What's new

China Economy Forum

Shanghai builds Asia's largest dairy plant - People's Daily Online April 20, 2011

0013729e47710f05f89a07.jpg


Bright Food Group Co. Ltd, a leading food and dairy company in China, started building Asia's largest diary factory with a daily processing capacity of 2,000 tonnes, in east China's Shanghai on Monday.

With an investment of 1.4 billion yuan (about 214.3 million U.S. dollars), the factory is designed to process 2,000 tonnes daily of fresh milk, yogurt and other kinds of dairy products under the Bright Food Group Co. brand. Its annual capacity is expected to reach 600,000 tonnes, said company president Guo Benheng.

The new factory will be put into operation in 2013. And its annual sales revenue is expected to reach 4.65 billion yuan (about 710.3 million U.S. dollars).

Source: Xinhua
 
China vows to double workers' pay in 5 years - People's Daily Online April 19, 2011

china-wages-and-output.jpg


China is striving to increase the average Chinese wages by 15 percent annually in a bid to achieve a two-fold increase in pay by the end of 2015, the Ministry of Human Resource and Social Security (MHRSS) said according to a report in the Beijing Times Tuesday.

Yang Zhiming, vice-minister of human resources and social security, speaking during a national labor relation conference Monday, said 13 provinces have raised their minimum wage by an average of 22.8 percent, with more cities likely to see a pay raise within the year.

Addressing the widening income gap between the wealthy and the poor, Yang said the income of officials should be transparent and payment regulations should be re-examined for people with a high income.

The report says heads in 90 percent of major Central State-Owned Enterprises can earn in excess of a million yuan a year. Yang said the 12th Five-Year Plan (2011-2015) is therefore set to narrow the income gap and re-distribute human resources and money among the high wage earners.

The problem of migrant workers failing to get paid on time will also be addressed by the newly-revised Criminal Law, which added "malicious arrears of wage crime" into its articles thanks to the ministry's lobbying the Standing Committee of National People's Congress earlier this March during China's "two sessions."

"We'd spare no effort step by step to ensure there's no wage-arrears in China by the end of 2013," Yang said.

Source: China Daily

overtly optimistic
 
中国万岁-ProsperThroughCo-op;1683387 said:
China Daily
CHUNG-YUE CHANG

The ills of blind
pursuit of pleasure
Now THAT is what I call progress!

All progress comes from a strong foundation in fundamental philosophy.

Why was the West dominant for the past 400 years? It's because of philosophical breakthroughs "age of reason."

Why was China dominant for thousands of years? It's the foundation laid down by the classical philosophers in Zhou Dynasty.

Once China has a philosophical / ideological rebirth, technological, economic and social breakthrough is inevitable.
 
‘Voluptuous’ Volvo debuts in China
By Patti Waldmeir

Published: April 19 2011 18 :06 | Last updated: April 20 2011 08

1a48ccd8-6aab-11e0-80a1-00144feab49a.jpg


Volvo Cars chief Stefan Jacoby says the concept car, dubbed the Tiandi or Universe (pictured), ‘has nothing to do with Geely’ 

Volvo Cars on Tuesday gave the first sign of its design direction under new Chinese owners, unveiling a global concept car at the Shanghai car show that the Swedish group hopes will help shed its stodgy image.

The unveiling of the car – made larger, flashier and sleeker than traditional Volvos, partly to attract Chinese buyers – has been keenly awaited for the clues it could give to the working relationship between the group and Geely, the Chinese carmaker that bought Volvo Cars last year.

Geely’s purchase of Volvo Cars is the biggest acquisition of an overseas brand by a Chinese carmaker. It is viewed as a model of a successful acquisition in the automobile sector by Beijing, which is encouraging other China carmakers to look overseas for targets.

Stefan Jacoby, chief executive of Volvo Cars, said the concept car, the Tiandi or Universe, “has nothing to do with Geely” and was not influenced in any way by the Chinese company, which is run entirely separately from Volvo.

“I don’t report to Li Shufu,” Mr Jacoby said, referring to the Geely chairman, who has said that he differs with the management of Volvo Cars on the kind of Volvo he would like to see sold in China but that he will defer to Volvo’s judgment.

Mr Li told the Financial Times in an interview that the car was the “result of a consensus of all who contributed”.

“My only suggestion was that in China, Chinese consumers always want a more luxurious car,” he said. The Tiandi was a result of that view and Volvo’s traditional focus on safety, environmental friendliness and energy consumption, he added.

