Monday, December 31, 2007

Learn Chinese online - Foreign investors zero in on Chinese coal

?  ?

BIZCHINA / Center

Foreign investors zero in on Chinese coal

(China Daily)
Updated: 2007-09-18 09:25

In view of its huge development potential, more and more foreign
companies have been showing a keen interest in entering China's coal
industry.

At the China (Taiyuan) International Coal & Energy New Industries Expo
2007, many foreign companies have showcased their projects or objectives
in the nation.

Asian American Coal Inc (AACI), comprised of some US energy firms and
financial institutions, has set up two joint ventures to develop Shanxi's
coalmines.

In July, the Shanxi Provincial Coal Industry Bureau gave a production
license to one of AACI's joint ventures, Shanxi Asian American-Daning
Energy Co, to develop the Daning coalmine.

The production license will enable the joint venture to develop the mine,
projected to have an annual production capacity of 4 million tons. Total
investment in the project is US$230 million.

Michael Cosgrove, CEO of AACI, said the company received approval because
of its expertise in the coal industry, as well as its longstanding
interest in China's coal sector.

AACI has also set up another joint venture to develop the Gaohe coalmine
in Shanxi with an investment of US$300 million. It expects to get a
production license in 2009 for an annual output of 6 million tons, said
Cosgrove.

Apart from the upstream coal production business, foreign companies have
also shown interest in downstream works like the coal-to-chemical
business. South Africa-based Sasol, a world leader in producing fuel from
coal, has joined hands with Shenhua Group to set up two coal-to-oil
plants using the former's technology.

The two coal liquefaction projects, one in Yulin in Northwest China's
Shaanxi Province and another in Northwest China's Ningxia Hui Autonomous
Region, will each produce 3.6 million tons of oil a year.

The total investment in the two projects will be between US$10 billion
and US$14 billion. Construction will likely begin in 2013.

The technique of coal liquefaction has drawn increasing attention in
recent years as international oil prices have shot up. The Shenhua
project is thus of great importance to China both in terms of energy
safety and economic development, according to Chen Liming, executive
vice-president of Sasol China.

China's increased emphasis on energy conservation and environmental
protection provides many foreign companies with the opportunity to bring
their advanced technologies and solutions to the nation, said William
Mark Hart, president of the Canada-based West Hawk, at the expo.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Coca Cola?to make?China?its largest market

?  ?

BIZCHINA / Biz Who

Coca Cola?to make?China?its largest market

(Xinhua)
Updated: 2007-09-16 11:20

?
Neville Isdell, chairman and chief executive officer of the Coca Cola
Company

Coca Cola expects China to be its largest market, said E. Neville Isdell,
chairman and chief executive officer of the Coca Cola Company.

Although China's economy has been growing rapidly for more than two
decades, Isdell noted that he had confidence in its further growth.
"China is currently our fourth largest market, but I hope it could become
No 1."

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Coca-Cola built two new bottling factories in East China's Jiangxi
Province last July and in Northwest China's Xinjiang Uygur Autonomous
Region in August, bringing the total number of its factories in China to
37.

A new complex including the Global Innovation and Technology Center and
the new Coca Cola China Headquarters, costing US$80 million, broke ground
in Shanghai, China's largest industrial center, according to Isdell.

"The 2008 Olympic Games would be a great opportunity for China, " he said.

Coca Cola, the world's biggest soda supplier, now owns a wide variety of
soft drinks in China, ranging from mineral water and fruit juice, to tea
and coffee. It owns more than half of the shares in the soda beverage
market.

Entering China in 1928, Coca Cola became sponsor for the Olympics in the
same year and now helps the national selection of torchbearers and escort
runners for the Beijing Olympics.

Talking about the success in China, Isdell underlined social
responsibility and innovation.

As for innovation, Isdell cited the example of tea drinks it developed
for the Chinese market. "You should discover the new flavors suitable for
the market," he said.

Confidence is equally important. The two-meter-tall chairman said that he
had been drinking Coca Cola with his wife every day for ages and the
beverage was still their favorite.

"You should believe in what you sell and be totally committed," he said.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Graft prevention bureau unveiled

?  ?

BIZCHINA / Biz Who

Graft prevention bureau unveiled

(Xinhua-China Daily)
Updated: 2007-09-14 09:23

The long-awaited National Bureau of Corruption Prevention (NBCP) was
unveiled yesterday in the latest bid to fight corruption.

The State-level bureau, which will focus on corruption prevention rather
than punishment, will be in charge of organizing and coordinating
preventive measures.

Ma Wen, head of the bureau, told a press conference yesterday that such
an organization was needed to orchestrate all the resources to "prevent
corruption at its roots".

The downfall of a string of senior corrupt officials in recent years has
led to calls for containing corruption; and some have blamed the lax
prevention system for being the cause.

"The establishment of the bureau signifies the central government's
growing attention to graft prevention," said Ma, also minister of
supervision.

The NBCP aims to monitor the flow of suspicious assets and corruption
activities by establishing an information-sharing system among
prosecuting organs, courts, police and banks, Qu Wanxiang, deputy head of
the bureau, said at a press conference.

With this information, the bureau will be able to monitor money flows and
detect suspicious behavior, he said, adding it will not be involved in
probing individual cases.

Qu said that the status of the bureau, which reports directly to the
State Council, or the cabinet, would guarantee a smooth operation.

The bureau will also guide anti-corruption work in companies, public
undertakings and non-governmental organizations; help trade associations
to establish self-regulatory systems and mechanisms; prevent commercial
bribery, and work with rural organizations as well as urban communities.

Qu revealed that the new bureau consists of 30 members, including a head
and two deputies.

(For more biz stories, please visit Industry Updates)

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Chinese School - Malformed baby has third arm removed

CHINA / National

Malformed baby has third arm removed
By Cao Li (China Daily)
Updated: 2006-06-07 05:52

SHANGHAI: A 2-month-old baby boy born with three arms underwent a
successful operation yesterday at Shanghai Children's Medical Centre to
remove his extra limb.

A baby boy who was born with three arms lies in a bed in the intensive
care unit after a two-and-a-half-hour surgery at the Shanghai Children's
Medical Center June 6, 2006. Surgeons in Shanghai on Tuesday said they
successfully removed a third arm from a 66-day-old infant. [Reuters]

Liu Junjie was born with two malformed left arms and a normal right one.

The operation, which lasted less than 2 hours, removed the arm stretching
out under the armpit of the other left one.

Surgeon Chen Bochang, head of the orthopaedics department of the
hospital, said that the baby's remaining left arm bent slightly after the
removal of the one under it.

It is still too early to say whether the baby will ever be able use his
left arm normally.

"We found the two left arms shared part of their joint capsules," Chen
said. The joint capsule is the "hinge" structure of the bone joint.

"We've managed to divide the capsules, but how well the split joint can
work in future is not certain yet.

"Also, the left elbow joint could easily be damaged by the operation."

The baby is expected to recover from the operation in one to two months,
but rehabilitation could take a long time, according to Chen.

The doctor said the hospital would train the boy's parents on how they
can help with the rehabilitation.

The baby is in an intensive care unit and is expected to be transferred
to a normal ward in three to five days.

Chen said that the malformation was the third instance of its kind in the
world that he is aware of. "I just heard this week that a hospital in
Houston, the United States, has received two similar patients,"

The baby also has other malformations including the absence of a kidney
and spinal problems.

"But they are not very serious," Chen said.

Doctor Chen appealed to the public to donate money for Junjie's future
treatment and rehabilitation.

The operation and treatment has cost above 20,000 yuan (US$2,470) so far,
but the hospital has not charged the parents, who are poor farmers from
Anhui Province.

(China Daily 06/07/2006 page3)

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Sunday, December 30, 2007

Learn Mandarin online - Export: Most toys recalls not attributable to manufacturers

?  ?

BIZCHINA / Biz Media Digest

Export: Most toys recalls not attributable to manufacturers

(chinaview.cn)
Updated: 2007-09-11 10:42

Most recalls of toys made in China are due to design errors, not
manufacturing problems, Canadian business professor Hari Bapuji said
Sunday.

"We should be asking the toy makers: 'Are you guys learning from the
errors that you are making? What are your systems to test? What are your
systems to make sure that an error doesn't get repeated in the future?'"
he said in an interview with Canadian Television.

Bapuji, professor of University of Manitoba and University of Western
Ontario international business professor Paul W. Beamish jointly drew out
a report on toy recalls, which is to be published by the Asia Pacific
Foundation of Canada.

The latest report gave a close analysis on the reasons of Chinese-made
toy recalls by the US Consumer Product Safety Commission from 1988 to
August 2007.

They found that of the 550 toy recalls since 1988, 76.4 percent were the
problems that could be attributed to design flaws while only about 10
percent were attributable to manufacturing defects.

The report pointed out that when Mattel Inc recalled 20 million toys this
past August, 80 percent of the toys were pulled because they contained
small magnets, which is a design flaw.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Three Gorges Dam takes the first strain

CHINA / Regional

Three Gorges Dam takes the first strain
By Guo Nei (China Daily)
Updated: 2006-06-06 06:14

The Three Gorges Dam, the world's largest dam, takes the strain for the
first time today when the temporary dam that has protected it throughout
construction is demolished.

