Trade
Political and
International News
Economy
Foreign Investments
Food/Consumer Product
Safety Issues
Energy & Environment
Insurance & Finance
Media
Internet
Defence & Exports
Control
Cross - Straits
General News
US Chamber China Trade & Investment News
February 06, 2008
Trade
February 06: US Treasury Secretary Henry Paulson reiterated that he would like
to see more action by China to let the Yuan strengthen, but indicated he believes
dialogue will be more persuasive than legislation. The Yuan has appreciated
against the US dollar since the Chinese government took the currency off a strict
peg in 2005, including a rise of about 4 percent during the past three months.
The Wall Street Journal
February 06: The world's top economic officials meet in Tokyo, they will likely
stand shoulder-to-shoulder to complain about the weak Chinese Yuan. Behind
closed doors, they are much more likely to squabble about over the weak dollar.
The result is that instead of going public with their internal disagreements, the G-7
officials are expected to focus their collective ire on China. Beijing has allowed the
Yuan to rise about 15 percent against the dollar since it first allowed the currency
to move in July 2005. When measured against the currencies of its major trading
partners, the Yuan has climbed only 9 percent.
The Wall Street Journal
February 06: China General Administration of Customs released a report
indicating a sharp rise of 50 percent of China's trade surplus in the year of 2007.
The increase of China's trade surplus has registered a record high. Last year,
exports increased 25.7 percent to $1.2 trillion and imports rose 20 percent to
$955.8 billion, leading the trade surplus to a total of $262.2 billion with a hike of
47.7 percent from that of a year before.
China Knowledge
February 05: China has permitted foreign direct investors to establish fully
operational, 100 percent foreign owned retail and trading companies that can buy
and sell in China, holding their own import-export licenses. Applications are made
at a provincial or municipal level albeit with input from local offices of state-level
authorities. In addition, the five Special Economic Zones in South China have
independent approval authority over this issue.
China Briefing
Political and International News
February 06: The EU-China Friendship Group in the European Parliament sent its
greetings to China, wishing all Chinese citizens a happy New Year. It said that the
Year of the Rat is "a good year," cordially wishing that the year "makes China
more prosperous and assists her to flourish, that her nation is stronger and her
people are more successful." "We wish all Chinese people good health, safety and
happiness in 2008," Secretary-General of the Group Nirj Deva said on behalf of
the group.
People's Daily Online
February 05: Chinese Foreign Minister Yang Jiechi and his Australian counterpart
Stephen Smith started their first round of bilateral strategic dialogue and reached a
broad consensus on various issues. The two ministers agreed that the
establishment of such annual strategic dialogue was in line with the needs of the
progressive development of the bilateral ties, was following the current trend of
peace, development and cooperation in the world, and marked the new stage of
bilateral ties.
Xinhua
Economy
February 06: Soaring food prices have eased slightly after the government
shipped supplies to areas of China's south battered by four weeks of snowstorms,
the Commerce Ministry said. Vegetable prices were 0.5 percent below those of the
previous day and up to 14.1 percent lower in some cities, the ministry said. It said
pork prices were down 0.1 percent on average and as much as 6.9 percent in
some areas.
Houston Chronicle
Foreign Investments
February 06: The Chinese government is learning to tread lightly when buying
major assets abroad. But its purchase of a minority stake in UK-based mining
company Rio Tinto represents a new sovereign-wealth twist: an attempt by Beijing
to influence a foreign, private market. This Chinese play looks like an
unnecessary, and unwelcome, sovereign-wealth intrusion into a private
transaction.
The Wall Street Journal; The Wall Street Journal
February 06: BHP's designs on Rio hit a speed bump last week when Chinalco
teamed up with Alcoa Inc to buy $14 billion worth of Rio stock, giving it just over 9
percent of the company. Chinalco and Alcoa, with funding available from China
Development Bank, have reserved the right to make an offer for Rio if there was
another bid, but sources said.
The New York Times; Financial Times
February 05: China's Foreign Ministry denied the Chinese government would
mount a legal challenge against BHP Billiton's proposal to take over rival
Australian miner Rio Tinto.
Washington Post
Food/Consumer Product Safety Issues
February 06: Japan Tobacco Inc. canceled plans to integrate its frozen-food
operations with another Japanese food maker, which would have created one of
the nation's largest frozen-food businesses, after consumers were sickened by
pesticide-laced dumplings from China. But Nissin Food Products Co of Japan has
pulled out of the plan following a food-poisoning outbreak linked to frozen
dumplings imported from China by JT's food unit.
