Trade
Congressional Issues
IPR
Political and
International News
Economy
Healthcare
Foreign Investments
Energy & Environment
Insurance & Finance
Media
Internet
Cross - Straits
General News
US Chamber China Trade & Investment News
April 29, 2008
Trade
April 29: Three American business groups are appealing to Washington and Beijing to
promote free trade and reject protectionism amid slowing US economic growth and a
widening trade gap with China. In an annual report on business conditions, American
Chambers of Commerce for China, Shanghai and South China rejected calls by some in
US for punitive measures over Beijing's trade surplus and currency controls. They also
called on Beijing to repeal rules that limit foreign investment and competition.
The New York Times
April 29: China may face more trade frictions with its partners in 2008, said Li Ling,
director of Bureau of Trade for Import and Export with the Ministry of Commerce at the 6
Annual Conference of China's Import and Export Enterprises. China's enterprises are
encouraged to coordinate with the government, master international trade rules and
strengthen self- discipline and internal control mechanisms, while improving qualities and
value-added.
Trading Markets
April 29: The growth of bilateral trade between Shanghai and US slowed down to 12
percent in the first quarter of 2008, due to US sub prime mortgage crisis and the
accelerated appreciation of Chinese currency against US dollars. The imports and exports
between Shanghai and US reached $23.42 billion in the first quarter, 11.9 percent less
than the average level of Shanghai's foreign trade in the same period.
China Knowledge
April 29: Chinese Premier Wen Jiabao and the European Union Commission President
Jose Manuel Barroso announced the start-up of Sino-EU high-level economic and trade
dialogue on April 25 at a press conference in Beijing. During a series of agreements have
been reached by the two sides on issues such as continuing to boost Sino-EU
comprehensive strategic partnership, maintaining high-level contacts and consultations,
expanding economic and trade cooperation, jointly promoting the Doha round talks
process.
China Knowledge
April 29: China has replaced Brazil to be the largest motorcycle exporter to Argentina,
according to the report of Argentina Industrial Economy Research Institute. It was reported
that the sale of motorcycles rose 42.5 percent to 680,000 units in Argentina last year.
However, the market share of its homemade motorcycles was only 7 percent.
China Knowledge
April 29: Foreign buyers at China's Canton Fair are positive about the competitiveness of
Chinese toys, although average prices have risen by 20 percent over the past year. Toy
makers had been worried that orders might fall sharply this year. In the first two months of
2008, the province's toy exports rose 43.5 percent to 1.79 billion Yuan. Statistics from the
Guangdong Toy Association showed that the province exported 14.7 billion Yuan ($2.1
billion) of toys in 2007.
Xinhua
April 28: Hong Kong Census and Statistics Department announced that the values of
Hong Kong's imports and exports of goods posted year-on-year increases of 7.6 percent
and 6.6 percent respectively in March 2008. The value of total exports of goods in March
rose 7.6 percent to HK$ 222.5 billion, in which re-export value was HK$ 215 billion, up 7.9
percent.
China Knowledge
April 28: The third Expo Central China concluded in Wuhan, capital of central China's
Hubei Province, with business people from 113 countries and regions signing agreements
with six central provinces on projects valued at more than 300 billion Yuan ($42.9 billion).
Minister of Commerce Chen Deming said at the three-day event that China welcomed
business people from around the world to invest in central China and encouraged foreign
investors to take over smaller state-owned enterprises there or to help revitalize them
through taking stakes.
Xinhua
April 28: The China-Africa Enterprises Co-operation Forum (Macao) will be held in May
this year, intended to create business opportunities for the two sides' private enterprises,
according to a press statement released by the Macao Trade and Investment Promotion
Institute (IPIM). The forum, organized by IPIM and China-Africa Business Council, will be
held on May 23, with the main theme of "Business Opportunities and Win-Win Situations".
Xinhua
Congressional Issues
April 29: Congressional steel caucus to hold hearing, introduce bill on Chinese imports
April 30.
