Trade
IPR
Political and International
News
Economy
Foreign Investments
Energy & Environment
Insurance & Finance
Media
General News
US Chamber China Trade & Investment News
July 14, 2008
Trade
July 14: According to Welber Barral, Secretary of International Trade with Brazil's Ministry
of Development, Industry and Trade. Brazil will promote Sino-Brazilian bilateral trade and
hopes to triple its exports to China to $30 billion by 2010, when China is likely to become
its biggest trade partner. He said Brazil was seeking more trade opportunities with China,
to tap China's huge and growing market.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16465&cat=TRP
July 14: Steel imports from China sharply increase in May 2008.
http://www.chinatradeextra.com/
July 14: Petitioners, respondents offer pre-hearing briefs in Chinese off-road tire CVD
case.
http://www.chinatradeextra.com/
July 14: Gao Hucheng, a vice minister of China's Ministry of Commerce, reported the
downturn in the global economy and the Yuan's appreciation hurt the performance of
some domestic exporters, such as textile makers, during the first half of 2008. The
appreciation in the value of the Yuan has exacerbated the strain on exporters at a time of
slackening demand in the US and elsewhere.
http://online.wsj.com/article/BT-CO-20080714-700177search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 13: China registered a $7.57 billion trade deficit in agricultural products during the
Jan-May of 2008, up by more than 14-fold over the same period in 2007. China imported
$23.75 billion of agricultural products during the period, up 59 percent over 2007. The
nation exported $16.18 billion of agricultural products during the period, up 12 percent
over Jan-May of 2007.
http://online.wsj.com/article/BT-CO-20080713-700397search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 13: Growth in China's auto imports slowed down in Jan-May 2008, thanks largely to a
compulsory coding system for standardizing vehicle purchase from abroad. The new
import management system, which took effect in April 2008, denies refitted and stolen
motor vehicles access to the Chinese market. Upon the tightened control, China's auto
imports in April declined 7.5 percent from March level to 37,000 units, and in May, went
further down 18 percent from April level to 31,000 units.
http://news.xinhuanet.com/english/2008-07/13/content_8536856.htm
July 13: PetroChina and Sinopec, China's two leading oil producers are expected to
import 720,000 oil products in July 2008 for eastern regions, as part of the nation's efforts
to ensure sufficient oil supplies during the upcoming Beijing Olympics. The refined oil
imports will be 18 percent higher than the June 2008 level. Of the total, Sinopec will
purchase 370,000 tons and PetroChina 350,000 tons.
http://news.xinhuanet.com/english/2008-07/13/content_8536653.htm
July 13: China saw a double-digit, year-on-year decline in steels export in June 2008,
which was triggered mainly by a drastic reduction in sales to southeastern Asia, Vietnam
in particular. In June, China sold 5.22 million tons of rolled steel abroad, a decrease of 6
percent from May 2008, or 17.9 percent from the same month of 2007. Net exports stood
at 3.96 million tons, down 6.16 percent from June, or 20 percent from 2007.
http://news.xinhuanet.com/english/2008-07/13/content_8536388.htm
July 12: The US trade deficit with China is flat so far in 2008: $96.0 billion versus $96.3
billion. Imports from China are only up 4.4 percent so far in 2008, a pace consistent with
the overall increase in non-oil imports. The combination of RMB appreciation versus the
dollar, rising inflation in China, rising transportation costs and a slowing US economy is
having an impact.
http://blogs.cfr.org/setser/2008/07/12/too-chinese-and-russian-to-fail/
IPR
July 14: Senate Finance Committee to hold IPR enforcement hearing July 15 2008.
http://www.chinatradeextra.com/
July 13: China would support domestic enterprises to build more world-renowned brands
and to increase the added value of their trademarks. Fu Shuangjian, deputy director of the
State Administration for Industry and Commerce (SAIC), said the country encourages
domestic companies to file more international trademark applications to better participate
in global competition and protect its trademark privilege.
http://news.xinhuanet.com/english/2008-07/13/content_8536393.htm
Political and International News
July 14: Beijing has warned drivers that might consider violating Olympic traffic
restrictions that they will be caught by a high-tech surveillance network, but offenders will
receive only modest fines. In a bid to improve air quality and ease traffic on the Chinese
capital's congested roads for the Games that start August 08 2008, Beijing will ban cars on
alternate days from July 20, depending on whether their license plates end in odd or even
numbers.
