Monday, December 31, 2007

Chinesepod - Market climbs despite rate rise

?  ?

BIZCHINA / Center

Market climbs despite rate rise

By Jin Jing (China Daily)
Updated: 2007-09-18 10:54

Investors monitor?stock prices at a securities?company in Jinan, Shandong
Province, September 17, 2007. China's major stock?index surged to a
new?record on Monday,despite an interest rate hike announced?last Friday.
[China Daily]?

"The things that are worrying the central bank are asset prices and the
potential for bubbles, and the inflationary consequences of asset price
inflation," said Stephen Green, an economist at Standard Chartered Bank.

The Shanghai Composite Index has already surged 102.6 percent since the
beginning of this year, and the average price-earnings ratio of A shares
is as high as 43 times, a jump of 44 percent from the start of the year,
according to TX Investment Consulting Co ltd.

Shang Fulin, chairman of the China Securities Regulatory Commission,
recently cited stock market "abnormalities" to illustrate the
"accumulated" risk that has long been ignored by investors.

The government has taken many financial measures to mop up liquidity this
year, including issuing 150 billion yuan worth of treasury bonds,
speeding up the return of red chips to the mainland, and a pilot scheme
to allow mainlanders to invest in the Hong Kong market.

We are waiting for the 17th National Congress of the Communist Party of
China to see what the government will do to fight inflation, and the
stock market may respond to that," said Zhu.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - China's mobile phone users exceeds 600m

?  ?

BIZCHINA / Center

China's mobile phone users exceeds 600m

(Xinhua)
Updated: 2007-09-17 09:15

?

A man looks at a mobile phone at a store in Yichang, Hubei Province in
this April 15, 2006 file photo. China has more than 600 million mobile
phone users by June this year, which means every one in five mobile phone
users is Chinese, a senior official said on September 16, 2007.
?[newsphoto]?

China has more than 600 million mobile phone users by June this year,
which means every one in five mobile phone users is Chinese, a senior
official said on Sunday.

The number included 80 million personal handy phone (PHS) users, said Xie
Feibo, vice director of the Radio Administration Bureau of the Ministry
of Information Industry (MII) at a forum on Chinese small and
medium-sized enterprises held in Guangzhou of South China's Guangdong
Province.

Official figures showed that the nation's cell phone users increased by
40.56 million from the end of last year, 6.76 million a month on average.

Meanwhile, fixed-phone users had only grown by 4.86 million to 372
million.

In 1987, when China introduced its first mobile telecommunications
equipment, there were little more than 700 users. In 2001, its cell phone
users passed the 100-million mark, the largest in the world, and the
figure turned to 300 million in May 2004, 400 million in January 2006.

The trend shows no sign of stopping as China still has a vast rural
market to tap and city dwellers' appetite for more vogue, media-rich and
web-accessible handsets continues to boom.

(For more biz stories, please visit Industry Updates)

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Chinese language - PICC PropertChinese Online Class - Sunshine Life's preparation team unveiledy teams up with auto research center

?  ?

BIZCHINA / China Insurance

PICC Property teams up with auto research center

By Hao Zhou (chinadaily.com

?  ?

BIZCHINA / China Insurance

Sunshine Life's preparation team unveiled

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-09-14 10:10

Related publication:

Related readings:
?Zurich banks on insurance market
?CIRC mulls rules for pension insurance management
?Regulators plan environmental liability insurance

Sunshine Life Insurance Co Ltd, having received establishment permission
one month ago, has unveiled its preparatory panel, the National Business
Daily said on Monday.

Zhang Weigong, the board chairman and president of Sunshine Property and
Casualty Insurance Co Ltd, will assume leadership.

The other five members in the panel are: Pan Hongyuan, former deputy
general manager of Ping An Life Insurance, Ning Shoubo, former deputy
general manager of Sino-US MetLife, David, former chief sales operator of
Sino-US MetLife, Zhang Yanan, former deputy general manager of Huatai
Life Insurance, and Chen Bing, the chief actuary and deputy general
manager of ING Capital Life.

All of them have joined Sunshine Life.

...

The full text is available in the?China Insurance.

(For more biz stories, please visit Industry Updates)

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.cn)
Updated: 2007-09-14 10:09

Related publication:

Related readings:
?Zurich banks on insurance market
?CIRC mulls rules for pension insurance management
?Regulators plan environmental liability insurance
PICC Property & Casualty Insurance Co Ltd signed an agreement with China
Automotive Technology and Research Center on establishing strategic
cooperative partnership, at the 2007 International Forum on Chinese
Automotive Industry Development in Tianjing.

The two parties will pursue extensive and deep cooperation in the field
of automobiles’ security, traffic accidents analysis, and automotive
industrial standards, in an effort to combine successes in the automotive
and auto insurance industries.

Meanwhile, PICC Property will become the pilot insurance cooperator in
the Chinese new car assessment plan (C-NCAP), the most influential
security test for new car models in China. PICC Property may decide auto
insurance premium on C-NCAP test results.

...

The full text is available in the?China Insurance.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Time to look beyond numbers in China-US trade gap

?  ?

BIZCHINA / Review & Analysis

Time to look beyond numbers in China-US trade gap

By David Michael (China Daily)
Updated: 2007-09-13 09:17

It is important to keep the big picture in mind. US policymakers should
be advocating the benefits of greater trade to both sides, rather than
seeking to erect barriers. By doing so they might also gain the leverage
needed to convince China to make some tough economic and social choices.

For instance, Chinese regulators might be convinced that it is in their
own interest to crack down on copyright and foreign patent violations and
improve intellectual property protections, issues that greatly concern US
companies.

The US also might be in a better position to encourage China to move
forward with meaningful environmental protection. This would include
implementing much stronger environmental emissions standards, investing
in new refineries capable of processing cleaner fuels, and mandating that
domestic Chinese producers comply with globally accepted pollution
standards.

China also needs to confront other problems. Despite its emergence as a
global economic powerhouse, the country is still home to 18 percent of
the world's poor, with 150 million people subsisting on less than US$1
per day.

But China's rapid economic development is lifting tens of millions of
people out of poverty, according to the World Bank. That is something
Americans should be happy about.

They should also be happy that Chinese people have an overall favorable
opinion of the US. A 2006 Pew poll of global attitudes, for example,
revealed that Chinese peoples' attitudes toward America are far more
favorable than the opinions held by some of its more traditional allies.

In considering the US-China trade relationship, Americans should reflect
on the following: The past decade of rising trade with China has helped
tens of millions of people in China rise out of poverty, has helped fuel
generally favorable attitudes toward Americans, and has helped provide
important export and investment markets for US companies, with the
potential for substantially more growth in the future. Is there some
other plausible scenario more positive than that?

The US and China each bring to the table distinct advantages and
disadvantages. China's main advantages are its low-cost labor pool, its
impressive infrastructure that enables companies to gain access to this
labor, and its pro-investment policies. Neither currency adjustments nor
trade barriers will change this situation.

Indeed, Oxford Analytics has recently reported that even a 25 percent
appreciation in China's currency would bring about only a marginal change
in the trade deficit.

Asking China to turn back the clock on its growing role in the global
economy is not the answer. Indeed, what will become really crucial in the
years ahead will be the task of working with China on issues of vital
common interest.

The decisions that China makes about growth, environmental and energy
policies, and global warming will soon be the most important questions
for all of us. The US would be well served to ensure that these issues
are prominent in its overall China relationship.

The author is a senior vice-president and director with the Boston
Consulting Group's Beijing office

(For more biz stories, please visit Industry Updates)

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Sunday, December 30, 2007

Learn Chinese online - Good job or rich husband?

?  ?

BIZCHINA / Biz Life

Good job or rich husband?

By Zheng Caixiong (China Daily)
Updated: 2007-09-11 14:38

Having a good job is pretty important to many women - that is unless they
can find a wealthy husband to look after them.

A recent survey of women in Guangdong Province revealed that almost half
would rather prefer marry a rich man than get a good job.

At 45.2 percent, the figure is 8.9 percent higher than the country's
average.

The survey showed many women are still very conservative in the province
that borders Hong Kong and Macao special administrative regions,
according to an official from Guangdong Provincial Women's Federation.

The federation conducted the "Survey and Analysis on the Social Gender
Concepts in Guangdong Province" early this year.

"A large percentage of local women still have the traditional idea of
relying on their husbands after they have married," said the official who
did not want to be named yesterday.

Women who are less educated have a stronger desire to marry rich men and
rely on their husbands, she added.

Chen Wenqi, a local white collar worker, however, said she would refuse
to rely on her future husband.

Chen said she would never marry a rich man who she did not love at all.

"Men and women should be equal both at work and at home and wives should
not rely much on their husbands if they have the ability to work," Chen
told China Daily yesterday.

The 27-year-old works for a local foreign-funded logistics company.

The survey also revealed the number of rural women who said a rich
husband was better than having a good job, was 11.7 percent more than
their urban counterparts.

"The tendency of independence often goes against the economic and social
status of the women," Wang Xiongjun, a sociology PhD student at Peking
University, said.

"The more you can support yourself with a decent life, the less you are
willing to depend on others, even your spouse."

And 75.1 percent of the Cantonese women said they would continue to work
even after they married rich husbands.

