Chinese Mandarin - China allowsChinese language - US urged to work with China on energy issues CHINA / Foreign Media on China US urged to work with China on energy issues (Financial Times) Updated: 2006-03-14 08:24 http://news.ft.com/cms/s/a0470f9a-b2c6-11da-ab3e-0000779e2340.html The US must expand international co-ordination of energy issues, especially with China and India, to address concerns about growing global competition for energy resources, the chairman of the Senate foreign relations committee said on Monday. In a speech in Washington, Dick Lugar, the influential Republican senator, warned: ��No one who is honestly assessing the decline of American leverage around the world due to energy dependence can fail to see that energy is the albatross of US national security.�� His remarks highlight the extent to which energy security has moved rapidly up the US political agenda, driven by an unusual coalition of interests. These include national security specialists concerned about US reliance on foreign oil in troubled parts of the world, environmentalists and unions keen to create jobs in the US by developing alternative energy sources. Political interest in the issue was underlined by President George W. Bush's unexpected comments in his State of the Union speech in January, when the former oil executive warned that the US ��was addicted to oil��. Mr Lugar on Monday called that phrase a ��seminal moment in American history, when a US president said something contrary to expectations,�� and compared it with ��President Nixon using his anti-communist credentials to open up China��. As debate about Iran��s nuclear ambitions shifts to the United Nations Security Council, Mr Lugar highlighted the dangers of transferring billions of dollars to unaccountable regimes and warned that economic sanctions against Iran might not work. ��Iran has been anticipating a crisis by accumulating funds [from high oil prices], so if they shut off oil supplies it could have savings to draw down for a long period of time. That is not well recognised and allows Iran and other states a degree of invulnerability to economic sanctions,�� he said. Mr Lugar noted that 77 per cent of the world's oil supply was controlled by foreign governments, and that the US paid 17 per cent more for its energy in 2005 than the year before. Energy costs now account for a third of the US trade deficit. He predicted that the US would spend $320bn on oil imports this year. To reduce US vulnerability he said he would introduce an Energy Diplomacy and Security Act this week to expand international co-operation to ��enhance preparedness for major disruptions in oil supplies��. He said a priority was formal co-ordination with China and India as they developed strategic petroleum reserves. He also called for new regional partnerships in the west. More controversially, he suggested that there be a $35 a barrel price floor for oil, to provide security for companies seeking to invest in alternative fuels. He admitted that he was still speaking to economists about how this could be achieved. Related Full Coverages NPC session ends, Premier meets journalists Premier Wen Jiabao answers questions from foreign and domestic journalists after the conclusion of the annual session of the National People's Congress in Beijing March 14, 2006. The annual meeting of the top lawmaking body closed at the Great Hall of the People. [Xinhua] UNSC members meet for Iran nuke issue Most Commented/Read Stories in 48 Hours � Bird flu control long-term task: Vice Premier � Top legislature mulls abolishing agricultural tax regulation � Hebei court hears deadly land dispute case � Top legislature mulls abolishing agricultural tax regulation � Top legislature mulls abolishing agricultural tax regulation Today's Top News � Wen: We're keeping close eye on secessionist moves � Premier rules out RMB surprise rise � NPC endorses shift in economic policy � Minister: Stay away from wild birds � Wen: China to stay the reform course Top China News � Chertoff: China won't take back deported citizens � Premier: No RMB surprise rise � Rules to regulate TV entertainment contests � Toll hits 21 in N. China coal mine blast � China to press on with reforms: Premier Wen Chinese language CHINA / Foreign Media on China US urged to work with China on energy issues (Financial Times) Updated: 2006-03-14 08:24 http://news.ft.com/cms/s/a0470f9a-b2c6-11da-ab3e-0000779e2340.html The US must expand international co-ordination of energy issues, especially with China and India, to address concerns about growing global competition for energy resources, the chairman of the Senate foreign relations committee said on Monday. In a speech in Washington, Dick Lugar, the influential Republican senator, warned: ��No one who is honestly assessing the decline of American leverage around the world due to energy dependence can fail to see that energy is the albatross of US national security.