China's Economy - News and Projects III

[everywhere]

Sina looks to cash in on Weibo craze
(Shanghai Daily, May 16)

SINA Corp, the operator of China's largest Internet portal and the popular microblogging service Weibo, is stepping up efforts to make money out of Weibo.

Company executives however warned of further losses this year due to spending on marketing and technology upgrades for Weibo.

Chief executive officer Charles Chao said at a conference call today after the earnings release that it expects to have 300,000 enterprise Weibo accounts.

The company said earlier this year investment on Weibo will amount to about US$160 million.

Last month, it launched a new version for enterprise accounts, and has signed around 50 advertisers for the microblogging platform.

In the three months ended March 30, Sina's net loss was US$13.7 million, compared with a year-earlier profit of US$15 million.

Advertising income on the social networking platform, though still insignificant at the moment, will start to make bigger contributions to its overall income in the next few quarters.

By the end of March, Weibo had 324 million registered users and about 9 percent are daily users.

Its revenue, mainly coming from online advertising on its portal site, rose 6 percent year on year to US$106.2 million.

http://www.shanghaidaily.com/nsp/Bus...Weibo%2Bcraze/

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China's tourism investment hit 206 bln yuan in 2011
(Shanghai Daily, May 17)

BEIJING, May 16 (Xinhua) -- Investment in China's tourism industry hit 206.4 billion yuan (32.8 billion U.S. dollars) last year, according to data from the National Tourism Administration (NTA) issued Wednesday.

Private investment accounted for 39 percent of the total, said Wu Wenxue, a senior NTA official.

Investment by the government and state-owned enterprises accounted for 25 and 13 percent of the total, respectively, Wu said at a press briefing.

Meanwhile, 23 percent of the total came from bank loans, Wu said.

Scenic areas, vacation resorts and the renovation of tourist cities took 66 percent of the investment, while investment in restaurants and hotels accounted for 18 percent, data showed.

Wu said China's economically developed eastern region was the top spot for tourism investment, consuming more than half of the total investment last year.

As of the end of 2011, accumulative investment in tourism projects nationwide totaled 2.67 trillion yuan, the data showed.

http://www.shanghaidaily.com/article...a.asp?id=71202

[everywhere]

China Mobile and Apple talk 4G iPhone launch
(Shanghai Daily, May 17)

CHINA Mobile is talking with Apple Inc to unveil the new iPhone that will run on the telco's 4G network.

"China Mobile and Apple both have the will to strengthen cooperation," Xi Guohua, China Mobile's new chairman, said yesterday, without elaborating.

Xi, however, didn't provide details of the cooperation during his speech at a shareholders' meeting in Hong Kong. Apple declined to comment on the issue.

China Mobile is expected to team up with Apple to launch the iPhone which supports TD-LTE, a home-grown 4G technology that provides 10-20 times faster Internet access speed for mobile device users.

China Mobile will expand 4G network trials to nine cities from six in 2011, and add 20,000 base stations to the 900 it built last year.

At present, China Telecom and China Unicom are Apple's carrier partners on its popular smartphone on the Chinese mainland, and their tie-up has hurt China Mobile's market share in the high-end 3G segment.

The sales of iPhone in China may reach 25 million units this year and at least 35 million units next year if China Mobile and Apple don't come to a deal. If they have a deal, the iPhone sales in China will jump to 125 million units in 2013, Deutsche Bank said.

http://www.shanghaidaily.com/nsp/Bus...hone%2Blaunch/

[everywhere]

Sina eyes money out of Weibo
(Shanghai Daily, May 17)

SINA Corp, the operator of China's largest Internet portal and the popular microblogging service Weibo, is boosting efforts to make money out of Weibo after unveiling a second quarterly loss.

In a conference call yesterday after releasing its earnings, CEO Charles Chao said the firm expects to have 300,000 enterprise Weibo accounts, nearly double the 160,000 now.

Last month, it unveiled a new version for enterprise Weibo accounts and has signed about 50 advertisers on the microblogging platform.

Advertising income on the social networking platform Weibo, the Chinese version of Twitter, will contribute to Sina's overall income in the next few quarters.

"Social interest-based advertising on Weibo will start to contribute to our overall income substantially from the second half of this year," Chao said.

In the three months ended March 30, net loss was US$13.7 million versus a year-earlier net profit of US$15 million. Its revenue rose an annual 6 percent to US$106.2 million.

http://www.shanghaidaily.com/nsp/Bus...%2Bof%2BWeibo/

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News Analysis: Purchase subsidies for energy-saving appliances boost economy
(Shanghai Daily/Xinhua, May 17)

BEIJING, May 16 (Xinhua) -- Experts say the latest government plan to subsidize purchases of energy-saving home appliances will help to stabilize China's economic growth, as well as make it easier to realize its energy-saving goals.

The announcement of the subsidy program late Wednesday by the State Council, or China's cabinet, was a timely fine-tuning measure by the government amid slowing exports and domestic demand, said Wang Jun, a researcher at the China Center for International Economic Exchanges.

