficient machines don't even bother to bid. The memorandum recommends setting 'feed-in tariffs', which offer a guaranteed rate for power supplied and offer developers more consistency and planning. China has moved in this direction, but the process of allocating the projects is still opaque and, from the perspective of developers and turbine-makers, frustrating.

The country also needs to significantly improve its grid, and to coordinate it with renewable-energy developments. Grid companies are understandably not keen to embrace energy produced by wind &#8212; an erratic and relatively expensive source &#8212; so it will take incentives to make the grid companies want to play ball.

Another way that China has discouraged foreign developers from entering the fray is by preventing companies with less than 51&#37; Chinese ownership from taking advantage of the Clean Development Mechanism, which allows developed countries to offset their carbon-reduction commitments under the Kyoto Protocol by investing in sustainable-energy projects in developing countries. If one has to be protectionist, surely it is better to do so in a way that bolsters domestic companies rather than simply penalizing foreign ones? Although some of China's policies have used this approach &#8212; it requires, for instance, that 70% of turbine parts be produced locally, encouraging foreign companies to build manufacturing facilities in China &#8212; it would do well to extend this across the board.

China could still learn a lot about turbine manufacturing and wind-farm maintenance and management from countries that have much more experience in wind energy. One place to start would be to end its obsession with the number and capacity of its turbines and focus instead on producing power from them.

The speed with which the nation has scaled up to 10 gigawatts of wind energy is impressive. But if China could harness the 3,000 or so gigawatts of wind estimated to be available in the country, it would be able to cover almost all of its current electricity demand. That figure won't be achieved any time soon. But China should make good on plans to hit a more reasonable target &#8212; upping its 2020 projection from 30 gigawatts to 100 gigawatts. Operating at international standards of efficiency could produce 5% of the nation's energy needs and, depending on US policy over the next few years, make China the biggest producer of wind energy in the world. But only if China takes a more aggressive and rational approach will it make the most of its wind.

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## oct605032048

First Changchun-Taipei direct flight takes off
By Hou Lei (chinadaily.com.cn)
Updated: 2010-02-06 17:52

Direct Spring Festival charter flight service between northeast China's Jilin province and Taiwan has begun Saturday, Xinhua News Agency reported.

The charter flight CZ6051 of China Southern Airlines took off Saturday morning from Longjia International Airport in Changchun, capital of Jilin and arrived at Taipei's Songshan Airport three and a half hours later.

This is the first ever direct flight between Jilin and Taiwan.
China Southern planned to carry out four round-trip charter flights on February 6, 13, 20 and 27, each carrying up to 182 passengers. Tickets for flights on February 13 and 20 have all been sold out, news agency China News Service said.

Direct flights between Changchun and Taipei could save travelers three hours.

Zhang Weidong, deputy general manager of China Southern's Jilin branch, told Xinhua the carrier will manage to open regular direct flights between Changchun and cities in Taiwan after the Spring Festival.

Last December, civil aviation authorities from the mainland and Taiwan agreed to open regular direct cross-Strait flights in four more mainland cities: Taiyuan, Changchun, Nanning and Yantai, bringing the total number of mainland terminals to 31.

The mainland and Taiwan have 270 flights between them weekly in January of 2010.


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## oct605032048

China to levy anti-dumping duties on US chicken
By Ding Qingfen (China Daily)
Updated: 2010-02-06 08:55
China said on Friday it would impose preliminary anti-dumping duties of up to 105 percent on broiler chicken imports from the United States.

On its website, the Ministry of Commerce said the US side had dumped broiler chickens in China, the largest importer of US chicken products, which had hurt local producers.

US exporters Tyson Foods and Pilgrim's Pride Corp will be levied duties of 43.1 and 80.5 percent respectively. Firms that did not respond to the Chinese investigation would be levied duty of 105.4 percent. The ruling will come into effect on Feb 13.

The move comes as Beijing and Washington have been embroiled in a series of rifts over US arms sales to China's Taiwan, President Barack Obama's plan to meet the Dalai Lama, and the US leader's vow to get tougher with China on trade and currency issues.

Li Qiang, managing director of Shanghai JC Intelligence, was quoted by Bloomberg as saying that the ruling is "probably a result of political tension, although a trade war between the two economies is unlikely".

Wang Rongjun, professor at the Institute of American Studies of the Chinese Academy of Social Sciences, disagreed. "The ruling should not be politicized. It was made based on surveys and evaluations."

"We appreciate the government's efforts to try to create a fair competitive environment for Chinese companies," said Ma Chuang, vice-secretary general of the China Animal Agriculture Association.

After Obama supported the safeguard ruling against Chinese tire imports last September, the Chinese government announced it would, at the request of the association, conduct anti-dumping and anti-subsidy investigations into US broiler chickens.

The US is the largest broiler chicken manufacturer, followed by Brazil and China. China is the largest importer of chicken products from the US, imports of which reached 584,300 tons in 2008, accounting for 20 percent of US exports and 75 percent of Chinese imports during the same period.

"US companies have been selling the chicken at a comparatively lower price, which puts local players at a disadvantage," said Ma.

As a result of the ruling, it is estimated that China's monthly chicken imports will fall by 63,000 tons, worth around $79 million. And the duties mean that US imports would cost about 0.05 yuan more per pound than Chinese counterparts.


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## oct605032048

Minivans drive up auto sales growth
By Li Fangfang (China Daily)
Updated: 2010-02-06 10:06
Stimulus helps vehicle purchases leap 84 percent year-on-year

China's automobile market continued its robust growth in January, with sales surging 84 percent from a year earlier, heavily boosted by minivans, China Passenger Car Association on Friday.

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## grey boy 2

*China's foreign trade up 44.4%t in Jan. - People's Daily Online* Feb 10 2010

*China's foreign trade posted a 44.4 percent growth in January 2010 year on year, the General Administration of Customs announced Wednesday.*

*Exports in January stood at 109.47 billion U.S. dollars, up 21 percent from a year earlier, while imports rose 85.5 percent to 95.31 billion U.S. dollars.*

Source:Xinhua

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## Merilion

grey boy 2 said:


> *China's foreign trade up 44.4%t in Jan. - People's Daily Online* Feb 10 2010
> 
> *China's foreign trade posted a 44.4 percent growth in January 2010 year on year, the General Administration of Customs announced Wednesday.*
> 
> *Exports in January stood at 109.47 billion U.S. dollars, up 21 percent from a year earlier, while imports rose 85.5 percent to 95.31 billion U.S. dollars.*
> 
> Source:Xinhua



China surpassed Germany as top global exporter 

China exports surge in January
Posted: 10 February 2010 1227 hrs 

BEIJING: China's exports surged 21 per cent on-year in January, the government said Wednesday, after figures showed the Asian giant had overtaken Germany as the world's leading exporter in 2009. 

Exports totalled US$109.475 billion for the month, solidifying the turnaround recorded in December, according to figures released by the General Administration of Customs. 

The figure, however, showed a 16.3 per cent drop month-on-month. 

China's trade surplus reached US$14.17 billion in January, the figures showed. 

On Tuesday, Germany surrendered to China the title of top global exporter it had claimed in 2003, as the country's trade suffered its sharpest slump since 1950, according to government data. 

- AFP/sc 

channelnewsasia.com - China exports surge in January

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## no_name

http://www.businessweek.com/ap/financialnews/D9DLG54G1.htm
*China migrant workers may not return from holiday*

"The buoyant job market is a dramatic reversal from a year ago, when the global financial crisis was battering China's exporters. Millions of migrants were told to stay home because there wouldn't be much work in Guangzhou and other usually booming southern cities. Then, as business started picking up during the middle of last year, factories were caught short-handed.

China has experienced labor shortages frequently during the past decade, but many businesses now say they expect it to be worse this year than ever before. Migrants are finding jobs closer to home as the poor interior provinces become more prosperous. The supply of young laborers is decreasing as an effect of China's one-child policy , and fewer are willing to work for sweatshop wages as their parents did.

Farm-friendly policies are encouraging many to stay in rural areas on the land. And China's massive stimulus package has created jobs across the country, sucking labor from coastal factories.

"We've raised the monthly salary of our workers twice during the last year, from 1,200 yuan ($176) to 1,700 yuan ($249), but it's still not that easy to keep workers," said Lu Lei, general manger of Shanghai Reisheng Industrial Product Co., Ltd. in Shanghai.
"

It's about time they shift production/factory labour work into interior china. Those highways, railways and infrastructure stimulus packages are there for a reason. The costal provinces will move up next levels of the technology and service ladder.

regards,


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## no_name

"In regards to transport, until today there are no cheaper transport than water transport, Cities along rivers maybe a good place to relocate these industries, provided these products are non perishables of course"

"Which is a reminder that the rationale for much of the 3 Gorges Dam was so that ships of Ocean Going size can navigate as far inland as Chongqing and maybe Chengdu. Given the boom in Chongqing, it would seem that it is establishing itself as a hub for both exports and domestic supply."

Yangtze River - Wikipedia, the free encyclopedia

Product parts can be made less expensive in the interior region then shipped to costal provinces for final assembly / high tech add-ons.

regards,


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## xuxu1457

Buying Spree Nets China Stakes in Top U.S. Firms - DealBook Blog - NYTimes.com
Buying Spree Nets China Stakes in Top U.S. Firms
February 8, 2010, 8:31 am 
Flush with cash despite the global economic downturn, China&#8217;s sovereign wealth fund quietly snapped up more than $9 billion worth of shares last year in some of the biggest American corporations, including Morgan Stanley, Bank of America and Citigroup.

Although most of the stakes were small, China Investment Corp., the government&#8217;s $300 billion investment fund, now owns stock in some of the best-known American brands, including Apple, Coca-Cola, Johnson & Johnson, Motorola and Visa, David Barboza and Keith Bradsher report in The New York Times.

The detailed list, which contained holdings totaling $9.6 billion as of Dec. 31, was disclosed Friday in a filing with the Unites States Securities and Exchange Commission; it lists stakes only in companies traded in the United States.

The filing offers a glimpse of how China is trying to diversify its more than $2 trillion in foreign currency holdings with stock, rather than investing almost entirely in United States Treasury bonds and other debt securities issued by governments and by government-sponsored enterprises like Fannie Mae.

Prime Minister Wen Jiabao of China and other officials have repeatedly expressed worry about how the country&#8217;s holdings of U.S. Treasury securities could be hurt by inflation or by mounting United States debt. By buying the securities of international companies, China is trying to spread its fast-growing wealth more widely. It is also seeking to acquire strategic stakes in companies that could feed its hungry economy with a wide range of commodities.

