The Export-Import Bank of China: Want to Be the Best in A Better World ?

China’s Overseas M&A in Global Economic Crisis

Liaoning Coastal Economy: Ne ver So Import ant Cross-Regional Belt Economy

邮发代号：80-799 国内刊号：CN11-1020/F 国际刊号：ISSN0009-4498 Lifestyle film FENCH NEW WAVE (La Nouvelle Vague) French New Wave is over 50 years old but still young and provocative. Probably because it was a real influx of innovation in the history of world cinema. This retrospective permits to revive this time, this sense that, suddenly, everything is possible in cinema.

AUGUST 2009 FRENCH CULTURAL CENTRE French films with Chinese (and sometimes English) subtitles RMB 20 (Students: RMB 10) Fidelity card: 100 Rmb/5 films + 1 free (Students: 50 Rmb) Free entrance on Monday More information: www.ccfpekin.org

Cinema program to marry Francoise, a pretty blond he notices at mass. Vidal, Breathless an old school friend, invites him to visit the recently divorced France, 1959, 89’ Maud, and the narrator ends up staying the night, having philo- Detective – Director: Jean-Luc sophical discussions in her bedroom. Godard With: Jean-Paul Belmondo, Jean Monday 8 / 3 – 7:30 pm Saturday 8 / 8 – 7:30 pm Seberg Friday 8/ 14 – 7:30 pm Wednesday 8 / 19 – 7:30 pm French version with Chinese sub- titles Michel is a young thug who roman- Claire’s Knee tically models himself on Humphrey France, 1970, 111’ Bogart. While driving a stolen car, Drama – Director: Eric Ro- Michel shoots a policeman who follows hmer him onto a country road... With: Jean-Claude Brialy, Sunday 8 / 2 – 7:30 pm Friday 8 / 7 – 7:30 pm Laurence de Monaghan, Aurora Saturday 8 / 15 – 7:30 pm Monday 8 / 24 – 7:30 pm Cornu Saturday 8 / 29 – 7:30 pm French version Chinese sub- titles Cultural attaché Jerome spends Jules and Jim his last holidays as a bachelor at France, 1961, 105’ Lake Annecy where he meets Drama – Director: François Truf- Aurora, an Italian writer and old faut friend. She talks him into a flirt With: Jeanne Moreau, Oskar Wer- with his landlady’s teenage daughter, Laura, but he falls for ner, Henri Serre Laura’s half-sister Claire and develops a desire to caress her French version with Chinese sub- knee titles Wednesday 8 / 12 – 7:30 pm Sunday 8 / 16 – 7:30 pm The lifelong friendship between Saturday 8 / 22 – 7:30 pm Wednesday 8 / 26 – 7:30 pm two writers–French novelist Jim and Monday 8 / 31 – 7:30 pm Austrian children’s author Jules - and their mutual love for the eccentric Catherine. Lola Saturday 8 / 1 – 7:30 pm Wednesday 8 / 5 – 7:30 pm France, 1961, 90’ Monday 8 / 10 – 7:30 pm Friday 8 / 21 – 7:30 pm Drama – Director: Jacques Sunday 8 / 30 – 7:30 pm Demy With: Anouk Aimee, Corinne Marchan, Elina Labourdette My Night at Maud’s French version with English France, 1969, 110’ and Chinese subtitles Drama – Director: Eric Rohmer In Nantes, a bored young man With: Jean-Louis Trintignant, named Roland is letting life pass Françoise Fabian, Marie-Christine him by when he has a chance meet- Barrault ing with a woman he knew in his French version with Chinese sub- teens: she’s Lola, now a cabaret titles dancer. Jean-Louis, a devout Catholic, Sunday 8 / 9 – 7:30 pm Monday 8 / 17 – 7:30 pm moves to a provincial town and vows Sunday 8 / 23 – 7:30 pm Friday 8 / 28 – 7:30 pm Lifestyle on stage Top Guitar Concert Experts’ Comments Artists: Wang Juan & The The Shaolin spirit expressed by the grand scenes in this dra- Band, IC Band, Cai Zheng Dong ma is what today’s dance dramas lack and need, and the tentative & The Band, Ai Jun, Chen Hong combination of dance and martial arts in it is also valuable. Wei &The Band, The Pulse, The — Yu Ping, Director, Fine Art Department 5th Happy, North Color of Ministry of Culture Date: August 9, 20:00 This drama is well designed, produced and performed. It is Price: On door RMB 50, inspiring and shocking. In advance RMB 40, Students — Jia Zuoguang, Honorary President, RMB 40 Chinese Dancers Association Add: The Star Live, 3Floor, Once I watched this drama, I felt that dance drama has No.79, Hepingli Xijie, Dongcheng turned a new page. District, Beijing — Zhaoqing, Vice President, Chinese Tel: 86-10-64255677 Dancers Association It is even better than what I expected. Fantastic, touching and profound. The combination of dance and martial arts is cre- Stage Play: Chibi Maruko-chan ative. This drama is exceptional among Chinese dance dramas. Time: August 12-August 16, 2009 — Xu Peidong, Secretary of Party Leadership Group of Venue: Poly Theatre Price: RMB 180/280/380/580 Chinese Musicians Association, Famous Composer Presenter: Theatre Company Hikosen The original stage play “Chibi Maruko-chan” will land in Beijing with Chinese dub. “Spring Coming”-Shuangzi & The Boxers Chibi Maruko-chan is going to play as “Cinderella” at the upcoming school party. The party is around the corner, but Chibi Concert Maruko-chan still gets depressed in remembering the lines no Artists: Shuangzi & The matter however has she tried. Boxers,Hip-Hop Laughing Stock And she gets even more ner- Shop vous when she got to know Another Mystery Guest that she will have to dance Date: August 15, 21:00 while singing. She practices Price: On door RMB 80, In and practices, but only finds Advance RMB 60, Students RMB 60, VIP RMB 120 (Limited her in an embarrassing posi- RMB 80) tion. What will happen? Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Dongcheng District, Beijing Tel: 86-10-64255677 Dance Drama: Shaolin Temple Time: August 13-August 16, 2009 Venue: NCPA-Opera House Stefanie Sun Beijing Concert 2009 Price: RMB 120/180/280/380/480/580 Time: August 15, 2009 Dance Drama Shaolin Temple tells a legend of a Shaolin Venue: Workers’ Stadium monk, a life-and-death struggle between justice and villainy, Price: RMB 180/280/480/ and a love tragedy with restrained Eastern beauty. 680/1080/1580 Tianyuan and Sushui are a long-married couple working “The Answer Is… Stefanie in a theatrical troupe. They were forced to separate when run Sun World Tour 2009”, which after by bandits. The badly wounded Tianyuan was rescued by will kick off from Taipei in May, an eminent monk named Hui Shan, who cured him with magic promises to be a visual feast. Shaolin medical skills. Later, the couple met each other again Hong Kong’s renowned stage at Lantern Fair of Central Plains, but unfortunately they were art director, William Chang, found by bandits again, who hurt Tianyuan and caught Sushui. is the image consultant, and Tianyuan went back to Shaolin Temple. Yearning for Sushui and Wing Shya, the photographer wishing to revenge, Tianyuan started and concert artwork designer. to practice martial arts. Several years The concert will also feature an later, when bandits invaded Central exclusive multifaceted stage de- Plains again, Tianyuan led a group of sign, with extensive use of holo- monks fighting back bravely... grams instead of the usual two- The drama displays not only dimensional projections. Shaolin martial arts and war scenes, Having been actively in- but also sceneries of landscape and ro- volved in many aspects of the mantic love, presenting the audience tour since its conceptualization, Stefanie says this concert is with shocking spectacles and brand- very close to her heart. new artistic experience.

Lifestyle Ballet: Onegin (NBC 50th Anniversary) winning American singer- Time: August 19-August 22, 2009 songwriter and actor who has Venue: NCPA-Opera House achieved highly recognized Price: RMB 80/120/200/300/400/500 success in Taiwan, Mainland Presenter: National Ballet of China China, Hong Kong, Japan, The three-act ballet Onegin was created by the legendary and throughout Southeast “ballet drama” choreographer, John Cranko, in 1965 based on Asia. Pushkin’s novel in verse, Eugene Onegin. Famous contempo- He coined the term rary German composer Kurt-Heinz Stolze set it to music by us- “chinked-out” music to de- ing Tchaikovsky’s well-known piano divertimento The Seasons. scribe his music, which is The work integrates the merits of symphonic ballet and ballet heavily influenced by traditional Chinese music. Wang is man- drama and vividly demonstrates the innocent charm of Tanya aged by and records albums with Sony BMG Taiwan. Since and the flippancy and hypocrisy of Onegin. It remains the most 1995, Wang has contributed in over 25 albums, and has sold ap- exquisite of Cranko’s works since its advent. A neat structure proximately 15 million records. In addition to his music, Wang and an innovative choreography which is well mingled with also participated in several films, his role in Ang Lee’s Lust, the music make it one of the most moving ballets in the 20th Caution gaining the most attention. He is also an environmen- century. Even the laymen who understand little about ballet will tal activist, and was invited to be one of the first torchbearers fall under its spell, find an affinity with the protagonists and be for the Beijing 2008 Summer Olympics, carrying the torch in concerned with their fate. This is exactly what Pushkin seeks Olympia, Greece on March 24, 2008. He was also invited to by communing with his readers in his literary works. Accord- perform in the closing ceremonies. His album Change Me was ing to some critics, Onegin alone would establish Cranko as an dedicated to raising eco-awareness among Chinese youth. Wang esteemed master. was listed among “The 100 Most Inspiring Asian Americans Cranko’s Onegin has long of All Time” by Goldsea Asian American Daily”. (Information remained a prized piece in the courtesy of en.wikipedia.org) repertoire of the German-based Stuttgart Ballet. The company’s artistic director Reid Anderson Disney Live! Winnie the Pooh joked in the premiere party of Time: August 26-August 30, 2009 the National Ballet of China: “I Venue: Century Theater am really worried that the Na- Price: RMB 120/180/280/380/500 tional Ballet of China will out- Ticket Package: RMB 500/700/1000 perform Stuttgart and include Winnie-the-Pooh, commonly shortened to Pooh Bear and Onegin in their repertoire.” once referred to as Edward Bear, is a fictional bear created by A. A. Milne. The first collection of stories about the character was the book Winnie-the-Pooh (1926), and this was followed by Zhang Xuan City-Singing Tour China The House at Pooh Corner (1928). Milne also included a poem Tour in Beijing about the bear in the children’s verse book When We Were Very Young (1924) and many more in Now We Are Six (1927). All Artists: Zhang Xuan&Algae Band four volumes were illustrated by E. H. Shepard. Date: August 21, 2009 The hyphens in the character's name were later dropped Price: TBC when The Walt Disney Company adapted the Pooh stories into Add: The Star Live, 3Floor, No.79, Hepingli Xijie, a series of Winnie the Pooh featurettes that became one of the Dongcheng District, Beijing Tel: 86-10-64255677

Perfect World Zorana&Fall in Sex The Dragon Tree New CD release concert Artists: Zorana&Fall in sex Date: August 22, 20:30 Price: On door RMB 70, In Advance RMB 60, Students RMB 60, VIP RMB 120 (Limited) Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Dongcheng District, Beijing Tel: 86-10-64255677

company’s most successful franchises worldwide. Lee-Hom Wang “Music Man” World Tour The Pooh stories have been translated into many languages, Beijing Concert notably including Alexander Lenard’s Latin translation, Winnie ille Pu, which was first published in 1958, and, in 1960, became Time: August 22, 2009 Venue: Workers’ Stadium the first foreign-language book to be featured on the New York Price: RMB 180/280/380/600/800/1200/1500 Times Best Seller List, and is the only book in Latin ever to Lee-Hom Wang is a four-time Golden Melody Award- have been featured therein. Lifestyle in December 2008, it already Modern Dance & Ballet: Prism boasts a rich repertoire of Time: August 28-August 29, 2009 5 pieces and is happy to be Venue: People’s Liberation Army Opera House working together with a truly Price: RMB 60/100/180/280/380/580 global creative team so early Presenter: Beijing Contemporary Dance Theatre in its existence. The Beijing Contemporary Dance Theater presents three “This exchange offers a original dance works by accomplished international choreogra- fantastic learning opportunity phers from Canada, Denmark, and Sweden. for both sides,” says Artistic Programs Director of the BCDT Wang Yuanyuan. “The bringing Map of Me (and you) together of such talented cho- Choreographer: Louise Midjord (Denmark) reographers from Europe and Luminous North America with our Chi- Choreographer: Pontus Lidberg (Sweden) nese dancers and crew allows all of us to learn from one White another. A prism also sug- Choreographer: Nadine Thouin (Canada) gests seeing things from dif- Lidberg’s contribution is called Luminous. ferent angles, and we hope in The three new works together will comprise Prism—a our creative expressions and three-sided glass which refracts white light, breaking it into a processes we can help each spectrum of colors. other see from the other side. The collaboration over the summer, culminating in the The arts can serve as great performance on August 28, marks the first annual international diplomacy—a direct field for collaboration for the brand new Beijing Contemporary Dance understanding and compas- Theater. Though the dance company performed its first piece sion between peoples.” best seller The Great Depression Ahead The first and last economic depression that you will experience in your lifetime is just ahead. The year 2009 will be the beginning of the next long-term winter season and the initial end of prosperity in almost every market, ushering in a downturn like most of us have not experienced before. Are you aware that we have seen long-term peaks in our stock market and economy very close to every 40 years due to generational spending trends: as in 1929, 1968, and next around 2009? Are you aware that oil and commodity prices have peaked nearly every 30 years, as in 1920, 1951, 1980 — and next likely around late 2009 to mid-2010? The three massive bubbles that have been booming for the last few decades — stocks, real estate, and commodities — have all reached their peak and are deflating simultaneously. Bestselling author and renowned economic forecaster Harry S. Dent, Jr., has observed these trends for decades. As he first demon- strated in his bestselling The Great Boom Ahead, he has developed analytical techniques that allow him to predict the impact they will have. The Great Depression Ahead explains “The Perfect Storm” as peak oil prices collide with peaking generational spending trends by 2010, leading to a more severe downtrend for the global economy and individual investors alike. Harry’s predictions: • The economy appears to recover from the subprime crisis and minor recession by mid-2009 — “the calm before the real storm.” • Stock prices start to crash again between mid- and late 2009 into late 2010, and likely finally bottom around mid-2012 -- between Dow 3,800 and 7,200. • The economy enters a deeper depression between mid-2010 and early 2011, likely extend- ing off and on into late 2012 or mid-2013. • Asian markets may bottom by late 2010, along with health care, and be the first great buy opportunities in stocks. • Gold and precious metals will appear to be a hedge at first, but will ultimately collapse as well after mid- to late 2010. • A first major stock rally, likely between mid-2012 and mid-2017, will be followed by a final setdback around late 2019/early 2020. • The next broad-based global bull market will be from 2020-2023 into 2035-2036. Conventional investment wisdom will no longer apply, and investors on every level — from billion-dollar firms to the individual trader — must drastically reevaluate their policies in order to survive. But despite the dire news and dark predictions, there are real opportunities to come from the greatest fire sale on financial assets since the early 1930s. Dent outlines the critical is- sues that will face our government and other major institutions, offering long- and short-term tactics for weathering the storm. He offers recommendations that will allow families, businesses, investors, and individuals to manage their assets correctly and come out on top. With the right knowledge and preparation, you can take advantage of new wealth opportunities rather than get caught in a downward spiral. Your life is about to change for reasons outside of your control. You can’t change the direction of the winds, but you can reset your sails! 2009 No.15/460

BI-WEEKly WATCH 24 8 Figure 9 Agriculture Overseas Merger and Acquisition (M&A) is not 10 Energy 11 Chemical only the major means for the enterprises to 12 Steel 13 Auto expand rapidly and 14 Environment 15 Textile operate globally, but also the significant 16 Light Industry 17 Tourism strategic tools for acquiring advanced 18 Finance 19 Investment technology from other companies and seizing 20 Transportation 21 WTO the market and other resources. As for the Special report government, it should further specify the 24 China’s Overseas M&A in Global support for the strategy of enterprises “going Economic Crisis global”. 26 Focus on Transnational Corporations and Global Economic Revival 28 M&A in Mittal Steel Case

Voice 30 Chinese M&A, Opportunities & Risks

CITY 32 Dunhuang, the Pearl on the Silk Road

INVESTMENT INFO Dunhuang, long ago referred to as “Sha Zhou” (beautiful 32 desert oasis), was the hub of middle and eastern silk routes 36 Investment Projects in Western China in ancient times. The city landmark is an attractive statue, the idea of which comes from the mural in Mogao Caves, a shrine to the culture and arts of Dunhuang. Economy 38 What’s Behind the Hype of Decoupling?

Exchange 39 Real Spiritual Home in Guangzhou

ccpit 41 Wan Jifei Met Szumski, the Polish Ambassador

Industry 42 Five Points in One-line Strategy The S&ED will develop a new mechanism for both big 58 countries and help build trust and relationships. 44 Liaoning Coastal Economy: Cross-Regional Belt Economy Sponsored by (主管) CCPIT(中国国际贸易促进委员会)

Published by (主办) Media and Press Center of CCPIT Auto Show 中国国际贸易促进委员会宣传出版中心 46 Geely Just Might Switch 49 Auto Technology Exhibition in Tianjing 社长 President 杨晓东 Yang Xiaodong 总编辑 Editor-in-Chief 王晓同 Wang Xiaotong 副社长 Vice President 石 净 Shi Jing World Expo 编辑部副主任 杨 蔚 50 ROK Pavilion to Get Glamour Editorial Deputy Director Yang Wei 编辑部 Editorial Department 郭 艳 Guo Yan Tel:86-10-68053271 臧可佳 Zang Kejia Fairs 郭丽琴 Guo Liqin 李 振 Li Zhen 52 China Fairs & Expos 英文校审 English Polisher 泰瑞·克兰丹农(美) TY Clendenen

经营部总经理 石 净（兼） Case Study Marketing Department Director Shi Jing 副总经理 白义峰 Bai Yifeng 56 Feel Pressure Under China’s Anti-monopoly Law? Deputy Director 惠 飞 Hui Fei 项目经理 Manager 石林峰 Shi Linfeng Tel:86-10-88075934 游万龙 You Wanlong GLOBAL 88075494 李小冬 Li Xiaodong 丁秋珍 Ding Qiuzhen 58 Never So Important 高 嵩 Gao Song

通联发行部总经理 李英宏 Rule Distribution Department Director Li Yinghong 项目经理 Manager 张 越 Zhang Yue 62 Anti-monopoly Law of the People’s Republic Tel:86-10-88075342 余 涛 Yu Tao 王 石 of China Wang Shi 理事会副秘书长兼秘书处主任 杨复强 CHINESE tIPS Council Secretariat Director Yang Fuqiang 联络专员 Assistant 刘晓东 Liu Xiaodong 67 Take A Taxi II Tel:86-10-88075380 宋华峰 Song Huafeng 戚英杰 Qi Yingjie 石 林 Shi Lin Supply info General Distributor For Overseas Subscribers 68 2009 China Market Suppliers List 国外发行总代理 China National Publications Import & Export(Group) Corporation 中国图书进出口(集团)总公司 Add: 16, Gongti East Road Beijing, China Index of Advertisement Post Code:100020 江西昌河汽车股份有限公司 地址：北京市朝阳区工体东路16号 Jiangxi Changhe Motors Co.,Ltd Tel: 86-10-65066688-8822 65063082 China International Book Trading Corporation 贵州茅台酒股份有限公司 中国国际图书贸易总公司(GUOJISHUDIAN) China Dweichow Moutai Distillery Co.,Ltd Add: Box 399, Beijing 100044, China 地址：中国北京399号信箱(100044) 中法合营王朝葡萄酿酒有限公司 邮发代号 80-799 Sino-French Joint-Venture Dynasty Winery Ltd. 国内统一连续出版物号 CN11-1020/F 及国际标准刊号 ISSN0009-4498 东北亚投资贸易博览会 AD LICENCE No. JXGS/G-0249 The Fifth China Jilin·Northeast Asia Investment and Trade Expo 广告经营许可证号 京西工商广字第0465号 Domestic Price 国内订价 16元(RMB) 全球海运峰会 Overseas Price 国外订价 US$5 Global Shipping Summit 设计制作 北京锋尚制版有限公司 印刷 北京瑞禾彩色印刷有限公司 Cooperation Media 常年法律顾问 北京市天银律师事务所

www.KanKan.cn License Mark of General Administration of Press and Publication, the People’s Republic of China Profits of SOEs: 27%↓ in H1 Urban employees’ wage: 12.9%↑ in H1

Profits of China’s state-owned enterprises (SOEs) slid 27 Average wage per capita for percent year on year in the first half of the year, but the decline Chinese urban employees grew 12.9 rate started to narrow in the second quarter as the industrial ex- percent year on year to RMB 14,638 pansion is gradually recovering. (about US$2,149.78) in the first half Their profits totaled RMB 553.4 billion (US$81.38 billion) of this year, said the National Bu- between January and June, according to the Ministry of Finance reau of Statistics on July 29. on July 17. The growth rate was 5.1 per- The decline was 3.3 percentage points smaller than the fig- centage points lower than that in the ure for the first five months. Sales revenue fell 5.9 percent year same period last year, the bureau on year to RMB 9.79 trillion. Profits of the 138 central govern- said. Average wage per capita for fi- ment-administered SOEs decreased 20.9 percent to RMB 416.4 nancial industry employees in urban billion. areas stood at RMB 30,603 in the China’s SOEs have seen a smaller profit decline for four first half, ranking the first among all months as the economy started to rebound in the second quarter urban industries’ employees. from the worst growth in a decade. Meanwhile, information, com- The industrial output tumbled to 3.8 percent in the first two puter service and software industry months, but bounced back to 8.3 percent in March as the govern- employees’ average wage per capita reached RMB 27,730, 1.9 ment’s 4-trillion yuan stimulus package started to take effect. times higher than the national average level. The industrial output rose 7.0 percent in the first half, ac- Employees from scientific and technology service sector cording to the figure released by the National Bureau of Statis- followed, with their average wage per capita approaching RMB tics. (NBS) 23,248. The hotel and catering, construction and water conservan- cy, and environment and public management sectors recorded Farmers’ net income: 8.1%↑ in H1 the lowest wages, with an average annual per capita of RMB 9,885, RMB 10,349, and RMB 11,666, respectively. The net income per capita of China’s rural residents in the The average salary comprises the basic wage, bonus and first half of this year increased 8.1 percent year on year, said the all allowances and subsidies. It is often used as a reference by National Bureau of Statistics (NBS) in a statement on July 24. the government for setting salary standards and calculating so- A report surveying 68,000 rural households in the country’s cial insurance premiums. (NBS) 31 provinces shows farmers’ net income per capita in the first quarter reached RMB 2733 (US$400.12) per year, according to the NBS. Peanut export: 9% ↑ in H1 Farmers’ salary income per capita, which mainly includes a farmer’s earnings from working in local or urban enterprises, China’s exports of peanuts rose 9 percent year on year in reached RMB 954 per year, up 8.4 percent year on year. the first half of this year, but the total export value fell because of Farmers’ cash income from selling agriculture products lower prices paid for the commodity, an official said on July 29. per capita grew 4.1 percent year on year to RMB 1124, said the China is the world’s biggest producer of peanuts. Export report. value fell 22 percent in the period, said Huo Jianguo, president In 2008, farmers’ net income per capita was RMB 4761 of the China Chamber of Commerce of Import and Export of (US$696.7), a growth of 8-percent over the previous year, ac- Foodstuffs, Native Produce and Animal By-Products. He did cording to a survey released by the Chinese Academy of Social not give specific figures. Sciences, the country’s government think tank in April. “The international peanut price began to fall in the fourth China’s agriculture industry has kept a sound momentum in quarter last year, affected by the financial crisis. The price the first half of this year despite adverse influence brought by the fell from US$1,600 a tonne in the first half of 2008 to around global downturn and drought, as the government has been im- US$600 a tonne at the end of last year, which caused the export proving favorable policies to farmers, said Agriculture Minister value drop,” Huo said. Sun Zhengcai in a national agriculture meeting. The price of peanuts picked up April this year and The central fiscal has so far allocated RMB 123 billion in has now reached nearly US$1,000 a tonne, he said. China subsidizing farmers’ purchase of seed, diesel, fertilizers and produced 15 million tonnes of peanuts in 2008. It exported other production materials this year, rising 19.4 percent over the 510,000 tonnes of peanuts with a value of US$770 million last previous year, according to Sun. (NBS) year. (Xinhua)

