Trade
Political and
International News
National People's
Congress
Economy
Healthcare
Foreign Investments
Food/Consumer Product
Safety Issues
Energy & Environment
Insurance & Finance
Internet
Cross - Straits
General News
US Chamber China Trade & Investment News
June 26, 2008
Trade
June 26: The recent hike in price of gasoline will boost sales of small cars, as the majority of
Chinese aspiring to buy private cars turns to economy cars. Passenger car sales are
expected to grow only 15 percent in 2007, down 5 percentage points from the average
growth in recent years.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16097&cat=TRP
June 26: US Industry files AD, CVD petition on tow-behind lawn mowers from China.
http://www.chinatradeextra.com/
June 25: Shopping channel sales in China hit $1.5 billion in 2007, up 87.5 percent from
2004, and are set to soar further over the next decade. The joint report by the organizing
committee of the Shanghai Television Festival and the Beijing-based CSM Media Research
Company forecast China's TV shopping sales would hit $2.91 billion in 2008. Sales could
reach $72.8 billion over the next 10 years, equal to about 3 percent of total retail sales.
http://news.xinhuanet.com/english/2008-06/25/content_8436912.htm
June 25: Mobile-phone sales in China, the world's biggest handset market, grew the slowest
in four years. According to Bloomberg news, sales gained 8.7 percent in May from 2007, the
slowest rate since 2004 and less than half the 18.4 per cent increase recorded for Jan-Apr
2008.
http://www.thisdayonline.com/nview.php?id=115165
June 25: Chinese copper smelters hope by the second half of 2008 they will be able to
import some concentrate tax-free, a move that could boost Chinese exports of the metal and
dampen global prices but push up the local market. That policy was scrapped by China two
years ago in an attempt to keep more copper at home and to cut power consumption by the
copper refining industry, which is highly energy intensive.
http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL2516519020080625
Political and International News
June 26: During discussions at the Strategic Economic Dialogue between China and the
United States, Cisco China has signed separate cooperation agreements with China Mobile
and China Construction Bank. John Ng, senior vice president and general manager Cisco
China reported, "Cisco has cooperated with CMCC and CCB over the years, and is
committed to becoming a trustworthy partner of local customers."
http://www.chinatechnews.com/2008/06/26/6925-sed-update-cisco-signs-agreements-withchinese-bank-telecom/
June 26: China urged the international community to do more to end violence in war-torn
Darfur, it had done all it could to end a worsening humanitarian situation. Beijing has come
under intense criticism for allegedly turning a blind eye to Sudan's repression of an
insurgency in the Darfur region and contributing to the estimated 300,000 deaths.
http://online.wsj.com/article/BT-CO-20080626-700019search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.nytimes.com/reuters/world/international-china-sudandarfur.html?_r=1&scp=2&sq=China&st=nyt&oref=slogin
http://www.washingtonpost.com/wp-dyn/content/article/2008/06/26/AR2008062600278.html
June 26: China State Councilor and Minister of Public Security Meng Jianzhu has urged all
police forces and security departments for the upcoming Olympics to make safeguarding the
Games their top priority. Meng made the remark while inspecting the security staff and
facilities of the Olympic venues in Beijing.
http://www.chinadaily.com.cn/olympics/2008-06/26/content_6796856.htm
June 26: North Korea was expected to hand China a long-delayed account of its shadowy
nuclear activities, a step that could see it removed from Washington's list of terrorist states. A
milestone on the way to ending its nuclear ambitions, the move could also win the reclusive
state diplomatic recognition and desperately needed aid and fuel to prop up its economy.
http://www.nytimes.com/reuters/news/news-korea-north.html?scp=13&sq=China&st=nyt
http://www.washingtonpost.com/wp-dyn/content/article/2008/06/26/AR2008062600252.html
June 26: Moldova and China have deepened cooperation in various fields and achieved
fruitful results in recent years. Moldovan President Vladimir Voronin made the remarks at a
meeting with outgoing Chinese Ambassador Gong Jianwei. Bilateral relations have enjoyed a
sound political foundation, adding that the two countries have maintained dialogue at various
levels and close cooperation in international affairs.
http://english.people.com.cn/90001/90776/90883/6437271.html
June 26: The Chinese Academy of Engineering and the National Academy of Engineering of
the United States signed a cooperation memo. The two sides agreed to promote further
cooperation and exchange in engineering sciences in accordance with respective financial
ability and the laws of both countries.
http://news.xinhuanet.com/english/2008-06/26/content_8439016.htm
June 26: Chinese Vice President Xi Jinping's visits to the Democratic People's Republic of
Korea (DPRK), Mongolia, Saudi Arabia, Qatar and Yemen will effectively push forward the
development of China's ties with these countries. The visits will enhance communication and
mutual trust between China and the five nations.
