China's Economy - News and Projects III

[everywhere]

China speeds up approval for major investment projects
(Shanghai Daily/Xinhua, May 28)

BEIJING, May 28 (Xinhua) -- China recently sped up the approval process for a slew of major projects as the world's second-largest economy looks toward investment to boost its slowing economy, local media reported Monday.

Following a call to "stabilize economic growth," which was announced last week by the State Council, China's Cabinet, many ministries have instituted policies allowing private investment in sectors that had previously been monopolized and heavily state-controlled.

In May, the speed of approvals for major projects by the National Development and Reform Commission (NDRC), China's top economic planner, has been "impetuous," the Beijing-based newspaper China Times reported.

The report said the NDRC approved more than 100 projects on May 21 alone, mostly in clean energy sectors. The number was almost equal to the total number of projects approved during the first 20 days in May.

Stabilizing growth is currently the government's main goal in policy-making, and maintaining investment and expanding domestic consumption are key, said Lin Ling, an economist based in Sichuan province.

The Cabinet has pressed for launching major projects in railways, energy conservation and environmental protection, infrastructure and educational and health care facilities in rural and western areas, and it has encouraged private capital to enter these sectors.

The State-owned Assets Supervision and Administration Commission of the State Council also issued a guideline Friday for the reform of state-owned enterprises (SOE), inviting private investment in their restructuring through cash investment, share stake acquisition, subscription to SOEs' convertible bonds and finance leases.

http://www.shanghaidaily.com/article...a.asp?id=73397

[everywhere]

10 years to solve wealth distribution issues: expert
(Shanghai Daily/Xinhua, May 28)

BEIJING, May 28 (Xinhua) -- A Chinese social studies expert said he has confidence in a wealth distribution reform that is likely to be launched later this year in China, but warned that a complete solution will require more time.

"We expect to spend 10 years streamlining the wealth distribution system and correcting unfair distributions," Zheng Gongcheng, a professor at Renmin University of China, said in an interview on Sunday with Qilu Evening News, a provincial newspaper in east China's Shandong province.

Zheng noted that low incomes for grassroots workers, the wealth gap and unfair wealth distribution are the three major problems in the country's distribution system, which have not only caused social conflicts but also undermined the people's morality and their belief in an industrious attitude.

However, the current problems have accumulated during the past several decades and there is no quick solution to the problems, Zheng said.

In the first 30 years of reform and opening up, the distribution system has put emphasis on encouraging economic development, and now it is time to attach equal attention to both expanding the wealth pool as well as fairly dividing wealth in order to sustain healthy development, the professor added.

http://www.shanghaidaily.com/article...a.asp?id=73401




Medical equipment industry is one of the "sunrise" industries of China, here's more


Medical instrument industry expands 20 percent per annum
(Shanghai Daily/Xinhua, May 28)

BEIJING, May 28 (Xinhua) -- China's medical instrument industry has become a "sunrise industry," with a considerable market size of 400 billion yuan (63.3 billion U.S. dollars), according to a Chinese medical expert.

Moreover, it is expanding by 20 percent year-on-year, Fan Yubo, president of Chinese Society of Biomedical Engineering, said Monday at the 2012 World Congress on Medical Physics and Biomedical Engineering held in Beijing.

However, Fan noted that China still relies heavily on imported high-end sophisticated medical instruments.

"Almost all the artificial knee joints and cardiac pacemakers used in this country are Western imports," Fan said.

Nonetheless, an increasingly number of mid-end ones can be produced domestically and China also exports certain products to other countries, the expert said.

The standard of China's products such as patient monitoring and life support devices, in-vitro diagnostic instruments and medical imaging systems are at an internationally advanced level, Fan said.

more: http://www.shanghaidaily.com/article...a.asp?id=73418

[everywhere]

BEIJING, May 28 (Xinhua) -- China's Commerce Minister Chen Deming said Monday that China is expected to become the world's largest consumer market in 2015.

The volume of consumer retail sales will surpass 5 trillion U.S. dollars in 2015 amid an accelerated urbanization rate and the rise of people's incomes, Chen said at the opening ceremony of the first Beijing International Fair for Trade in Service.

The number of outbound tourists is expected to reach 88 million at that time, he said.

Demand for home services, education and training, medical care, financing, technology and tourism is booming, he said.

China currently ranks fourth in the world in terms of service trade volume, with 419.1 billion U.S. dollars in 2011 compared with 66 billion U.S. dollars in 2000.