“I don’t see that this car has any Geely influence whatsoever,” said Bill Russo, head of Beijing-based Synergistics car consultancy and former head of Chrysler in China.

“It’s pure European styling, which should help the Volvo brand gain attention in China.”

Launching the car at the start of the Shanghai show, Volvo Cars officials made only scant mention of Volvo’s traditional brand values of safety and environmental friendliness, focusing instead on its “voluptuous curves” and “coupé-style roof line”.

Asked whether safety was no longer important to Volvo Cars, Mr Jacoby said: “We have to look for other brand values next to safety. Safety will remain a core competence, but we will maybe not directly market this as a safe car.”

Mr Li said Chinese customers already perceived Volvo as the safest car on the market. “We want more people to be more aware of Volvo as a premium luxury car,” he said.

Mr Russo said: “This is definitely a departure from conventional Volvo styling. This car underscores [Volvo’s] ambition to become more sporty, youthful and stylish.”

Asked what it was like to work for a Chinese owner, an obviously exasperated Mr Jacoby said: “It’s very normal. I wear a white shirt. I shave myself in the morning. I don’t speak Chinese yet.”

He said Geely had a “deep understanding of the auto industry” and more patience about return on investment than private equity owners.

Mr Li said there had been some disagreements at the beginning – for example, over whether the Volvo S80L, one of the models sold in China, was smaller than its direct competitors as it appeared to be from the outside.

But Mr Li said Volvo proved to him that through the use of advanced technology, the carmaker had been able to extend the interior space in the vehicle without making it bigger externally.

“I realised that Volvo [was] right,” he said. “[The biggest lesson in the first year after buying Volvo is that] you really need to study and understand and respect the culture of the company and the culture of the nation and through discussion form a consensus.”

Mr Jacoby expected China increasingly to influence the design of car models.

“They are developing their own distinctiveness. It is no longer coming all out of New York.”

He pointed out that the Chinese car industry was becoming increasingly competitive.

Paul Newton, analyst at IHS Automotive, in a note entitled “China moves to centre of global auto stage”, wrote: “China has clearly been a key market for global automakers for many years, but perhaps for the first time Shanghai’s annual show feels like a genuinely international affair, reflecting the new world order and most likely the shape of things to come.”

About 2,000 carmakers and component suppliers from 20 countries are participating, showcasing 75 new car models, 19 of which are making their world debuts, he said.

The growing confidence of Chinese carmakers had led to one unexpected shift in the focus of the Shanghai show, analysts said.

“The electric vehicle theme that was so prevalent in the last two [Chinese] auto shows is not as front and centre at this show,” Mr Russo said.

“Chinese car companies, which previously focused on EV technology as a way of differentiating themselves, are now emphasising conventional gasoline-powered cars more. They are not as reliant on an EV theme.”

Beijing is heavily promoting electric vehicles as an interim solution to the country’s environmental and energy dependence problems, but electric vehicle sales in large numbers are not expected for several years.

It's actually a very nice car, seen from the concept pictures.
 
Singapore aims to be renminbi hub

Singapore has made a bid to become the first overseas hub for trading renminbi, marking a new stage in the internationalisation of the Chinese currency.

The Monetary Authority of Singapore said Beijing would soon appoint a Chinese bank to clear renminbi trades in the city state – a move that would enable Singaporean banks to directly access onshore renminbi rather than having to route transactions via Hong Kong or commercial banks on the mainland.

“It’s a huge development,” said Mirza Baig, a Singapore-based currency strategist for Deutsche Bank. “Think of a clearing bank as a pipeline that flows between Singapore and mainland China. Singapore won’t need to go through Hong Kong any more.”

Almost 7 per cent of China’s international trade was settled in renminbi in the first quarter of this year, up from almost zero two years ago, official data showed this week.

The People’s Bank of China, which declined to comment on the Singapore plans, is pushing for a greater role for the renminbi in global trade and investment so that China can reduce its almost total reliance on the US dollar.

Goh Chok Tong, the former prime minister who now chairs the board of the MAS, said the PBoC would soon approve a Singapore branch of a major mainland bank to handle the clearing.

The clearing bank is expected to be either Industrial and Commercial Bank of China or Bank of China, which have the largest Chinese banking operations in Singapore.

Mr Goh did not say what services the clearing bank would provide. These details will determine the extent to which the move will benefit Singapore and pierce the thicket of controls that restrict the flow of currency in and out of the Chinese mainland.

The only place outside mainland China that currently has a renminbi clearing bank is Hong Kong, where Bank of China (Hong Kong) has been appointed by the PBoC to clear trades with the mainland market.