The cofferdam protecting the just-completed Three Gorges Dam is refilled
with water in Yichang, central China's Hubei Province, June 3, 2006.
Demolition experts completed Friday the setting of explosives that will
create a massive explosion to demolish the cofferdam on June 6. [Xinhua]

A network of electronic triggers was completed on Sunday for today's
demolition of the last cofferdam holding back the Yangtze upstream from
the Three Gorges Dam in Yichang, Central China's Hubei Province.

The electronic trigger network is attached to 2,540 detonators, which
will set off nearly 1,000 consecutive explosions using a total of 192
tons of dynamite to blow up the cofferdam.

Zhang Chaoran, chief engineer of the China Yangtze Three Gorges Project
Development Co, said the demolition was a challenging job, but he was
confident it would be a success.

Song Ling, general manager of Chongqing Gezhouba Yipuli Chemical Company,
who will oversee the demolition, told the Xinhua News Agency that all
preparatory work was now completed.

Zhao Gen, a senior engineer with the Yangtze River Academic Institute and
designer of the demolition project, said the demolition of the vast
temporary dam would only take about 12 seconds.

The removal of the cofferdam means the Three Gorges Dam, completed on May
20 this year, will begin its flood control role two years ahead of
schedule and in time for the 2006 flood season, which usually begins in
June.

The cofferdam, which has held the reservoir since 2003, is 580 metres
long, 140 metres high and 8 metres wide at the top.

Debris from the explosion has been estimated at 180,000 cubic metres.

The Three Gorges Dam has been engineered to prevent and control floods
and "even in the rare occurrence of a 1,000 year flood, mass damages or
injuries can still be prevented," according to Zhang.

Deadly floods are a frequent occurrence along the Yangtze, China's
longest river and the world's third longest after the Nile and the Amazon.

The floods have claimed more than a million lives in the past century,
with the latest flood, in 1998, responsible for about 1,000 deaths and
approximately 100 billion yuan (US$12.5 billion) of damage.

At 185 metres high and 2,309 metres long the Three Gorges Dam uses 28
million cubic metres of concrete.

Launched in 1993, the 180-billion-yuan (US$22.5 billion) project to build
it involves three stages.

The entire project is expected to be finished in 2008.

Designed for power generation as well as flood control, when operating at
full capacity the dam's generators are expected to produce 18.2 million
kilowatts of energy up to one ninth of China's output.

Despite the advantages, environmental problems along the Three Gorges
reservoir are serious.

Just to prevent garbage from piling up at the dam, China will have to
spend at least 10 million yuan (US$1.3 million) annually, to ensure the
safe operation of the world's largest water control project.

Statistics suggest that the garbage runoff flowing into the reservoir
will amount to 100,000-200,000 cubic metres each year, most of which will
accumulate in flooding seasons.

(China Daily 06/06/2006 page2)

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Chinese language - US poultry chief urges fair deal for China

?  ?

BIZCHINA / Top Biz News

US poultry chief urges fair deal for China

By Hu Yinan (China Daily)
Updated: 2007-09-08 09:38

A recent US provision that effectively blocks China's poultry exports to
the country leaves an impression that it was "made on political grounds,"
a top American poultry industry representative said on Friday.

Decisions must be made "on the basis of sound science politics really has
no place in it..." James H. Sumner, president of the US Poultry & Egg
Export Council and head of the International Poultry Council, told senior
Chinese quarantine officials in Beijing.

Related readings:

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"China must be given fair consideration," he stressed.

He was commenting on an act passed by the US House of Representatives
earlier this month.

According to the bill, "none of the funds made available in this Act may
be used to establish or implement a rule allowing poultry products to be
imported into the United States from the People's Republic of China".

"The last thing we need is something like this to get in the way of our
mutual progress as long as (Chinese) products reach the standards, nobody
should stand in the way," Sumner said.

He expressed concern that "politicians who don't understand the
principles of free trade" may come to severely undermine the US export
trade.

He made the remarks during an unexpected visit to "show support" to
China's poultry industry, only days before a bilateral food safety summit
between the two countries scheduled in Washington DC.

In an August 31 letter to the US House Agricultural Appropriations
Committee, he explicitly called for "calmer minds and careful voices" to
resolve current disputes.

Sumner brought along with him similar letters from five American
companies, which together represent 75 percent of US chicken production
and 80 percent of its exports.

"This is good evidence that the entire (US poultry) industry supports the
statements I've made," he said, adding that China's "willingness and
commitment to work together" has been highly appreciated.

Earlier, the Chinese poultry industry condemned the US act on the ground
that it "violated basic rules of the World Trade Organization and is
against the principles of fair trade".

China is the world's largest meat producer and the second largest poultry
producer, after the United States.

(For more biz stories, please visit Industry Updates)

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Chinesepod - New countryside in Zhenjiang

CHINA / Jiangsu in Photos

New countryside in Zhenjiang
(people.com.cn)
Updated: 2006-06-05 11:25

Online  reporting group enters Jiangzhuang Village of Nitang Town in
Zhenjiang city. [people.com.cn]

Page: 1 2 3 4

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Saturday, December 29, 2007

Chinesepod - Listed insurers to disclose data regularly

?  ?

BIZCHINA / Center

Listed insurers to disclose data regularly

By Tu Lei (chinadaily.com.cn)
Updated: 2007-09-04 15:59

Listed insurance companies are to disclose their comprehensive loss
ratios and surrender rates regularly, according to a rule newly released
by the China Securities Regulatory Commission, said today's Oriental
Morning Post.

The rule requires insurance companies to release accounting figures and
financial indices in their regular reports, including earned premium,
investment assets, outstanding loss reserve (excluding life insurance),
unearned premium reserve (excluding life insurance), compensation and
payouts, growth rate of earned premium, return on investment, combined
ratio (excluding life insurance), comprehensive loss ratio (excluding
life insurance) and surrender rate (life insurance).

Insurance companies must also disclose the structure of premium
receivable at the end of the reporting period by insurance type and term
of the account.

Companies should also give explanations when the shareholders, who hold
more than 5 percent of the insurance companies' stocks, owe the premium
receivable.

Insurance companies should reveal changes in charges and commissions
payable, insurance policy mortgage loans and debt-offsetting assets, and
give explanations for the changes as well.

Meanwhile, the rule requires insurance companies to disclose the
information when changing general actuaries, experiencing financial
difficulties, and setting up, abolishing or merging branches as well as
changing insurance types and premium rates.

(For more biz stories, please visit Industry Updates)

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Chinese language - Deal inked on sale of China Eastern stake

?  ?

BIZCHINA / News

Deal inked on sale of China Eastern stake

By Jin Jing (China Daily)
Updated: 2007-09-03 09:03

China Eastern Airlines Co Ltd yesterday signed an agreement to sell a
combined 24 percent stake to Singapore Airlines and Lentor Investment Pte
Ltd, a wholly owned subsidiary of Temasek Holdings (Private) Limited, the
Singaporean government's investment arm.

In addition to the new shares issued for sale to its parent company,
China Eastern will raise a total of HK$11.34 billion (US$1.46 billion) in
the proposed transaction.

Special Coverage:
Markets Watch ?
R elated readings:
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Trading in China Eastern's shares is expected to resume today in Hong
Kong and Shanghai after being suspended in late May.

According to the agreement, China Eastern will issue a total of 2.985
billion new H shares for sale to the Singaporean companies at HK$3.8
each, representing a 1.9 percent premium on the closing price of
HK$3.73?on May 21. The company's A-share price closed at 9.6 yuan
(US$1.27) on that day.

China Eastern's parent company, China Eastern Airlines Group, has agreed
to buy 1.1 billion new H shares, while Singapore Airlines will take 1.235
billion and Lentor will purchase 649 million.

After the deal, China Eastern Group's holdings of China Eastern's A
shares will drop from 59.7 percent to 37 percent, while its H-share stake
will increase to 14 percent. Singapore Airlines and Lentor will
respectively own 15.7 percent and 8.3 percent of China Eastern.

According to the agreement, the two airlines will carry out comprehensive
business cooperation, covering air routes, flights, operations, service,
procurement, marketing and training.

"We chose China Eastern as our strategic partner because the networks of
our two airlines do not have much duplication and China Eastern has a big
domestic network, especially in Shanghai, China's financial hub,"
Singapore Airlines Chairman Stephen Lee said at yesterday's press
conference.

Luo Zhuping, board secretary of China Eastern Airlines, said yesterday
that the strategic cooperation will help improve the company's capital
structure and financial position. "The liability/asset ratio of China
Eastern is expected to fall from 95 percent to 80.2 percent," said Luo.

"The net asset value per share is expected to increase from 0.62 yuan?to
1.8 yuan, close to the average level of domestic airlines," he added.

Singapore Airlines has the right to nominate two persons to China
Eastern's board of directors, while Temasek will have the right to
appoint one person to the board, according to the agreement.

"We will assign a total of 12 people to China Eastern," said Kwa Chong
Seng, deputy chairman of Temasek.

(For more biz stories, please visit Industry Updates)

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Chinese language - Landmark anti-monopoly law passed

?  ?