Hosted by the Ministry of Commerce and the Beijing municipal government, the Beijing Fair, akin to China's major commodities fair, the Canton Fair, attracted more than 22,000 service providers from 82 countries and regions to foster trade in the sector for the coming five days.

http://www.shanghaidaily.com/article...a.asp?id=73430

[everywhere]

BEIJING, May 28 (Xinhua) -- After robust trade in goods over the past decade helped catapult China to become the second largest economy in the world, the country is now looking to its service sector to achieve more balanced growth amid external jitters.

Speaking at the opening ceremony of the first Beijing International Fair for Trade in Service on Monday, Premier Wen Jiabao called for increased opening up in the country's service sector and encouraged local service providers to go global to boost the industry's share in foreign trade.

"Fostering growth in the service sector is the main direction for China's economic transformation and restructuring, as well as an internal call to improve people's living standards," Wen said.

As the first international fair tailored for service trade, the event has attracted more than 22,000 service providers from 82 countries and regions to foster service trade.

The latest emphasis on service trade is part of China's efforts to drive growth in the sector to steady its trade expansion at a time when a slowing domestic economy and weak external demands are hurting demand for China-made products.

"Against the backdrop of intensifying uncertainties and risks of global economic downturns, the development of the service sector and service trade will become the new growth pole for China," said Qiu Hong, assistant commerce minister.

Although huge demands had fueled double-digit growth in the service industry over the past years, its low share in the economic output and a persistent deficit had hurt the sector.

In terms of service trade volume, China now ranks fourth in the world, with 419.1 billion U.S. dollars in 2011. But the ratio of the service trade output to total economic output, 43 percent, was still much lower than the 70 percent in most developed countries, Qiu said.

To boost the share of service industry in the economy, China stated in the 12th Five-Year Plan that it aims to bring the sector's proportion of gross domestic product to 47 percent by 2015 and to make it a strategic focus for the country's industrial restructuring and upgrading to ease reliance on traditional manufacturing.

Since China's entry to the World Trade Organization a decade ago, its foreign trade, mostly trade in goods, had seen torrid growth on the back of cheap material and labor costs. But now with rising costs, China is losing its edge in the traditional manufacturing sector.

"China's trade in goods is mostly in processing, which could easily be transferred to other countries if costs keep rising. In contrast, the service trade has ample room for growth," said Zhou Mi, an analyst with China Academy of International Trade and Economic Cooperation of Ministry of Commerce.

The sector's development plan for 2011-2015 unveiled last year targets an annual expansion of 11 percent during the period, higher than the 10 percent growth in commodities trade, and it also promised wider and deeper access for foreign businesses.

Premier Wen said Monday that China's total import of services will top 1.25 trillion U.S. dollars over the coming 5 years.

While the planned expansion offers growth opportunities for domestic service providers, it also puts them in stiff competition with their foreign counterparts as China's service trade has registered deficits for more than a decade.

In 2010, of the 12 categories of service trades defined by the World Trade Organization, China only reported surplus in construction, with other technology- and knowledge-intensive areas, such as insurance and patent use, all logging billions of U.S. dollars in deficit.

Huang Hai, vice director of China Association of Trade in Service, said China remains at the lower ends in the international service trade market such as construction, transport and tourism, and in areas of intellectual patents and financials, there is still a big gap with other developed countries.

To catch up, China has been taking steps to push forward cooperation with international service providers, and the hosting of the Beijing fair is expected to facilitate the efforts.

"While using the Beijing fair as a platform for cooperation in the service sector, we also hope to bring in advanced practices and experiences from our foreign counterparts to refine the domestic industry," said Qiu, adding that an underdeveloped service industry will hamper progress in the manufacturing sector.

Hosted by the Ministry of Commerce and the Beijing municipal government, the fair, akin to China's major commodities fair -- Canton Fair -- is an annual event offering a platform for global service buyers and sellers.

http://www.shanghaidaily.com/article...a.asp?id=73444

[everywhere]

BEIJING, May 29 (Xinhua) -- LOT Polish Airlines will start offering direct flights between China and Poland starting from May 30, the company announced Tuesday.

Non-stop flights will fly from Beijing to Warsaw every Mondays, Wednesdays and Fridays, the company said.

The new route will favor Chinese football fans who will travel to Europe for the European Cup, which will be held from June 8 to July 1 in Poland and Ukraine. Four Polish cities will host the event.

http://www.shanghaidaily.com/article...a.asp?id=73701

[everywhere]

WUHAN, May 29 (Xinhua) -- Infiniti, the luxury brand of the auto giant Nissan Motor Company, is to be manufactured in the central Hebei province from 2014, according to an agreement signed Monday.