8 nergy

E China’s wind power capacity doubles in H1 Hubei’s largest wind farm

China’s installed wind power capacity that transmits power into the national elec- started construction tricity grid rose 11.81 million kW in the first half of this year, doubling the figure of a year earlier, an industry expert said on August 2. The first phase project of Hubei Shu Yinbiao, vice general manager of the State Grid Corporation, said the in- Province’s largest wind farm started con- stalled wind power capacity soared 101 percent year on year by the end of June, show- struction at the top of Qiyue Mountain ing the country’s strengthened efforts on using renewable energy. in Lichuan City of Enshi Tujia and Miao Shu suggested mapping out a long-term wind power development plan for the Autonomous Prefecture on July 29. whole country and formulating relevant national technical standards for new energy Qiyue Mountain Wind Farm is listed including wind and solar power to regulate their development. as one of the ten largest wind farms in China’s wind power sector gained momentum in recent years due to the govern- China. It has 800,000KW of theoretical ment’s supportive policies. Figures showed that the country’s installed wind power wind energy reserves, and 500,000KW capacity reached 12 million kW by the end of 2008, ranking the fourth globally trailing of exploitable volume. The overall invest- the United States, France and Spain. (Xinhua) ment for the first phase project amounts to 546.07 million yuan. Upon completion, it will form 49300KW of generation capac- ity. It is reported that the United Nations Development Program (UNDP), in part- nership with China’s National Develop- ment and Reform Commission, carried out investigations and assessments on China’s renewable energy resources in 2002. Qiyue Mountain wind power proj- ect is incorporated into the UNDP gratu- itous aid projects. (China Energy Net)

Oil imports poised for recovery in H2

China’s oil imports grew marginally in the first half as the country’s economy However, last year nearly half of the slowed, but may see further growth in the second half as demand improves, said indus- country’s oil consumption was reliant on try insiders. imports. The small growth in oil imports from January to June was largely due to the weak By becoming a net oil importer 15 domestic demand. However, oil imports are set to rebound in the second half, said Liu years ago, China’s fuel imports has seen Gu, analyst with Guotai Jun’an Securities in Shenzhen. accelerated growth in the past years. In However, she pointed out that the revival might not be too fast. “We expect oil im- 2004 the figure surpassed 100 million ports will see a 1-percent year-on-year growth in 2009.” tons, up by 35 percent from a year earlier. China imported 90.77 million tons of crude oil in the first half, a 0.3-percent Analysts said that there is no doubt growth year-on-year, according to General Administration of Customs. The country that China’s oil import will continue to imported 179 million tons of crude in 2008, up 9.6 percent from a year earlier. see rapid increase in the long term. Ac- China produced 93.49 million tons of crude in the first half, down 1 percent from cording to a recent report by Chinese a year earlier. The country processed 175.13 million tons of crude in the period, an in- Academy of Social Sciences (CASS), crease of 1.5 percent year-on-year, according to the National Development and Reform 64.5 percent of the country’s oil con- Commission (NDRC). sumption is likely to be met by imports Oil imports in the second half will see more solid growth, compared to the im- in 2020. ports in the second half of 2008 which declined sharply due to the global financial cri- The gap between domestic con- sis, said Lin Boqiang, director of the China Center for Energy Economics Research at sumption and production is the main Xiamen University. cause for the increase in imports. Statis- It is also important to note that oil imports have already seen month-on-month tics with CASS showed that China’s oil recovery, said Lin. China imported 17.09 million tons of crude oil in May, the high- production is expected to reach 177 to est this year. The figure saw year-on-year growth of 5.5 percent and month-on-month 198 million tons in 2010, and the figure growth of 5.7 percent. would reach 182 to 200 million tons in However, in the first quarter, China’s oil imports dropped by 10.2 percent from 2015. the same period last year. China’s oil production will see grad- “In my opinion, this year’s oil imports may see a 2-percent growth,” said Lin. ual decline after 2020, said CASS. He said that although China is paying increasing attention to oil reserves, it has a Analysts said that China should fur- small impact on oil imports, as the volume of oil reserves is relatively small. ther diversify its oil importing sources to Echoing Lin’s views, Liu Gu said the combined capacity of China’s strategic oil ensure sustainable supplies. At present reserves and domestic enterprises’ commercial reserves is only equal to 40 days of oil the Middle East, Africa and Asia-Pacific imports, so it would do little to oil imports in the full year. are the three main regions for Chinese oil Before 1993 China’s oil production was enough to meet domestic demands. imports. (ChinaDaily)

10 teel S Profit in China’s Ore imports in China set to slump at key ports

major steel makers Iron ore imports into one of China’s main ports are set to slump by up to 50 percent over the next few months in the wake of events surrounding the Rio Tinto affair, according expands in June to a leading official. The severe drop is the first real evidence of the impact of the inability of the China BEIJING, July 30 — steelmakers to reach an agreement over the benchmark ore price with the major iron ore Profit in China’s 71 major steel producers, led by Rio. “Chinese steel mills have since reduced orders from global miners enterprises totaled RMB 3.55 at annual negotiation price and turned to the rising international spot price for imports -- billion (US$519.77 million) which now stands 7 percent higher than the price Japanese and South Korean steelmakers in June, expanding from May settled for in May,” said Zang Dongsheng, vice-general manager at Rizhao Port Group. when the tables turned after China’s iron ore imports soared 46 percent from last June, reaching 55.29 million and seven-month losses, according up 3.4 percent over May, according to statistics released by China’s General Administra- to statistics from China’s steel tion of Customs. As a result, imports into Rizhao Port in Shandong province, China’s larg- association. est iron ore port which accounts for a fifth of all deliveries, are set to fall by 40 percent in This compared with a August and 50 percent in September compared to the average level in the first six months combined profit of RMB 1.04 of this year, according to information gathered by the port from its 68 steel mills, including billion in the 71 large and me- Baosteel Group and 30 steel trading customers. dium-sized steel mills in May. “Chinese steel mills started to reduce orders in May when the China Iron and Steel As- Their aggregate profit totaled sociation rejected the 33-percent cut (offered by miners) and held out for more discount,” RMB 1.73 billion in the first he said. “As the shipments to China will be two or three months delayed from Australia and half this year, said the latest Brazil, so the drop will be seen in August and September.” There is also evidence of the statistics released by the China Chinese steelmakers turning their back on Australian imports and switching to Brazilian Iron and Steel Association this ore instead. Zang said there now also seems to be a backlash against Rio iron ore imports week. Eight of the 71 compa- among China steel companies, with his customers opting to buy from Brazilian company nies were still losing money Vale instead. Last year, more than 30 percent of the port’s iron came from Australia and last month, compared with 20 around 40 percent from Brazil. in May. “Since the Rio Tinto scandal, customers have reduced their orders from Australia and Steel prices rose “at a are turning to Brazil. Although it is difficult now to quantify the precise figures, they will stunning rate”, said Xu Xi- be available in September,” he said. Zang said the wrangling over setting the price has im- angchun, analyst of Shanghai pacted the level of imports. “In the last 40 days, the spot price has increased by 20 percent Ganglian E-commerce Co., and it has become difficult to predict how much it will increase in August and September, Ltd., an IT service company but it may be by 20 percent again. This has affected volume,” he said. He also said Chinese specializing in collecting steelmakers were not buying as much because 100 million tons of ore stock had been built steel information. The price up at the steel mills and the port. increase of major steel pro- “This means the steel mills have three months’ supply and are not in a rush to buy ducers was the main reason right now,” he added. The saga began when the China Iron and Steel Association wanted a for climbing market prices major cut in the iron ore price, largely set by Rio, the Anglo-Australian giant BHP Billiton as there were no statistics and the Brazilian company Vale. A cut would have reflected the new harsher economic indicating a surge in demand conditions since the price was last set a year ago. Then the major producers managed to or supply shortage, Xu said. get away with an 85 percent increase since ore prices were soaring at the time. This year, Some 46 steel companies had Japan and South Korea settled for a 33-percent cut in the spring but China hung out for raised prices this month as more and didn’t get it. of July 29, according to sta- The dispute between China and Rio Tinto has now extended beyond mere price negoti- tistics of the Umetal.com, an ation. Earlier this month, four Rio Tinto executives were detained in China on alleged spy- industry service provider. The ing charges said to be linked to China steel production targets, which could have provided price of cold rolled coil in the useful information in any negotiation. Rio and the Australian government have denied any Beijing market has soared by wrongdoing. Zang said the slump in imports would have a significant impact on the port. “I RMB 500 per tonne since July, am concerned about the situation because delivery volumes directly affect the company’s and hot rolled coil by RMB revenue,” he said. The port chief added the group was taking steps to boost imports of coal 340, according to the statistics and other raw material to fill the void caused by a shortage of iron ore imports. from the IT service company. “We have been taking steps toward this since February. Coal has always been a ma- The per-tonne prices of medi- jor business for the port and this is a logical step for us to take because of the shortfall in um plates and screw steel also the iron ore business.” There may be other steps to move away from the dependence on saw an increase of RMB 250 iron ore, which could be announced shortly. Vale said about half its shipments to China and RMB 600 respectively. are being bought at the same price levels agreed in annual contracts with mills in other Share prices of Baosteel, the nations, Bloomberg said on July 28. Some Chinese steelmakers are unofficially accept- country’s largest steel maker, ing the new benchmark ore prices, which are 28 percent lower than last year, said a Vale gained 3.43 percent to RMB spokeswoman. 9.35 as of 2:05 p.m. July 20. Bloomberg also reported that BHP Billiton agreed to sell 30 percent of its iron ore un- Angang Steel Company Ltd. der new pricing mechanisms, signaling a break with the 40- year-old tradition of settling surged 4.37 percent to RMB annual contracts in Asia. The ore will be sold through a mix of cash, quarterly and indexed 17.2. (Xinhua) pricing, BHP said in a statement on Wednesday. (China Daily)

12 Beijing to invest 150 Gov’t channels 1 b-yuan green fund to rural areas

million for ecological Money from a RMB 1 billion (US$146 million) fund is being distributed to 1,370 nvironment villages in China to remedy environmental problems and reward good practices, said

E water conservation the Ministry of Environment Protection on July 29. The ministry expected the fund to benefit 9 million villagers, said Wang Zhenyu, Beijing Municipal Government an official with the ministry’s information office. is planning to invest RMB 150 mil- About RMB 920 million of the fund will be spent reducing pollution in 1,200 lion in Zhang Jiakou and Chengde villages, 70 percent of which are located in heavily-polluted river valleys and in less cities in Hebei Province to launch the developed regions, Wang said. cooperative “Beijing-Hebei shelter- For example, the ministry will provide money for villages near the Dahuofang belt construction project for ecologi- Reservoir in northeastern Liaoning Province to build waste disposal and sewage treat- cal water and forest conservation,” ment facilities. announced Beijing Municipal Com- Another program in Suzhou, eastern Jiangsu Province, will provide safe drinking mission for Development and Reform water for 90,000 residents living along the polluted Kuisui river. The money will be on July 28. used for building sewage treatment, waste disposal and toilet facilities. According to sources, invest- Another RMB 80 million will be granted to about 170 villages which have already ment in the “Beijing-Hebei shelterbelt made outstanding contributions in reducing pollution and protecting the environment. construction project for ecological Because of the programs, the ministry expected to attract another RMB 1.5 bil- water and forest conservation” in- lion in investment from local governments and other parties, Wang said. cludes: funding of RMB 100 million In an annual evaluation report for 2008 issued in June, the ministry warned of to build 200,000 mu of ecological worsening environment problems in rural areas. water sources and protective forest in “The countryside is suffering from more and more industrial and general pollu- Hebei Fengning, Luanping, Chicheng tion and the threat from polluted drinking water is increasing,” the report said. (Xinhua) and Huailai; funding of RMB 35 mil- lion, for equipment and infrastructure for forest fire prevention in 9 counties Gov’t to subsidize solar power projects including Hebei Fengning, Huailai and others; and funding of RMB 15 The Chinese government started a pilot program on Tuesday to provide subsidies million, for pest control facilities and to solar-power projects to boost the solar industry as a new growth point for the coun- equipment in 12 cities and counties try’s economy. including Hebei Sanhe, Zhuozhou, The Ministry of Finance said on its Web site that it will offer 50 percent of invest- Yutian and others. ments for solar power projects of more than 500 megawatts and the transmission and According to the plan, an 80,000 distribution network over the next two- to- three years. mu area of forest will be created un- The solar power projects in the remote regions will receive subsidies of 70 percent der the project in 2009. 60,000 mu of the investment. of forest will be created in 2010 and The total generating capacity of such pilot projects in each province should not 2011 respectively. exceed 20 megawatts, the ministry said. (Xinhua) On July 28, Beijing Municipal Bureau of Landscape and Forestry signed “the agreement on the Beijing- Energy saving starts with a light bulb Hebei shelterbelt construction project for ecological water and forest con- Five 1-yuan (0.14 U.S. dollars) light bulbs for everyone.... On the morning of Au- servation” with Hebei Zhang Jiakou gust 1, Beijing residents in many communities queued up to buy the energy-efficient and Chengde governments, which bulbs, which have a normal retail price of RMB 10. clearly specified the construction Last year, China promoted the use of 62 million energy saving bulbs nationwide. scale, standards and responsibilities This year, the government allocated RMB 600 million to meet the target of 120 mil- of both parties. lion. An official from Beijing Mu- The Beijing Municipal government cut another 40 percent off the original price, nicipal Bureau of Landscape and reducing each bulb to only RMB 1. Forestry said that, after the project is Since late June, the 1-yuan bulbs have been selling in many communities on implemented, the forest coverage in weekends. Every resident can buy five at the preferential price, and beyond that they the project area will increase from will cost RMB 7. 30.2 percent to 33.4 percent, in order According to the Beijing Municipal Commission of Development and Reform, the to lay a solid foundation for a com- city plans to promote 10 million energy saving bulbs.A 9-watt energy-efficient compact plete and coordinated Beijing-Hebei fluorescent tube equals a traditional 40-watt incandescent bulb in brightness. ecological forest system. In the mean- The National Development and Reform Commission (NDRC) estimates the bulbs time, a joint mechanism on forest pest will help save 6.2 billion kwh of electricity and cut carbon dioxide emissions by 6.2 prevention and management will be million tons and sulfur dioxide by 62,000 tons in a year. established in 12 cities and counties Statistics from the China Electricity Council and the Ministry of Industry and around Beijing, in order to ensure the Information Technology show that last year China consumed 3.42 trillion kwh of elec- security of forest resources in Beijing tricity and produced at least 1.1 million tons of sulfur dioxide in 2008. The figure for and Hebei. (CCTV.com) carbon dioxide exceeded 5 billion tons in 2007. (Xinhua)

14 Carrefour reopens its flagship shop Net profit in China’s major beer produc- in Urumqi er Yanjing up 25% in first half

ight I ndu s try Carrefour, the France-based supermarket chain, re- Net profit in the Beijing Yanjing Brewery

L opened its flagship store in Urumqi on July 23 after a 17-day Co., Ltd., a major Chinese beer brewery, in- closure forced by the July 5 violence. The retailer’s store in creased 25.05 percent to RMB 318.42 million the Urumqi International Grand Bazaar complex is regarded (US$46.62 million) in the first half this year, as the flagship of the three outlets in the city, capital of north- boosted by sales, the company said on July 28. west China’s Xinjiang Uygur Autonomous Region. Turnover during the Jan.-June period “We are well prepared for the reopening,” said Jerome soared 18.98 percent year on year to RMB Chevrier, general manager of Carrefour China’s north and 4.89 billion, the company said in its semian- west regions, in Urumqi on July 23. The other two stores nual report to the Shenzhen Stock Exchange. have remained open because they were far away from the “Beer production grew 14 percent to 2.21 mil- riot-affected areas. Plans to open two more stores in Xinjiang lion kiloliters in the first six months this year, were on track and the riot, which left 197 people dead, had higher than the industry average growth rate not affected the firm’s investment schemes, he said. of six percent,” it said. More than 100 customers were waiting outside before The company, holding more than 85 the store reopened at around 10:30 a.m.. They were from dif- percent of the Beijing market, saw its sales in ferent ethnic groups, including Han, Hui and Uygur. Security other cities rise by 17 percent. The company’s was tightened as 50 security guards, up from 36 before the three other brands, “Liquan,” “Huiquan” and “Xuelu” contributed July 5 riots, were on duty checking handbags and vehicles. to regional expansion together with the “Yanjing” brand, according Zhao Xiangli, manager of the store, told Xinhua that all to the report. The share price of the company gained 1.22 percent to the 170 employees in the flagship store, along with about 430 15.75 yuan in the morning session Tuesday. (Xinhua) in the other two outlets, were paid during the long closure. “None of them was fired during the closure,” she said. “It’s the first day we’ve opened since the riot and many China’ s sportswear brand Li-Ning opens people have not been informed of the news, so we don’t expect a large crowd today,” she said. Accordingly, she ex- flagship store in Singapore pected a smaller sales volume as well on Thursday, “About 100,000 to 150,000 yuan (14,646 to 21,961 U.S. dollars), or 200,000 yuan less than the average, but we have confidence in the recovery of our business,” she said. Although queues could be seen in the store, staff said they had seen an obvious decline in customers. The number of the cashiers was reduced to nine in the morning from 12 to 13 before the riot. Carrefour opened its first store in Urumqi in 2004 at the International Grand Bazaar, the largest outlet in the city. Ku Ping, a Uygur woman busy putting eggplants into her basket, said, “I used to visit the supermarket several times a week. I am glad to see it’s reopened. It was very in- convenient during the closure.” Yang Jingshun, 75, a Han, said, “I do not feel any danger since there are armed police patrolling in the grand bazaar.” Chevrier declined to discuss Carrefour’s lost trade during the closure or details of the two Singapore’s Minister of State for Trade and Industry Lee Yi planned stores. (Xinhua) Shyan officiated at the opening of Li-Ning’s badminton flagship store in Singapore, its first store in Asia outside China. The sportswear giant Li-Ning, founded by top China gymnast Li Ning, set up its Southeast Asia regional headquarters in Singa- pore’s newest shopping mall, Ion Orchard, according to a statement by Singapore’s Ministry of State for Trade and Industry. The min- ister said that over the last five years plus, the number of Chinese companies in Singapore has increased by more than two folds, from 1,300 to 3,000 in March 2009. He added that Singapore offers loca- tional and unparalleled access to the growing market for sports and lifestyle products and services in the region. In thanking Li-Ning for their sponsorship of the Singapore Badminton Association’s players and tournaments for 2009, he said, “We are happy that Li-Ning has chosen Singapore for the same rea- sons. Li-Ning’s confidence in Singapore as base for its first foreign venture is truly a testament to our strength as a platform for interna- tionalization.” (Xinhua)

16 T ouri s m

10 must-see streets in China

Those seeking to savor Chinese history and culture quickly now have a new traveling recipe, with China listing, for the first time, 10 must-see streets picked through public voting and a panel review by culture experts. Each of the 10 streets, including Guozijian Street in Beijing, South Avenue in Pingyao of Shanxi province, Central Avenue in Harbin and Barkhor Street in Lhasa, encapsulates a unique facet of China’s traditional culture. Guozijian Street, for example, is the only street in Beijing fea- turing ancient archways. Home to the Imperial College during the Yuan, Ming and Qing dynasties, it has also witnessed Chinese intel- lectual development over the past 1,000 years. South Street in Pingyao city lies at the heart of the exception- ally well-preserved traditional Han Chinese city, founded in the 14th century, and is a window to the city’s 700 years of history. Central Avenue in Harbin. The Central Avenue in Harbin, despite its relatively young his- tory dating back to the late 1900s, stands out from the rest for its eclectic mix built in,” says Ouyang. of various European architectures that have survived for more than a century. Other streets included in the list are Pingji- The 10 streets in the list were chosen from among more than 200 across ang Road in Suzhou, Jiangsu province; Tunxi the country. Old Street in Huangshan, Anhui province; Three The selection, jointly launched by the Chinese Ministry of Culture and Lanes and Seven Valleys in Fuzhou, Fujian prov- the State Administration of Cultural Relics, is aimed at raising public aware- ince; Qilou Old Street in Hainan’s Haikou and ness of the importance of preserving and promoting the cultural and historic two other streets in Shandong province - Bada- value of ancient streets, says Ouyang Jian of the Chinese Ministry of Culture. guan in Qingdao and Zhaode Street in Qingzhou. “Each of them has seen the history and development of the city they were (China Daily)

