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General News
US Chamber China Trade & Investment News
July 21, 2008
Trade
July 21: China plans to build a coal trade center in Beijing in the coming one or two years,
in order to form a completely new coal market system with a leading trade platform of
national coal trade center, an assisting trade platform of regional coal trade center and a
complementary market of regional coal market.
http://steelguru.com/news/index/2008/07/21/NTU1Mjg
percent3D/China_to_build_coal_trade_center_in_Beijing.html
July 21: WTO panel rules against China in auto parts cases.
http://chinatradeextra.com/
July 21: ITC makes affirmative final injury determination in Chinese sacks case.
http://chinatradeextra.com/
July 21: CBO lays out effects of China currency value on US imports.
http://chinatradeextra.com/
July 18: Net exports now subtracting from GDP, as import growth outstrips export growth
on more expensive commodity imports. Export growth still remains robust but trade
surplus has plateaued. Processing trade is being most affected by higher transport costs
and RMB appreciation. Exports to EU have far outpaced those to the US in 2007-2008, in
part because of real depreciation of the RMB against the pound.
http://www.rgemonitor.com/26/China
IPR
July 21: US Customs and Border Protection Office (CBP) of International Trade statistics
highlights, China continues to dominate as the top source country for IPRs infringing
goods. In mid-fiscal year 2008, China accounted for 85 percent of all IPR seizures by
value, or $96.7 million, compared to $89.1 million or 81 percent at mid-fiscal year 2007.
http://www.ag-ip-news.com/GetArticle.asp?Art_ID=6111&lang=en
Political and International News
July 21: Russian Prime Minister Vladimir Putin is to attend the opening ceremony of the
Beijing Olympics. Putin, formerly Russia's president, joins a host of world leaders including
President Bush and French President Nicolas Sarkozy who have confirmed their
participation in the August 08 ceremony. Leaders are expected to hold talks during the
August 08-24 Games.
http://www.washingtonpost.com/wpdyn/content/article/2008/07/21/AR2008072100207.html
July 21: China and Russia have resolved a 40-year-old dispute over their border, in the
latest sign of warming relations between the once bitter rivals. Russia will return 67 square
miles of territory on the northeast border with China. An agreement will be signed during
Russian Foreign Minister Sergey Lavrov's visit to Beijing. Russia will return Yinlong Island
(known as Tarabarov Island in Russian) and half of Heixiazi Island (Bolshoi Ussuriysky) to
China.
http://www.washingtonpost.com/wp-
dyn/content/article/2008/07/21/AR2008072100075.html
July 21: To ensure a successful Olympics, China has cracked down on all manner of free
speech and association. Now, Hong Kong is following the mainland's lead. Organizers
announced a ban on banners, leaflets, clothing and accessories carrying "political" or
"discriminatory" slogans from the equestrian events to be held in the territory.
http://online.wsj.com/article/SB121658222575568445search.html?KEYWORDS=China&COLLECTION=wsjie/6month
July 21: China's largest city and the host of a dozen Olympic football matches started
tightening security over the weekend at airports and train stations. Surveillance systems
also are being installed on Shanghai's subway trains. The measures go along with
increased security in Beijing, where the Olympic Games will begin from August 08.
http://www.washingtonpost.com/wpdyn/content/article/2008/07/21/AR2008072100078.html
July 20: The Communist Party of Great Britain launched a campaign in support of China
amidst the China-bashing craze among western media. The campaign dubbed "Hands off
China" is aimed to defend China's sovereignty and territorial integrity, support the "One
China" principle and the country's just stands on issues of its vital national interest such as
Taiwan and Tibet.
http://english.people.com.cn/90001/90776/6454004.html
July 20: Chinese Assistant Foreign Minister Liu Jieyi reported that related parties should
enhance diplomatic efforts and show flexibility in order to find a negotiated solution to the
Iranian nuclear issue. "Currently there is a rare opportunity for promoting the resumption of
negotiations on the Iranian nuclear issue."