China Trade Extra
IPR
April 28: Chinese customs authorities’ uncovered 334 million items involving intellectual
property rights infringement worth 439 million Yuan ($62.71 million) in 2007, the General
Administration of Customs (GAC) said in a white paper. The number and value of items
rose 83 percent and 116 percent respectively year-on-year, according to the White Paper
of Chinese Customs IPR Protection 2007. According to the white paper, counterfeit goods
seized by the GAC were primarily clothes, shoes, bags and cigarettes, and 99.8 percent of
these fake goods were seized en route to export markets.
Xinhua
Political and International News
April 29: Vietnam tightened security ahead of the final international leg of an Olympic
torch relay that has been dogged by protests against China's government. Several police
officers were stationed close to the starting point outside the southern city's 19th century
opera house. In the capital Hanoi, scores of riot police blocked the road in front of the
Chinese Embassy.
The Wall Street Journal; The Wall Street Journal; The New York Times; Washington Post
April 29: The Olympic torch made its first-ever run in North Korea, where the flame was
assured a trip free of the anti-Chinese protests that have marked other legs of the relay.
An attentive and peaceful crowd of thousands watched the start of the relay in Pyongyang,
some waving Chinese flags, and footage from broadcaster APTN showed. The event was
presided over by the head of the country's Parliament, Kim Yong Nam, who often acts as a
ceremonial state leader.
The Wall Street Journal
April 29: Chinese authorities, increasingly worried that a lack of tourism is hurting Tibet's
economy, announced that they plan to let foreign tourists back into the volatile region.
Tibet has been largely shut to outsiders since Lhasa erupted in violence March 14 and
unrest spread to neighboring regions with heavy Tibetan populations.
The Wall Street Journal
April 29: Luxury-goods conglomerate LVMH Moet Hennessy Louis Vuitton SA and some
other French companies are lowering their profiles in China amid local calls for a boycott of
French goods following the Olympic torch's troubled journey through Paris this month.
LVMH fashion label Louis Vuitton has called off a weeklong, 1,250-mile car rally in China.
The Wall Street Journal
April 29: China and other Asian nations that fish off the coast of Somalia should take part
in a proposed UN-backed force to combat maritime piracy, Spanish Prime Minister Jose
Luis Rodriguez Zapatero said. "Countries like China, Japan, South Korea and France that
are fishing in that area, which has become especially dangerous, should take part in a joint
force that guarantees safety," he told.
The Wall Street Journal
April 29: The Olympic torch's return to Chinese soil this week will at last give Beijing the
opportunity to host the relay on its own terms, after a controversial global tour that saw the
flame's progress hounded by pro-Tibet protesters. In Hong Kong, one of only two cities in
China where freedom of speech and assembly are protected, members of the pro-Beijing
business and entertainment establishments want to whip up a patriotic outpouring by
organizing a "dress red day" to welcome the torch on May 02.
Financial Times; The New York Times
April 29: The foreign minister of the Democratic People's Republic of Korea said his
country supported the measures China had taken in Tibet to safeguard social stability
there. The visiting DPRK Foreign Minister, Pak Ui-chun, made the remarks when meeting
with Chinese Vice President Xi Jinping. Pak said the DPRK valued its friendship with
China and would "push forward the traditional and cooperative relations according to the
demands of the situation".
Xinhua
April 29: French supermarket chain Carrefour and its employees regretted over the
disruption of the Beijing Olympic torch relay in Paris and fully supported the Olympics, a
senior official said. "We and all our employees feel regretful about what happened in Paris
and support the Beijing Olympics 100 percent," said Gean LucLhuillier, Carrefour China's
vice president, at a press conference in Urumqi.
Xinhua
April 29: Former Japanese Prime Minister Yasuhiro Nakasone told a regional forum, that
China, Japan and the Republic of Korea must spare no efforts to pursue peace and
friendship. The three nations should work hand-in-hand to increase Asia's voice in world
affairs and realize cooperation, he told the Third Session of the Northeast Trilateral Forum.