The figure is also nearly 13 percent lower than the country's average.

Most of the local women agreed that husbands should focus their efforts
on work and social events while wives must spend much of their time on
family and housework.

More than 40 percent of women said being good looking was more beneficial
to finding a good job, then having ability.

On the sex issue, men are slightly more lenient than women when it comes
to forgiving infidelity. About 47.5 percent of women said they would
excuse their husbands for being unfaithful once, compared to 50.3 percent
of men.

(China Daily 09/11/2007 page5)

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Building of low-rent low-priced homes

?  ?

BIZCHINA / Review & Analysis

Building of low-rent low-priced homes

By Ma Hongman (China Daily)
Updated: 2007-09-10 10:23

Market economy was first introduced to the Chinese property market in a
national conference held in June 1998. However, in the intervening years,
it was decided the market would no longer be the sole power in allocating
estates to different social groups.

In a working conference on housing held on August 24 and 25, the
government stressed its responsibility for providing people with proper
housing.

Special coverage:

 
Related readings:

?Affordable housing prices down in major cities
?Rules to provide affordable housing to needed families
?Complaints about housing, cars on rise
?Shanghai housing bureau issues controversial guidelines

The government plans to establish a system covering most of the urban
population. Families with the lowest income will be offered low-rent
houses, those better off financially will be allowed to purchase
low-priced houses and the middle-income will be allowed to buy homes in
common estates.

The low-rent and low-priced houses will be subsidized by the government.
The conference required all local governments to ensure that low-rent,
low-priced houses make up at least 70 percent of new estate projects.

This specific requirement will definitely boost public welfare by
guaranteeing proper shelter for people of relatively low income. It also
indicates a major change in the government's strategy of regulating the
property market.

The State has tried to cool the heated market in recent years. The major
moves it took range from imposing specific limits to the size of flats,
to controlling the financing sources of estate developers. But none of
these seemingly forceful policies has worked effectively, and property
prices have kept increasing in almost all cities of the country.

The failure of these measures lies in one simple fact: they did not
directly change the balance of supply and demand. As long as demand is
greater than supply, property prices will keep increasing.

When the State-sponsored estates, the low-rent, low-priced houses, come
on the market, they will change the demand/supply ratio. The government
will be able this time to achieve its policy goal directly with the use
of public funds. This could mean a sweeping change to the real estate
market.

Of course, this change will only come about with the full application of
the policy. The key element is money.

According to the central government's plan, the fund for building
low-rent, low-priced housing will be drawn from the land transference
income of local governments - 10 percent annually.

Hou Ximin, an official with the Ministry of Construction, estimated the
money would be more than 25 billion yuan ($2.9 billion) each year. He
believed this would be adequate for building homes for the low-income
groups.

So the issue boils down to one question: Will local governments offer 10
percent of their land transference income on time to build these houses?
Many are reluctant to give a definite answer.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - House owners' riLearn mandarin - CCB gets go-ahead for A-share listingght

?  ?

BIZCHINA / Review & Analysis

House owners' right

(China Daily)
Updated: 2007-09-08 10:52

It is not unusual for house b

?  ?

BIZCHINA / Center

CCB gets go-ahead for A-share listing

(Xinhua)
Updated: 2007-09-08 10:52

?

A branch of China Construction Bank in Shanghai. The securities regulator
approved the?bank's A-share listing plan on September 7. [newsphoto]?

The China Securities Regulatory Commission on Friday approved the
yuan-denominated A-share listing plan of the China Construction Bank
(CCB), one of the nation's four big State-owned commercial banks.

The approval will make CCB to lead the return of the giant red-chip
companies, including China Mobile, the world's largest handset operator
by the number of subscribers, and PetroChina, the nation's largest oil
producer, to the mainland stock exchanges.

Red chips are mainland firms incorporate outside the mainland and listed
in Hong Kong.

The bank, Chinese partner of Bank of America, said it plans to issue no
more than 9 billion shares, less than 3.85 percent of the expanded
capital after the initial public offering (IPO)?

CCB is expected to raise some 60 billion yuan (US$8 billion) if the IPO
is priced at the closing price of HK$6.84 per share in Hong Kong on
Friday. It said all the money will be used to boost its capital adequacy
ratio.

The size of CCB's IPO is set to overtake 46.6 billion yuan of the
Industrial and Commercial Bank of China (ICBC) in October last year to
become the biggest ever domestic share listing.

The bank may start trading of its A-shares on the Shanghai Stock Exchange
before October 1, a source with its research department said.

Earnings per share with CCB in the first half of 2007 was 0.15 yuan,
compared with 0.12 yuan of CBC and Bank of China.

Its non-performing loans ratio stood at 2.95 percent at the end of June,
lower than the 3.29 percent half a year ago.

(For more biz stories, please visit Industry Updates)

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uyers to find that their compounds are not
constructed according to the blueprint they were showed. The changes made
are always in the interests of the developers.

It could be insufficient green areas or service facilities, or even
houses rented for commercial use, not shown in the blueprint.

Ministry of Construction statistics show that about 80 percent of
developers in Beijing make changes to the blueprints of their
construction projects after being approved by the municipal urban
planning department.

Officials from the ministry said earlier in the week that developers must
make public the changes they are going to make and have the necessary
permission to do so.

Currently, there is no specific law that prohibits developers from making
changes to approved blueprints, however there is a section on the
management of urban real estate that stipulates all urban real estate
supervisory departments must ensure developers have followed approved
blueprints.

This means that developers have no right to change approved blueprints
without permission from the relevant urban planning departments.

But the reality is that many developers are taking advantage of the
loopholes in the law while the watchdogs turn a blind eye.

As a result, complaints from house owners and disputes between them and
developers are on the increase.

The new property law that takes effect on October 1, will hopefully, make
a difference.

(For more biz stories, please visit Industry Updates)

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===========================================================================
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===========================================================================
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Learn Chinese online - China to resume approval of sino-foreign securities firms

?  ?

BIZCHINA / Center

China to resume approval of sino-foreign securities firms

(Xinhua)
Updated: 2007-09-06 14:57

Shang Fulin, chairman of the China Securities Regulatory Commission
(CSRC), said the commission will resume the approval of sino-foreign
securities joint ventures.

"Allowing foreign capital into China's securities business will help
promote the capabilities of the whole industry," said Shang, adding that
the commission is engaged in research on the resumption.

Foreign capital can enter China's securities market by setting up
companies, cooperating with investment banks, or acquiring shares in
licensed securities firms in China, Shang said.

He made the remarks while addressing a plenary session at the Inaugural
Annual Meeting of the New Champions hosted by the World Economic Forum in
China's northeastern coastal city of Dalian.

The date to resume approval is yet to be decided, he added.

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Chinese Mandarin - China leads world in rainmaking

CHINA / National

China leads world in rainmaking
(China Daily)
Updated: 2006-06-05 05:39

JINAN: China has produced the world's leading force of rainmakers, in a
drive to relieve droughts and fight fires, according to the National
Meteorological Bureau.

The rainmaking army uses rockets, artillery and aircraft to sow chemicals
and artificially induce rain in times of need, said an official with the
bureau's Department of Forecasting Services and Disaster Mitigation.

Its aircraft alone have flown enough missions to fill four Yellow Rivers
in the past five years.

They sowed rainmaking chemicals which brought down 210 billion cubic
metres of water over 3 million square kilometres nearly a third of
China's territory in 2,840 flights between 2001 and 2005.

Meanwhile rainmaking rockets and shells had been used 1,952 times by the
end of 2005.

More than 3,000 people are employed in rainmaking with an arsenal of
7,000 cannons and 4,687 rocket launchers, the official told a recent
meeting in Jinan, capital of East China's Shandong Province.

Engineers induce rain by chemically "seeding" clouds, with one method
involving burning silver iodide.

And the chemical methods can be used not only to ease droughts and
prevent hail, but also to fight fires.

Artificially-induced rain helped put out three major forest fires that
raged for 10 days in north and northeast China before they were subdued
on Friday.

Weather specialists also induced rain in early May in Beijing, helping
relieve a drought and wash dust from the capital after it was battered by
sandstorms.

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Chinese Mandarin - China reconsiders anti-dumping duty

?  ?

BIZCHINA / Center

China reconsiders anti-dumping duty

(Xinhua)
Updated: 2007-09-03 16:44

China is reconsidering the necessity of imposing anti-dumping duty on a
Russian caprolactam supplier, the Ministry of Commerce announced on
Monday.

Kemerovo Joint Stock Company "AZOT", a major chemical plant in west
Siberia, filed in July an application to the ministry for a
re-examination of the anti-dumping duty on its caprolactam, a white
crystalline cyclic amide used in the production of nylon, the ministry
said.

The company claimed that it had reduced dumping to China, and the primary
evidence it offered complied with China's relevant regulations and rules;
its application was accepted and the re-examination work started on
Monday, the ministry said.

China started to impose anti-dumping duties on the imports of caprolactam
from companies in Japan, Belgium, Germany, the Netherlands and Russia
from June of 2003, as an earlier investigation found that dumping by
these companies had done substantial damage to the domestic industry.