BIZCHINA / Center

Landmark anti-monopoly law passed

(China Daily / Xinhua)
Updated: 2007-08-31 09:39

Foreign acquisitions of Chinese companies will be subject to stringent
new checks intended to protect national economic security under a new law
passed Thursday.

After 13 years on the drawing board, the Anti-Monopoly Law passed by the
Standing Committee of the National People's Congress (NPC), China's top
legislature, will come into effect on August 1, 2008.

"As well as anti-monopoly checks stipulated by this law, foreign mergers
with, or acquisitions of, domestic companies or foreign capital investing
in domestic companies' operations in other forms should go through
national security checks according to relevant laws and regulations" it
reads.

Related readings:

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?Need to break monopoly
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Foreign companies have begun to acquire major State-owned enterprises or
companies with famous brands, raising concerns about economic security.

China already has a basic security check system for foreign mergers and
acquisitions.

Foreign investors should apply for approval from the Ministry of Commerce
(MOFCOM) if their purchases of domestic companies affect national
economic security, take place in key sectors or lead to a transfer of the
operating rights of famous domestic brands, according to a regulation
issued by the MOFCOM along with five other government organs last year.

In December last year, the State Council, China's cabinet, released a
list of strategic sectors in which the State would retain control.

The list included military-related manufacturing, power production and
grids, petroleum, gas and petrochemicals, telecom manufacturing, coal,
civil aviation and shipping.

The law also bans monopolistic arrangements, such as cartels and other
forms of collusion, and provides for the investigation and prosecution of
monopolistic practices, while protecting monopolistic arrangements that
promote innovation and technological advancement.

(For more biz stories, please visit Industry Updates)

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?? ?? 1?? 2?? ??

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Learn mandarin - Central bank urges State-owned commercial bank reform

?  ?

BIZCHINA / Center

Central bank urges State-owned commercial bank reform

By Hao Zhou/Song Hongmei (chinadaily.com.cn)
Updated: 2007-08-28 14:39

The People's Bank of China, or the central bank, announced yesterday that
the reform of State-owned commercial banks will go further to enhance
their competitiveness.

The central bank urged commercial banks to launch a stock incentive
program, according to a document posted on its official website.

According to the document, the program, including staff shareholding and
senior supervisors' stock option systems, is part of an effort to deepen
the reform on human resources management, with an aim to increase
employees' sense of belonging to the company and to attract and retain
employees to serve the bank over the long term.

China Construction Bank (CCB) remains the only one of the Big Four
State-owned commercial banks that has set a stock incentive plan to allow
about 270,000 employees to acquire 800 million of its shares starting
July 6.

It was important to introduce qualified overseas strategic investors,
which helped in forming modern commercial bank management structure and
operating mechanisms, the central bank confirmed while concluding the
reform and reshuffle experiences.

Regarding cooperation with foreign investors, the central bank stressed
commercial banks bring in advanced management experience and expertise as
well as the appropriate financial products, strengthen technical
cooperation in areas such as corporate governance, product research and
financial innovation to improve their credit analysis and risk management
capabilities.

Related readings:

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?China banks not affected by US subprime crisis
?Banks violated rules of loans
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What's more, while State-owned commercial banks are pursuing reform and
cooperation with overseas financial giants, national interests and
financial security should be the?top concern, said the central bank in
the document.

The country began to overhaul its Big Four State-owned commercial banks
in 2003. Three of them, Industrial and Commercial Bank of China (ICBC),
Bank of China (BOC) and CCB has completed reform and gone public by
October last year.

Earlier this month, Central Huijin, China's State-owned investment
company, planned to inject US$40 billion into the Agricultural Bank of
China (ABC), the only one of the Big Four that remains unlisted as its
historical burden is relatively heavier. The injection would mark a major
step in ABC's shareholding reform. It would raise ABC's capital adequacy
ratio to eight percent, the required ratio for commercial banks in China.

Bank of Communications (BoCom), the country's fifth largest lender, was
also successively listed in the A-Share market in Chinese mainland and
H-share market in Hong Kong.

The document said financial conditions of these commercial banks are
improving. By the end of June, the capital adequacy ratio of ICBC was
13.67 percent, BOC 13.39 percent, CCB 11.34 percent and BoCom 14.17
percent, according to the People's Bank of China.

In terms of net profits, ICBC earned 41.39 billion yuan (US$5.48
billion), BOC 29.54 billion yuan, CCB 34.26 billion yuan and BoCom 8.92
billion yuan.

(For more biz stories, please visit Industry Updates)

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Friday, December 28, 2007

Learn mandarin - Housing for all

?  ?

BIZCHINA / Review & Analysis

Housing for all

(China Daily)
Updated: 2007-08-25 11:21

A government for the people should always be concerned about the woes of
those at the bottom of the society.

We are pleased to see that our cabinet, the State Council, is taking
active measures to solve housing problems for low-income city dwellers.

It held a working conference yesterday to break down the tasks for
providing affordable houses to urban poor with government subsidies.

The two-step ambitious plan is to cover all low-income urban families
with the low-rent housing system by 2010, benefiting about 10 million
people.

Indeed, the price of commercial houses has skyrocketed so that even
middle-income families are feeling the pinch, not to mention those who
just barely make ends meet, especially in urban areas where the cost of
living has soared.

According to statistics released by the National Development and Reform
Commission last week, property prices in the country's 70 large and
medium-sized cities rose by 7.5 percent year-on-year last month, the
highest since 2006.

Rising housing prices have prompted the State Council to issue a series
of counter measures since 2005.

The latest move is expected to usher in a more improved housing security
system nationwide, guaranteeing the basic needs for housing for the poor.

Catering to the housing needs of low-income people is not only an issue
of social equity but also attests to the government's capability to build
a harmonious society for all.

Given that China's booming economy, people's rising incomes and excessive
liquidity will keep housing demand strong in the second half of the year,
the government's resolve will also contribute to easing pricing pressure .

For one thing, more State-own land will be appropriated for building
cheaper and moderate-sized dwellings instead of luxury and large-sized
commercial houses. The mushrooming of such high-cost and expensive houses
has been one factor driving up real estate prices nationwide.

To facilitate the work, a special department under the Ministry of
Construction is expected to be set up soon. Its main task will be
ensuring an adequate supply of public housing.

Right now, about 291 large and medium-sized cities have launched low-rent
housing schemes. These cities will work to expand the umbrella for all
its poor residents.

Since low-rent houses are still unavailable in more than 60 cities, the
local governments concerned are facing a demanding task to increase
government investment by a big margin and use land in a more efficient
way in order to meet the central government's requirement.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Regulators plan environmental liability insurance

?  ?

BIZCHINA / Center

Regulators plan environmental liability insurance

(chinadaily.com.cn)
Updated: 2007-08-24 11:52

In the face of increasing pollution related accidents, the State
Environmental Protection Administration of China (SEPA) and the China
Insurance Regulatory Commission (CIRC) are preparing to establish a
mechanism promoting environmental pollution liability insurance, The
Beijing News reported.

Related readings:

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?SEPA pledges to close factories polluting Taihu Lake
?Include environment in plans: SEPA
?SEPA to launch 3 more watchdogs

A research team organized by the SEPA and the CIRC has been conducting
surveys among enterprises in Northeast China's Jilin Province and East
China's Zhejiang Province. Most of the surveyed expressed support for the
insurance program.

The environmental pollution liability insurance is to cover third party
liabilities arising from accidents at a particular insured site.

A report with results from the surveyed companies in the petrochemical,
hazardous wastes processing, and hazardous goods transport industries is
now complete. Local environmental bureaus across the country have been
instructed to keep a copy of the report for future reference.

Despite the endorsement of the new insurance program, China National
Petroleum Corporation and Sinopec consider it necessary to include
petrochemical accident coverage in the program, citing the two companies'
strong financial ability in dealing with such cases. Yet the introduction
of insurance may complicate the current system, they said.

Some enterprises suggested once accidents occur, companies should cover
the cost in coping with the accidents and compensating the third party.

In the report, insurance firms pushed for a comprehensive law regulating
the industry. Insurance firms surveyed are willing to cover direct losses
such as expense on cleaning up polluted sites, but refuse to pay for
indirect expenses like restoring the original ecological environment.

The research team suggested piloting the new insurance program in areas
where accidents are likely, including locations where hazardous products
are produced, transported, and stored. Suggested places include areas
around the Taihu Lake, Huaihe River, Yellow River, Songhuajiang River,
and downstream Yangtze River.

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Learn Mandarin online - Toy exports face closer scrutiny

?  ?

BIZCHINA / Center

Toy exports face closer scrutiny

By Zhang Lisheng (China Daily)
Updated: 2007-08-23 09:02

Inspection and quarantine authorities in South China's Guangdong Province
have bolstered efforts to further scrutinize the quality of toys exported
overseas.

Related readings:

?Investigation aims to ensure toy safety
?China to take measures to ensure toy quality
?More action urged on toy quality
?Chinese toy makers face new challenges

A new product quality licensing system was launched this week, and toy
exporters have been ordered to have their products assessed locally for
official inspection.

All toymakers that manufacture products for foreign markets will need to
apply for "quality licensing" within a month, according to an official
with Guangdong Entry-Exit Inspection and Quarantine Bureau, who declined
to be identified.