Xinhua
April 28: State Councilor Meng Jianzhu, who is also the head of the Public Security
Ministry, met with visiting German Federal Minister of the Interior Wolfgang Schaeuble,
agreeing to further bilateral cooperation to deter crime. Meng highlighted the recent
cooperation between China and Germany on public security matters, expressing his hope
that the two nations could strengthen the exchange of intelligence and work more closely
in fields such as Olympics security, anti-terrorism and campaigns against organized crime
and promote bilateral law enforcement cooperation.
Xinhua
Economy
April 29: China will treat curbing inflation as a more important task in the second quarter
than it has thus far, the country's economic planning agency said. China also faces
pressure in ensuring a stable supply of coal for generating electricity, especially since
thermal coal prices aren't fully set by market forces, the National Development and Reform
Commission said in statements issued at a press briefing about China's first-quarter
economic situation.
The Wall Street Journal
April 29: China's average wage of the employed in urban area made 18.3 percent nominal
growth in the first quarter of this year, according to the National Bureau of Statistics. The
growth was 0.5 percentage points higher than the growth in the same period last year.
According to NBS, the urban consumer price index increased 7.8 percent in the first
quarter. The actual growth of staff and workers in the urban area was 9.7 percent allowing
for price rises, which was 5.2 percentage points lower than the same period last year.
Trading Markets
April 28: Macao saw its unemployment rate for the first quarter of 2008 stood at 2.9
percent, slightly decreasing by 0.3 percent year-on-year, according to an employment
survey result released. The survey result, released by Macao's Statistics and Census
Bureau (DSEC), showed that from January to March this year, local unemployed
population was estimated at 9,600, while the unemployment rate of local residents stood at
3.7 percent for the same period.
Xinhua
Healthcare
April 29: Chinese and US officials are currently trading barbs over whether a contaminant
in a batch of a blood-thinning drug is the cause of death of 81 Americans. The furor over
the drug, heparin, is just the latest in a growing string of medical problems traced back to
Chinese food and pharmaceutical exports. This newest case illustrates just how hard it will
be for Beijing to solve these quality problems, even now that the extent of the problem is
much clearer.
The Wall Street Journal; The New York Times
April 29: A deadly outbreak in eastern China of a common childhood illness that rarely
kills people has caught the attention of international health officials. The outbreak of hand,
foot and mouth disease, or HFMD, has killed 20 children in Fuyang, a city in eastern Anhui
province, and has affected some 1,200 children altogether, according to the Anhui
provincial health department.
The Wall Street Journal; The New York Times
Foreign Investments
April 29: Anglo American PLC has sold its entire stake in China Shenhua Energy Co. for
$707 million. The company sold 155.6 million shares at the bottom end of a HK$35.46HK$36.19 range, a discount of 6 percent to Shenhua's share price of HK$37.70.
The Wall Street Journal; The Wall Street Journal
April 29: China's state-owned chemical trader Sinochem Corp has completed a deal to
buy Soco International Plc's Yemen unit for $465 million as it further expands into
upstream oil exploration business. Sinochem bought 100 percent in Soco Yemen Pty Ltd
from London-based Soco International, according to a statement of the State-owned
Assets Supervision and Administration Commission.
Xinhua
April 28: The majority of US based companies are positive about business prospects in
China, with 89 percent characterizing their five-year outlook as optimistic or cautiously
optimistic, according to a survey released by the American Chamber of Commerce. The
findings of the 2008 Business Climate Survey revealed that US companies remained
bullish in China as an investment destination, with many planning to expand.
Xinhua
April 28: The rapid increase in various proxies for hot money inflow probably 70% growth
in FDI during the first quarter suggests that there has been an increase in speculative
inflows disguised as FDI. In fact it is not hard to argue that FDI in China is less, not more
attractive than in the past few years. If this is true and a big chunk of FDI is simply hot
money, it is probably also plausible to argue that hot money disguised as trade has also
increased
significantly.