As renminbi has flowed out of mainland China through trade, Hong Kong banks have taken in the lion’s share of deposits and used them to fuel a growing market in renminbi-denominated financial products.

Renminbi deposits in Hong Kong surged to Rmb408bn ($62bn) in February – up more than eightfold from two years ago.

Singapore’s ambitions in the renminbi business reflect a long history of financial sector rivalry between Singapore and Hong Kong.

Hong Kong has more regional headquarters of international banks, but has lost out to Singapore as a centre for commodities and currency trading.

Mr Goh said a designated bank clearing operation in Singapore would facilitate trade in the renminbi between China and south-east Asian nations. But he played down Singapore’s prospects of rivalling Hong Kong – a self-governing Chinese territory – as the main international centre for renminbi-based financial activity.

“We have no ambitions to try to rival Hong Kong,” he said.

Analysts say Singapore poses little threat to Hong Kong’s privileged role as the designated offshore renminbi centre as long as China maintains strict controls on cross-border flows of its currency.

However if the renminbi became a fully convertible currency, electronic brokering would make national borders irrelevant, said analysts said.

Then Singapore – as the world’s fourth largest foreign exchange trading hub, two places ahead of Hong Kong – could see its importance increase substantially.


FT.com / Asia-Pacific - Singapore aims to be renminbi hub
 
China's agriculture sector faces rising costs in 2011: think tank - People's Daily Online April 20, 2011

724px-China_agricultural_1986.jpg


China's agriculture sector is expected to face increasing pressures from rising costs in 2011, according to China's Rural Economy (2010-2011), a report released Tuesday a leading think tank.

Fertilizer prices, which increased during the fourth quarter last year, were likely to keep rising this year while stock feed prices are also likely to rise, the Chinese Academy of Social Sciences (CASS) said in the report.

10180064-chart-apparent-consumption-of-chinas-chemical-fertilizer-industry-2003-2007.jpg

China consumption of chemical fertilizer 2003-2007

The CASS report also predicted grain prices, especially of corn, to continue to trend upwards in 2011.

Further, the report urged greater efforts to stabilize agricultural production costs, by increasing supply and tightening market regulations.

China's annual grain output is estimated to reach 550 million tonnes in 2011, the report said.

China's grain output rose 2.9 percent year on year to 546.41 million tonnes in 2010, marking it the seventh consecutive year of growth for China's grain output.

On foreign trade of agricultural products, the report said imports and exports of China's agricultural products are both expected to slow in the medium and long term.

Statistics from the Ministry of Agriculture showed that China's export volume of agricultural products registered an average of 13.2 percent annual growth from 2002 to 2010.

According to the report, China has maintained a high rate of grain self-sufficiency.

In 2010, China's domestically-grown rice, wheat and corn is estimated to have accounted for about 99.8 percent, 98.9 percent, and 99.1 percent of the total domestic grain market share, the report said.

Source: Xinhua
 
Why is foreign investment still strong in China? - People's Daily Online April 21, 2011

China-India-FDI.gif


According to the statistics released by China's Ministry of Commerce, China approved 5,937 new foreign-invested companies in the first quarter, up 8.8 percent year on year, and Foreign Direct Investment (FDI) in China has increased with a 29.4 percent year-on-year rise in the first quarter to 30.34 billion U.S. dollars,

By the end of March, China had approved 716,578 foreign-invested companies and used 1.08 trillion U.S. dollars of FDI.

Seek wider space for development

"The quick increase in foreign investment introduced by China in the first quarter was within the expectation because China has a big market as well as a large population. However, its GDP per capita is lower than the half of world's average, which also means it has great potential for development," said Zhang Hanya, the president of the Investment Association of China.

He also pointed out that some of China's regulations on foreign investment in recent years did make some small foreign companies unhappy, but those measures are in line with the principles of the World Trade Organization (WTO) and promises from China. He said they do not affect the investment from large transnational corporations.

Zhang said the world is currently walking out of the shadow of the financial crisis and needs more liquidity. Therefore, China, with its stable politics situation, fewer natural disasters and better environment for investment, has automatically become the priority for foreign investors. Those foreign businessmen are going to seek much wider space for their development in China.

However, the major driver behind the increase in FDI in the first quarter of this year is due to the attractiveness of the domestic economy, said Mei Xinyu, a researcher from China's Commerce Ministry.

Analysis emphasizes that despite the downturn the global economy, foreign enterprises in China are generally doing pretty well due to the quick recovery of China's economy and the investment environment, which is constantly being enhanced. Some of enterprises became their mother companies' cash cow. China, which has great potential for development, has already become the "safe house" for international capital amid the financial crisis.

