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April 02, 2008
Trade
April 02: Macao reports $400 Million trade deficit for Jan.-Feb. 2008.
China Trade Extra
April 02: US Treasury Secretary Henry Paulson met with Beijing's new point man
on strained trade ties with Washington amid Chinese alarm about the US credit
crisis and its possible impact on China's banks and economy. Paulson's visit to
talk about US-Chinese cooperation on trade, energy and the environment has
been overshadowed by alarm at the credit crisis triggered by defaults on subprime
mortgages.
Washington Post
April 02: Demand for Chinese visas among business owners in the occupied
West Bank is so high that the Chinese consul regularly visits the city of Hebron to
stamp their passports and circumvent an Israeli ban that prevents them from
traveling to the embassy in Tel Aviv. China began to open up its economy around
30 years ago, using cheap labor to produce and export huge volumes of
inexpensive goods that have undercut local industries in many developing
countries.
The New York Times
April 02: Macao recorded a trade deficit of $ 481 million for the first two months of
2008, and its export/import ratio declined 11.2 percent from the previous year,
according to trade figures released by Macao's Statistics and Census Service. The
total export value dipped 10 percent year-on-year to 2.66 billion patacas, while the
import value was 6.51 billion patacas, down 14.7 percent, according to DSEC. The
major export sources of the city are the US and the European Union, which
accounted for a combined 58.5 percent of the total in the period. The export value
to the two regions declined 7.2 percent and 26.8 percent respectively, as
compared with the same period last year.
China Knowledge
April 01: China should have begun the appreciation of the RMB much earlier than
it did and it should have appreciated more aggressively. Unfortunately, perhaps
because of the excess global liquidity of the past few years and especially of the
past few months, China is now caught in a monetary trap in which the high trade
surplus forces the central bank to buy large amounts of foreign exchange, which of
course causes very rapid domestic money expansion. This money expansion
feeds directly into excessively high levels of investment, which force up industrial
production and so causes the trade surplus to rise or remain high. It will be
extremely difficult for China to get out of this trap.
Sampa
Congressional Issues
April 02: Nancy Pelosi, the speaker of the House, suggested that President Bush
consider skipping the opening ceremony of the Olympics in Beijing to protest
China’s actions in Tibet, its overall human rights record and its trade policies.
Representative F. James Sensenbrenner Jr., Republican of Wisconsin, who made
the trip with Ms. Pelosi, said it would be premature to make a decision on
attendance of the ceremony now.
The New York Times
April 01: Fifteen House members, citing China's human rights abuses, urged
President Bush to reconsider his decision to attend the Olympic Games in Beijing
this summer. The letter was signed by 14 Democrats and Republican Dana
Rohrabacher of California, a longtime critic of the Chinese government. The letter
cited China's recent crackdown of protests in Tibet, the Beijing government's close
economic ties with the government of Sudan and recent suppression of religious
and human rights advocates.
Washington Post
Political and International News
April 02: US Treasury Secretary Henry Paulson and his new Chinese counterpart,
Vice Premier Wang Qishan, reaffirmed their commitment to the Strategic
Economic Dialogue launched by the two countries in December 2006. Mr. Paulson
started off his two-day visit to China by meeting Mr. Wang at the Great Hall of the
People, and the two officials said there was much work to be done in the final two
high-level meetings known as the SED during the remainder of the Bush
administration. Mr. Paulson, who arrived Beijing, plans to visit later in the day with
Chinese President Hu Jintao, and has a meeting scheduled with Premier Wen
Jiabao.
The Wall Street Journal; Washington Post
April 02: Antigovernment unrest that began among Tibetans now appears to be
spreading to another large ethnic-minority group, Turkic-speaking Uighurs, a
predominantly Muslim people who populate China's northwestern border province
of Xinjiang. Chinese authorities have been concerned that demonstrations that
began in Lhasa, the provincial capital of Tibet on March 10 and then spread to
parts of other provinces with substantial Tibetan populations, could spur unrest
among Uighurs.
The Wall Street Journal
April 02: The Olympics have so far failed to catalyze reform in China and pledges
to improve human rights before the Games look disingenuous after a string of
violations in Beijing and a crackdown in Tibet, Amnesty International said. The
International Olympic Committee, foreign leaders and overseas companies
engaging with China could appear complicit if they failed to speak out about the
rights violations, the London-based watchdog said as the volume of criticism of
China grows around the world.
Washington Post
April 02: China's human rights record is getting worse, not better, because of the
Beijing Olympics, a rights group says. According to Amnesty International, China
is clamping down on dissent in a bid to portray a stable and harmonious image
ahead of the Games in August. It urged the International Olympic Committee and
world leaders to speak out against abuses, including China's handling of protests
in Tibet.
