Economic Layout

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

Special report Redefining Regional Economic Layout

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Indian Music and Dance Show but also vividly and in an unexpected way depicts the characters’ psychologi- Time: 2010/1/29-2010/1/31 cal struggle and subtle change, and gives Venue: Beijing Exhibition Theater spectators a double shock on vision and Price: RMB 80/180/280/380/480/ heart. 680/880 Meanwhile, the unique stage design Ticket Package:1000 KAHI AEG also contributes to the ballet's perfection. LAGE Music Suite It not only has the luxurious aristocratic Tel: 400-610-3721; 010-6417 7845 court but also includes the simple white (English) space, which in a stage-oriented way presents to the spectators the huge contrast Ballet: The Lady of the and strong contradiction between truth Camellias and illusion, reality and imagination, dream and recollection, hope and despair Time: 2010/2/3-2010/2/9 that appeared in the ballet, and directly Venue: NCPA-Opera House touches the softest part of the human Price: RMB 180/280/480/680/880/ heart. 1080 Presenter: The Hamburg Ballet Tel: 400-610-3721; 010-6417 7845 Dance Drama: Sound of Yunnan (English) Time: 2010/2/3-2010/2/5 Venue: Poly Theatre Being adapted from literary mas- Price: RMB 180/280/480/680/980/ terpieces has always been the tradition 1280 Irish Tap Dance Riverdance of ballet; meanwhile, it has also become Tel: 400-610-3721; 010-6417 7845 Beijing Tour 2010 a challenge to ballet. Literature not only (English) offers ballet rich nutrition but also makes Time: 2010/2/5-2010/2/11 ballet’s standing point more difficult to Every stone, every leaf, and every Venue: Beijing Exhibition Theater settle, thus those famous dramatic ballets drop of water can make a sound, they are Price: RMB 180/280/380/480/580/ that could become a history must come not simulative, but the sound of the true 680/880/980/1280/1680 from masters, and John Neumeier, the nature. Package price: RMB 1600 (RMB choreographer of Lady of the Camellias, 980*2) / RMB 2000 (RMB is the best testimony. 1280*2) / RMB 1400 (RMB Lady of the Camellias vividly por- 880*2) trays the characters’ psychological world Tel: 400-610-3721; 010-6417 7845 and skillfully depicts the dramatic plot, (English) and it could be named the classic of dramatic ballet. The excellent arrangement Composer: BELL WHELAN makes full use of dance and stagecraft, Producer: MOYA DOHERTY which gives spectators a satisfied enjoy- Director: JOHN MCCOLGAN ment. In Act I, Manon Lescaut, another Riverdance is a theatrical show con- famous courtesan, appeared on the stage sisting of traditional Irish step dancing, and projected the tragic destiny of cour- notable for its rapid leg movements while tesans; the dance in this scenario not body and arms are kept largely stationary. only presents the excellent choreography Riverdance continues to be performed The Sound of Yunnan is the recent all over the world, albeit in a diminished work by renowned choreographer Yang format and in smaller venues than hitherto. Liping, who is well-known at home and Current productions are geared towards abroad for her peacock dance imperson- smaller theatres, whereas past productions ation and ethnic Dai dancing, with music have been performed in large theatres and mainly based on percussion and chore- arenas. Sets have therefore been simplified ography led by Yang Liping. It’s another and some numbers contain fewer perform- successful show after Yang’s dance sen- ers than in past productions (such as those sation “Tibetan Riddle” and “Dynamic seen on the Live from Radio City and Live Yunnan”. For the best performance, Yang from Arena Geneva DVDs). For example, and her accompanies spent nine months current touring productions of the show searching various types of instruments have 20 dancers in the finale, “Heartland”, and collecting different types of the sound whereas 24 were used in the original Dublin of nature. show and 32 were used in the arena shows. Lifestyle Be s t-S e l l e r The Time Traveler’s Wife By AUDREY NIFFENEGGER