"We will keep a closer watch on not only finished products but also on
potentially dangerous chemicals and paints," she said.

"And we will keep records concerning suppliers of potentially dangerous
chemicals for toys and toy subcontractors."

The move follows two recent massive toy recalls in the United States.

US toy giant Mattel requested in early August that Foshan-based Lee Der
Industrial Co Ltd recall 967,000 plastic toys containing excessive
amounts of lead in the paint.

And RC2, a toy company in the US, requested Dongguan-based Hansheng
Wooden Products Factory recall 1.5 million wooden toys for a similar
reason in June.

The General Administration of Quality Supervision, Inspection and
Quarantine, the nation's top quality control watchdog, has since banned
both toy factories from exporting.

An official with Dongguan Entry-Exit Inspection and Quarantine Bureau,
who asked for anonymity, said toys made in his city were "generally good".

However, he suggested that toy manufacturers should pay more attention to
issues such as substandard small components, improper warning messages,
improper magnetic toy design and hazardous paints.

Li Zhuoming, vice-chairman of Guangdong Toy Industry Association, also
attempted to tamp down fears of Made-in-China toys

"What I can assure you is that Guangdong's toy production technologies
and capabilities are up to world standards," Li said. "Generally
speaking, the quality of our toy products is trustworthy."

The vice-chairman said Guangdong exported more than 300,000 batches of
toys to the United States in 2006, and only 29 were recalled.

Simon Yip, the head of a toy firm in Guangzhou, said the recalls were a
wake-up call for toy manufacturers in China.

"We can spare no efforts to guarantee the product quality from raw
material purchase to production," Yip said.

However, he urged foreign toy importers not to demand the lowest price
for the manufacture of their products.

"Toymakers have to be extremely economical in every way in order to
survive when the profit is so limited," Yip said.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - China to amend realty management law

?  ?

BIZCHINA / From the Watchdog

China to amend realty management law

(Xinhua)
Updated: 2007-08-20 15:38

China's legislature is to amend the urban real estate administration law
in line with the Property Law, which is to come into effect in October,
during an upcoming session.

The 29th session of the Standing Committee of the National People's
Congress (NPC) is expected to convene from August 24 to 30.

The Property Law grants equal status to the property of the state, the
collective and the individual.

The session will for the first time read the draft amendment to the Law
on the Administration of the Urban Real Estate, the Law on Science and
Technology Progress and the Law on the Prevention and Control of Water
Pollution, and the draft laws on labor dispute arbitration and recycling
economy.

The law on recycling economy will provide an important legal foundation
and a system design for China to better develop recycling economy which
contributes significantly to energy conservation and environmental
protection, said a NPC official.

Lawmakers will continue to discuss the draft amendment to the laws of
anti-monopoly, employment promotion and animal epidemic prevention, and
the draft law of urban and rural planning.

(For more biz stories, please visit Industry Updates)

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Thursday, December 27, 2007

Learn Mandarin online - QFII to participate in index futures trading

?  ?

BIZCHINA / Center

QFII to participate in index futures trading

(chinadaily.com.cn)
Updated: 2007-08-17 11:23

Qualified foreign institutional investors (QFII) will be allowed to
participate in the expanded CSI 300 index futures trading system, the
China Business News Thursday quoted a draft regulation, which solicited
securities insiders' opinions, as saying.

Related readings:

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?Conditions for stock-index futures are 'in place'
?The long road to index futures trading
?Rules changed to woo long-term QFII funds

The draft was handed out by securities regulators, and provoked
discussion regarding the participation of foreign firms. Currently, no
index futures trading is available in the Chinese mainland markets,
although at present a CSI 300 index futures trading system offers virtual
investments for domestic institutions.

A source close to the matter said that the draft imposed severe
restrictions on QFII's investment in the index futures. According to the
rules, QFII funds can invest at most 10 percent of their investment quota
in the financial derivatives as a way to hedge off market risks.
Considering QFII funds at present have a total quota of US$10 billion, a
maximum of US$1 billion would flow into the new market.

"The measure would provide QFII funds with another channel for investment
in financial derivatives of domestic stock indices. So far, quite a few
QFII funds have investments in the FTSE/Xinhua China A 50 Index in
Singapore," said Gao Zijian, a securities analyst with Orient Securities.

"After the launch of the CSI 300 index futures, QFII fund managers will
be able to analyze the difference in futures-spot prices between the two
markets and make more accurate judgments regarding the A-share market,"
Gao said.

Wu Guijun, from the department of financial futures of Essence
Securities, said: "The participation of QFII will not cause substantial
impacts on the A-share market, but excessive fluctuation may occur near
the maturity day, when index futures contracts are to be settled.
Therefore, investment in heavy stocks that have greater impact on the
index will create extra opportunities as well as risks."

(For more biz stories, please visit Industry Updates)

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Learn mandarin - Shanghai aims big with shopping festival

?  ?

BIZCHINA / Top Biz News

Shanghai aims big with shopping festival

By Chen Weihua (China Daily)
Updated: 2007-08-15 06:59

Shanghai is well known for its desire to become an international
economic, financial, trade and shipping center. But now, building an
international shopping center has been added to the city's great
ambitions.

The first-ever citywide shopping festival, to be staged from September 16
to October 8, will be a major achievement toward that goal, according to
a top official from the Municipal Economic Commission.

Zhang Xinsheng, deputy director of the commission and mastermind of the
2007 Shanghai Shopping Festival, said the city actually put forward the
goal to build an international shopping paradise as early as 1995.

"The shopping festival will be a huge attraction for the city's
fast-growing malls, shopping streets and commercial establishments," said
Liu Rongming, who works for the festival.

The event will coincide with the annual 14th Shanghai Tourism Festival
and the first Shanghai Import Commodity Fair, which will draw some 250
exhibitors from 12 countries and regions. A retailer conference, global
opportunities and sourcing forum and a new product exhibition will also
be held simultaneously.

More than 300 programs have so far been planned for the shopping
festival, including shows on the qipao (a tight-waisted women's dress)
cultural events, a world aquatic products fair, a Shanghai fish culture
exhibition, and numerous large-scale shopping fairs.

Some 10,000 local retail businesses are expected to participate in the
three-week festival. Organizers hope the festival, which is still only in
its experimental stage, will one day be comparable to the popular annual
shopping carnivals in Hong Kong and Dubai.

Shanghai has witnessed a rapid expansion of shopping spaces in the last
few years.

Statistics show the city had 47 shopping centers by the end of last year,
with revenue totaling some 31.82 billion yuan, up 27 percent over 2005.

"Shanghai jump-started building shopping malls, and the hardware has, in
fact, surpassed those in some of the largest cities of the world," said
Qi Xiaozhai, a retail analyst and head of the Shanghai Commercial
Information Center.

But it will take many years to realize the city's dream of becoming the
international shopping center.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Microsoft doc standard meets opposition in China

?  ?

BIZCHINA / Center

Microsoft doc standard meets opposition in China

(Xinhua)
Updated: 2007-08-13 16:55

The OOXXML, Microsoft's newest document standard, is facing growing
opposition as China's software producers, IT experts and netizens
continue to urge the government to vote against it at the International
Organization of Standardization (ISO) conference in September.

"An international standard can't be built on the private technologies of
a single company. If something goes wrong with the company, nobody can
open files based on its standard," said Co-Create Software (CCS) vice
secretary general Yang Chuanyan.

"We appreciate the sophisticated technologies of the MS document, but doc
standard has to be open to allow anybody, at anytime, to develop
applications to operate on the saved files," Yang said.

Microsoft told Xinhua that it had developed a converter capable of
translating between documents based on OOXML and documents based on Open
Document Format (ODF), an standard promoted by Sun Microsystems, IBM and
Oracle and approved as the international standard by the ISO.

Microsoft also held that multiple standards should co-exist and that it
was working with its Chinese partners to develop a converter between
OOXML documents and documents based on China's Unified Office document
Format (UOF), which was developed by domestic software producers and
adopted as the national standard this May.

The three newest standards are designed to develop office software with
more functions, such as allowing users to write sophisticated mathematic,
chemistry and physics formulae.

Related readings:
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?IT: Microsoft cuts Vista's China price to fight piracy
?Microsoft to buy stake in Changhong
?Microsoft buys land for R&D operations

"There are too many contradictions between the OOXML and the UOF, which
means almost no converter can make a 100-percent-accurate translation
while a lot of users, such as governments, require absolute similarity,
not only in content but also in lines," said a well-known academician
with the Chinese Academy of Engineering Ni Guangnan.

"Microsoft is working on the converter but when will it be finished and
how accurate can it be?" Ni questioned. "This leaves users no option but
to choose the MS software."

"The MS doc standard contains too many MS patents, which we have to get
round and re-develop new protocols for compatibility," said Beijing
Redflag CH2000 Software Co. Ltd. manager Hu Caiyong.

"It took almost five years for Chinese software producers to develop
software that is compatible with MS Office," Hu said.

Evermore Software vice president Zhang Lei is concerned that the approval
of the OOXML may help Microsoft strengthen its monopoly, considering the
huge amount of MS Office users.

"The MS will seize the entire market during our research and development
period," Hu continued, "which means the fledging domestic producers will
be destroyed and consumers will have few options."