BBC News
April 02: Li Changchun, a member of the Standing Committee of the Political
Bureau of the Central Committee of the Communist Party of China, arrived in
Syria for an official goodwill visit at the invitation of the Syrian Baath Arab Socialist
Party. Li had a stopover in Aleppo, a northern city of Syria before he went to
Damascus. Li met with secretary of the ruling Baath party branch in Aleppo Abdul
Kadir al-Masri, and governor Tamir al-Hijai. Li said China and Syria had enjoyed
the long-term friendship, and the two countries had maintained mutual trust and
support.
Xinhua
April 01: President George Bush may not be able to attend the opening ceremony
of the Beijing Olympic games if a bill is accepted in the US House of
Representatives. The bill seeks to prohibit President Bush and Federal
government officials and employees from attending the opening ceremony in
Beijing. According to a copy of the bill, being introduced by a member of Mr Bush's
Republican party, Thaddeus McCotter, Chairman of the House policy committee,
the prohibition is intended as a protest against the 'brutalising of protesters in
Tibet'.
The China News
Economy
April 02: World bank says China's growth to slow slightly, remain 'robust'.
China Trade Extra
April 02: The moderate slowdown that authorities have engineered in the
domestic economy is coming at a time when global economic prospects are
increasingly uncertain. China's export growth has been easing for several months
as the US economy has weakened, and that sector is unlikely to provide as big a
boost to China's overall growth this year. China's economic data for the year's first
two months show some slowing both externally export growth has dropped below
20 percent for the first time in recent years and domestically.
The Wall Street Journal
April 02: China economy is expected to slow to 10 percent in 2008 according to a
report released by the Asian Development Bank. ADB’s annual Asian
Development Outlook 2008 forecasts developing Asian economies to expand at
7.6 percent in 2008 and 7.8 percent in 2009. China’s economy showed signs of
overheating in 2007, inflation rose to an 11-year high according to the ADB
economist. The ADB expects inflation in Asia to “spike,” possibly hitting a decade
high with and average 5.1 percent rate throughout the region in 2008, followed by
4.6 percent in 2009.
China Briefing; Xinhua
April 01: According to the latest statistics, the total GDP of the Tibet Autonomous
Region was over 34.2 billion Yuan in 2007; and the per capita GDP exceeded
12,000 Yuan, nearly doubling from the level in 2007. The Tibetan economy has
maintained more than 12 percent of development growth for seven consecutive
years. The rapid economic development in Tibet reflects the strong support of the
central government. From batches of large-scale infrastructure construction to
support in bringing health insurance to farmers and herdsmen, education, and
cultural protection.
People's Daily Online
April 01: The World Bank trimmed its 2008 growth forecast for China to 9.4
percent from 9.6 percent but said it should be robust enough to help drive the
global economy as the United States and other industrialized countries slow.
Export growth weakened in late 2007 due to lower global demand but Chinese
consumer spending rose, the bank said in a half-yearly report on Asian
economies. "While the uncertain global outlook may slow Chinas exports, the
country's growth is expected to remain robust," the bank said.
The Examiner
Healthcare
April 02: Philips is expected to sign a medical research partnership agreement
with one of China's biggest hospitals, a first for multinational companies in the
country. The Dutch group, which is the world number three in medical imaging
equipment, is set to form a partnership with the West China Hospital in Sichuan
province, which, with 4,300 beds and 2m outpatients, is the largest single-building
hospital in China and one of the largest in the world.
Financial Times
Foreign Investments
April 02: China's efforts to build ties with resource companies that can feed its
economic growth, Australian regulators blocked a Chinese steel maker's attempts
to buy nearly 20 percent of Mount Gibson Iron Ltd. The Takeovers Panel ordered
the purchase of shares in the iron-ore miner by Shougang Concord International
Enterprise Co. to be canceled because the acquisition violates Australian law.
Chinese steelmakers are looking for alternative suppliers to heavyweights Rio
Tinto and BHP Billiton.
The Wall Street Journal
April 02: Hong Kong-listed sports wear retailer, China Dongxiang Group Co said it
plans to buy into Japanese equivalent Phenix Co, which holds the ownership of
two international famous clothing brands- Phenix and Kappa. The Japanese
company has the global ownership of Phenix which focuses on producing
garments for skiing and outdoor sports and owns full rights of Kappa in Japan,
Dongxiang said in a statement. The company raised $702 million through its Hong
Kong IPO last October. Currently, it owns Kappa in mainland China and Macao.
China Knowledge
Food/Consumer Product Safety Issues
April 02: Pakistan ROZ bill does not cover goods subject to China safeguards.