http://english.people.com.cn/90001/90776/6454003.html
July 19: Wang Jiarui, a senior official of the Communist Party of China (CPC), met with
senior party officials from the Democratic Republic of Congo and Rwanda separately. The
CPC is willing to enhance exchanges with the People's Party for Reconstruction and
Democracy (PPRD) of the Democratic Republic of Congo in various fields and make the
cooperation achieve fruitful results.
http://english.people.com.cn/90001/90776/6454000.html
National People's Congress
July 19: The General Office of the State Council, China's Cabinet, has expanded its
number of set staff and organization framework to reinforce its capacity to deal with
emergencies and supervision work. The number of bureaux will increase from six to nine
while the staff number will reach 519, an increase of 300. Four new bureaux were added.
They include the emergency management office, the supervision office, the electronic
government office and the finance office.
http://news.xinhuanet.com/english/2008-07/19/content_8573994.htm
July 18: He Guoqiang, a member of the Standing Committee of the CPC Central
Committee Political Bureau, has pledged to further improve the Party's inspection system
and innovate the inspection methods, to strengthen supervision over leading officials at all
levels.
http://news.xinhuanet.com/english/2008-07/18/content_8570980.htm
Economy
July 21: Chinese Premier Wen Jiabao has reported that unswerving confidence and
arduous work are needed to achieve the goals of a steady and relatively fast economic
development and control of soaring consumer prices in the country. Wen made the
remarks in Guangdong Province - the country's reform and opening-up forerunner, for
research on current domestic economic situation.
http://www.chinadaily.com.cn/china/2008-07/21/content_6862512.htm
July 21: National Development and Reform Commission figures showed that property
prices in 70 major Chinese cities rose 8.2 percent year-on-year in June 2008, growth
falling 1 percentage point from May 2008. The slowing trend in the sector can be attributed
to the government's tightening of lending rates and mortgage requirements for controlling
excessive construction, curbing excessive investments, and reining in surging property
prices.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16468
July 18: Consensus expects slower GDP growth in 2008 and in 2009. IMF and ADB
expect GDP growth to be 10 percent in 2008. With 24 million people entering the
workforce each year, China needs a growth rate of at least 9 percent. China's twin threat
of worsening inflation and slowing export growth, both of which are surmountable, but
concurrent reforms (especially in the capital market) will ensure adjustments in the
country’s economic structure for long-term progress.
http://www.rgemonitor.com/26/China
Foreign Investments
July 21: Swallowfield Plc, a UK-based household goods supplier and contract
manufacturer, has finalized a deal with Chinese toiletries supplier Shanghai Jahwa United
Company Limited, in an effort to enhance its presence in China. Swallowfield takes 10
percent stake in the new joint venture and has a seat on the board, said the British
company
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16463
July 21: China Distance Education Holdings, largest provider of online professional
education services in the country, launched a US initial public offering of American
depository shares. The Company is scheduled to list on the New York Stock Exchange.
The company may raise as much as $96.25 million from the New York IPO that may be
expanded to $110 million because of a 15 percent over-allotment option.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16459
July 21: HSBC Holdings Plc, Europe's largest bank, has held talks with China Investment
Corporation to attract investment from the Chinese sovereign fund. HSBC Chairman
Stephen Green has met officials from the Chinese fund, also known as CIC, in recent
months over discussions that included the possibility of CIC buying HSBC's shares in the
open market.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZbuaougTWf8
July 21: China will further strengthen management of foreign investment projects and
check foreign exchange inflow in a bid to better control it. The move will also safeguard the
country's economic safety, protect ecological environment, optimize development and
reform mechanism, and prevent industrial monopolization.
http://www.chinadaily.com.cn/bizchina/2008-07/21/content_6863661.htm
July 18: The People Republic of China’s fragile financial system and rigid economic
structure mean that shocks created by sudden changes in the direction of cross-border
capital flows can severely destabilize its economy. Capital controls are necessary to
maintain independence of monetary policy until the PRC is still not ready to adopt a
floating exchange rate regime.