Before 2004 when domestic Office software was not mature enough, MS
Office was priced at between 2400 yuan and 2800 yuan for governmental
procurement, said China Standard Software Executive Vice President Qin
Yong, who has been through the bidding process.

But in 2004, when the domestic-made Office software was more competitive
and priced at only 400 to 500 yuan, the MS lowered its price, immediately
to 700 to 800 yuan, Qin said.

"The sky won't fall in since domestic applications are now as good as MS
Office and maybe even better as they support more China's minority
languages, such as Yi," Hu added, "and domestic UOF Office software, half
or one third of the price of MS Office, will be on the market within a
year."

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - PPI of manufactured goods up 2.4% in July

?  ?

BIZCHINA / News

PPI of manufactured goods up 2.4% in July

(Xinhua)
Updated: 2007-08-10 16:53

China's producer's price index (PPI) for manufactured goods rose by 2.4
percent in July over the same period of last year, the National Bureau of
Statistics said here Friday.

Meanwhile, the purchase price index of raw materials, fuel, power
increased by 3.6 percent year on year, according to the bureau's latest
monthly report.

Of all the manufactured goods, the PPI of capital goods went up by 2.2
percent.

Related readings:
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?PPI slows on falling oil prices
?China May PPI up 2.8 percent

The PPI of mining sector went down by 0.1 percent and that of raw
materials sector went up 4.3 percent while that of processing sector went
up by 1.4 percent.

The PPI of consumer goods jumped by 3.1 percent with the price index of
food surging by 7.8 percent on last year and the price index of daily
necessities rising by 1.8 percent on last year.

The PPI of durable consumer goods dropped 1.1 percent on last year and
the PPI of crude oil and gasoline both went down by 5.1 percent on last
year.

(For more biz stories, please visit Industry Updates)

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Wednesday, December 26, 2007

Learn Mandarin online - Declaration of Heads of Member States of SCO

?  ?

CHINA / Background

Declaration of Heads of Member States of SCO

(Xinhua)
Updated: 2006-06-12 15:15

(Astana, July 05, 2005)

Unofficial translation by the SCO Secretariat

The heads of the member states of the Shanghai Cooperation Organisation
-- /further mentioned as the SCO or the Organisation/ -- of the Republic
of Kazakhstan, the People’s Republic of China, the Kyrgyz Republic, the
Russian Federation, the Republic of Tajikistan and the Republic of
Uzbekistan -- having gathered at a meeting of the Council of heads of SCO
member states in Astana on July 05, 2005, state the following:

I

A year on, since the last meeting of heads of memoperation between the
member states and is becoming actively engaged in interaction with other
international organisations and countries.

The SCO permanent bodies, which have been operating since 2004 --
Secretariat, based in Beijing, and Regional Antiterrorist Structure
(RATS), based in Tashkent, -- are becoming effective collective
instruments that provide an uninterrupted functioning of the
Organisation. The RATS executive body -- Council -- has been playing a
still more important role, which must increase further.

In order to enhance the effectiveness and coordination of the activity of
the SCO and of all its bodies and mechanisms, the heads of the member
states agreed that by their next high-level meeting in 2006 the Council
of national coordinators will present proposals with regard to
strengthening the role of Secretariat and renaming the Russian title of
its chief as Secretary-General.

The heads of the member states underscored the importance of taking
necessary measures on the fulfillment of agreements, which were reached
at the second meeting of secretaries of national security councils of SCO
member states in Astana on June 02, 2005.

In order to contribute to the fulfillment by the RATS of the Shanghai
Convention on combating terrorism, separatism and extremism, the heads of
the member states agreed to set up an institution of permanent
representatives of member states based upon the same principles,
according to which permanent representatives of the member states to the
Secretariat are now operating.

The heads of the member states express their confidence that the Concept
of cooperation between SCO member states on combating terrorism,
separatism and extremism, which has been adopted at the summit, will help
enhance the effectiveness of such cooperation and make the activity of
RATS more precise and targeted.

The heads of the member states assume that a meeting of the Council of
heads of government (prime ministers), which is due in Moscow in autumn,
2005, will provide true momentum for the realisation of the Action Plan
on fulfillment of the Program of multilateral trade and economic
cooperation between SCO member states, for getting down to a more
practical interaction between ministries and departments responsible for
external trade and economic activity, transport, environmental
protection, tackling of emergency situation, culture and education, as
well as establish a rational financial and budgetary policy of the SCO.

The SCO Business Council, the formation of which is entering into a final
stage, is to become a new source of stimulating the integration process
within the framework of the Organisation. Guided by the principle of
consensus, the parties will speed up the establishment of SCO Development
Fund. At the same time the parties agreed to strengthen interaction
between banks in order to provide financial support for the realisation
of projects of regional cooperation.

While emphasizing a great and constructive job, which was done by the
Council of ministers of foreign affairs, the heads of the member states
underline the importance of a practical functioning of the already
launched mechanism of consultations on international issues. They also
consider the task of providing a well planned and targeted development of
SCO external contacts an urgent one. Such issues should basically be
handled by the Council of ministers of foreign affairs, and current
coordination of external ties, being established by the SCO permanent
bodies, should be done through the Council of national coordinators and
in interaction with the Council of RATS.

The heads of the member states express their confidence that giving
Pakistan, Iran and India observer status in the SCO will expand the
Organisation’s opportunities in terms of developing multilateral and
mutually beneficial cooperation in various directions.

An important indication of the SCO’s growing authority on the
international stage is the obtaining by the Organisation of observer
status at the UN General Assembly in December 2004 and the signing of
memoranda of understanding between the SCO and CIS, the SCO and ASEAN.

In the immediate future the Council of national coordinators, jointly
with the Secretariat and RATS, must work out a general approach so that
the SCO could be able to develop contacts with the UN Secretariat, its
commissions and committees and fulfill already signed documents on
cooperation with other international organisations with maximum
efficiency, as well as establish ties with regional associations, forums
and interested countries built upon equality and mutual respect.

II

The heads of the member states point out that, against the backdrop of a
contradictory process of globalisation, multilateral cooperation, which
is based on the principles of equal right and mutual respect,
non-intervention in internal affairs of sovereign states,
non-confrontational way of thinking and consecutive movement towards
democratisation of international relations, contributes to overall peace
and security, and call upon the international community, irrespective of
its differences in ideology and social structure, to form a new concept
of security based on mutual trust, mutual benefit, equality and
interaction.

Diversity of cultures and civilisations in the world is a common human
value. At a time of fast developing information technologies and
communications it must stimulate mutual interest, tolerance, abandonment
of extreme approaches and assessments, development of dialogue. Every
people must be properly guaranteed to have the right to choose its own
way of development.

The heads of the member states are convinced that a rational and just
world order must be based upon consolidation of mutual trust and
good-neighborly relations, upon the establishment of true partnership
with no pretence to monopoly and domination in international affairs.
Such order will become more stable and secure, if it comes to consider
the supremacy of principles and standards of international law, before
all, the UN Charter. In the area of human rights it is necessary to
respect strictly and consecutively historical traditions and national
features of every people, sovereign equality of all states.

The heads of the member states voice their support for rational and
necessary reforms of the United Nations, aimed at enhancing the
effectiveness and authority of this organisation. It was confirmed that,
as the reforms got underway, it would be important to maintain as much
broader consensus, to not impose any timeframe for the sake of
overhauling the UN, as well as any voting on the projects, which are
still causing a major disagreement.

The heads of the member states proceed from the assumption that in the
21st century the Asia Pacific region is destined to play an important
part in providing peace and development, and declare against fault lines
appearing both in the Asia Pacific region and in its separate constituent
parts; declare for any misunderstanding and controversy among countries
to be resolved by peaceful means and through negotiations; declare for an
atmosphere of friendship, mutual understanding, interaction and
constructiveness to come to reign in this dynamic region. Contributing to
that is one of the main directions of the SCO activity.

The heads of the member states support the efforts by the Central Asian
countries, aimed at providing peace, security and stability in their
territory and in the whole region, and declare for the SCO to play an
active role in strengthening stability and economic development in the
Central Asia.

III

The heads of the member states believe that joint efforts by the member
states are required in order to effectively confront new challenges and
threats to security and stability in the region and in the world.

Such joint efforts must be of a complex nature and tangibly contribute to
providing the territories, population, key objects of life support and
infrastructure of the member states with a reliable protection from the
destructive effect of new challenges and threats, to creating necessary
conditions for steady development and elimination of poverty on the SCO
terrain, and include the following:

- development of a close cooperation between diplomatic, foreign,
external economic and law enforcement bodies, intelligence and defense
agencies of the member states;
- active exploitation of the mechanism of meetings of secretaries of
national security councils of the member states;
- formulation of effective measures and mechanisms of SCO joint reaction
to situations, which threaten peace, security and stability in the region;
- joint planning and conduct of antiterrorist activities;
- harmonisation of national legislations on issues of security provision;
- cooperation on the invention and implementation of modern technical
equipment used in fight against new challenges and threats;
- formation of an effective mechanism of mass media counteraction against
new challenges and threats;
- training of respective personnel.