C.I.C., already one of the world&#8217;s largest sovereign funds, was formed in 2007 with about $200 billion. It now has assets of nearly $300 billion and, according to state-run news media, is expecting another large injection of funds.

A spokeswoman for C.I.C., which is based in Beijing, did not return e-mail messages or phone calls seeking comment. But analysts said the filing showed that the fund had invested only a small portion of its $300 billion in American stocks, and the fund seemed to be following a cautious strategy to diversify globally after initially having put its biggest investments into shoring up the capital of Chinese banks.

&#8220;This is still a relatively small amount compared to the total size of the fund,&#8221; said Chang Chun, a professor of finance at the China Europe International Business School in Shanghai.

The sovereign wealth fund got off to a rocky start in 2007 and early 2008 by acquiring a $3 billion nonvoting stake in the American private equity firm Blackstone and paying another $5 billion for a 9.9 percent stake in Morgan Stanley.

Shares of both companies plummeted in 2008 during the financial crisis, leading to a storm of criticism directed at C.I.C. But analysts say the fund performed well in 2009, particularly because it was buying aggressively as the market recovered.

Exactly when C.I.C. bought the shares of various companies was not disclosed in the filing. And C.I.C.&#8217;s acquisition of nonvoting units of Blackstone and its early stake of preferred shares in Morgan Stanley are not listed in the filing. The Blackstone and Morgan Stanley stakes are not listed, apparently because they are not traded equities.

The filing indicates that C.I.C. owns about $19 million worth of Bank of America stock, close to $30 million worth of Citigroup shares and about $333 million worth of shares in Visa, as well as holdings in various index funds.

The fund&#8217;s largest listed holdings were $1.7 billion worth of shares in Morgan Stanley and nearly $650 million worth of shares in BlackRock, the New York money management fund.

The Morgan Stanley stake was acquired last June, when the investment bank issued about $2.2 billion worth of common shares to help repay the U.S. government under the Troubled Asset Relief Program; C.I.C. acquired about $1.2 billion worth of shares at that time.

Some United States politicians in both parties have been nervous about China&#8217;s growing financial reach, and particularly wary that China might seek political influence in the West commensurate with its corporate stakes. Wariness in Washington flared four years ago when Congress discouraged Cnooc, a state-owned Chinese oil company, from buying Unocal.

Most sovereign wealth funds, with the exception of Norway&#8217;s, disclose few details about their holdings. But C.I.C. made its list available for the first time on the S.E.C.&#8217;s form 13F, which is filed quarterly by institutional investors and mutual funds in the United States.

Ben Simpfendorfer, an economist at Royal Bank of Scotland, said the Chinese sovereign wealth fund&#8217;s decision to disclose its holdings could limit concerns about secrecy in government holdings.

&#8220;This should help reassure politicians that Chinese sovereign wealth funds can take minority positions responsibly,&#8221; he said.

C.I.C.&#8217;s holdings outside the United States are substantial and growing. In Canada, it owns a $3.5 billion stake in Teck Resources, a mining and resources company listed in the United States, and a $1 million stake in Research in Motion, the maker of BlackBerry mobile phones.

The sovereign wealth fund has also been buying small stakes in Australia&#8217;s biggest banks and paid $646 million last autumn for a stake in Noble Group, a diversified commodities company based in Hong Kong with operations around the world in industries like iron ore mining and sugar mills.

Executives whose companies have accepted investments from C.I.C. tend to defend it as apolitical.

Richard S. Elman, the founder and chairman of Noble, said last month that C.I.C. executives had been businesslike in their approach to the investment.

&#8220;They are hugely commercial, and they want results,&#8221; he said. &#8220;They do not interfere in the day-to-day operations.&#8221;


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## xuxu1457

In Nanjing


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## huzihaidao12

China's missing trillions

Economists have known for years that China's official economic data was full of inconsistencies, but new data shows that the gap between what is real and what is reported could be very wide indeed. And the good news is that the structural imbalance thought to exist in China's economy between exports and domestic consumption, might not be as severe as we thought.

Last week JPMorgan&#8217;s chief Asian and emerging market strategist Jonathan Garner visited Hong Kong to launch the group&#8217;s Asian/global emerging markets equity strategy, entitled 2010 Outlook: Headwinds Building But Further Upside Likely. In the report, Morgan Stanley suggests that China&#8217;s 2008 GDP figures could out by $US1.25 trillion &#8211; but not in the direction most economists would suppose.

China's official GDP estimate was around $US4.4 trillion for 2008 GDP, but Morgan Stanley&#8217;s estimate is more like $US5.7 trillion &#8211; an astonishing 30 per cent higher. Garner also suggests that total per capita spending of $US1,221, is actually, more like $2,183 (79 per cent higher).

Garner&#8217;s premise for this theory stems primarily from the idea that GDP is extremely difficult to calculate, especially in an economy as big as China&#8217;s.

&#8220;It [GDP] is subject to a lot of statistical inference and estimation and particularly in emerging markets, where private sector services activities of all forms, be it offering a haircut service or a car or offering, let&#8217;s say, English language tuition, all of these things that might be going in China at the moment &#8211; you have to have the statistical agency to capture it,&#8221; he said at the conference. He is essentially suggesting leakage of some spending on service-related industries.

He also points to the auto and white-goods booms of 2009. &#8220;If the stated incomes in China are correct, the official incomes, you shouldn&#8217;t have had China becoming the world&#8217;s largest auto market last year. That degree of auto sales shouldn&#8217;t have occurred, so the only conclusion must be that the incomes are understated,&#8221; he said.

The good news is that if Garner is right and his figures are closer to the real picture of what&#8217;s going on in China then the structural imbalance in the economy, between exports and domestic demand, is not as severe as market-watchers may have thought.

But the reasons for the inaccuracies might not just be as simple as GDP being hard to calculate. In a recent interview with Business Spectator, David O&#8217;Rear, chief economist of the Hong Kong General Chamber of Commerce, said that China's GDP figures have a twenty per cent margin of error. He suggests the problem is caused not only by the data being difficult to manage, but also because of political manipulation in certain areas.

China, politically, is very target-oriented. There are targets for just about everything, from production to efficiency, wind power to waste water. Not meeting those targets can be very embarrassing indeed when you&#8217;re in a developed economy like Australia or the US with scathingly critical media and looming elections.

But it is inconceivable that Chinese Premier Wen Jiabao would endure the sort of public criticism that would occur if a western leader failed to meet his or her economic targets. But that&#8217;s a bit of a non-issue, because as it happens, the targets always seem to get met.

High-profile China commentator Gordon Chang has also suggested political pressure is in part to blame for the China's skewed statistics, saying that China's government believes the maintenance of the appearance of a vibrant economy is necessary to act as a self-fulfilling prophecy.

Calling on China to increase domestic consumption based on figures that may be incorrect, as the US has done, is not the most constructive way to approach this issue. While some of the political hurdles might be more problematic, developed economies would do better to bring pressure to bear on China &#8211; through research, trade, government and diplomatic channels &#8211; to improve the statistical infrastructure in place to gather this data, and indeed offering any support or expertise that may benefit its development and improve our true picture of what's really going on in China.

http://www.businessspectator.com.au...markets-pd20100215-2P8WC?OpenDocument&src=sph


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## xuxu1457

The planned defense budget of China is 532.115 billion yuan (about 78 billion U.S. dollars), a rise of about 37 billion yuan from last year's defense expenditure&#65292;
Defense spending would account for 6.4 percent of the country's total fiscal expenditure(8446billion RMB/1242billion $) in 2010, the same with last year&#65292;and 1.4&#37; of the country's GDP


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## Lankan Ranger

*China To Purchase Half of IMF's Gold*

China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said. 

World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending. 

The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. 

*India, Mauritius & Sri Lanka purchased about 212 tons of the amount at the end of 2009. *

Chinas interest in international trade is connected with the development of the nations economy, as well as with the growing consumer demand in the country. 

Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market, the agency reports. 

Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said. 

The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries.

China To Purchase Half of IMF's Gold - Pravda.Ru


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## chinapakistan

Sri Lankan said:


> *China To Purchase Half of IMF's Gold*
> 
> China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.
> 
> World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.
> 
> The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009.
> 
> *India, Mauritius & Sri Lanka purchased about 212 tons of the amount at the end of 2009. *
> 
> China&#8217;s interest in international trade is connected with the development of the nation&#8217;s economy, as well as with the growing consumer demand in the country.
> 
> &#8220;Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market,&#8221; the agency reports.
> 
> Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.
> 
> The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries.
> 
> China To Purchase Half of IMF's Gold - Pravda.Ru



Why? Bcoz US dollar is unstable or will fallen?


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## Justin Joseph

Sri Lankan said:


> *China To Purchase Half of IMF's Gold*
> 
> China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.
> 
> World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.
> 
> The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009.
> 
> *India, Mauritius & Sri Lanka purchased about 212 tons of the amount at the end of 2009. *
> 
> Chinas interest in international trade is connected with the development of the nations economy, as well as with the growing consumer demand in the country.
> 
> Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market, the agency reports.
> 
> Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.
> 
> The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries.
> 
> China To Purchase Half of IMF's Gold - Pravda.Ru





*India have purchased 200 metric tons of gold by IMF in 2009 alone so why club other countries with it.*



*The Gold which the China wants to purchase is left by India. As, Gold is a investment and price was not right.*



*India after purchasing 200 metric tons of gold offered to buy remaining 201.3 tonnes on acceptable terms but as we have not found it attractive India left the Gold and now China is purchasing it.*


*Proof of my statement:*

India plans to buy more gold from IMF | mydigitalfc.com


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## chinapakistan

Justin Joseph said:


> *India have purchased 200 metric tons of gold by IMF in 2009 alone so why club other countries with it.*
> 
> 
> 
> *The Gold which the China wants to purchase is left by India. As, Gold is a investment and price was not right.*
> 
> 
> 
> *India after purchasing 200 metric tons of gold offered to buy remaining 201.3 tonnes on acceptable terms but as we have not found it attractive India left the Gold and now China is purchasing it.*
> 
> 
> *Proof of my statement:*
> 
> India plans to buy more gold from IMF | mydigitalfc.com



What's wrong with you? Why indian like relating everything to india?
What is the point of your post? *Just brag our indian is the best?*

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## Iggy

chinapakistan said:


> Why? Bcoz US dollar is unstable or will fallen?



Is may be because gold is a secure investment..