The Ministry of Commerce decided that exports from these caprolactam
suppliers to China are subject to anti-dumping duties for five years,
with the tax rate ranging from 5 to 28 percent. The rate on Kemerovo
Joint Stock Company is 9 percent.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - EnvironmChinesepod - Real estate law amended to back state expropriationent: Green legislation

?  ?

BIZCHINA / Biz Media Digest

Environment: Green legislation

(China Daily)

?  ?

BIZCHINA / Center

Real estate law amended to back state expropriation

(Xinhua)
Updated: 2007-08-31 14:10

China's top legislature amended a real estate management law Thursday,
allowing the government to expropriate institutional and private houses
on state-owned land for public interests.

The Standing Committee of the National People's Congress (NPC) voted at
its legislative session that ended on Thursday to add one clause to the
General Principles of the Law on the Management of Urban Real Estate,
which allows the expropriation for public interests while demanding
compensation to owners.

The new clause also underscores that the legal rights of the owners must
be protected and residence conditions of private owners after
resettlement must be guaranteed.

Related readings:

?China to scrutinize all land sales since 2005
?Supervision of land transfers?Guangzhou reclaims unused land to boost
housing supply

Special Coverage:
in China

The top legislature authorized the State Council, or the cabinet, to make
administrative regulations on such expropriation to ensure the smooth
implementation of the Property Law that was enacted in March and is to go
into force on October 1.

Currently, there is no law defining the rights and procedure for the
expropriation of institutional and private real estate, while the
existing "Provisions on the Management on the Removal of Urban Houses"
issued by the State Council in 2001 is not accordant with the Property
Law.

The amendment conforms with the First Clause of the 42nd Article of the
Property Law, which says land belonging to institutions and houses and
other real estate belonging to institutions and individuals can be
expropriated for public interests, within the limits of rights and
procedure defined by law.

(For more biz stories, please visit Industry Updates)

Learn Chinese online


Updated: 2007-08-31 10:02

Establishing a circular economy will have multiple benefits for society,
says an article in People's Daily. The following is an excerpt:

The submission of the draft law for the circular economy to the Standing
Committee of the National People's Congress (NPC) for a first reading
marks the advance of efforts to enshrine recycling and conservation in
law.

The economic boom of the last couple decades has placed an enormous
strain on our environment. Efforts to achieve sustainable development
have been retarded by pollution, and the country's environmental problems
have hurt its reputation within the international community.

Having a circular economy will help the country strike a balance. When
the system is enshrined in law, it will help support resource-saving
methods of manufacturing, consumption and urban planning.

Academics say the key obstacles for developing a circular economy in
China are the regional disparities in industrialization, underdeveloped
recycling facilities and the absence of a long-term plan for nurturing
the circular economy.

The draft law being formulated by legislators has taken these obstacles
into consideration. It also states that manufacturers have the primary
responsibility for putting the circular economy into practice. The law
imposes strict standards on emissions and resource use by manufacturers
in several industries.

Meanwhile, the government should play an active part in encouraging
manufacturers and the public to do their part in nurturing the circular
economy.

The government should offer favorable policies for technological
innovation, consumption and education. Financial subsidies may also be
necessary as an incentive.

According to insiders, the draft law is quite comprehensive in its
stipulations about the measures to promote the circular economy. The next
step is to ensure these measures are carried out without being distorted.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - To buy or not to buy?

?  ?

BIZCHINA / Biz Life

To buy or not to buy?

(CRIENGLISH.com)
Updated: 2007-08-28 17:27

To buy or not to buy, that's the question.

Knowing exactly what you want is the key to making the right decision.

Related readings:
?Survey: Most individual securities investors play small
?Securities dealers vying for brokerage business
?China may loosen forex controls for  the individuals

Mainland residents will be able to directly invest in overseas securities
market. The State Administration of Foreign Exchange has announced a
pilot program, allowing investors to use foreign exchange or purchase
foreign currencies for their overseas investment. The move is set to open
a new channel for the outflow of China's enormous saving deposits and
help relieve pressure on the country's mounting foreign reserves.

Under a pilot program to be launched in the northern city of Tianjin,
mainland residents can use foreign exchange or purchase foreign
currencies, with which to open an account with the Bank of China's
Tianjin branch.

At the initial stage, investors can buy shares on the Hong Kong stock
market.

As a bonus, they won't be subject to a rule that limits foreign-exchange
purchases to 50,000 US dollars annually.

Researcher Yi Xianrong says this is an important measure to widen the
channel for foreign exchange outflows.

"If people can invest overseas, it will increase their investment
channels and alleviate pressure brought about by a fast growing foreign
reserve. The move is an important step in fully opening up China's
capital account. It shows China's foreign exchange reform is moving
forward step by step."

China previously put restrictions on cross-border outflows of capital by
companies and individuals, to prevent economic instability brought about
by large-scale money flows.

But the country's foreign reserve has now surpassed 1.3 trillion US
dollars, the biggest in the world. In addition, money is pouring into the
mainland as a result of a growing trade surplus, resulting in some
problems like over-mobility.

Meanwhile, people's income has evidently increased along with the rapidly
growing economy, creating increasing demand for investing in security
markets.

Zou Lin, an official with the State Administration of Foreign Exchange,
says these have created a favorable environment for allowing individuals
to invest overseas.

"I think it's the right time to conduct this trial program. There's
strong demand for multi-channel investment and the scattering of
investment risk among individuals. Meanwhile, China's foreign exchange
reserve is now sufficient and able to meet such a demand from investors."

Prior to the pilot program, individuals have only been able to invest
overseas indirectly through banks, brokerages, insurers and fund
managers, through the qualified domestic institutional investors scheme.

Analysts expect individual investors will hit the stocks of mainland
companies listed in Hong Kong after the direct overseas investment
program is put in place. There they can trade at an average of 21 times
earnings, much more inviting than the 50 times multiple for the benchmark
stocks listed in Shanghai and Shenzhen.

Zhang Gang is a researcher from the Chongqing-based Southwest Securities.

"It will have a psychological impact on the mainland A share investors.
But if there are some strict restrictions over the identity of the
investor, the capital outflow cannot be too much."

Hong Kong Financial Secretary John Tsang and chief executive of the
Special Administrative Region's Monetary Authority Joseph Yam have
welcomed the mainland's move.

Hong Kong Exchanges and Clearing Limited has been quoted as saying that
mainland investments in the Hong Kong market will help narrow the price
gap between Hong Kong-listed H shares and mainland-listed A shares, and
will help foster the healthy development of both markets.

Chief economist of the Beijing-based Galaxy Securities, Zuo Xiaolei,
suggests investors be prudent when trading overseas securities.

"It's a very crucial principle on the market that one doesn't invest in
something he's unfamiliar with, especially when it comes to financial
derivatives. Financial derivatives usually pose an unsuitably high amount
of risk for small or inexperienced investors."

China's building up its securities market, with financial derivatives
still in their infant stage. The country has just eased controls over the
issuance of corporate bonds, which have been well developed in developed
nations and many other emerging economies.

"It is advisable that mainland individuals not invest in the products
with high risks."

After Tianjin, the eastern city of Shanghai is expected to become the
next target for the pilot program.

So, to buy or not to buy, have you made up your mind?

(For more biz stories, please visit Industry Updates)

Learn Chinese, Learn Mandarin online

Friday, December 28, 2007

Learn Mandarin online - Is the US plunging into 'historical error'?

CHINA / Foreign Media on China

Is the US plunging into 'historical error'?
(International Herald Tribune)
Updated: 2006-06-01 09:44

Once upon a time, there was a superpower jealous of the unrelenting
modernization of its rival. Now it may be time to update this tale, which
like many fables has a strong element of truth to it.

For the next decade or two there will continue to be only one superpower
in the world, the United States. China's rise to superpower status seems
all but inevitable, but what is remarkable is that China is the country
whose modernization is unrelenting, while the United States, not even
seriously challenged yet, appears tempted to follow the Soviet example.

Put another way, unless things are thought through more clearly, the
United States could let insecurity undermine its self-confidence,
plunging toward what the Chinese are fond of calling "a historical error."

This is why the latest Pentagon assessment of China's military strength,
released last month, makes for such interesting reading. The 50-page
report speaks of a China determined to achieve parity with the United
States and to become "the preeminent power among regional states in East
Asia."

One wonders, first, about the choice of language. What does the term
"regional state" mean, for example?

And what, moreover, is unusual about China being the pre-eminent power in
this part of the world - a position that has obtained throughout most of
this country's long history?

More worrisome, though, is the thought that a report like this
constitutes the opening elements in a drum roll intended to motivate the
American taxpayer for a new round of military spending with a new
putative enemy - or let's call it strategic rival.

The reflex to spend on the military in the United States in response to
challenges of any or every kind is hard to cure, and may never be
entirely overcome. What is to be feared, though, as deficits mount and
spending on other productive areas continues to be neglected, is that it
could ultimately contribute to the country's downfall.

A paranoid would be tempted to suspect China of baiting the United States
into an arms race - of using a classic game theory ploy to feign sweeping
modernization in order to get the Americans to overreact in ruinous ways.
The problem is we've never needed encouragement to overindulge the needs
of the iron triangle.