A dazzling novel in the most untradi- and finds himself in the past or future, usu- tional fashion, this is the remarkable story ally at a time or place of importance in his of Henry DeTamble, a dashing, adven- life. This leads to some wonderful paradoxes. turesome librarian who travels involun- From his point of view, he first met his wife, tarily through time, and Clare Abshire, an Clare, when he was 28 and she was 20. She artist whose life takes a natural sequential ran up to him exclaiming that she’d known course. Henry and Clare’s passionate love him all her life. He, however, had never seen affair endures across a sea of time and her before. But when he reaches his 40s, captures the two lovers in an impossibly already married to Clare, he suddenly finds romantic trap, and it is Audrey Niffeneg- himself time travelling to Clare’s childhood ger’s cinematic storytelling that makes and meeting her as a 6-year-old. The book the novel’s unconventional chronology so alternates between Henry and Clare’s points vibrantly triumphant. of view, and so does the narration. Reed ably An enchanting debut and a spellbind- expresses the longing of the one always left ing tale of fate and belief in the bonds of behind, the frustrations of their unusual life- love, The Time Traveler’s Wife is destined style, and above all, her overriding love for to captivate readers for years to come. Henry. Likewise, Burns evokes the fear of a man who never knows where or when he’ll Review ≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈ turn up, and his gratitude at having Clare, This clever and inventive tale works whose love is his anchor. The expressive, on three levels: as an intriguing science evocative performances of both actors convey fiction concept, a realistic character study the protagonists’ intense relationship, their and a touching love story. Henry De Tam- personal quirks and their reminiscences, making this a fascinating audio. ble is a Chicago librarian with “Chrono Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights Displacement” disorder; at random times, reserved. — This text refers to the Audio CD edition. he suddenly disappears without warning From Publishers Weekly

The Guernsey Literary and Potato Peel Pie Society (Random House Reader’s Circle) (Paperback) By Mary Ann Shaffer & Annie Barrows

plume Izzy Bickerstaff) writes to her publisher to say she is tired of covering the sunny side of war and its aftermath. When Guernsey farmer Dawsey Adams finds Juliet’s name in a used book and invites articulate — and not-so-articulate — neighbors to write Juliet with their stories, the book’s epistolary circle widens, putting Juliet back in the path of war stories. The occasionally contrived letters jump from incident to incident — including the formation of the Guernsey Literary and Potato Peel Pie Society while Guernsey was under German occupation — and person to person in a manner that feels disjointed. But Juliet’s quips are so clever, the Guernsey inhabitants so enchanting and the small acts of heroism so vivid and moving that one forgives the authors (Shaffer died earlier this year) for not being able to settle on a single person or plot. Juliet finds in the letters not just inspiration for her next work, but also for her life — as will readers. (Aug.) Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. — This text refers to the Hardcover edition. From Publishers Weekly

“Traditional without seeming stale, and romantic without being naïve” (San Francisco Chronicle), this epistolary novel, based on Mary Ann Shaffer’s painstaking, lifelong research, is a homage to booklovers and a nostalgic portrayal of an era. As her quirky, loveable characters cite the works of Shakespeare, Austen, and the Brontës, Shaffer subtly weaves those writers’ themes into her own narrative. However, it is the tragic stories of life under Nazi occupation that animate the novel and give it its urgency; furthermore, the novel explores the darker side of human nature Review ≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈ without becoming maudlin. The Rocky Mountain News criticized the novel’s lighthearted tone The letters comprising this and characterizations, but most critics agreed that, with its humor and optimism, Guernsey “af- small charming novel begin in firms the power of books to nourish people during hard times” (Washington Post). 1946, when single, 30-something Copyright 2008 Bookmarks Publishing LLC — This text refers to the Hardcover edition. author Juliet Ashton (nom de From Bookmarks Magazine Lifestyle FILM Ancien Régime & World for Work In January, the French Cultural Centre invites you to go back in time with a selection of films takes place during ‘Ancien’ Régime, the period between the end of Renaissance to the French Revolution; & in February presents a selection of French films about the world of work in various aspects: alienating or liberator ... FRENCH CULTURAL CENTRE French films with Chinese (and sometimes English) subtitles Ticket price: RMB 20 (Students: RMB 10) Fidelity card: RMB 100/5 films + 1 free (Students: RMB 50) Free entrance on Monday More information: www.ccfpekin.org