China Trade Extra
Energy & Environment
April 02: International Olympic Committee scientists have proved that Beijing's air
will present no health risk to athletes competing for up to an hour at the 2008
Games, IOC chief inspector Hein Verbruggen said. Beijing is one of the most
polluted cities in the world and despite a 120 billion Yuan ($17.12 billion) clean-up
over the last decade, pollution remains a concern for many athletes coming to the
Olympics, already a lightning rod for rights protests worldwide.
Washington Post
Insurance & Finance
April 02: China's leading stock markets finished sharply lower Tuesday on worries
over tighter credit conditions, a day after the central bank said it would take a more
hawkish stance on monetary policy. Shares in Hong Kong and Tokyo, however,
rose. China's Shanghai Composite Index, which tracks Yuan-denominated Class
A shares and foreign-currency Class B shares, skidded 4.1 percent to 3329.16, its
lowest level in nearly a year. The loss followed a 34 percent plunge in the first
quarter of the year.
The Wall Street Journal
April 02: According to experts, the stock plunge is a major threat to growth in the
real economy here. But there are worries that a prolonged downturn could
reverberate through China’s financial markets — especially since a large number
of corporations had aggressively shifted money, sometimes secretly, to play the
market. By some estimates, 15 to 20 percent of the profits reported last year by
publicly listed companies in Shanghai that are not involved in banking or finance
(which usually invest in stocks) came from stock trading gains.
The New York Times
April 02: China has offered export guarantee facilities worth up to $50 billion to
encourage investment in Nigeria in a bold strategy to woo Africa's biggest oil
producer. Sinosure, China's export credit guarantee agency, made the offer when
Umaru Yar'Adua, Nigeria's president, led a delegation of oil industry and business
leaders to Beijing last month.
Financial Times
April 02: A team of senior officials led by Mr Chen Wei Gen, Vice Governor of
Northeast China's Jilin Province, visited Singapore and held the China Jilin
Business Forum. The provincial government officials introduced the general
investment environment and a total of nine key investment projects, with an
minimum RMB 30 million each, to around 200 representatives of the local
enterprises from various industries.
China Knowledge
April 02: Baosteel Group Corp, China's biggest steel maker, said it may cut down
sales to Europe this year due to anti-dumping probes. Sales to Europe and Africa
are expected to fall to 500,000 metric tons this year, down 38 percent from
800,000 tons a year earlier, said Zuo Jingui, a top sales official with the company
in a Beijing conference, adding that it plans to raise sales to Africa and cut
shipments to Europe. European Union launched anti-dumping probes against
Chinese steel exporters, including Baosteel, the fifth time of such probe since last
September, which involved up to $681 million worth of steel products.
China Knowledge
April 02: The value of China's venture capital investments jumped 12.9 percent
year-on-year to $585 million in the first quarter of 2008, according to a report
released by ChinaVenture, a consulting firm providing services for VC investors,
investment banks and entrepreneurs both at home and abroad. In the first quarter,
the number of completed VC investment deals accumulated to 73, which was
radically flat from the 72 deals completed in the same period of 2007. But the
average deal size jumped 11.3 percent to $8.02 million.
China Knowledge
April 02: China Minsheng Banking Corp, the country's first joint-stock commercial
bank, has won the approval from China Banking Regulatory Commission to
acquire 25.56 percent stake in Shaanxi International Trust & Investment Corp,
said the latter in a filing to Shenzhen Stock Exchange. Minsheng Bank, the
country's seventh largest lender by market value, will buy 143 million A shares at
RMB 16.38 apiece, totaling RMB 2.34 billion. After the acquisition, Minsheng will
be the second largest shareholder of the trust firm, following Shaanxi Provincial
Expressway Construction Group.
China Knowledge
April 02: China Everbright Bank, Everbright Group's banking unit, will go public in
Shanghai in July or August, Everbright Group said. The bank will issue more than
820 million A shares, accounting for 10 percent of its enlarged share capital, said
Everbright Group, a State-owned financial conglomerate. The bank may float
shares on the Hong Kong stock exchange if its Shanghai IPO is successfully
completed before the 2008 Olympic Games
People's Daily Online
Science & Technology
April 02: Intel plans to proclaim in Shanghai that the next big thing in consumer
gadgets will be the “Internet in your pocket.” The challenge for the giant chip
maker will be to prove that it is not too late to a market that has rapidly become the
hottest spot in the consumer electronics business in a post-PC era. The first
generation of Intel’s MID technology will be aimed at data, not voice
communications, leaving the company out of the market for smartphones.