The Pentagon document makes much of double-digit growth in Chinese
military spending, but takes its time in making the point that the arms
budget is growing more slowly than government spending overall. To be
sure, China is no slouch in arms spending, committing $35 billion to its
military last year, or 1.5 percent of its gross domestic product, using
official Chinese figures.

The London-based International Institute for Strategic Studies gives a
higher and probably more realistic estimate, putting Chinese military
spending at 2.7 percent of GDP in 2003. This should be compared with
American spending of 3.7 percent of GDP - a vastly larger GDP.

More interesting still is how China and the United States approach
military spending. China, conscious of its daunting social needs, and
more important, of the fact that "catching up" with the United States is
not essentially a military endeavor, is building on the cheap. Advanced
weapons systems are bought from Russia, rather than home grown. All sorts
of things are cobbled together and reverse-engineered. Other items, like
prohibitively expensive aircraft carriers, have been forgone altogether.

Contrast that with the Pentagon's penchant for extravagance on new
weapons acquisition. Even where old weapons systems are concerned, self-
denial often seems missing from the vocabulary.

As Leslie Wayne reported recently in The New York Times, even as America
builds dubious new systems, like the $200 million-per-unit C-17
Globemaster III cargo plane, Congress has prevented the retirement of old
aircraft, from aging B-52 bombers to U-2 reconnaissance planes.

Space is often a proxy for military spending, and another area of
traditional superpower competition. In this regard, the Chinese space
program provides another compelling example. There has been near panic in
some Pentagon circles about suggestions by Chinese and American diplomats
that the two countries should cooperate on exploration and research.

Voices warn about the risks of divulging precious, closely held
technology. Here's a radical suggestion: embrace the Chinese request for
cooperation so as to pry away one of Beijing's most valuable secrets.
That is, how does China manage to put together a manned lunar exploration
program that is progressing brilliantly on a budget that wouldn't keep
the whole of NASA functioning for a year?

NASA's budget for 2007 is $16.8 billion. Officially, China has spent 19.3
billion yuan on space programs of all kinds over the past 13 years. A
dollar gets you roughly 8 yuan - unless you're in the space business.

The United States is planning for a China whose military strength will
grow steadily in the years ahead. Taiwan, in particular, will remain a
dangerous fault line, requiring both vigilance and consummate diplomatic
skills on both sides.

But the question is whether the United States is wrong to understand that
China's challenge is primarily military. It is in the realms of
productivity, knowledge and ideas that the real jousting will take place
over the next couple of decades.

In many ways, East Asia has still not emerged from the Cold War, with a
Korea still divided, a Japan at odds with its neighbors over territory
and history, and a China with a fast molting economy and anachronistic
political system.

Test China on the basis of its self- proclaimed "peaceful rise," to begin
building a new security architecture in this part of the world that takes
into account both countries' legitimate interests.

In the meantime, focus on modernizing your economy, upgrading the skills
of your workforce and polishing your ideas for the long competition ahead.

                                                              credit to
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Learn Chinese online - Banking: ICBC reports 61% growth in profits

?  ?

BIZCHINA / Biz Media Digest

Banking: ICBC reports 61% growth in profits

(Xinhua)
Updated: 2007-08-24 14:30

The Industrial and Commercial Bank of China (ICBC), the country's largest
lender, Thursday reported a 61.4-percent increase in after tax profits in
the first half of the year.

Profits rose to 41.4 billion yuan (US$5.45 billion) for the January-June
period, up 25.7 billion yuan in the same period a year ago, according to
the bank's half-year report.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Basic living allowaChinese Mandarin - Beilun power plant embraces clean technologynce system to cover more rural people

?  ?

BIZCHINA / Center

Basic living allowance system to cover more rural people

(Xinhua)

?  ?

BIZCHINA / Local Resources

Beilun power plant embraces clean technology

By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-22 13:47

?
Large power generation units in the Beilun Thermal Power Plant
[chinadaily.com.cn]

Picture a traditional power plant. Do you see dusty coal, chimney smoke,
and other pollutants? The Beilun Thermal Power Plant (BTPP) in the Beilun
new area of Ningbo, East China's Zhejiang Province, might make you
rethink the industry.

Established in 1988, BTPP is one of the largest coal-fired power
generators in China with a total power capacity of 3,000 Megawatt and two
more 1,000-Megawatt ultra super-critical power units under construction.

Like other traditional fire power plants, BTPP faced mounting pollution
problems as it grew. Leaders of the factory and local worked together to
find solutions.

"Sufficient power supplies are indispensable for the development of
Beilun District and its surrounding areas," said Wang Mingliang, an
official from the government of the Beilun District of Ningbo. "Yet we
cannot sacrifice the environment and people's health in pursuit of
electricity. Instead, we are pursuing cleaner energy."

Due to strenuous efforts on behalf of researchers at the plant and help
from the local government, BTPP is beginning to step toward "a green
power plant."

To reduce sulfur dioxide emission in the power generation process, as
early as 2004, BTPP began a fuel gas desulphurization project. By July of
this year, all five power units of the plant had been upgraded and
successfully passed trial operation of the project. As many as 89,000
tons of sulfur dioxide, a byproduct of power generation, will be
transformed into profitable gypsum each year using a special chemical
process, instead of becoming poisonous gas.

In addition to the desulphurization system, BTPP has also introduced a
set of dust removal and slag handling systems to prevent floating dust
and solid waste from polluting the environment. Moreover, the plant's
subtle circulated water processing system has realized nil-drainage of
waste water. At present, the plant is also engaged in the development of
a denitridation system to rid oxynitride off the waste gas.

"The roof of my house used to be covered by a layer of black dust if it
doesn't rain for long," said a worker who lived near the plant. "Now I'm
glad to see the black layer is gone."

With the development of more environmental friendly industries in Beilun,
greater benefits are on the way - fresh air, less chemical infiltration,
and probably a healthier life. 

Via a fuel gas desulphurization project, sulfur dioxide emitted by the
Beilun Thermal Power Plant is transformed into useful gypsum material.
[chinadaily.com.cn]

(For more biz stories, please visit Industry Updates)

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Updated: 2007-08-22 22:37

China will extend its basic living allowance system to cover an extra 10
million needy rural people by the end of this year, according to the
Ministry of Civil Affairs.

Related readings:

?Additional 2.7b yuan earmarked for rural health care
?Basic stipend for rural arease
?China further boosts financial services in rural areas
?Rural minimum living subsidy system to be established

"The number of the rural people benefiting from the system has already
risen to 23.115 million," said Civil Affairs Minister Li Xueju on
Wednesday at a press conference.

The system covered just 20.68 million rural people by the end of June.

This year, a basic living allowance system in rural areas was formally
established in all 31 provinces, autonomous regions and municipalities of
China, 10 years after the similar system was set up in urban areas.

The amount of subsidies given by government varied in different areas
according to their economic situations, but the basic requirement is to
provide food and clothing for needy peoples both in urban and rural areas.

Li said most of the funding came from local governments, and the central
government allocated funds to support the system.

"This year, the central government has allocated three billion yuan for
rural areas, but most of the funds go to the relatively backward central
and western regions," he said.

"I believe, with China's social and economic progress, the basic living
subsidy for needy people in rural areas will be raised," Li said, noting
the average basic subsidy given by government per rural beneficiary was
28 yuan (US$3.68).

"The 28 yuan is not a huge amount of money, but it has different values
to different people," he said.

He said the allowance in rural areas was less than in urban areas because
living costs in urban areas were higher.

Under the system, the average basic living cost in urban areas nationwide
is 169.6 yuan (US$22.3) per person per month and the average basic living
cost in rural areas is 71.4 yuan (US$9.39).

The subsidy equals the basic living cost minus the individual's average
income. On average, the subsidy given by government is 92 yuan in urban
areas per month and 28 yuan in rural areas.

In the 1950s, China introduced a system of financial subsidies for the
poorest rural people. The system was funded by wealthier farmers and by
collective rural work units.

In the 1990s, a similar system set up in urban areas focused on providing
a minimum wage, housing, medical care and other essential benefits for
the poorest citizens.

In 1994, China started to upgrade the rural system into a fully-fledged
public assistance program by issuing a regulation ordering that food,
clothing, medical care, housing and burial expenses should be provided
for all rural residents who were childless or unable to work.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Shouting from rooftops

?  ?

BIZCHINA / Biz Life

Shouting from rooftops

By Miao Xiaojuan (China Daily)
Updated: 2007-08-21 10:02

The constant throb of the metropolis below is a distant memory for a
group of stressed-out office workers camping on the roof of a three-story
building. For these white-collar workers, there is the feeling of peace
that comes with looking up at an uninterrupted sky.

A group of Shanghai white-collar workers camp on top of a building.
[China Daily]?

Sometimes overwhelmed by their high-pressure routines, a small group of
young white-collar workers are seeking respite by scaling Shanghai's
skyscrapers. All the members of the group are adventure sports
enthusiasts and use ropes to climb multi-story buildings. They then pitch
tents on the roof and camp out for the night.

The seven young women, most of whom work executive jobs by day, belong to
an outdoor sports club called Cat Rain. They describe their extreme brand
of urban camping as "exciting".