Fanfan la Tulipe Little Nothings France, 2003 France, 1992 95 min Director: Cedric Klapisch 97 min With: Fabrice Luchini, Daniel Berlioux, Marc Bergman Genre: Comedy Director: Gée- ard Krawczyk Lepetit, an ambitious and determined man, is named the new CEO With: Vincent of a department store. His mission is to improve the store’s financial perez, Pénelope Cruz position. He decides that the human factor will be his catchword and in- Genre: Adven- troduces new methods, which he also applied to himself. But tensions slowly arise between ture, Comedy, Ro- members of the staff. mance Saturday 06/02 – 17:00 Wednesday 10/02 – 19:30 In this 2003 remake of the classic 1952 French film, Fanfan la Tulipe is a swash- buckling lover who is tricked into joining Sur mes lèvres the army of King Louis XV by Adeline La France, 2001 115 min Director: Jacques Audiard Franchise, who tells Fanfan that by doing so, With: Emmanuelle Devos, Vincent Cassel he will eventually marry one of the king’s Genre: Drama, Thriller daughters. Sunday 31/01 – 17:00 Young secretary Carla is a long-time employee of a property development company. Loyal and hardworking, first to arrive and last to leave, Carla is beginning to chafe at the limitations of her career and is looking to move up. But as a 35-five-year-old woman with a hearing deficiency, she is not sure Vatel how to climb out of her humdrum life. Into her life comes Paul Angeli, a new trainee she France, 2000 decides to hire. Paul is 25 years old and completely unskilled, but Carla covers for him 103 min when the need arises because of his other qualities - he’s a thief, fresh out of jail and very Director: Ro- good-looking. land Joffé Friday 05/02 – 19:30 Sunday 07/02 – 17:00 Friday 12/02 – 19:30 With: Gérard Saturday 20/02 – 19:30 Sunday 21/01 – 17:00 depardieu, Uma Thurman, Tim Roth The Ax Genre: Bi- France, Spain, Belgium, 2005 122 min ography, Drama Français, sous-titré Director: Costa-Gavras chinois With: José Garcia, Karin Viard, Ulrich Tukur Genre: Thriller

In 1671, with war brewing with Holland, The thirty-nine years old executive Bruno Davert has been work- a penniless prince invites Louis XIV to three ing for fifteen years in a paper company. After a merging operation with days of festivities at a chateau in Chantilly. a Romania’s company, he is fired in a downsizing. While unemployed The prince wants a commission as a general, for two years, Bruno loses his self-esteem and sanity and his family loses the middle-class so the extravagances are to impress the king. lifestyle without cable television, Internet and regular consumption. He concludes that In charge of all is the steward, Vatel, a man of there is too much competition in his sector for a few job positions and decides to literally honour, talent, and low birth. eliminate his competitors, killing those more qualified than him. Saturday 30/01 – 19:30 Sunday 07/02 – 15:00 Sunday 21/02 – 19:30 Friday 26/02 – 17:00 Lifestyle ART & GALLARY Asian Landmark — Toyota Art Project Producer: Jiang Ruxiang, Qiu Chenfeng modernization has to follow the trends Chief Curator: Xia Jifeng of the development of western civiliza- Artists: Cui Jie, Dong Wensheng, Fei Jun, Han Lei, tion. More and more Asian countries Hung Tunglu, Huang Wenhai, Jiang Chongwu, Li Hui, begin to reposition their national legacy Li Qing, Qi Jiaming, Qin Yufen, Shi Jinsong, Su Wenxi- in a new context of social structure and ang, Laurens Tan, Wang Luyan, Wu Xiaojun, Wang mentality in a search for the origin of Yaqiang, Yu Bogong, Zhu Jinshi, Zheng Lu the Asian spirit, of the humanity, and of Dates: 16 January 2010 – 28 February 2010 the art. Li Hui Venue: Iberia Center for Contemporary Art, E06, The formation of economic and The Soul Released by Sensibility 798 Art Zone, No.4 Jiuxianqiao Road, Chaoyang Dis- cultural modernity in China has entered Laser, smog, fabric, stainless steel trict, Beijing a stage of restructuring and reform. 225×180×700cm 2009 Comparing with the occidental coun- Iberia Center for Contemporary Art in col- tries, the time-span for individuals and laboration with Beijing CN Management Consulting corporations in China to accumulate Company will launch a brave new initiative “Asian wealth is relatively shorter and it happens Landmark — Toyota Art Project” in the first month in a more drastic way. The failure of the of 2010. construction of the ethics of wealth to The global financial storm triggered by the U.S. catch up with the accumulation of wealth subprime mortgage crisis is reshaping the economic, results in a psychological rupture in Chi- political and cultural patterns world-wide; meanwhile nese society. In contrast with the rapid it offers an opportunity for renovation. Amidst the growth of individual wealth, the new strong influence keenly felt in the gradually integrat- Chinese rich failed to engage with the ed Asia economy and culture, a brave new challenge social responsibilities and cultural obli- and even an enormous opportunity emerge hand-in- gations; the fortune makers - entrepre- hand with crisis, especially in China, a country un- neurs always find themselves in a moral Han Lei dergoing drastic social changes. conflict between the profit-making and The Ukiyo-e Toyota Theater The integration of Asia economy exerts a coun- sentimental concerns, and between the Color wood-carving, video terforce against the controlling power of the occident private and public interests. The obstruc- 150×106cm 2009 over the world market. Though the structure of eco- tion blocking the wealth redistribution nomic and political systems in Asia is far from com- channels in the overall social institutions plete, the high-speed economic growth in China has creates difficulty for many companies been fueling the increasingly active trade and invest- to build a compatible corporate concept ment in Asia economy. Despite of the different stages and culture. Japan, South Korea and China are going through, The above observation leads to the their respective changes have put the entire East Asia consensus that what we need is the bal- into a common “critical structural transformation”. ance between the growth of economy Basically from a cultural point of view, the course and the development of culture and a of modernization in Asian countries displays a simi- connection bringing together both the Zheng Lu larity to that of the occident. The entry of overseas constructive force of private capital and The Eastern Sea and a Crab capital has brought about an inevitable influence on the redemptive power of contemporary Sculpture Stainless Steel the criterion of cultural values in Asia, including the art so as to build a healthy market en- 200×120×60cm 2010 most modernized Japanese society. Nevertheless, the vironment for culture and complete the value system based on the occidental criticism of mo- construction of a self-contented art institution. In return, culture provides dernity obviously cannot meet the cultural needs of coordinate efforts for the renewal of corporate concept and image in oriental countries undergoing a radical change at the favor of a more humanitarian management model and spirit. This is the moment. This suggests the end of an era when Asian intention of the present initiative “Toyota Art project”.