http://news.xinhuanet.com/english/2008-06/26/content_8439015.htm
National People's Congress
June 26: The State Council discussed and passed a provision on the function disposition of
ministries and their affiliated departments. The provision also covered areas of internal
structure and staffing of ministries and their subordinate departments. Functions in the areas
of energy resources management, environmental protection, social management and public
services concerning people's livelihood were reinforced, according to the provision.
http://news.xinhuanet.com/english/2008-06/26/content_8439009.htm
Economy
June 26: China, the world's biggest vegetable- oil consumer, will increase use of the
commodity from state reserves in an effort to stabilize rising prices. Costs of imported
soybeans rose 78 percent in Jan-May 2008 from 2007, while prices of vegetable oil gained
76 percent, lifting domestic prices. China will increase the use of reserve oil to control rising
vegetable oil prices. China is also boosting domestic oilseed and vegetable-oil production,
which may gain 22 percent to 16.5 million tons in 2008.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJv3WLjNDAt0
June 26: According to China’s Central Bank survey, half the people living in cities expect
prices to continue to rise in coming months. The survey, which covered nearly 20,000 people
in 49 cities, found that for the second quarter of 2008, 50.5 percent thought inflation would
still go up in the next three months. People deeming prices "too high" reached 45 percent, up
15.5 percentage points from a year ago, but declining for the first time since 2007 from the
49.2 percent recorded in the first quarter of 2008.
http://online.wsj.com/article/BT-CO-20080626-700426search.html?KEYWORDS=China&COLLECTION=autowire/6month
June 25: After China's energy price rise was announced, the research departments of
prestigious investment banks predicted that it would bring the CPI growth in the later half of
2008 up by 0.4 percentage point, driving the annual CPI growth above 7 percent. Compared
with the 4.8 percent growth in CPI expected by the policymakers for 2008, this possible
change in the inflation indicator would intensify the pressure for economic policymaking.
http://news.xinhuanet.com/english/2008-06/26/content_8441777.htm
Healthcare
June 26: In China there could be 2.3 million drug abusers. According to the 2008 Annual
Report on Drug Control in China, the number of known drug addicts in the country has risen
to 1 million from 900,000 in 2006. About 80 percent of the drug abusers are addicted to
heroin. However, the number of those addicted to new types of drugs such as Ice and
Ketamine is growing rapidly, especially among people below 35.
http://www.chinadaily.com.cn/china/2008-06/26/content_6795284.htm
Foreign Investments
June 26: China's foreign-exchange reserves rose by about $40 billion in May 2008, a
slowdown from the record increase of almost $75 billion in April 2008 that could indicate a
reduction in the rapid capital inflows that have drawn official concern. The nation's foreignexchange reserves at the end of May totaled $1.797 trillion, up from about $1.76 trillion at the
end of April.
http://online.wsj.com/article/SB121442253262004333search.html?KEYWORDS=China&COLLECTION=wsjie/6month
http://piaohaoreport.sampasite.com/china-financial-markets/blog/default.htm
http://blogs.cfr.org/setser/2008/06/25/a-tale-of-two-asias-china-and-almost-everyoneelse/#more-3621
June 26: Joint Committee on taxation lays out implications of Sovereign Wealth Funds.
http://www.chinatradeextra.com/
June 26: Sinosteel Corporation is seeking Australian approval to take a substantial stake in
Murchison Metals Limited, which may allow it to control a $2.9 billion mining project. The
Treasury will study Sinosteel's plans to buy a substantial shareholding and Murchison's
assets for 90 days.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anLIdtG6UAw4
June 26: China Development Bank and Temasek Holdings Pte put more money into
Barclays Plc, betting the UK lender would recover from a slump that wiped out half its market
value since they first bought stakes in 2007. Barclays, Britain's fourth-biggest bank, will raise
$8.9 billion from investors, including Singapore's Temasek and China Development, to
bolster capital and expand operation.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIQoF_KAKSk8
June 26: Chinese interest in US commercial property is back, and this time Chinese
investors may become significant players as the nation devises a vehicle to divert large
amounts of funds for foreign investment. Flush with dollars from a huge trade surplus, the
Chinese sovereign wealth fund is beginning to test the waters in New York real estate.
http://www.chinadaily.com.cn/china/2008-06/26/content_6797165.htm
June 26: With its first acquisition in China, specialty chemicals company Lanxess AG is
expanding the Asian business of its Inorganic Pigments business unit. In Jinshan near
Shanghai, Lanxess is to acquire two production units from its previous cooperation partner
Jinzhuo Chemicals Company Limited.