Beijing-Shanghai Express Railway ticket price set at RMB 500

The journey on the Ministry of Railways said that a final decision the Beijing-Shanghai on ticket price will be made after considering the Express Railway is price of a plane ticket, the acceptance of the gen- over four hours long. eral public and operation costs. After the railway “A journey on the Beijing-Shanghai Express starts operation in Railway will take just over four hours; there- 2012, railway authori- fore, business travelers used to flights are the ties will also consider railway’s target passengers,” said Ms Chen, who adding sleeper coach- travels regularly between Beijing and Shanghai. es in order to provide She welcomed the railway and said, “I often diverse choice for travel between Beijing and Shanghai on busi- passengers. ness. Sometimes, I can only sleep on the plane. On July 29, an So it is appealing to business people if the future officer from the gen- Beijing-Shanghai Express Railway trains are also eral headquarters of the Beijing-Shanghai Express Railway disclosed that after equipped with comfortable sleeper coaches.” preliminary considerations, the single seat ticket price on the Beijing-Shanghai Construction on the Beijing-Shanghai Express Railway will be set at over RMB 500, a “relatively reasonable” price. Express Railway started in April, 2008. This However, it still needs to be approved by the National Development and Re- double-track railway extends a total of 1,318 km form Commission (NDRC). from Beijing South Railway Station to Shanghai Construction of the entire railway is scheduled for completion by the end Hongqiao Station. It is the world’s longest single of 2010. By Labor Day 2011, rail tracks will be laid and system adjustments phase construction express rail project and is of will begin. The railway will begin operation in 2012. the highest standard. There are 21 stations along After the railway opens, they will be able to send out one train every the railway. In September last year, the Ministry five minutes on the Beijing-Shanghai Express Railway; however, such a high of Railways announced that the construction frequency is not possible in the beginning. The officer also said that railway will be completed by 2012. By then, trains on the authorities have considered developing diversified passenger transport services Beijing-Shanghai Express Railway will be able on the Beijing-Shanghai Express Railway, possibly adding sleeper coaches. to travel at speeds up to 380 km per hour, mak- Previously, an official from the transport authorities said in an interview ing the railway the world’s fastest. The journey that if calculated according to planned operation costs, the cost per kilometer between Beijing and Shanghai will also be short- of the railway would be RMB 0.45 to RMB 0.5; because the entire railway is ened to four-plus hours from the original five. 1,318 km long, a single journey would cost about RMB 800. An official from (cctv.com ) 17 A NCE

IN China Development Bank opens branch in HK Maintaining monetary F

The China Development Bank policy top (CDB) opened its first branch outside the mainland in Hong Kong on July 29 priority in Shanghai and will set up offices in Russia and Egypt by the end of the year as part of The Shanghai headquarters of its global expansion efforts. the central bank said it will stick to its “The strategic goal of CDB is relatively easy monetary policy in the to become an international bank,” Li second half to consolidate local eco- Jiping, Vice President of CDB, told nomic growth on July 30. a press conference after the opening The Shanghai headquarters of the ceremony, adding that opening HK People’s Bank of China held its mid- branch was the first step going global. year workshop in the city, outlining its He also said that through the priorities, with the maintenance of the Hong Kong platform provided by monetary policy top of the agenda. CDB’s HK branch, enterprises in the Chinese mainland could effectively go out to the “We will keep boosting the stable international market. and relatively fast growth of the econ- As part of its global expansion push, CDB plans to set up offices in Moscow and omy as the priority of financial macro- Cairo by the end of this year and in Brazil and Venezuela next year, said Li. measures,” the local headquarters of The China Development Bank was established in 1994 as a government policy- the central bank said. That was in line oriented statutory financial institution pursuant to a special decree issued by the State with the central government’s stance Council. On December 11, 2008, it was converted into a joint stock banking corporation, on the loose monetary policy to boost jointly owned by China’s Ministry of Finance and the Central Huijin Investment Com- economy rebound. pany Limited. (Xinhua) Banks in Shanghai extended new loans of RMB 383.12 billion (US$56.1 billion) in the first half, up RMB 198.17 billion from a year ago. The new loans in the first half are already Supervision on working capital loans RMB 126.85 billion more than the to- strengthened tal for last year. The new credit has fueled the A proposed banking regulation that allows China’s lenders to channel working capi- local economy which expanded 5.6 tal loans direct to recipients, avoiding the borrower, was opened to public submissions on percent on an annual basis in the first July 30. half, up 2.5 percentage points com- Members of the public have until August 26 to submit opinions on the proposed pared with the rate in the first quarter. regulation to the China Banking Regulatory Commission (CBRC) said a statement on the The growth, better than expect- commission’s website. ed, was mainly bolstered by a quick Working capital loans refer to the loans banks and financial institutions grant to advance in the services sector, par- enterprises and other organizations for routine business operations. They can be yuan- ticularly the financial industry. Mean- denominated or in foreign currency. while, the central bank will deepen The regulation would “regulate and enhance management of loan-extending activi- financial cooperation in the Yangtze ties of financial institutions, promote a sound working capital loans management mecha- River Delta region when building nism,” said the statement. Shanghai as a global financial hub. The regulation requires lenders to ensure the borrower’s credit and business opera- Shanghai joined hands with tions are sound before agreeing to the loan, and to monitor the use of loans to ensure they provinces of Jiangsu and Zhejiang in are spent according to the agreement. the first half to trim financial risks by If a single payment from the lenders amounted to more than 30 percent of the con- signing a memorandum of understand- tracted value and was above RMB 1 mil- ing. The central bank also takes im- lion (US$416,000), or if a single payment proving financial services to prepare value exceeded RMB 10 million, the for the World Expo 2010 as one of the lender could directly channel the loan to priorities on the second half agenda. the end-recipients. Banks will learn from their Previously, the money would be experiences during the Beijing given to the borrowers, who would de- Olympic Games. Banks in Shanghai cide its use. The lenders must undertake installed more payment machines, a thorough risk assessment, verifying a extended business hours, added for- borrower’s loans application documents. eign exchange currencies supply and “If a lender finds the borrower’s increased head counts to serve the in- credit standard is worsening, or the loans creased number of visitors during last have been misused, the lender can sus- year’s Olympics, and this is expected pend the loan extension,” said the state- to be the case next year. (Shanghai ment. (Xinhua) Daily)

18 I nve s tment

Venture capital market U.S. seeking additional avenues for investment vigorous in Q2 In the lead-up to the first China-U.S. Strategic and Economic Dialogue (SAED), the administration of U.S. President Barack Obama has said it will press Beijing to China’s venture capital market saw transform its domestic economic structure and open its doors wider to foreign invest- vigorous fund raising and investments in ment. the second quarter. The push is part of the U.S. reaction to the global economic crisis and comes 17 funds were established in the sec- as policy-makers and advisers search for solutions to the crisis from both inside and ond quarter, among which newly raised outside the country. funds available for investment in China’s In addition to pinning hopes on a nearly 800-billion-U.S. dollar stimulus package that will put the U.S. into the red for many years to come, top government officials and researchers have been putting pressure on other countries, primarily China, to make changes that will foster a recovery in the U.S., despite criticism that a fundamental crack in the loose U.S. financial system is what led to the crisis in the first place. “China has made some progress in transforming its economic growth model,” a senior administration official said. The official was speaking on condition of ano- nymity. The Chinese effort, he said, was “not intensive enough”, despite the fact that even before the crisis hit hard last year, China had set out to restructure its econ- omy by titling toward a consumption-driven and environment-friendly mode of development. Still, the official conceded that “from what it has done in the past few months, China has shown willingness in implementing policies that bring about (economic structural) adjustment.” U.S. officials have also urged China to open wider to foreign direct investment while defending the U.S. government’s barring of what it sees as “dubious” invest- ments in the U.S. by Chinese enterprises citing “national security.” Economic balance and trade will form only a part of the SAED dialogue. It will mainland totaled US$1.37 billion. include a wide range of other topics, including bilateral relations, regional security The number of new funds increased issues and climate change. by seven from the previous quarter, and U.S. officials said issues related to Iran, the Democratic People’s Republic of newly added capital increased by 53.8 per- Korea, Afghanistan and Pakistan will also be discussed when officials from the two cent. nations meet here in Washington. Zero2IP Group CEO Gavin Ni said China, for its part, is expected to demand that the U.S. stabilizes the value of the the country’s robust economic recovery, dollar so China’s vast dollar assets, now US$801.5 billion, would remain relatively pending initial public offerings (IPOs) and safe, according to a Ministry of Finance official who spoke during an earlier press new rules for listing on the Growth Enter- briefing in Beijing. prise Board (GEB) have attracted the posi- Given the tight schedule and weight of the topics, experts do not think substan- tive attention of investment institutions at tial results are likely from the high-profile dialogue. home and abroad. “I don’t think there is going to emerge out of this discussion any major an- In the second quarter, 99 Chinese en- nouncement of changes in policy,” said Steven Dunaway, adjunct senior fellow for terprises attracted venture capital invest- international economics at the Washington-based Council on Foreign Relations. ments, including 77 that reported invest- “If it’s successful, it will be successful by opening up lines of communication ments totaling US$567.89 million. and technical discussions, which hopefully will ... move things in the right direction,” The Zero2IPO report showed that Dunaway said. (China Daily) both the number and amount of investment deals rose quarter-on-quarter. The number of deals increased by 46, or 86.8 percent. The amount involved increased from US$319.68 million in the previous quarter to US$567.89 million. Five private equity (PE) funds avail- able for investment in China completed fund raising totaling US$1.82 billion, a three-fold increase from the first quarter. A total of 13 cross-border merger and acqui- sition (M&A) deals were completed in the second quarter, and 10 of them disclosed a total of US$4.31 billion. Compared with the same period last year, the number of cross-border M&A deals fell 40.9 percent, but the total M&A value jumped 178.5 percent. (Xinhua)

19 tion a China’s Spring Airlines gets green light for int’l expansion Cargoitalia operates

Spring Airlines, one of first flight China’s four major private car- riers, confirmed on July 30 Cargoitalia - Italy’s new all- r a n s port that the company was granted cargo carrier - has successfully T approval from the General Ad- performed its first commercial ministration of Civil Aviation flight since its re-formation under of China (CAAC) to operate new management and ownership. certain international air routes. The flight took place just three This makes Spring Airlines the days after the airline received its second private firm allowed by AOC. CAAC to explore the interna- The flight left Milan Mal- tional market. pensa on time on Saturday July Another private airline, 25th, bound for Hong Kong, car- East Star, based in central Chi- rying cargo on behalf of three ma- na’s Wuhan City, won the approval two years ago, but the company was ordered by CAAC to jor Italian forwarders. It returned suspend flights in March because of prolonged financial and management problems. to Milan with a technical stop at “We just got the approval. It still takes time to design specific routes, flight schedule and Almaty (Kazakhstan) on Monday pricing. International business is a new field for us. We still need to study CAAC’s regulation,” July 27th. said Wang Zhenghua, chairman of Spring Airlines. He said according to the approval, the Hong Kong has been chosen company can explore the air market on short-distance routes linking China’s mainland with as the airline’s second route, and Hong Kong, Macao and neighboring countries, like Japan, South Korea and Russia. will be operated from September Spring Airlines, found in 2005, became the third private airline in China, after Okay Air- using its second MD11SF aircraft, ways and United Eagle Airlines. It now has a fleet of 13 Airbus 320 passenger jets, flying on due for delivery within the next some 30 domestic air routes. few weeks. Says Commercial Wang said the company has aimed to boast a fleet of 100 planes by 2015. “To reach the Director Roberto Gilardoni: “Op- objective, we need huge a capital investment. The company is planning a stock listing on the erationally, the flight went per- Shanghai Stock Exchange next year,” he said. fectly. Commercially, we achieved Zhang Qi, an aviation industry analyst with the Dongfang Securities, said by entering the average 87% load factors both international market, Spring Airlines can expand its business by taking advantage of booming ways which is very gratifying, tourism between Chinese mainland and the neighboring regions. and an indication of the market’s Spring Airlines chairman Wang said the company aims to be a low-cost air carrier to pro- demand, enthusiasm and loyalty vide domestic passengers with more diversified choices on travel. “We will fill a niche market for an Italian-owned and operated rather than competing with big airlines,” he said. Spring Airlines’ report in the first half year service.” showed it handled 1.6 million passengers in the first six months, 40 percent more than the same He continues: “To have op- period of last year. Its revenue during the period rose by 20 percent to reach RMB 894 million erated our first flight so quickly (US$ 130 million). (www.chinaview.cn) and so successfully after a total re-launch is a major achievement given the enormous amount TNT opens operations centre in Ho Chi Minh City of preparations required, and thanks to the hard work and TNT, a provider of integrated express services, has officially opened its newly expanded determination of our own staff, and re-modelled International and Domestic Operations Centre in Ho Chi Minh City on July our contractors, our business 29. partners and the authorities. We Located next to Tan Son Nhat International Airport, the 3,000-square-metres facility is could not have asked for better said to feature state-of-the-art technology for freight processing, tracking and security. support.” “By modernising and expanding the country’s express and freight infrastructure, in tan- The new Cargoitalia is dem with the growth of Vietnam, TNT aims to take a key position in contributing to the sup- the result of amalgamating the port of important national trade and development goals,” a TNT statement said. original Cargoitalia (which sus- Mark van Den Assem, country managing director of TNT Vietnam, said: “With the pended operations in 2008) with existing International and Domestic Operations Centre in Hanoi that opened in August last the recently-purchased Alitalia year, TNT’s new Ho Chi Minh City International and Domestic Operations Centre possesses full cargo business. Cargoitalia’s advanced freight processing technology and is designed to support and further develop Viet- new owners are ALIS (Aerolinee nam’s potential by speeding up turnaround times, safety and reliability of goods. “The security Italiane S.p.A. - 66.7%) and Intesa features at this new hub are particularly important to ensure the safe transportation of high SanPaolo (33.3%). ALIS in turn value goods such as luxury garments, microchips and machine components.” is owned by the family of Chair- TNT’s new International and Domestic Operations Centre in Ho Chi Minh City is de- man and CEO Alcide Leali (62%), scribed by the company as being the only commercial express and freight hub in Vietnam with other private investors (8%), and in-house customs and a solid security system. The facility is said to possess the latest X-ray Ricerca S.p.A. (Benetton), Selin scanning machines, radio-frequency (RF) shipment tracking systems, automated weight and S.p.A. (van den Heuvel) and Ban- volume scanners, closed-circuit television (CCTV) surveillance, and alarm systems. This has ca Intermobiliare, each having earned the facility TAPA ‘A’ status. (www.schednet.com) 10% stakes. (Transportweekly) 20

pecial report S

China’s Overseas M&A in Global Economic Crisis Han Kang

verseas Merger and Acquisition (M&A) is not only scale overseas M&A. With the acquisition of oversea resource the major means for the enterprises to expand rapid- through purchasing the shares of existing mining companies ly and operate globally, but also the significant stra- for development, obtaining the mining right and managing tegic tools for acquiring advanced technology from independently, they could get stable resource supply for main- otherO companies and seizing the market and other resources. taining economic growth and strengthen China’s bargaining The sustaining growth of our economy provides an optimal en- power in the international energy market, and thus it is strate- vironment, while the breakout of the global financial crisis cre- gically important. ates opportunities for Chinese enterprises’ cross-border M&G. Second, it brings the opportunities for seizing the market. Recently, whether it is the Chinalco confronting setbacks in Against the backdrop of financial crisis, since many European investing Rio Tinto, Sichuan Tengzhong Heavy Industrial Ma- and American enterprises were plunged in hot water and felt chinery acquiring Hummer brand or two private companies difficult to run out, the barriers for M&A were largely reduced, intending to purchase Cardanro, all aroused wide concern. creating favorable timing for Chinese enterprises to open up Our foreign investment in the form of M&A, at a momen- the international market. The international market is increas- tum of a rapid growth, has risen from US$200 million in 2002 ingly significant for the enterprises in China. In order to ex- up to US$20.5 billion, accounting for 50% of the total foreign pand rapidly at a low cost in the unfamiliar overseas market, investment in the contemporary year. Among the involved Chinese enterprises must go global. One important access to industries, the resource and mechanic manufacturing are par- overseas market is cross-border M&A, which could help the ticularly outstanding. As the global financial crisis is turning companies save the time for establishing plants, quickly ac- into the crisis of the real economy, it brings opportunities for quire the ready production factors, completely gain the experi- the enterprises to conduct overseas M&A. The opportunities ence of the original enterprises and thus form forceful com- are as follows. petitive edge to seize the market shares in the host countries. First, it brings the opportunities for acquiring resources. Third, it brings opportunities for gaining new technolo- The resource industry is always the place with high-rate con- gies. The financial crisis has been evolving into an economic currency of M&A. Amid the global economic recession, the crisis on a deeper level ever since the second half of 2008. outer world is generally optimistic about China maintaining Trapped in financial difficulties, some European and American rapid growth due to which the production and consumption in technology leading companies were reduced to be the cheap China are both confronting huge shortage in energy supply. preys of M&A. The reason is that the nature of the economic Thus at the moment when the energy powers in Europe and crisis has changed-the crisis has spread from the financial sys- America fell into economic stagnation and the energy-process- tem to the real economy. As the real economy and the financial ing enterprises are impacted strongly, it is the good timing for system are as close as lips and teeth, so if the financial system Chinese energy enterprises to carry out M&A. Meanwhile, the collapses, the real corporate entities would suffer the “power- large-sized energy enterprises in China are all state-owned and down effect” and broken operation chain, which would provide capital abundant with the qualification of carrying out large Chinese enterprises with the opportunities for “activating

24 sale income and 90% of the profits. P&G focuses on innovation, with investments in this filed top US$2.2 billion. The ef- pecial report fective cost control provides P&G a high

S speed development. Transnational enter- prises still are important driving forces for global economic revitalization. Cooperation and win-win in multinational companies M&As Focus on Transnational M&A has a profound influence on international capital flow, Transnational Corporations and also to the process, structure and direc- tion of global industrial restructuring. Since 1990s, with the deepening eco- Global Economic Revival nomic globalization, transnational M&A Guo Yan has made a wave around the world. In 2007, among the US$1.833 trillion of ill now, there are 79,000 transnational enterprises and 790,000 foreign transnational investment, US$1.637 branches all over the world. Having a foreign direct investment totaled trillion were for M&A. In the past 30 US$15 trillion, these transnational enterprises take a share of 40% in years, transnational companies invested global production, 60% in trade, 70% in technology transfer and 90% in US$0.9 trillion in China, boosting local Tinternational direct investment. So, transnational enterprises are important driving economic growth. Domestic companies forces for global economic growth, their global operation strategies are boosting the criticized the M&A by foreign capitals, economic globalization, and their international investments are helping the economic as they may put national economy in globalization. Therefore, if the transnational enterprises can firstly overcome the eco- danger. Meanwhile, M&A of oversea nomic crisis, they will lead the recovery and revitalization of global economy. In the companies by Chinese enterprises often recent sub-forum of Think Tank Summit hosted in Beijing, high-level government of- face resistances. Wang Zhile, Director ficials, senior executives from transnational enterprises and well-known economists of Research Center of Ministry of Com- from home and abroad had discussions on transnational enterprises and global eco- merce and New Century Transnational nomic revival, global M&A and global industrial consolidation, transnational enter- Research Institute, commented that the prises and Chinese industrial revitalization, etc., under the theme of Cooperation and transnational M&A should be given a Responsibility of Transnational Corporation against the World Economic Crisis. On correct comment in the background of the closing ceremony, several leaders from Asia-Pacific chambers of commerce, in- economic globalization. We should pre- cluding Mainland China, Hong Kong China, Japan and South Korea, together drafted vent the protectionism and then boost Beijing Initiative, calling for against trade and investment protectionism. the transnational M&A and industrial re- vitalization. The financial crisis brings a Leading the recovery: transnational enterprises drive global economic new chance for global M&A and global revitalization industrial consolidation. In later 2008 and early 2009, cross-border direct investment and cross-border Vice Minister of Commerce, Jiang M&A showed global decline. According to the statistics from United Nations Con- Yaoping, said, since China entered WTO, ference on Trade and Development (UNCTD), in the first quarter of 2009, global China becomes opener, and the foreign cross-border direct investment decreased by 54% from a year ago, and global M&A capitals’ M&A in China is active, with down by 77%. Zhan Xiaoning, director of UNCTD Investment and Corporation De- more investments made in M&A. accord- partment, said: “Transnational M&A in 2009 is estimated to decrease by 60% or so, ing to the statistics, from 2004 to the end including those in developed countries down by 70%, and those in developing econo- of 2008, 4,883 cases for foreign capitals mies down by about 30%.” Zhang Xiaoqiang, vice director of National Development to merge and acquire Chinese companies and Reform Commission, pointed out that, to deal with the crisis, many countries were approved. And Chinese companies are facing increasing pressure from deficient after carrying out large-scale economic also begin to prefer M&A for oversea stimulus fiscal expenditures, leaving limited room for further expanding policies. So, investments. For example, Lenovo pur- the economic recovery will be more dependent on improving corporate confidence, chased the personal computer business of increasing transnational investments, and on the drive of transnational enterprises. IBM, and Changsha ZOOMLION Heavy Though the financial crisis affects transnational enterprises greatly, these com- Industry Science acquired CIF of Italy. panies advance most quickly, and they are the real important carriers for global eco- But compared with the global trend in nomic communication. Till now, they can and already have played the role of stabiliz- transnational M&A, Chinese companies ing the economy and dealing with the crisis. Meanwhile, many transnational compa- haven’t done many transnational M&As nies have adjusted their strategies, including regional strategy and business strategy. yet. During the five years from 2004 to In the future, the transnational enterprises will continue its positive influence to sus- 2008, the transnational M&As by Chinese tainable development. For example, CISCO is still carrying out the four-year US$16 enterprises only involved an amount of billion investment plan, and Novartis plans to construct the largest oversea R&D less than US$7 billion, and the amount for Center in China, with an investment of more than US$1.0 billion. Warner Gessler, M&A with companies in China takes less vice board chairman of P&G, introduced the four basic points to defeat the crisis, re- than 3% of the total foreign investments, ferring to outstanding brands, consumer value, innovation and focusing the costs and with the investment for each M&A project benefits. Among these brands of P&G, 44 brands contribute more than 85% of the averaged US$1.40 million, meaning that 26 the foreign M&A in China is still relatively of Commerce, the foreign-invested en- million people. lagged, but also meaning great potential. terprises in China totaled 670,000 till Whether the economy-stimulus May 2009, and the practical utilization of policies benefit foreign companies and Transnational companies and foreign capital reached US$889.5 billion, private companies raised everyone’s Chinese industrial revitalization which has become an important part of concern, and Siemens and Intel gave a The current financial crisis brings a Chinese economy. Till the end of last year, positive attitude, and they promised to never-seen-before opportunity for global the operational foreign capital companies make further investments to enjoy the companies, especially those Chinese com- totaled 290,000, taking no more than 3% favorite policies. To realize an economic panies. With a series of economy-stimulus of the whole. However, these companies recovery, many countries introduced policies, China keeps its attractiveness to contribute 29.7% of the total production measures of protectionism, like “Buy transnational enterprises, though invest- value, 21% of the tax (excluding customs American” policy in USA, but all these ments in other parts of the world decrease. tax and land fees), 55.3% of the import and policies treat products by local foreign- According to Department of Foreign export (80% of the high-tech products for invested enterprises as domestic-made Investment Administration of Ministry exports), while provide positions for 45 products, Mr. Wang Zhile stressed. Opinion: M&A in the governments’ eye Private companies’ success in M&A Zhang Xiaoqiang, vice director of National Develop- John Wan, CEO Assistant from Changsha Zoomlion ment and Reform Commission Heavy Industry Science & Technology Development Co., Ltd Since last November, China has had a foreign trade keeping on As a leading private company, Chang- declining for more than 8 months, with the foreign trade value in sha ZOOMLION Heavy Industry Sci- the first five months of 2009 decrease by 24.7% from a year ago. To ence purchased CIF of Italy, making stabilize foreign trade, we issued a series of policies, including lift- it the biggest M&A case in Chinese ing the export tax rebate rate, helping the financing of foreign trade engineering machinery industry. CIFA companies, and so on. Meanwhile, we extend the catalogue for en- (former CIF) had a sale income in the couraging industries in Midwest China for foreign investments. So, second quarter 50% higher than that in in this way, it is a good time for transnational companies to make the previous quarter and makes profits investments in Midwest now. Besides, the government will further since May, while many well-known manu- decentralize the authority of giving approval to foreign investments facturing companies in Europe stop production. and deepen the reform on administrative mechanism, to make in- In fact, the company has succeeded in a series of M&As since vestments more convenient. According to him, policies to full play 2003, including Puyuan in 2003 (the company had an operat- transnational companies’ role in economic revitalization include ex- ing income 7.5 times of that in 2003 and profit 96.9 times), panding the investments and the demand, meaning the government Hunan Sawing in 2003 (operating income and profit in 2008 will make more RMB 4 trillion investments, amounting to 13% up by 2.7 times and 5,6 times from those in 2003), and Zhong- of the GDP in China in 2008. And, the investments will follow the biaoshiye (cost RMB 127 million, but now contribute profits principle of open, fair and transparent, meaning the transnational of about RMB 200 million a year). companies will be given equal chances. The successful M&As of the company are attributed to the long time communication with the target before the deal and a deep understanding of the culture, R&D ability, sale and Experts: the investment is more active in later half of 2009 operation management, etc, which would make preparation for the integration. These successful experiences are what we Nung Chi Norman SZE, Managing should learn. And, with these successful M&A, Zoomlion is Partner Consulting of Deloitte China approaching its target of being one of the top five companies in The investments in later half of 2009 the world in engineering machinery industry. and 2010 may be active, though no better than that in 2007 and first half of 2008. Ac- cording to their survey and analysis, manu- Multinational enterprises favor Chinese market facturing industry and the related, resource Richard HAUSMANN, CEO Siemens North East Asia, related and finance, might have opportuni- President and CEO Siemens of China ties for investments, due to the IPO, the effect 4-trillion-RMB economy stimulus plan provides a good of 4-trillion-RMB investment plan and so on. The chance, especially for transnational enterprises, as they can be inland revenue ordinance for Chinese corporate M&A issued ear- helpful in dealing with urbanization, environmental protection, lier. It will be helpful to boost the M&A. He suggested that, facing aging population and other problems the Chinese government is current environment, companies are advised to make investments facing. We think that the focus of global economy will move to as follows: a). make a careful investigation to the culture of the Asia, especially China. China plays a strategic role to us, and we M&A target, and do communication and plans for the differences; are glad to see that the economy stimulating plan works, as it will b). make detailed M&A plan before the deal, and think about the help the economic recovery in China. Meanwhile transnational post M&A, and make sure the benefits of M&A show soon; c). companies like us can help to realize the economic recovery in communicate with all interest-related parties, the government, the China, especially this critical moment, as they are an important investor, partners, etc.; d). pressure testing. Cultural factors should part. This year we will make more investments amounting to be considered for an M&A. RMB 1.35 billion, mainly for energy equipments manufacturing.