Laurens Tan De Guo Qie Guo: Cultural Retail Booth Installa- Li Hui tion for Ji Du You Xian (Design drawing) Hung Tunglu Spiritual Installation Motor—Inherent Danger Installation Installation Fiberglass reinforced plastic, motor, stainless Acrylics, LED lamp, stainless steel Animation loops, art objects, merchandising, steel, machine installation, LCD 240×50×50cm 2008 wood, plastic 1200×1100×280cm 2009 220cm (diameter) × 150cm (height) 2007 2010 No.2/471

BI-WEEKly WATCH 8 Figure 9 Agriculture 10 Energy 11 Environment 12 Property 13 Steel 14 Auto 15 Electronics 16 Consumer 17 Textile 18 Transportation 19 Culture 20 Investment 21 Finance

Special report In 2009, the Chinese government approved planning for 9 24 Redefining Regional Economic Layout 24 regional development zones, including plans for the Taiwan Strait West Bank Economic Zone, the Guanzhong-Tianshui 25 Tumenjiang Delta, New Drive for Chinese Economic Zone, the Jiangsu Coastal Region, the Tumen Economy River Region and Yellow River High-efficient Ecological Economic Zone, among others. 27 Five Points in One Line 28 Yellow River Delta Faces a Historic Opportunity 29 Infusing Energy into “Jiangbei” Area 30 Sleeping Hengqin Wakes up 31 Guanzhong-Tianshui Economic Zone Approved to Shore up Shaanxi Economy 32 Middle Region to Embrace Golden Time 33 Q&A on Beibu Gulf 35 Tianjin Binhai, Set Sail

CITY Situated in the river valley along the lower part of Xiang River, 38 Changsha is the capital city of Hunan Province. The recorded 38 Changsha, A City of Tourism and Cuisine history of Changsha can be traced back 3000 years. Opinion 42 Strengthen Business Compliance Operation

Economy 45 Too Hot? Too Cold? 46 “I Won’t Invest in China’s Real Estate” 47 Official Antimonopoly Website Opens

Update 48 Im/Ex in December 2009: Witness Strong Pickup

While we criticize the irregularity by Siemens and other FOCUS 42 multinational companies, we should know how they 50 Cross-strait Financial Cooperation Brings New reconstruct compliance system, and what we can learn from them. Chances for Banking Industry