The New York Times
Internet
April 02: Chinese foreign ministry told that China's management of the internet
"general practice of the international community" and compared China's bans on
some internet content to those of other countries. She did not promise unfettered
access for journalists during the games. "In a sign of possible loosening of internet
controls, China a few days ago lifted a block on the BBC website that had been in
place for years.
Washington Post
April 01: The Internet must be open during the Beijing Olympics. That was the
message a top-ranking International Olympic Committee official delivered to
Beijing organizers during the first of three days of meetings _ the last official
sessions between IOC inspectors and the Chinese hosts before the games begin
in just over four months. Kevan Gosper, vice chairman of the IOC coordinating
commission, said restricting access to the Internet during the games "would reflect
very poorly" on the host nation.
Washington Post; Sign on Sandiego
General News
April 02: Chinese steelmakers and major iron-ore miners missed a deadline to
complete price negotiations, lengthening a standoff over soaring prices for natural
resources. Shipments of iron ore, a crucial steelmaking ingredient, aren't expected
to be disrupted because Anglo-Australian mining giants BHP Billiton and Rio Tinto
will continue to ship ore at last year's prices. But lack of a solid price for this year
complicates planning in the steel, mining and shipping industries
The Wall Street Journal
April 02: Chinese authorities said Tibetan activists abroad, including the Dalai
Lama, are planning more violence, including suicide attacks in China. But the
allegations were quickly denied by Tibet's government in exile. Tibet's exiled
government, based in Dharmsala, India, denied the charges, for which Chinese
security officials declined to detail evidence. "Our struggle is nonviolent," said
Thubten Samphel, spokesman for the Central Tibetan Administration.
The Wall Street Journal
April 02: Chinese officials said that police have captured the head of an
underground network that officials accuse of staging a deadly riot in the Tibetan
capital last month. Chinese officials are increasingly pointing to security concerns,
such as a possible suicide attack, to explain their plans for a heavy police
presence during the Games. According to the Reuters news service, Chinese
President Hu Jintao was quoted in the official newspaper of the Chinese
paramilitary forces as saying that security was paramount in ensuring a successful
Olympics.
Washington Post; Washington Post
April 02: China has branded the Dalai Lama a ''wolf in monk's robes'' and his
followers the ''scum of Buddhism.'' It stepped up the rhetoric, accusing the Nobel
Peace laureate and his supporters of planning suicide attacks. The Tibetan
government-in-exile swiftly denied the charge, and the Bush administration rushed
to the Tibetan Buddhist leader's defense, calling him ''a man of peace.''
The New York Times; Washington Times
April 02: The Chinese president, Hu Jintao, has ordered his nation’s security
forces to place a top priority on the Olympic Games in August, saying that China’s
international reputation is at stake. China has increased its accusations that
Tibetans are planning violent attacks in their quest for increased autonomy, which
the Tibetans deny.
The New York Times; The New York Times
April 02: The Beijing Olympic torch will travel about 6 miles along San Francisco's
waterfront, according to long-awaited route details released on the same day city
supervisors approved a sharply worded resolution blasting China's human rights
record. People who plan to protest the torch's presence in the city had demanded
for weeks to know its route so they could begin organizing the thousands of
demonstrators expected when the Olympic symbol is carried through the streets
on April 9.
San Francisco Chronicle
April 02: China's Ministry of Public Security said that it had gathered sufficient
evidence showing that March 14 riots in Lhasa was not isolated or accidental but
was part of the "Tibetan People's Uprising Movement" plotted by the Dalai clique.
Solid facts showed that the unrest in Lhasa, the capital of southwest China's Tibet
Autonomous Region, was organized, premeditated, masterminded and instigated
by the Dalai clique and its "Tibet independence" forces, the ministry said.
People's Daily Online
April 01: Chinese Foreign Ministry Spokeswoman Jiang Yu urged the Dalai Lama
to stop all separatist and sabotage activities if he really wants to contact and
consult with the central government. Jiang made the remarks at a regular press
conference, saying if the Dalai Lama really wants to contact and consult with the
central government and become "a member of the big family" of the homeland, he
should immediately stop all violent activities that disturb and sabotage the Beijing
Olympic Games, and stop all activities that attempt to separate Tibet out of China.
People's Daily Online
April 01: 120 million people in China receive work-related injury insurance
benefits. This scale of coverage makes work-related insurance the nation's third
largest type of social insurance, just preceded by elderly and medical insurances.
In recent years, work-related injury insurance funds have increased steadily. The
income and expenditure of work-related injury insurance funds in 2007 reached 25
billion Yuan, 3.8 times higher than that in 2003 (6.5 billion Yuan).
People's Daily Online
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