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## Sanchez

Justin Joseph said:


> *India have purchased 200 metric tons of gold by IMF in 2009 alone so why club other countries with it.*
> 
> 
> 
> *The Gold which the China wants to purchase is left by India. As, Gold is a investment and price was not right.*
> 
> 
> 
> *India after purchasing 200 metric tons of gold offered to buy remaining 201.3 tonnes on acceptable terms but as we have not found it attractive India left the Gold and now China is purchasing it.*
> 
> 
> *Proof of my statement:*
> 
> India plans to buy more gold from IMF | mydigitalfc.com



Are you OK? Don't get high on this. China produces 800 tons gold per year and is the largest gold producer in the world since 2008. Not like India buying 200 tons of gold is nothing big for China, not more than to shove off some dollar bills. Are you trying to behave like a rich dude to China? 

You have to buy gold because you don't produce much!

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## Justin Joseph

chinapakistan said:


> What's wrong with you? Why indian like relating everything to india?
> What is the point of your post? *Just brag our indian is the best?*




sir

there is no need to jump to reply after seeing a post before reading it.

i have not brought India into this, if u look with ur glasses on u will see the highlighted portion of the news "where there is mention of India, Mauritius and sri lanka buying 212 tons of gold" so i clarified India has brought 200 tons of gold and why there is mention of India with Mauritius and sri lanka which brought only tiny amount of gold.

So India was there in the News Itself.


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## Justin Joseph

Sanchez said:


> Are you OK? Don't get high on this. China produces 800 tons gold per year and is the largest gold producer in the world since 2008. Not like India buying 200 tons of gold is nothing big for China, not more than to shove off some dollar bills. Are you trying to behave like a rich dude to China?
> 
> You have to buy gold because you don't produce much!





Me OK?????? 

I'm good, but what about u????????

The news to which i have replied is *"China To Purchase Half of IMF's Gold*" posted* by member Sri Lankan*

I replied to that news, so do u have any problem with that????

*If China don't care about gold or not buying Gold then fight with the member "Sri Lankan" who have posted this news why are u after me????

If china is not purchasing Gold from IMF then u should clerify by posting some proof of explain it to Sri Lankan why are u targeting me???

I have not posted this crap news like China buying Gold.*


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## Sanchez

Justin Joseph said:


> Me OK??????
> 
> I'm good, but what about u????????
> 
> The news to which i have replied is *"China To Purchase Half of IMF's Gold*" posted* by member Sri Lankan*
> 
> I replied to that news, so do u have any problem with that????
> 
> *If China don't care about gold or not buying Gold then fight with the member "Sri Lankan" who have posted this news why are u after me????
> 
> If china is not purchasing Gold from IMF then u should clerify by posting some proof of explain it to Sri Lankan why are u targeting me???
> 
> I have not posted this crap news like China buying Gold.*



The comments you wrote smelled bad and it was even worse that your gold pride was unfounded. I am wondering why you are still around after all the strange trolling behaviour.

My apology goes for citing a wrong number: last year China produced only 314 tons of gold not 800 tons. I also found out that China is the world No 1 in the production, purchase and consumption of gold for the time being.

It may be disappointing for you gold loving people, but it shouldn't be difficult to remember the simple facts, right?

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## grey boy 2

*CAAC: China to buy 218 airliners this year - People's Daily Online* March 08, 2010

*China plans to buy 218 airliners this year to satisfy the increasing demand for passenger and cargo transport. The 218 airliners will include jumbo jets and regional jets, said Li Jiaxiang, the director-general of the Civil Aviation Administration of China (CAAC) March 7.*

The 218 jets, which will be newly deployed to Chinese airlines in 2010, can almost form a large international airline. Air China, one of China's three largest airlines owned 256 jets by the end of October 2009.

*It is estimated that the passenger number of Chinese airlines will reach 700 million by 2020, and about 1.5 billion by 2030. China's civil aviation market will expand 3 fold by 2020 and 6.5 fold by 2030, compared with 2009.*

Last year, the passenger number and freight volume of Chinese airlines reached 230 million and 4.46 million tons, of which, the passenger number increased by 43.6 percent in August.

*CAAC estimates that the passenger number and freight volume of Chinese airlines will increase by 12 percent this year, of which, the freight volume rose by 95 percent in January and February. Li said that the freight volume has recovered to the pre-crisis level.*

Apart from buying airliners, China also built and renovated airports over the past 2 years. As part of the "4-trillion yuan" stimulus plan, China either built or renovated 22 airports in 2009, and the number will further increase this year.

*Li added that in 2010, China will invest 90 billion yuan in fixed assets and implement 25 key construction projects. Renovation of the Shanghai Hongqiao Airport, Shenzhen Baoan Airport and Hangzhou Xiaoshan Airport, as well as the construction of the Kumming New Airport and Hefei New Airport will become part of the 25 key construction projects.*

By People's Daily Online


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## Justin Joseph

Sanchez said:


> The comments you wrote smelled bad and it was even worse that your gold pride was unfounded. I am wondering why you are still around after all the strange trolling behaviour.
> 
> My apology goes for citing a wrong number: last year China produced only 314 tons of gold not 800 tons. I also found out that China is the world No 1 in the production, purchase and consumption of gold for the time being.
> 
> It may be disappointing for you gold loving people, but it shouldn't be difficult to remember the simple facts, right?




Why are u derailing the thread and accusing me of trolling what have i done?????????

Get real, the China purchasing gold news is not posted by me but by another member sri lankan. Got it.........

If the news is wrong then fight with him why me....................

why are u having complexes.


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## Omar1984

CHEC registers record revenues


Despite an industry downturn worldwide, port building contractor China Harbour Engineering Co Ltd (CHEC) had record revenues of $1.89 billion last year and signed new contracts worth $4.49 billion. 

As growth slowed due to the global economic crisis, CHEC responded by reorganizing its resources and moving into new sectors. 

Shrinking infrastructure markets in the Middle East and Africa, which before contributed more than 60 percent of its revenues, resulted in CHEC developing business in Hong Kong and Macao special administrative regions (SARs), Southeast Asia and South Asia, which together comprised 59 percent of its new contracts. 

CHEC also expanded into Latin America, where its contracted volume grew from nearly zero in 2008 to $540 million last year, some 12 percent of new business. 

The company has adopted a "greater construction" strategy to embrace projects including airports, railways, power plants, water facilities and offshore structures. 

While marine engineering still totaled 47 percent of its new contracts in 2009, more than 50 percent came in a range of sectors, helping spread risk and providing new growth points. 

CHEC focuses on cooperation with governments, financial institutions and business councils. Half of its new contracts last year were government-to-government programs. Ten were mega-projects that surpassed the $100 million mark. 

*Phase I of the Gwadar deep water port in Pakistan built in part by CHEC, was awarded the Luban Prize - China's top accolade for architecture and construction - last November. Its projects in Saudi Arabia, Hong Kong SAR and Angola received awards for safety from governments and project owners.* 

CHEC had 106 projects under construction by the end of last year. 

Source: China Daily 


CHEC registers record revenues - People's Daily Online


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## Justin Joseph

*China welcomes Indian pharma firms after years of resistance*

Saibal Dasgupta, TNN, Mar 8, 2010, 07.21pm IST

BEIJING: *Chinese health minister Chen Zhu said on Monday that Indian pharmaceutical companies were "more than welcome" to sell their products in China.* The Indian companies have been complaining for a long time that China did not grant enough market access.

*Chen said pharmaceutical companies from developing countries like India are "more than welcome" to participate in China's drug sector. He said Indian firms producing "non-generic and creative medicine" were leading in the developing world.*

*"We believe competent enterprises from India will have a role to play in China's health sector," he said. The country has implemented an online tendering system and a unified distribution network to ensure equal opportunities to all suppliers, Chen said.*

The statement comes less than two months after Indian commerce minister Anand Sharma raised the issue of market access for pharmaceutical companies during his visit to Beijing last January.

What China is looking for cost-effective medicines of high quality, the minister said. They must be safe and proved effective. *He pointed out that the government had set up central drug procurement system, which would make it easy for foreign companies to make their bids.

Chen said the basic health insurance scheme has been expanded and essential drugs covered under it in the case of 30&#37; of grassroots level health institutions. They have centralized provincial level procurement platform to carry out bidding and purchase of essential drugs, he said.*


*Source Link:*

China welcomes Indian pharma firms after years of resistance - China - World - The Times of India



*The statement of Chinese health minister Chen Zhu (Indian firms producing "non-generic and creative medicine" were leading in the developing world.)

Is acceptance of reality i hope Chinese member also realize the truth about high quality of products produce by Indian Pharmaceutical companies as the government of china has realise.*


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## Justin Joseph

"China welcomes Indian pharmaceutical companies to help address the growing demands of its domestic market in the wake of recent health care reforms, said Health Minister Chen Zhu on Monday."

*Till date Westerners are charging very high rates for their drugs.

Indian companies should help out China in low cost high quality medicines.

It will benefit India and China friendship and poor people in both the countries and also end the monopoly of West over East.*


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## Sanchez

It's amazing that Indians think their generics copying pharms are different from Chinese ones. It's a way for Chinese pharms to open Indian market, too.

What are the non-generics developed by Indians?