INVESTMENT INFO 54 Investment Projects in Henan Province 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 GUIDE 中国国际贸易促进委员会宣传出版中心 56 Q&As as for Foreign Business Practice in China 社长 President 杨晓东 Yang Xiaodong 总编辑 Editor-in-Chief 王晓同 Wang Xiaotong CHINESE tIPS 副社长 Vice President 石净 Shi Jing 57 Fresh Chinese Expressions 副总编辑 Vice Editor-in-Chief 孟燕星 Meng Yanxing 编辑部副主任杨蔚 Fairs Editorial Deputy Director Yang Wei 编辑部 Editorial Department 郭艳 Guo Yan 58 China Fairs & Expos Tel:86-10-68053271 郭丽琴 Guo Liqin 李振 Li Zhen World Expo 阎漫漫 Yan Manman 英文校审 English Polisher 泰瑞·克兰丹农(美) TY Clendenen 60 Preparation for 2010 Shanghai Expo in final stage 经营部总经理石净（兼） Marketing Department Director Shi Jing Ccpit 副总经理 Deputy Director 白义峰 Bai Yifeng 项目经理 Manager 石林峰 Shi Linfeng 62 The 6th CEFCO Successfully Concluded in Xi’an Tel:86-10-88075934 游万龙 You Wanlong 88075494 李小冬 Li Xiaodong Case Study 丁秋珍 Ding Qiuzhen 高嵩 Gao Song 63 Study on Subjects of Basic Medical Insurance in 推广部总经理李英宏 Urban Areas of China Distribution Department Director Li Yinghong 项目经理 Manager 张越 Zhang Yue RULE Tel:86-10-88075342 王石 Wang Shi 王岱凌 Wang Dailing 66 Measures for the Administration on the 理事会副秘书长兼秘书处主任杨复强 Establishment of Partnership Business by Foreign Council Secretariat Director Yang Fuqiang Enterprises or Individuals in China 联络专员 Assistant 刘晓东 Liu Xiaodong Tel:86-10-88075380 宋华峰 Song Huafeng 戚英杰 Qi Yingjie supply info 石林 Shi Lin 王飞 Wang Fei 68 2010 China Market Suppliers List General Distributor For Overseas Subscribers 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 地址：北京市朝阳区工体东路16号 China Kweichow Moutai Co., Ltd Tel: 86-10-65066688-8822 65063082 贵州茅台酒股份有限公司 China International Book Trading Corporation China FAW Group Corporation 中国国际图书贸易总公司(GUOJISHUDIAN) 中国第一汽车集团公司 Add: Box 399, Beijing 100044, China 地址：中国北京399号信箱(100044) The 2nd Wenzhou International Jewelry & Watch Exhibition 邮发代号 80-799 第二届温州国际珠宝钟表展览会国内统一连续出版物号 CN11-1020/F 及国际标准刊号 ISSN0009-4498 The 4th Wenzhou International Luxury Exposition AD LICENCE No. JXGS/G-0249 第四届温州国际奢侈品展览会广告经营许可证号京西工商广字第0465号 2010 Wenzhou International High-end Property Domestic Price 国内订价 16元(RMB) Exposition 2010年温州国际高端物业展览会 Overseas Price 国外订价 US$5 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 is the first time that the PBOC adjusted Foreign trade: 13.9% ↓ in 2009 the ratio of deposit that lenders are required to set aside since the end of 2008 China’s foreign trade in 2009 and the first increase for the ratio since dropped 13.9 percent from a year June of 2008. earlier to US$2.21 trillion and its The PBOC has cut the bank reserve trade surplus last year slid 34.2 requirement ratio for four times in the percent year on year to US$196.1 second half of 2008 to stimulate growth billion, according to figures re- as the global financial crisis started to leased on January 10 by the Gen- weigh on the economy. (Xinhua) eral Administration of Customs (GAC). Fiscal revenue: 11.7% ↑ In breakdown, China’s exports in 2009 stood at US$1.2 in 2009 trillion, down 16 percent from in 2008, and imports reached China’s 2009 fiscal revenue was US$1.01 trillion, down 11.2 percent estimated at RMB 6.85 trillion (just over from a year earlier, said the GAC. US$1 trillion), an increase of 11.7 percent In December 2009, monthly trade amounted to US$243 billion, which represented over a year earlier, Finance Minister Xie a year-on-year increase of 32.7 percent and a month-to-month rise of 16.7 percent. Xuren said on January 10. Last month, China’s exports were worth US$130.7 billion, up 17.7 percent from a Xie also said the budget of public year earlier. December’s imports hit record monthly high to reach US$112.3 billion, up investment in 2010 from the central 55.9 percent from the same period of 2008, according to the GAC. (Xinhua) government was likely to stand at RMB 992.7 billion, up RMB 572.2 billion from Industrial output: 11% ↑ in 2009 the 2008 budget. With it, the Chinese central govern- China’s industrial output is expected to post an annual 11 percent rise this year, ment would fulfill the target of adding buoyed by the government’s stimulus packages, Minister of Industry and Information RMB 1.18 trillion for public investment Technology (MIIT) Li Yizhong said on December 21. in the time period between the fourth Li said at a two-day conference in Beijing that industrial output development quarter of 2008 and 2010. would ensure the 8 percent growth of the country’s GDP the government had projected It is estimated that in 2009, the central for this year. government allocated about RMB 924.3 The industrial output moved into double-digit growth in June, up from the 3.8 per- billion for public spending, up RMB 503.8 cent in the first two months of the year. The first 11 months saw the rise at 10.3 percent billion from the 2008 budget. from a year ago. China rolled out a massive invest- The stimulus packages the government adopted to combat the global financial cri- ment plan worth RMB 4 trillion in sis had eased production difficulties for enterprises and reversed the decline of indus- November 2008 to cope with the interna- trial growth. tional financial crisis, which broke down “The recovery base has been gradually consolidated and the macro economic poli- to RMB 1.18 trillion from the central cies will still be in place to boost the economy next year,” Li said. “The growth pace is government and RMB 2.82 trillion from necessary, achievable and appropriate. We will not set the target too high”, he added. local governments. However, he warned against “blind optimism” as the industrial recovery was According to the original plan, the mainly supported by government investment and bank loans rather than private invest- RMB 1.18 trillion from the central gov- ment, which posed challenges. (Xinhua) ernment included RMB 104 billion in the fourth quarter of 2008, RMB 487.5 billion in 2009 and RMB 588.5 billion in Deposit reserve requirement ratio: 0.5% ↑ 2010. It is believed that as new investment The People’s Bank of China (PBOC), the central bank, announced on January 12 on public projects in 2009 surpassed the to raise the deposit reserve requirement ratio by 0.5 percentage points from Jan. 18 this original budget of RMB 487.5 billion, year. the budget for 2010 was reduced from The ratio at small financial institutions such as the rural credit cooperatives would the original RMB 588.5 billion to RMB remain unchanged to support the agriculture sector, the PBOC said in a statement. This 572.2 billion. (Xinhua)