27 oice V Chinese M&A, Opportunities & Risks Tang Jintao Recently, the cases of Chinese enterprises’ merger and These mergers and acquisitions of Chinese companies not acquisition are emerging in multitude. It is believed that M&A only bring flowers and applause, but also bring a lot of prob- will provide opportunities for China enterprises to go global lems that need to be solved. Another thing to be noted is the and act in the global economic environment. China enterprises operation after M&A and the value evaluation for M&A. also want high margin profits that are accessible in Western Lenovo acquisition IBM PC: Change is still continuing Europe and North America. Judging from the current situation, Acquirer: Lenovo Group many companies are not short of money, the banks can also Acquired: IBM PC branch provide a large-scale lending for Chinese companies’ overseas Acquisition time: 8th December, 2004 M&A. So, the overseas M&A is feasible in the current circum- Price: 1.75 billion U.S. dollars stance. . The situation of the integration : At the beginning, the integration is very successful but current ly the negative effects M & A integration, supporting the private enterprises of the M&A began to emerge which led to a loss of Lenovo in to go out 2008 to some extent. In November 2008, Lenovo handed in the After three decades of reform and opening up, China’s worst financial report since its takeover of IBM PC. Lenovo’s economy has become more open to the world. It is a very ex- profit was only US$23.3 millionU.S. dollars in the second quar- port-oriented economy. But there is an embarrassing situation ter in the fiscal year of 2008, a decrease of 78.1% compared that the Chinese enterprises are at the middle of the industrial with the same period last year. Meanwhile, the situation con- chain end in terms of the international division of labor. The tinues to deteriorate. On February 5, 2009, Lenovo announced upper end of the chain is the research and development, the its third quarter performance of 2008 had a net loss of US$97 middle of the chain is the processing and assembly and the low- million. At the same time, Lenovo sales is mainly placed in er end of the chain is sales. In the future, China must arrange China and it entered the market abroad too late. So it lacks the the industrial chains in a reasonable manner. The international ability to expand PC business. It must take pains to improve its financial crisis will reduce the cost , risk and the resistance for business in the increasingly shrinking market for commercial the acquisition, computers. It is worth mentioning that the Lenovo acquisi- The current wave of mergers and acquisitions is an es- tion of the initial integration IBM PC business is successful. sential phenomenon in the international financial crisis. In the Only for half a year, Lenovo had changed the situation that the long term, China’s economy faces one of the major challenges IBM’s PC branch suffering loss.. Nevertheless, in subsequent – environmental resources. We need master the pricing of re- days, it is not easy to handle the issues caused by regional and sources and the right to negotiate. With the developing of our cultural differences .after the M&A. economy, China must strengthen the huge foreign exchange re- M&A encourages Lenovo to focus on the field of commer- serves to ensure the security and the diversity of the exchange. cial computers such as the ThinkPad brand. In accordance with All in all, Chinese enterprises must go out. the original IBM design, ThinkPad specifically aims at the In the process of going out, many M&A failed due to their high-end business aircraft market. However, actually Lenovo state-owned enterprises background. So the government should ThinkPad strategy attracted low-end business users most, on give more support in terms of policy to encourage enterprises to and it enhanced sales performance in the short term with this go out. Not only the state-owned enterprises, but also the private strategy. Lenovo ThinkPad impaired the brand value and lost enterprises need the policies to facilitate the acquisition and its advantage in the high-end market. State securities did a sur- financing At present, the most important large-scale enterprises vey in Hong Kong and found that businessmen are less and less with matured management experience are all state-owned ones. favor of the ThinkPad as the business notebooks from 2007. Therefore, how to strengthen the private sectors is compelling. Lenovo considered more about the price competitiveness of For this issue not resolved, the cross-border M&A can use the products than concentrating on the use of differentiation strat- system in Hong Kong to look for financial support. egy to increase value-added products. Because of the financial Also, with the financial crisis, the commodity prices have crisis, the small and medium-sized business customers made fallen sharply and the Chinese must seize the favorable oppor- more cost-cutting, while Lenovo also lost its edge in the high- tunity to carry out the fundamental constructions. For example, end business, which has aggravated Lenovo crisis seriously. the Brent oil prices in July 2008 was US$ 145.39 per barrel, but All in all, China has a lot of merits itself such as the huge now it fell by about 70%; while London cooper declined from demand, the healthy financial system and lower commodity US$8,985/t to US$3,291/t in February this year. And the other prices. These advantages indicate that it’s the good opportu- major metals’ prices have also fell in a large scale. Though nity to conduct investment and procurement. This will help this sharp fall in commodity prices in China pose a threat to overseas enterprises to improve the financial situation of being business, it yet provides excellent opportunities for Chinese trapped and to buffer the worsening global economy; post- enterprises’ overseas acquisition. Overseas M&A at this time M&A operations are also needed to be concerned though. not only can solve the pressing problems, but it can also largely save the cost for Chinese enterprises’ acquisition. (Author: form China Asset Management Co., Ltd.) 30

CITY

Dunhuang, the Pearl on the Silk Road

he national, historical city of Dunhuang is a renowned tourist city famous for the Mogao Caves. It is situated in the common boundary of Gansu Province, Qinghai Province and Xinjiang Province, northwest China. Dunhuang, long ago referred to as “Sha Zhou” (beautiful desert oasis), was the hub of middleT and eastern silk routes in ancient times. The city landmark is an attractive statue, the idea of which comes from the mural in Mogao Caves, a shrine to the culture and arts of Dunhuang. Dunhuang City, a shiny pearl on the Silk Road, opens her arms to welcome tourists from all over the world. History The city was founded by Emperor Wudi of the Han dynasty in 111 BC at the cross roads of two trading routes on the Silk Road, and the name “Dunhuang”, meaning to “to flourish and prosper”, gives some indication of the town's prominence in ancient China. In ancient times, Dunhuang was the center of trade between China and its western neighbors. At that time, it was the most westerly frontier military garrison in China. With the flourishing of trade along the Silk Road, Dunhuang was prompted to become the most open area in international trade in Chinese history. It provided the only access westward for the Chinese Empire and eastward for western nationalities. 32 Attraction City, Echoing-Sand Mountain is the Today, as a reminder of this accumulation of years of sand in the historical area, we are left with the Mogao size of rice. Each time the wind blows, Caves, Yangguan Pass, Yumenguan Pass there is a sound from the mountain and and many wonderful Chinese poems when there is a breeze, the sound is like depicting the time. Although what musical instruments, hence the name. remains of the two Passes are crumbling The most marvelous experience is when walls, one can still experience the after climbing to the top, although quite atmosphere of that time while visiting in strenuous, one can slide down to the foot person. of the mountain, a wonderfully amusing ■ Mogao Caves experience! Located 25 kilometers southeast ■ Crescent Lake of Dunhuang, Mogao Caves is regarded Five kilometers southwest of as the premier Buddhist spot in China, Dunhuang, the Crescent Lake lies in perhaps in the whole world. It is a the arms of Echoing-Sand Mountain, UNESCO World Heritage Site filled with appearing clear and beautiful. The lake exquisite Buddhist art and manuscripts. is crescent-shaped, hence the name. It’s The artistic features of the treasured surrounded by quicksand. Although Buddhist murals represent perfectly the it’s quite windy sometimes, the lake artistic style of the Northern Wei (386- has never been covered by the sand. 543), Sui (581-618) and Tang (618-907) It’s really a marvelous spectacle in the dynasties through the combination of desert. the architecture, statues and murals in ■ Yangguan Pass the caves. Presently, there are about ten Located 70 kilometers (about 43.5 caves and two exhibition centers open miles) southwest of Dunhuang, the to the public, occasionally more during Yangguan Pass is the gateway to the public holidays. south western region on the way to the Although the city had an early Silk Road. The beacon tower is all that connection with Buddhism due to the remains of the Pass. Near the Yangguan passage of monks traveling the Silk Pass is Nanhu, a local grape producing Road, it was not until a monk had a area and Grape Gallery. Tourists can sit vision of a thousand Buddhas above on the stone benches, sample the sweet the desert at Dunhuang in 4th century grapes and wander through the gallery that the famous caves were excavated to learn about local folk-customs. and filled with the manuscripts and ■ Yumenguan Pass treasures. Situated 90 kilometers (about 55.9 Nearby is the White Horse Pagoda, miles) northwest of Dunhuang City, the Dunhuang, built by a monk from India in honor of Yumen Pass was an important gateway his horse, which died in the process of to the western region in ancient times. the Pearl on the Silk Road bringing the monk to China. It is not Yumen Pass, Hecang Town and Han possible to tour the caves on your own Great Wall (Han Dynasty), are the and all visitors are assigned to different major sights in this area. Since the guides (included in the ticket price). The Yangguan Pass and the Yumen Pass tour takes about three hours and only are a distance from Dunhuang, one can few of the many caves will be allowed to have a feel for the desolation of western visit. China. Yangguan Pass is relatively Travelers are not allowed to take closer to the city and a comparatively Tips cameras into the caves. And the staff smoother ride. here will divide people into groups, and Ticket for Mogao Cave in busy allocate one guide to each group. Nightlife season: RMB 160 Each guide is equipped with a The nightlife with obvious local microphone, and the group member could characteristics is colorful in Dunhuang hear his words from the headphones, City. However, there are not many successfully avoid other groups’ sparkling bars, discos or clubs, etc. interruption. but the night markets are the main Each cave inside has special attractions here. Tour in China, even the instrument to detect the amount of carbon world cannot miss these bustling, vibrant dioxide inside the, if too many tourists places in Dunhuang City. resulting in excessive concentrations of ■ Dunhuang Musicians and carbon dioxide, the cave will be closed Dancers immediately, and tour guides will lead on In ancient times, Dunhuang was to see another cave. a melting pot for both song and dance ■ Echoing-Sand Mountain of western and eastern cultures and Five kilometers south of Dunhuang developed a school all its own, the 33 CITY

Dunhuang Folk Musicians and Dancers. After the arrangement of the Feitian Song and Dance Group of the Dunhuang Hotel, the programs well represent the rich Dunhuang cultural atmosphere and takes you back to the scene of the prosperous Tang Dynasty (618-907). ■ Summer of Dunhuang This is a large song and dance performance with rich cultural references to the Silk Road, reflected in the ethnic art of song and dance. The performance, inspired by the content of murals in the Mogao Caves, portrays the dancing, finery and music of ethnic groups along the Silk Road. From June to October, tourists can experience these performances on the second floor of south building (Conference Center) of Dunhuang Hotel (Address: No. 14 in East Yangguan Rd.), from 20:00 to 21:10. ■ Dunhuang Night market - Shazhou Market It is an ideal place to learn about Dunhuang folk-customs and life. The market, divided into several areas, includes snacks, art ware, Sanpaotai (a kind of drinking vessel with a small plate, a cup and lid. Now the name of a special tea made with sugar candy, longan, Chinese date, medlar and currant.), Tea House area and a special ethnic products area etc. Tourists can browse at your leisure. There are also local opera street shows performed by amateurs - entertaining and fun. ■ With the long hours of daylight, tourists still have enough time to visit Echoing-Sand Mountain after supper. There are many entertainments and thrills for you to experience, including camel riding, climbing the mountain, sand sliding and parachute jumping. Eating around Located in Western China and bordering Xinjiang Province, Dunhuang’s cuisine is influenced much by the nomads, Grilled Mutton being the most popular dish in both restaurants and hotels in this vibrant city. The cultural taste of Dunhuang dining though is far deeper. They draw on four distinct catering styles: the Awe-inspiring Han Dynasty (206BC-220) (primarily barbecue based), the Atmospheric Tang Dynasty (618-907) (mouthwatering, aromatic and visual perfection), the modern New Wave of Dunhuang (stressed in the special appearance of the dishes), and the Various Snacks from Street vendors, local flavors that will satisfy any

34 Tips Three Treasures of Anxi - Suoyang Wine, Guazhou Melon and Shuangta Fish, are the source of Anxi dining culture. Tourists should try them; otherwise your Dunhuang trip can’t be called a complete one. tourists’ hunger pangs. Liang Pi of Xian. Shazhou Night Market on Yangguan ■ Apricot Peel Water East Road is the best place to try these It is a popular drink in Dunhuang local flavors, such as the well-known City, with a sweet and sour taste like Lanzhou Lamian. syrup of Plum. It is the cooled boiling The local snacks are also attractive; water of dry apricot, which is very here we have some recommended local refreshing, especially for tourists. flavors with simple introduction. ■ Fry Oil Cake Best time for visiting Stuffed sugar candy, rose-essence, Dunhuang City, situated in the walnut and sesame in an oil flour skin north of the Province is land locked, and that are rounded, and then fried. The surrounded by high mountains, its great cake tastes fragrant, sweet and crisp. distance from the moist sea breezes ■ Yellow Noodles helped form its arid continental climate. Tips It is a kind of Lamian (dough The annual average temperature is 9.3C The fluctuation in temperature stretched to form fine noodles). Yellow (48.74F), but ranges from 24.7C (76.46F) between day and night suggest Noodles look like golden threads, tastes in July to -9.3C (15.26F) in January. tourists should bring a warm, winter delicious and have a soft texture. They Dunhuang is fervent in summer and clothing for use in the morning can be added to soups, or mixed with bitterly cold in winter with precipitation and evening. Other essentials are cooked vegetable dishes, and being outstripped by evaporation. Winter is sunglasses, caps, sunscreen and savoury, makes a good appetitive. From bitingly cold season and is not suitable gauze-kerchiefs. The air here is the vivid painting in the Mogao Caves, for traveling. March to October is extremely dry in most of the time for we may know Lamian is a traditional suitable for visiting, with May to the frequent wind. Lip balm is thus food with long history. September offering the most clement highly recommended. It is necessary ■ Niang Pi Zi weather, especially for visiting the caves, to have enough water and fruits It is a kind of traditional popular as there are no lighting facilities inside every day here. fast food that is both a little spicy and but the sunshine perfuse the caves with vinegary. It is similar to the tasteful radiance at this time.C

35 NVESTMENT IINFO nvestment Projects in Western CHINA I Property Right Exchange Sector

I. Project Name it is planned to attract over 3 strategic III. Project Description Property Rights Exchange Project of investors to establish new company by Situated in Zongying Township, Yan’an Thermo-electric Plant capital increasing. The strategic investors Hantai District, Hanzhong City, Hanji- II. Project Implementation Agency must participate in the stock company by ang Tool Casting & Forging Plant, 13km Yan’an Thermo-electric Plant cash. All management income except the away from Hanzhong urban area, enjoys III. Project Description income of trademark will go to the new convenient traffic. Founded in 1966, it is Thermo-electric plant now has three company. a key enterprise in machine tool industry sets of 12 MW generation expansion of The new company insists the principle which is built during the period of the steam turbine, matched with four 75t/h that the registration address, owner and “3rd Five-year Plan”, belonging to the medium pressure coil boilers. The heat brand are not changed, ensuring the state Ministry of Electronics of China. It covers supply capacity is 2.2 million m2 and share occupying the first stockholder posi- an area of 359,000 m2, of which construc- annual generating capacity is 216 mil- tion. tion area for production is 50,000 m2 and lion KWH. It is planned to find partner to IV. Cooperation Form construction area for supporting facilities transfer the property right. The stock participation shall be done is 43,000 m2. It has more than 130 sets IV. Total Investment and Cooperation by cash and the financing volume is RMB of main equipment. The preliminary Form 1 billion. The recruitment shall be made designed capacity is: casting parts of Cooperation form: property rights in the form of “capital and stock increase 5,600 tons, forging parts of 540 tons and transfer, cooperation, sole investment, with premium” in public. According to nonferrous parts of 100 tons a year. The stock system or TOT. the value increase of wine and price- leading products focus on large scale Contact Person: Yu Yanyu earning ratio of the enterprise, premium precision casting and forging parts. The Telephone: 86-911-2312788, 15809110029 of each share is RMB 5. The ownership plant has the capability to produce all of trademark of “Xifeng” is left to Xifeng kinds of casting and forging parts as well I. Project Name Wine Plant of Shaanxi Province tempo- as nodular cast iron and special casting Assets Reorganization of Shaanxi rarily. The new company shall pay the us- and forging parts featuring antifric- Xifeng Wine Co., Ltd. age fee of trademark to the Xifeng Wine tion, heatproof and corrosion proof in II. Project Implementation Agency Plant. When the sales income reaches such specification as 6 meters long and The year of 1956 witnessed the foun- RMB 5 billion (including RMB 5 bil- 10 tons weight. Meanwhile, it also can dation of Shaanxi Xifeng Wine Plant. lion), the ownership of trademark shall be produce nonferrous alloys, copper-clad Combined with other social corporations, transferred to the new company with no covered iron and steel sheathed parts in- Shaanxi Xifeng Wine Co., Ltd was found- charge. layed with copper and forging steel parts ed in October 1999 with net operating Contact Person: Zhang Baoqian (Vice under 200kg and various high-precision assets of Xifeng Wine Plant as core. After General Manager), Zhang Zhouhu lapping plate and photosphere of friction half century’s effort, Xifeng Enterprise Telephone: 86-917-7421046 7421076 ball. Now, it has 650 workers, of which has become a large sized state-owned 13509178546 13992711551 87 are technicians. Now it is planned to enterprise, the largest national famous Fax: 86-917-7421100 seek for partner for cooperation in the wine manufacturer in Northwest Region Address: Liulin Township, Fengxiang cooperation form of merger, purchase, and one of the big enterprises of Shaanxi County, Shaanxi Province 721406 lease and investment, etc. province in tax contribution. Now, it has E-mail: [email protected] Contact Person: Jia Biqing a covered area of 502,000 m2, total assets Telephone: 86-916-20266001 of RMB 870 million and can produce over I. Project Name 50,000 tons of high quality wine a year. Industry Cooperation Project of Han- I. Project Name III. Project Description jiang Tool Casting & Forging Plant Stock System Reform Project of It is planned to create Xifeng enter- II. Project Implementation Agency Yan’an Changtai Pharmaceutical Co., Ltd prise group with RMB 10 billion by at- Hanzhong State-owned Assets Super- II. Project Implementation Agency tracting powerful investors through stock vision and Administration Commission, Yan’an Changtai Pharmaceutical Co., rights transfer and diversification. Now Shaanxi Province Ltd 36 conomy E What’s Behind the Hype of Decoupling?