http://www.nytimes.com/reuters/technology/tech-olympicstraffic.html?scp=18&sq=China&st=nyt
http://www.washingtonpost.com/wpdyn/content/article/2008/07/14/AR2008071400043.html
July 14: An arbitration panel in Stockholm rejected Groupe Danone SA's requests for
interim measures against its Chinese joint-venture partner Hangzhou Wahaha Group
Company. The tribunal of the Arbitration Institute of the Stockholm Chamber of Commerce
rejected Danone's requests to prevent Wahaha "from setting up new Non-Joint Ventures
or increasing the production capacity of the existing Non-Joint Ventures.
http://online.wsj.com/article/SB121598735368549237search.html?KEYWORDS=China&COLLECTION=wsjie/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRH31bzXoAPE
July 13: Broadcasters and the IOC (International Olympics Association) are pushing
China to keep its promises and open up Tiananmen Square to more hours of live
coverage for the Beijing Olympics.
http://www.nytimes.com/aponline/sports/AP-OLY-China-TV-CoverageCurbs.html?scp=21&sq=China&st=nyt
http://www.washingtonpost.com/wpdyn/content/article/2008/07/13/AR2008071300700.html
July 13: Public institutions in Beijing will soon start work an hour later than normal in a
plan to ease traffic congestion during the Olympic Games. Working hours in Beijing will
change from July 20 2008 in a bid to spread out morning traffic by staggering office
openings and to reduce pollution. The government also is encouraging people to work
flexible hours or work from home if possible.
http://www.washingtonpost.com/wpdyn/content/article/2008/07/13/AR2008071302182.html
July 13: China is breaking the United Nations arms embargo on Sudan, providing military
equipment and training pilots to fly Chinese jets. BBC obtained satellite photographs of the
planes, reportedly believed to have been delivered to Sudan in 2003 - the UN arms
embargo was imposed in March 2005 - at an airport in Nyala in south Darfur in June.
http://online.wsj.com/article/BT-CO-20080713-702835search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 12: Vice President Xi Jinping reported that security should be the top priority when
providing service for guests coming to the Beijing Olympics. Xi, also a member of the
Standing Committee of the Political Bureau of the Communist Party of China Central
Committee, said providing good service for the Games requires full implementation of
security measures.
http://news.xinhuanet.com/english/2008-07/12/content_8535874.htm
July 12: The chief delegates of the six-party talks on the Korean Peninsula nuclear issue
ended talks in Beijing agreeing to establish a verification mechanism of Korean Peninsular
denuclearization. The discussions, attended by China, the US, North Korea, South Korea,
Russia and Japan, have run for three days.
http://online.wsj.com/article/BT-CO-20080712-700081search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 11: The US is "disappointed" by China's and Russia's veto of a draft resolution that
would have slapped targeted sanctions on Zimbabwe's President Robert Mugabe. "The
United States is disappointed that China and Russia prevented the (Security) Council from
adopting a strong resolution" that would have provided "an incentive (for Mugabe) to
negotiate seriously."
http://online.wsj.com/article/BT-CO-20080711-713132search.html?KEYWORDS=China&COLLECTION=autowire/6month
Economy
July 14: Prices at China's factories are rising faster than those on store shelves for the
first time in more than a year. According to data from the National Bureau of Statistics, the
PPI accelerated faster than CPI in May 2008, the first time that happened in 16 months.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXN6__wOREXg
July 13: China's customs-tax revenue in the first half of 2008 rose 36 percent to $71.58
billion from $52.8 billion in 2007 period. The pace of growth in the first half exceeded the
24 percent increase in 2007.
http://online.wsj.com/article/BT-CO-20080713-703861search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 13: The Chinese economy will likely reach a turning point before the opening of the
Beijing Olympics in August 2008 as soaring prices and plummeting stock prices in China,
combined with the deceleration of the world economy, are rendering the country’s
macroeconomic conditions increasingly harsh. The key to maintaining growth over the
medium and long terms lies in carrying out long-delayed reforms.
http://www.rgemonitor.com/26/China
Foreign Investments
July 14: South Korea-based LIG Insurance Company Limited has received regulatory
approval from the China Insurance Regulatory Commission to establish a wholly owned
non-life subsidiary in Nanjing city of eastern China's Jiangsu province. LIG will be the first
locally incorporated foreign insurer to be headquartered in Nanjing.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16475
July 14: PCCW Limited, Hong Kong's dominant fixed-line operator, is seeking around $2.5
billion for its sale of a 45 percent stake in its telecommunications assets. US private equity
firms TPG Incorporation and Providence Equity Partners Incorporation are the
frontrunners for HKT Group Holdings Limited, the unit being sold by PCCW.