8 A griculture

restoring the damaged greenhouses and guiding farmers in improving plant man- Annual central rural work agement measures, so as to ensure steady production and supply of the agricul- conference opens in Bei- tural products. (Xinhua) jing New pension scheme aims to provide security to China’s annual central conference on farmers rural work, which would set the tone for next year’s agricultural and rural development, Social security workers have begun a massive door knocking campaign to opened here on December 27. enroll farmers in a pioneering pension scheme in China’s Jilin and Fujian prov- As China’s economic recovery continues, inces. the meeting is expected to study policies and The government-subsidized pension scheme is aimed at improving the lives measures to improve coordinated development of China’s estimated 800 million rural people and narrowing the urban-rural between urban and rural areas and reinforce wealth gap. Under a plan by the Ministry of Human Resources and Social Secu- the basis for the development of agriculture rity, the scheme is expected to expand across the country gradually every year. and rural regions. Rural people aged 16 and above can open pension accounts at local social se- The annual conference is the highest-level curity bureaus. In Jilin, a rural resident can choose from five pension levels. Each meeting on rural work at which the Chinese higher level costs RMB 100 more a year. Government subsidies from RMB 30 to government maps out policies and measures RMB 50 will be added into the account at each level. for next year’s development of agriculture and When the holder reaches 60, the monthly pension will be the amount of mon- rural regions. ey in his account divided by 139 plus a government subsidy of RMB 55 and bank China’s grain yield this year is expected interest. to increase and hit a record high, according to An account with deposits of RMB 100 annually for 15 years will be worth the Ministry of Agriculture (MOA). The MOA RMB 70 a month on retirement at 60. The holder will receive about RMB 113 a had forecast that grain yield this year could month with deposits RMB 500 a year over the same period. surpass last year’s 525 billion kilograms, and We wish to cover as many people as possible by setting the lowest level at it would be the fifth consecutive year of high RMB 100, which is affordable for most farmers. For those who are already 60 or grain yield. above, they can receive the RMB 55 monthly subsidy even if they do not put any Earlier this month, attendees of the Cen- money into the account. tral Economic Work Conference agreed that “Farmers in Jilin had an annual income of RMB 4,500 per capita in 2008. China would enhance efforts next year to The pension would be enough for them to get by. In contrast, the old pension plan, promote agriculture development, strengthen which had no subsidy, provided way too little,” Luo said. The account requires produce supply to the market, and expand rural contributions for at lease 15 years or the pensioner will only receive the RMB 55 demand. monthly government subsidy. It was agreed that the government would The new schemes also aim to encourage villages, companies, charity funds strengthen rural policies to increase farming- and other organizations to subsidize pensioners. But specific measures and incen- related subsidies, increase incomes of farmers, tives are yet to be determined as the authorities gain experience from the trial and expand demand in rural areas. Infrastruc- operations. ture construction in rural areas, including The State Council passed a plan in September last year to implement the new reinforcing of large and mid-sized reservoirs, pension plan in 10 percent of Chinese cities, counties and districts as the state as- irrigation facilities, improvements to the power sumes greater responsibility for supporting the elderly farmers who live 71 years grid, and road construction, would be stepped on average and account for more than 60 percent of China’s 1.3 billion population. up, according to a statement from the confer- (China Daily) ence. (Xinhua) Agricultural products prices remain stable amid icy weather