"The subsidy program for promoting the consumption of energy-saving products may boost sales by 500 billion yuan (79.5 billion U.S. dollars)," Wang said. [ The State Council announced Wednesday that the government will earmark 26.5 billion yuan to subsidize the consumption of household electrical appliances for a one-year period.

The appliances include air conditioners, flat-panel television sets, refrigerators, washing machines and water heaters that meet energy-saving standards, according to a statement released after an executive meeting of the State Council presided over by Premier Wen Jiabao.

Meanwhile, the government will allocate another 2.2 billion yuan to promote the consumption of energy-saving light bulbs and LEDs (light-emitting diodes) and 6 billion yuan for purchases of vehicles with engine sizes below 1.6 liters, the statement said.

Another 1.6 billion yuan will be earmarked to promote the consumption of highly efficient electrical machinery, according to the statement, which did not elaborate on how the subsidies will be implemented.

The statement said the promotion of energy-saving products can help maintain economic momentum and expand domestic demand, as well as boost economic restructuring and energy savings.

The government will also carry out public campaigns to promote frugality and low-carbon consumption, the statement said.

"The subsidies will hopefully make the consumption of green home appliances a new engine for growth and stabilize the industry's production," Wang said.

Wang said the subsidies may also give a boost to the slowing economy, which grew 8.1 percent in the first quarter of this year, marking the slowest growth in nearly three years. Exports rose only 4.9 percent year on year in April, down from a 8.9-percent increase in March.

Wang said adopting short-term subsidy programs is largely intended to expand domestic consumption. He said the government should carry out reforms concerning income distribution in order to encourage consumption among middle- and low-income earners.

When the global financial and economic crisis hit in June 2009, China implemented a similar subsidy program that boosted sales of energy-saving cars and home appliances by hundreds of billions of yuan.

http://www.shanghaidaily.com/article...a.asp?id=71218

[everywhere]

China, Netherlands vow to expand mutual investment, oppose trade protectionism
(Shanghai Daily/Xinhua, May 17)

THE HAGUE, May 16 (Xinhua) -- China and the Netherlands on Tuesday agreed to expand their mutual investment and oppose trade protectionism to seek closer trade ties.

"China will provide more stable, transparent, standard and efficient investment environment for foreign enterprises. At the same time, we expect the Dutch side to offer more convenience for the Chinese enterprises," said visiting Chinese top legislator Wu Bangguo during a meeting here with caretaker Dutch Prime Minister Mark Rutte.

The meeting took place after Wu, chairman of the Standing Committee of China's National People's Congress (NPC), arrived in Amsterdam for an official goodwill visit, the first one by a Chinese top legislator to the Netherlands.

Sino-Dutch trade reached 68.2 billion U.S. dollars in 2011, up by 21 percent from the previous year. The Netherlands is now China's second largest trading partner and third largest foreign investment source within the EU.

Wu stressed coordination between the two countries on fighting against trade protectionism, saying they should work together to promote less and cautious use of trade remedy measures by the European Union (EU).

"The two countries should make use of their own advantages, tap potentials for further cooperation in areas such as high-end manufacturing, new energy, environmental protection, finance and insurance," he said.

During the meeting, the Chinese top legislator also suggested China and the Netherlands keep high-level visits, respect each other's core interests and maintain exchanges in areas such as culture, education, technology and tourism.

Rutte said the Netherlands opposes and rejects trade protectionism of any form, and invited more Chinese enterprises to invest in the country.

Rutte offered resignation last month after budget talks collapsed. The Dutch parliament has decided fresh elections will be held in September.

The Dutch side sticks to one-China policy and is willing to develop relations with China on the basis of equality and mutual respect, the prime minister said, underlining bilateral cooperation on trade, environment, tourism and culture.

Wu said that China has always taken developing China-EU relations as an important strategic direction in its foreign policy and supported the European integration process.

The Netherlands, as a founding member of the EU and eurozone, has played a unique role in the European integration process and China-EU relations, said Wu.

China is willing to enhance consultations with the Netherlands to facilitate China-EU comprehensive strategic partnership, he said.

On Wednesday, Wu held talks with the presidents of the First and Second Chamber of Dutch parliament Fred de Graaf and Gerdi Verbeet in The Hague and exchanged views with them on how to deepen parliamentary exchanges.

The Netherlands is the first stop of Wu's four-European nation tour, which will also take him to Croatia, Luxembourg and Spain.

http://www.shanghaidaily.com/article...a.asp?id=71232

[everywhere]

Shanghai property sales down 16% on gov't curbs
(Shanghai Daily/Xinhua, May 17)

HANGHAI, May 16 (Xinhua) -- Shanghai's commercial real estate and housing sales dropped 15.9 percent year on year in the first four months of 2012 as government curbs continued to cool the market.

Property developers sold 4.4 million square meters of commercial real estate and housing during the January-April period, the Shanghai municipal bureau of statistics said in a statement Wednesday.

Of the total, home sales fell 8 percent year-on-year to 3.9 million square meters.

Tough government curbs, including higher lending rates, a ban on mortgage loans for third homes and purchase restrictions, have curbed speculation in the property market, the bureau said.

As a result of the gloomy market, prices for both new and second-hand homes in the country's financial and business center fell during the six months leading up to March.