http://online.wsj.com/article/BT-CO-20080714-700248search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 14: China's broadest measure of money supply, M2, was up 17.37 percent at the end
of June 2008 from 2007. The M2 growth rate was lower than the 18.07 percent rise at the
end of May 2008. China's foreign-exchange reserves, the world's largest, rose $126.6
billion in the second quarter of 2008. The People's Bank of China said the reserves totaled
$1.8088 trillion at the end of June 2008, up from $1.6822 trillion at the end of March 2008.
http://online.wsj.com/article/BT-CO-20080714-700148search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acu2mnReYmzo
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUu1xPJt6ywc
http://blogs.cfr.org/setser/2008/07/14/the-mystery-deepens-chinas-june-reserve-growth-issurprisingly-low/
July 13: China's government has named Li Jiange, an economist and vice president of the
State Council's Development Research Center, as chairperson of China International
Capital Corporation. Li replaces Jesse Wang, who in 2007 was named a vice president
and chief risk officer at China Investment Corporation, the country's $200 billion sovereign
wealth fund established in September.
http://online.wsj.com/article/BT-CO-20080713-704445search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 13: Foreign direct investment (FDI) in China rose 45.5 percent in Jan-Jun 2008,
deepening worries that the inflow of "hot money" could lead to higher inflation. The
Ministry of Commerce said that foreign investors spent $52 billion in China between
January and June. In the same period in 2007, FDI increased only 12 percent.
http://news.xinhuanet.com/english/2008-07/13/content_8536449.htm
July 13: China to tighten capital controls in July 2008 as it worries about hot money (shortterm speculative inflows) which is thought to have exceeded $150 billion in the first half of
2008. Exporters will be required to park revenues in special accounts while the authorities
verify that the funds were the result of genuine trade in order to convert funds.
http://www.rgemonitor.com/26/China
July 13: German Continental AG plans to scale up investment in China and introduce
environmentally friendly technology to improve competitiveness. Continental has recently
invested $88.2 million in Changshu in China's southeastern province of Jiangsu to build a
hydraulic brake factory. Continental, the biggest auto parts supplier in Europe, said that 10
percent to 12 percent of its current earnings comes from Asian markets, where its sales
are expected to double by 2015.
http://news.xinhuanet.com/english/2008-07/12/content_8533650.htm
July 11: China Mass Media International Advertising Corporation filed an initial public
offering with the US Securities and Exchange Commission to sell up to $150 million of
American depositary shares.
http://online.wsj.com/article/BT-CO-20080711-712984search.html?KEYWORDS=China&COLLECTION=autowire/6month
Energy & Environment
July 14: China Huaneng Group, parent of Huaneng Power International Company Limited,
produced 184.9 billion kilowatt hours (kWh) of electricity in Jan-Jun of 2008, up 22.96
percent over same period 2007.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16464&cat=CMP
July 14: China National Petroleum Corporation (CNPC), parent company of PetroChina
Company's crude oil output in Jan-Jun 2008 went up by 466,670 tons from the
corresponding period 2007. In Jan-Jun 2008, the company achieved 50.03 percent of its
targeted domestic crude oil output for the whole year. Its natural gas output rose by 4.6
billion cubic meters, up 17.6 percent year-on-year.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16468&cat=IND
Insurance & Finance
July 14: Aluminum Corporation of China (Chinalco) has signed an agreement with the
country's fifth-largest lender Bank of Communications Company, for a line of credit for up
to $3.58 billion. So far, Chinalco has been provided lines of credit worth over $29.21 billion
from the country's major commercial lenders.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16456
July 14: Hong Kong-listed China Communications Construction Company planned to
issue bonds worth up to $2.19 billion in the mainland with a maturity of 5 to 15 years. The
company disclosed that the debt issue is to meet its medium- to long-term funding needs,
including adjustment its debt structure and supplementing working capital.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16474&cat=BND
July 14: China Yangtze Power Company, operator of the world's largest hydropower
project, says parent China Three Gorges Project Corporation plans to list on the stock
exchange. China Three Gorges is in talks with authorities on the plan. Yangtze Power,
operator of the Three Gorges Dam in the central province of Hubei, is buying generation
units from its parent to boost earnings.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aH.p4IwpVNys
July 14: Zhengzhou Nissan Automobile Company Limited is expected to expand its
capital to $188.46 million from the current $36.52 million, as its three principal
shareholders will invest a further $151.93 million in the joint venture. Nissan (China)
Investment holds 20.35 percent, Dongfeng Motor, the parent of Dongfeng Auto, holds
28.65 percent, and the remainder is held by Dongfeng Auto, in the joint venture.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16473
July 14: Citic Group, China's biggest state- owned investment firm, has bought a stake in
Tianan Insurance to become the largest shareholder. Citic bought the shares in Shanghaibased Tianan as the insurer expanded its capital base to $321.9 million from $97.59
million. The investment company owns 13.81 percent of Tianan.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azidFzbyPIA4
July 13: Starting from July 01 2008, the China Securities Regulatory Commission (CSRC)
would release a preliminary prospectus online within five work days after an IPO-seeking
company and underwriters receive feedback from the CSRC and make revisions.