"It's a good way to release our pressure. You feel relaxed to sit on the
roof, look up to the sky and chat with intimate friends," says Gong Ying,
25.

Reaching these rooftop havens is one of creative ways Shanghai workers
are beating the stress.

Traditional entertainment, such as Karaoke, card games, or even boxing
bars, seem to have lost their appeal.

Feeling choked by their busy city lifestyles, workers feel like urban
slaves and develop ways to escape.

They watch late-night horror movies, play online violent games all
weekend or log onto websites to vent their frustrations, complain and
reveal secrets.

It seems violence is a way to calm these worriers down. Small rubber
balls, or stress balls, are also being put to good use and can be found
littering the Shanghai subways.

However stressed workers are not confined to Shanghai.

A newly opened restaurant in Beijing encourages their customers to throw
plates and smash instruments so long as they paid for the costs. And
white-collar workers, with high-pressured jobs, are the restaurant's
targeted customers.

Despite the dispute over the restaurant's extravagancy and the violence
nature of the new service, some psychologists say the activity reflects
Chinese white-collar workers' extreme desire to vent their inner angst.

There are also milder ways to release the pressure, such as watching
cartoons and playing in toy stores. Some workers are eager to return to
their childhoods. This May, hundreds of people took part in a festival
called "Children's Day for Adults," launched by a website in Pudong of
Shanghai. One of the participants said they hoped stressed-out workers
could have at least one day in a year when they forget all worries and
behave like "naive kids".

Chinese workers are also getting ideas from around the world. Last
December, a big pillow fight was held near the Eiffel Tower in Paris and
people from many different countries threw pillows at each other.
Guangzhou people liked the idea and in March staged a similar
stress-relieving event.

Similar versions were staged in other places around China. Participant
threw soft pillows at anyone they liked, squealing, and laughing.

Pillow fighting has become increasingly popular among stressed-out
urbanites.?[China Daily]

Interesting places, such as parks and rivers, can also help people relax
and also help subjects think of the big picture. But have you considered
a cemetery?

Cemetery companies in Shanghai organized office workers to visit local
graveyards in March. The guests were taken to a place where they could
contemplate on life and their future.

Most white-collar workers interviewed by China Daily say they employ a
variety of unique ways to add spice to their daily grinds. "Every month I
go to one of my favorite restaurants and have five pieces of pork chops
at one time," says Lao Hua who works for an education institute.

Leo Sun, a movie director, says he is fond of taking photos with
traditional cameras and makes theatrical drama by himself to release
pressure.

Roof-camper Chen Bin, an IT marketing professional, says she has climbed
to the rooftops to camp out 30 times. Adding to her unusual pursuit are
other adrenalin-fueled interests such as downhill racing and paragliding.

"Pressure may bring us distress, but it doesn't mean we can't find ways
out," Chen says. "Life should be imaginative."

(China Daily 08/21/2007 page18)

(For more biz stories, please visit Industry Updates)

Learn Chinese online

Thursday, December 27, 2007

Chinese School - NPC to discuss law on circular economy

?  ?

BIZCHINA / Center

NPC to discuss law on circular economy

By Sun Xiaohua (China Daily)
Updated: 2007-08-18 10:01

Lawmakers will discuss the country's first law to put into effect the
circular economy initiative on August 24.

The Standing Committee of the 10th National People's Congress (NPC), the
top legislature, announced on Friday it would hold its 29th meeting from
August 24 to 30, during which the draft of the circular economy law would
be discussed for the first time.

The circular economy law provides a legal framework for developing the
economy, raising energy efficiency, protecting the environment and
realizing a sustainable development.

Qian Yi, professor of the environmental science and engineering
department of Tsinghua University, said the circular law would be
different from the draft energy conservation law and the Law on the
Promotion of Cleaner Production, whose targets are overlapping to save
energy and protect the environment.

"The new law requires all the links from production to consumption to
follow the rules of the circular economy," she said.

The circular economy changes the traditional linear way of material flow,
raising eco-efficiency based on the 3R principle - reduction, reuse and
recycle.

According to the draft, it will raise standards in resource reduction,
safe waste disposal, industrial production, mineral resource
exploitation, construction, agriculture, governmental practice, urban
domestic consumption, and the service sector.

Mao Rubai, chairman of the NPC's Environmental and Resources Protection
Committee, earlier told China Daily that "some detailed mandatory
requirements have been written into the draft, making the law easy to
implement".

The draft requires the government to allocate special funds for
supporting technological research, key projects, education, capacity
building and the establishment of an information network.

Incentives, such as favorable tax and investment policies, will also be
offered to organizations that take an active role in China's circular
economy, according to the draft.

Violators could face a fine of up to 500,000 yuan ($66,000).

(China Daily 08/18/2007 page2)

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Listed companies allowed to issue corporate bonds

?  ?

BIZCHINA / Center

Listed companies allowed to issue corporate bonds

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-08-15 11:52

Related readings:

?First corporate bond lined up
?Corporate bond issuance may hit 100b yuan this year
?China approves record corporate bond issue
?Listed companies must disclose securities investments

Listed companies, including those listed on the Shanghai, Shenzhen, or
overseas markets, are now allowed to issue corporate bonds on a trial
basis, according to a new rule released by the China Securities
Regulatory Commission (CSRC) yesterday, the Shanghai Securities News
reported today.

The rule signals the official start of China's corporate bond issuance
and is important in expanding enterprises' financing channels, improving
financial market, enriching securities investment tools, and boosting
harmonious development of the capital market.

The CSRC said potential issuers must have sound credit ratings and their
average annual distributable profits in the recent three accounting years
must be equal to at least one year's interest that the company would pay
on the proposed bond issue.

Furthermore, the value of outstanding bonds after the proposed issuance
should not exceed 40 percent of the company's net assets at the end of
the latest accounting year, according to the rule.

The regulator is also planning to issue a series of auxiliary measures
covering issuance applications, prospectuses, bondholders' meetings, and
custody agreements.

Statistics from listed companies and sponsors show that three kinds of
companies, public facilities such as electricity power and
transportation, real estate developers, and high-performance small- and
medium-sized companies, are more interested in corporate bond issuance.

China Yangtze Power Co is expected to issue the first corporate bonds
with a total issuance of 8 billion yuan (US$1.06 billion).

Currently, only a handful of large State-owned enterprises approved by
the National Development and Reform Commission can issue such bonds. The
price and amount of bonds issued are to be decided by the commission, and
the State commercial banks are also required to underwrite the bonds.

Just 283.1 billion yuan of corporate bonds had been issued by the end of
last year, accounting for only 1.35 percent of gross domestic product,
far lower than the 40 percent in the United States and 17 percent in the
Republic of Korea.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Curbs on Learn mandarin - FDI up 13% in 7 monthsforex holdings scrapped

?  ?

BIZCHINA / News

Curbs on forex holdings scrapped

By Xin Zhiming (China Daily)
Updated: 2007-08-14 09:11

China yesterday scrapped ru

?  ?

BIZCHINA / Center

FDI up 13% in 7 months

By Jiang Wei (China Daily)
Updated: 2007-08-14 09:14

?

A group of foreign businesspeople at the China International Fair for
Investment and Trade in Xiamen, East China's Fujian Province. [File Photo]

China's realized foreign direct investment (FDI) increased nearly 13
percent year-on-year from January to July, driven by rapid growth in the
real estate, stock and forex markets.

The country received $36.93 billion in FDI in the first seven months of
this year, up 12.92 percent from a year earlier, the Ministry of Commerce
said yesterday. It approved 21,676 foreign enterprises in this period,
down 4.81 percent from last year.

Related readings:
?June FDI rises 21.91% to $6.63b
?Central bank vows to prevent overheating
?China tightens rules on foreign property investors
?More foreign capital flows in property sector

Foreign investors are expected to set up more operations in China this
year, in particular in the second half, to avail the last opportunity to
enjoy favorable corporate income taxes, said Lu Jinyong, a researcher at
the University of International Business and Economics.

From next year, income tax rates for domestic and foreign companies will
be unified at 25 percent. Domestic companies currently pay 33 percent
income tax while foreign companies, which have tax waivers and
incentives, pay an average of 15 percent.

Foreign enterprises registered before the rate unification will be taxed
at the favorable rates for another five years.

The figures released by the ministry do not include investments in the
financial sector, such as banking, insurance and securities. The ministry
also did not give the amount for contracted FDI agreements yet to be
fulfilled, as opposed to the ones realized.

Lu expects FDI in China's non-financial sectors to exceed $70 billion
this year, compared with $63 billion last year.

(For more biz stories, please visit Industry Updates)

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

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

Learn Chinese, Learn mandarin

les requiring companies to convert part of
their current-account foreign exchange holdings into the yuan.

Companies used to be allowed to retain foreign exchange equivalent to 80
percent of their revenues in the previous year plus 50 percent of their
expenditure; and the rest had to be sold to the State under the mandatory
foreign exchange settlement regime.

The new rules, effective immediately, will help companies use and manage
their foreign exchange better, and contribute to a more balanced
international payments situation, according to a statement on the website
of the State Administration of Foreign Exchange (SAFE).

The move will ease pressure on the country's foreign exchange reserves,
which continue to pile up, said Zhuang Jian, senior economist at the
Asian Development Bank (ADB) in China.