http://online.wsj.com/article/BT-CO-20080626-700968search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.shanghaidaily.com/sp/article/2008/200806/20080626/article_364644.htm
June 26: Deutsche Bank AG signed an agreement with Shanxi Securities Company to form
a new securities joint venture in China, a move that could allow the German bank to
underwrite share offerings on China's domestic exchanges. The agreement, if approved by
government regulators, would make Deutsche Bank the latest Western firm to sign up a
mainland partner under a new arrangement reached with Beijing late 2007.
http://online.wsj.com/article/SB121446362920506613search.html?KEYWORDS=China&COLLECTION=wsjie/6month
June 25: China saw a phenomenal surge in hot money inflows at exactly the same point that
it was holding USD/CNY around the CNY7 level, indicating that pressure on the RMB
continues. Chinese foreign asset growth – counting central bank reserves, the CIC, and
funds managed by the state banks in 2007 was over two times the global increase in
reserves in 2000 or 2001.
http://www.rgemonitor.com/26/China
Food/Consumer Product Safety Issues
June 26: Kirk reveals FDA China Director, costs of Inspection Officers in China.
http://www.chinatradeextra.com/
Energy & Environment
June 26: China National Petroleum Corporation, the biggest integrated oil and gas company
in the country, has started construction of China's first coal bed methane pipeline, in an effort
to boost energy supply. The pipeline is expected to carry three billion cubic meters of CBM
annually.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16094
June 26: China Datang Corporation, the parent of the biggest Chinese electricity producer
listed in Hong Kong by market value, received government approval to build a $420 million
power plant in northeastern China. The National Development and Reform Commission
approved China Datang's proposal to build a coal-fired plant with a capacity of 600
megawatts in Changchun, the capital of Jilin province.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKsXrKU6g1kU
Insurance & Finance
June 26: Ping An Insurance (Group) Company, China's second largest life insurer, will
accelerate integration of its banking business over the next three to five years. Ping An will
also make efforts to quicken the pace of development of emerging financial businesses, the
company's main focus in 2008 is to expedite the construction of a global platform for asset
allocation.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16100&cat=FIN
June 26: Li Ka-shing, Chairperson of Cheung Kong (Holdings) Limited, raised his holdings in
the company to 40.19 percent from 40.16 percent. Li Ka-shing bought 500,000, involving a
total investment of $7.2 million. This is the sixth time Li bought in the shares of Cheung Kong.
Cheung Kong, Asia's second-largest property developer, is keen to invest more in the Asia
region, including Hong Kong, mainland China and Singapore.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16102
June 26: Hang Seng Bank Limited, Hong Kong's third-largest lender by assets, raised its
mortgage rates for some customers by a quarter of a point amid increasing borrowing costs
in the interbank market. The mortgage-rate increase by one of the city's major lenders follows
similar moves by smaller banks in the territory.
http://online.wsj.com/article/SB121442030086204035search.html?KEYWORDS=China&COLLECTION=wsjie/6month
June 26: China's listed companies must implement the measures they pledged to make to
improve their corporate governance by November 30. The companies must file statements
on relevant stock exchange Web sites detailing their progress on the matter by June 30
2008.
http://online.wsj.com/article/BT-CO-20080625-717173search.html?KEYWORDS=China&COLLECTION=autowire/6month
June 25: China's central bank continued to inject funds into the money market through its
open market operations, with a net injection of $11.5 billion. The People's Bank of China sold
$1.75 billion worth of three-month bills at 3.3978 percent and $145.71 million worth of threeyear bonds at 4.56 percent.
http://online.wsj.com/article/BT-CO-20080625-717146search.html?KEYWORDS=China&COLLECTION=autowire/6month
June 25: China's ShengdaTech Incorporation will invest $56 million in a new location in the
Zibo High-Tech Development Industrial Zone in Zibo, Shandong Province. The Tai'an City,
China, nano precipitated calcium carbonate and coal-based chemical maker reported the
initial investment in this new location would be for the purchase of 58 acres of land, the
construction of the plant and for equipment.
http://online.wsj.com/article/BT-CO-20080625-711476search.html?KEYWORDS=China&COLLECTION=autowire/6month
June 25: China Southern Airlines Company’s shareholders approved a plan to sell $582
million worth of bills with a maturity of up to one year. The shareholders also approved an
issue up to $218.5 billion worth of three-year bonds to supplement its working capital.
http://online.wsj.com/article/BT-CO-20080625-716008search.html?KEYWORDS=China&COLLECTION=autowire/6month
June 25: In the first quarter of 2008, the number of credit card holders in China surged 92.9
percent year-on-year, to 104.73 million. New bank cards issued, including debit and credit
cards, totaled 1.58 million, up 29.1 percent year-on-year, 93.4 percent of which were debit
cards.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16090
June 25: Longhu Real Estate Company Limited, one of China's leading property firms based
in West China's Chongqing Municipality, is planning an initial public offering in Hong Kong to
raise up to $1 billion. The developer has received approval from the Hong Kong Stock
Exchange.