Dongfeng Motor Co Ltd, the joint venture of Nissan in China, signed the agreement with Xiangyang municipal government to establish a local production site in the city for Nissan's Infiniti.

Dongfeng Motor Co Ltd will invest 2 billion (316 million U.S. dollars) yuan in the Xiangyang plant to meet the demand of the growing Chinese middle and upper classes, said Kimiyasu Nakamura, president of the company.

Two Infiniti models will be manufactured in 2014 at the Xiangyang plant in Hebei, which currently produces Teana and Murano brands. Annual production capacity at the plant will grow from the current 130,000 to 250,000 in 2014, he said.

Manufacturing Infiniti in China will help Nissan reach the target of taking up 10 percent of the global luxury car market in 2016, said Nakamura.

Dongfeng Motor Co Ltd sold 800,000 cars in China last year and is expected to sell one million in 2012.

http://www.shanghaidaily.com/article...a.asp?id=73691

[ukiyo]

Japan and China to start direct currency trading

Japan and China will start direct currency trading this week, Tokyo said today, the first time Beijing has let a major unit other than the dollar swap with the yuan.

The move, which will scrap the greenback as an intermediary unit, comes as China introduces measures as part of a long-term goal of internationalising its currency to rival the dollar.

The two-way trade will also be allowed to move in a wider range than the narrow band at which the dollar and yuan change hands, Dow Jones Newswires and the Nikkei business daily reported.

China will set a daily rate based on dealer quotes with trade allowed to move within a 3.0% band above or below that rate, the reports said, compared with a 1.0% band fixed to yuan-dollar trading.

The Chinese central bank earlier today introduced a rate of 7.9480 yuan for every 100 yen, Dow Jones said.

However, there will be no fixed rates in Tokyo trade with the currencies trading freely, according to the same media reports which provided no further details.

By not using the dollar as an intermediate currency "we can lower transaction costs and reduce settlement risks at financial institutions as well as making both nations' currencies more useful", he added.

Moreover, the trading will save the two countries some 3 billion dollars of transaction fees annually, which are paid to the U.S. central bank in the dollar-involved China-Japan trade.

http://news.xinhuanet.com/english/in..._131618082.htm

[everywhere]

China remains a top investment destination
(China Daily Europe, May 30)

Many companies note competitive price, branding pressure from domestic firms


Nearly one quarter of European investors said they will consider shifting investment to markets outside China, while nearly three quarters said China is among their top three destinations for future investment, a survey released on Tuesday showed.


A slowing economy and rising labor costs were seen as the top risks for companies operating in China, the European Chamber of Commerce in China said in its annual business confidence survey.


"A previously reliable stream of foreign direct investment may slow and planned investments may be shifted to other emerging markets if reform continues to stall and costs rise," said Davide Cucino, president of the chamber.


FDI in China from the European Union, its largest trading partner, slumped 27.9 percent year-on-year to $1.9 billion in the first four months, according to the Ministry of Commerce.


Rising labor costs are regarded as a significant concern by 63 percent of 557 respondents, especially employers in the Pearl River Delta in South China, said the survey.


Cost reduction is becoming a more frequently used strategy by European companies to sharpen their competitiveness. The survey showed a growing number of companies looking to cut costs rather than increase revenue in China.


Wang Zhile, director of the research center of transnational corporations at the Chinese Academy of International Trade and Economic Cooperation, said it is natural for cost-oriented companies to shift investment to lower-wage areas in Southeast Asia and elsewhere.


"However, even for cost-oriented companies, a better price-performance ratio is more important than lower labor costs. Given China's labor productivity, rising wages are still acceptable," said Wang.


Investors consider many factors beyond costs when making investment decisions, such as markets and supply chains, he said.


According to the survey, 63 percent of the companies plan to make new investments in China in the next two years, up four percentage points from a year earlier.


The lingering eurozone debt crisis has greatly weakened purchasing power in Europe. Only 13 percent of respondents said the top strategic reason for operating business in China was providing goods and services for the European market, down 9 percentage points from a year earlier.


About three quarters of the respondents said the top strategic reason for operating in China is providing goods and services for the Chinese market.


The American Chamber of Commerce in China recently said that about 66 percent of US companies are producing or sourcing goods or services "in China, for China".


Despite escalating competition and rising costs, European companies "overwhelmingly" regard China as a driver of their global business, said the European chamber.