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## Justin Joseph

&#21355;&#29983;&#37096;&#37096;&#38271;&#38472;&#31482;

&#20013;&#22269;&#32593;3&#26376;8&#26085;&#35759; &#20170;&#26085;15:30&#65292;&#21313;&#19968;&#23626;&#20840;&#22269;&#20154;&#22823;&#19977;&#27425;&#20250;&#35758;&#23558;&#22312;&#20154;&#27665;&#22823;&#20250;&#22530;&#19977;&#27004;&#37329;&#33394;&#22823;&#21381;&#20030;&#34892;&#35760;&#32773;&#20250;&#65292;&#30001;&#20303;&#25151;&#21644;&#22478;&#20065;&#24314;&#35774;&#37096;&#37096;&#38271;&#23004;&#20255;&#26032;&#12289;&#21355;&#29983;&#37096;&#37096;&#38271;&#38472;&#31482;&#12289;&#20154;&#21147;&#36164;&#28304;&#21644;&#31038;&#20250;&#20445;&#38556;&#37096;&#21103;&#37096;&#38271;&#32993;&#26195;&#20041;&#23601;&#20445;&#38556;&#21644;&#25913;&#21892;&#27665;&#29983;&#38382;&#39064;&#31572;&#35760;&#32773;&#38382;&#12290;

&#35848;&#21040;&#20851;&#20110;&#20013;&#22269;&#26159;&#21542;&#21521;&#22806;&#22269;&#20844;&#21496;&#24320;&#25918;&#21307;&#30103;&#24066;&#22330;&#26102;&#65292;&#21355;&#29983;&#37096;&#37096;&#38271;&#38472;&#31482;&#34920;&#31034;&#65292;&#20013;&#22269;&#29983;&#29289;&#21046;&#33647;&#20135;&#19994;&#24320;&#25918;&#24230;&#26159;&#38750;&#24120;&#20043;&#39640;&#30340;&#65292;&#38500;&#20102;&#23545;&#21457;&#36798;&#22269;&#23478;&#30340;&#36328;&#22269;&#20844;&#21496;&#30340;&#24320;&#25918;&#65292;&#20063;&#21253;&#25324;&#23545;&#21457;&#23637;&#20013;&#22269;&#23478;&#30340;&#20225;&#19994;&#30340;&#24320;&#25918;&#12290;

&#38472;&#31482;&#34920;&#31034;&#65292;&#24403;&#28982;&#65292;&#25105;&#20204;&#38750;&#24120;&#27426;&#36814;&#21360;&#24230;&#21516;&#34892;&#33021;&#22815;&#21040;&#20013;&#22269;&#26469;&#21019;&#19994;&#12290;&#22240;&#20026;&#25105;&#30693;&#36947;&#65292;&#21360;&#24230;&#30340;&#33647;&#29289;&#20135;&#19994;&#65292;&#21253;&#25324;&#38750;&#19987;&#21033;&#33647;&#29289;&#21644;&#21019;&#26032;&#33647;&#29289;&#26041;&#38754;&#65292;&#24212;&#35813;&#35828;&#22312;&#21457;&#23637;&#20013;&#22269;&#23478;&#37117;&#26159;&#22788;&#20110;&#21069;&#21015;&#30340;&#12290;

&#38472;&#31482;&#35828;&#65292;&#20013;&#22269;&#30340;&#21307;&#33647;&#21355;&#29983;&#20135;&#19994;&#30340;&#24066;&#22330;&#26159;&#38750;&#24120;&#24040;&#22823;&#30340;&#65292;13&#20159;&#30340;&#20154;&#32676;&#65292;&#38656;&#27714;&#20063;&#26159;&#22810;&#26679;&#21270;&#30340;&#12290;&#20013;&#22269;&#25919;&#24220;&#21435;&#24180;&#21551;&#21160;&#30340;&#28145;&#21270;&#21307;&#33647;&#21355;&#29983;&#20307;&#21046;&#25913;&#38761;&#24403;&#20013;&#65292;&#25105;&#20204;&#30340;&#37325;&#35201;&#24037;&#20316;&#20043;&#19968;&#23601;&#26159;&#24314;&#31435;&#22269;&#23478;&#22522;&#26412;&#33647;&#29289;&#21046;&#24230;&#12290;&#24403;&#28982;&#65292;&#22522;&#26412;&#33647;&#29289;&#22312;&#20013;&#22269;&#36825;&#26679;&#19968;&#20010;&#22269;&#24773;&#19979;&#65292;&#32477;&#22823;&#22810;&#25968;&#37117;&#26159;&#39044;&#38450;&#21644;&#27835;&#30103;&#30142;&#30149;&#24517;&#39035;&#30340;&#65292;&#30103;&#25928;&#38750;&#24120;&#30830;&#20999;&#21644;&#23433;&#20840;&#30340;&#65292;&#21516;&#26102;&#65292;&#21448;&#26159;&#24615;&#20215;&#27604;&#27604;&#36739;&#22909;&#30340;&#33647;&#12290;&#24212;&#35813;&#35828;&#65292;&#25105;&#20204;&#29616;&#22312;&#37319;&#21462;&#30340;&#32593;&#19978;&#32479;&#19968;&#25307;&#26631;&#37319;&#36141;&#65292;&#26159;&#27426;&#36814;&#21508;&#31181;&#20225;&#19994;&#26469;&#21442;&#19982;&#31454;&#20105;&#30340;&#12290;&#25105;&#30456;&#20449;&#65292;&#26377;&#31454;&#20105;&#21147;&#30340;&#21360;&#24230;&#20225;&#19994;&#24212;&#35813;&#26377;&#25152;&#20316;&#20026;&#12290; 

??????????????? ??????

*Translation*

Minister of Health Chen Zhu

China Net March 8 hearing today, 15:30, the Third Session of the Eleventh National People's Congress in the Great Hall of the Golden Hall on the third floor press conference by the Minister of Housing and Urban-Rural Construction Jiang Weixin, Minister of Health Chen Zhu, human resources and social Hu Xiaoyi, vice minister of security protection and improving people's livelihood on the Answer Questions.

Turning to whether or not to foreign companies on China's opening up the medical market, the Minister of Health Chen Zhu said the Chinese bio-pharmaceutical industry is a very high degree of openness, in addition to the opening of the multinational corporations in developed countries, but also enterprises in developing countries open.

*Chen Zhu said that, of course, we very much welcome the Indian counterparts to come to China venture. Because I know that India's pharmaceutical industry, including generic drugs and innovative drugs, it should be said that in developing countries are at the forefront.*

Chen Zhu said that China's medical and health industry's market is huge, 1.3 billion people, demand is also diversified. The Chinese government launched last year, the deepening of medical and health system reform among one of our important is the establishment of national essential drug system. Of course, the essential medicines in China, such a situation, the overwhelming majority of the necessary prevention and treatment of disease, efficacy and safety of very precise, while also a good cost-effective medicine. *It should be said, we are now taking a unified online bidding and purchasing, would have welcomed a variety of businesses to participate in competition. I am confident that the competitiveness of Indian enterprises should make a difference.*


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## Justin Joseph

Sanchez said:


> It's amazing that Indians think their generics copying pharms are different from Chinese ones. It's a way for Chinese pharms to open Indian market, too.
> 
> What are the non-generics developed by Indians?




*According to even the FDA, USA the only difference between generic and non generic drugs are the packaging, the name and the price tag.... the medicine works the same and is held to the same exacting standards of quality the name brands are, they're just cheaper.
*

A generic drug (generic drugs, short: generics) is a drug which is produced and distributed without patent protection. The generic drug may still have a patent on the formulation but not on the active ingredient.

A generic must contain the same active ingredients as the original formulation. According to the U.S. Food and Drug Administration (FDA), generic drugs are identical or within an acceptable bioequivalent range to the brand name counterpart with respect to pharmacokinetic and pharmacodynamic properties. By extension, therefore, generics are considered (by the FDA) identical in dose, strength, route of administration, safety, efficacy, and intended use.

The FDA's use of the word identical is very much a legal interpretation, and is not literal. In most cases, generic products are available once the patent protections afforded to the original developer have expired. When generic products become available, the market competition often leads to substantially lower prices for both the original brand name product and the generic forms. The time it takes a generic drug to appear on the market varies. In the US, drug patents give twenty years of protection, but they are applied for before clinical trials begin, so the effective life of a drug patent tends to be between seven and twelve years.

Generic drug - Wikipedia, the free encyclopedia


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## xukxuk

China's Mega Dam (i think this video made 5 years ago)
hope you enjoy




































thanks for watching

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## xukxuk

Man Made Marvel: Hangzhou Bay Bridge

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## xukxuk

China's new mega-project: Shanghai Yangshan deep-water port

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## chinapakistan

Justin Joseph said:


> &#38472;&#31482;&#34920;&#31034;&#65292;&#24403;&#28982;&#65292;&#25105;&#20204;&#38750;&#24120;&#27426;&#36814;&#21360;&#24230;&#21516;&#34892;&#33021;&#22815;&#21040;&#20013;&#22269;&#26469;&#21019;&#19994;&#12290;&#22240;&#20026;&#25105;&#30693;&#36947;&#65292;&#21360;&#24230;&#30340;&#33647;&#29289;&#20135;&#19994;&#65292;&#21253;&#25324;&#38750;&#19987;&#21033;&#33647;&#29289;&#21644;&#21019;&#26032;&#33647;&#29289;&#26041;&#38754;&#65292;&#24212;&#35813;&#35828;&#22312;&#21457;&#23637;&#20013;&#22269;&#23478;&#37117;&#26159;&#22788;&#20110;&#21069;&#21015;&#30340;&#12290;



&#21360;&#24230;&#33647;&#65311;&#21807;&#19968;&#33021;&#24819;&#21040;&#30340;&#23601;&#26159;&#21360;&#24230;&#31070;&#27833;&#20102;&#12290;


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## T-Faz

Nice structures, looks very good. What would you say is the most ambitious and unique project currently under construction in China.


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## Frankenstein

awesome structures!!


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## Omar1984

*&#8216;Time has come for China&#8217;s yuan to rise&#8217;​*
BEIJING: All signs are pointing to an appreciation of China&#8217;s currency, perhaps even by mid-year, analysts say, after a cryptic hint from the nation&#8217;s central bank governor and a limited jump in the yuan&#8217;s value.

The United States and the European Union, Beijing&#8217;s key trade partners, have been increasing the pressure on Chinese authorities for months to revalue the currency, which they say is intentionally kept low to boost exports. Chinese Premier Wen Jiabao again said last week that the yuan, which has effectively been pegged to the dollar since mid-2008, would be kept &#8220;basically stable&#8221; in 2010, but experts now say there is a fair bit of room for movement.

&#8220;The question is when will that be? We still think towards the end of Q2 or the beginning of Q3. Obviously the pressure is rising for a move earlier,&#8221; Stephen Green, a senior economist at Global Research in Shanghai, told AFP.

&#8220;This kind of decision is made by a small group of people. The economy has recovered, exports have recovered, but not back to their previous good health. The leadership remains cautious,&#8221; he said. Central bank governor Zhou Xiaochuan sparked a storm of speculation at the weekend when he said that Beijing&#8217;s currency policy was temporary and would be withdrawn &#8220;sooner or later&#8221; along with other anti-crisis measures. Alaistair Chan, an analyst for Moody&#8217;s Economy.com in Sydney, said Zhou had &#8220;opened the door to movement on the yuan-dollar peg&#8221; &#8212; an opinion echoed by many experts. Those who back a stronger yuan say the stars are aligned for a quick move. China returned to double-digit growth in the fourth quarter of 2009, exports have soared since December &#8212; up 45.7 percent year-on-year in February &#8212; and inflation and bubble fears, which would ease with a yuan hike, are mounting.