http://www.rgemonitor.com/26/China
July 18: China's business and commercial dispatched institutions overseas should play an
active role in promoting economic and trade cooperation between China and the residing
countries. Vice Premier Wang Qishan made the remarks when meeting with the country's
counselors of these dispatched institutions, saying the institutions and agencies should
take opportunity of economic globalization to deal with various challenges and new
problems.
http://news.xinhuanet.com/english/2008-07/18/content_8570985.htm
Energy & Environment
July 21: Hainan Yedao Company Limited, a Chinese beverages manufacturer, plans to
build an ethanol fuel plant with annual capacity of 100,000 tons. The plant will use cassava
as feedstock; use of food grains for producing fuel is banned. The project, pending
approval by the government, is expected to involve an investment of $50.89 million.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16467
July 21: Clear skies, light traffic and silence at some of the city's biggest factories marked
the Beijing's last-ditch efforts to provide clean air for the Summer Olympics. Plenty of other
cities have taken steps to clean up the air and ease congestion before past Olympic
Games. However, experts say this is the first time that such drastic efforts, affecting such
a large part of the country, have ever been undertaken.
http://online.wsj.com/article/SB121658425327068585search.html?KEYWORDS=China&COLLECTION=wsjie/6month
July 21: China Petroleum & Chemical Corporation, Asia's largest refiner, may boost the
crude-oil processing capacity of its refinery in Guangdong province by 48 percent to meet
rising demand from the nation's manufacturing hub. Sinopec, as China Petroleum is
known, may increase the annual capacity of its Maoming refinery to 20 million metric tons
by 2012, or 400,000 barrels a day, from 13.5 million tons.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afet0cBDcpLw
July 21: China's power producers were feeling the pinch of soaring coal prices with more
and more companies starting to report huge losses in Jan-Jun 2008. Of the 31 power
producers who had released profit forecasts for Jan-Jun 2008, 19 expected losses and six
forecast profit decrease.
http://www.chinadaily.com.cn/bizchina/2008-07/21/content_6863170.htm
July 21: Half of Beijing's drivers left their cars at home and took public transportation
instead on July 21, the first workday under new restrictions meant to clear this city's
notoriously polluted skies before August 08 Olympics. Under a two-month plan that started
on July 20, half of the capital's 3.3 million cars will be removed from city streets on
alternate days, depending on whether the license plate ends in an odd or even number.
http://www.washingtonpost.com/wpdyn/content/article/2008/07/21/AR2008072100269.html
July 21: China National Offshore Oil Corporation's said profit climbed 35 percent in JanJun 2008 as oil prices surged and crude production increased. Net income rose to $2.78
billion and sales gained 48 percent to $15.56 billion. Oil and natural- gas production
increased 2.4 percent to 20.7 million metric tons of oil equivalent.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aweneuzTiX9U
July 21: State Grid Corporation of China, which supplies power to more than 1 billion
people in the country, said thermal-coal stockpiles fell 8 percent over two weeks,
potentially worsening a nation wide electricity shortage. The coal inventories at power
plants supplying electricity to State Grid dropped to 31.83 million metric tons as of July 20
2008 from 34.64 million tons previously. China's power shortage has reached 14,000
megawatts.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5_RvvMUSqiI
July 20: A wind power plant has become operational in suburban Beijing, considered a
major step towards making 20 percent of the power supply to the city's Olympic venues
during the games wind-generated. The Guanting Wind Power Plant, beginning operation,
would not only help fulfill Beijing's promise of a "green Olympics", but symbolize the firstever large-scale employment of wind power generation project in the Chinese capital.
http://news.xinhuanet.com/english/2008-07/20/content_8577442.htm
July 18: Changqing oilfield in China's northern Ordos Basin is targeting production of 25
million tons of crude oil and 32 billion cubic meters of natural gas by 2015. This rise in
production of the country's third largest oil field guarantees energy supply to areas
including Beijing. Daqing, the country's leading oilfield, would further increase production
to ease domestic shortage. It aimed to produce around 40 million tons of crude annually in
the next decade.