Related readings:
?China stops encouraging exporters to remit forex
?China removes forex quota of domestic institutions
?Hold back forex surge

Special Coverage:
Markets Watch ?

Reserves rose to $1.32 trillion at the end of June, compared with $1.06
trillion at the end of 2006. The six-month increment was higher than the
whole-year increase of $247 billion last year.

The country's current account, mostly trade surplus, has been a major
source of the surge.

To ease the pressure from rising reserves, the government now allows
companies and individuals hold foreign currencies and invest abroad.

The latest move will work to reduce China's foreign exchange reserves but
only in the medium- to long-term, Yan Qifa, an analyst with the
Export-Import Bank of China, told China Daily.

In the near term, as the Chinese currency continues to rise, companies
will opt to hold the yuan, not the US dollar, therefore choosing to
convert their foreign exchange with the monetary authorities.

The new rules may make it easier for some companies to invest overseas,
analysts said, but ADB's Zhuang said the country should strengthen
capital outflows.

The short-term, abrupt outflow of large amounts of capital may affect a
country's financial stability, as shown in the 1997-98 Asian financial
crisis, he said.

China has gradually eased restrictions on companies retaining foreign
exchange.

From 2002, companies were allowed to retain 20 percent of their foreign
exchange revenues.

The proportion was raised to 50 percent in 2004 and to 80 percent in 2005.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Learn Mandarin online

Learn Mandarin online - Growth rate of trade surplus slows down

?  ?

BIZCHINA / Top Biz News

Growth rate of trade surplus slows down

By Jiang Wei (China Daily)
Updated: 2007-08-11 05:09

China's trade surplus growth slowed down in July from the first half of
the year, with imports hitting a record high, the Customs said on Friday.

Imports touched $83.39 billion in July, reflecting a year-on-year
increase of 26.9 percent, the General Administration of Customs said.

"It is the highest monthly volume," it said. Also, for the first time
since April, monthly imports crossed $80 billion.

From January to July, imports of preliminary products, such as crude oil
and soybean, grew robustly, with a steady increase in imports of
machinery and electronic goods.

The surplus in July stood at $24.35 billion, up about 67 percent
year-on-year.

The monthly figure, however, was still higher than most experts'
predictions the central government announced a series of measures to cap
exports of low value-added products and enlarge imports of materials and
key equipment.

"It (the surplus) shows Chinese enterprises' power in exports," said Li
Yushi, vice-director of the Chinese Academy of International Trade and
Economic Cooperation, a Ministry of Commerce think tank.

Li said as a link in the international production chain, some Chinese
enterprises can't be separated from the international market.

Many experts agree that China's surplus will remain high but the growth
will slow down in the second half.

Despite many US people being worried that made-in-China products will
flood the US market and hurt local industries, a US industrial
association report illustrated "the widespread benefits to the US economy
that have resulted from growing US exports to China".

The US-China Business Council said overall US exports when China grew 240
percent from 2000 through 2006.

(China Daily 08/11/2007 page10)

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese School

Wednesday, December 26, 2007

Learn Chinese online - EU rule looms for exporters

?  ?

BIZCHINA / Center

EU rule looms for exporters

By Jiang Wei
Updated: 2007-08-10 09:06

Exporters of energy-using products have been told to get ready for a new
EU environmental protection regulation that will take effect from
tomorrow.

The EU directive on the eco-design of energy-using products (EuP) will
affect all links in the industry chain - from design, manufacturing and
transport to disposal.

So said an official from the bureau of fair trade for imports and exports
under the Ministry of Commerce, but he declined to be named.

The directive will influence the trade of all energy-using products
except vehicles and will have "a direct impact on companies involved in
the machinery and electronics industries, chemicals and metallurgy", he
said.

Related readings:
?China-EU trade hits US$272.3 billion in 2006
?EU remains China's top trading partner
?China speeds up energy-efficient products certification
?To fight pollution, China takes capitalist route
?Local gov'ts 'ignoring' green model

The EuP directive was announced in 2005 and aims to reduce environmental
harm. Products will be required to meet power consumption guidelines set
by the European Union. Most manufacturers will also have to do lifecycle
assessments of their products to determine environmental impact.

In the short term, the directive will increase companies' outlay in
product development - including research, environmental impact
assessment, procurement of technologies and patents, and energy
consumption testing, the official said.

"In the medium and long term, however, firms can lower their costs by
optimizing design, controlling materials during manufacture and reducing
disposal costs, because environmental impact will be factored into their
strategies," he said.

Companies "shouldn't see it as an increase in costs or view as a loss any
decline in exports as a result of the directive". But he suggested firms
exporting in certain areas to the European Union get prepared for the
change.

Most exporters have been preparing for the regulation since it was
announced several years ago, said Chen Yansheng from the China
Association of Lighting Industry.

He said a small number of exporters could give up on the EU market if
they don't think they'll meet the requirements of the directive.

The EuP directive will eventually become law in EU member countries.

It follows three other EU directives on environment protection: RoHS,
banning individual hazardous substances; WEEE, on the disposal of
electronic products; and REACH, restricting the use of chemicals.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - US airlines vie for China route

?  ?

BIZCHINA / Overseas Investment

US airlines vie for China route

(Xinhua)
Updated: 2007-08-08 17:12

Delta Air Lines, which wants to offer a direct flight from Atlanta to
Beijing, has argued to federal officials that giving United another
nonstop flight to China would weaken competition. Delta is one of the
only two major US airlines that currently operate no fights to China.

LA Airport Commission Endorses Nonstop Flights to China

The Los Angeles Airport Commission has endorsed the United Airlines' plan
to start daily nonstop service to China, officials confirmed on Tuesday.

In an application submitted last month to the US Department of
Transportation, United Airlines stated that it planned daily nonstop
service between Los Angeles and Shanghai beginning in 2009, and between
San Francisco and Guangzhou in 2008.

The daily flight between the two cities is expected to create -- directly
and indirectly -- 3,120 jobs and generate 156 million dollars a year in
wages, according to official figures.

California Governor Arnold Schwarzenegger and Los Angeles City Council
members approved the deal earlier.

(For more biz stories, please visit Industry Updates)

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Chinese language - Xenophobia at heart of product panic in US

?  ?

BIZCHINA / Weekly Roundup

Xenophobia at heart of product panic in US

By Debasish Roy Chowdhury (China Daily)
Updated: 2007-07-31 15:22

The author Debasish Roy Chowdhury is a senior editor with China Daily

A new bout of food scare has gripped the United States, with the US Food
and Drug Administration urging people to throw away more than 90
different products, made at a Castleberry's Food Co plant, from chili
sauce to corned beef hash to dog food, for fears that they are causing
botulism, a muscle-paralyzing disease.

Seven cases of botulism have so far been reported. Most victims consumed
a hot dog chili sauce made at the company's plant in Georgia that has
been temporarily closed. The recall has been expanded to Canada as well.

Castleberry is owned by Bumble Bee Foods, the largest branded seafood
company in North America. Not China, the land from where many of the
"toxic food and lethal products" in the world supposedly emanate.

The list of product recalls in the US in recent months is almost
inexhaustible: in March, Ford Motor Company recalled new 2008 Super Duty
trucks made in a Kentucky plant after reports of tailpipe fires in the
diesel version of the vehicles; in June, California-based United Food
Group recalled 75,000 pounds of ground beef products as they were
suspected to have been contaminated with E. coli; and in July, Sara Lee
Corp began to recall dozens of its whole-wheat bread brands made at a
Mississippi bakery for fears that they may contain pieces of metal.

But the product scares and recalls the US media seems fixated on are the
ones from China. It is the faulty tires, toothpaste, pet food, seafood
and toys with a China connection that are making all the news, with cover
stories, editorials and television programs harping on how China's
"substandard" manufacturing methods are putting American consumers at
risk, how the factory to the world is actually one big sham, and
proffering ways to keep off products with any trace of China.

China's economic stardom is beginning to unravel - there had to be a
catch, it is all falling into place now.

Scare sells. As a bonus, the China horror story even has a feel-good
subtext - nothing can match American quality; if China makes goods
cheaper than America, now you know how, by cutting corners.

This fear of Chinese products is reinforced by administrative measures.
At the height of the product scare, the US government quickly formed a
Cabinet-level panel to recommend how to guarantee the safety of imported
food and other products. In this self-delusional world of policymaking,
the Castleberrys and the United Food Groups do not exist, it is only the
products coming from outside the US that pose a threat.

Though it was denied that the move was aimed at China, the announcement
came the same day senators heard testimony from quality regulators about
problems caused by the extremely rapid growth of imports from China.

That is really what this is all about - rising imports from China. It is
not the Chinese product scare, what is actually being played out is the
China scare - the antiquated, mercantilist fear of imports that China's
growing economic might evokes.

Chinese exports to the United States last year were nearly triple that of
just five years ago. Chinese exports to US totaled $288 billion while US
exports to China totaled $55 billion.

But according to Cato Institute, Americans have never earned or spent a
higher share of their income in the global economy than they do today. In
2006, what the US earned through exports and income from foreign
investments abroad reached a record 15.6 percent of gross domestic
product. Since China's entry into the World Trade Organization in 2001,
US exports to China have grown from $19 billion to $55 billion, an annual
average growth of 24 percent.