About 74 percent of the surveyed companies said China is becoming increasingly important in their company's overall global strategy and another 23 percent said China is as important as in 2011.


Foreign businesses operating in China are under increasing pressure from Chinese competitors as they become more reliant on the mainland market.


Nearly half said they are facing increasing pressure from Chinese private enterprises, which are increasingly competitive in pricing, branding and sales.


State-owned enterprises are for the most part in strategic sectors that are "not open to foreigners", so their competition is not so significant, said Cucino.


The survey also said the development of the regulatory environment is not in step with the development of the market and suggested that the reform of the regulatory environment will be the key driver of future Chinese growth.



All in all, China remains a magnet for foreign investment, but the country should further improve its investment environment for foreign and domestic companies, Wang said.


lanlan@chinadaily.com.cn

http://europe.chinadaily.com.cn/busi...t_15418509.htm

[everywhere]

SCO to set up a development bank
(China Daily Europe, May 29)

The Shanghai Cooperation Organization will establish a development bank to support member countries' projects and help fend off financial crises, a senior Chinese diplomat announced on Tuesday.


"We will establish a development bank to increase financing channels for domestic and multilateral projects of the member states, jointly fend off financial crises, and collectively participate in and shape the international financial system," Vice-Foreign Minister Cheng Guoping said at a forum on the upcoming SCO summit due to take place in Beijing from June 6 to 7.


"In the next 10 years, China will continue to inject funds into the SCO special account and the development bank, and will continue to provide concessional loans and assistance to other member states," Cheng said.

http://europe.chinadaily.com.cn/busi...t_15418271.htm

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China eyes deep-sea mining tech by 2030
(China Daily Europe, May 30)

Commercial deep-sea mining by China of polymetallic nodules that contain copper, nickel and cobalt among other key minerals, can begin as early as 2030, according to the former head of the State Oceanic Administration.
"With the improvement in deep-sea technology, metal resources under the ocean can be explored and mined within 20 years," said Sun Zhihui.


Last year, China was among the first group of countries approved by the International Seabed Authority to look for polymetallic sulphide deposits, a recently discovered mineral source, in the Southwest Indian Ridge, a tectonic plate boundary on the bed of the Indian Ocean, he said, adding the country is applying to explore for cobalt in a new area in the Pacific Ocean.



Sun said many countries are developing technologies for commercial mining, but a low-cost method of mining polymetallic nodules has not been found yet.


China has explored more than 80,000 square kilometers of the floor of the Pacific and Indian oceans, Sun said.


Xiang Jianhai, researcher at the Institute of Oceanology under the Chinese Academy of Sciences, said: "When we can carry out commercial mining depends on technological development, financial support and the price of key minerals on the market."


Xiang added that current exploration, such as that carried out by China's manned deep-sea vessel Jiaolong, will provide the technology and geological information for future mining.


He added the extent of the country's deep-sea exploration was catching up with that of advanced countries. Scientists estimate that about 480 million to 13.5 billion tons of polymetallic nodules can be commercially mined, Science and Technology Daily reported.


Polymetallic nodules are rock concretions, mostly about the size of a potato, on the seabed containing metals such as cobalt, manganese, iron, nickel and aluminum, which have huge economic potential.


Xiang said the deep-sea environment was much more difficult to mine compared with land, because mining equipment has to endure high underwater pressures and marine corrosion.


Feng Xisheng, deputy director of underwater robot research at the Chinese Academy of Sciences, said the Jiaolong has dived to 6,000 meters. According to China Ocean News, the nation will conduct a 7,000-meter test dive later this year.


For Jin Jiancai, secretary-general of the China Ocean Mineral Resources Research and Development Association, another obstacle to commercially mining polymetallic nodules is its effect on the deep-sea environment and ecosystem.


Nodule regrowth can take millions of years and that would make such mining unsustainable.


People have little knowledge of most deep-sea species and environments, making environmental assessment almost impossible, Jin told Science and Technology Daily. He added that a law on deep-sea environment protection should be established to avoid potential harm during exploration and mining.


Improving the legal system relating to deep-sea mining and exploration was the key work of the State Oceanic Administration, Liu Cigui, administration director, said at the administration's annual conference in December.


An official of the administration, who did not wish to be named, told China Daily that regulation of deep-sea resources exploration and mining is under discussion, with an aim to protect the ocean.


The total output value of China's marine-based industries was 3.2 trillion yuan ($508 billion) in 2009, accounting for 9.5 percent of the country's GDP, according to the administration's website.