In March, the prices of new and second-hand homes dropped 0.2 percent and 0.5 percent month on month, respectively, and 0.8 percent and 1 percent year on year, respectively.

http://www.shanghaidaily.com/article...a.asp?id=71213

[everywhere]

Boeing, Airbus seeks Chinese buyers for new plane models
(China Daily USA Edition, May 17)

The two main international makers of aircraft, France-based Airbus SAS and US-based Boeing Co, plan to bring improved versions of their single-aisle aircraft to the Chinese market.

The two manufacturers are working to find their first Chinese buyers of the planes, Boeing's 737 MAX and Airbus' A320neo.


According to a Boeing market analysis, China will need 3,550 single-aisle aircraft by 2030, of which only 20 percent will be used as replacements.
Airbus also forecast in February that the Asia-Pacific region will need 5,720 single-aisle aircraft in the next 20 years and that China will be one of the main markets for those products.


"Narrow-body aircraft always do well on high-frequency short routes and there are many such routes in China," said Simon Booker, director of aviation department of the professional services firm KPMG Asia-Pacific.


The current single-aisle models produced by Boeing and Airbus were all introduced in the 1990s.


Rather than design completely new planes at a great cost, both manufacturers chose to improve the existing models, which already command a large market share.


On April 11, Boeing released its conceptual design for the 737 MAX, an improved model of the 737 Boeing's most popular line of aircraft. By January, Boeing had received 9,800 orders for 737s and had delivered more than 7,000 of them.


Compared with current 737s, the 737 MAX will contain a larger and more efficient engine built by CFM International, a joint venture formed between divisions of the US-based General Electric Co and France-based Safran Group.


With the new engine and other design changes, the 737 MAX's fuel costs will be about 11 percent lower than the current 737 NG aircraft's, said Randy Tinseth, vice-president of Boeing Commercial Airplanes' marketing department.


As the rising price of fuel and the demand for reducing emissions become more important to the aviation industry, manufacturers are working harder to make their aircraft more efficient.


"A320neo's fuel costs can be 15 percent lower than the current A320 aircraft's," said Luo Chong, director of Airbus China's airline marketing department.


A320neo - the "neo" stands for "new engine options" - will give customers a choice of two different engines. One will be the same as used in the 737 MAX and the other will be the PW1100G, which is made by the US-based Pratt & Whitney Group.


Airbus' decision to introduce the A320neo was made in 2010, almost a year earlier than Boeing released its plans to build the 737 MAX. The first A320neo will be delivered in 2015, two years before the first 737 MAX.


The schedule gives Airbus an advantage in the two companies' competition to win international orders. From the end of 2010 to the end of February, 24 airlines made 1,289 confirmed orders and 266 commitment orders for the A320neo.


Meanwhile, by the end of February, 1,000 confirmed and commitment orders had come in for the 737 MAX.


Media outlets have reported that Xiamen Airlines Co Ltd, which has a fleet composed completely of Boeing aircraft, may be the first Chinese customer to buy the 737 MAX and that the two companies discussed such a purchase when Che Shanglun, general manger of the airline, attended Boeing's annual meeting in February.


Meanwhile, Airbus introduced the A320neo to Sichuan Airlines Co Ltd, which has an all Airbus-aircraft fleet, in April.


"The A320neo is not an option that is out of the bounds of consideration for Sichuan Airlines since we are working on doubling the size of our fleet by 2015," said Zhong Bin, vice-general manager of Sichuan Airlines' technical department.


But the carrier has not ordered the plane yet and its purchasing plans for the next three years are already complete, he said.


Even so, airlines still have many outstanding orders for single-aisle aircraft and thus still have an opportunity to modify them in favor of the improved models.


Boeing is confident the 737 MAX will perform well in the market and Jim Albaugh, CEO of Boeing Commercial Airplanes, forecast that Chinese airlines will order 200 Boeing 737 MAX aircraft this year.


Experts said manufacturers should pay more attention to Chinese airlines' special demands.


"Safety, price and after-sales services are all things Chinese airlines consider and both of the manufacturers can meet those needs of airlines," said Li Xiaojin, a professor at the Tianjin-based Civil Aviation University of China.


The list prices of the 737 MAX and A320neo are similar - about $95 million.

wangwen@chinadaily.com.cn

http://europe.chinadaily.com.cn/busi...t_15316882.htm

[everywhere]

China’s Best Kept Secrets: Mianyang And Other Tier 3 Cities

(Jack Perkowski, 21st Century Business Herald English, May 16)

As I downloaded my e-mails at 5:00 am in Beijing on Tuesday, I noticed that a friend of mine from New York City had asked if he could speak to me that morning. When I e-mailed back, I said that I had a 7:40 am flight, but was available to speak any time before that.


When we finally connected by telephone an hour later, the first thing my friend asked was: “Where are you headed?” When I told him Mianyang in Sichuan province, I could tell by the silence on the other end of the line that he had never heard of the city and that I might as well have said that I was off to Mars. So, I followed up by explaining that Mianyang is the second largest city in Sichuan with a population of over 5 million, almost as many people who live in Manhattan.


