Download 10.06 - US Chamber of Commerce

Trade
Political and International
News
Economy
Foreign Investments
Food/Consumer Product
Safety Issues
Energy & Environment
Insurance & Finance
Science & Technology
Internet
Cross - Straits
General News
US Chamber China Trade & Investment News
October 06, 2008
Trade
October 06: China's retail sales surged during the week-long National Day holiday. Retail
sales between September 29 and October 05 rose 21 percent from the holiday period in
2007 to $61.3 billion. The increase was five percentage points more than the rise in 2007,
due to strong demand for food products and surging tourist traffic.
http://online.wsj.com/article/BT-CO-20081005-704547search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXcGc8rnpYUo
October 06: Trade between Russia and China has increased rapidly, experiencing a sixfold increase in the past decade. After implementation of the Sino-Russia Good Neighborly
Treaty of Friendship and Cooperation in 2001, bilateral trade surged. In 2001, trade
reached $10.67 billion. Just five years later in 2006, trade reached $33.4 billion. In 2007,
the two countries launched new cooperation programs in energy, aviation, and
construction while trade grew to over $40 billion. Trade is expected to reach as much as
$80 billion by 2010.
http://www.quamnet.com/newscolumnistcontent.action?articleId=972580
October 06: The combined value of China's auto import and export during the first eight
month of 2008 rose by 31 percent compared with the same period of 2007. During the
reporting period, China's auto imports grew 35 percent year on year while exports rose by
28 percent. Of all auto imports, 33 percent came from Germany, 32 percent from Japan
and 8.8 percent from the US this August.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17945
Political and International News
October 06: Japanese Prime Minister Taro Aso is scheduled to visit China later October,
holding his first talks with Chinese leaders since taking office in September. Aso will meet
with President Hu Jintao and Premier Wen Jiabao when he attends the Asia-Europe
Meeting in Beijing on October 24 and 25. During his visit, Aso is expected to affirm former
Prime Minister Yasuo Fukuda's goal of improving relations with China and stress the need
to cooperate on the denuclearization of the Korean Peninsula.
http://english.people.com.cn/90001/90776/6509814.html
October 06: Premier Wen Jiabao said, China's financial system is safe amid a deepening
global crisis and the world's fourth-biggest economy may be able to maintain fast growth.
Wen said he had full confidence in China's economic development and stability. The
financial system is sound and safe.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ag1ECpvzG4vI
October 06: Liu Yunshan, a senior official of the Communist Party of China (CPC), called
for more cultural investment in rural areas so that farmers can share the country's cultural
progress. Liu said cultural development in rural areas lagged behind the huge progress
made in the country on the whole.
http://en.ce.cn/National/Politics/200810/06/t20081006_16983080.shtml
October 06: UN Under-Secretary-General Sha Zukang has said that three decades after
the advent of its reforms and opening up, China has become another engine driving the
world economy in addition to the US. He also added that China has enjoyed 30 years of
continuous and rapid development, expanding its economic aggregate by nearly 15 times
and its foreign trade more than 100 times, a sustained fast growth rare in modern world
history.
http://www.chinadaily.com.cn/bizchina/2008-10/06/content_7080644.htm
October 05: Chen Qiufa, director of Chinese Atomic Energy Agency said the international
community has to pay greater attention to the challenges facing the rapidly growing civil
nuclear projects. He added the exploitation of nuclear power, however, poses many
challenges, such as the safety of nuclear power plant, reliable supply of nuclear fuel, and
safe disposal of nuclear waste.
http://english.people.com.cn/90001/90776/90883/6509674.html
Economy
October 06: Judged from a western perspective, China has an enviable problem. After
expanding by 12 percent in 2007, the Chinese economy will grow more slowly in 2009,
perhaps by around 8 percent. A moderate reduction in growth would hardly spell disaster.