Contact the writers at tuoyannan@chinadaily.com.cn and wangqian@chinadaily.com.cn

http://usa.chinadaily.com.cn/china/2...t_15407696.htm

[everywhere]

Xinjiang to become new engine for China's auto industry
(Xinhua/Global Times, May 29)

China's far west Xinjiang Uyghur autonomous region is expected to become another engine for the country's automobile industry as Shanghai

Volkswagen, German carmaker Volkswagen AG's joint venture in China, laid the foundation for its new factory here on Monday.


The plant, located in the regional capital Urumqi, is expected to become operational in 2014 with an annual production of 50,000 units. The factory's first phase of construction will cost 2 billion yuan ($316 million), said Hu Maoyuan, chairman of SAIC Motor Corp and Shanghai Volkswagen at the ceremony.


As the first sedan manufacturing program in Xinjiang, the factory provides opportunities for Shanghai Volkswagen to explore the booming western China and central Asia markets, Hu said.


Xinjiang covers an area of 1.66 million square kilometers, making it China's largest provincial-level administrative region. The auto market is flourishing as the roads linking Xinjiang to its neighboring central Asian countries and inland provinces have been completed in recent years.


In the capital Urumqi, the number of cars doubled from 200,000 in 2009 to 400,000 in 2011.


The factory will promote the development of the auto and equipment manufacturing industries in Xinjiang and western China, said Nur Bekri, government chairman of Xinjiang.


"Xinjiang will fully support Shanghai Volkswagen's development here, and improve the automobile industrial chain," said Bekri.


He said the Urumqi plant will help Volkswagen "gain a strategic advantage" in the northwest China and central Asian markets.


Since 2010, China has been pushing for greater opening-up of the resource-rich and strategically-located Xinjiang, aiming to transform it into a regional economic hub from a relatively underdeveloped desert region.


Auto and equipment manufacturing has become a major industry in Xinjiang. Chinese manufacturing giants, including SANY, Shaanxi Automobile Group, Dongfeng Motor and XCMG, have already set up their plants in Xinjiang.


China-made automobiles exported to central Asian nations from Xinjiang more than doubled last year to 16,000 units, according to local customs data.


The revenue of these auto exports also grew by 120 percent to $680 million, according to figures released by the Xinjiang customs office. Over 80 percent of auto products exported to the Central Asia market were heavy trucks.


Xinjiang's customs attributed the sharp rise in auto exports to economic recovery in Kazakhstan and Kyrgyzstan and the appeal of low-cost but high-quality China-made automobiles.

http://www.globaltimes.cn/NEWS/tabid...-industry.aspx

[everywhere]

Energy-saving TV and air conditioner promotions
(China Daily Europe, May 29)

Detailed rules for promoting energy-saving flat-screen televisions and air conditioners have been jointly released by the Ministry of Finance, the National Development and Reform Commission and the Ministry of Industry and Information Technology, reported Shanghai Securities News on Tuesday.


According to the notice, beginning June 1, 2012, two energy-saving projects will be officially launched and operating for one year, the report said.


The central government will grant different subsidies according to product features and cost difference between energy-efficient products and non-efficient ones to promote the consumption energy-saving products.



For example subsidy for a LCD TV set will be 100 yuan ($15.81) to 400 yuan, a plasma TV is 250 yuan to 400 yuan, a fixed speed air conditioner is 180 yuan to 330 yuan, and a speed controllable air conditioner is 240 yuan to 400 yuan.



The report also noted that, for manufacturers who apply for participating the energy-saving flat TV promotion, the annual sales should be no less than 500,000 sets, while the amount for air conditioner manufacturers needs to reach 100,000 units.


In addition, enterprises also need self-owned brands or legal brand rights for their promotional products.

http://europe.chinadaily.com.cn/busi...t_15416071.htm

[everywhere]

State Grid seals second investment in Brazil
(Shanghai Daily, May 30)

STATE Grid Corp of China yesterday said it has agreed to buy electricity transmission assets in Brazil from Spain's Actividades de Construccion y Servicios SA for US$531 million and assume debt of US$411 million, the latest in a series of overseas acquisitions by Chinese power companies.

State Grid's wholly-owned subsidiary State Grid International Development Ltd will take over seven high-voltage electricity transmission assets in Brazil from ACS, it said in a statement via Bank of America Merrill Lynch, which acted as exclusive financial advisor to State Grid on the deal.