http://news.xinhuanet.com/english/2008-07/18/content_8570726.htm
Insurance & Finance
July 21: China-based Tongwei Company Limited, aquatic feeds provider, is planning to
raise approximately $199 million through a share placement. The company plans to invite
up to 10 investors, including securities companies and funds, trusts, other financial
institutions, insurance companies and qualified overseas investment institutions.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16462
July 21: Shenzhen Development Bank Company planned to issue subordinated bonds
worth up to $219.57 million on the interbank bond market with a maturity of 10 years. The
company disclosed that the subordinated bonds would consist of 10-year fixed-rate bonds,
as well as 10-year floating-rate bonds.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16458
July 21: China's banking regulators have urged financial institutions to speed up
innovations and mechanism reform in rural areas to make credit more accessible to
farmers. The country had made progress at extending financial services in rural areas,
including the establishment of new types of financial institutions and development of micro
loans.
http://www.chinadaily.com.cn/bizchina/2008-07/21/content_6863535.htm
July 21: China's State-owned Assets Supervision and Administration Commission will
group about 20 of its 149 state enterprises under a single asset-management company.
Companies that are part of the plan will be wholly owned subsidiaries of China Chengtong
Group and are active in industries ranging from logistics to trade. China Chengtong is one
of two asset management corporations of the commission, known as Sasac.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFqfLsfyTP7s
July 21: Bad loan ratio in China's commercial banks has reduced to 6.1 percent as of
June 30 2008 amid the sector's efforts to enhance risk control. The figure was 0.62
percentage points lower compared with that at the beginning of 2008. Major commercial
banks had combined bad loans of $172.48 billion by the end of June, $3.6 billion less than
the beginning of 2008.
http://www.chinadaily.com.cn/bizchina/2008-07/21/content_6863084.htm
July 21: China's bank assets totaled $8.5 trillion as at the end of June 2008, up 19 percent
from 2007. Liabilities at Chinese banks stood at $7.96 trillion at end-June 2008, up 18.4
percent from the same period 2007. Non-performing loans at China's commercial banks
totaled $181.57 billion at the end of June 2008, down $3.79 billion from the beginning of
2008.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ayWtDoYJcOvM
July 21: Bank of Dalian, formally known as Dalian City Commercial Bank, has opened a
branch in Beijing, capital of China, the second branch outside its headquarters. It is the
first domestic city commercial bank in Northeast China to launch business unit in the
country's capital. Bank of Dalian won regulatory approval from the China Banking
Regulatory Commission for a branch in Beijing in April 2008.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16471
July 18: China's securities regulator would launch on-the-spot inspection and monitoring
on fund sales institutions in a bid to standardize fund transaction activities. The 36
dispatched institutions under the China Securities Regulatory Commission (CSRC) will
focus their inspection on commercial banks, security companies and fund management
companies.
http://news.xinhuanet.com/english/2008-07/18/content_8571098.htm
July 18: CSI 300's slide gave it the dubious distinction of being the worst performing
equity market in 2008, outstripping Vietnam. Many retail investors have retreated,
returning to deposits despite negative real interest rates. Perception that government will
not allow Shanghai index to fall below 3000 may have buoyed market sentiment and has
kept investors in the market.
http://www.rgemonitor.com/26/China
Science & Technology
July 21: Xi Guohua, vice minister of the Ministry of Industry and Information Technology of
China, says that China will issue 3G mobile licenses and certificates after the restructuring
of the six big Chinese telecommunications operators. The reorganization is expected to be
completed in about six months. At present, there are three 3G standards: TD-SCDMA,
WCDMA and CDMA2000.
http://www.chinatechnews.com/2008/07/21/7018-3g-licenses-issued-after-restructuring-oftelecom-operators/
Internet
July 21: Baofeng.com has recently launched its Storm Codec 2008 version, marking the
company's entry into the Internet video sector in China. The new Storm Codec 2008
covers nearly all video broadcast service models, including local broadcasts, online
broadcasts, online orders and high-definition orders. It has been completely upgraded to
be one of the biggest video broadcast platforms in China.