The SCO member states will prevent any attempts on their territories to
prepare and commit acts of terror, including those aimed against the
interests of other countries, not provide asylum for individuals, accused
or suspected of conducting terrorist, separatist and extremist activity,
and extradite such individuals at respective requests on the part of
another SCO member state in strict accordance with the current
legislation of the member states.

Measures will be taken to improve and enhance the effectiveness of the
SCO Regional Antiterrorist Structure activity.
It is important that in the framework of fight against international
terrorism the SCO solve problems, dealing with the liquidation of its
material base, before all, through fighting illicit circulation of
weapons, ammunition, explosives and drugs, transnational organised crime,
illegal migration and mercenary activity. Special attention should be
focused on preventing terrorists from misusing items of weapons of mass
destruction, means of their delivery and on information terrorism.

Counteraction against the financing of terrorism, separatism and
extremism, including the legalisation of illegally made profits and
money, urgently requires the formulation of united approaches and
standards of monitoring money remittance, movement of financial resources
of organisations and individuals, suspected of involvement in terrorism,
as well as an active engagement by the SCO in respective international
efforts.

In compliance with the Agreement on cooperation in the fight against
illicit circulation of narcotic means, psychotropic substances and their
precursors, signed on June 17, 2004, a matter of high priority must be
the deepening of cooperation on tackling illicit circulation of narcotic
means, psychotropic substances and their precursors. The SCO is ready to
actively participate in the international efforts on the formation of
antinarcotic belts around Afghanistan, in formulation and realisation of
special programs, providing assistance for Afghanistan in order to
stabilise its social, economic and humanitarian situation.

We are supporting and shall continue to support the efforts by the
international coalition, conducting antiterrorist operation in
Afghanistan. Today we are noticing the positive dynamics of stabilising
internal political situation in Afghanistan. A number of the SCO member
states provided their ground infrastructure for temporary stationing of
military contingents of some states, members of the coalition, as well as
their territory and air space for military transit in the interest of the
antiterrorist operation.

Considering the completion of the active military stage of antiterrorist
operation in Afghanistan, the member states of the Shanghai Cooperation
Organisation consider it necessary, that respective members of the
antiterrorist coalition set a final timeline for their temporary use of
the above-mentioned objects of infrastructure and stay of their military
contingents on the territories of the SCO member states.

Protection and development of key objects of infrastructure and transport
are becoming ever more urgent in terms of preventing and tackling various
kinds of technogenic disasters, consequences of which have already become
an essential part of a set of threats to the new order. The SCO member
states will work out multilateral mechanisms on a system of monitoring
and exchange of analytical information in connection with possible
disasters and their consequences, as well as on the creation of necessary
legal and organising conditions for conducting joint rescue operations,
including education and training of personnel under united methods, its
quick transfer and compatibility of technical means.

The SCO will be making a constructive contribution to the efforts by the
world community on issues of providing security on land, at sea, in air
space and in outer space.

In order to increase the fight potential of the member states of the
Organisation for combating terrorism, separatism, extremism and other
challenges and threats, the SCO member states will consecutively expand
their cooperation in economic area, guided by the Program of multilateral
trade and economic cooperation and the Action Plan on its fulfillment.
Practical steps will be taken in the field of ecology and rational use of
natural resources.

Formulation of coordinated methods and recommendations on conducting
prophylactic activities and respective explanatory work among the public
in order to confront attempts of exerting a destructive influence on the
public opinion is a vital task. The member states will actively
contribute to the expansion of interaction within the SCO framework in
such areas as education, culture, sport and tourism.

The heads of the member states proceed from the assumption that joining
efforts in the SCO framework for the purpose of providing security and
expanding the Organisation’s potential does not hurt the interests of
other states and does not mean a movement towards the creation of any
bloc, fully corresponds to the SCO principle of outside openness and the
spirit of broad international interaction in confronting new challenges
and threats.

President of the Republic of Kazakhstan
N.Nazarbaev

President of the People’s Republic of China
Hu Jintao

acting President of the Kyrgyz Republic
K.Bakiev

President of the Russian Federation
V.Putin

President of the Republic of Tajikistan
E.Rakhmonov

President of the Republic of Uzbekistan
I.Karimov

(Source: SECTSCO.org)

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Chinese School - More foreign capital flows in property sector

?  ?

BIZCHINA / Center

More foreign capital flows in property sector

By Song Hongmei (chinadaily.com.cn)
Updated: 2007-08-08 14:54

An increasing amount of foreign investment capital flowed into China's
real estate market between January and June, according to the National
Bureau of Statistics (NBS).

Data from NBS show that in the first half of this year, realized foreign
investment in the property sector accounted for 24.1 percent of the
country's total used foreign capital, 11 percentage points higher than
the whole of last year.

Foreign investment in property projects averaged US$7.04 million between
January and February, up US$3.61 million from last year's average, while
investment averaged US$7.17 million between January and March, up US$3.74
million.

Special coverage:
Housing in China

Related readings:
?$924m private equity funds pour into realty
?Real estate investment surges 28.5% in 1st half
?Money flows from stocks to property
?Real estate focus turns to secondary cities
?Hot money inflows to be curbed

During January and February, 18 foreign companies invested more than US$2
million each in Southwest China's Sichuan Province. More than half of
them invested in the province's booming real estate market. A total of
US$169.15 million realized foreign capital was recorded in the property
sector, making up 79.3 percent of the province's total.

The growth rate of foreign capital in China's property sector surged
154.4 percent on a yearly basis in the first three months, 101.4
percentage points higher than all of last year. That was also 127.5
percentage points higher than the growth rate of total investment in the
property sector during the same period.

Growing foreign investment in the property sector will propel unbalanced
development of housing supply in China, as most, if not all, of the
investments go to medium-to-high-end housing markets, some analysts said.

China's vacant commodity residential buildings of key property developers
totaled 22.42 million square meters in floor space last year, and more
than 70 of them were units of more than 100 square meters each.

Analysts attributed the increasing vacant housing mainly to the short
supply of affordable housing for lower income earners and the escalating
housing prices to speculative purchases of medium-to-high-end houses.

Moreover, more foreign capital in the property sector may create tighter
competition for other sectors for sources of funding.

(For more biz stories, please visit Industry Updates)

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Chinese School - Finance: Shenzhen underground finance center busted

?  ?

BIZCHINA / Biz Media Digest

Finance: Shenzhen underground finance center busted

By Xin Zhiming (China Daily)
Updated: 2007-08-07 11:09

Foreign exchange and public security authorities have broken up a
Shenzhen underground bank that was doing business nationwide, the State
Administration of Foreign Exchange (SAFE) said yesterday.

The bank provided illegal funding for its clients to invest in the stock
and property markets as well as other businesses.

The funds could amount to tens of billions of yuan, according to a
statement on the SAFE's website.

Some major State enterprises were also involved in the illegal deals, the
SAFE said, without naming them.

As the domestic stock and property markets continue to boom, analysts
said many enterprises, including some major State firms, have ploughed
money into the markets for quick profit.

Last week, the State-owned Assets Supervision and Administration
Commission (SASAC) said the China Shipping (Group) Company and the China
Nuclear Engineering and Construction (Group) Corporation had used bank
loans to invest in the stock and property market respectively. The SASAC
discovered the irregularities in its performance appraisal of 150 central
State enterprises under its control.

The foreign exchange regulator has stepped up its efforts to crack down
on illegal funding and has conducted nationwide checks to prevent foreign
speculative capital, or hot money, coming into the country to push up
domestic asset prices.

"Some of the funds of underground banks may have come from overseas in
the form of speculative money," Li Zhikun, analyst with the China Jianyin
Investment Securities, told China Daily.

The SAFE said 55 accounts had been frozen in the Shenzhen raid, involving
4.2 million yuan ($556,000).

The bank, however, had conducted transactions totaling 4.3 billion yuan
in its seven years of operation.

Six people have been detained, including the boss of the bank, surnamed
Du, the SAFE said.

Du's clients were from all 31 provinces and regions of the country. The
bank's major clients were from the coastal provinces of Guangdong,
Jiangsu and Zhejiang.

(For more biz stories, please visit Industry Updates)

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Chinese School - Survey: Most individual securities investors play small

?  ?

BIZCHINA / Center

Survey: Most individual securities investors play small

By Dai Yan (chinadaily.com.cn)
Updated: 2007-08-03 16:08

About 70 percent of individual investors own investments of less than
500,000 yuan (US$66,024) in securities, according to a survey by the
Securities Association of China and China Securities Investors Protection
Fund Co Ltd.

The survey was carried out from June 11 to July 5 among 2,880 individual
and institutional investors in 73 stock exchange outlets in 17 cities
including Beijing, Shanghai, and Guangzhou.

The survey shows 25 percent of the surveyed individual investors set
aside less than 100,000 yuan for investment, and some 70 percent invest
over one third of their total household financial assets in the stock
market. About 13.4 percent of investors use all of their financial assets
to buy stocks.

According to the survey, experienced individual stock investors source
8.3 percent of their capital from borrowed money or bank loans, and the
figure is 10.81 percent for relatively new investors, those who started
stock investment in 2006 or 2007.