According to the "World Investment Prospects Survey 2010-2012" released by the United Nations Conference on Trade and Development (UNCTAD) last year, China tops the 14 other most attractive destinations for investment in the world and is the first choice of transnational corporations.

Commerce Minister Chen Deming said recently that China continues to blend into the global economy, complementing advantages with other countries and sharing benefits since joining into WTO. China has become an emerging market with a large scale and rapid growth, and China's strong development provides important force for Asia and even the whole world.

Upward trend in foreign investment will continue

Lately, some voices question whether China can continue to attract foreign investment since China's exchange rate keeps increasing along with labor costs.

However, scholars emphasized that China will continue attracting more foreign investment.

Regarding how China will use foreign investment in next step, Mei Xinyu believes China's share of introducing foreign investment will be larger in the world, especially those investments targeting China's domestic market.

In addition, with emerging benefits due to the stability of China's macro economy and politics, investments in China as "safe house" will increase, too.

Some scholars say the inflow of international capital eases the shortage of capital in China as it continues on the road of development and promotes the rapid growth of the export-oriented economy. At the same time, foreign direct investment upgrades the technical level and organization efficiency of China's economy and increases the production efficiency of its national economy.

From quantitative expansion to qualitative benefit

Some scholars think China's policies of introducing foreign investment for quantitative expansion must give way to policies for purchasing qualitative benefit since China has already become the second largest economy in the world.

Zhang Yansheng, the director of International Economic Research Office of NDRC, said China should bring more high grade foreign investment into through building a much open and competitive market.

"We should figure out whether absorbing foreign investment is the final goal or just a method and how can we develop ourselves through learning from others."

However, introducing foreign investment does not mean more is better. Experts point out that shifting from quantitative expansion to purchasing qualitative benefit is a new problem in China's development.

By Wang Hanlu People's Daily Online
 
Beijing-Shanghai high-speed rail to remove luxury seats - People's Daily Online April 20, 2011

2560.1269886484.jpg


The operators of the Beijing-Shanghai high-speed rail that is scheduled to be put into operation at the end of June will remove luxury train seats and lower the operating speed in order to better meet the needs of common passengers by charging lower fares, the railway authorities said on April 19.

Earlier, the new trains for the Beijing-Shanghai high-speed railway were all produced under the standard of running at the maximum speed of 380 kilometers per hour and at the normal speed of 350 kilometers per hour. However, according to the latest provisions by the Ministry of Railways, the maximum speed of the trains will be lowered to 300 kilometers per hour and the aviation-grade luxury seats will be replaced by standard seats.

"China's high-speed railway sector has set safety, reliability, economy and availability to common people as the new emphasis, attempting to enable more common passengers to enjoy the convenience of high-speed railways," a transport expert who declined to give his name told reporters.

Although foreign high-speed trains also run at speeds up to 400 kilometers per hour and some even more than 500 kilometers per hour, foreign operators all left sufficient safety redundancy for the trains when putting them into actual operation. This is why the highest operating speed of high-speed railway trains in developed countries stands at only at 320 kilometers per hour.

Furthermore, after the speed of a railway train exceeds 320 kilometers per hour, the costs of energy consumption for the train will double for a rise of every 10 kilometers per hour in the speed. Therefore, high-speed operators cannot focus only on lifting operation speeds but rather select an operating mode that can best fulfill practical needs and is most economically feasible.

After the operation speed for the Beijing-Shanghai high-speed railway is lowered, a non-stop high-speed train is expected to complete the journey between Beijing and Shanghai in five hours instead of four hours as originally planned.

To compete for high-end commercial passengers with the aviation sector, the operators of the Beijing-Shanghai high-speed railway once planned to use aviation-grade train seats as its biggest selling point. They added not only VIP cabins similar to first-class aircraft cabins to the trains but also commercial cars equipped with flatbed seats.

However, luxury facilities on most high-speed trains are being removed and will be restored into common high-speed trains with only first and second-class seats. This will help enlarge the fare difference between the Beijing-Shanghai high-speed railway and air travel, as well as lift the passenger occupancy rate.

By People's Daily Online
 
Chongqing to start building high-speed railway to Changsha - People's Daily Online April 21, 2011

0013729e47710e8e21e131.jpg


The construction of the Chongqing-Changsha special passenger line, with a maximum speed of 250 kilometers per hour, is expected to begin in 2011. This is the second special passenger line under construction in Chongqing.