Sampa
Energy & Environment
April 29: China Coal Energy Co Ltd, the country's second largest coal producer,
announced that it plans to acquire a 100 percent equity interest in China Coal Shanxi
Dongpo Coal Co Ltd for RMB 1.33 billion ($190 million), in a bid to tap the nation's rising
energy demand, sources reported. Shanxi Dongpo, with a registered capital of RMB
718.88 million, originally was a wholly-own subsidiary of China Coal Import & Export Co
Ltd.
China Knowledge
April 29: Indonesia's state-owned power company PLN has inked two engineering
procurement contracts worth $888.4 million with Chinese companies for the constructions
of coal-fired power plants, local reporters said. PLN signed a $642 million worth of contract
on April 25 with China National Machinery Equipment Corp., China National Electric
Equipment and a local firm PT Penta Adi Samudra, for the 700-Megawatt Tanjugn AwarAwar plant in East Java, according to sources.
China Knowledge
April 29: PetroChina Co. agreed to buy Northeast China Inspection and Maintenance
Operations from its parent company for Yuan 43.8 million. The company said it will use
internal resources to fund the acquisition from China National Petroleum Corp. Northeast
China Inspection and Maintenance Operations mainly provides inspection and
maintenance services for refining and chemical operations in northeastern China,
PetroChina said in a statement.
The Wall Street Journal
April 28: China and North Korea pledged to work together to kick-start stalled six-nation
talks on the North's nuclear program, China's state news agency said. Chinese Foreign
Minister Yang Jiechi told Pak Ui Chun, his North Korean counterpart, that "it was in
everyone's interest" to implement the next phase of talks among the two Koreas, China,
Japan, Russia and US., the official news agency reported.
The Wall Street Journal; The New York Times
April 28: Huadian Power International Corporation, the largest Independent Power
Producer in Shandong Province of China, announced that the company has signed a RMB
22 billion worth of coal purchase framework agreement with Shandong province-based
Yanzhou Coal Mining Co, sources reported.
China Knowledge
Insurance & Finance
April 29: China Life reports 60 percent drop in profits for first quarter
China Trade Extra
April 29: New York-based asset management firm BlackRock Inc. said it has opened a
representative office in Beijing in a bid to expand its business in China. BlackRock said in
a statement its Beijing office, will help it to establish local contacts and facilitate market
research. The Chinese government doesn't allow foreign asset-management firms to
operate independently in the country, but they can set up joint ventures with Chinese
companies.
The Wall Street Journal
April 29: PetroChina Co.'s first-quarter net profit fell 31 percent amid refining losses
caused by fuel-price controls in China. The Chinese oil company said its net profit declined
to 28.89 billion Yuan ($4.12 billion) from 42.14 billion Yuan in the year-earlier period.
Revenue rose 42 percent to 259.05 billion Yuan.
The Wall Street Journal
April 29: Bank of China Ltd.'s first-quarter net profit surged 85 percent as interest income
jumped, but the company's charge for US sub prime-related investments also rose. Net
profit rose to Yuan 21.7 billion ($3.1 billion) from Yuan 11.72 billion a year earlier. The
lender, whose exposure to sub prime-mortgage investments is among the largest for
Asia's financial institutions, recorded a charge of $1.5 billion at the end of March for its sub
prime-related investments, up 15 percent from the end of last year.
The Wall Street Journal
April 29: China's central bank said it sold Yuan 105 billion ($15 billion) worth of bills,
bonds and repurchase agreements in its regular open-market operation. The People's
Bank of China sold Yuan 6 billion worth of three-month bills at 3.3978 percent, Yuan 52
billion worth of one-year bills at 4.0583 percent and Yuan 41 billion worth of three-year
bonds at 4.56 percent.
The Wall Street Journal
April 29: Tudou.com, one of China's leading online video websites, raised $57 million in
fresh funds, suggesting that investors remain keen on the sector despite recently issued
rules which have sparked concern about how it will be regulated in the future. The new
fundraising, which closely held Tudou announced, reflects investors' continued strong
interest in China amid a global economic slowdown.