(For more biz stories, please visit Industry Updates)

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Learn mandarin - Coca-Cola aimLearn mandarin - Xenophobia at heart of product panic in USs to make China its largest market

?  ?

BIZCHINA / Biz Who

Coca-Cola aims to make China its largest market

(China Daily)

?  ?

BIZCHINA / Weekly Roundup

Xenophobia at heart of product panic in US

By Debasish Roy Chowdhury (China Daily)
Updated: 2007-07-31 15:22

The author Debasish Roy Chowdhury is a senior editor with China Daily

A new bout of food scare has gripped the United States, with the US Food
and Drug Administration urging people to throw away more than 90
different products, made at a Castleberry's Food Co plant, from chili
sauce to corned beef hash to dog food, for fears that they are causing
botulism, a muscle-paralyzing disease.

Seven cases of botulism have so far been reported. Most victims consumed
a hot dog chili sauce made at the company's plant in Georgia that has
been temporarily closed. The recall has been expanded to Canada as well.

Castleberry is owned by Bumble Bee Foods, the largest branded seafood
company in North America. Not China, the land from where many of the
"toxic food and lethal products" in the world supposedly emanate.

The list of product recalls in the US in recent months is almost
inexhaustible: in March, Ford Motor Company recalled new 2008 Super Duty
trucks made in a Kentucky plant after reports of tailpipe fires in the
diesel version of the vehicles; in June, California-based United Food
Group recalled 75,000 pounds of ground beef products as they were
suspected to have been contaminated with E. coli; and in July, Sara Lee
Corp began to recall dozens of its whole-wheat bread brands made at a
Mississippi bakery for fears that they may contain pieces of metal.

But the product scares and recalls the US media seems fixated on are the
ones from China. It is the faulty tires, toothpaste, pet food, seafood
and toys with a China connection that are making all the news, with cover
stories, editorials and television programs harping on how China's
"substandard" manufacturing methods are putting American consumers at
risk, how the factory to the world is actually one big sham, and
proffering ways to keep off products with any trace of China.

China's economic stardom is beginning to unravel - there had to be a
catch, it is all falling into place now.

Scare sells. As a bonus, the China horror story even has a feel-good
subtext - nothing can match American quality; if China makes goods
cheaper than America, now you know how, by cutting corners.

This fear of Chinese products is reinforced by administrative measures.
At the height of the product scare, the US government quickly formed a
Cabinet-level panel to recommend how to guarantee the safety of imported
food and other products. In this self-delusional world of policymaking,
the Castleberrys and the United Food Groups do not exist, it is only the
products coming from outside the US that pose a threat.

Though it was denied that the move was aimed at China, the announcement
came the same day senators heard testimony from quality regulators about
problems caused by the extremely rapid growth of imports from China.

That is really what this is all about - rising imports from China. It is
not the Chinese product scare, what is actually being played out is the
China scare - the antiquated, mercantilist fear of imports that China's
growing economic might evokes.

Chinese exports to the United States last year were nearly triple that of
just five years ago. Chinese exports to US totaled $288 billion while US
exports to China totaled $55 billion.

But according to Cato Institute, Americans have never earned or spent a
higher share of their income in the global economy than they do today. In
2006, what the US earned through exports and income from foreign
investments abroad reached a record 15.6 percent of gross domestic
product. Since China's entry into the World Trade Organization in 2001,
US exports to China have grown from $19 billion to $55 billion, an annual
average growth of 24 percent.

(For more biz stories, please visit Industry Updates)

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Updated: 2007-08-07 11:52

This year marks the 80th anniversary of Coca-Cola's entry into China, now
its fourth largest market after the US, Mexico and Brazil.

The world's largest beverage company, which recently launched an $80
million global research center and new China headquarters in Shanghai, is
planning to boost investment in sales infrastructure and product range in
the country, a market that could become Coca-Cola's largest, the company
says.

Doug Jackson, who became president of Coca-Cola China in April, talks
with China Daily reporter Zheng Lifei about his company's goals and
strategy in China.

Q: As the new head of China operations, what's your short-term goal and
long-term vision for the Chinese market?

A: Our goal in the next few years is to sustain the current strong growth
momentum. The non-alcohol drink market grows by 14 to 15 percent a year
in China, and we hope we can outdo the average market performance to
increase our sales volume and market share. We are also planning to
expand our product range and provide more choices for our customers.

We believe that China could become the largest market for Coca-Cola,
however, it is hard to predict when it will happen, but it certainly
will. Our long-term vision is to make China our largest market.

Q: What will be your priority in the coming years, especially in the next
two years? You said recently that you are going to put a significant
investment in infrastructure. Can you be specific about the plan?

A: Yes. I think in the next few years we will continue to invest in the
vendor equipment area. We'll continue to increase our cool drink
equipment across China very aggressively.

While we grow those areas, our bottler is also going to invest in trucks
and distribution facilities and sales people. So we have a huge increase
in the number of sales officers in some of smaller towns and cities as we
open them up or increase their infrastructure.

Of course, we will also invest in our R&D center. We will have about 200
people, up from the current 40. And we will make significant investments
in the next two years in research and development. These are principally
some of the areas where we will be aggressive.

QCoca-Cola has carried out some major acquisitions in America. Does the
company have a similar plan for China, and will the recent dispute
between the French food and beverage company Danone and Wahaha have any
impact on your acquisition plans in China?

A: well, I think in terms of our acquisition plans, we would always
continue to look at everything that happens in the marketplace. There are
many companies involved in our business in China and the non-alcoholic
drink business is very big in the country.

But we are still growing organically. Our sales grew by 18 percent in the
second quarter (in Chinese market). This is huge in terms of volume and a
big organic growth.

If such growth slows then perhaps we would look at acquisitions more
closely, and then look at everything and see if the opportunities stay.

We would certainly keep watching the developments between the companies
you mentioned, Danone and Wahaha.

Q: What kind of companies will you target if you are going to make such
acquisitions? Will the bottling companies or local beverage makers be
your priority?

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - China 'won't bow' to yuan pressure

?  ?

BIZCHINA / Top Biz News

China 'won't bow' to yuan pressure

By Xin Zhiming (China Daily)
Updated: 2007-08-04 09:14

China has been steadily increasing the flexibility of the yuan, but it
will not bow to outside pressure for faster revaluation, Minister of
Finance, Jin Renqing, said.

"The biggest challenge for China is to maintain the sound momentum in its
economic growth," Jin told reporters during the Asia Pacific Economic
Cooperation finance ministers meeting in Coolum, Australia. "China's
currency reform should be self-initiated, controllable and gradual," he
said.

Related readings:

?Paulson: China committed to yuan reform

?Yuan steady despite pressure

?Yuan needs another revaluation - economist

?Yuan role in China-US trade gap limited - economist

The two-day meeting, which concluded on Friday, has called for a more
flexible currency regime globally to reduce the global economic imbalance.

Japan has been in the spotlight as the yen has pushed the Korean won to a
decade high and the New Zealand dollar to a 22-year high. It has dampened
exports of both countries.

China has also been pressured by the United States in recent days to pick
up the pace of its yuan revaluation.

The US Senate Banking Committee and Senate Finance Committee have passed
legislation respectively to increase pressure on Washington to force
Beijing to toe the line.

But economists agree that the yuan's revaluation will not be sufficient
to lift the US out of its economic woes.

The US trade deficit as well as that of some other developed countries
have arisen, fundamentally, from their incomplete and poor industrial
structures, Liu Xiahui, an economist with the Chinese Academy of Social
Sciences, said.

"The US has developed to a stage where it does not manufacture much of
the traded goods," he said. "They must be imported from countries with
lower production costs and higher competitiveness."

The increased value of a currency will not do in the future, Liu said,
noting that even the Japanese yen has been revalued drastically, but the
country continues to enjoy huge trade surpluses.

Many economists agree that a freely floated currency will have little
adverse impact on an advanced market with good management expertise, but
it may deal a fatal blow to the developing markets, Liu said.

A hasty reform pace will jeopardize China's economy, economists said.

(China Daily 08/04/2007 page2)

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Chinese School - 1,028 US economists urge no protectionist against China

?  ?

BIZCHINA / Center

1,028 US economists urge no protectionist against China

(Xinhua)
Updated: 2007-08-02 15:02

More than 1,000 top American economists have signed a petition to urge
Congress not to impose protectionist measures against China, saying such
a move would hurt the US.

The petition, sponsored by the Club for Growth, was signed by a total of
1,028 economists from all 50 states and top universities.

In addition to many other prominent and well-respected economists,
signatories include Nobel laureates Finn Kydland, Edward Prescott, Thomas
Schelling and Vernon Smith.

Related readings:
?Paulson: China committed to yuan reform
?US's allegations of subsidies are groundless
?Economist forsees US launching trade sanctions against China
?
?Mundell: US calls for RMB rise a move to slow China's expansion

The economists said in the petition that China currently supplies
American consumers with inexpensive goods and low-interest rate loans and
retaliatory tariffs on China "are tantamount to taxing ourselves as a
punishment."