�� His remarks highlight the extent to which energy security has moved rapidly up the US political agenda, driven by an unusual coalition of interests. These include national security specialists concerned about US reliance on foreign oil in troubled parts of the world, environmentalists and unions keen to create jobs in the US by developing alternative energy sources. Political interest in the issue was underlined by President George W. Bush's unexpected comments in his State of the Union speech in January, when the former oil executive warned that the US ��was addicted to oil��. Mr Lugar on Monday called that phrase a ��seminal moment in American history, when a US president said something contrary to expectations,�� and compared it with ��President Nixon using his anti-communist credentials to open up China��. As debate about Iran��s nuclear ambitions shifts to the United Nations Security Council, Mr Lugar highlighted the dangers of transferring billions of dollars to unaccountable regimes and warned that economic sanctions against Iran might not work. ��Iran has been anticipating a crisis by accumulating funds [from high oil prices], so if they shut off oil supplies it could have savings to draw down for a long period of time. That is not well recognised and allows Iran and other states a degree of invulnerability to economic sanctions,�� he said. Mr Lugar noted that 77 per cent of the world's oil supply was controlled by foreign governments, and that the US paid 17 per cent more for its energy in 2005 than the year before. Energy costs now account for a third of the US trade deficit. He predicted that the US would spend $320bn on oil imports this year. To reduce US vulnerability he said he would introduce an Energy Diplomacy and Security Act this week to expand international co-operation to ��enhance preparedness for major disruptions in oil supplies��. He said a priority was formal co-ordination with China and India as they developed strategic petroleum reserves. He also called for new regional partnerships in the west. More controversially, he suggested that there be a $35 a barrel price floor for oil, to provide security for companies seeking to invest in alternative fuels. He admitted that he was still speaking to economists about how this could be achieved. Related Full Coverages NPC session ends, Premier meets journalists Premier Wen Jiabao answers questions from foreign and domestic journalists after the conclusion of the annual session of the National People's Congress in Beijing March 14, 2006. The annual meeting of the top lawmaking body closed at the Great Hall of the People. [Xinhua] UNSC members meet for Iran nuke issue Most Commented/Read Stories in 48 Hours � Bird flu control long-term task: Vice Premier � Top legislature mulls abolishing agricultural tax regulation � Hebei court hears deadly land dispute case � Top legislature mulls abolishing agricultural tax regulation � Top legislature mulls abolishing agricultural tax regulation Today's Top News � Wen: We're keeping close eye on secessionist moves � Premier rules out RMB surprise rise � NPC endorses shift in economic policy � Minister: Stay away from wild birds � Wen: China to stay the reform course Top China News � Chertoff: China won't take back deported citizens � Premier: No RMB surprise rise � Rules to regulate TV entertainment contests � Toll hits 21 in N. China coal mine blast � China to press on with reforms: Premier Wen Chinese language trusts, insurers into interbank market

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BIZCHINA / Center

China allows trusts, insurers into interbank market

By (Bloomberg)
Updated: 2007-07-09 16:17

China will allow trust companies, financial leasing firms and insurers to
borrow from each other for the first time, as it seeks to develop an
interbank market where trading surged 10-fold over the past decade.

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?A new system for interbank lending

Auto financing firms and insurance asset management units will also be
allowed in the interbank market, effective August 6, the People's Bank of
China said in a statement on its Web site.

China established the interbank lending market in 1996 and by the end of
last year, it had 730 members, including domestic and foreign banks as
well as securities firms. Trading totaled 2.15 trillion yuan ($283
billion) in 2006.

Banks can borrow for as long as one year while leasing and insurers can
borrow for up to three months. For brokerages and trust companies, the
limit is seven days, according to today's statement.

The central bank in January started publishing a new benchmark rate for
borrowing between banks, known as the Shanghai interbank offered rate, or
Shibor, moving toward a more market-driven financial system.

China has been relaxing controls on interest rates as part of efforts to
develop its capital markets and reduce reliance on administrative edicts
to manage the economy.

(For more biz stories, please visit Industry Updates)

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