China has maintained a good order in its agricultural products wholesale market since a snowstorm hit the country’s northern areas on January 7. Prices for the agricultural products such as vegetables, pork, and eggs in some major cities including Beijing, Tianjin, Wuhan and Changsha increased following the snowstorm, but they began to decline as transportation re- sumed after the temperature rebounded. The ministry has devoted continuous efforts to the anti-disaster work, including

9 nergy

E Some regions have already proposed consolidation plans for their Shanxi coal shortages the conse- own local coal industries. Tan Yicheng, head of the State-owned Assets Supervision and Administration Commission in Shandong Province, quence of small mine closures - has said that the province will help create several “giant companies” this year and further reduce the number of province-owned companies from industry insider 30 to fewer than 25. He emphasized that the provincial government will push for the restructuring of coal companies this year. Some thermal power plants in central China’s Shanxi Chen Liang, a coal industry analyst with Ping’an Securities, told Province have faced coal shortages after the closure of Interfax that the coal industry consolidation in Shandong Province small coalmines in the province last year, a senior industry has been listed on the provincial government’s agenda. insider told Interfax on January 11. In Shanxi, the government has helped reduce the number of lo- “The large-scale closure of small coalmines in Shanxi cal coal companies from 2,200 to 130 at present. The province now has resulted in a shortage of coal supplies. In 2009, Shanxi has giant coal firms, each with more than 1 million tons of annual only produced around 640 million tons of coal, as compared production capacity, and three local coal producers with more than 50 with its peak annual level of 800 million tons”, Li Jianwei, million tons of annual production capacity each, according to statis- the director of Shanxi Power Industry Association, said. tics released at the NEA press conference. In addition, the number of Li said that below-average temperatures this winter coalmines in the province has fallen from 2,600 to 1,053. has also increased power consumption in Shanxi and con- However, the push toward consolidation has left some wonder- tributed to the coal shortage among some local thermal ing if coal prices will be driven up. Li Jianwei, the head of the Shanxi power plants. Electric Power Association, told Interfax that coal industry consolida- Taiyuan No.1 Power Plant, a large thermal power pro- tion has eliminated numerous small-scale coalmines, leaving fewer ducer in Taiyuan, Shanxi’s capital city, now only has coal coal suppliers for the province’s power plants. This may be the reason inventories sufficient for two days of consumption due to why annual coal contract negotiations are proceeding much smoother the shortages, local media reported. At present, Taiyuan than last year’s talks. No. 2 Power Plant has only 20,000 tons of coal inventories, “Power plants know that they have to sign the contracts quickly far below its healthy level of 100,000 tons. with large state-owned coal producers because they have fewer op- “The Shanxi government recently asked large local portunities to get coal elsewhere,” Li said. (INTERFAX-CHINA) coal firms to quickly expand their production levels to help ease the supply shortages. Hopefully this will work,” Li added. Cold weather strains Beijing’s natural gas Shanxi started shutting down small coalmines in late supply 2008 as part of an effort to improve efficiency and reduce the incidence of coalmine accidents. Over the past year, The volume of natural coalmines with annual production of less than 300,000 gas consumption in Beijing tons have been closed which in turn have raised average Municipality is now close to annual coal output per coalmine from 300,000 tons to over the city’s maximum supply 1 million tons. To date, the number of coal firms in Shanxi capacity due to the colder- has been reduced from the original 2,200 to 130, according than-expected winter, state to statistics released by the Shanxi government last week. media reported on Jan. 9. Nevertheless, Shanxi has paid a heavy price for the From Nov. 1 to Jan. 7 this shut down of the small coalmines now that Inner Mongolia year, Beijing consumed a total Autonomous Region has replaced Shanxi as China’s top of 2.48 billion cubic meters of coal producing region in 2009. natural gas, up 26.5 percent Shanxi’s economic development has also been ma- year-on-year, state-run Xin- terially affected by the reduction in coal output. Its gross hua news agency said. domestic product (GDP) only rose by 0.5 percent year-on- Following heavy snowfall and a cold spell, Beijing’s daily natural year over the first three quarters of 2009, ranking the prov- gas consumption on Jan. 3 climbed to 47.51 million cubic meters, the ince among the worst performing regions in China over the highest level in 11 years. period. (INTERFAX-CHINA) The record daily consumption volume is already close to Bei- jing’s maximum daily natural gas supply capacity of 52 million cubic China to push for further coal in- meters, according to the report. The Beijing municipal government said it is closely monitoring dustry consolidation the situation and promised to prioritize residential gas consumption when necessary, Xinhua said. The Chinese government is pushing for greater con- The China National Petroleum Corp. (CNPC), the country’s larg- solidation of the country’s coal industry following the est oil company, vowed to supply Beijing with no less than 49 million success of similar programs around China, especially in cubic meters of natural gas a day during the winter season. Shanxi Province, state media reported on Jan. 6. Beijing’s natural gas supply comes from the Shaanxi-Beijing National Energy Administration (NEA) Deputy Di- Natural Gas Pipeline that links with China’s second largest oilfield, rector Wu Yin said at a press conference on Jan. 5 that the Changqing Oilfield, which covers five western provinces and autono- agency has submitted a report to the State Council that mous regions including Gansu, Shaanxi, Shanxi, Ningxia and Inner suggests that the country quicken the pace of consolida- Mongolia. CNPC is the operator of Changqing Oilfield. (INTERFAX- tion, Shanghai Securities News reported. CHINA)