&#8220;With such high export growth, pressure on China&#8217;s peg to the greenback could be escalated rapidly in months ahead,&#8221; economists said. afp`


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## lhuang

I just watched most of the videos on the last few pages!

Exciting time to be Chinese!


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## chinapakistan

lhuang said:


> I just watched most of the videos on the last few pages!
> 
> Exciting time to be Chinese!



Unfortunately, you are a fake one.


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## xuxu1457

China reports first monthly trade deficit six years 

English.news.cn 2010-04-10 11:10:30 
by Chen Siwu, Wang Youling and Wang Xi

BEIJING, April 10 (Xinhua)-- China's trade balance turned red in March with the country's first monthly trade deficit in six years, the General Administration of Customs (GAC) said Saturday.

China exports were valued at 112.11 billion U.S. dollars in March, up 24.3 percent year on year, while the imports surged 66 percent to 119.35 billion U.S. dollars, resulting in a deficit of 7.24 billion U.S. dollars.

The deficit was China's first since it posted a 2.26 billion deficit in April 2004, according to a report released by the GAC.

China's total foreign trade rose 42.8 percent year on year to 231.46 billion U.S. dollars in March, according to Customs statistics.

In the first quarter, foreign trade rose 44.1 percent to 617.85 billion U.S. dollars, with a surplus of 14.49 billion U.S. dollars though it was down 76.7 percent from the same period of last year.

The country's trade surplus hit 23.7 billion U.S. dollars in February.

Li Jian, a research fellow with the Research Institute under the Ministry of Commerce, said China's trade surplus had been falling since the start of the year.

"The deficit in March was just an extension of this trend," Li said.

He said China did not purposefully pursue a trade surplus and had adopted a policy of encouraging imports and achieving a trade balance over the years.

As the economy improved, any shift in people's expectations towards macro economic policies on liquidity and investment would influence importers' decisions and imported commodity prices, he said.

"Externally, we need to prudently monitor the world economy to avoid risk of a double-dip recession," he said. "Domestically, we need to focus on economic restructuring and transformation of economic growth pattern based on the stable growth of foreign trade."

The GAC attributed the March deficit to shrinking exports of labor-intensive products, surging imports and rising commodity prices.

"The deficit in March is neither a recession, nor can it be sustained," the GAC said in its report, adding the deficit was small and China had maintained a "basic balance" between imports and exports.

The GAC said the deficit accounted for only 3.1 percent of total trade volume in March, much lower than the 10-percent alarm level of a trade imbalance.

"The March deficit stemmed mainly from the fast growth of imports by China amid its efforts to increase imports against the backdrop of the global economic downturn," the report said. "China's efforts (to expand imports) helped with the recovery of world economy and demonstrated its role as a responsible country."

The GAC predicted China's trade surplus might continue to scale down and keep a trade balance for the rest of the year.

Zhao Jinping, an economist and researcher with the Development Research Center of the State Council, anticipated China's exports growth would slow in the second quarter because the base was too low in the first quarter last year when the world was in the middle of the global financial crisis.

Zhao estimated exports growth of 10 to 15 percent for the year, while imports growth would be slightly faster as China's economy had taken the lead in the world recovery.

China would post an annual trade surplus similar to or slightly narrower than last year's, he said.

The country recorded a trade surplus of 196.1 billion U.S. dollars last year, down 34.2 percent from 2008.

"We cannot be too optimistic and we still need in place those policies to stabilize external demand," he said.

GAC figures showed the surplus with the United States in March dropped 3.5 percent year on year to 9.87 billion U.S. dollars and that with the European Union fell 13.1 percent to 6.96 billion U.S. dollars.

However, China's March deficit with Japan more than tripled over the same month of last year to 6.53 billion U.S. dollars while its deficit with the Republic of Korea jumped 76 percent to 6.13 billion U.S. dollars.

The establishment of the ASEAN-China Free Trade Area on Jan.1 greatly boosted China's trade with the bloc, with ASEAN's trade surplus with China rocketing to 2.7 billion from 300 million U.S. dollars last year.

The Chinese mainland's deficit with Taiwan amounted to 7.9 billion U.S. dollars in March, up 78.7 percent year on year.


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## xuxu1457

Seven Reasons to Thank China
Jim Cashe
Posted: April 12, 2010 03:53 PM 
China receives a great deal of valid criticism in the Western press. The Chinese Government restricts free speech. Much of the internet is off limits. Pollution is a big problem. A weak currency depresses job growth in other countries. China has controversial policies regarding Tibet, Taiwan, Iran, border issues, and other topics.

As an American living in China, however, I am frequently struck that criticism of China is typically so simplistic as to be ineffective. If criticism is not embedded in a broader context, or if it doesn't at least reference a Chinese viewpoint, it comes across as naive and easy to dismiss.

As a start, we need to acknowledge -- or at least be aware of -- many things the Chinese have accomplished recently which merit global recognition. Here is a quick list of seven things I would thank China for as an American:

1) Alleviation of Poverty: The World Bank estimates that since 1981, over one half billion Chinese have moved out of abject poverty. There is no other government or program on the planet that can claim this magnitude of success. It is an enormous accomplishment.

2) Stability: China overall is a very stable and predictable country. There are obvious pressures in some regions (such as Xinjiang), but living and traveling in China shows an orderly, organized and relatively prosperous environment. 

3) Population Control: China's "one child" policy since the late 70s is estimated to have resulted in 400 million less births by 2010. Few countries could have instituted such a policy, but all countries benefit from it.

4) Restricted Military: China has a powerful and growing military, including the world's largest army and a significant nuclear arsenal. That said, in 2008 China spent $85 billion on the military (the US spent $607 billion), has no overseas bases (the US has over 700), and has slowed the increase in military spending to below economic growth (7.5&#37; in 2010). 

5) Environmental Efforts: The environmental woes of China are well-rehearsed in the press (including the Chinese press). That said, China is now the largest investor in green technologies (twice the level of the US, despite half the economic size). The Chinese leadership has made a convincing priority of green programs. In Chengdu, where I live, the scooters are mostly electric, the taxis and buses are mostly natural gas, and public transport is heavily used -- including over 40 new high-speed electric rail lines now open or being built across the country.

6) Economic Growth: The Chinese economy has grown by over 9% per year average over 20 years. That represents a great deal of new wealth for the planet.

7) Great Products: Let's face it -- we Americans benefit hugely from cheap, high quality products made in China. I like my Nikes, I enjoy my wide-screen monitor, and I depend heavily on my iPhone.

The Chinese are proud of each of these points, and deservedly so. And while these accomplishments don't eclipse the fact that the US and China have legitimate and serious mutual complaints, it is appropriate to embed those complaints in a broader context. We should start by giving China credit where credit is due.


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## xukxuk

China's economy grew by 11.9 per cent during the first quarter of this year, raising hopes the country could revaluate the yuan.

The growth was higher than economists had expected, with China's government saying it had laid a "good foundation for reaching the targets set for the whole year".

Consumer price inflation was low at 2.2 per cent, according to China.

Li Xiaochao, spokesman for the National Bureau of Statistics of China said: "In the first quarter of 2010, all regions and departments effectively implemented the policies and measures set by the central party committee and the state council and firmly carried out the packages of policies on dealing with the international financial crisis, the momentum of national economic recovery has further expanded, which has laid a good foundation for reaching the targets set for the whole year.

"According to the preliminary estimation, the gross domestic product (GDP) of China in the first quarter of this year was 8,057.7 billion yuan, a year-on-year increase of 11.9 per cent, which was 5.7 percentage points higher than that in the same period last year."

In March Chinese premier Wen Jiabao said the growth of the rich-poor gap in China must be slowed and pointed to increased welfare spending as a means to do so.

China is expected to overtake Japan as the world's second largest economy this year after reporting good economic growth in the final quarter of 2009.

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## P4Pakistan

that's great , keep it up brothers, world need u !


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## P4Pakistan

self delete


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## SAUD-404

Great keep it up china


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## Abhiras

great news....EAST will dominate WEST once again in near future after centuries


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## Mirza Jatt

well done china...suddenly everything is working fine in our region..first - Pakistan's foreign reserve reached $15b and now China with 11.9% growth...


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## aimarraul

*GDP surges by 11.9&#37; amid fears of overheating*

* Source: Global Times
* [04:47 April 16 2010]
* Comments

By Yin Hang

The country's economic growth rate surged to 11.9 percent in the first quarter of the year, the National Bureau of Statistics (NBS) announced Thursday, prompting fears of an overheated economy and qestions regarding the withdrawal of the massive stimulus package.

The gross domestic product (GDP) in the first three months totaled 8.07 trillion yuan ($1.19 trillion), the NBS said, attributing the fastest quarterly rate of expansion since 2007 to last year's low comparison base and the government's stimulus.

"China's economy welcomed a strong start at the beginning of the year, showing that overall economic development is rising in full swing," Li Xiaochao, the NBS spokesman, said Thursday.

The surge in economic growth was up from just over 6 percent in the same quarter a year ago and up 10.7 percent in the final

quarter of 2009. It was supported by a 19.6 percent rise in industrial output over a year earlier, a 25.6 percent jump in investment in factories and other fixed assets, and, most controversially, a 35.1 percent leap in investment in the real estate market, the NBS said.

"The growth rate surpasses 10 percent. It can be seen as an indication of overheating," said Tian Yun, vice president of the China Macro Economics Institute, adding that the growth momentum was not largely generated from just the market.

Zhuang Jian, senior macroeconomics officer with the Asian Development Bank, however, was reluctant to draw a conclusion of overheating.

"Last year's GDP figure, when the economy was reeling from the world financial downturn, established a low baseline for comparison. The ratcheting up of investment and large domestic demand drove up the figure. The figure gives no hint of an economy overheating at all," Zhuang said.

Asian growth

The figures China unveiled cap a good week for the Asian economy. Singapore's economy grew by 13.1 percent, its fastest rate in at least 35 years, in the first three months of 2010. The Bank of Korea raised its economic growth expectations on April 9 to a rise of 5.2 percent in 2010, compared with its central bank's anticipated 4.6 percent expansion in December.

In the wake of the GDP growth spurt, however, Singapore revalued its currency to head off inflation after year-on-year economic growth surged.

The revaluation may prompt policymakers in China, Indonesia and South Korea to start withdrawing monetary stimulus as economic growth in the region outpaces the rest of the world, according to Bloomberg.

In response to the speculation, NBS spokesman Li said it is necessary to retain the consistency and stability of China's macroeconomic policies, despite the stimulus package spurring economic growth.