My friend’s reaction is not unusual. Despite the fact that China’s Tier 3 cities are where all the action is in China today — whether it’s urbanization, new government policies, industrialization, or property development — they are the best kept secrets in the world.


Cities in China are typically classified according to location, population, and general economic statistics. Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and Chongqing are generally classified as Tier 1 cities, while provincial capitals are generally classified as Tier 2.



Important cities, like Mianyang, are classified as Tier 3, and many analysts carry the classifications further and use Tier 4 to denote cities that are large and important by any standard, but are even less well known. China currently has well over 100 cities with populations of one million or more.


Known as the “Western Silicon Valley of China,” Mianyang has a total population of 5.2 million people and is in the heart of the newly established Chengdu-Chongqing Economic Zone (the “Cheng-Yu Economic Zone”), which will benefit greatly from China’s “Go-West” policy.



Mianyang has gained its reputation as a technology center due to its importance as a base for national defense, scientific research and production. Over 18 research institutes are located in Mianyang, including the China Academy of Engineering Physics and the China Aerodynamics Research Institute.



It is also home to many Chinese and foreign-invested companies in industries as diverse as electronics, defense, pharmaceutical and advanced materials.


In May, 2011, China’s Central Government created the Cheng-Yu economic Zone and stated its intention to develop the zone as China’s “fourth economic pillar.”



The three existing pillars are the Bohai Economic Rim, which consists of the cities of Beijing and Tianjin and Shandong, Hebei and Liaoning provinces; the Yangtze River Delta Economic Zone, which includes Shanghai and Jiangsu and Zhejiang provinces; and the Pearl River Delta Economic Zone, which covers Guangdong Province.



As the first major regional development plan under the 12th Five-Year Plan to receive State Council approval, the Cheng-Yu Economic Zone has effectively been chosen to lead the development of China’s interior.


Already, 160 Fortune 500 companies have established operations in Sichuan Province. Hewlett-Packard has built a manufacturing base in Chongqing to assemble 40 million laptops annually, with planned production capacity likely to reach 80 million units.



Similarly, Intel moved its manufacturing and testing plants from Shanghai to Chengdu in 2009. Most recently, Siemens AG announced that it will set up an automation manufacturing and R&D base in Chengdu, which will serve as Siemens’s largest digital factory in China and its third global R&D center for its industrial automation business.


Under China’s “Go West” policy, cities like Mianyang will benefit from the government’s investment in transportation and other infrastructure projects, as well as from favorable government policies that will encourage direct investment.



As a result of increased investment and a continuation of the urbanization trend, these cities will benefit from significant population growth and the need for new residential and commercial facilities.



Mianyang is the only city in Sichuan Province, besides Chengdu, to receive State Council approval to develop as a million-plus population city. Mianyang’s center city population has grown from 600,000 three years ago to over 1 million today, and is expected to increase to 1.5 million by 2020.


Mianyang is already well connected by both highway and rail, with more transportation networks currently under construction. A first-grid highway connecting Mianyang and Chongqing is nearing completion, and Mianyang Airport has direct flights to Beijing, Shanghai, Guangzhou, Shenzhen, and other major cities within China.



In addition, a new high-speed urban rail connecting Chengdu and Xi’an – and passing through Mianyang – is set to be completed by the end of 2012. The current trip between Chengdu and Mianyang takes approximately 2.5 hours, but the new urban rail will reduce travel time to just 15 to 20 minutes.


While the vast majority of China’s economic development to date has occurred in Tier 1 cities and along the country’s coastal regions, many manufacturers – driven by increasing land, labor, and operating costs – are beginning to relocate their facilities to cities in the interior, like Mianyang, where costs are substantially lower.



With more people moving off the farms and growing affluence, consumer goods companies are also finding millions of new potential customers in China’s Tier 3 cities. As these trends continue to play out in the years ahead, names like Mianyang will soon become household words, just like Chicago, Minneapolis and Atlanta are today.

http://morningwhistle.21cbh.com/html...16/212255.html

[everywhere]

Launch will boost Beidou
(China Daily, May 17)

Satellites part of plan to make navigation tool global by 2014


China will launch another three satellites for the Beidou system, the country's global positioning and navigation network, enabling it to provide a free positioning, navigation and time service for customers in the Asia-Pacific by the end of the year.


Meanwhile, the system is expected to be adopted by some of China's neighboring countries in the next year or two, an official said.


"The trial service of the Beidou system shows it can provide a high-quality regional service," said Ran Chengqi, director of the China Satellite Navigation Office, at the third China Satellite Navigation Conference, which opened in Guangzhou, capital of Guangdong province, on Wednesday.


By 2020, Beidou will have more than 30 satellites, allowing it to compete with the GPS system operated by the United States, Ran said.


"Many of China's neighboring countries, such as Pakistan and Mongolia, have shown strong interest in the system," Ran said.


"Technical discussions are under way, and hopefully Beidou products can enter these markets in one to two years."


Academic discussions and exhibitions showing Beidou's latest navigational and industrial applications will be held during the conference, which runs from Wednesday to Saturday. Around 1,500 experts and officials from countries including the United States, Russia and Japan are expected to attend the meeting.