Luo Yang, Xi Huajie

of business cycle fluctuations of the world ily by the financial crisis. The developing The meaning of decoupling as a whole. Theoretically, greater open- countries accounted for 45% of world out- “You either believe in decoupling ness to international trade and financial put at purchasing power parities in 2008 or globalization — but not both”, said flows should make economies more sensi- while their share was only 36% in 2000. Stephen Roach, an economist at Morgan tive to external shocks and increase co- And especially the share of the BRICs Stanley. AND “you can have both decou- movement in response to global fluctua- leapt sharply from 16% to 22% in such pling and globalization at the same time”, tions by widening the channels for these the same period. Totally speaking, almost said an article in The Economist. How dif- shocks and fluctuations to spill over across 60% of all the increase in world output fusing about the meaning of decoupling countries and become an international that occurred in 2000-2008 happened in especially in the context of international co-movement. That’s why the developing developing countries and half of it took finance crisis in which the developed countries can’t de-coup from their depen- place in the BRICs alone. countries can’t hold the world together dence on the developed countries but be According to IMF, advanced econo- while the developing riecountries play a coupled more heavily in the global econ- mies will contract 3.8% in 2009 while more increasing role in the arena of inter- omy and have the same business cycles emerging economies are expected to post national affairs! We can get a clearer look as developed countries. Many developing 1.6% growth this year. And in recent if we go back to see what happened in the countries, especially the BRICs (Brazil, months, many international investors are past thirty years. The global economic Russia, India and China), suffered heavily flocking to emerging markets, which have landscape has shifted dramatically since in the international crisis. Chinese exports beat those in developed countries by near- the mid-1980s. There are two phenomena in the first half of this year were 21.8% ly 50% in the past six months. All what which attracted our attention. First, with lower than they had been a year earlier. In happened have led to question about the the cost-downing and demand-increasing, Brazil, though GDP grew faster than the potency of developing countries de-coup there has been a rapid increase in interna- Latin American average, it fell slightly in from their dependence on the developed tional trade and financial linkages across the first quarter. Dragged down by plung- countries and the channels of the interna- national countries. Second, emerging ing oil prices last year, Russia’s economy tional channels of business cycle transmis- economies have increasingly become shrank by 9.5% in the first quarter, the sion from the industrial countries to devel- major players in the world and they now worst performance in the G20 after Japan. oping countries in a more academic way. account for about a quarter of world eco- Now, let’s go back to last fall when Generally speaking, these two seem- nomic output every year and a more major the collapse of Lehman Brothers which ingly conflicting views, decoupling or driver of global growth due to industrial once was one of the famous five invest- coupling of cross-border interdependence economies’ slowing economic develop- ment banks in the world. What happened and decoupling or globalization of the way ment. after collapse of Lehman Brothers, espe- of developing countries into the world. These important developments, cially the sharply down of international In other words, both have some concrete along with the imminent U.S. recession trade which hit the emerging markets data foundation and hold on in some way. and concerns about its international spill- heavily and the ensuing stock market But these views have very different policy over effects in the past two years as the crash of the world, seemed that decoupling implications for the evolution of global financial crisis deepening, have generated was dead and no one can de-coup itself economy and national economy, espe- a vigorous international debate about from the world in the context of deepen- cially for China under economic structure changes in the patterns of international ing globalization.Faced with the scandals upgrading and transformation from ex- business cycle co-movement whether the emerged in the current financial crisis, the porting-endriven economic development developing countries can de-coup from notion of decoupling suffered a severe set- to domestic-endriven development. In our their dependence on the developed coun- back. opinion, China can learn much more from tries and have their own economic models However, in recent years the impres- the debate of decoupling. and business cycles. That is the original sive economic growth of emerging market Policy implications for China: back source and definition of decoupling. economies, especially China or BRICs to basics and balancing Meanwhile, the conventional wis- as a whole in the past decades, seems to dom suggests that the forces of global- have been unaffected or less affected by Firstly, the logic and correctness of ization in recent decades have increased the economic ups-and-downs of a number coupling means that China may maintain cross-border economic interdependence of industrial countries in the past thirty strong economic growth as it did in the between industrial economies and devel- years, especially slowdown or recession of past thirty years only through much more oping countries and led to convergence American and European Union hit heav- openness to the outside world and more

38 E x c ha ng e

deepening-share from the comparative advantages in the international market. In other words, coupling means that the world as a whole, including emerging economies and industrial countries, can get make use of division of labor and resource endowment and so get a faster development. China and many other developing countries may get much more part with the vast gap of their economic development and their potentials under the context of globalization and stimulate specialization of production through the reallo- cation of capital in a manner consistent with comparative advantage. In past two years, the world suffered heavily from the financial crisis with the unprecedented economic slow- Real Spiritual Home down. Many countries, especially the industrial economies, hit by the crackdown of financial giants. With the sharp contractions in trade volumes evident in recent months, in Guangzhou some countries resort to trade protectionism. According to the World Bank’s monitoring list of trade and trade-related measures, the several countries, including 17 of the G 20, Alice Yang have implemented 47 measures whose effect is to restrict trade at the expense of other countries. And the trend in trade protection is up and the full effects recession have not y Spiritual Home is a best-seller book title of a Chi- yet been felt because of the prevalence of non-tariff border nese famous writer in late last century, Wang Xiaobo, measures, subsidies and contingent. But the coupling tells firstly published in 1997. Few years later, a group of us that those policies can’t make sense because of their people who insisted on realizing this dream gathered in beggar-thy-neighbor behaviors. So, China and many other Guangzhou, and built up a wonderland in their minds there. Through countries should work together to fight the trade protection- 9 years of efforts, they cheerfully launched their uneasy fruits into the ism to drive the world back to basics and the normal way. market: “Spiritual Home to Chinese Entrepreneurs” as they claimed to Secondly, decoupling has its own logic and specific be, in the form of real estate. implications for China. The theory of decoupling tells us On July 25, the long time consuming project, Yihe Summer Palace that emerging markets have decoupled from industrial Golf Chateau, was unveiled to the public at its birth place, by the beautiful economies, have their own developing characteristics and Nanhu Lake and Baiyun Mountain in Guangzhou, capital city of Guang- may be insulted from the global shocks. With the reforming dong province, the most vigorous region in southern China. Guangzhou and opening up for thirty years, China has achieved impres- Yihe Group, a local real estate developer but with more than 20 fully-in- sive economic progress and developed its own economic vested and holding enterprises, is the builder of the Chateau. Zhao Yong- model. shuang, its young vice president, also a typical Beijinger however served On one hand, China has its own economic fluctuation for Yihe for 8 years in Guangzhou, mentioned on the launching ceremony, and business cycles in the past thirty years, so the macro- “Demands for more classic and luxurious living style are notably growing economic polices of China should focus on its own prob- here, especially among the freshly-become rich. To realize their dream is lems and reforming. The main developing problem is the our dream.” The project launched 300 sets of villa in all, and according to unbalancing structure: the unbalance of economic structure, Zhao, 60 percent of them will be possessed and operated by Yihe Group the unbalance of eastern and western developing gap, the itself, and only 40 percent is for real transaction. unbalance of economic demand and environmental protec- Living in a peaceful place surrounded by a 171-hectare golf tion, and so on. Decoupling means that we should maintain course, 1.5 km2 lake water, and 15 km2 forest park, it seems like an the sustainable development through backing to basics and indeed ideal home for mental relax. However, it certainly only opens deepening our own reforming, especially carrying out the door to a very limited size of elites, who stand at the needle point of reforming of the government and economic monopoly. the top of Chinese society pyramid. A record of selling price of RMB On the other hand, the vast domestic demand and 200 million (about US$29.3 million) for one set of Yihe villa is surely great markets and huge developing potentials provide China a good proof. In fact, in the downtown of Guangzhou, the average much opportunity to decouple more and deeper from too housing price was RMB 9,676 (US$1,417) per square meter this June, heavily dependence on the demand of external demand and the highest since last December, which is already relatively high price to drive back to the balancing developing model of external in common wage-earners’ eyes. However, “compared with the villa and domestic demand. No one, except China, has such large price in Beijing, Shanghai, and Shenzhen, where has created a record under-developing markets. In the past two years, China of RMB 90,000 per square meter, our villa here is of reasonable price suffered heavily from its over-relying on the demand of in- and has more appreciation potential,” argued Zhao. dustrial economies. Decoupling tells us it’s wise for China Up to now, Guangzhou Yihe Group has successfully invested to focus on domestic development and economic structure and developed many tourism resorts in the cities of Guangzhou, Xi’an, as a means of boosting economic growth this year and in Shenyang, Yinchuan, Hainan, Baotou, Taishan and Kunming, cover- the future, especially through the great economic boosting ing the projects of deluxe residences, specialized hotels, golf facilities, program under way. and experimental kindergarten. The group is also one of the “Top 10 Most Potential Brand of Real Estate in Asia”, selected by Certification (The views expressed here are only those of the and Accreditation Administration of Asia Brand. authors. Authors: from Haikou Central Branch, Peo- In fact, Yihe Group is just one example of inspiring Guangdong ple’s Bank of China) real estate enterprises. In the first half of 2009, Guangdong witnessed

39 Ccpit ------41 Ambassador Szumski expressed his Ambassador uly 13, Wan Jifei met Mr. Szumski, the Pol the Szumski, Mr. met Jifei Wan 13, uly ish Ambassador, who is going to end his term and China. leave Wan Wan Jifei, the Chairman of CCPIT, said Mr. In the context of the financial crisis, Ambas thanks for CCPIT’s long-term and valuablehelp. And he stressed thatsupport the Polish Embassy in China will continue to cooperatein expanding withthe bilateral CCPITcooperation in economy and foreign trade. Ambassador have made tionstremendous to Sino-Poland contribu trade. of Chinese Asdomestic quiteenterprises a numberaboutstill Poland, know CCPITlittle work together with embassyPoland to China to actively promotein Poland’s vestment environment, and to encourage Chinese enterprises to invest inExpo willPoland. be a And great thechance Worldto get betterlet understandingmore Poland. of Chinese J sador Szumski reiterated the Government Poland of - the Polish Polish the Szumski, C 2009 National2009 Work Meeting C

he 2009 national work meeting for overseas economic and trade exhibition was held in Xining,with the theme centeringQinghai “Co-operation and Development Province, in the Crisis”. Nearly 250 representatives from over 150

Wan JifeiWan Met

Ambassador Szumski also uttered that the toughness Chinese of enterprise against strong financial crisis Pol impressed the Wang Wang Jinzhen, the Vice Chairman of CCPIT overviewed the As entered in 2009, the overseas expo industry suffered great

Guo Zanpeng, from the Foreign Affairs Ministry spoke highly the of work done by CCPIT under the national exhibition ap Combined with the current situation, Su Xiaoming, the director of Coordination Department from the State Intellectual

for Overseas Economic and Trade Exhibitions Held Exhibitions Trade and Economic Overseas for

expected more powerful enterprises to bid in Poland, as they are speeding up the infrastructure airport,speed highway, railway, construction port and etc. including the high- ish enterprises strongly, and coupled with the great potential market, Poland enterprises stronghold interests in cooperating with Chinese enterprises. general condition of Chinese expo financialoverseas crisis, and laidduring out various difficultiesthe the expoongoing industry is facing, such as the reducing number ofenterprises partici difficulties. The national exhibitionsquare meters in expothe firstarea half of 2009,15reached percent down compared195,000 with the same period of last squareyear,with meters the 191,200 in the secondbut half parts 2008. of For a slight growth compared of the exhibitions held in 2009, the scale was reduced about 20 per cent compared with 2008, even some with a big loss of 40 percent. toHow upgrade the expo industry and explore new resources is the current urgency. expo unites participated in the meeting. Property Bureau analyzed the importance intellectualexpo’s of propertyprotecting issue. intellectual property rights, and gave suggestions upon the overseas

pants, the recession of international expo, the increasingly fierce competition among organizingtrade obstacles.unites, and the newly-appeared proval andmanagement. T INDUSTRY 42 into a line and form a cluster and then then prosperity. and overall the realize cluster a form and line a into there ports these join step: by step area coastal of construction and development the boost will province the Liaoning, in Center Shipping pro Asia the Northeast around jected cluster industrial the Through Province. Liaoning in industrial clusters coastal of ability competing The background The T be workable. Inheriting and summing up up summing and Inheriting workable. be to proved and years, for way under has been plan revitalization The way. fective ef and economic most the is This areas. coastal the on an centering cluster industrial constructing at aims which 2007, out in carried was that Plan Revitalization Northeast the in included was idea This development. in-depth and all-round idea for an up point brought this Keqiang Li From view, of point. breaking a force and driving develop a The needs economy line. of ment one in the points taking five together, regions developed relatively five the Zhuanghe, and Jinzhou Yingkou, Dalian, Dandong, join to was Province at that time. And theLiaoning initialof Plan Secretary Party and State of Council Premier Li Vice by 2006, current in Keqiang, forward put firstly was FivePoints Liu Bin Liu The idea of the Development Plan Plan Development the of idea The — China, we need to improve the the improve to need we China, Northeastern in base the industry revitalize to and Liaoning ineconomytheopromote Decoding the Development Plan for Costal EconomicZoneinLiaoning Decoding theDevelopmentPlanforCostal in - - - economic zone coastal the and ports The govern Plan. Development the approve to ment central the for meanings great has It areas. coastal the in gathering tals capi foreign by funded industries with the open, more and and more getting is province improved, been has Liaoning in environment investment past the the decade, In country. whole the in even Northeast, in recovery the drive then and economy, global weak the against covery re the lead to government Province Liaoning wants central the that hope reflects the which zone, economic coastal and the for meaning special a has It logistics. manufacturing auto steel, and shipbuilding, iron chemistry, oil like tries indus those involves and “points”, five with line” “the along economy regional the covers government, central the from approval gained which Plan, velopment zone. economic of idea coastal an up brings Province, of Liaoning Governer Zhenggao, Chen plan, and revitalization the line” one in points “five of idea the ity to integrate the port resources in Liaon in resources the port to ity integrate shipping the possibil no is there of Port, To center. Dalian part is Port Yingkou as Plan, Construction Northeast Center Shipping Port’s Asia Dalian in included be should However, Port idea. hasn’tgot an Yingkou still Port Dalian that seems it Port, Yingkou to As Dandong. and Zhuanghe in invest further may Port Dalian former. the 21%of taking latter to the with shares Port, of Dalian placement direct make Port will Jinzhou and Port, Jinzhou of holds shares Port Dalian known, is As Jinzhou. and Dalian between cooperation the moted pro has government provincial the office, port of resources”.“integration SinceZhenggaoChentook to referring words,

The Coastal Economic Zone De Zone Economic Coastal The The Development Plan has remarkable remarkable has Plan Development The One-line Strategy ------add another 10 million tons of throughput. throughput. of tons million 10will another add Yingkou, near construction under is which Company, Power Huaneng year. per tons 50million than less of no throughput a Port Yingkou For bring will Yingkou. Ansteel example, around steel gather and iron of companies large- lot A these ships. ro-ro access scale to in able is Bayuquan now Yingkou as port, modern ized information deep-water, large-scale, to a ready be is Port Yingkou zone. projected its industrial through market, ofcapital the attentions on caught Port keeping Yingkou price rising. share the its in with hottest market, the became Port Yingkou out, came plan the After investment Portt. Yingkou in further and Port of development Xianrendao the on importance places great Province Liaoning in Zone nomic Dayaowan now role. play its fully not can Zone Bonded limitation, area Due the to Liaoning. in trade foreign of ment develop future the and depth, water tion, a as - condi Dalian natural its of view in in zone, bonded place ideal the is Island as Changxing small. too is Island, zone bonded the Changxing to Zone Bonded should move zone. Dayaowan Dalian trial indus an than center logistics a is Island Changxing opinion, my in But, there. den gar industrial an construct to invest will Dalian and island, the in down settled has Korean South of now, stx Till square kilometers. 100 than more of area an covers 200 of land area projected the an and kilometers, has square Plan. Island Development Changxing the in included is development the Islandthat of Changxing it. afford not can port the and for necessary not it is ports, other and dong Dan in investment further make not Port will Dalian financing. in problems great has it and Market, Share A in listed not is Port Dalian as Group, Port Dalian into ing Thirdly, the Industry Plan for Eco for Plan Industry the Thirdly, to attention paying of worthy is It ------INDUSTRY 44 Liaoning economic zone development the for step first the ports: six the of Integration O Lin Lin Economic Zone. Economic Coastal Liaoning of future the for exciting are these all etc., growth, economic tional na for engine” “forth the and mode zone” to line to “point line”, one in points “Five said, University, Liaoning of Economics of prexy Muxi, Lin inland Professor the economy.” replace to economy marine a manufacturing Liaoning,industryin bringing Liaoning equipment the to outlet marine a provide also but Base, Industrial only add new engine to the aged Northeast not Planning “The China. in base dustrial in leading the be to Liaoning used which in Province, industries infor other and trade, mation port, the for potential leaving great true, come will Zone Economic Coastal Liaoning for plan the and place, its have will strategy meaning line” one in points “five Council, State of meeting tive tainers for foreign trade. It is noticeable noticeable is It trade. foreign for tainers con of transportation in especially ago, year (10.4%)a tons 7.72from by million up 2009, in months five first the in tons 81.629 million and 2008, in tons million 185of throughput a had Group Port lian to determine. According hard to theis data,it Da as attention, of ports worthy be will between distance” “safe the and Port, Dalian exceed could Port Dandong and Port Yingkou Port. Dalian of nopoly mo the break would which symbiosis, of kind a is than it but more ports, be between M&A will integration sources the say Industry integration. the strategic boost will Planning The resources. port the optimizing and cluster industrial port developing by world outside the to up of opening pioneers and revitalization for Northeast engine the becoming at ing aim are coastline the along ports six the Planning, Development Zone Economic

As the top task for Liaoning Coastal Coastal Liaoning for task top the As basically passed in the execu the in was passed basically Planning) (the Planning Development Zone Coastal Economic Liaoning July, 1st n Cross-regional Coastal Economy: ------foreign trade represented by containers containers by represented trade for foreign cargo the meaning widened, be will ports between differences the Planning, Development the with that, said versity, Uni Maritime Dalian in Institute Re search Development Industry Maritime of of Dalian. that than higher percent 1.4 is rate growth and ago, year a of 11.8%from by up tons, throughput million a 72.64 had port the months, five first the In 2008. in tons 150million top throughput the with years, recent in development rapid a had has port, inland an Port, Yingkou Northeast, in openness Port’s expansion. of Dalian beginning the marks which Port, Jinzhou of holder share largest second the is Port Dalian Now placement. directional through lion bil 1.9 RMB of price a at Port Jinzhou of share 18.9% bought Port opera Dalian capital tion, of series a through that, Professor Wang Nuo, Subdecanal Subdecanal Nuo, Wang Professor the leads who Dalian from Different

Belt Economy - - - - - vitalization and economic cooperation in in cooperation economic and vitalization Re Northeast link and zone, economic integrated an into Rim as Bohai join will it meaning, strategic Economic great a has Zone Coastal Liaoning world, foreign the to eco opened is that zone coastal nomic latest the though that, points out University, Liaoning of nomics Center.” Shipping Northeast the shope together and Zone, Economic Liaoning for the engine take powerful ports two the can cooperation, through only But trade. foreign for cargos transporting in advantage overwhelming an has Port Dalian while transportation, oil and automobile for cost lowerlogistics a has Yingkou that out find we’ll cargos, strategic for costs logistics the calculating said:“Through Research of Economic tion Institu DMU from Liu Bin Professor ing. Liaon in ports other go to will cargo while bulk Port, Dalian in gather further will Professor Lin Muxi, prexy of Eco of prexy Muxi, Lin Professor - - - - - Auto Show boasts an annual production capacity of capacity production now annual It an boasts province. Zhejiang in specially China, eastern the in belt boom coastal the with along all Shanghai, and Luqiao, Ningbo, Linhai, in plants, manufacturing Geelypossessescurrentlyfourauto2003. in cars first its exported cessfully suc- and scooters), and motorcycles focused on was it that (before 1998 in car first its produced Geely manufacturers, aswitch?” do to for Geely time the this safety.Peoplewonder, “Is their for known of Volvo,tion best company car aSwedish acquisi overseas possible its to due cently re again people’slips on name popular a was It automobiles. high-quality making on focus its highlighting cars, of models its new 22 launched Shufu, founder, Li and chairman which, during 2009, hai G Yan Manman Daqian, Zhang 46 Geely safest, most energy-saving and environmentally-friendly. and energy-saving most safest, the are which cars good build to is goal new Geely’s service. great and quality high technology, advanced with cars on focus instead but cars, cheap manufacture longer As one of top Chinese automobile automobile Chinese top of one As Geely has moved into a new phase of development, which means that it will no no will it that means which development, of phase new a into moved has Geely the exhibition of Auto Shang Auto of exhibition the at April this spotlight the under was It headlines. the make to reasons of short never is eely Just MightSwitch 下 型 转 ，下一 个 利 吉 - - - enterprise.” an develop to way other is no there bases, these Without product.that ofandqualitynology tech the on based is turn in which product, its is enterprise an of “The foundation“The - Shufu. Trade answers, the get To eyes?Li’s in for performance future Geely’s blueprint the What’s switch? it if might use Geely will magic of kind What exception. no is transformation strategic current company’s the and crest wave, the the at of Geely his and Shufu Li put always has schools running or exporting manufacturing, R&D, in movement any ly-friendly”. environmental and energy-saving to most car” safest, the are which cars cheapest good “making the “building from transformation strategic the to Geely complete for years 10 taken only has it industry, the of manufacturing auto pattern domestic mainstream 3+6 part the as of itself established the has when now, company to line, production the off rolled Geely by developed pendently phase. next the into march to determination Shufu’s Li show moves business recent its from signs However, Geely. was for slogan a Car” once Cheapest the “Make fact, In models. Uliou or Merrie, ,like car, Haoqing, the Geely new brand a own and US$4,400) (around spend 30,000 RMB could only you market, in Chinese ago the years few A China. throughout brand well-known a become already has Geely market, the into launched it when transmissions. 200,000 and engines, 300,000 as well as cars, entire 300,000 Q: EMGRAND and SHANGHAI SHANGHAI and EMGRAND GLEAGLE, — sub-brands Geely’sthree Nonetheless, over the last 10 years, years, 10 last the over Nonetheless, inde car first the when 1998, From price low eye-catching its to Thanks saw 19 models of new car under under car new of we models 19 2009, saw Shanghai Auto At