"China still faces uncertainties amid the recovery of the world economy. The domestic economy is facing many obstacles and problems," Li cautioned, and hinted that the stimulus package will not be withdrawn temporarily with challenges such as heavy drought still facing China.

Wei Fengchun, a macroeconomic analyst with Beijing-based CITIC Securities, explained how economic development mode transformation may be in need of the government stimulus.

"Outward-oriented economic development may come to an end, and China's economic development will have to turn to rely on inward momentumsupporting," Wei told the Shanghai Securities News.

Economists predicted that, unlike the trend of last year, the GDP growth will start the year soaring gradually shrink in the second and third quarters.

Li Xunlei, deputy chairman of the Research Institute of Guotai Junan Securities, insisted that to raise the interest rates is not necessary considering the GDP is likely to shrink in the next three quarters.

"The GDP has hit its highest point now. I believe it will fall in the upcoming three quarters, when the raised interest rate may hurt the stability of the economy," Li told hexun.com.

Zhuang, by contrast, argues that pressure on raising interest rates will be intensified, leading to higher inflation.

Currency questions

By way of contributing more to pulling the world back from recession, some economists suggested a prompt revaluation of China's currency.

"The yuan's stability and China's stimulus package made an enormous contribution to global stability in the aftermath of the crisis," said Glenn Maguire of Societe Generale in Hong Kong. "But now that China's economy is growing by 12 percent, it's time for China to share some of that growth with the rest of the world via appreciating its exchange rate."

The commerce ministry promptly rebuked this suggestion, arguing that the US is pressuring China to reevaluate its currency out of self-interest.

"Do not let the yuan's exchange rate issue become the scapegoat of US domestic economic problems, including its unemployment," said Yao Jian, ministry spokesman.

China will keep the yuan stable, not only to help exporters weather the world economic downturn, but also to check the inflow of hot money, Yao said.

Yao sounded a cautious note on the outlook for China's exports. Net exports shaved 1.2 percentage points off first-quarter headline growth of 11.9 percent, year-on-year.

"External demand has not shown a clear rebound, which is expected to lead to a slow recovery in China's exports," Yao said.

Liang Chen and agencies contributed to this story.



*PBOC pledges to curb soaring housing prices*
(Xinhua)
Updated: 2010-04-16 23:27

BEIJING - The People's Bank of China, the central bank, said late Friday it would strictly implement the State Council's policies to rein in rapidly climbing property prices.


In a statement posted on its website, the central bank said it had urged all its branches and subsidiaries to enhance risk management in granting housing mortgages and to strictly carry out measures announced by the State Council on Thursday after an executive meeting.

The Cabinet announced a series of steps to make it more expensive for people to take out mortgages on investment properties, including raising mortgage rates and down payment requirements.

The Cabinet's move came one day after the statistics authorities said China's property prices in 70 major cities rose 11.7 percent in March year on year, compared with February's 10.7 percent reading.

Earlier Friday, the country's banking regulator urged banks to take market and regional disparities into consideration when deciding home loan interest rates.

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## graphican

China can you not teach Pakistan how you do these wonders?

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## aimarraul

bubble economy


*Global Economy's Next Threat: China's Real Estate Bubble*
By CHARLES HUGH SMITH Posted 9:30 AM 01/05/10 Economy
Comments: 65 Print
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We might be tempted to envy China's spectacularly resilient real estate boom: After sagging in the global financial meltdown of 2008, property values in China's urban centers skyrocketed in 2009. Shanghai's Pudong district, for example, experienced a 57&#37; rise in a matter of months.

By comparison, residential real estate in the U.S. is up 3.4% on average from its bottom in May, but still almost 30% below its peak in April 2006.

However, those admiring China's reflated housing bubble might be careful what they wish for, as the new real estate bubble in China is even more precarious than the one which imploded in 2008.

The popping of China's current housing bubble -- considered inevitable by regional experts such as Andy Xie -- could have widespread consequences. If housing turns down in China, China's growth could slow or even decline. And since the entire world is looking to China to lead global growth, then that could spell major trouble for the "global economy is recovering" story.

China's Stimulus Dwarfs America's

The reflation of China's real estate bubble has a number of causes, and the most obvious one is that nation's stupendous $586 billion stimulus, which was packaged with efforts to promote real estate lending and development to boost growth. According to China's central bank, new home mortgages in the first nine months were quadruple the amount borrowed a year earlier.

In terms of GDP -- China's GDP is $3.3 trillion compared to $13.8 trillion for the U.S .-- China's $586 billion stimulus is three times as large as America's $787 billion stimulus. China's stimulus spending is a heart-pounding 17.8% of their GDP, as opposed to America's comparatively modest 5.7% of GDP.

Even if we use the CIA Factbook's estimate of China's GDP in terms of purchasing power parity (PPP), China's stimulus is still almost triple the U.S. government's stimulus (5.5% U.S. versus 14.4% China).

Real Estate Bubble Worries Central Government

Analysts in China are concerned that this tremendous rise in construction, lending and speculative buying -- housing starts nationwide rose 194% in 2009 -- is blowing a bubble that could burst in 2010, taking down everyone who jumped into the game in 2009: homeowners, banks, developers, stock markets, and local governments.

The central government is also concerned. In late December, China Premier Wen Jiabao made a widely publicized comment that "property prices have risen too quickly." He vowed to impose new limits on speculative borrowing, such as raising the deposit requirements to purchase raw land to 50%.

Central government efforts to stimulate the property market included tax breaks, smaller down-payment requirements, lower loan rates for first-time buyers, and vastly increased bank lending. In an effort to lower the boom on speculative flipping -- buying and selling of properties within a short time span -- China's State Council announced changes to tax breaks for home sales by individuals.

Macro Picture Still Gloomy

Lost in the euphoric frenzy of China's real estate market is the glum macroeconomic backdrop. China's overall economy depends heavily on exports; from January to July 2009, China's exports dropped by 22 percent -- a major hit to the nation's income stream.

Despite the surge in domestic construction and infrastructure projects resulting from the stimulus spending, China's exports are still declining. And too much money has flowed into new and unneeded factories which are now idling at low capacity.

The present housing boom also has some serious macroeconomic headwinds. A typical 1,000-square-foot apartment in Beijing now costs about 80 times the average annual income of the city's residents, wildly out of line with the historic levels of three or four times annual income.

This speculative fever has been fed by a number of factors which will sound eerily familiar to Americans bruised by the U.S. housing bubble's rise and fall: low interest rates, official promotion of bank lending, and tax break galore for new buyers.

Unlike in the U.S., local governments in China are major players in real estate development because they sell land leases to developers for hefty sums. According to Chinese economists, up to half of all local government revenue comes from selling state-owned land to private developers.

Perhaps most dangerous, about 90% of the new construction is aimed at the luxury market, which is unaffordable to the average Chinese household. (This should sound familiar to residents of New York and other major international cities.) As a result, thousands of new homes and condos are sitting empty, purchased as investments not as places to live. The empty new city of Ordos reveals just how far the speculative fever has progressed.

This disconnect between massive overbuilding of luxury homes and what average households can actually afford raises the future risks of public anger and social discord.

China's Housing Market Is Different

To fully understand why China's housing market has ballooned into a new and increasingly risky bubble, we have to understand that it's not just government policies that have created a runaway speculative market; other financial and cultural issues are also at work.

Patrick Chovanec, an associate professor at Tsinghua University's School of Economics and Management in Beijing, China, recently described a number of these key issues. (I can confirm these from first-hand experience in China, and from our friends who have owned condos in China for many years and live there part-time.) The key issues include:

1. There are no property taxes in China, so the costs of carrying speculative (empty) homes is very low in comparison to the U.S.

2. Property values have, with brief interruptions, risen for decades, so the average Chinese household considers real estate a much safer bet against inflation than the stock market.

3. Until recently, households had few investment alternatives to a simple low-yield savings account. The incredible boom and bust in the Chinese stock market in 2006-08 -- akin to the dot-com mania in NASDAQ stocks in 1998-2000 in the U.S. -- left many Chinese investors wary of the stock market. As a result, many view owning investment properties as akin to "money in a savings account," that is, a low-risk, long-term investment.

4. Though the central government is trying to suppress speculation, it is aiming at the wrong target. Flipping property is simply not common in China; the overall number of sales of existing homes is very low by U.S. standards. The speculation arises from the easing of lending by the central government and local government dependency on real estate development for revenues and economic growth. As a result, the planned tax on private re-sale transactions will do little to lower speculation.

Hard Landing Is Likely

From one point of view, China's Central government massive stimulus and easy-credit campaign have spurred a massive malinvestment in unneeded factories, marginal infrastructure projects and speculative luxury-market housing, much of which is sitting empty as "investment properties" held in lieu of other investments by Chinese households.

History does not provide many examples of governments successfully deflating a speculative credit or housing bubble. Speculative excesses tend to run out of steam quickly and end in a bust. Now that China's central government has already gone all-out to boost the economy, the world should wonder what's left in their expansionist tool belt should China's real estate suffer the hard landing in 2010 that many analysts expect.

And if China's real estate sector runs out of steam, so too does the entire China growth story -- and the global leadership many have been counting on.

See full article from DailyFinance: http://www.dailyfinance.com/story/g...estate-bubble/19302329/?icid=sphere_copyright

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## Omar1984

Great news.

We wish our closest ally China all the best.


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## yashchauhan

west has been saying Chinese economic bubble will burst now and then.......but actually china's economy is getting stronger than ever......in fact there is no such bubble........just a hoax to momentarily comfort the west.........such huge investments by china are nothing new........even in past when the economy had gone into the trouble water......china invested heavily in nation building.........and the rising economy(averaged in double digits) and booing middle class has always absorbed the might of the bubble......China is playing very smart......India suffers from different speculations.....but both the countries have kicked the ***** of western analysts and critics.........GO ASIA GO!


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## T-Faz

Wow, this is great. Go China.



Time for all countries in our region to put their petty differences aside and work together to strengthen our economy and lift people out of poverty while educating them.


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## luffy

spectacular as always  for a stronger asia


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## applesauce

housing is the only thing im worried about but it seems the government has noticed this and have began to address the problem, i have faith in the government in this will wait to see what they will do...


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## dvk1982

when there is a growth of 10-12&#37; year over year.. one thing for sure is some sections of economy will build up excesses too fast...one can't deny that. The question is how can the govt control it when itself is run on steroids...