The latest transaction will be State Grid's second investment in Brazil and fourth major investment outside China, the statement said.

State Grid signed a deal early this year to buy 25 percent of Portuguese power grid operator Redes Energeticas Nacionais SGPS SA for about US$508 million. In December 2010, it bought seven Brazilian power transmission concessions for a combined nearly US$1 billion.

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

[everywhere]

Weak euro a blessing for tourists
(China Daily Europe, May 29)

Wang Yalan is traveling to Europe again this year as the falling euro is prompting a rise in Chinese tourists.



"The expenses for local transportation and accommodation in European countries are high, especially when I prefer to travel by myself rather than join tour groups," said Wang, who has a budget of about 10,000 yuan ($1,580), one month's salary, to visit the Eiffel Tower in France and Antonio Gaudi's works of architecture in Spain.



Last year, the 26-year-old manager in a Beijing digital publishing organization went to Germany.



"I'm not a big fan of luxury brands. But since it's a good deal to shop with euros now, I will consider buying some luxuries in Europe," said Wang, who is anticipating a shopping spree for clothes and handbags around vintage boutiques in the two countries.



Xi Lei, a 33-year-old Beijing resident who visited Italy and Greece for 15 days with about 20,000 yuan in June last year, said he would have saved as much as 3,000 yuan in travel costs if he had arranged the same trip this year.



"If the exchange rate was this low, I would be sure to buy more goods," said Xi, who spent another 10,000 yuan in Italy for Armani handbags and Gucci wallets for friends and himself.



For Chinese travel agencies, the depreciation of the euro has come as a boost to travel in the region, which was traditionally thought an expensive route by many Chinese tourists.


Ctrip, a leading online travel agency, said in a recent news release that the euro, which is at its lowest against the yuan in a decade, will encourage more Chinese tourists to make travel plans this summer.



"Both our group tour packages and individual tourism products for a summer vacation in Europe are on the hot-selling list," the statement said. "We also expect that tourists will shop for more luxury goods as the price, already lower than purchasing at home, became cheaper due to the weak currency."



Although the prices of air tickets and hotels are lower than before, industry insiders said tourist agencies are not likely to cut the price for group tour packages as a result of the weaker euro.



"The exchange rate may reverse in a few months, so travel agencies don't dare adjust prices immediately. But if the rate is pegged for a longer time or the euro continues to depreciate, it will be a possible result," said Bai Jiang, manager of the European-bound travel business for China Travel Service.



Zhang Wei, general manager of the outbound department at the China International Travel Service head office, said Chinese tourists could save money even if the price for a group tour package remains unchanged.



"Generally speaking, tourists will spend extra money on some items at their own expense or give tips during the trip, which might amount to about 3,000 yuan," she said.



"The lower exchange rate means they can also save about 500 yuan more than in the past."



With domestic sales in the doldrums, Europe's retail and hospitality industries are giving more favorable discounts and better services to attract Chinese tourists, said Ma Yiliang, a researcher at China Tourism Academy.



"The price of tour packages for Europe-bound travel fell about 7 percent in the first four months this year compared with the same period last year, while the number of tourists has increased by 16 percent," he said.



Contact the writers at tanzongyang@chinadaily.com.cn and xujingxi@chinadaily.com.cn

http://europe.chinadaily.com.cn/busi...t_15410668.htm

[everywhere]

Chinese car owners criticize Volkswagen for ignoring core quality issues
(China Economic Review, May 30)

Car owners and auto insiders in China criticized Volkswagen's latest warranty extension plan for its problematic direct shift gearbox (DSG), saying that the German automaker has ignored core issues raised on the transmission's quality, Global Times reported.

Analysts also noted that the warranty extension is luring consumers to frequently maintain the transmission at its authorized dealerships, which may end up costing about 20 billion yuan ($3.17 billion) to owners in maintenance-related charges, despite the warranty.

"The long-awaited solution is not effective enough to guarantee that the company will remove all potential safety hazards caused by the dual-clutch gearbox," senior independent auto analyst Zhang Zhiyong told the Global Times on Monday.

Despite facing pressure from quality watchdogs, the media and the public in China, the company has neither admitted drawbacks of the DSG technology nor proved that the technology is flawless, according to Zhang, the newspaper said.

http://chinaeconomicreview.com/chine...-quality-issue

[big-dog]

Originally Posted by ukiyo

Japan and China to start direct currency trading

Great news. Hope that can further boost the mutual economy of the two countries.