Beidou currently has 11 satellites, and the positioning precision has reached 10 meters in most parts of the Chinese mainland. Its performance will improve after three more satellites are launched into space this year, Ran said.


Two satellites will be launched together on a single rocket in August, and another will be launched in October, Ran said.


China has launched three Beidou satellites this year, with two launched on a single rocket on April 30.


"China will formally announce plans to provide free positioning, navigation and time services for customers in the whole Asia-Pacific region by the end of the year," Ran said.


China will continue to improve the performance of Beidou, and by 2014, it will expand its service area, aiming for global coverage, Ran said.


"Some countries, including Indonesia and Australia, have cooperated with China for the research and application of the system," said Liu Jingnan, a member of the Chinese Academy of Engineering, who specializes in satellite surveying and mapping.


For example, some countries, such as Australia, New Zealand, Singapore and some European countries, have cooperated with Chinese research institutes, including Wuhan University, to set up stations in these countries to trace Beidou satellite signals for future application of the system, such as in fisheries and agriculture, said Liu.


"Such stations can greatly enhance the preciseness of satellite positioning to as high as just a few centimeters, which is important for the application of this system in industrial use," Liu said.


Currently, products based on the Beidou system, such as car and ship navigators, have been used in China, but the number is still very small compared to GPS users, said Cao Chong, director of the Advisory Center of the China Association for Global Navigation Satellite Systems.


"Beidou was put into service just a few years ago, so it is hard for it to compete with GPS," Cao said. "I think products that are compatible with both Beidou and other global positioning system technologies, such as that of GPS, will flourish in the next few years in China, and hold a majority share of the market."


David Turner, deputy director of the Office of Space and Advanced Technology within the US State Department, echoed Cao's opinion.
"It is better to encourage cooperation for compatibility," he said. "For example, if a navigator is compatible with Beidou and GPS and Russia's GLONASS, it will be much more precise."

Xin Dingding in Beijing contributed to this story.

wangxiaodong@chinadaily.com.cn

[everywhere]

Domestic cruise industry expects expansion

(China Daily, May 17)

Renowned ship's arrival at port in Shanghai marks major milestone




The world-famous Costa Victoria cruise ship completed its first voyage to China on Wednesday after arriving at the Shanghai Wusongkou International Cruise Port.



The Costa Victoria, which will depart for the Republic of Korea on Friday, has selected Shanghai to be the homeport for its Asian route.


This year, a total of 62 international cruise liners, including the Voyager of the Seas from Royal Caribbean Cruises Ltd, will arrive at Shanghai's specialized port for luxury cruise ships, which opened in October last year, and more than 150 will arrive in 2013, according to figures from the city's entry-exit inspection and quarantine bureau.


It is apparent that the number of cruise ships in China is rising, and they are becoming more luxurious, tourism industry analysts say. Global players in the cruise line sector are focusing on the country.


"The Chinese cities, especially Shanghai, can never be overlooked. Top groups in the trade all have high hopes for the potential of the market," said Cheng Juehao, deputy director of the research institute of cruise economy under the Shanghai International Shipping Institute.


The number of cruise ships received at ports on the Chinese mainland saw an increase from 223 in 2010 to 262 in 2011, according to statistics from the China Cruise and Yacht Industry Association.


Cruise liners with a high passenger capacity and shipping tonnage will increasingly select Chinese harbors to be their homeports this year now that the world's four leading cruise companies have established China-based routes.


"A cruise market in the country has taken shape due to the emergence of groups with considerably high incomes and a mature concept of cruise holidays in coastal areas," said Zheng Weihang, executive vice-president of CCYIA.


China is at the primary stage of its cruise economy. In this phase, it is building homeports to provide comprehensive services, including berthing, replenishment and maintenance for large cruise liners, said experts.


Several cities, including Shanghai, Tianjin, Xiamen and Qingdao, have been equipped with international homeports to attract major cruise liners to set up shop there for the long term.


Tianjin, a center for cruise travel in North China, will receive nearly 40 luxury cruise liners this year and will establish new routes to Thailand and Singapore in addition to the existing ones to Japan and Korea.


Baoshan International Cruiser Homeport, another port in Shanghai, will be completed in 2015, and more than 200 voyages will be received annually after that time, according to official information.


"It will be a splendid platform for the hundreds of thousands of visitors arriving in China as well as for Chinese to go abroad," said Wang Hong, head of Shanghai's Baoshan district, during an interview with eastday.com.


"We will build an industrial chain, including logistics, purchasing and ticket business, to promote the development of modern services that integrate the cruise economy," she said.


When the cruise economy is more mature, it is important for the country to have its own cruise companies, which are registered and operated on the mainland, experts say.


"Cruise liners have brought new concepts and patterns of consumption to China, but they won't produce obvious benefits if we are only involved in selling tickets and ship supplies," Cheng said.


Chinese enterprises and government agencies started to consider establishing cruise companies two years ago, he said, but they are cautious because of the huge investments required.


The country is expected to have its own cruise companies in three to five years, Cheng estimated. "The Ministry of Industry and Information Technology is encouraging the research and development of cruise ship building technologies."

http://www.chinadaily.com.cn/china/2...t_15313781.htm

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New nuclear power projects ready to power ahead
(China Daily USA, May 18)

Reactors in Liaoning, Fujian set to go into operation later this year

China is expected to resume the expansion of its nuclear power sector next month, with many plans reaching the final approval stage, according to Xu Yuming, deputy secretary-general of the China Nuclear Energy Association.