The Wall Street Journal
April 29: Industrial and Commercial Bank of China, the world's biggest bank by market
value, posted a 77 percent jump in first-quarter profit, boosted by widening interest
margins and fee income growth. The lender said the face value of its US sub prime
mortgage-backed securities was $1.2 billion at the end of March, and it booked an
additional impairment provision of $48 million on top of the $400 million in provisions made
in 2007.
Washington Post
April 29: Bank of East Asia, the largest independent local bank in Hong Kong, expects to
be the first overseas bank to issue RMB-denominated debit card on mainland China,
sourced reported. Sources said that BEA has established a bank card data center in
Shenzhen, and plans to issue debit cards on the mainland as early as next month.
China Knowledge
April 29: China's top steel maker Baosteel Group Corp is mulling an initial public offering
in Hong Kong, London or New York to raise approximately RMB 60 billion, to cater to the
world's largest consumer of this metal. The Shanghai-based company is seeking to raise
RMB 30 billion through loans and share sale for the Zhanjiang project in southern China's
Guangdong province.
China Knowledge
April 28: Whirlpool Corp. has formed a joint venture with a Chinese company to produce
appliances for consumers in that country. Refrigerators and washing machines will be
among the major home appliances produced by the new Chinese business created by
Whirlpool and Hisense-Kelon Electrical Holdings Co. Whirlpool described it as a 50-50 joint
venture.
The Wall Street Journal
April 28: Vancouver-based Silvercorp Metals Inc. has agreed to acquire from Yangtze
Gold Ltd. all of the issued shares of Yangtze Mining Ltd., which owns a 95 percent interest
in a Sino-Foreign joint-venture company, Anhui Yangtze Mining Co., which owns the
Gaocheng and Shimentou silver, lead and zinc exploration permits in China's Guangdong
Province. Silvercorp, a silver-mining company focused on China, said the purchase price is
about C$61.95 million and will be paid 40 percent in cash and 60 percent in common
shares of Silvercorp.
The Wall Street Journal
April 28: Chinese government cut stamp tax from 0.3 percent to 0.1 percent and
announced limits on sales of large groups of shares. Stamp tax has no real fundamental
effect but it signals government intentions, and government intentions still main driver of
equity market. Lack of short selling limits arbitrage and difficulty in accessing data
discourages fundamental value strategies.
RGE Monitor
Media
April 29: According to a foreign ministry spokeswoman, US-funded shortwave
broadcaster Radio Free Asia has done "non-objective, unfair and unbalanced
coverage of China for a long time." We know many foreign media reprinted their
stories about Tibet. These incorrect stories have resulted in much criticism from
Chinese people and foreign media professionals. We hope RFA can spread
objective, fair, balanced and true information about China in the future," she said.
She didn't specify the errors.
The Wall Street Journal
Internet
April 29: A new spam message reporting center has been formally set up in Beijing. Under
the commission of the Ministry of Information Industry, the new center, which is called
12321 Online Bad Information and Spam Message Report Acceptance Center, has been
built based on the original Internet email reporting center of the Internet Society of China.
While maintaining the original means of acceptance of complaint reports via telephone call,
the website and email, it has added two more methods of SMS and mobile Internet
reporting.
China Tech News
April 29: Zhengjiaweb.com, a new B2C portal website jointly promoted by China's Ministry
of Science and Technology and Ministry of Commerce, has been formally unveiled. The
website, which is jointly created by China International E-commerce Center, Guangzhou
Zhengjia Network Modern Service Company and Guangzhou Zhengjia Square, is
expected to open formally in June this year.
China Tech News
Cross - Straits
April 29: Nearly 60 years after splitting from China, Taiwan is laying out the red carpet for
tourists from the mainland. Chinese President Hu Jintao, meeting with a Taiwan official on
April 12, gave the green light for a huge increase in mainland visitors. Incoming Taiwanese
President Ma-Ying-jeou, who takes office in May, wants Taiwan to host 1 million Chinese
tourists annually, up from just 80,000 last year.