But for all the talk of de-coupling, the Chinese economy still depends on how the US,
Europe and Japan fare. The longer the financial turmoil lasts in the US and Europe, the
more severe will be any economic downturn.
http://www.ft.com/asiapacific/china
October 06: China may use targeted measures and interest-rate cuts to revive a sagging
property market and sustain economic growth. Expectations are building for the
government to introduce policies supporting lower-income home buyers and a selective
easing of credit for some developers. China can't afford a housing-market slump because
the property sector accounts for a quarter of fixed-asset investment and 10 percent of
employment.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acwh0TZWhod8
October 06: People's Bank of China Gov. Zhou Xiaochuan said that the promotion of
currency stability, employment and consumption are three areas of importance in
monetary policy making and in the implementation of macroeconomic controls.
http://online.wsj.com/article/BT-CO-20081006-701351search.html?KEYWORDS=China&COLLECTION=autowire/6month
October 05: China's National Bureau of Statistics (NBS) under new chief Ma Jiantang is
likely to reform its statistical system to ensure the authenticity and timeliness of data and
help the government to better cope with the uncertainties of outside economic influences.
After his inauguration as the NBS director, Ma has said he felt pressure, but was confident
of taking over "the baton of statistical reform and development."
http://www.chinadaily.com.cn/china/2008-10/05/content_7077642.htm
Foreign Investments
October 06: Asian Coast Development Limited, a Canada-based luxury resort developer,
is considering an initial public offering in Hong Kong by 2010. ACDL plans to raise as
much as $1 billion from the offering, but it is waiting for the opportune time to launch the
IPO considering the current market conditions. Hong Kong was chosen to be on the top of
the IPO site list as it has a huge market potential.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17919
October 06: Ping An Insurance (Group) Company of China, Limited plans to make
provisions for impairment in its investment in Fortis shares. Sheng Ruisheng, spokesman
for Ping An, said that the company has invested $3.48 billion in Fortis shares since
November 2007. After making of the impairment provisions, the company still maintains
sufficient capital adequacy and solid financial position, with payment ability of over 300
percent.
http://news.xinhuanet.com/english/2008-10/05/content_10152696.htm
Food/Consumer Product Safety Issues
October 06: Hong Kong said that its health inspectors had found two Cadbury chocolate
products containing considerably more of the industrial chemical melamine than the city’s
legal limit, in the growing scandal over tainted food made in China. In another blow to
China’s food industry, Iran banned imports of all dairy products from China because of the
contamination concerns.
http://www.nytimes.com/2008/10/06/world/asia/06milk.html?_r=1&oref=slogin
October 06: FDA issues interim safety, risk assessment of Melamine in foods.
http://www.chinatradeextra.com/
October 05: The Slovak veterinary and food authority has found a Chinese milk drink
containing hazardous amounts of the substance melamine, which has killed four children
and sickened 53,000 in China. Melamine was found in 27 cans of the milk drink.
http://online.wsj.com/article/BT-CO-20081003-712945search.html?KEYWORDS=China&COLLECTION=autowire/6month
October 03: Food and Drug Administration said that no amount of the industrial chemical
melamine would be acceptable in infant formula, but said it's unlikely to cause harm at
very low levels if it were in other types of food. The FDA had set a level at which it believes
melamine won't cause any health problems in humans amid concerns about melaminetainted milk products in China. It's believed the chemical was deliberately added to certain
dry milk products in order to artificially boost the protein content.
http://online.wsj.com/article/BT-CO-20081003-711996search.html?KEYWORDS=China&COLLECTION=autowire/6month
Energy & Environment
October 06: China National Offshore Oil Company Limited had found a new oil and gas
well in east China's Bohai Bay. The well, named Bozhong (BZ) 35-2-2 is located to the
east of the Yellow River mouth. The well was drilled to a total depth of 3,235 meters.
During the drill stem test, the well flowed at an average rate of 560 barrels of oil per day.
http://www.china.org.cn/business/2008-10/06/content_16572134.htm
Insurance & Finance
October 06: China Merchants Bank Company, the country's sixth-largest lender in terms
of assets, has completed the acquisition of 53.12 percent stake in Hong Kong-based
medium-sized lender Wing Lung Bank. The acquisition, which involves HK$19.3 billion in
total, was completed on September 30.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17920
October 06: China's central bank plans to sell up to $11.7 billion worth of one-year bills in
its regular open market operation. The planned offering is smaller than the $14.61 billion
worth of one-year bills it sold September 23 at a yield of 4.00 percent.