Special coverage:
Markets Watch
Related readings:
?New fund investors outnumber stock investors
?Individual investors need more education
?Nationwide mad bull fever
?New accounts surge in A-share markets

Many individual investors failed to practice their investment concept.
Over 60 percent of individual investors say they pursue rational
investment and stable return, and can accept a maximum 20-percent loss,
while over 50 percent hold stocks only for three months or less. Average
stock-holding term of the surveyed is 116 days.

About 60 percent of the individual and institutional investors
respectively believe the bullish stock market would last for at least one
year. Altogether 54 percent of individual investors have no plan to raise
capital this year, and 17 percent will invest more. Individual investors
expecting a return of between 10 and 50 percent account for 60 percent of
the total.

Fifty percent of individual investors are between the ages of 33-54,
according to the survey. Unemployed, retired and freelance workers
account for 35.5 percent, and company employees and technicians 31.1
percent. About 60 percent have bachelor's degree or above, and 70 percent
earn less than 5,000 yuan per month.

In terms of experience, 52 percent of individual investors began
investing before 2000, while 23 percent first invested in 2006 or 2007.

About 80 percent of individual investors say they are aware of risks in
fund investment. Nearly 60 percent intend to hold funds for the medium
and long term, and over 40 percent will keep holding even when fund value
slumps. Nearly 60 percent choose stock funds. Sixty percent of individual
investors profited over 30 percent from funds in 2006.

According to the survey, 86.9 percent of the institutional investors
think it urgent for the financial market to conduct product innovations.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Chinese language - Pampers to expand product range, services in China

?  ?

BIZCHINA / Overseas Investment

Pampers to expand product range, services in China

By Fa Xing (China Daily)
Updated: 2007-08-02 11:51

Pampers, the world's leading diaper brand, hopes to gain more share in
the Chinese market, one of its fastest-growing worldwide, by expanding
its product range.

Pampers, one of the biggest business categories within the world's
largest consumer goods company P&G, plans to drive up its sales in China
by spending more on product development and providing more value-added
services to customers.

The US diaper brand, which entered China in 1997, has so far sold 5
billion diapers in the country.

Worldwide, about 30 million babies in 90 countries are using Pampers
diapers every day.

"We care for our customers and we attend to their particular needs by
devoting more of our resources into product research and development
activities," said Steve Morse, marketing head of Pampers, P&G, China.

"And we have put considerable emphasis on developing products catering to
the market in China," Morse said.

Pampers has poured 1 billion yuan in China since 1997, including in
research and development (R&D), assembly line and human resources.
Globally, Pampers spends about $130 million on product R&D.

Pampers' growth engines in China, which used to be concentrated in the
major cities, have expanded to include more second- and third-tier cities
as the living standards there increase with the booming economy. And the
product range has also expanded to cater to more diverse customer needs,
Morse said.

Pampers, which competes with global brand Huggies and local brand
Goodbaby, is the only brand with cross-tiers products. Pampers, Morse
said, "is not simply a diapers producer" but is also a value-added
services provider.

"We will help customers to know more about how to take care of babies and
offer value-added services such as baby-rearing knowledge and expertise
to them," said Morse.

Pampers, he said, shoulders "social responsibility" in this regard.

(For more biz stories, please visit Industry Updates)

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Chinese School - First corporate bond lined up

?  ?

BIZCHINA / Center

First corporate bond lined up

By Wang Lan (China Daily)
Updated: 2007-08-01 09:38

China Yangtze Power, which owns and operates the power plant of the
160-billion-yuan Three Gorges Dam Project, is preparing to issue the
first corporate bond in China, a source said.

Several other fast-growing companies listed on the Shanghai and Shenzhen
bourses are also making preparations to raise fresh capital directly from
investors through bond issues, market sources said.

Their enthusiasm to tap this new source of capital was triggered by the
China Securities Regulatory Commission's announcement in June that it had
begun drafting rules on corporate bond issues. Until now, only a handful
of State-owned enterprises had been allowed to issue bonds approved by
the National Development and Reform Commission.

"The launch of corporate bonds would help encourage the issuing companies
to improve their operations and management because the cost of raising
capital in the bond market is largely based on the asset values and the
credit ratings of the issuing companies," said Lian Mengke, a bond
analyst with Haitong Securities in Shanghai.

China Yangtze Power, the country's leading power generating company,
based in Yichang of Central China's Hubei Province, is reportedly
planning to issue bonds totaling 8 billion yuan. Further details of the
issue remain unavailable.

"We are in the preparation stage and things change all the time," said
the source. "There's nothing more I can say at this time."

Bond experts and analysts said corporate bonds would create a more liquid
long-term capital market that can better reflect the true cost of
capital. The introduction of corporate bonds would help bring yields more
in line with market forces.

Nie Wen, an analyst with Industrial Securities, said the launch of
corporate bonds would allow more domestic companies to gain access to the
long-term capital market.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Jim Rogers cautiously bullish on China stocks

?  ?

BIZCHINA / News

Jim Rogers cautiously bullish on China stocks

(Reuters)
Updated: 2007-07-27 14:23

China's stock market is dangerously high but environmental protection,
water, railways and renewable energy stocks are still worth holding, fund
manager and investment author Jim Rogers said on Thursday.

Rogers, in a presentation at a conference, also reiterated his view to
dump dollars and bonds and stay bullish on commodities, such as oil and
aluminum. Gold was still going strong, but copper prices look stretched,
he added.

A prominent China bull, Rogers said investors should be cautious after
China's benchmark Shanghai composite index quadrupled over the past two
years.

It closed at a record high on Thursday.

"The stock market is going through the roof over the past three years.
That's always a dangerous sign," said Rogers, who co-founded the Quantum
hedge fund with billionaire investor George Soros in the 1970s.

"And if you are new to the stock market, you probably think this is the
way that things always work. This is not the way the market always
works," he said.

"I'm not suggesting you sell your stocks. But I want you to know this is
not usual," he said, adding that some Chinese shares were going to
collapse as they were "crazily priced."

But Rogers sees opportunities in Chinese companies involved in sectors
such as environmental protection, water, green energy, railways and
education, where the government and public were expected to spend a lot
of money.

"I'm not selling my Chinese shares. As I said, I bought more of them last
week. If the market triples again in the next year I would probably have
to sell my Chinese shares," said Rogers, who bought his first Chinese
stocks in 1999.

Rogers, 64, urged investors to get exposure to the Chinese currency, the
renminbi , and dump the U.S. dollar, which he calls "a terribly flawed
currency" as the United States is deep in debt.

"Renminbi is going to be one of the strongest currencies for many years
to come," he said.

Bonds around the world are headed down and that trend would also continue
for many years to come, he said.

"If you invest in bonds anywhere in the world, sell it," he said. "If you
invest in shares, think of Asia," he added.

Commodities such as oil and metals are expected to stay strong for many
years, driven by supply and demand, Rogers said.

He said he favored aluminum over copper right now because copper prices
had shot up, and said property in China is getting expensive.

"I will not buy in Shanghai or Beijing at the moment."

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Rogers sold emerging markets, except China
===========================================================================
� Jim Rogers still confident on China's market
===========================================================================

Learn Chinese online

Learn mandarin - Insurers to pour $39b into overseas market

?  ?

BIZCHINA / News

Insurers to pour $39b into overseas market

By Hu Yuanyuan (China Daily)
Updated: 2007-07-26 08:32

More than 300 billion yuan ($39.5 billion) is ready to flow into the
international market with China's insurance companies getting government
approval to invest abroad.

The new rules that became effective yesterday raised Chinese insurers'
overseas investment ceiling from 5 percent of their assets to 15 percent,
said a China Insurance Regulatory Commission (CIRC) statement. The CIRC,
Bank of China and the State Administration of Foreign Exchanges jointly
issued the rules.

At the end of 2006, the industry's total assets were valued at 2 trillion
yuan ($263 billion).

The immediate beneficiary of the new rules may be Hong Kong. Mainland
companies' shares traded in Hong Kong, or H shares, are likely to be "the
main target" of insurers, said Central University of Finance and
Economics professor Hao Yansu, who specializes in the insurance industry.

Shenyin & Wanguo Securities Co analyst Yu Bin said: "Given the continuing
revaluation of the renminbi, the overseas investment of most insurers is
likely to target equities rather than bonds."

According to the rules, only insurance companies with a capital adequacy
ratio of 10 percent or more can invest abroad. The products that they can
invest in include bank deposits, commercial bills, bonds, monetary funds
and stocks.

But the CIRC statement has warned insurers to be "very careful" while
investing in financial derivatives.

Orient Securities Company analyst Wang Xiaogang said it's unlikely for
the mainland stock market to get a jolt from the move because "some of
the domestic capital has already flowed into Hong Kong and the general
price gap between H shares and A shares in Shanghai and Shenzhen is
narrowing".

Insurers will cash in on the chance to expand their investment overseas,
even though the domestic stock market is passing through its best phase
in seven years. But again, overseas expansion is important for the
diversification of their investment portfolios, he said.

(For more biz stories, please visit Industry Updates)

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Monday, December 24, 2007

Learn mandarin - Finance: Shanghai to hold retail banking summit

?  ?

BIZCHINA / Biz Media Digest

Finance: Shanghai to hold retail banking summit

(CRIENGLISH.com)
Updated: 2007-07-24 14:39

Worldwide professionals from the banking industry will gather in Shanghai
this October, swapping their ideas on the development of the retail
banking sector.