[everywhere]

Originally Posted by big-dog

Great news. Hope that can further boost the mutual economy of the two countries.

And the China-S.Korea-Japan FTA negotiations is in progress...

[everywhere]

Carrefour to hire Chinese MBA's
(China Economic/China Daily, May 30)

France's Carrefour SA China plans to recruit Chinese MBA students as store managers to support its fast expansion plans in the world's second largest economy.


"Carrefour China will recruit more than 20 store general managers who are MBA students in the next six months to work for its outlets," said Joanna Meng, human resources director and vice-president of Carrefour China.


The event, Carrefour China Day, sponsored by the Guanghua School of Management at Peking University, aims to hire the high-caliber students.
According to the world's second largest retailer by sales revenue, after the US' Wal-Mart, all the MBA students from Peking University hired this time will be put into senior management positions at the store general manager level.



After being hired, they will receive one-year Mandarin elite training in the company involving the systematic study of 15 courses including marketing, finance and security. During the last stage of the training program, they will have the opportunity to take a business tour of Europe.


In addition, Carrefour China will also try to recruit potential employees from MBA students studying in the universities of Shanghai, Guangzhou and Chengdu to build up its management team.


"Carrefour provides a good platform and opportunities for the students. It gives them enough room for further training and promotion," said Meng.


"My past work experience was related to retailing. I think I can learn a lot while working for traditional retailing industries," said a current MBA student at Peking University.


As one of the earliest foreign retailers operating in China, Carrefour has been maintaining solid growth. The retail giant opens 20 to 25 new stores in the country each year. As of April this year, Carrefour China already had 206 stores in 64 Chinese cities, employing more than 58,000 people. As many as 98 percent of the store managers and 50 percent of the regional managers are Chinese.



In 2010, Carrefour China also promoted a Chinese employee to the position of the country's general manager, a key member of the company's executive committee.


"In order to meet the demand of our fast store expansion, we are having face-to-face interactions with the MBA students at the school and are recruiting the would-be management professionals who are interested in the retail industry, have leadership and good personalities," said Meng.


In 2006, the company signed a contract with China-Europe International Business School and gave it $128,410 to help it recruit elite MBA students.

http://en.ce.cn/Business/Enterprise/...23365324.shtml

[everywhere]

A special report from China Economic about the booming retail and logistics industries:



Express companies see revenue up 38%
(China Economic, May 29)

According to the latest data released by the State Post Bureau, express enterprises above designated scale delivered 1.04 billion express mails in the first quarter of this year, realizing business income of RMB 21.61 billion Yuan, a year-on-year increase of 38 percent.


The industry plays a foundation role
Express industry plays an increasingly important role as a basic service industry in economic and social life.

As the foundation of development of e-commerce industry, express delivery will hinder the development of e-commerce if it fails to keep pace. With the adjustment of economic structure and upgrading of consumption, it is necessary to consider how to better give play to the role of express delivery as a basic service industry in the whole economic and social life.



Experts estimate that if the daily peak of 10 million pieces can maintain, the express volume of China will double in the next 5 years to surpass Japan, which will make China a power of express delivery second only to the United States.

At present, an important development trend of express service is to extend downstream to blend more closely with e-commerce, manufacturing industry and relevant industries. In recent years, e-commerce becomes a new growing pole of express service.



The thriving development of online shopping brings explosive growth of express service, which is more obvious in middle and western China. Over half of the business of many express enterprises comes from online shopping. For example, 60 percent of the business of STO Express and Yuantong Express comes from the e-commerce orders on Taobao.

According to relevant persons in charge of State Post Bureau, during the "12th Five-year Plan", it is of great importance for the postal industry to join the industrial chain, supply chain and service chain of social personalized production and consumption through providing personalized express and logistics delivery service.



Express service extends to related fields, and highlights in business development emerge one after another. Traditional delivery service combines with sales service, and express service blends with traditional businesses like storage, financial settlement to create new increment and profit models.



In this process, some express enterprises attach more and more importance to the construction of scale, intensification, management modernization and corporate culture, and gradually transform themselves into modern enterprises.



In recent years, thanks to the high growth of express service, more and more capitals from outside the industry start to pay attention to this market. The integration of resources brings broader market space and more advanced management concepts to the express industry, which is beneficial for the upgrading and improvement in level of the industry.




Consumption upgrading expands demand

The strategy of expanding domestic demand, flourish of e-commerce and formation of "Great Transportation" bring opportunities for development of express industry.