http://online.wsj.com/article/BT-CO-20081006-702037search.html?KEYWORDS=China&COLLECTION=autowire/6month
October 06: China's national pension fund, the National Social Security Fund (NSSF),
plans to invest in the China Development Bank as part of its efforts to diversify investment
portfolio. The investment will make NSSF the third shareholder of the policy bank,
following the Ministry of Finance and the Central Huijin, an investment arm of China
Investment Corporation.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17923
October 06: Legend Holdings, parent company of the world's fourth-largest PC maker
Lenovo Group Limited, has won approval from China's top economic planner, the National
Development and Reform Commission, to issue $292.24 million worth of corporate bonds.
Coupon rate of the seven-year bonds will be finalized during the process of book building.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17924
October 06: China Southern Airlines Company, the country's largest air carrier by fleet
size, will sell $293 million worth of one-year bills October 13. It will use 40 percent of the
proceeds from the sale to replenish its working capital and the remainder to repay bank
loans.
http://online.wsj.com/article/BT-CO-20081006-700076search.html?KEYWORDS=China&COLLECTION=autowire/6month
October 06: Hong Kong-based investment company China Oil Resources Holdings
Limited, formerly known as Wing Shing International Holdings Limited, has agreed to
acquire a 43 percent stake in Profit Success Industries Limited, paint, resin, dye and
thinner wholesaler, from Mr. Chan Wan Kim, for HK$63 million.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17928
October 05: Hong Kong Monetary Authority Chief Executive Joseph Yam said the city's
de facto central bank has been in close contact with regional central banks since last week
due to the US financial crisis. "In a situation where the U.S. financial crisis is spreading
around the world, we've boosted contact with other central banks, particularly with the
People's Bank of China, to discuss issues related to the crisis," Yam said.
http://online.wsj.com/article/BT-CO-20081005-703840search.html?KEYWORDS=China&COLLECTION=autowire/6month
October 05: People's Bank of China will resume the approval process for companies to
issue medium-term notes, to help corporate funding. The central bank said listed
companies are allowed to use proceeds from medium-term notes to fund share buybacks.
PBOC also said priority of medium-term notes approval will be given to listed companies
with large presence on China's stock exchanges and infrastructure-related companies,
such as oil and coal producers and power generation companies.
http://online.wsj.com/article/BT-CO-20081005-703579search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17921
October 05: China's securities regulator would begin a trial program for securities firms to
engage in margin lending and short selling. It said that brokerages allowed to participate in
the program would be based on their net capital size and risk capabilities, among other
criteria. The trial program would be expanded at some point, it said. There has been
increasing speculation among traders and analysts in recent weeks that China would likely
allow margin lending and short selling soon, sending brokerage shares higher on hopes
that the new business would improve fee income.
http://online.wsj.com/article/BT-CO-20081005-702696search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.china-briefing.com/news/2008/10/06/china-to-launch-securities-margintrading.html
October 05: China previously cut interest rates and CIC took stakes in key banks to
support their shares. China may also allow investors to sell bonds that can be swapped for
shares to contain equity sale and stock market decline, and may use brokerages as
intermediaries to sell their shares rather than via secondary market in order to ease
pressure on share prices.
http://www.rgemonitor.com/26/China
October 05: China’s commercial banks have felt the pain for loan business since a reform
of the shareholding system began under fairly good economic conditions. Now, as
economic growth slows, factors such as changing liquidity positions, fluctuating equity
prices, loan quality downgrades and policy adjustments may bring adverse effects. All this
change has given commercial banks a full-scale test, especially in terms of incentive
mechanisms, risk control maintenance and income growth styles.
http://piaohaoreport.sampasite.com/china-financial-markets/blog/US-slowdown-Chineseslowdown.htm
October 03: China's central bank would maintain the stability of the country's financial
markets and that it is prepared to deal with any impact the U.S.'s financial troubles have
on China. The People's Bank of China said that the country's economic fundamentals
have not changed and the potential growth in the domestic economy remains large. The
PBOC's statement came as US lawmakers approved the financial market rescue bill in the
US that had been disputed for weeks and that had kept global financial markets in turmoil.
