China Economy - News & Updates

[Neo]

Tuesday, March 27, 2007

Europe urges China to slash steel exports

GUANGZHOU: Europe’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 China’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 China’s steel product exports to Europe jumped to more than 5 million tonnes last year from 300,000-400,000 tonnes a year earlier. “Increases of this extent cannot continue without repercussions on the market, and repercussions on our relations to China,” he said.

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

 

[Neo]

Tuesday, March 27, 2007

China’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.

“I am certain this visit will give new momentum to the deepening of Russian-Chinese relations and to our practical cooperation in all spheres,” 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 world’s number two oil consumer, and Russia the second-largest exporter. But their potential partnership has been stymied by both nations’ 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.

Russia’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. “Energy is a source of tension but also potential cooperation,” 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.

“Russia needs to keep its military industry floating, and China is really important to doing that,” 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 ‘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 China’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. “Illegal land seizures, embezzlement and continuously delaying compensation for farmers violated farmers’ interests,” 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’ 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.

“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 (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 trade 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.

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

China’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’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.” 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’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’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’s second-largest city.

The plans also included the building of the world’s highest airport at Ngari in the west. Tibet’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’s vice-chairman, Hao Peng, said the investment would be tilted towards herding regions “so farmers and herders and the grassroots population will fully enjoy the fruits of reform and development”, 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]

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!

 

[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 world’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’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’s second-largest city.

The plans also included the building of the world’s highest airport at Ngari in the west. Tibet’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’s vice-chairman, Hao Peng, said the investment would be tilted towards herding regions “so farmers and herders and the grassroots population will fully enjoy the fruits of reform and development”, Xinhua reported.

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

 

[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 China’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.

“We are particularly interested in exhibitions devoted to innovative and information products, aviation, aeronautics and energy, the nuclear industry,” Putin said, presiding over a 20,000-square-metre (24,000-square-yard) display of products ranging from silk to high technology.

“Increasing numbers of Russian and Chinese entrepreneurs are beginning to make promising technological and industrial transactions in joint investment and innovation projects,” he said.

Russia wants China’s help in kick-starting its high-technology sphere in exchange for helping to fill China’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 China’s example as one of the world’s fastest-growing economies, former prime minister Yevgeny Primakov said.

“We are studying China’s experience closely,” he told reporters at the fair. China and India “are growing twice as fast as the United States. The question is: To whom does the future of the world belong?”

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 region’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 Hu’s visit.

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 talked up strong 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 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.

Among the possible sources of discord during Hu’s visit were Russian concerns about China’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

 

[Neo]

Wednesday, March 28, 2007

China energy firm to double Iran investment

BEIJING: China’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 world’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 Spain’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

 

[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.

China’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 world’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. “Most of China’s purchases have shifted to euro. It’s not difficult so long as our banks can handle that,” said a Chinese state oil trader.

Japanese refiners, who buy about 500,000 barrels per day of Iranian crude, nearly a quarter of Iran’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 Iran’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.

Iran’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 Iran’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 China’s third-largest crude supplier with daily volume of 335,000 barrels last year. Sinopec, Asia’s top refiner, is still paying in US dollars, said a Sinopec trader.

Japanese buyers, including the country’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. “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,” 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

 

[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 world’s biggest emitter of carbon dioxide, according to an estimate based on Chinese energy data.

China’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 Nations’ 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 China’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 BP’s estimate of a 9 percent increase in China’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 world’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 countries’ plans to fight climate change, Reuters reported from Brussels.

The commission cut Poland’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 EU’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

 

[Neo]

Chinese economist warns on risks of overheating

BEIJING: China’s economy is seeing greater risks of overheating, necessitating further steps by Beijing to keep the world’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.

“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,” said Chen, whose think-tank is affiliated with the National Development and Reform Commission (NDRC), the powerful economic planning agency.

“The pressure is getting stronger, and action should be taken as quickly as possible to keep the risks from accumulating,” he said.

The central bank has raised banks’ 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 People’s Bank of China step up its efforts at soaking up liquidity by issuing more bills and further increasing banks’ 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

 

[Neo]

Boeing’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 China’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.

ìToday’s smooth delivery marks an important milestone for SAMF to enhance its subcontracting production of aviation components,î 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 company’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 Boeing’s commercial aircraft programs, including the new 787 Dreamliner, Carolyn Corvi, Boeing’s vice president and general manager for airplane programs, said in the release.

Much of that business has been with SAMF’s parent company, Shanghai Aviation Industrial Corp, itself a subsidiary of the massive state-owned China Aviation Industry Corporation I, or AVIC I.

ìOur work together has been mutually beneficial and has contributed to the success of Boeing commercial airplanes and China’s aviation industry,î 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 China’s first commercial jet airliner, the ARJ-21, expected to seat 70-110 passengers. China’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 country’s fast-growing aviation market.

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