During the "12th Five-year Plan", the development of express industry enjoys favorable conditions with the advent of a series of good factors. First, new development opportunity comes from the huge demand for service industry in the state strategy of boosting domestic demand.



The consumption upgrading after China's per capita GDP exceeds $4000 will bring new opportunities for the express field. According to the international experience, the per capita GDP over $4000 means that consumption enters the stage of accelerating transformation and the consumption structure will shift to a higher level. In recent years, people focus more on life quality and generate more service needs.



Personalized needs require personalized production and service. For express delivery, it refers to "door-to-door", "desk-to-desk" quick and convenient personalized service. Therefore, consumption upgrading will bring a huge market for express service.

Meanwhile, the boom of e-commerce creates diversified needs for express service. In the past, the development of domestic express service used to be mainly closely linked to manufacturing industry, international trade and modern service industry, and gathered in developed areas of eastern China.



The thriving rise of e-commerce creates many new businesses and services in the express field. The latest situation shows that the e-commerce market has spread across China and the express service has extended from developed eastern China to middle and western China, from urban to rural areas.



Although China's online shopping market develops rapidly in recent years, but it still takes up a relatively low ratio in the whole retail area compared with foreign counterparts and traditional domestic business markets. In 2010, China's online shopping only accounted for 3.2 percent of total retail sales of consumer goods, far behind developed countries. This figure was 8 percent in the US and 10 percent in Korea in the same period, and online shopping in these countries is still thriving.

In addition, the formation of "Great Transportation" also offers favorable conditions for express network to optimize its layout. During the "12th Five-year Plan", Ministry of Transport proposes the strategy of promoting development of modern logistics and establishing transportation system featured by low carbon.



It will push forward the synchronous construction of supporting express service outlets, processing centers and hub facilities in the layout of highway, air, railway passenger and freight transportation hub; encourage express enterprises to cooperate with transportation enterprises; boost the mutual beneficial cooperation between express service and industries like highway, air transportation; and realize the coordinated development of express service industry and transportation industry. The rapid development of high-speed rail industry of China will bring convenient conditions for express delivery.

http://en.ce.cn/Insight/201205/29/t2...23362959.shtml

[everywhere]

China may begin importing corn from Argentina
(China Economic, May 30)

China, the world's second-largest corn consumer, may soon start importing Argentine corn, which has been barred because some genetically modified varieties are yet to be approved by Beijing.


"We believe issues with genetically modified seeds can be resolved in the next 60 days", Argentine Agriculture Minister Norberto Yauhar said at a recent news conference in Beijing.


Premier Wen Jiabao is set to visit Argentina next month, accompanied by Agriculture Minister Han Changfu and Ren Zhengxiao, director of the State Administration of Grain.


Given China's rising demand for corn, agricultural analysts said this could help the country diversify its corn supply and reduce its reliance on supplies from the United States.


China signed an agreement with Argentina on corn imports in February and the pact was expected to take effect on April 20. But some varieties of genetically modified crops, popular among South American farmers, are prohibited by China and therefore blocked from the Chinese market.


Chinese media reported in March that the country had signed agreements to purchase 40 million metric tons of Argentine corn this year.


China's corn consumption more than doubled over the past decade, thanks to the growing demand from the country's livestock industry, which has steadily driven up corn imports.


During the first four months of this year, corn imports stood at 1.76 million tons, more than the total amount last year, according to the General Administration of Customs. Most of China's corn imports now come from the US.


Chinese industry analysts estimate the country's corn imports this year will be between 3 million and 4 million tons, while the US Department of



Agriculture set its forecast at 6 million tons in a report released earlier this month.


Argentine corn is currently exported to other Asian countries including Japan and South Korea, and "we are looking forward to China's market", said Fernando Martinez de Hoz, a senior trader at the grains division of the Buenos Aires-based exporter Nidera SA.


Argentine corn could compete with US corn in both quality and price and may prove popular among China's private mills, said Ma Wenfeng, a senior analyst at Beijing Orient Agribusiness Consultant Ltd, one of the largest consultancies in the industry.


But as agricultural trade becomes increasingly important in balancing Sino-US trade, large State-owned importers, which control about 60 percent of the country's corn import quota, may still stick to US corn for "political reasons", Ma added.


Argentina has in recent years made it a priority to increase agricultural exports to China.


During the past two years, Argentina has signed protocols to allow exports to China of corn, bovine semen and embryos, barley, beef and dairy products. The South American country is also a major soybean supplier for China.

http://en.ce.cn/Business/Macro-econo...23365252.shtml