http://online.wsj.com/article/BT-CO-20081003-713784search.html?KEYWORDS=China&COLLECTION=autowire/6month
Science & Technology
October 06: Hong Kong is boosting its wireless broadband services with an invitation for
applications for bidding on its new radio spectrum services. Hong Kong's Office of the
Telecommunications Authority is inviting applications for Hong Kong's Broadband Wireless
Access licenses.
http://www.chinatechnews.com/2008/10/06/7670-hong-kong-aims-to-be-wireless-city-withnew-radio-spectrum-bids/
October 06: China Mobile has been jointly implementing tests with relevant operators to
set up TD-SCDMA long term evolution model networks in 2010. The company will develop
equipment norms for TD-LTE products to ensure the full use of TD-SCDMA resources and
resolve the problems that are related to the application of TD-LTE.
http://www.chinatechnews.com/2008/10/06/7664-china-mobile-plans-to-build-td-lte-modelnetworks-in-2010/
October 05: Chinese scientists successfully directed the accompanying satellite BX-1 to
begin circling the Shenzhou-7 spaceship, on an elliptical track of 4 kilometers multiplying 8
kilometers. It is the first time that China has succeeded in maneuvering this kind of space
orbiting, official sources say. The accompanying satellite began orbiting the orbital capsule
of the Shenzhou-7, under the close monitoring and precise control of the Beijing
Aerospace Control Center.
http://news.xinhuanet.com/english/2008-10/05/content_10152706.htm
Internet
October 06: The first batch of 10,000 contracted customers of Chinese search engine
Baidu.com’s e-commerce platform is now able to enjoy the company's C2C services.
Compared with rival Chinese C2C platform Taobao.com, the platform of Baidu is a bit
simpler, which follows the consistent simple and direct style of the website. Operated
under the domain name of mall.baidu.com, the platform will eventually be independent
with its own domain name.
http://www.chinatechnews.com/2008/10/06/7668-baidus-c2c-baifubao-e-commerceplatform-opened/
Cross - Straits
October 06: Chen Yunlin, China's chief negotiator for Taiwan, probably will visit the island
late October or early November. The two sides are ready to hold preparatory talks for the
visit by Chen, chairman of China's Association for Relations Across the Taiwan Strait.
Chen signed a deal with Chiang in Beijing in June to start regular weekend charter flights
between China and Taiwan.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFwV03OZdWsg
October 05: Beijing has denounced US plans to sell Taiwan more than $6 billion worth of
weapons as a “crude interference” in China’s internal affair that would harm its national
security and put obstacles in the way of peace. However, China’s foreign ministry stopped
short of threatening any retaliation over the arms package, Washington’s biggest for
Taiwan in more than 15 years, saying only that Beijing “reserved the right” to respond
further.
http://www.ft.com/asiapacific/china
http://www.nytimes.com/2008/10/05/world/asia/05taiwan.html
General News
October 06: Hebei Iron & Steel Group, Shougang Corporation and two other steelmakers
in northern China will cut output by 20 percent in October because of weak demand. The
four mills, which include Shandong Iron & Steel Group and Anyang Iron & Steel Group, will
also slow the purchase of raw materials and fuel and use inventories.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKPKJKXGU2Y0
October 05: Beijing registered an increase of 35 percent tourists during the past weeklong National Day holiday, many of whom visited the Olympic venues. At least 8.02 million
people made tours in Beijing between September 29 and October 05, including 2.35
million incoming visitors. The city harvested $767 million in tourist revenue, up 27 percent
as against the National Day holidays in 2007.
http://news.xinhuanet.com/english/2008-10/05/content_10152692.htm
October 04: South China's Guangxi Zhuang Autonomous Region plans to turn its Bose
City into an aluminum industrial base in the country or even in Asia by 2010. The region
plans to realize an annual output value of about $4.7 billion from the aluminum industry in
Bose by 2010. By then, Bose city will produce 5 million tons of alumina worth $2.92 billion
a year, and 2 million tons of electrolytic aluminum and aluminum alloy with an output value
of $5.84 billion.
http://english.people.com.cn/90001/90776/90884/6509584.html
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