The Wall Street Journal
February 06: Tests found a second type of pesticide in dumplings made by a
Chinese company whose products sickened at least 10 people in Japan and set
off a nationwide panic over food safety, a supermarket chain said. China and
Japan have sent teams of investigators to each other's country in recent days to
determine the cause of the methamidophos contamination, which some Japanese
officials suspect may have been deliberate.
Washington Post
February 06: Japan and China are planning to set up a food safety council made
up of health, welfare and quarantine officials from both sides to discuss measures
in order to prevent food poisoning and strengthen quarantine inspections. The
consultation council is expected to be formed during China's President Hu Jintao's
visit to Japan later this year, source reported.
China Knowledge
February 06: A joint investigation team of China and Japan to the Tianyang Food
company has not detected abnormity after a half-day inspection tour in the plant,
both Japanese and Chinese investigators said in Shijiazhuang in China. "The
plant is very clean and well managed, and no abnormity has been detected," a
Japanese investigator said. Japan will conduct further analysis based on
information and data collected in the plant.
Shanghai Daily
Energy & Environment
February 06: Power supplies knocked out by fierce winter weather were being
restored for millions of Chinese at the start of the Lunar New Year holiday. Skies
were clearer across most of the country, a three-day rain and snow "severe alert"
was lifted for the worst affected areas and temperatures had risen to well above
freezing in the south.
Washington Post
February 06: Millions of Chinese began the biggest holiday of the year without
power after more than a week of fierce winter weather, but tens of thousands of
stranded passengers had finally found trains, buses and planes to get home for
family reunions.
Washington Post; ABC News
February 06: China lifted an extreme winter weather alert as the crisis sparked by
the worst ice and snow storms in half a century began to wind down. The China
Meteorological Administration lifted a severe weather emergency alert issued
January 25 that had required regional offices to remain staffed around the clock,
source said.
Washington Post
February 05: The United States is worried that China and OPEC oil-producing
countries could use their growing financial clout to advance political goals, the top
US spy chief. China has pursued a policy of global engagement out of a desire to
expand its growing economy and obtain access markets, resources, technology
and expertise, National Director of Intelligence Michael McConnell, said.
Washington Post
Insurance & Finance
February 06: Financial markets were closed Wednesday through Friday in China,
South Korea and Taiwan for the Lunar New Year. Financial markets in Hong Kong
and Singapore were open for a half-day Wednesday and would remain closed
Thursday and Friday for the Lunar New Year holidays.
International Herald Tribune
February 06: After three year's negotiation, three out of hundreds Chinese
cigarette brands, RGD, Harmony and Dubliss, were selected by Chinese
government to collaborate with Philip Morris International, a Swiss tobacco giant
producing many of the world's best-selling cigarette brands, with the purpose to
expand abroad, source reported.
China Knowledge
February 06: People's Bank of China required China's commercial banks
operating in Shanghai to follow the tight monetary policy through its Shanghai
headquarters. The banking regulator in Shanghai, at the same time, required
lenders to combine the cap on lending with support measures for the economy,
source reported. China adopted the tight monetary policy with the purpose to
restrain investment and inflation last year.
China Knowledge
February 06: Unprecedented heavy snow and power cuts have paralyzed areas
in central and southern China. The People's Bank of China has issued a directive,
ordering financial institutions to offer emergency loans to all affected businesses
and individuals. This in turn can ease the recent tightened credit over a shorter
duration.
China Knowledge
February 06: China National Building Material Co. Limited has inked contracts
with Sin Chang An Holding Ltd., a unit of the Singapore-listed Jurong Cement Ltd,
to acquire a 60 percent stake in both Zhejiang Shanying Cement Co. Ltd. and
Zhejiang Jurong Cement Co. respectively at a combined value of $59.34 million
(US $ 41.8 million) in cash, source reported. China National Building Material Co.
Ltd announced earlier in January that it is going to acquire six cement and clinker
manufacturers with a total cost of RMB3 billion (US $ 0.42 billion).
China Knowledge
Media
February 06: China's government said new rules requiring online-video
companies to be state-controlled don't apply to already-established websites,
offering hope to privately owned Chinese start-ups whose fate had seemed
threatened by the regulations. A statement from China's State Administration of
Radio, Film and Television and the Ministry of Information Industry clarifies rules
announced in late December by the same two agencies that appeared to require
all video-streaming Web sites to be owned or controlled by an arm of the state.
Those rules took effect at the end of last month.