http://www.marketavenue.cn/upload/NEWS_40537.htm
June 25: China's insurance industry registered robust growth in Jan-May 2008, with premium
income rising to $67 billion. Premium from life insurance amounted to $51.69 billion in
January-May, while that from property insurance stood at $15.30 billion.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16089
Internet
June 26: Starting June 26 2008, sellers of such special goods such as food and healthcare
products must present relevant certificates before they can sell their goods on Internet
auction website Taobao.com. Taobao says during its treatment of complaints it has found out
that most of the complaints are made against food, healthcare products, cosmetics and diet
pills.
http://www.chinatechnews.com/2008/06/26/6927-chinas-taobao-will-ban-internet-sale-ofunlicensed-food-products/
Cross - Straits
June 26: Eleven airlines, six from the mainland and five from Taiwan, will operate 144 crossStrait return flights next month, reflecting an agreement to expand charter flights that have
run during four traditional festivals to every weekend.
http://news.xinhuanet.com/english/2008-06/26/content_8442895.htm
June 25: Uni-President Enterprises Corporation, a Taiwan-based food producer, is planning
to invest $98.76 million for acquisitions of food or beverages makers of mainland China. UniPresident is principally engaged in food products' manufacture, processing and sales.
http://news.alibaba.com/134298_China/311685/Uni_President_Seeks_Acquire_Mainland.htm
June 25: Taiwan plans to open its doors for mainland banks to invest in their counterparts on
the island, with an initial investment cap fixed at 20 percent. The move, part of Taiwan's
efforts to liberalize its financial sector, is expected to promote and enhance economic
exchanges between China and Taiwan.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16087
General News
June 26: Hong Kong companies may shut 20,000 factories in the neighboring Chinese
province of Guangdong in 2008 due to increased costs from higher fuel prices and wages.
According to Danny Lau, chairperson of Hong Kong Small and Medium Enterprises
Association, at the end of 2008, maybe only 50,000 Hong Kong- owned businesses will
remain, of about 70,000 in the province.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAjeTYvv7rfo
June 26: The first phase of the network of Beijing's wireless city program has been put into
trial operation, enabling Beijing citizens and travelers from both home and abroad to access
to internet in Beijing's urban areas via a wireless network. Beijing's wireless city program was
undertaken by China Comm, one of the largest city wireless broadband network constructors
and operators in China.
http://www.chinatechnews.com/2008/06/26/6928-wireless-city-beijing-plans-trial-operationduring-olympics/
June 26: Airbus has started shipping aircraft components and sub-assemblies to its joint
venture in China. The first aircraft from the new single-aisle assembly line in the Chinese port
city of Tianjin is expected to be delivered to Sichuan Airlines in the first half of 2008.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16095
June 26: China Unicom, currently the second largest wireless telecom operator in the
country, will transfer 30,000 base stations to fixed-line telephone operator China Telecom,
which will acquire its CDMA business on the back of China's restructuring of its telecom
industry.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16099&cat=CMP
June 26: China's fast-growing number of mobile phone accounts has risen more than 8
percent since the start of 2008 to 592 million, while demand for traditional fixed-line service is
falling. The figures reflect a growing trend for Chinese customers to opt solely for mobile
service..
http://www.nytimes.com/aponline/business/AP-China-MobilePhones.html?scp=3&sq=China&st=nyt
http://www.washingtonpost.com/wp-dyn/content/article/2008/06/26/AR2008062600162.html
June 26: ArcelorMittal, the world's largest steel producer, intends to acquire a majority stake
in a major Chinese steel producer but achieving the goal may take at least five years. The
Chinese government may not allow majority stakes for foreigners in the steel industry until it
completes regional consolidation.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16098
June 26: As Macao's tourism industry continues its rapid development, the island city saw its
market share of international markets in visitor arrivals rose to 10.5 percent in Jan-May 2008.
During the period, visitor arrivals almost reached 12.6 million, registering an increase of 17.4
percent year-on-year, and the Chinese Mainland, Hong Kong and Taiwan continued to be the
three largest visitor-generating markets.
http://english.people.com.cn/90001/90776/90884/6436924.html
June 25: International Business Machines Corporation (IBM) has set up new cloud
computing data centers in China's Beijing and South Africa's Johannesburg. The newly set
up centers will deliver software and services to businesses and academics in these booming
regions on demand. Cloud computing is a technology that links disparate servers over the
Internet.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16088
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