According to the latest rule of China's securities watchdog, the information about initial
public offerings awaiting a green light would be disclosed earlier, a step toward more
transparency in IPO approval.
http://news.xinhuanet.com/english/2008-07/13/content_8539873.htm
July 13: China's venture capital market was brisk in the second quarter of 2008, with 159
enterprises obtaining such investment. According to a recent forum on venture capital and
private equity investment in China, among the 159 enterprises, 143 have revealed the
investment they required, involving $1.2 billion in combined venture capital, up 31.4
percent and 73.5 percent respectively.
http://news.xinhuanet.com/english/2008-07/13/content_8537013.htm
July 12: Sun Hung Kai Properties Limited has formed a joint venture with Henderson Land
Development Company and Wharf (Holdings) Limited to develop a property project in
Sichuan province, southwestern China. Sun Hung Kai, Hong Kong's largest developer, will
hold a 40 percent stake in the venture. Henderson, the fourth biggest developer, and
Wharf, a smaller developer, will each hold a 30 percent stake in the venture.
http://online.wsj.com/article/BT-CO-20080712-700437search.html?KEYWORDS=China&COLLECTION=autowire/6month
Media
July 14: Joost N.V., a peer-to-peer (P2P) video networks operator, is set to expand its
presence in China by enhancing cooperation with China's leading media company
Tom.com Corporation. Joost will announce the details jointly with Tom online on July 23
2008. In January 2008, Joost and Tom introduced the Chinese version of the Joost
platform that provides download services to customers.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16469
General News
July 14: China's smaller zinc and lead smelters will cut output by 10 percent to bolster
prices and ease a power shortage in the world's largest producer of the metals ahead of
next month's Beijing Olympics. Henan Yuguang Gold and Lead Company and 26
companies agreed to reduce production for three months through September 2008.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOOI7WEBXZfo
July 14: Power shortages that forced Chinese producers to cut output by as much as 10
percent have pushed aluminum prices to records -- and revived fears about whether all
expansion plans will materialize. Twenty aluminum smelters in China, including Aluminum
Corporation of China Limited, or Chalco, plan to cut output by 5 percent to 10 percent over
August 2008, resulting in output losses of about 80,000 tons. Together, they account for
about 70 percent of China's aluminum-production capacity.
http://online.wsj.com/article/SB121598783603749251search.html?KEYWORDS=China&COLLECTION=wsjie/6month
July 13: Fifteen Chinese brands were listed among the world's top 500 brands in 2008.
China National Petroleum Corporation, China Merchants Bank and Tsinghua Tongfang
were three newcomers into the list, while 12 Chinese brands retained their position from
the previous year. The 12 brands include Haier, Lenovo, Industrial and Commercial Bank
of China, State Grid, Bank of China, China Life, Changhong, China Railway Group, Air
China and Sinopec.
http://news.xinhuanet.com/english/2008-07/14/content_8539888.htm
July 12: South Korea's Hyundai Motor Company will supply commercial vehicle parts to a
Chinese company over the next five years. Hyundai will provide bare chassises and power
trains to be used in 17,100 buses to Xiamen Golden Dragon Bus Company, which sells
about 25,000 buses a year in China.
http://online.wsj.com/article/BT-CO-20080712-700770search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 11: Brazilian aircraft manufacturer, Empresa Brasileira de Aeronautica SA, or
Embraer, sold five E190 large regional commercial jets to China's Kun Peng Airlines
Company. The orders are worth $187.5 million, based on list prices.
http://online.wsj.com/article/BT-CO-20080711-712214search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 11: Beijing Shougang Group, one of the mainland's top steel producers, has slashed
output and closed facilities to help reduce pollution levels by as much as 70 percent for the
Beijing Olympics. Beijing Shougang Group has slashed its monthly steel production
volume by 29 percent for the third quarter. That's equivalent to 200,000 tons.
http://online.wsj.com/article/BT-CO-20080711-702973search.html?KEYWORDS=China&COLLECTION=autowire/6month
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