http://www.chinatechnews.com/2008/07/21/7014-baofengcom-shifts-to-internet-videosector/
Defense & Exports Control
July 21: Chinese and Australian military leaders convened the 11th Strategic Defense
Consultation, exchanging views on international and regional security issues of common
concern and bilateral military relations.
http://english.people.com.cn/90001/90776/90883/6454202.html
Cross - Straits
July 21: Soft-World International Corporation, a Taiwanese online games developer,
intends to launch three new online games in mainland China in the second half of 2008.
The Taiwanese company is targeting operating revenues of up to $32.89 million in 2008
from mainland China, compared to $7.9 million generated in 2007.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16464
July 21: Green Energy Technology Incorporation, the solar-wafer division of Taiwan's
largest home-appliances maker, plans to spend up to $30 million to build a factory in
China's Inner Mongolia region to boost capacity. The company expects to begin
construction of the new solar wafer-making plant by the end 2008 with production to start
by the end of the second quarter 2009.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2J3gr_t54Ek
July 18: Taiwan's cabinet will remove restrictions on investments in China by the island's
largest companies and will raise investment ceilings for smaller firms. The moves are in
line with the Kuomintang government's campaign pledge to boost the island's economy by
improving ties with China. According to Yiin Chii-min, Minister of Economic Affairs, "The
previous restrictions have hurt Taiwan's competitiveness" and easing them would allow
multinational companies to team up with local companies in investing in China.
http://online.wsj.com/article/SB121632614997663019search.html?KEYWORDS=China&COLLECTION=wsjie/6month
General News
July 21: The ongoing Chongqing Economic and Trade Fair appears to have been a huge
success. The city and its enterprises have already signed 32 agreements with 25
transnational companies for aggregate investments of $10.40 billion in diverse areas,
including chemicals, automobiles, real estate, and IT. The MNCs, which signed
agreements, include Honeywell, IBM, AIG, MacDonald's, Enfis Group Plc, and others.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16465
July 21: Beijing opened three new subway lines to facilitate better transportation during
the upcoming Olympics. The opening of the new metro lines represents yet another effort
to combat the notoriously polluted air of the capital before the Games start in August 2008.
The city has already enacted numerous efforts as to ease traffic issues.
http://www.china-briefing.com/news/2008/07/21/beijing-opens-subway-lines-inpreparation-for-olympics.html
July 21: China's power steering systems manufacturer Jingzhou Henglong Automotive
Parts Company Limited, mainly funded by Hong Kong Great Genesis Group, has started
supplying steering systems to Dongfeng Peugeot Citroen Automobile Company Limited, a
Sino-French auto joint venture. Jingzhou Henglong will supply 3,000 units of power
steering systems per month for Dongfeng Peugeot 206 to the joint venture.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16470
July 21: China Telecom Corporation added a record number of high-speed Internet users
in June 2008, helping the company counter a loss in telephone subscribers. China
Telecom gained 890,000 broadband customers for 40 million at the end of June 2008.
That was the highest number of monthly additions since the carrier started publishing the
data in 2007.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aC7Yrcu1gWEs
July 21: Aluminum Corporation of China Limited has halted some production at two
ventures in the northern province of Shanxi because of a power shortage. Shanxi Huaze
Aluminum & Power Company and Shanxi Huasheng Aluminum Company started to cut
output from June 26 2008. Huaze had halted 25 percent of its 280,000-ton annual capacity
as of June 26 and Huasheng had suspended 22 percent of its 220,000-ton capacity.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abqtPUF9sXVQ
July 18: China Steel Resources Holding Company will build two steel factories with a
combined capacity of 3 million tons per annum in Indonesia. The construction of the steel
plants will be carried out in two stages within a span of five years with the first plant to be
built in Banjarmasin, South Kalimantan.
http://news.xinhuanet.com/english/2008-07/18/content_8570964.htm
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