With the support of the Shanghai Finance Association, Shanghai Government
and other key authorities, the Shanghai Finance and Global Leaders
Institute will jointly convene the Retail Banking Asia 2007 from October
17 to 18, 2007 in Shanghai.

The conference aims to gather experts from central banks, commercial
banks, financial service providers, financial equipment vendors, IT and
software providers and consulting and law firms worldwide, in a bid to
upgrade knowledge, strengthen established relations, expand business
territories and secure market share.

According to analysis from McKinsey, retail banking in China is set to
increase rapidly and become the banking sectors major growing point.

(For more biz stories, please visit Industry Updates)

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Chinese language - 14% truck tyre tubes fail safety tests

?  ?

BIZCHINA / Center

14% truck tyre tubes fail safety tests

(Xinhua)
Updated: 2007-07-23 10:45

China's top quality control watchdog announced that 14.3 percent of the
local-made truck tyre tubes failed safety tests in its latest quality
check-up.

The General Administration of Quality Supervision, Inspection and
Quarantine said it checked 51 truck tyres and tyre tubes produced by 30
companies in nine provincial-level regions including Liaoning, Jiangsu,
Zhejiang and Shanghai.

?
Used tires are seen at a recycling station in Xiangfan, Hubei Province
July 20, 2007.?The top quality control watchdog announced that 14.3% of
the local-made truck tyre tubes failed safety tests in its latest quality
check-up. [AP]

The watchdog said 85.7 percent of the 14 tyre tubes, and all the 37 tyres
were up to standards.

The tensile strength of some tyre tubes did not meet standard and were
inclinable to burst when the trucks run on roads, said the
administration. It added some tubes valves were not strong enough adhered
to the tubes.

The General Administration of Quality Supervision, Inspection and
Quarantine also announced that six percent of liquors were not up to
standards.

The proportion of total ester and ethyl hexanoate in some of the 100
liquors produced by 95 firms in eight provinces did not meet standard, it
said.

Related readings:
?Chinese tires targeted in US
?Half tires have safety hazards
?Demand for rubber expected to continue to soar
?Tyre market controlled by foreign investors

It said 2.5 percent of 120 kinds of fruit and vegetable juices and
beverages produced by 110 companies in cities of Beijing and Shanghai and
ten provinces failed safety standard. They were found containing
excessive saccharomyces cerevisiae and saccharin sodium salt and with
problematic labeling.

The quality control watchdog added that all of the tyre tubes, liquors
and fruit and vegetable juices and beverages were sold domestically and
were not exported abroad.

The administration has ordered local branches to urge the problematic
firms to finish the improvement of products quality during a given period
of time.

(For more biz stories, please visit Industry Updates)

Chinese language

Learn mandarin - Singapore-suzhou Industrial Park

CHINA / Invest in Jiangsu

Singapore-suzhou Industrial Park
(jschina.com)
Updated: 2006-05-25 11:33

Suzhou and Singapore industrial Park was established cooperatively by
China and Singapore governments. It is a great project that will leap
over the turning point of Centuries. China side is responsible for the
administrative management of the park while the investment attraction and
the exploitation of the park is being carried out by Singapore side.
Suzhou and Singapore Industrial Park is going to be constructed as a
high-standard industrial zone adapting to the international economic
development.

Suzhou and Singapore Industrial Park will integrate with national
conditions and use the experiences of Singapore in its economic
development and administrative management. A development company jointly
founded by China and Singapore financial group takes the responsibility
of the land exploitation in this park. The exploitation area of the park
in the first phase is 8 square km while the total land exploitation will
be 70 square km, and the estimated total investment is US$ 20 billion.
Suzhou and Singapore Park is a new model for China in its opening up to
the outside world. It will offer entrepreneurs and investors from all
over the world an investment environment with open policies and efficient
management.

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Learn Mandarin online - China, US to discuss food safety

?  ?

BIZCHINA / Center

China, US to discuss food safety

(Xinhua)
Updated: 2007-07-18 16:15

China and the United States will hold a meeting in Beijing to discuss the
detention of four kinds of China's seafood exports by the US and the
setting up of a collaboration mechanism on food safety, a senior Chinese
quality control official said on Wednesday.

The five-day consultation between Chinese food safety authorities and the
Food and Drug Administration (FDA) of the United States is scheduled to
start on July 31, said Li Yuanping, an official in charge of the safety
of import and export products at the General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ).

Li also said that the recent suspension of sale of chicken feet, pig ears
and other animal products from seven US companies was conducted according
to a memorandum of understanding signed between the administration and
the US Department of Agriculture.

The meat was contaminated with salmonella, additives and veterinary
drugs, according to the administration.

In response to criticism from overseas, he said that China was not
counteracting overseas complaints by picking holes in imports into the
country.

It's not the first time China has suspended meat imports from the US --
the administration suspended contaminated meat imports from 15 US
companies in 2006, Li said.

Meat imports from 13 of those companies have resumed, according to Li.

The FDA, under the US Department of Health and Human Services, said on
June 28 it would detain three types of Chinese farm-raised fish --
catfish, basa and dace -- as well as shrimp and eel unless suppliers
could prove the shipments contained no harmful residues unapproved in the
U.S. for use in farmed seafood.

Li Changjiang, the top quality control official with AQSIQ, urged the US
to "properly deal with the problem as soon as possible" during a
telephone conversation with US Health and Human Services Secretary
Michael Leavitt, adding that an "indiscriminate" ban of all exports of
such Chinese aquatic products was "unacceptable".

(For more biz stories, please visit Industry Updates)

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Sunday, December 23, 2007

Chinese language - Investors start to shun stock market amid volatility

?  ?

BIZCHINA / Center

Investors start to shun stock market amid volatility

(Xinhua)
Updated: 2007-07-17 15:49

The volatility of stock market has led to a sharp decline in the number
of newly opened trading accounts in China, the China Securities
Depository and Clearing Co Ltd announced on Monday.

Investors opened 66,100 A-share accounts on Friday, the second
consecutive day when the number of new accounts opened daily was below
70,000, according to the company.

It said the A-share accounts opened each day dropped to 99,957 on July 2,
the first time lower than 100,000 since May 12, and remained under
100,000 for ten consecutive days. The number was over 300,000 at its peak
time.??

The share prices went up and down last week, with the Shanghai Composite
Index closing at 3914.4 points on Friday, up 3.5 percent over the
previous week.

Analysts said the recent stock volatility has dampened investors'
enthusiasm and prompted them to halt their frenzy rush to the stock
markets for higher earnings.

Investors' heavy fund inflow had pushed the Shanghai Composite index to a
record high of 4,335.18 points on May 29, an increase of 62 percent since
the beginning of the year.

Investors started to lose confidence in the stock market since it
experienced ups and downs from May 30 when China tripled the stamp tax
for stock transactions amid a spate of government measures to cool the
equity market.

The total accounts on both Shanghai and Shenzhen stock exchanges,
including A-share, B-share and mutual fund accounts, reached 108 million
as of Friday, according to China Securities Depository and Clearing Co
Ltd.

(For more biz stories, please visit Industry Updates)

Chinese language

Chinese Online Class - Boost home demand to curb surplus

?  ?

BIZCHINA / Trade Surplus

Boost home demand to curb surplus

By Shanguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-12 15:33

Expanding domestic demand is key to curbing China's soaring trade
surplus, according to a report published by People's Daily today.

China's trade surplus continues to grow in absence of a series of
tightening measures.

The surplus soared to US$112.5 billion in the first half of this year, up
83.1 percent from a year earlier. The surplus for one month hit a record
of $26.9 billion in June.

The dramatic increase was a result of enterprises rushing to export as
much as they could ahead of July 1, when the value-added tax rebate was
either scrapped or reduced as part of efforts to trim the surplus,
Ministry of Commerce spokesman Wang Xinpei said.

Exports in June soared 21.7 percent to US$179.63 billion while imports
grew 14.2 percent to US$76.36 billion, according to statistics from the
China Customs.

China exported 6.36 million tons of steel products in June, up 43.56
percent from the same period last year and 3.08 percent higher than the
May figure of 6.17 million tons.

According to Wang, in the second half of this year, growth in the trade
surplus will slow.

Expanding productivities, vigorous exports, and bleak domestic demand are
major reasons for the soaring trade surplus, according to a research
report by Standard Chartered Bank.

Steel and some labor intensive industries such as textiles are the major
contributors to trade surplus growth.

For example, statistics from the customs agency show that in the first
six months of this year, China exported US$73.52 billion worth of
clothing products, up 17.44 percent year on year.

More than US$50 billion of the textile sector's trade surplus accounted
for nearly half of the nation’s US$112.5 billion in surplus in the
first half of this year.

High exports levels also resulted in excessive liquidity and pollution
problems.

An expert from the commerce ministry said that the surging trade surplus
was not due to strong growth of exports, but resulted from the fact that
imports were slowing down.

Experts also said that expanding domestic demand was the key to resolving
the growing trade surplus, and that China should increase imports to
balance its foreign trade and consume those products domestically.

(For more biz stories, please visit Industry Updates)

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