exclusively interviewed Mr. Li Li Mr. interviewed exclusively China’sForeign - - ENGLON, and also witnessed a “New Geely” featuring a clas- has mastered sic and aristocratic style. Does it mean the end for the develop- the key pa- ment phase of Geely “making cheap cars that are affordable for rameters of common people”? And what’s Geely’s goal in the future? auto safet y, At the beginning, Geely took the economy car, namely comfort and A: the hatchback or sedan, with a price between RMB environmental 40,000 to RMB 70,000, as its spearheads. This strategy helped protection. Each Geely rapidly seize the domestic auto market, and broke the of them provide monopoly in the market. This also led to the fall of auto prices, a guarantee for which helped make many domestic families’ dreams of owning Geely to reach i t s a car come true far in advance. Geely at the beginning manu- design goals and t h u s factured simple and cheap cars, which was a necessary step become more com- petitive. for Geely to get a foothold in the auto manufacturing industry. Geely possesses all of t he ba sic However, in 2007, based on scientific demonstration and as- requirements for produc- i ng h ig h- end sessment, we found that Geely had moved into a new develop- cars so to speak. ment phase. That is to say, we reached a point where we would not focus on manufacturing cheap cars any more, but instead Now that energy-saving and environmentally friendly transform and build cars with high quality, advanced technol- Q:cars are the trend for future automotive development, ogy, and the best service. What plans does Geely have regarding fuel efficient and alter- We are aimed at producing the finest cars which are also native energy cars? the safest, most energy-saving and environmentally-friendly Geely has plans for both hybrid vehicles and electric in the world. This new plan stirred up hot debate, but was still A : vehicles. We have conducted research on hydrogen fuel fixed as Geely’s new mission. The setting of this new develop- cells and new types of engines, as well as studying new fuel ment goal was an important factor contributing to the great types, such as methanol and ethanol. All of these technolo- accomplishments that Geely had achieved in the last two years. gies are leading the world, and Geely has overcome many of Without a strategic transformation and the right mission, there the difficulties encountered by other businesses in the same wouldn’t be such high-level products or so many new achieve- field. Geely’s products are quite advanced, the concept car ments. Up to now, Geely has formed a clear plan for the de- displayed at Auto Shanghai 2009 has an interior area of only sign of its engines, transmissions and electronic instruments, 2.9 m2, but four people will still feel that it is spacious. It has including R&D for the whole car, providing a dynamic force only one door, so all passengers have to enter through this behind the production of all our cars and leading to Geely’s door. The car is quite beautiful and light, at only 350 kgs. In further development. addition, the steering wheel and the seats are all adjustable, so it can be operated from the left, right and the middle, ac- What advantages does Geely have to build such cars in commodating the different demands in different markets Q:terms of technology? around the world. Geely has engaged in the research of technology and A: developed new standards, and cultivated its talents for Geely has always been the target of public criticism in more than a decade. It has also accumulated large quantities Q:the Chinese auto industry, and the subject frequently of valuable fundamental data and built up other advantages debated is Geely’s imitation of other brands. Now, Geely’s through demonstrations and pilot tests. Geely has really taken new model, Geely Excellence (GE), has been called a “small pains to make great cars. After more than 10 years, Geely has Rolls-Royce” by the public. How do you feel about this formed a powerful R&D team. In August comment? 2004, Geely Hold- We asked for advice from customers, market circles and ing Group estab- A: experts before bringing the GE to birth, Currently the lished its own GE is just a sample car, and has not been finalized, so its pro- auto research in- file shall continue to be revised. The highlight of this car is not stitute through a its profile, but its performance and function instead, with the large investment, emphasis on how the car can take measures to minimize injury and invited Shen to the driver and others. Also, the GE is not just a vehicle, but Feng xie, Vice at the same time it is a medical instrument, having a positive President of Ko- effect to help minimize the effects of cervical and lumber spine rean Daewoo to diseases. For example, on a long distance journey, people will be the president. feel tired, and fatigued by riding in the car for such a long time, Now Geely al- in this circumstance there is actually real harm done to the ready has more cervical column and lumber area. The GE was designed with than 2,000 the concepts of safety, health, comfort and luxury to solve just engineers and this problem, among others. Some people may say the GE is large amounts not good enough because it is too similar to other foreign cars. of data on Actually, there were several designs under consideration, but I experiments, chose this one, considering it quite pretty. technol- Some people have said that independent R&D is the lifeline o g y a n d of domestic auto enterprises. Geely has known this point for a standards, long time; therefore, Geely has invested more in R&D to speed a n d G e e l y up the introduction of new products; at the same time, we at Gee- 47 Auto Show middle school school middle to go to have students , the l o o h c s o t g n i go just bridge those gaps. gaps. those bridge to enough be likely say, more, will or 10 years years, 5 maybe off, far be not will products high-tech of production the dled, han- well issue resource advance- human the the With technology. of ment as well as quality in improvement Geely’s for drive original the the become really has And Program Drive management. Original corporate Geely’s for model basic a into developed be gradually to intention our in is which gram, Pro- Drive Original the called program a launched has Geely Youknow, teacher. and student a both is one Every ployees. the world. So what was the significance of this overseas M&A? overseas this of significance the was world. what So the capabilities, technologies and manufacturing between Geely Geely countries. other in between counterparts its and manufacturing and technologies capabilities, R&D in gap current the of well understanding full as a them giving details as of importance the know employees the employees, our letting for opportunities training of kinds all provide to we want of all, First employees. of our training the on placed been has priority U.S., the and Europe of countries developed continued our need the in companies all gap. To the the with up keep narrow to efforts designs the and quality the capacity, R&D independent The countries. developed the in velopment A: A: Q: A: Q: capacity. R&D independent own our improve and technology high-end international the to geared be to order in abroad groups auto with cooperation our strengthened have ly into production. Though we only developed a four-speed four-speed a developed only we Though production. into fruit research the brought have we year this just and 2002, in beginning study a began Geely fruit. invested desired the million bear not 800 did RMB the disappointingly, But brakes. gearshift on research conduct to (SAIC) Corporation Industry Automobile Shanghai the for financing support to bonds ment govern issued government Chinese the 2000, In issue. importance this to great attached also imports. has on government 100% Chinese relying The previously were we brakes, shift gear manufacturing of constraints the namely problem, same how can it fill these gaps? these it fill how can 48 We are now providing auto-related training for all em- all for training auto-related providing now are We - the second largest transmission production company in in company production transmission largest second the company, DSI, Australian the acquired Geely March, This

nese cars, what kind of gaps does Geely need to fill? And And fill? to need Geely does of gaps kind what cars, nese Japa and cars American cars, European with Compared

catch up with the most advanced level of automotive de automotive oflevel advanced most the with up catch to go to way long a have still we that admit to have We

auto companies with an independent brand all face the the face all brand independent an Chinese with us. companies to auto importance great of is acquisition This transmission with small torque, the study laid laid study the torque, small with transmission the foundation for Geely’s acquisition of of acquisition Geely’s for foundation the DSI. Without the study on this simple simple this on study the Without DSI. four-speed transmission, we would would we transmission, four-speed dare not try and get acom get and try not dare four-speed transmission transmission four-speed This DSI. as such pany also means that Geely Geely that means also has its own com own its has ponent sys ponent tem. It is is It tem. e k i l ------is not so easy for the gearbox. gearbox. for the easy so not is it but simple, relatively is engines on R&D the comparison, in away. gone has Anyway, suffering the all DSI’s with products, now but gearbox, purchasing in lot a suffered Geely imports. on depend to have still would Geely otherwise, development; term Geely’slong for support pro product and have technical the vided technology, world-leading the moreover fac and these All tors, eight-speed. even and six-speed from and to large four-speed to small from transmission, the of torque the improving whole, the on production gearbox Geely’s expand help could DSI of acquisition The test. admissions the pass to have also they and universities, the to admitted are before they simply fall apart. apart. end. fall simply the in fall will it will top, the to you skyrocket to eager is acompany if Similarly, one-handed, up climb to wanting off, show you If individual. an of development the to similar is company a of development The others. over edge we the can gain direction right the in marching endeavors great with Only cut. short no is there and overnight, achieved be cannot company a of development The Geely goals. help strategic its will realize to innovate to capability our of improvement formulate the and oftalent can training and one cultivation The which action. for plans on strategy, right the have to tant others do internationally, only in this way can we grasp the the grasp we can way opportunities. this best in only internationally, do others what study then and first here should business own we our handle to is what do However, strategy. market expansion the our refine studying on and go will we and market, international the into expand to We seeking out of have China. been panding ex up given haven’t we Nonetheless, impact. a negative bringing severe markets, overseas on blow cri heavy a financial plummeted sis current The changes. the situation quickly economic how world and market overseas the of condition the on A: A: Q: A: Q: What plans does Geely have regarding the expansion to to expansion the regarding overseas markets? have Geely does plans and What approach this debate. much of subject the take still is target the be should should what enterprises our when But arrived. has markets these in bottom-fishing do to terprises en auto Chinese for time the that thought widely is it tries, der where all your confidence is derived from? derived is confidence your all where der so we won words, in your confidence full the Wefeel can

ket first. Expanding to the international market depends depends market international the to Expanding first. ket mar auto domestic China’s serve to have we all, Above

tion of strength, little by little. First of all, it is impor- is it all, of First little. by little strength, accumula of the tion from derived is confidence that think I development of the auto industries in western coun western in the industries auto frustrated the of heavily development has crisis financial the Since

------he 4th International Automotive Technology Exhibition Tianjing 2009, jointly hosted by the So- ciety of Automotive Engineers ofT China (SAE-China), China Automo- Technology tive Technology and Research Center Auto (CATRC) and Tianjin Economic-Tech- nological Development Area (TETD), is Exhibition in Tianjing to be held in Tianjin Binhai International Convention and Exhibition Center from August 27 to August 30 this year. In line with China’s national 11th Five-year Plan, The Automobile Industry Revital- ization and Adjustments Planning and The Equipment Manufacturing Revital- ization and Adjustments Planning, this Exhibition, centered on the theme of au- tomobile and equipment manufacturing, arranges the exhibition halls respectively for private autos, commercial autos and equipment manufacturing etc. The ex- hibition, combining the events of new- tech offering, insight to the industrial development trend, international trade, international capital cooperation and technological trade, will provide a com- prehensive platform for the international automobile companies, auto spare parts companies and equipment manufactur- ing companies to display their features Hustle and bustle auto shows give a boost to Chinese automobile industry. and make exchanges. Since the second half of 2008, the the fastest growth in the global automobile market. outbreak of the international financial Fu Yuwu, Secretary General of SAE-China remarked that the trend that China’s crisis caused great changes to the global economy develops well in long run was not changed. He said that with the 30 years de- automobile industry, giving rise to the velopment ever since the reform and the opening up, the automobile enterprises in China changes of industrial structure and have formed the risk resistance capacity to some extent, which along with the support product structure. The crisis expose the from the positive national policies, would further firm the confidence for the development Chinese automobile industry to risks, of Chinese automobile industry. This Exhibition, featured by new technologies, new ma- nonetheless, associated with it is also the terials and new techniques, based on the mighty automobile industrial cluster in Tianjin opportunities for the Chinese automo- Binhai New Area, is to create a trade platform for the global automobile manufacturers to bile industry to drive the upgrading and grasp the market opportunities and meet the new challenges. And it shall help to demon- optimization of its industrial structure, strate the strength of China’s automobile and equipment manufacturing capacity and fur- increase the companies’ strength and ther push forward the adjustment, revitalization and technological innovation of Chinese competitiveness and improve their inde- automobile industry. C pendent innovation capacity. In order to combat the financial crisis with stronger confidence, Chinese Government for- Other Events mulated The Automobile Industry Re- * 2009 Northeast Asia Automotive Industry Development Forum — Inter- vitalization and Adjustments Planning national Joint Venture & Cooperation Conference on Automotive Project and The Equipment Manufacturing Re- Organizers: Shenyang Municipal People’s Government, Management Com- vitalization and Adjustments Planning mittee of Shenyang-European Union Economic Development Zone, German Vogel as well as more than 10 other favorable Automotive Media Group polices to support the development of Host City: Shenyang, Liaoning province those industries. In the first four months Date: September 14, 2009 this year, the sales of automobiles in China was 3,831,900 with the output * 2009 Northeast Asia Automotive industry Development Forum — Inter- as 3,724,800 automobile, maintaining national Automotive Congress 2009 the momentum of stable development. Organizers: Shenyang Municipal People’s Government, German Vogel Auto- China, while speeding up its pace to the motive Media Group, FKA/IKA largest automobile production and sale Host City: Shenyang, Liaoning province country, has become the major growth Date: September 13-14, 2009 point of auto sales for the multinational Speakers: Selected from the German “The 18th Aachen Colloquium — Automobile automobile giants. Now China is the and Engine Technology”, which is going to be held on Oct.5-7, 2009, at Aachen. most important emerging market with 49 ROK Pavilion to get Finland Pavilion to provide sauna experience orld Expo glamour Finland Pavilion will include a

W 100-square-meter sauna, which is only Kim JeongKee, Consul Genenal open to the pavilion’s sponsors, while a of Republic of Korea in Shanghai, has detailed plan is in the works to introduce a recently introduced the features of typical Finnish sauna to the public, Pertti ROK Pavilion to media. The ROK Pa- Huitu, Finland’s commissioner general for vilion at World Expo 2010 will be its the Expo, has revealed. most expensive ever and is expected to It is the only pavilion that will have further lure visitors to the specialized sauna facilities at the 2010 Expo. Label- Expo 2012 in Yeosu, the Republic of ing Finland as a “sauna country” as the An artist’s rendition of the Finland Pavillion. Korea, according to the interview. The concept originated in the nation, Huitu on July 28 said his team is working on a plan that theme of Expo 2012 is “The Living would familiarize visitors with the sauna concept. The three-floor building “Kirnu” will Ocean and Coast.” be surrounded by a lake that appears to float on the water. It has the slogan “Sharing Inspi- ROK has taken part in 17 World ration.” The pavilion’s design was inspired by nature, Huitu said. Expos and specialized expositions Huitu said the shape of the exhibition hall on the second floor is unique and will “of- since the 1962 World Expo in Seattle, fer plenty of possibilities to surprise” visitors. According to the artist’s rendition of the Washington State, US. ROK has in- pavilion, the hall is circular-shaped, and Huitu mentioned that visitors won’t see the end creased its budget to 40 billion ROK of all the segments and the exhibition is a unit which can’t be divided into different parts. won (US$32 million) from original He said the exhibit will involve a lot of interaction, but declined to disclose details on the 29.6 billion won to offset the depreci- design or any highlight as he hoped to keep it “secret to the last minute.” ated value of won and keep the exhi- Finland is designing a comprehensive cultural program to promote Finnish music, bition’s high quality, Kim said. The especially the music for the younger generation of Expo 2010 visitors, Huitu said. On the country’s investment in World Expo list are jazz, opera, ballet, symphony, children’s drama and some classical types of music. 2010 Shanghai will be its biggest-ever A Shanghai company and a Finnish company have already been chosen to form a joint Expo investment as it hopes to lure venture responsible for the operation of the cafeteria, and their names will be announced visitors to its own 2012 extravaganza. in September, according to Huitu. Well-being, competence and the environment are the The ROK team also recently lifted three key words of the Finnish showcase. The piling and groundwork on the pavilion has its goal to attract 7 million visitors been completed, and construction will end in November. throughout the Expo Shanghai period from its original of 5 million, accord- ing to the report. Model of US Pavilion for Expo 2010 unveiled In addition to the ROK Pavilion, many companies from the country are Chinese Vice Premier Wang Qishan (fifth going to jointly build a ROK Corporate left), Chinese State Councilor Dai Bingguo Pavilion, one of the 17 corporate pa- (first left), US State Secretary Hillary Clinton vilions. The ROK Corporate Pavilion (fourth left) and US Treasury Secretary Timo- will cover an area of 3,000 square me- thy Geithner (first right) unveil the model of ters with more than 10 companies par- the US National Pavilion for the 2010 Shang- ticipating in the exhibition. The trade hai World Expo at the US State Department between China and ROK increased 26 in Washington, July 27, 2009. times since the two establish diplomat- ic ties and China has become the big- gest trade partner of ROK, said Kim. China has launched a large-scale ‘Peng Peng’ chosen as name of Australia’ s mascot economic stimulus plan, which has offered a good opportunity for ROK Chinese people have selected the name “Peng companies to expand further in the Peng” for Australia’s kookaburra mascot for World Chinese market, Kim added. Kim also Expo 2010 Shanghai. The name “Peng Peng” was said that the ROK Pavilion is the best announced as the winner on July 30 following a window for these ROK companies that two-month long competition. It is a very suitable want to catch that opportunity. name for the mascot, said Peter Tesch, the com- missioner-general for the Australia Pavilion. “The character Peng evokes a sentiment of glory and ambition in Chinese and is indicative of our desire for a successful Expo. The name Peng Peng also means friendship and as such conveys the deep people to people and business links that exist between Australia and China.” Peng is a distinctly Chinese name dating back to a mythological bird in Xiao Yao You, a literary work by Zhuangzi, who is an influential Chinese philosopher. Tesch be- lieved Peng is particularly apt as the kookaburra is a native Australian bird.” The compe- An artist’s rendition of ROK Pavillion. tition received more than 2,800 entries. 50 Fairs Email: Fax: Tel: Liaoning, China, 110014 Shenyang,Avenue,District, QingnianShenhe Add: Commerce of Chamber International nyang She Sub-council; ShenyangTrade International Organizer: Shenyang of Trade; Government People’s tional Host: Web: etc products, green and products agricultural food, jewelry, gifts, and and kitchenequipment, householdaccessories goods, materials building tools, hardware pliances, ap home and information electronic parts, and Exhibits: Venue: 2007 Event: First the Year of Frequency: Date: Expo Imports (Shenyang) Asia Northeast 3rdChina The I Email: Fax: Tel: Organizer: Ltd., HongKong Promotion China Corp.; Group Exhibition International China Corp.; 1/E Aero-Technology National Trade;China tional Interna of Promotion the for Council China pany; Com Holding Supplies Aviation China Ltd, China of Corporation Aircraft II,Commercial Corp. tion Host: Web: Venue: Frequency: Date: China Expo Aviation 2009 The Aviation, Spaceflight ChinaFairs &Expos 52 nvestment and Trade and nvestment 86-24-22729975 86-10-87730641 86-24-22729975 86-10-87730640 www.beijingaviation.com September, 2009 September, 2009 26, 23-September September 4F, International Trade Buildin, No.35 China Council for the Promotion of Interna Avia China Corp.I, Industry Aviation China www.northeastasiafair.cn

[email protected] [email protected] Liaoning Industrial Exhibition Center Exhibition Industrial Liaoning Center China Exhibition International mechanic equipment, small vehicles small equipment, mechanic China Promotion Ltd., Hong Kong Ltd., Hong Promotion China China Council for the Promotion of of Promotion the for Council China Yearly Biennially m ------Contact Person: Email: Fax: Tel: 510014 China, Guangdong, Address: hibition Corporation Organizer: Host: Web: Exhibits: Comlpex Exhibition Fair Venue: 2008 September, Event: First the Year of Frequency: Date: Exhibition Textile Products, Decoration Home International Guangzhou China Decorations Floor Woodwork Furniture, Household Decorations, Contact Person: Tel: China Beijing, Haidian, No.13, Road, Plaza, Sanlihe Address: Commerce of Ministry of Agency motion Pro Investment Xiamen, of Government People’s Organizer: Host: Website: steel etc. structure, structure, wood structure, building type new product, and technology planning, landscape and environment technology,protectionenvironment and logical eco keeping,temperature building equipment, Exhibits: Center Exhibition and Venue: 1997 Event: First the Year of Frequency: Date: Trade and for Investment Fair International China 13th The Xiamen 2009 86-20-26080413 86-10-68311370 86-20-86663416-01/866816291-01

September, 2009 September, 11, 2009 8-September September China Foreign Trade Center Group Trade Center Foreign China Commerce of Ministry www.hhc.fairwindow.com [email protected] China Xiamen International Conference Conference International Xiamen China China Import and Export Commodities Commodities Export and Import China home decoration products, textile exhibition textile products, decoration home

F4, F6, China Architecture Culture Center Center Culture Architecture China F4, F6, Construction accessory energy saving energy accessory Construction www.gzshunya.com No.117, LiuhuaRoad,Guangzhou, China Foreign Trade Guangzhou Ex Guangzhou Trade Foreign China Yearly Yearly People’s Government of Fujian, Liu Jun Liu Zhang Tiejun Zhang - - - Tel: 430022 China, Hubei, Wuhan, Contact Person: Email: Fax: Tel: 519020 China, dong, Guang Zhuhai, Road, Shuiwan Gongbei Tower, Address: Organizer: Sub-Council Trade Zhuhai tional Host: products services information and consulting industry accessory other and parts, equipment, output print various consumables, copying and ing print of products renewable and consumables, compatible various copy other and toner ex tube, wheel, posure fixing consumables, print paper, tape, Exhibits: Center Exhibition Venue: 2007 Event: First the Year of Frequency: Date: Expo Consumables Print International (Zhuhai) China publication and Printing Paper, Packaging, Add: Bureau Tourism Organizer: Bureau Commerce Municipal Host: etc planning, in area develop developer,resourcestourism tourism park, theme Exhibits: Center bition Venue: Date: Tourism Expo International Wuhan 2009 Tourism Catering, Hotel, Email: Organizer: Host: machinery &instruments tools accessories, nents, Exhibits: Center Venue: Date: Watch Kong Hong Fair &Clock HKTDC Glasses Clocks, and Watches Jewelry, 86-27-59501677 86-756-8280626 86-756-8280888 Rm 3216, Wuhan Plaza, Jiefang Avenue, Avenue, Jiefang Plaza, Wuhan 3216, Rm September, 2009 September, September 5-September 7, 2009 5-September September 2009 6, 2-September September China Council for the Promotion of Interna Hong Kong Trade Development Council Trade Kong Development Hong Wuhan Municipal Tourism Bureau; Wuhan Bureau; Tourism Municipal Wuhan [email protected]

k [email protected] China International Aviation & Spaceflight Spaceflight & Aviation International China Wuhan International Convention and Exhi and Convention International Wuhan Hong Kong Convention and Exhibition Exhibition and Convention Kong Hong complete watches & clocks, part& compo cardigan, ink, cartridge, toner, carbon carbon toner, cartridge, ink, cardigan, tourism bureau, scenery site, resorts, resorts, site, scenery bureau, tourism Rm 1608, Building 16, Development Development 16, Building 1608, Rm Zhuhai Zaisheng Shidai Culture Co., Ltd Ltd Co., Culture Shidai Zaisheng Zhuhai Hong Kong Trade Development Council Council Trade Development Kong Hong Wuhan Jianghan District Commercial Commercial District Jianghan Wuhan Yearly Zheng Senhong Zheng ------Fax: 86-27-59501676 China International Sweet and Leisure Tel: 86-531-82075636 Email: [email protected] Food Production Technology Exhibition Fax: 86-531-82075627 Contact Person: Chen Bei, Qian Xueli Date: September 2-September 4, 2009 Email: [email protected] Frequency: Yearly Contact Person: Yuan Weilin Year of the First Event: 2007 Venue: Shanghai New International Expo Center Exhibits: Sweet and leisure food industry, food production technology and service Web: www.sweetsnacktecchina.com/www.sweet- snacktecchina.cn Host: Koelnmesse Co., Ltd Add: 1202, South Building, Hong Kong Plaza, 283 Huainanzhong Rd, Shanghai, China, 200021 Tel: 86-21-63906161 Fax: 86-21-63906858 Email: [email protected] 2009 Wuhan International Tourism Expo Contact Person: Miao Jun Date: September 10-September 14, 2009 Frequency: Yearly China (Ningxia) International Festival Machinery and Technology Year of the First Event: 1995 for Halal Food/Muslim Commodities & Venue: Wuhan International Convention and Exhi- Ningxia Investment and Trade Fair 2009 China Weihai Manufacturing bition Center Date: September 10-Septermber 13, 2009 Machinery and Technology Expo Exhibits: whole vehicle, passenger vehicle, com- Frequency: Yearly Date: September, 2009 mercial purpose vehicle, special purpose vehicle, Year of the First Event: 2006 Frequency: Yearly auto parts, auto accessories, auto repair and Venue: Yinchuan International Convention Center Year of the First Event: 2006 testing equipment, auto manufacture equipment, Exhibits: Halal food, Muslim commodities, cash- Venue: Weihai International Exhibition Center technology and tools, etc mere, West China featured agriculture, investment, Host: People’s Government of Weihai Web: www.autowuhan.com.cn trade negotiation, etc Add: No.1978, Yuqiao Rd, Pudong, Shanghai, China Host: China Machinery Industry Federation, China Host: The People’s Government of Ningxia Hui Tel: 86-21-68939833 Council for the Promotion of International Trade, Autonomous Region Fax: 86-21-68931483 People’s Government Add: No.363, Jiefang West Street, Yinchuan, Contact Person: Wang Nan Organizer: Wuhan Jianghan District Commercial Ningxia, China, 750001 Tourism Bureau Tel: 86-951-5066703 China International Hardware Show Add: Rm 3216, Wuhan Plaza, Jiefang Avenue, Fax: 86-951-5066703 Date: September 16-September 18, 2009 Wuhan, Hubei, China, 430022 Frequency: Yearly Tel: 86-27-59501677 Year of the First Event: 2001 Fax: 86-27-59501676 Venue: Shanghai New International Expo Center Email: [email protected] Exhibits: tool hardware, construction hardware, Contact Person: Chen Bei, Qian Xueli DIY home decoration, locks, security equipment and accessories, kitchen and bathroom supplies Web: cihs.com.cn Food and Additives, Beverage, Host: China National Hardware Association, Drinks, Seasonings, Dairy Koelnmesse GmbH Products Organizer: Beijing Shirui Exhibition Co., Ltd; The 2009 China (Qinghai) International Sahnghai Continental Development Co., Ltd Halal Food & Products Fair Add: 1018, Building 2 Landmark, 8 Dongsanhuan Date: August 6-August 9, 2009 North Rd, Beijing, China, 100004 Frequency: Yearly Tel: 86-10-65907766-736 Year of the First Event: 2007 Fax: 86-10-65906139 Venue: Qinghai Chengnan International Exhibition Auto, Auto Parts Email: [email protected] Center China Shandong Jinan The 4th Green Contact Person: Chen Han Exhibits: Halal fresh food, halal fst-frozen food Industry Expo Web: www.halalfair.com Date: September, 2009 Host: People’s Government of Qinghai Province, Frequency: Yearly China Council for the Promotion of International Trade Year of the First Event: 2009 Organizer: China Council for the Promotion of Venue: Jinan International Convention Center International Trade Qinghai Sub-Council, MEDIA Exhibits: long vehicles, modified cars, special and press Center of China Council for the Promo- vehicles, vehicle spare parts and supplies, vehicle tion of International Trade maintenance and conservation, etc Add: 5th floor of Zhenghua Building, No.220, Host: China Council for the Promotion of Inter- South Binhe Rd., Xining, Qinghai, China No.363, national Trade, China Association of Automobile Jiefang West Street, Yinchuan, Ningxia, Qinghai, Manufacturers, People’s Government of Jinan, China, 810001 Shandong Automotive Industry Association Tel: 86-10-88075391 Organizer: China Council for the Promotion of Fax: 86-10-68023790 International Trade Jinan Sub-Council Email: [email protected] Add: 182, Daweier Rd, Jinan, Shandong, China, Contact Person: Li Wenming 250001

53 Wine Dynasty, Country of Poetry, for the Chinese Style, Proud of the Oriental

Sino-French Joint-Venture Dynasty Winery Ltd. 中法合营王朝葡萄酿酒有限公司 Wangchao Seven-year Aged Dry Red Wine Wangchao Seven-year Aged Dry Red Wine is made from the quality world-known wine grape— CABERNET SAUVIGNON produced in Tianjin China. And it is well brewed with the traditional brewing technique. Wangchao Seven-year Aged Dry Red is green and pure natural food, with the fragrance of grape berries and oak barrels. Wangchao’s uniqueness is the combination of traditional brewing technique and the famous wine grapes nurtured in the favorable soil and climate conditions in the south of Yanshan Mountains.