"The new approvals, however, will move much more slowly than before the Fukushima nuclear crisis last year," Xu said.


China suspended new nuclear projects after last year's earthquake and tsunami in Japan crippled the Fukushima Daiichi plant and prompted a global review of atomic energy plants.


China approved eight to 10 reactors each year between 2008 and 2010.


"The delay in new project construction has severely affected China's nuclear industry. Preliminary work on new sites stalled, while the manufacturing of key components has been delayed as new orders slumped," said Xu.


China had spent as much as 30 billion yuan ($4.7 billion) in upgrading its nuclear industry, including the manufacturing end, before the Japanese accident.


But over the past 14 months, no new projects have been approved or started construction.


However, by the end of this year, two new reactors - one in Hongyanhe, Liaoning province and one in Ningde, Fujian province - will go into operation, Xu said.


On March 16 last year, after the accident in Japan, the State Council announced that it would suspend approval of nuclear plant construction and ordered safety inspections at all plants.


China had 11.3 gigawatts of nuclear capacity at the end of 2011, with another 26 reactors, or 29 gW, under construction.


The government passed the National Nuclear Contingency Plan in April, an indication that it is getting closer to resume new project approval.
Xu predicted that China will have 70 gW of installed capacity by 2020, with another 30 gW under construction.


Before the Japanese quake, China had planned to increase its nuclear-generation capacity by about 10 gW annually to 80 gW by 2020, or by eight reactors each year.


Constraints on the industry include staff training, which usually takes four to eight years.


"China has about 1,000 nuclear experts now but will need 4,000 by 2020," said Donald Hoffman, president of Excel Services Corp, a US-based nuclear regulatory and engineering services provider.


"Nuclear power is still immature compared with other electricity sources," according to Steve Kidd, deputy director-general of the World Nuclear Association. He added that the Fukushima accident had driven up the cost of building new reactors.


According to Kidd, one challenge to the industry is that there is no established international chain.


Future growth in the nuclear industry will mainly come from Asia, especially from China, which will build 40 percent of the world's new reactors.


The WNA will soon open a new office in Beijing, Kidd said at the 8th China Nuclear Energy Congress.

liuyiyu@chinadaily.com.cn

http://usa.chinadaily.com.cn/busines...t_15327637.htm

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China's golden crowning
(Shanghai Daily, May 18)

CHINA is now the biggest bullion market in the world as its demand for gold shone brighter than India's in the first quarter of this year, the World Gold Council said in a report yesterday.

Marcus Grubb, managing director of investment at the council, said in the report about trends in gold demand that although China's economy continued to grow at a slower pace, "as we previously forecast, it is likely China will become the largest source of demand for gold in 2012."

While global demand fell 5 percent to 1,097.6 tons from a year earlier on high gold prices, China's investment and jewelry demand sparkled 10 percent year on year to 255.2 tons in the first quarter. The investment demand for gold rose 13 percent as Chinese investors strongly believe in wealth preservation amid inflation concerns.

Meanwhile, jewelry demand also grew significantly to 156.6 tons, or 30 percent of global jewelry demand, making China the largest jewelry market for the third straight quarter, the report said.

Demand in India dimmed 19 percent in the first three months due to new and higher taxes as well as a weaker rupee while investment demand plunged 46 percent.

But the report predicted a rebound in India's demand for jewelry after the scrapping of the new tax this month.

The report also said gold's average price rose 22 percent on an annual basis in the first quarter to US$1,690.57 per ounce.

http://www.shanghaidaily.com/nsp/Bus...en%2Bcrowning/

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Tech lifts status of nation's women
(China Daily, May 18)

The social status of Chinese women has markedly improved in the past decade because of the application of information and communication technology, the Ministry of Industry and Information Technology and the All-China Women's Federation said on Thursday.


The country has surpassed the United States to become the largest Internet country, having 512 million Internet users, up 278 percent from 2005, according to the China Internet Network Information Center.


"Information technology has provided new paths and opportunities for Chinese women to be involved in social and economic activities, and further increased their social status," said Tan Lin, the director of the Women's Studies Institute of China, which is the research arm of ACWF.


"A decade ago, Chinese women had very little access to online information.



Only 7 percent of them had used information technology services, while the percentage was 38 percent in the US and 17 percent in China's neighbor Japan back then," said Xia Jun, associate professor at the Beijing University of Posts and Telecommunications.


According to the ACWF, women now make up about 44 percent of China's Internet population, and 53.1 percent of women have ventured into cyberspace for work and study.


"The ratios of women writing blogs and chatting online are higher than for men in China, which means the development of information technology has improved Chinese women's social networking ability," Xia said.


She said 17.6 percent of women used the Internet to invest.


However, in some rural areas, the access to information remains very limited. The first two choices for rural women when seeking information are watching TV and getting news from other people.


About 90 percent of rural women get domestic and overseas information through the TV, the association said.