"Worse, such a move will likely encourage China to impose its own
tariffs, increasing the possibility of a futile and harmful trade war.
American consumers and businesses would pay the price for this senseless
war through higher prices, worse jobs, and reduced economic growth," they
warned.

"As economists, we understand the vital and beneficial role that free
trade plays in the world economy. Conversely, we believethat barriers to
free trade destroy wealth and benefit no one in the long run," they said.
"Because of these fundamental economic principles, we sign this letter to
advise Congress against imposing retaliatory trade measures against
China."

The economists said trade between the US and China is mutually
beneficial. Government data shows that total trade between the two
countries has soared from US$116 billion in 2000 to almost US$343 billion
in 2006. That's an average growth rate of almost 20 percent a year.

"This marvelous growth has led to more affordable goods, higher
productivity, strong job growth, and a higher standard of living for both
countries," said the signatories. "These economic benefits were made
possible in large part because both China and the United States embraced
freer trade."

"We urge Congress to discard any plans for increased protectionism, and
instead urge lawmakers to work towards fostering stronger global economic
ties through free trade," they concluded.

The economists expressed serious concerns about the recent protectionist
sentiments expressed in Congress, which on Wednesday passed a bill in the
Senate banking committee that would make it harder for the Treasury to
avoid a finding that China and other countries have "misaligned
currencies."

Last week, the Senate Financial Committee passed another bill that would
allow the US government to push other nations to adopt more market-based
currency policies or face sanctions.

(For more biz stories, please visit Industry Updates)

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Chinese School - CNOOC to exploit oil with US firm despite new tax policy

?  ?

BIZCHINA / Center

CNOOC to exploit oil with US firm despite new tax policy

(Xinhua)
Updated: 2007-08-01 11:24

China National Offshore Oil Corp (CNOOC), the country's largest offshore
oil producer, is in talks with a US firm for a possible product-sharing
contract on an oilfield in the South China Sea.

The contract, likely to be inked in a few weeks, will make Texas-based
Newfield Exploration Co the first to be affected by a new policy, which
will levy a five-percent tax from August 1 on offshore oil exports by
foreign firms that co-develop Chinese oilfields with domestic firms,

The policy is seen as another measure the Chinese government has taken to
curb exports of important resources, after a five-percent tax was
collected on exports of coal, coke and crude oil from November last year.

But it appears to have failed to dull the enthusiasm of foreign firms
intending to exploit oil in China's offshore waters.

The policy change would have "a very limited impact" on CNOOC's
cooperation with foreign firms in oil exploitation, Tuesday's Shanghai
Securities News quoted Xiao Zongwei, general manager of CNOOC's investor
relations department, as saying.

He declined to comment on the cooperation between his company and
Newfield on the new offshore oilfield in the South China Sea, the paper
said.

The South China Sea has long been considered to have rich oil and gas
resources, with a number of foreign firms - including Canada's Husky
Energy Inc, Australia's Roc Oil Co and Britain's BG Group Plc -
prospecting for and exploiting oil there.

For the last 25 years, the Chinese government had exempted such firms
from taxes on offshore oil exports to encourage them to cooperate with
domestic firms because offshore oil exploitation involves high risks and
requires advanced technology.

The new oilfield was in a 5,424-square-kilometer block, with a water
depth between of 10 meters and 60 meters, the paper said.

(For more biz stories, please visit Industry Updates)

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Chinese language - Expert: Market forces to squeeze China's securities sector

?  ?

BIZCHINA / News

Expert: Market forces to squeeze China's securities sector

(Xinhua)
Updated: 2007-07-31 08:53

Market competition should drive the number of Chinese securities firms
from 104 down to 30 to 50, says leading economist Wu Xiaoqiu.

Revenues generated by commissions on securities trading, driven by the
booming stock market, rocketed to more than 80 billion yuan in the first
half as against 460 million yuan in 2005, with 83 major firms earning 481
million yuan last year.

As commission revenues were the main income of securities companies,
market fluctuation had easily pushed them into tight corners in 2005,
when the stock market kept fell, said Cao Fengqi, director of the
Research Center for Finance and Securities of Peking University.

Brokering, underwriting and investing were traditionally the three main
businesses of securities companies, but small and middle-sized firms
lacked the money to cannot afford to the latter two operations, Cao
explained.

High commission revenues, generated by daily turnover of 200 billion
yuan, were unusual and unsustainable as the stock market would stabilize
and turnover would drop to about 100 billion yuan, said Wu, director of
the Financial and Securities Institute of Renmin University.

Securities companies would go through a long, cruel and market-determined
integration process based on core competitiveness, Wu said.

Companies could expand their revenue channels by integrating listed
companies, underwriting and investing, Wu said.

However, small and medium-sized firms could focus on local clients and
improve service quality to survive, Cao advised.

Chinese companies should realize that integration was a natural process
and learn how to merge and achieve mutual benefits, Wu said.

The country's securities companies broke away from the banks to become
independent in 1994.

In 2004, a campaign waged by the China Securities Regulatory Commission
to eliminate securities companies involved in fraud, insider trading and
other unethical practices reduced the number from 130 to below 110.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - FDI grows 50% in western China

?  ?

BIZCHINA / Center

FDI grows 50% in western China

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-07-27 15:31

In the first half this year, growth in overseas investment accelerated
significantly in central and western China and especially in the western
areas, with an 51.93 percent increase in actually utilized foreign direct
investment (FDI), 39.76 percent higher than the national average, said Ma
Xiuhong, Deputy Minister of Commerce, at the 4th International Investment
Promotion Forum.

Regional disparity has hindered China's sustainable development. Some
studies suggested that central and western China have lagged behind
eastern areas by eight years in terms of economic development and 10
years in terms of living standards.

As an effort to implement the concerted development strategy, set forth
by the 11th Five-Year Plan, the Ministry of Commerce had launched a
project, planning to introduce tens of thousands of overseas enterprises
to invest in the western part of China.

Ma added that the ministry will continue to support State-level
infrastructure construction and optimize the investment environment in
Chinese central and western areas.

Meanwhile, the 3rd Expo Central China is scheduled for April 26 to 28
next year, and could be a golden opportunity for Central China's
provinces to attract more foreign investment.

Central China includes the six provinces of Shanxi, Anhui, Jiangxi,
Henan, Hubei, and Hunan, covering an area of 1.028 million square
kilometers and with a population of 361 million.

(For more biz stories, please visit Industry Updates)

Chinese Mandarin

Learn mandarin - Dairy producers cancel discounts as costs rise

?  ?

BIZCHINA / Biz Life

Dairy producers cancel discounts as costs rise

(xinhua)
Updated: 2007-07-26 09:20

China's major dairy producers have called a halt to their long-term sales
promotion schemes due to the pressure from rising production costs,
according to the Dairy Association of China.

The no-promotion practice in Beijing and Harbin, two cities with a steady
dairy consumption, was carried out in accordance with an agreement signed
on June 21 by 14 dairy producers and will later be expanded to other
major cities such as Shanghai, Guangzhou and Chengdu.

The dairy enterprises, including leading players Mengniu, Yili, and
Bright Dairy & Food, hold a 90-percent share of the country's market.

A salesperson of dairy products in a supermarket in Beijing said the
price of packaged milk had also risen on top of the promotion being
canceled.

"The present price of domestic dairy products is nearly the same as that
in 2005," said Fan Xueshan, director of the Beijing Creamery Association,
"but the breeding cost of cows has increased a lot in recent years."

Statistics showed the price of corn, a major raw material for feedstuff,
rose 14.7 percent in the first half of the year and registered a ten-year
average high between January and April.

Related readings:
?CPI growth to slow in 2nd half
?China's pork prices soar 74.6%
?Inflation fears block fuel price rise

The tight supply of raw material imports also contributed to the rise in
costs. Powdered milk output from New Zealand and Australia, China's major
importing partners, decreased due to drought.

Chinese dairy enterprises have been reluctant to raise their prices for
fear of losing their share in the fiercely competitive market.

"The dairy enterprises used to find other ways to cut costs or directly
pay for the higher costs when the production costs increased," said Wang
Huaibao, deputy director of the Diary Association of China.

Wang said only one third of the country's dairy enterprises were making
profits and another third were suffering losses, although the whole
sector recorded a 23-percent annual growth rate in the past six years.

Continued sales promotions have caused dairy producers to lose about five
billion yuan (667 million U.S. dollars) in sales income, 91 percent of
the total for the whole sector in 2006, according to the Diary
Association of China.

With the dairy enterprises struggling with narrowing profit margins,
dairy farmers have also suffered due to the low price of crude milk.
Statistics showed dairy farmers could only make less than 10 percent of
the total profits for the sector.

Dairy farmers in Shanxi province were reported to have sold their
homebred cows, worth 20,000 yuan each before, at several thousand yuan
for the meat in May.

That would greatly harm the enthusiasm of dairy farmers and further
undermine the development of domestic dairy industry, Fan said.

China's annual milk consumption per person is 6.6 kg, compared with the
world average of 102 kg.

The interests of dairy farmers and producers should be prioritized to
ensure the long-term development of domestic dairy industry, Wang said.

(For more biz stories, please visit Industry Updates)

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