Wangchao Seven-year Aged Dry White Wine Wangchao Seven-year Aged Dry White Wine is made from the quality world-known wine grape-- CHARDONNAY produced in Tianjin China. And it is well brewed with the traditional brewing technique, aging more than 2 years in the oak barrels and finally becoming the final product after years of storage in bottles. The characteristics of this wine are pleasant fragrance, mellow flavor and unique style.

Wangchao Barrel-Aged Dry Red Wine A kind of aging wine with Wangchao’s unique style, is made from the fermented pure grape juice which is aged in the oak barrels for more than two years. Wangchao Wine retained various health-promoted amino acids and vitamins contained in the grapes and some other nutritious factors rare found in other food, and in particular, the content of resveratrol is relatively high. And according to the study of the medical experts at home and abroad, resveratrol has effects in preventing cancer and curing cardiovascular diseases. With the precious brand of wine grapes grown in the endowed soil and climate-wise conditions in the east of Helan Mountain, Wangchao Dry Red is brewed with the world-leading brewing technique in the advanced brewing equipment. The process of peduncle removing and smashing, soakage and fermenting, aging in oak barrels and hoarding at low temperature retains and enhances the nutrition, fragrant materials and beautiful color of the grapes. Wangchao Wine, with its aroma of elegant brand, palateful bouquet, pleasant blending fragrance, soft and refined flavor as well as the delightful lingering aftertaste, shapes its own distinct style, a perfect combination of China’s terrain features and world advanced brewing technique. This wine is table wine and it is best to accompany this wine to the barbecue or fried meat with the optimal temperature for drink as 16-18℃. Wangchao Merlot Dry Red Wine The gorgeous and graceful superexcellent wine—it does not just exist in the legend, it exists here— Wangchao Merlot Dry Red. This wine is made from the precious grape variety Merlot. With silky tannins and full body, this wine is brimming with the fruit fragrance of ripe plums, red cherries and black currants. Through the aging in the barrels and long time hoarding, the wine gives off the aroma of cinnamon, lilac, cocoa and coffee beans. When you drink the wine, you will feel the sweetness and mellowness, which shall tell you what is miracle. The Merlot Wine, with much value for collection, could be matched with the French Lafite. It is a new miracle in the brewery, creating a different luxury in style and taste. 王朝全体员工热烈祝贺祖国60华诞 ase S tudy C Feel Pressure Under China’s Anti-monopoly Law? Luo Kaitian, Li Wenpei

fter 14 years of debate, the legis- prohibition of abuse of a dominant position; is still considered as one of most important lature passed the Anti-monopoly and merger control. The anti-monopoly engines of economy development, especially Law (AML) at last on August law also covers a forth area, the prohibi- in the financial crisis. One of the causes is 30, 2007, which was informally tion of administrative monopolies, which that the overall absorption scale and level of Areferred to as the “economic constitution”. It address the anti-competitive effects of gov- foreign direct investment in the central and came into effect only a few months after the ernment power. It establishes the general western regions were comparatively low, equally significant Chinese Contract Law legal framework as well as the policy and and the gap from the foreign direct invest- which spelled out specific and comprehen- principles behind the law. Implementation ment utilization in the eastern regions has sive rights for employees in China for the Regulations are expected to be released been further widened. The direction of state- first time. Like the Contract Law, the Anti- gradually. These typically will provide interventions seems to have shifted lately Monopoly Law was problematic after it was more regular detail and guidance on the away with opening up to foreign investment adopted, and has raised issues with major implementation and enforcement of the law towards a more careful and selective stance foreign investors. One of them is that the by the relevant competition authority and with a view to promoting the change of eco- AML was usually interpreted as protection- should prove invaluable for foreign compa- nomic structure. ism in many foreign enterprises’ view. So nies in navigating their business pursuits in While the Article 7 allegedly protects what impacts does the Anti-monopoly Law this new era in China. the industries “concerning the lifeline of the have on the foreign investment, trade, M&A national economy and national security” (merger and acquisition) and China’s domes- The impacts on the FDI and trade and prevents state-owned enterprises in tic competition market? Is it a market-based In the past months, people have won- monopolistic industries such as petroleum, and competition-friendly law or a protection- dered how the law would be applied, and telecommunications, mail services and ist measure? And what should the foreign whether it would advance China’s transfor- tobacco from abusing their market domi- enterprises do in response to the new law mation into a market economy or serve as nance to lower services and disregarding and regulation? an impediment to genuine competition. The the public interests. In contrary, it widens concerns have focused on the AML’s im- the scope of foreign investment in the “un- In line with the international practice pacts on the Foreign Direct Investment (FDI) concerning” sectors, which was controlled The anti-monopoly law forms a basis to and M&A. by the state-owned enterprises in the past. a market economy, with over 100 countries First, China’s overall development This can be seen as a positive signal that and regions drafting similar legislation to strategy and economic policy is sustained China was starting to open the door to for- date. Since the late 1990s, especially into the and stable. The government will maintain its eign investment in some traditional indus- 21st century, there is growing concern over policy of encouraging foreign investment un- tries, such as the media. the perceived abuse of dominance by foreign changed after passing the anti-monopoly law. What’s more, article 15 provides that companies in China. This was raised dur- According to UNCTAD’s World Investment an agreement among business operators can ing the discussion of the draft AML where Prospects Survey 2009-2011, the promotion be exempted from application of articles 13 legislators called for greater regulation of the of FDI has been an important component of and 14 in some conditions, which are some abuse of dominance by foreign companies. China's economic reform process and China prohibitions of monopoly agreement, such With the problem of administrative monopo- has become the preferred destination of FDI, as “improving technologies, researching lies, Article 1 of China’s Anti-Monopoly and the flowing are the USA, India, Brazil and developing new products”; “upgrading Law states the broad thrust of the legislation: and Russia. Chinese economic success in the product quality, reducing cost, improving that it is for “preventing and prohibiting mo- past 30 years can thus be said to be heavily efficiency, unifying product specifications nopolistic activities, protecting fair market dependent on outward orientation and on or standards, or carrying out professional competition, promoting efficiency of eco- foreign capital in some degree. Recalling the labor division”; “achieving public interests nomic operation, protecting the legitimate past 30 years, three major stages of the FDI such as conserving energy, protecting the rights and interests of consumer and social policy can be identified: environment and relieving the victims of public interests, and promoting the healthy Stage 1: gradual and limited opening a disaster and so on”; “safeguarding the development of socialist market economy.” (late 1970s early 1980s); justifiable interests in the foreign trade or There is no doubt that the AML will act to Stage 2: active promotion through pref- foreign economic cooperation” etc. It is protect fair competition, prevent risks of mo- erential treatment (1986–95); clear that foreign investments are especially nopolistic behavior and help to build a well- Stage3: promoting FDI in accordance encouraged in activities that are expected to regulated market place. with domestic industrial objectives (1995– contribute to the industrial upgrading of the Like other comprehensive competi- 2005). Chinese economy. Broadly speaking, for- tion law regimes, the AML addresses three Although the Chinese central govern- eign businesses are encouraged in high-tech main areas, namely: the prohibition of anti- ment has initiated a campaign to adjust the equipment, the manufacturing of high-end competitive monopoly agreements; the economic structure in recent years, the FDI technology, advanced materials, equipment 56 LOBAL G

Never SoImportant —First Sino-US Strategic and Economic Dialogue

Wen Xiu

he first Sino-US Strategic and special representative of Chinese Presi- leaders from two countries. The range of Economic Dialogue was held on dent Hu Jintao, deliveried the speech at issues covered was unparalleled. China July 27 and 28, 2009 in Wash- the opening ceremony on July 27, he said, was more concerned about the security ington. Either before or during a more open and dynamic Chinese econ- of US bonds, China’s financial status and Tthe dialogue, PRC and USA attached great omy will bring enormous development China’s market economy status; while US importance to it. The former Strategic Dia- opportunities for all countries in the world party focused more on the issues about the logue and the biannual Strategic Economic including the United States. As China’s finance, clean energy and new economic Dialogue were initiated by the two heads reform and opening-up drive moves development mode. of state in 2005 and 2006 respectively. deeper, the economic and trade coopera- Just as Obama remarked on the open- The dialogue mechanism, upgraded from tion between China and the U.S. will be ing ceremony, he cited the saying of China by ministers from both governments to a more closely linked and China-U.S. rela- ancient great philosopher Mencius, “A trail strategic and economic dialogue between tions are bound to move forward from a through the mountains, if used, becomes governmental cabinets, will be held once new starting point. The dialogue received a path in a short time, but, if unused, a year in the future. From the US side, much concern, as it has significant mean- becomes blocked by grass in an equally Obama administration shows great inter- ings. First of all, it is the first round strate- short time”. And Premier Wen Jiabao once ests in the dialogue and places great im- gic and economic dialogue between China said: “Confidence is more important than portance on Sino-US relationship, which and Obama administration. Second, it is gold and currency. Though there are still can be seen from the visits from US senior an upgraded dialogue from Bush’s period, many uncertainties in global economy officials to China in 2009, including US for it involves both political and economic which is passing through the current crisis, Secretary of State, Secretary of Treasury, topics in the agenda of the dialogue. the close economic cooperation between Secretary of Commerce and Secretary of Third, the participants are upgraded from China and USA and sustainable develop- Energy. ministers to cabinet members, and the ment of both economies will be vital to The US representatives of the Dia- number of participants reflects the impor- escaping from financial crisis and promot- logue, Secretary of State, Hilary and US tance of the dialogue. Forth, the topics of ing the global economic prosperity.” The Treasure Secretary, Geithner, together the dialogue make new records in terms S&ED will develop a new mechanism for issued an article on Wall Str. Journal, of the width and depth in the 30 years’ both big countries and help build trust and which said: “Neither the U.S. nor China diplomatic history between PRC and the relationships. And, only regular and timely is able to solve global problems alone; USA. Dai Bingguo, Chinese State Coun- “maintenance” can prevent the relationship cooperation between China and the US is cilor and one of the leaders of Chinese between the two big countries from being indispensable to solve global problems”, team, said in his humour on July 28 , “We ruined when there are differences. and the “new Sino-US Strategic and Eco- really talked a lot, except for when to land nomic Dialogue joins the economic and on the moon”. Clinton also expressed that I. Strategic Perspective diplomatic topics open the new chapter”. the meeting which have just concluded a. Focus on the strategic topics Chinese Vice Premier Wang Qishan, as represent the largest gathering ever of top Cooperation in energy industry, arms

58 control, global financial crisis and climate ing global institutions and governance, ad- decide whether the negotiation will be suc- change were listed on the agenda of the dressing public health challenges and pov- cessful or not, and both sides would work S&ED. Obama administration continues to erty alleviation around the world, in order hard to gain a satisfying result. emphasize “green economy”, “low-carbon to promote the well-being of mankind and economy” and “hydrogen economy”, and global sustainable development. II Economic perspective on 26th June, 2009 US House of Rep- c. Significance a. Focus on economic issues resentatives gave approval to American During this S&ED, climate change Facing the global financial crisis and Clean Energy and Security Act, to secure became a hot topic of Sino-US relation- uncertain world economy, for the biggest that USA is moving on the road of energy ship, the first time in the 30 years since developed country, USA, and the biggest economy. In April, Hilary said during China and USA established diplomatic developing country, China, how the two a visit to China this year, as China and relationship. Experts say that there used to take the responsibilities together and deal USA are two big greenhouse gas emission be differences on climate change between with the crisis is not only related to the fu- countries, USA will see strengthening the developed and developing countries, so ture development of the two countries, but cooperation in climate change with China consensus between China and USA will also to the healthy development of world as a key point in the diplomatic activities. have a significant influence on dealing economy. U.S. Treasury Secretary, Geith- Just before the dialogue, Dr. Steven Chu, with climate change and other global ner once said during a visit to China, with- U.S. Secretery of Energy, said that China problems together by the whole world. out cooperation between China and USA, and USA signed a MOU on construction The MOU, both China and USA agreed, global problems won’t be solved, whether energy-saving cooperation, and both sides has special meanings. “It is an important it is economic and financial recovery or would carry out joint R&D in construc- achievement of this dialogue,” said Dai climate change and energy policy. Mean- tion energy-saving, clean coal and energy- Bingguo. American representative Hilary while, he said US government would work saving transportation in “Clean Energy also thought that the MOU would provide on to ease the anxiety of Chinese govern- Research Center” in both countries. Cli- a platform for dialogue and cooperation on ment on US bonds, and the assets in US mate change was another noticeable topic, climate change between China and USA, dollars are still quite safe. U.S. Commerce and USA also showed much interest in but also give a direction to the negotia- Secretary Gary Locke expressed the hope cooperation during the global financial cri- tion on climate change and boosting the during his visit in July, that if China al- sis, as USA was the source of the current economic transformation to low-carbon lowed for greater flexibility in its exchange financial crisis. economy. rate and further opened up its domestic b. The achievement There might be great potential for the markets for imports and foreign direct The two sides negotiated a Memoran- two countries to carry out cooperation in investment, it would accelerate the world’s dum of Understanding (MOU) to Enhance climate change and energy and other new return to growth. Therefore, the dialogue Cooperation on Climate Change, Energy fields. Since Obama assumed the office of determined that the core content of current and the Environment, led by the Depart- US President, he focused on new energy Sino-USA economic cooperation would ment of State and Department of Energy development, and hoped US economy be dealing with global financial crisis and in the United States and the National can have another round of development realizing a certain economic recovery. Development and Reform Commission in through this. However, new energy has di- Maintaining a stable financial market and China. rect relations with climate change. Copen- preventing the prevalence of trade pro- The MOU aims to promote discus- hagen Climate Change Conference is to tectionism is still the focus of China and sion on domestic strategies and policies be held at the end of this year. China and USA. for addressing climate change, practical USA planed to confirm the common in- Before the crisis, China was the solutions for promoting the transition to terests and differences through the MOU, largest bondholder of Fannie Mae and low-carbon economies and successful in- making preparation for further negotia- Freddie Mac, who were without US fed- ternational negotiations on climate change. tions on climate change. Xie Zhenhua, eral government’s debt guarantee. Till The two sides are committed to the full, Vice director of National Development now, China still is an important holder of effective and sustained implementation of and Reform Commission, said, USA had such bonds. Before the dialogue, China the United Nations Framework Conven- reached agreements with China that pro- expressed its concern many times that US tion on Climate Change and to achieve a viding financial and technical support to government should implement responsible successful outcome in Copenhagen at the help these developing countries to reduce economic policies, keep US dollar stable, end of this year, calling to carry out the the emissions is an important factor to in order to secure the safety of US assets. Framework for 10-Year Cooperation on Current financial crisis originated from Energy and Environment (TYF) signed in USA finally expands its influence to the December 2008. whole world, which makes the stability in The two sides decided to continue financial market and reform on financial practical cooperation within the Oil and system more important for a sustainable Gas Industry Forum, the Energy Policy growth in world economy. US side wanted Dialogue and the new China-U.S. Clean China to expand domestic demand and Energy Research Center and hold relevant reduce the dependence on export-oriented meetings at appropriate times this year. economy. And Chinese side wanted USA On the issue of pandemic and infec- to recognize the market economy status. tious disease outbreaks, the two sides And, against the background that global expressed their willingness to continue Dr. Steven Chu, U.S. Secretary of En- economy still worsening, both countries collaboration. They also intend to further ergy and Gary Locke, U.S. Secretary of promised to prevent protectionism and enhance dialogue and cooperation on other Commerce held the press conference promote investment and openness of trade. critical global issues, such as strengthen- during their visit in July, 2009, Beijing. b. Reach the consensus

59 Rule 62 August 2007 and 30, took as effect of August 1, 2008. Meeting of the Standing Committee of the Tenth National People’s Congress on Anti-monopoly Law of the People’s Republic of China was adopted at the 29th A and the interests of the society as a whole, and promoting the healthy healthy the promoting and whole, economy. market a ofdevelopment socialist as society the of interests the and consumers of interests the safeguarding competition, efficiency, economic market enhancing fair protecting conducts, monopolistic restraining Chapter I General Provisions IGeneral Chapter may not abuse such position to eliminate or restrict competition. restrict or eliminate to position such abuse not may to market. the on tiveness law, to according concentrated expand the scale of their businessthemselves operations and enhance their competiget association, untary manner. orderly market and competitive sound open, a up integrated, an in build operates and which network regulation macro-economic improve order to in economy, market socialist the with compatible are which rules of competition. restriction or tion clude: tion on the domestic market of China. market domestic the on tion - competi restrict or eliminate to serve which People’s the of ofChina, Republic territory the outside conducts monopolistic to applicable is China; it of and People’sRepublic the of territory the within activities nomic sumers’ interests and facilitate technological advance. technological facilitate and interests sumers’ the of con the prices protect to order the in them, by and provided services and operations commodities business law,their with regulate accordance and in shall, supervise and industries, these in operations undertakings business of lawful the protect shall State the law, to according commodities which certain of sale industries and production the the over and monopoly exercise security national or economy national the of lifeline the on have bearing a and sector economic State-owned ofbythe Article 2 Article 1 Article Article 7 Article 6 Article 5 Article 4 Article (3) concentration of undertakings that lead, or may lead by undertakings; position to market elimina(2) of dominant abuse undertakings; between reached (1) agreements monopoly Article 3 Article The undertakings mentioned in the preceding paragraph shall do do shall paragraph preceding the in mentioned undertakings The With respect to the industries which are under the control control the under are which industries the to respect With Undertakings holding a dominant position on the market market the on position dominant a holding Undertakings This Law is applicable to monopolistic conducts in eco For the purposes of this Law, monopolistic conducts in This Law is enacted for the purpose of preventing and and preventing of purpose the for enacted is Law This The State shall formulate and implement competition competition implement and formulate shall State The Undertakings may, through fair competition and vol the the nti- monopoly Law monopoly People’s