The Wall Street Journal
April 29: Taiwan's incoming premier has named a pro-independence politician to head its
China policy-making body, raising concerns over the government's vow to improve ties. Liu
Chao-shiuan, who officially takes the premiership next month, defended his decision to ask
Lai Shin-yuan to lead the Mainland Affairs Council, as she agreed with the incoming
government's
policy
on
China.
The
Wall
Street
Journal;
Financial
Times;
General News
April 29: SK Telecom, the largest telecom operator in South Korea, is negotiating with
China Telecom on establishing a joint venture for CDMA services. SK Telecom, which also
owns 6.6 percent of the stake of China Unicom, is in contact with China Telecom in the
hope of setting up a joint venture on CDMA with the latter and gradually expanding to other
businesses.
China Tech News
April 29: PSA Peugeot Citroen plans to build an automotive research and development
center on the Chinese mainland in a bid to cater for local demand amid a car boom in the
world's fastest growing major economy. The new R&D facility will be located in Shanghai,
and will cost 1 billion Yuan ($144 million), the company said in a statement.
Xinhua
April 29: Intel has signed a strategic MOU with Tencent for server and technology
cooperation. According to the MOU, the parties will conduct in-depth cooperation on data
center optimization, particularly on energy efficiency optimization. In addition, they will
cooperate on services for future computing environments, including establishing joint labs
and conducting research on core technology like server virtualization, to meet the growing
need of Tencent.
China Tech News
April 29: China's Coal prices have jumped this year as the demands of China's voracious
economy have outstripped miners' ability to supply the stuff and it seems a good time to
invest in China's coal producers. According to Analysts, Chinese government's worries
about soaring inflation could start eating into coal-mining profits soon, if Beijing moves to
ease coal-price increases even as miners contend with rising costs.
The Wall Street Journal
April 28: Korean Air is eying a bigger China market through cooperation with a leading
Chinese carrier on a free sale, sources citing Yong Chul Kim, general manager of Korean
Air's Shanghai office as saying. "We are in advanced talks with our Chinese partner on
details of the free sale, and we both expect to form a contract by the end of this year,"
Yong said.
China Knowledge
April 28: China hopes the Beijing Olympics will boost and improve its international profile,
but in the meantime it may throw a wrench into the supply chain of US electronics
companies, according to an analyst report released. Analysts at Thomas Weisel Partners
believe the Chinese government will place strict manufacturing and transportation
restrictions in and around Beijing in order to reduce pollution before the Games. That in
turn could affect the supply of electronics parts for companies such as Motorola Inc., they
argue.
The Wall Street Journal
April 28: The Financial Accounting Standards Board and the China Accounting Standards
Committee agreed to increase communication between the two countries. The two
organizations signed a memorandum of understanding, pledging to regularly exchange
information and help facilitate a move into global standards.
The Wall Street Journal
April 28: China Eastern Airlines Corp. it will seek the government's permission to fly
routes in Yunnan that were reassigned to rival carriers after flight disruptions caused by its
pilots. The company was fined CNY1.5 million and some of its routes in the southwestern
province of Yunnan were reassigned to other airlines after pilots on 21 domestic flights
between March 31 and April 1 returned their aircraft to their departure airports, the Civil
Aviation Administration of China said.
The Wall Street Journal
April 28: Nokia Siemens Networks has entered in a deal with Yangquan Coal Industry
(Group) Co., Ltd, a large state-owned coal enterprise in China, to migrate its traditional
fixed network to a Next Generation Network Solution that will provide the company with
new, converged voice and data applications and multi-media services. The NGN solution
from Nokia Siemens Networks will optimize the company's existing fixed network by
replacing the legacy switches, provide an increased number of flexible access nodes, and
implement an Integrated Access Device (IAD), a customer-hosted device that acts as a
media gateway for accessing an IP network that will enable Yangquan Coal Industry
Group to efficiently scale up to the number of users.
The Wall Street Journal
==================================================================
This message and its contents are intended solely for the use of the Asia Task Force addressee. If you have received
this message in error, please notify the sender immediately.
Prepared by SmartAnalyst, Inc., 9 East 38th Street, 12th Floor, New York, NY 10016
feedback@SmartAnalyst.com