However, the Internet is the first choice for Americans to access information, according to a Chinese media report.
Chinese women's access to information technology still has much room for improvement, said MIIT Vice-Minister Shang Bing.


Only about 29 percent of Chinese women had used the Internet last year, compared with 75 percent in the US in 2010, according to the US-based Pew Research Center's Internet and American Life Project.


"Women have become the drivers for China's e-commerce, and we will further improve the development of the country's broadband construction to increase the quality of life and information access for women in China," said Shang.


China is expected to have 20 million new broadband Internet subscribers this year and a total of 250 million subscribers by the end of 2015, the ministry announced earlier this year.

tuoyannan@chinadaily.com.cn

http://europe.chinadaily.com.cn/busi...t_15331162.htm

[everywhere]

China's consumer optimism solid in Q1
(Shanghai Daily, May 18)

CHINA'S consumer confidence in the first quarter was the strongest since 2005, according to a report by the international market research firm Nielson yesterday.

Nielson's consumer confidence index in China hit 110 in the first quarter, up from 108 in the previous quarter and the highest since 2005, said a company's statement.

China's index also ranked the fourth highest among the 56 countries and regions surveyed by Nielson while India topped the list, the statement said.

Amid a complex global economic situation, major indices of the Chinese economy have remained at a reasonable level and the government has worked to assist small and medium-sized firms with bank loans, stimulate domestic consumption and cool the overheated real estate sector, which helped lift consumer confidence, said Yan Xuan, president of Nielson China, at a press conference.

The consumer confidence index in the country's rural areas rose too, and was again higher than that in cities, the statement said.

Yan attributed that to government policies, including more subsidies in rural pension programs and more money in the budget for rural areas.

The country's consumer price index growth eased to 3.8 percent in the first quarter of 2012, against the annual hike of 5.4 percent in 2011.

However, how Chinese will spend their money remains unchanged. About 59 percent of the surveyed will bank their spare money and 49 percent are willing to spend it on the education of their children.

A reading above 100 means consumer optimism.

http://www.shanghaidaily.com/nsp/Bus...lid%2Bin%2BQ1/

[everywhere]

New standards for China shipbuilding
(China Economic, May 17)

China will add 790 new standards to the shipbuilding industry this year to make it more international, according to the Ministry of Industry and Information Technology, China's top industry regulator.


The country had 1,984 standards in this industry by the end of 2011, with about 70 percent of them being adapted international standards, the ministry said.


However, the country's shipbuilding industry still falls behind global development, especially in the adoption of global standards and ocean engineering equipment production, added the ministry.


According to a previous report, China's shipbuilding industry faces problems such as declining demand and intensified competition.


The country received only about 5.59 million deadweight tons in new orders in the first quarter, a drop of 48.7 percent from a year before.


The built ships only had 11.2 million deadweight tons in the first quarter this year, down 22.5 percent year-on-year, according to the China Association of the National Shipbuilding Industry.

http://en.ce.cn/Industries/Basic-ind...23332142.shtml

[everywhere]

Tough times ahead for China's export warned
(China Daily, May 18)

A senior commerce official has given a gloomy forecast for China's foreign trade amid Europe's ongoing debt crisis and a slowdown in emerging economies that will undercut demand for Chinese products.


"Global demand is slack, and there cannot be a change for the better in a short time," said Jiang Fan, deputy director-general of the Department of Foreign Trade with the Ministry of Commerce, on Thursday.


Since late last year, China's export growth has been slowing. Overseas shipments rose a mere 4.9 percent year-on-year in April, compared with 8.9 percent in March, according to the General Administration of Customs.

From January to April, exports grew just 6.9 percent to $593.2 billion.

"The figures show there is intense downward pressure on foreign trade," said Jiang.


Export orders signed at the spring session of the Canton Fair in Guangzhou, China's largest trade show, fell 2.3 percent from a year earlier, data from the organizers show.


It was the first decline for the semiannual event's spring session since 2009.


Shen Danyang, the ministry's spokesman, told a regular monthly news briefing on Tuesday that China's foreign trade situation will remain severe in the coming months.


But Shen said that the situation is "neither pessimistic, nor optimistic".


"If the world economy didn't deteriorate and there was no big reversion in global demand, China's foreign trade this year would be on the track of low growth at the beginning, stable mild growth in the middle and high growth in the end," the spokesman added.


China has set a target of 10 percent growth in its foreign trade this year, and Shen said Chinese officials are "confident of achieving the goal".


But Europe's unresolved debt problems, a still-fragile US economy and deteriorating conditions in emerging markets threaten China's exports, said Jiang.


Growth in China's shipments to the United States slowed to 10 percent in April from 14 percent in March, while exports to the EU fell 2.4 percent in April, following a decline of 3.1 percent in March.


"If the eurozone falls into a deep recession, and that in turn slows US growth," China's export growth will be affected, said a report by ANZ Greater China.


But at the news briefing, Shen said the good thing about the current situation is that China's foreign trade is "turning more balanced".


In April, exports of high-tech and high value-added goods recorded big gains, with exports of automatic data processing equipment, wireless telephones and components and valuable metals growing by 10.6, 28.3 and 134 percent year-on-year.