Many dont know here Construction (both govt and private) is around 50% of chinese economy. And every province and local leaders have targets of what kind of growth is required for the year. To meet it, essentialy u construct anything or everything. Build a road, building etc.... This works as china didnt have infrastructure till last decade. But as contruction will slow down we will see drastic fall in GDP growth or focus has to shift elsewhere....

I found it interesting to know that govt doesnt record Depreciation or Amortization of its properties !! esp when ur gdp is 50% construction !!.

China works like a company, where Higher level management Targets a Growth rate and lower level management delivers it. Its all numbers game and want to run as fast as one cud on the threadmill. 

It has worked so far no question. But surely there has to be a change or excesses will create havoc sooner than later....


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## applesauce

dvk1982 said:


> when there is a growth of 10-12% year over year.. one thing for sure is some sections of economy will build up excesses too fast...one can't deny that. The question is how can the govt control it when itself is run on steroids...
> 
> Many dont know here Construction (both govt and private) is around 50% of chinese economy. And every province and local leaders have targets of what kind of growth is required for the year. To meet it, essentialy u construct anything or everything. Build a road, building etc.... This works as china didnt have infrastructure till last decade. But as contruction will slow down we will see drastic fall in GDP growth or focus has to shift elsewhere....
> 
> I found it interesting to know that govt doesnt record Depreciation or Amortization of its properties !! esp when ur gdp is 50% construction !!.
> 
> China works like a company, where Higher level management Targets a Growth rate and lower level management delivers it. Its all numbers game and want to run as fast as one cud on the threadmill.
> 
> It has worked so far no question. But surely there has to be a change or excesses will create havoc sooner than later....



im gonna call BS on the 50% figure, please provide source to prove me wrong.


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## xukxuk

dvk1982 said:


> when there is a growth of 10-12% year over year.. one thing for sure is some sections of economy will build up excesses too fast...one can't deny that. The question is how can the govt control it when itself is run on steroids...
> 
> Many dont know here Construction (both govt and private) is around 50% of chinese economy. And every province and local leaders have targets of what kind of growth is required for the year. To meet it, essentialy u construct anything or everything. Build a road, building etc.... This works as china didnt have infrastructure till last decade. But as contruction will slow down we will see drastic fall in GDP growth or focus has to shift elsewhere....
> 
> I found it interesting to know that govt doesnt record Depreciation or Amortization of its properties !! esp when ur gdp is 50% construction !!.
> 
> China works like a company, where Higher level management Targets a Growth rate and lower level management delivers it. Its all numbers game and want to run as fast as one cud on the threadmill.
> 
> It has worked so far no question. But surely there has to be a change or excesses will create havoc sooner than later....


back 30 years ago 
deng xiao ping the designer of the modern china he had already given the developing plan for next 50 years
it shift the growth area every ten years
from south east ----> east ----> north east ----->middle------>west
right now we are at the beginning of the middle china or center china development progress.
in another words china still have 20 years of fast GDP growth rate base on infrastructrue.


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## grey boy 2

*China creates 2.89 mln new jobs in Q1 - People's Daily Online* April 23, 2010 

A total of 2.89 million new jobs were created in China's urban areas during the first three months this year, said the Ministry of Human Resources and Social Security (MOHRSS) Friday.

*From January to March, the urban unemployment rate fell 0.1 percentage points to 4.2 percent from the full-year figure for 2009, with 9.19 million people registered as unemployed, Yin Chengji, spokesman of the MOHRSS, told a press conference.

The 2.89 million new jobs created was about 32 percent of the full-year job creation target of 9 million, Yin said.*

Source: Xinhua


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## no_name

graphican said:


> China can you not teach Pakistan how you do these wonders?



Step one - shoot Zardari


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## applesauce

no_name said:


> Step one - shoot Zardari



for any development a strong leadership is a must

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## grey boy 2

*China's trade surplus to fall this year, economic upturn to continue: central bank - People's Daily Online* April 24

China's trade surplus this year will see a decline from the 2009 level despite a recovery in foreign trade, the People's Bank of China, the central bank, said here Friday.

*An increase in orders would push up export growth to more than 20 percent in the second quarter, while import growth would also stay high due to surging domestic demand and rising import prices, said the bank in a report released on its website.*

*"Exports have returned to pre-crisis levels and imports have hit all-time highs after seasonal adjustments," it said.*

*The report said China still faced deteriorating trade conditions with rising trade protectionism and the unstable global economic recovery.*

China's trade surplus stood at 196 billion U.S. dollars last year. March saw its first monthly trade deficit in six years, with exports at 112.11 billion U.S. dollars and imports surging 66 percent to 119.35 billion U.S. dollars.

*The country's macro-economy would continue to improve after a better-than-expected 11.9 percent economic growth in the first quarter, said the report, adding, "The Chinese economy has had a good start this year.*

"Companies are more willing to invest, while the people are showing stronger consumption demand," it said.

*Investment structure had been improved in the first quarter, with private investment rising 30.4 percent year on year, exceeding the 21.1-percent growth of government or state-owned enterprise investment, said the bank.*

*China's retail sales surged 17.9 percent year on year in the first quarter, and fixed assets investment rose 25.6 percent, data from the National Bureau of Statistics showed.*

The bank also noted that "credit controls have seen initial results", as new yuan-denominated loans fell to 2.6 trillion yuan in the first quarter, 1.98 trillion yuan less than the corresponding period last year.

*The government has stated that the proactive fiscal policy and relatively easy monetary policy would continue this year, while repeatedly warning of assets bubbles, inflation risks and overheating industries.*

*Soaring commodity prices were one of the government's major concerns, as the consumer price index, the main gauge of inflation, rose 2.4 percent year on year in March, nearing the government's upper limit of 3 percent inflation this year.*

*The bank said it would continue to strengthen liquidity management and keep an "appropriate" growth of money supply, so as to maintain stable prices and strike a balance between maintaining economic growth, adjusting the economic development model and avoiding inflation risks. *

Source: Xinhua

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## grey boy 2

*China's efforts to lift people out of poverty "unprecedented": Australian PM - People's Daily Online* April 24

China's transformation and efforts to lift millions of people out of poverty are " unprecedented", Australian Prime Minister Kevin Rudd said on Friday.

*Rudd said within 30 years, China has transformed itself into an increasingly global, wealthy, industrial and urban-centered economy and around 500 million people have been lifted out of poverty. "This is unprecedented."*

*"Nearly half of China's population now live in urban centers, including around 150 cities that number more than one million people." Rudd said, China now has more internet users and some 200 million bloggers. It has over 700 million mobile phone users. Over the past decade outbound Chinese tourist departures have grown five-fold to reach 47 million last year.*

Rudd told audience at ANU later Friday in the 2010 Morrison Lecture "These figures tell of a nation in a period of great change...We have all been beneficiaries of China's remarkable performance."

*He said after two decades of growth of around 10 percent per year, China is the world's largest exporter of manufactured goods, and the third largest exporter of all goods and services. It is also now the world's second-largest car market after the United States.*

*He also said China's economic performance gave drive to world economy. "This year, in the aftermath of the worst global economic downturn since the Great Depression, China continues to be the principal engine of global economic recovery - a fact highlighted by the International Monetary Fund in recent days."*

*In the speech, he announced the establishment of the Australian Center on China in the World based in the Australian National University which will enhance the ANU's existing capabilities to create an integrated, world-leading institution for Chinese Studies.

He said the Center will be a hub for national and international scholars. It will also be linked virtually with other university centers with related expertise both at home and abroad. "We must seek to enhance understanding of China at all levels of Australian society," Rudd said. *

Source: Xinhua

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## grey boy 2

*Interview: Stable, high growth behind China's success in poverty reduction, World Bank expert says - People's Daily Online*

*A leading World Bank expert has attributed China's remarkable success in reducing poverty to its ability to maintain stable and high economy growth over the past decades.*

*"It is not just 'some' progress that china has made in poverty reduction," said Hans Timmer, director of the World Bank's Development Prospects Group (DPG), in an interview with Xinhua on Friday.

"In that area, China was the most successful of all developing countries."*

Timmer spoke as the World Bank and the International Monetary Fund (IMF) released its Global Monitoring Report 2010: The MDGs after the Crisis, a publication that was prepared by DPG.

The MDGs (Millennium Development Goals) refers to a set of eight anti-poverty targets that world leaders have agreed to achieve by 2015.

*China reduced its poverty rate from 60 percent in 1990 to 16 percent, as the absolute number of extremely poor fell from 683 million to 208 million, the report shows.*

*"Thanks to rapid economic growth, especially in China, East Asia has already halved extreme poverty," it says.*

*"And now we are expecting in 2015, the ultimate time goal for the MDGs, it (poverty rate) will only be 5 percent," Timmer said. "There is no other country that is so successful."*

*STABLE, HIGH GROWTH*

Turning to the underlying factors, he said that a strong growth -- continued growth rates annually of almost 10 percent -- obviously played a leading role here.

*"But it is not only strong growth, it is also the character of growth and stability of growth."*

*China has been very successful in transforming a mainly agricultural economy into an industrial economy, "using very logical steps moving forward -- developing first very labor intensive light industry which created very quickly a lot of jobs for the people coming out of the agricultural sector," he said.*

*"Increasingly, China is also being successful in stabilizing growth," he said.*

Despite several periods of slow growth during the 1990s, China has improved its macro-economic stability over the past decade, and as a result, China has achieved "much stable growth," he said.

"So, it is basically the economic development with all its characteristics that have been responsible for this enormous success," Timmer noted.

*NEED FOR CHANGE*

China owed its fast growth to domestic productivity progress rather than to a strong demand outside the country, he said.

Actually, as demand outside China was not accelerating, China's fast-growing export was the result of domestic reforms which helped increase productivity year after year.

"As a result of that, that could increase their market share abroad," he said. "That is not something that is completely dependent on what was happening outside China."

Rather, "it is to a large extent dependent on the productivity progress inside China, and that still can continue for sometime," he said.

In spite of that, China needs further transformation of the economy if it wants to continue to grow at the same high growth rate.

*"We have seen the transformation from agriculture into industry and what we have to see now, is a transformation from industry into the service sector," he said. "The current 5-year plan in China exactly tries to do that."*

Although the shock of the crisis may have delayed that process, "I am convinced that relatively soon that the Chinese government will pick up again on achieving that transformation," he said.

*NO EASY COPYING*

*Turning to the bigger question whether China's success story can provide valuable lessons for other developing countries, Timmer expressed belief that "the whole development world can learn from the Chinese experience."*

*But "it will not be possible to exactly replicate these developments in other countries," because every country has its own characteristics and backgrounds, he said.*

The growth in China was the result of reforming the formerly centrally planned economy, a process that cannot be replicated in many other countries, he said.