The Wall Street Journal; Washington Post
February 06: After three months of preparation, China's annual TV broadcast for
Spring Festival Eve is ready to go. The event will be broadcast live nationwide and
across the world by China Central TV through its two Chinese channels, the
English, French and Spanish services and its website. The program, which usually
runs about four hours, will have a theme of promoting a harmonious society and
unity among the people, CCTV said. It said that the show was also aimed at lifting
public morale amid the winter disaster.
People's Daily Online
February 06: China released Hong Kong journalist Ching Cheong from prison as
abruptly as it arrested him three years ago on espionage charges. Mr. Ching
released a brief statement thanking officials and friends for their support. Mr.
Ching was believed to be gathering material about former Communist Party chief
Zhao Ziyang, who sympathized with student demonstrators during the 1989
Tiananmen Square protests.
The Wall Street Journal; Washington Post; The New York Times; Financial
Times
February 05: China has eased new Internet controls that had limited videosharing to state companies, saying private competitors already operating in the
fast-growing arena may continue. Any new video-sharing companies must comply
with the rules, which took effect, the government said.
C News
Internet
February 06: Two years after Google Inc. began a big push in China, Baidu.com
Inc. continues to dominate the country's Internet search market, thanks in
significant part to a controversial and legally risky offering such as searches for
free, unlicensed music downloads. Now, Google is preparing a counterstrike,
according to people close to the situation. The US search giant is in the late
planning stages of a joint venture with a Chinese online music company that would
permit it to provide free licensed music downloads in China.
The Wall Street Journal; Washington Post
Defense & Exports Control
February 05: Beijing's rapidly growing military spending, estimated at $85 billion
to $125 billion last year, is still dwarfed by the United States, where a half-trillion
dollars is shelled out for defense spending each year, not counting money for the
wars in Iraq and Afghanistan. Some analysts say a US buildup of heavy
equipment is less a response to an emerging Chinese military threat and more to
the need to replace aging post-Cold War equipment for hotspots, be they in the
Persian Gulf, North Korea, China or elsewhere.
Washington Post
Cross - Straits
February 06: Australian Foreign Minister Stephen Smith said that the one-China
policy, which Australia has been upholding for 35 years, was part and parcel of
Australian recognition of China as a nation. Referring to a question about
Australia's comment on Taiwan's referendum on UN membership, Smith said that
Australia adheres "absolutely to our one-China policy and we are very concerned
to ensure that action is not taken in Taiwan or the Taiwan Straits, which would
cause concern or potential in harmony across the Straits itself."
People's Daily Online
General News
February 06: Transport and power disruptions caused by unusual winter storms
across much of China's heartland are beginning to ease, but the scale of the
problems showed how close the country's racing economy is to hitting its physical
limits. Economists say problems caused by the severe weather, which blanketed
much of eastern, central and southern China with ice and snow in the past three
weeks, appear increasingly unlikely to cause lasting economic damage. Electricity
is slowly being restored, and road and rail links have been reopened.
The Wall Street Journal
February 06: In 2006, the head of LensCrafters in China was poring over data on
the eyewear-buying habits of the world's most populous nation that hinted at a
tough task ahead. Chinese consumers see glasses as just remedial tools, the
research said, and their priority often is price, not high quality. While the Chinese
cared a lot about their health, he concluded, they weren't willing to invest much
money in their eyes.
The Wall Street Journal
February 06: The Chinese public had pledged donations of 480 million Yuan ($67
millions) to help people in areas affected by severe winter weather, according to
the Ministry of Civil Affairs. Donations received and distributed by the ministry
totaled 45.81 million Yuan. Donations arranged by China Red Cross Society and
China Charity Federation for the stricken areas have risen to 59.52 million Yuan
and 42 million Yuan, respectively.
People's Daily Online
February 06: The world's most populous nation began its week-long Lunar New
Year holiday, but hundreds of thousands perhaps millions of people will probably
spend the biggest festival of the year in the cold and dark. The government has
sent millions of candles, as well as diesel generators and food, to the affected
regions ahead of the Lunar New Year, especially to people living in remote
mountainous areas.
Xinhua
February 06: Air China Ltd, the largest airline by market value, plans to borrow at
least $750 million this month to expand its fleet as travel demand rises in the
world's second-biggest aviation market. The carrier plans to add about 24 planes
this year, Air China spokeswoman Rao Xinyu said. The planes are part of
government orders put to Airbus SAS and Boeing Co earlier, she said.
Shanghai Daily
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