During the same month, exports of labor-intensive goods slid. Shipments of textiles and garments dropped 4 percent and 6 percent, respectively.
China is also seeking to sell more goods to emerging markets this year.



From January to April, exports to Russia, Brazil, Thailand and Indonesia gained by 14.3, 13.3, 20 and 11.3 percent year-on-year.

dingqingfen@chinadaily.com.cn

http://europe.chinadaily.com.cn/busi...t_15328032.htm

[everywhere]

Tencent's business to be cut into six groups
(Shanghai Daily, May 19)

TENCENT, China's largest Internet company in terms of user base and market capitalization, yesterday announced plans for a business restructuring - dividing its business into six groups - to better adapt to market situation and focus on key sectors such as mobile Internet and social networking.

"The new business structure will allow us to put more focus on user demand in the fast-moving Internet market," Chief Executive Officer Ma Huateng said in an open letter to employees.

Tencent's business will be carved up into six business groups, namely technology and engineering, social networking, creative business, interactive entertainment, mobile Internet and online media.

It will also establish an independent e-commerce unit to operate its online shopping business, the Shenzhen-based company said in a statement yesterday.

The company has extended its service beyond the online chatting tool QQ to other sectors, including online gaming.

"Tencent's market vision is very acute among domestic Internet firms, and the internal structure overhaul will allow it to better leverage its dominant position in instant messaging," said Analysys International researcher Dong Xu.

Tencent made a series of investments last year to take stakes in e-commerce site 51buy.com and online travel booking agency eLong.com.

However, the company is also feeling the squeeze from other Internet giants, such as Sina in the social networking sector and NetEase in the online gaming business.

http://www.shanghaidaily.com/nsp/Bus...Bsix%2Bgroups/

[everywhere]

Gansu builds world's largest yak dairy production center
(Shanghai Daily, May 19)

LANZHOU, May 18 (Xinhua) -- Construction on the world's biggest yak dairy production base began on Friday in northwest China's Gansu province.

Built with a total investment of 310 million yuan (about 40 million U.S. dollars), the base is expected to produce 120,000 tons of yak milk every year, said Zhang Xianjun, general manager of the Shoton Yak Dairy Company, which is undertaking the project.

The base is situated in Xiahe, a county with rich natural grasslands in the Tibetan autonomous prefecture of Gannan, Zhang said, adding that it will be the largest of its kind after going into operation in July 2013.

The project is expected to bring 1.8 billion yuan in annual revenues for the company and abundant job opportunities for local Tibetan herdsmen, Zhang said.

The yak, a long-haired bovine, mainly inhabits the Qinghai-Tibetan Plateau. The species has been raised as livestock by many Tibetan families for centuries.

As an essential food for Tibetans, yak milk is more nutritious than regular milk, boasting greater amounts of amino acids, calcium and vitamin A.

http://www.shanghaidaily.com/article...a.asp?id=71605

[big-dog]

I just couldn't resist posting Economist articles

The economy

The air is thinning

Are China’s banks growing out of the government’s strait-jacket?

May 19th 2012 | HONG KONG |

IN ASIA, bank deposits “have been like air”, says John Caparusso of Standard Chartered, a bank. They were freely available; banks just had to breathe them in. In China, especially, banks are accustomed to inhaling fresh money from profitable enterprises and thrifty households, who have few other places to park their hard-earned cash.

But recent figures suggest banks are now having to breathe a little harder. In the year to April, deposits expanded by only 11.4%, the slowest rate since at least 1998. Loan growth was also surprisingly weak, contributing to a slowdown in Chinese industrial output, which expanded by only 9.3% over the same period, its weakest pace since 2009.

Fortunately, banks are obliged to keep plenty of oxygen in reserve. In response to the bad industrial figures, regulators cut the amount of cash banks must hold with the central bank, allowing an extra 450 billion yuan ($71 billion) to circulate. Some economists expect further easing to help restore lending.

The cut in reserve requirements will liberate existing deposits, but it will not attract new ones. They are deterred by regulated interest rates, which are capped at only 3.5% for a one-year deposit, barely above the rate of inflation.

Barred from improving their prices (ie, the interest rates they offer depositors), banks have changed their products instead. They have sold thousands of varieties of “wealth-management products”, short-term investments backed by a mix of assets that offer better returns than regulated deposits. These products have given households and firms with plenty of cash an alternative home for their money, which they have welcomed.

This liberalisation at the edges of the banking system is reminiscent of the way China finessed its central plan in the 1980s, says Cao Yuanzheng of the Bank of China. During that period, firms still had to produce a quota of goods at a fixed price. But they were free to sell anything extra for the highest price they could. Similarly, China’s banks must still offer depositors rates prescribed by the government. But other products may be priced more freely.

A crucial difference, however, separates the two episodes. In the 1980s the government controlled both the price and the quantity of goods that firms and farms had to provide. In the banking system today, the government still controls the rate depositors can get, but it does not control the quantity of deposits they must provide. Firms, in particular, are taking their money elsewhere, often in large amounts. Some are even shifting it overseas, judging by recent downward pressure on the yuan. Deposits may be like oxygen. But China’s banking system is no longer airtight.