According to the Chongqing Development and Reform Commission, as the passenger and freight transport of the currently-running Chongqing-Huaihua railway is extremely saturated, the construction of the Chongqing-Changsha special passenger line has now become even more urgent.

The Chongqing-Changsha railway is divided into three sections, namely the Chongqing-Qianjiang section, the Qianjiang-Zhangjiajie-Changde section and the Changde-Changsha section, which will be constructed in different stages.

Currently, the Ministry of Railways has launched preliminary work for the Qianjiang-Zhangjiajie-Changde section and the Changde-Changsha section, and construction is expected to start in 2011.

The Chongqing-Qianjiang section has currently been included in the Chengdu-Chongqing urban agglomeration inter-city railway network plan as a near-term project. The completion time of the Chongqing-Qianjiang section may be slightly behind the other two sections.

However, passengers from Chongqing to Changsha can still first take the Chongqing-Qianjiang section of the Chongqing-Huaihua railway and then take the Qianjiang-Zhangjiajie-Changde section and the Changde-Changsha section.

According to sources, the Chongqing-Changsha special passenger line will be completed and put into operation by 2015. It will take only three hours from Chongqing to Changsha if the train runs at its designed speed of 200 to 250 kilometers per hour.

After the line is completed, the "Chengdu-Chongqing-Changsha-Guangzhou-Shenzhen" rapid network and the "Chengdu-Chongqing-Changsha-Nanchang-Hangzhou-Shanghai" rapid network will also be formed to establish a closer relationship between Chongqing and cities on the southeastern coast.

By People's Daily Online
 
What do you expect from CCAV.

It indeed looks Japanese. Chinese trains are sleeker and more aerodynamic.
 
New nuclear power plants 'set to be approved' - People's Daily Online April 22, 2011

download


New nuclear power projects may be approved, following suspension of the procedure on March 16 by the State Council after the Japanese tsunami, when the nuclear safety plan is issued, probably in August, a senior nuclear expert said.

"Operating plants and plants under construction will soon be inspected and reviewed by a group of experts," Lin Chengge, a senior expert at the State Nuclear Power Technology Corp Ltd (SNPTC) and former deputy director of the National Nuclear Safety Administration (NNSA), told China Daily.

The review group completed an inspection of the Daya Bay nuclear power plant in Guangdong province, last week.

"Results of the inspection will be provided to the government so it can decide if safety improvements are needed," Lin said.

The move came after the government said on March 16 that it would suspend approval for new nuclear projects, following Japan's nuclear crisis, until a safety plan is issued.

The NNSA also ordered existing facilities to launch safety checks following the Japan crisis.

"I think China will use the most advanced third-generation technology in all future nuclear plants," Lin said.

Four reactors under construction will use the third-generation AP 1000 model designed by US company Westinghouse Electric and introduced by the SNPTC in 2006.

"One of the units will have 70 percent of its components made in China," Lin said.

"Only the most advanced technology can restore people's confidence in nuclear safety."

However, other experts are divided on the technology to be adopted by China's future nuclear plants.

"The second-generation nuclear technology that China has been using has no safety problems," said Pan Ziqiang, director of the Science and Technology Commission at the China National Nuclear Corp (CNNC), the largest nuclear plant operator in China, which uses second-generation technology.

CNNC is building two of the four reactors that will use third-generation technology.

"Though third-generation technology is better, there is a process that takes some time from starting operations to perfecting the technology," he added.

Even though the speed and scale of China's nuclear development will be adjusted, subject to inspection results, dramatic changes are unlikely after the Japan accident, Lin said.

China could add 12 gigawatts (gW) of nuclear capacity annually in the near term and is expected to boast 70 to 80 gW by 2020, Zhou Dadi, director of China's Energy Research Institute, said on April 15.

The country had a total of 10.82 gW of nuclear capacity at the end of last year, the China Electricity Council said.

China's revised nuclear capacity was expected to reach 86 gW before Japan's nuclear crisis.

The country's resolution to develop nuclear power is unlikely to be shaken by the situation in Japan.

The country will not waver in its determination to develop nuclear power, Vice-Premier Zhang Dejiang said during a recent visit to the China Institute of Atomic Energy, affiliated to the CNNC, on April 14, according to CNNC's website.

China's nuclear development will slow down during the next two to three years but in the medium and long term its nuclear strategy cannot be shaken, the Financial Times reported, quoting Feng Yi, deputy secretary-general of the China Nuclear Energy Association.

Source: China Daily
 
Back
Top Bottom