Republic China of ------of of ties. - commodi certain of sale and production monopolistic their of their or control of advantage position taking by interests consumers’ the harm not shall they and supervision, public to themselves subject and self-disciplined, honest, be strictly and law, to faithful according business competition; duties: following the perform to and work anti-monopoly guiding and coordinating organizing, of charge in be to commission anti-monopoly an tablish to competition. restrict or power eliminate administrative their abuse not may affairs public administering of tion func by the perform to authorized regulations or laws organizations or ments monopoly guidelines; monopoly assessment reports; publishing and whole market a the as on competition of sessment State Council. State Law; Anti-Monopoly of the forcement Council. State the by specified be shall mission com anti-monopoly the for rules dural (hereinafter referred to, in general, as the the as general, in to, referred Council (hereinafter State the by specified Law oly Anti-monop the of enforcement for sible Article 8 Article (2) organizing investigation and as and investigation organizing (2) on policies drafting and (1)studying 9 Article (4) coordinating administrative en administrative coordinating (4) anti- releasing and formulating (3) The composition of and proce and of composition The the by prescribed as duties other (5) Article 10 Article The State Council shall- es Administrative depart The authorities respon authorities The ------R ule

undertakings by merging and acquiring imposing discriminatory qualification and individuals, such as bills, certificates, a domestic enterprise or by any other requirements or assessment standards, agreements, account books, business cor- means, which involves national security, or by refusing to publish information ac- respondence and electronic data; the matter shall be subject to review on cording to law. (4) sealing up or seizing relevant evi- national security as is required by the rel- Article 35 Administrative depart- dence; evant State regulations, in addition to the ments and other organizations authorized (5) inquiring about the bank ac- review on the concentration of undertak- by laws or regulations to perform the counts of the undertakings under investi- ings in accordance with the provisions of function of administering public affairs gation. this Law. may not abuse their administrative power For taking the measures specified in to exclude non-local undertakings from the preceding paragraph, a written report Chapter V Abuse of Administrative making investment or restrict their in- shall be submitted for approval to the Power to Eliminate or vestment locally or exclude them from principal leading person of the authority Restrict Competition establishing branch offices locally or re- for enforcement of the Anti-monopoly Article 32 Administrative depart- strict their establishment of such offices, Law. ments and other organizations authorized by treating them unequally as compared Article 40 For the authority for en- by laws or regulations to perform the with the local undertakings, or by other forcement of the Anti-monopoly Law to function of administering public affairs means. conduct investigation into suspected mo- may not abuse their administrative power Article 36 Administrative depart- nopolistic conducts, there shall be at least to require, or require in disguised form, ments and other organizations authorized two law-enforcement officers, who shall units or individuals to deal in, purchase by laws or regulations to perform the produce their law enforcement papers. or use only the commodities supplied by function of administering public affairs The law-enforcement officers shall the undertakings designated by them. may not abuse their administrative power make written records when conducting Article 33 Administrative depart- to compel undertakings to engage in mo- inquiry and investigation, which shall be ments and other organizations authorized nopolistic conducts that are prohibited by signed by the persons after being inquired by laws or regulations to perform the this Law. or investigated. function of administering public affairs Article 37 Administrative organs Article 41 The authority for enforce- may not abuse their administrative power may not abuse their administrative power ment of the Anti-monopoly Law and to impede the free flow of commodities to formulate regulations with the contents its staff members are obligated to keep between different regions by any of the of eliminating or restricting competition. confidential the commercial secrets they following means: come to have access to in the course of (1) setting discriminatory charg- Chapter VI Investigation into Suspected law enforcement. ing items, implementing discriminatory Monopolistic Conducts Article 42 The undertakings under charge rates, or fixing discriminatory Article 38 The authority for enforce- investigation, the interested parties or prices for non-local commodities; ment of the Anti-monopoly Law shall other relevant units or individuals shall (2) imposing technical specifications investigate any suspected monopolistic cooperate with the authority for enforce- or test standards on non-local commodi- conduct according to law. ment of the Anti-monopoly Law in per- ties, which are different from those on All units and individuals shall have forming their duties in accordance with local commodities of similar types, or the right to report to the authority for law, and they shall not refuse to submit to taking discriminatory technical mea- enforcement of the Anti-monopoly Law or hinder the investigation conducted by sures, such as repeated test and repeated against suspected monopolistic conducts. the authority for enforcement of the Anti- certification, against non-local commodi- The latter shall keep the information con- monopoly Law. ties, for the purpose of restricting the ac- fidential. Article 43 The undertakings under cess of non-local commodities to the local If the report is made in writing and investigation and the interested parties market; relevant facts and evidence are provided, shall have the right to make statements. (3) adopting a special practice of the authority for enforcement of the Anti- The authority for enforcement of the administrative licensing for non-local monopoly Law shall conduct necessary Anti-monopoly Law shall verify the facts, commodities, for the purpose of restrict- investigation. justifications and evidence presented by ing the access of non-local commodities Article 39 When conducting inves- the said undertakings or interested par- to the local market; tigations into a suspected monopolistic ties. (4) erecting barriers or adopting oth- conduct, the authority for enforcement of Article 44 Where after investiga- er means to prevent non-local commodi- the Anti-monopoly Law may take the fol- tion into and verification of the suspected ties from coming in or local commodities lowing measures: monopolistic conduct, the authority for from going out; (1) conducting inspection of the busi- enforcement of the Anti-monopoly Law (5) other means designed to impede ness places or the relevant premises of the concludes that it constitutes a monopolis- the free flow of commodities between re- undertakings under investigation; tic conduct, the said authority shall make gions. (2) making inquiries of the undertak- a decision on how to deal with it in accor- Article 34 Administrative depart- ings under investigation, the interested dance with law and may make the matter ments and other organizations authorized parties, or other units or individuals in- known to the public. by laws or regulations to perform the volved, and requesting them to provide Article 45 With respect to the sus- function of administering public affairs relevant explanations; pected monopolistic conduct which is may not abuse their administrative power (3) consulting and duplicating the under investigation by the authority for to exclude non-local undertakings from relevant documents and materials of the enforcement of the Anti-monopoly Law, participating, or restrict their participa- undertakings under investigation, the if the undertakings under investigation tion, in local invitation and tendering by interested parties and other relevant units commits themselves to adopt specific 65 Rule ment. punish from, undertaking the exempt or mitigate, discretion, its at may, authority said the evidence, material provides and reached, agreement monopoly the for about Law Anti-monopoly authority the of the to enforcement reports initiative, more yuan. not 500,000 than fined be may it implemented, been not has agreement monopoly such If year. previous the in achieved of sales its percent 10 than more one not but than less percent not of fine a it on impose addition, in and, confis gains, unlawful its violation, cate the discontinue to it instruct shall Law Anti-monopoly the of enforcement for authority the monopoly agreement, a implements and concludes Law, this of provisions the of violation in Chapter VII Legal Liabilities Legal VII Chapter investigation. the terminate to decide may Law Anti-monopoly the of enforcement for authority the commitments, its fulfills undertaking the Where undertaking. the by made commitments the of fulfillment to the oversee shall decides it investigation, Law suspend Anti-monopoly the of the of commitments. undertakings’ details the stated be clearly shall decision the In to investigation. the decide suspend may Law Anti-monopoly the of enforcement for au said authority the the by thority, accepted is which of time period certain a within conduct its of consequences the eliminate to measures trade association in accordance with law. with accordance in association trade the of registration the cancel may zations depart - organi public of registration the for ment administrative the serious, are circumstances the If yuan. 500,000 than more not of fine a it on impose may Law Anti-monopoly the of enforcement for ity author the agreement, monopoly to a reach trade the in has Law, undertaking the this of arranged provisions the of tion decision to suspend investigation was was based;investigation suspend to decision the which on facts the of respect in place commitments; its fulfill to gation: - investi the resume shall of Law Anti-monopoly enforcement for authority the es, concerned. undertaking the by provided information untrue or incomplete on based was gation 66 Where a trade association, in viola in association, trade a Where own its on manage, business the If 46 Article In any of the following circumstanc following the of any In enforcement for authority the Where (3) The decision to suspend investi suspend to decision The (3) taken have changes Material (2) fail concerned undertakings The (1) Where an undertaking, undertaking, an Where ------in the previous year. previous the in achieved sales its of not 10percent than but more percent one than less not of fine a it on impose addition, in and, gains ful unlaw its confiscate violation, such tinue discon Anti- to it the instruct of shall Law monopoly enforcement for authority the position, market dominant its abuses Law, this of provisions the of violation in a fine of not more than 500,000 yuan. 500,000 than more not of a fine them on impose itmay and concentration, the to prior state the to return necessary to measures other adopt transfer and business assets, the or shares their of dis to pose limit time specified a within and concentration, such discontinue to them instruct shall Council State the under Law Anti-monopoly the of enforcement authority for the concentration, implement Law, this of provisions the of violation in or transfers evidence, or refuses to submit submit to evidence, or refuses or transfers destroys, or conceals, or information, or or materials materials false provides or information, relevant provide to re fuses individual or unit Anti- a Law, the of monopoly enforcement for authority the by conducted investigation and view prevail. shall provisions such competition, restrict or abuse eliminate to power that administrative their affairs of public function the administering perform to or laws by regulations authorized departments organizations in or administrative of regulations respect administrative or laws law. to according matter the for handling level higher a at department relevant the to Anti- proposal a the submit may of Law monopoly enforcement The for law. with authority accordance in sanctions administrative given be shall directly responsible persons other the and directly charge in person leading the rectify; to it instruct shall level the higher a at department competition, restrict or power eliminate to public administrative its abuses affairs administering of function perform the to regulations or laws by autho rized organization an or development law. to according liabilities caused has civil bear shall it person, another to losses undertaking an of conduct violations. of the ration du and extent nature, the as factors such consider shall Law Anti-monopoly the of enforcement for authority the 48, and 47 46, Articles in prescribed fines of amount Article 48 Article 47 Article Article 49 Article Article 52 Article by for provided otherwise Where 51 Article 50 Article

Where an administrative administrative an Where

Where the monopolistic monopolistic the Where Where an undertaking, undertaking, an Where To determine the specific specific the Todetermine Where the undertakings, undertakings, the Where Where, during the re ------property rights. property intellectual their abusing by competition market restrict or eliminate who takings under the to applicable be shall Law this however, rights; property intellectual on regulations administrative and laws the with accordance in rights property lectual intel their exercise who undertakings to Chapter VIII Supplementary Provisions Supplementary VIII Chapter according to law. to according court the before action administrative an bring or reconsideration administrative for apply may it paragraph, preceding the in specified decisions the than other Law Anti-monopoly the of enforcement for authority the by made decision any with law. to according court the before may action it administrative an bring reconsideration, administrative after made decision the with dissatisfied re itis if and law; to according consideration administrative for apply first may it the Law, of29this or with 28 ofArticle provisions accordance in Law monopoly Anti- the of enforcement for authority the by made decision the with dissatisfied is law. with be accordance for in investigated shall liability criminal crime constituted, a is if and unit; the on yuan million one than more less not but not yuan 200,000 and than individual the on imposed be shall yuan 100,000 than more yuan not but 20,000 than less not of fine a ous, - seri are circumstances the if unit; the on yuan 200,000 than more not and dividual in the on imposed be shall yuan 20,000 than more not of fine a and rectify, to him it/ instruct shall Law Anti-monopoly the of enforcement for authority the manner, other any in investigation obstructs or to istrative sanction according to law. to according sanction istrative admin an given be shall he crime, a consti tute to enough serious not is case his if and law; to according liability criminal for investigated be shall he crime, a tutes - consti which enforcement, law of course the in to access have to comes he secrets for or gain, commercial personal divulges malpractices power, in engages duty, his neglects his abuses Law the of Anti-monopoly enforcement for authority the of tation, storage of farm products, etc. products, of farm storage tation, transpor sale, processing, production, of activities business their in organizations economic rural or producers agricultural by cooperation or association the to cable fect as of August 1, 2008. of August as fect Article 56 56 Article 55 Article Article 54 Article dissatisfied is undertaking an Where 53 Article Article 57 Article This Law This shall go into ef- This law is not applicable applicable not is law This Where an undertaking undertaking an Where

Where a staff member member staff a Where This Law is not appli not is Law This ------CHINESE tIPS 67 +somebody” 递给 Ⅱ

considerate get wet lest, so as not to rainstorm be accustomed to cool cool address hold on a momenthold particular particular seatbelt tie drive a vehicle hotel airport before dawn, early in the morning +something+ 把 N N N V N N N Adj. Adj. Adj. Adj. Adv.

zhōudào línshī yǐmiǎn bàoyǔ xíguàn liángkuài dìzhǐ shāoděng xiángxì ānquándài jì xíngchē bīnguǎn jīchǎng língchén Vocabulary Grammar

to emphasize the object you want. use the pattern “ 3. 以免+V/Clause 1. 不习惯+N 2. 递给+somebody+something

周到 淋湿 以免 暴雨 习惯 凉快 地址 稍等 详细 安全带 系 行车 宾馆 机场 凌晨 Lest that Example: 你能把那本书递给我吗？ Could you pass me that book? 要当心，以免从树上摔下来。 Be careful lest you fall from that tree. 她轻轻的关好门，以免吵醒其他人。 She closed the door gently so as not to make others awake. 语法 Be unaccustomed to something 例句 Examples: 大卫刚刚来北京，还不习惯北京的天气。 unaccustomed still was and Beijing, in arrived just David whether. to Beijing’s 丽丽转学了，妈妈害怕她不习惯新环境。 Lily changed the school, and her mother environment. she would feel unaccustomed to the new worried that Give some body something by hand 李伟被雨淋湿了，玛丽递给他一张纸巾。 Liwei got wet by the rain, so Mary handed him a tissue paper. ▲When you ask somebody to you do could you a favor, 生词 Take A Taxi A Take ） 一 （ . 打车 entered the raining season China. for now gate lest get wet. you plain, unaccustomed a bit I felt to the hot and stuffy weather here. me the address Friendship of Hotel in detail? Thanks, are you very considerate. It alsoIt rained in a lot Dalian recently, which seems that it I just came from Dalian, the When cool city. off I got the Hello! I want toHello! to go Friendship Hotel. Here is the address. a look. Have I am not sure. on a moment Hold David: driver:Taxi really It began raining. I will park the car at the hotel 大卫：谢谢，您想的很周到。 David: 出租车司机：真下起雨来了。我给您停到门口，以免淋湿。 Taxi driver:Taxi According to the weather report, going to rain it’s 大卫：大连这几天也常常下雨，看来现在是中国的雨季。 heavily. 出租车司机：天气预报说，要下暴雨。 大卫：我从大连过来，那边很凉快。一下飞机，都有点 David: 不习惯了，北京很闷热。 David: 出租车司机：哦，中关村南大街。 driver: on theTaxi Zhongguancun Oh, it’s South Street. (大卫递给司机一张纸) (David passed a paper to the taxi driver) 大卫：这是地址，您看看。 大卫：我也不清楚。稍等。 David: 出租车司机：夜间行车，请您系好安全带。友谊宾馆在 driver:Taxi Please tie the midnight. seatbelt as it’s Could tell you 哪儿，您能说详细点么？ David: （凌晨一点钟，首都机场） at the Capital Airport)(One O’ Clock in the early morning 大卫：您好！我要去友谊宾馆。 List upply info 2009 China Market Suppliers Post Code: 424322 Company Name: Fuzhou Changhua Email: [email protected] Power machinery Co.Ltd Website: www.hnrydk.com We are professional Qingdao LiYikun Company Profile: Company Name: electric machinery manufacturer in China, Company Name: Longyan Zhuoyue Carbon Development Co., Ltd which specializes in producing diesel and New Energy Development Co. Ltd Qingdao LiYikun Company Profile: gasoline engine, diesel and gasoline gen- Company Profile: China Biodiesel Carbon Development Co., Ltd located in erator, as well as diesel and gasoline water International Holding Co., Ltd is an Qingdao, China, is an integrated enterprise, pump. Our company has obtained ISO9001 international renewable energy corpora- specializing in manufacturing graphite certification and Chinese national CCC tion focusing on Biodiesel R&D, manu- base products for many years. The main certification; most of our products now have facturing, marketing and investment. products include graphite electrode, scale passed CE certification. Our products have Its major subsidiaries include: Longyan graphite, micron zed graphite, expand- been exported to more than 30 countries and Zhuoyue New Energy Development Co., able graphite, Continuous casting graphite regions, induding Europe, Southeast of Asia, Ltd. and Xiamen Zhuoyue Biomass En- mould and so on, which are widely applied America and Middle East. ergy Co., Ltd. to the following industries: metallurgy, Kate We demand large quantity of used machinery, electronics, battery, chemical Contact Person: 86-591-88071392 cooking oil, palm acid oil, jatropha industry, light industry, military industry, Tel: 86-591-83845608 oil, coconut acid oil, sunflower oil, national defense, and astronavigation and Fax: 350001 soybean acid oil, or Rapeseed Oil as fire resistance industry. Post Code: Email: [email protected] material to produce biodiesel. Contact Person: Yu Hua Website: www.changhuapower.com Our leading product is Biodiesel Tel: 86- 0532-85875203 (Fatty acid methyl ester), a renewable, 86-0532-85968205 Fax: Hunan Ren Yuan non-fossil fuel alternative to mineral 266071 Company Name: Post Code: Corp diesel. It can be used as a burning fuel. [email protected] Email: Hunan Ren Yuan It can also be used to synthesize many www.liyikun.com Company Profile: Website: industry group takes the agriculture, the chemical products, or to be an addi- forest and the minerals industry as the tive in soap, PVC plastic and leather MinDong ShengYu- Company Name: foundation. It is a stock enterprise, whose production. Our clients are some gas an Electromechanical Co., Ltd production and investment development stations and many chemical factories. It is located in Company Profile: are integrated. It has 11 subordinate prod- Contact Person: Sindy Wu famous China MinDong Engine City- uct enterprise, which mainly produces the Tel: 86-597-5268800 the city zone of Fu’an Fujian. Its traffic Daily products, Home products, kitchen Fax: 86-597-2281325 is very convenient, and environment & toilet products, Handicraft Decoration, Post Code: 364000 is so beautiful. Our company occupies 2 the daily use sundries, the present, solar Email: [email protected] 3600m with abundant strength and skill lights, the canned foods, the construction Website: www.chinabiodiesel.cn base. We produce all kinds of generators, template the electrolysis metal manganese electromotor, SY series gasoline gen-sets and so on. Many varieties of product, Company Name: Senta Plastic Prod- and pump professionally. Our products which are sold to Europe, American and ucts Co., Ltd move off in the national market and are the Southeast Asia country, have received Company Profile: Established in 1993 exported to the international market, well high praise from the domestic and foreign and located in the Anping Development trusted by the customer. customers . Zone. The Senta Plastic Products Co., It is a modern enterprise with gen- The management of the company Ltd is a professional plastic production erator, motors and electric pumps as devotes to humanist for foundation, strives manufacturer, which deals in student sta- its main products. It strictly carries out for perfection; The enterprise product de- tionery. There are more than 100 workers ISO9001-2000 management system and votes to the item strives for new; the qual- with 10% as the technicians. tries to create first -class product bands. ity asks the essence, the cost to strive for With advanced equipment, unique It has strong technical forces, and its lowly, the benefit strives for high. products, technique, and qualified products include 20 series and are sold The company insists taking the good staffs, we have created our own brands in regions such as Southeast Asia, the faith as the principle, building the en- “CHIRK” and “SENTA” in the statio- Middle East, Africa, America, etc. terprise high quality brand. Meeting the nery and gifts industry. Jonathan Zhu Contact Person: challenge of the new century, We honestly At present, we have about 100 86-13860383013 Tel: invite the domestic and foreign merchants kinds of stationery (rulers, pencil case, 86-593-6580911 Fax: to create a better future together. pencil vase, blackboard, whiteboard, Post Code: 355000 Contact Person: Frank stationery set), office supplies, gift and Email: [email protected] Tel: 86-739-7223151 toys. Most of them are exported to Eu- Website: www.minsun-motor.com Fax: 86-739-7224389 rope, North America, the Middle East, 68 Southeast Asia and other regions. evaluation mold. In 2005, Snowhite charcoal industry together. We are quickly becoming an was appraised as Excellent Shandong Contact Person: Linda important supplier both domestically Performance Advanced Enterprise. In Tel: 86-591-26133868-805 and abroad. Upholding our principle 2006, Snowhite got Shandong Quality Fax: 86-591-26133518 of “quality first, customer supreme Management Award. In 2007, Snowhite Post Code: 350500 and high prestige”, we hope to de- got two China top brands for ball pen Email: [email protected] velop a long term cooperation rela- and markers. Website: www.xssmtw.com tionships worldwide. For more in- In 2006, Snowhite’s new Indus- formation, please visit our website or try Area began to be used. A grand Company Name: Ningbo DAR Inter- contact us directly with your ques- China Writing Instruments Science national Trading Co., Ltd tions or inquiries. and Tehnology Garden Standing erect Company Profile: Our company is situ- Along with all of the staffs, the by Qingdao west coast in Yellow sea ated at a beautiful coast port city -Ningbo, director extends its earnest invitation bank. This is a landmark in company’s in southeast area of China, with the fine to friends at home and abroad to join us socialization management development economic environment and the harbor fa- and attain mutual development together. history. Snowhite will use this field, ex- cilities. Contact Person: Mr.Jeff Cai pand and filter to every corner all over Our company mainly sells the re- Tel: 86-595-85786852 the world, keep go-ahead to become “the lated computer accessories, the existing Fax: 86-595-85791852 most valuable writing instruments in variety has surpassed several thousand Post Code: 362261 the world”. kinds, moreover we can follow differ- Email: [email protected] Contact Person: Li Yali ent customer’s demand to provide many Website: http://www.china-senta.com Tel: 86-532-83717181 kinds of levels of products, simultane- Fax: 86-532-83717181 ously we also provide special services Company Name: Qingdao Changlong Post Code: 266031 about other industrial products’ purchas- Stationery Co., Ltd Email: [email protected] ing and the processing and so on. The Company Profile: Qingdao Chan- Website: www.showhite.com.cn “high quality, high efficiency” are our glong Stationery Co., Ltd. (Snowhite), service objective! a professional stationery manufacturer Company Name: Fuzhou New Land- The hope with yours care and the specializing in investigation, production scape Agriculture Co., Ltd support, enables between us to have a and marketing, was founded in May of Company Profile: Fuzhou New Land- broader prospect! 1988. After 18 years’ development, the scape Agriculture Co., Ltd is located in Contact Person: Stella Shen total investment amounts to US$8.62 the east of Fujian of China. It is about 38 Tel: 86-574-87256800 million. The factory occupies over kilometers away from Ma Wei Port. It is Fax: 86-574-87286232 60000 square meters, and more than a leading agricultural enterprise special- Post Code: 315040 1800 people are working in the com- izing in bamboo & wooden charcoal and Email: [email protected] pany. The brand of Snowhite is the only bamboo products. Our company was Website: www.dar-tp.com stationery brand that was certificated founded in 1999. After effort of all the as the Chinese Well-known Trademark, staff, we have developed and invented 11 Company Name: Anhui Technology China Top Brand and China Product series of products, including bamboo & Import and Export Company Limited Exempted from Quality Surveillance wooden charcoal, BBQ product, bamboo Company Profile: Anhui Technology Inspection in Chinese stationery indus- charcoal product ,bamboo vinegar, char- IMPORT And EXPORT Company Lim- try line. Snowhite has been appraised as coal tea- an organically grown tea and ited (AHTECH) is a large comprehen- most meritorious and effective manufac- heath care charcoal products. In Novem- sive enterprise in China mainly dealing ture by China Writing Instruments As- ver of 2002, our refined bamboo vinegar with international trade, plus real-estate sociation many times. won gold prize in international timber development, international tendering, The main products include gel pen, product fair of China Xiamen; In Janu- transportation, manpower output, tour- ball pen, free ink system/reservoir sign ary 2005 our organically-grown tea and ism and domestic trade. pen, free ink system/reservoir highlight- its cultivation technology were awarded AHTECH is the first international er pen, correction fluid, correction tape, national patient prize for its contribu- trading company in China that has got white board pen, marker pen, fountain tion to the progress of science and tech- its ISO 9002 Certificate. pen, oil pastel, erasable pen and various nology. In July 2005, our organically- Since 1992, AHTECH has been refills. Till now, Snowhite is one of the grown tea and tea cultivation technology listed among China’s “National TOP 500 biggest correction pen manufacturers were proved and certificated as High- International trade enterprises” for 13 in Asia, with annual production ability technology by American Palladium, successive years. And since 1994, our more than 50 million pieces; and is one which created the conditions to U. S. company’s total business volume has of the biggest pen manufacturers in Chi- Nasdaq. In August of 2006 our company been ranked number one in Anhui Prov- na, with annual production ability more was approved by German ISO 9000. Our ince each year. The company’s total im- than 0.3 billion pieces. procucts have found a good sale in Japan, port and export volume reached 607 mil- After Snowhite became the first Korea, Tai wang and other countries and lion US dollars in the year of 2006, with company in the industry line who suc- areas of south-east Asia. Both our prod- 401 million US dollars of export volume. cessfully actualize Quality/Circum- ucts and service have been highly praised Contact Person: Feng Cheng stance/Occupation Safety Health three by the consumers. We hope to cooperate Tel: 86-551-5101188 system management and input stan- sincerely with professional importers Fax: 86-551-5101199 dardization manage mode, the company from Europe and America to open up the Post Code: 230031 give its best on Performance Excellence big market of the bamboo and wooden Email: [email protected] 69