Besides, China has a "very stable governance situation, which is not the environment of many other countries, he said.

*In fact, World Bank Chief Economist Justin Lin has set up a new research program to see to what extent the structural transformation in China can be replicated in other countries, especially in African countries, Timmer said.

"It is not something that is very easy. But obviously we learn lessons from this experience." *

Source: Xinhua

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## grey boy 2

*East China's Fujian opens high-speed railway linking to Shanghai - People's Daily Online*





*Train crew take photos in front of a high-speed train at Fuzhou Railway Station April 26, 2010. A high-speed rail line linking Fuzhou and Xiamen in east China's Fujian Province went into operation Monday, as the part of Shenzhen-Shanghai high-speed railway. The railway, 275 km in length, is designed for trains traveling at a maximum speed of 250 km per hour. It will reduce the travel time between Fuzhou and Xiamen to around 90 minutes from the current 11 hours. (Xinhua/Jiang Kehong)*

A high-speed rail line linking Fuzhou and Xiamen in east China's Fujian Province went into operation Monday, as part of the Shenzhen-Shanghai high-speed railway.

The railway, 275 km in length, is designed for trains traveling at a maximum speed of 250 km per hour. It will reduce the travel time between Fuzhou and Xiamen to around 90 minutes from the current 11 hours.

*Three pairs of high speed passenger trains will run between Shanghai and Xiamen during the upcoming Shanghai World Expo to cope with an anticipated increase in passenger numbers.*

*Fujian, on the western side of the Taiwan Strait, is an important destination for Taiwan residents visiting the mainland. However, roads from Fujian to other provinces are often congested. *

"The new line, together with another high-speed railway built last year to connect Fuzhou with Zhejiang Province's Wenzhou and Hangzhou, will help tackle the problem," said Zhang Jingui, an official with the railway construction office of Fujian Province. 

*Another three high-speed rail lines are under construction in Fujian, Guangdong and Zhejiang provinces to link cities, including Shenzhen, Xiamen, Hangzhou and Shanghai. "These railways, covering a total of 1,650 km, will constitute a transport network linking the Yangtze River Delta and Pearl River Delta," said Tong Yongzhao, an official with Nanchang Railway Bureau, which is responsible for the construction. *





*Passengers from Quanzhou City enjoy themselves inside a high-speed train running from Fuzhou to Xiamen April 26, 2010.*

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## applesauce

woot, i am originally from that area! never did like the long commute now when i got back i can expect a faster ride..must try this line out.

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## xukxuk

step by step mile by mile china build up the high speed railway
every few month we can see a new railway operate for this country
feel proud

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## lhuang

^ Didn't Chinese automobile industry surpass the United States recently? Rudd says otherwise...


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## Martian2

For 2009, China passed Italy to claim the ninth-highest rank for countries that receive the most patents in the United States.

Patents By Country, State, and Year - All Patent Types (December 2009)

Patents granted by the United States for the year 2009.

1. U.S. 95,037 patents
2. Japan 38,066
(Greater China 10,638)
3. Germany 10,353
4. South Korea 9,566
5. Taiwan 7,781
6. Canada 4,393
7. U.K. 4,011
8. France 3,805
9. China 2,270
10. Italy 1,837
...
India 720
Hong Kong 587 (Patent office counts Hong Kong as a separate entity)
Singapore 493
Russian Federation 204
Brazil 148

For 2009, *Greater China's 10,638* combined total patents (i.e. China's 2,270 + Taiwan's 7,781 + Hong Kong's 587) are greater than *Germany's 10,353* patents. Greater China would rank third on the U.S. patent list. The patent rankings are important because it helps to explain why China is the world's largest exporter and Germany is the world's second-largest exporter. Patents play an important role.

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[Note: These are my comments from last year on "Greater China outnumbers German patents."

There are 70,000 Taiwanese companies on the Chinese Mainland. It is my guess that many Chinese exports incorporate not only Chinese patents, but also Taiwanese patents. The Taiwanese were a perennial #4 in U.S. patents received until they were passed by South Korea in 2008.

While the current number of Chinese patents appears to be insufficient to support a large high-tech export base, the combination of Greater China (i.e. Chinese, Taiwanese, and Hong Kong) patents should suffice.

Greater China's 10,370 patents (i.e. China's 1,874 + Taiwan's 7,779 + Hong Kong's 717) are greater than the number of German patents at 10,086.

Taiwan (10/09)
"Significant migration to Taiwan from the Chinese mainland began as early as A.D. 500. ..... There are a number of small political parties, including the Taiwan .... *in China, and more than 70000 Taiwan companies have operations there*. .... In keeping with our one China policy, the U.S. does not support Taiwan ..."

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## Martian2

Greater China's patents play an important role in China's high-tech exports.

For 2009, due to the Great Recession worldwide, China's top two high-tech exports for "Electrical machinery & equipment" and "Power generation equipment" dipped to $537.1 billion US dollars. However, if we add in the $38.9 billion from "Optics and medical equipment" then the overall high-tech exports for 2009 are $576.0 billion U.S. dollars. See "Table 5: China's Top Exports 2009 ($ billion)."

US-China Trade Statistics and China's World Trade Statistics

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## Martian2

The 50 Most Innovative Companies - BusinessWeek

"The 50 Most Innovative Companies *April 15, 2010*, 5:00PM EST

The 50 Most Innovative Companies
For the first time since Bloomberg BusinessWeek began its annual Most Innovative Companies ranking in 2005, *the majority of corporations in the Top 25 are based outside the U.S. The reason: the new global leaders coming out of Asia*
...
The extended Top 50 list is dominated by companies from Europe, Asia, and, in another first, South America (Petrobrás (PBR) of Brazil at No. 41). *China's rise is biggest.* A year ago its only representative was PC-maker Lenovo Group (LNVGY), at 46. *This year Greater China is tied with Asia's postwar powerhouse, Japan, thanks to showings by BYD, Haier Electronics (27), Lenovo (29), China Mobile (CHL) (44), and Taiwan-based HTC (47). The age of Asian innovation has begun.*"

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## SinoIndusFriendship

The totally new design CRH380 display now in Shanghai expo. It will be used on the only offical high speed rail -- Shanghai-Beijing high speed rail next year. The highest speed of CRH380 will be 500 kilometer/hour. The average operating speed of Shanghai-Beijing will be at least 380 km/hour. But source said it will 420 km/hour. The issue for Railway Ministry now is the vehicle manufacturing speed fall far behind the demand.

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## chinapakistan

This stuff looks cool. 500km/hr! It even can compare to current shanghai Maglev train.

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## T-Faz

Wow, what a beauty. I would loe to travel in this one day.

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## blackwater 007

T-Faz said:


> Wow, what a beauty. I would loe to travel in this one day.



For that you have to travel to China. Your wish can't be fullfilled in either Pak or UK

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## U-571

the front stream lined part shows, its a different train with higher speed than average high speed trains.

btw is it china made??, then youll have to be care full when pushing it at 500 lol


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## Machoman

We need a same kind a train between India and Pakistan right????? lol


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## TOPGUN

Can't see pic's ....


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## AVADI

Got to hand it to the Chinese they are truly the masters when undertaking and implementing a mega projects bravo.

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## grey boy 2

*World Expo a boost to Shanghai's global financial center goal: economist - People's Daily Online*

The Shanghai World Expo provided a boost to the city's efforts to transform itself into a global financial center, a leading Shanghai-based economist said in an interview with Xinhua Thursday.

*The six-month event not only stimulated infrastructure construction and consumption, but could also showcase Shanghai's managerial expertise and economic vitality on this unique stage, said Lian Ping, chief economist of the Bank of Communications, China's fifth largest lender.*

*"The Expo will help attract more bankers and investors from both home and abroad to visit the city and do business here. The event will become a growth engine of the city and neighboring provinces for the next decade," Lian said.*

*The Shanghai World Expo, scheduled to open on May 1, will be the largest world exhibition ever and is expected to attract 70 million visitors from both home and abroad.*

"The municipal government should also endeavor to attract top financial talents to the city by more competitive salaries and long-term incentives," he added.

*The Chinese government decided in March 2009 to build the eastern metropolis into an international financial and shipping center in line with the country's economic strength and the international status of its currency by 2020.*

Source: Xinhua

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## chinapakistan

U-571 said:


> the front stream lined part shows, its a different train with higher speed than average high speed trains.
> 
> btw is it china made??, then youll have to be care full when pushing it at 500 lol



Yes, that is china made.


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## gogbot

Looks really sleek and fast.

When will it see use.

Most likely on the cross China routes ?


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## asq

i have read about it and am fasinated by it. It works on lavitating itself, would it not leave its tracks it is lavitating, if they run on such hight speeds.

And my next questions is that could it, God forbid, have an accidant.
I am not trying to be nagative but it is magical and i had some question pop in my mind.

Regardless of the questions. I CONGRATULATE CHINA FOR SUCH A GREAT ACHIEVEMENT.

Weldone china.


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## Omar1984

Fascinating. China is always building wonders.


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## TOPGUN

Wow what a beauty..


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## LCA Tejas

This is the most cutest train I have ever seen, chooooo chweet....


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## ARCHON

wow.. futuristic!!!! fantastic!!!!


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## grey boy 2

*Largest radio telescope in Asia to be built in Xinjiang - People's Daily Online*

*A radio telescope with a diameter of 80 meters will be constructed in the south of Xinjiang Uighur Autonomous Region, and it will be the biggest radio telescope in Asia and the third largest in the world, according to a report from Urumqi Online.*

*The radio telescope will mainly be used for observing special pulsars and stars in distant space, said officials from the Chinese Academy of Sciences and the National Astronomical Observatory.

At the same time, it is also important for Chinese research in astrophysics, aerospace technology and other areas. The radio telescope is very sensitive and can be used to observe a broader scope. It is called a radio telescope because a radio antenna is used to observe radio waves emitted by astronomical sources.*

*The special geographical location and excellent radio station sites in Xinjiang have unique advantages for the construction and operation of large diameter telescopes. Therefore, Xinjiang will make full use of its advantages, develop the key technologies needed for the project, complete the project as planned and will strive to make this platform an internationally renowned science research center. *

Currently, the site selection of the project is coming to a close, and the final selection will be based on the actual conditions. After which, one of the three sites in the south of Xinjiang will be selected to build the 80-meter radio telescope.

By People'sDaily Online

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