10 E nvironment

After a decade of work, Tibet’s environ- China to establish emergency envi- ment shows new promise ronmental management system

Ten years ago, it was impossible to boil an egg in Tibet. The China is speeding up construction of a system for envi- lack of oxygen in the air made the boiling point of water too low for ronmental management to handle emergent environmental proper cohesion of the yolk and egg white. But years of replanting incidents, an official said on December 30. forests and grasslands have restored oxygen into the air, and Tibet- It was revealed by Zhang Lijun, Vice Minister of Envi- ans now enjoy hard-boiled eggs every day. ronmental Protection, when he addressed a meeting on the The Chinese government has paid unprecedented attention to ministry’s priorities in the upcoming year. the ecological construction and environmental protection of Tibet In the year of 2010, environmental protection authorities over the past decade, pouring in 6.7 billion yuan (US$981 million) at all levels should focus on the handling of mass disturbances into the region as part of its China Western Development Plan. The triggered by environmental pollution such as water and soil policy covers 12 western provinces and regions of China, including pollution, and reduce the harm that pollution bring to people Tibet, and aims to bring the areas in line with the more developed as much as possible. eastern China. The environmental protection authorities will also con- Qiangba Puncog, chairman of the Tibet Autonomous Region, duct a two-year nationwide campaign to investigate all pol- said the region has benefited the most from the plan. lution source threats, which will gradually form a dinamic Forests and grasslands are spreading across Tibet like wild- environmental management system, according to Zhang. fire. Since 2004, the government has re-grassed 41.93 million mu Finally, the authorities will strengthen monitor and sur- (2.8 million hectares) and re-seeded 10.76 million mu (713,333 veillance on environmental security in Shanghai and Guang- hectares) of forest in the region. Tibet also has the highest ration zhou to ensure that China could hold a clean World Expo and of nature reserves in China – one-third of its 1.2 million square Asian Games in 2010. (Xinhua) kilometers are protected. UNEP lauds China’s contribution to green economic development

The United Nations Environment Programme (UNEP) has hailed China’s contribution to the promotion of bio-diversity and green economic development. “China has been an active participant in the ‘billion tree’ campaign that UNEP together with Wangari Maathai and IQRAF the World Agro Forestry Centre located in Nairobi launched a few years ago, and China itself planted 2.6 billion trees to contribute to that in recent time,” Angela Cropper, Green economy has become popular on the Qinghai-Tibet Pla- UNEP Deputy Executive Director told Xinhua in an exclusive teau. All projects in Tibet are strictly valued on environmental impact. interview on January 6. Such protection has kept industry and development relatively low. “That contribution allowed the program to achieve the “Our industrial added value only accounts for 8 percent of objective of at least one tree for every living person on earth our GDP,” Qiangba Puncog said. But he noted they also have low before the Copenhagen meeting began,” Cropper said. carbon emissions. The region even gave up its gold dust min- Meanwhile, China is committed to a very high percent- ing industry “to better protect Tibet’s ecological environment,” age of renewable energy in its energy mix. “It is a leader in the Qiangba Puncog said. The region no longer mines for iron sand, development of technology for the wind turbine industry, for either. example, so it has a lot of technological opportunities because Qiangba Puncog also defended the Qinghai-Tibet Railway, of its vast scale,” she said. calling it an “ecological line.” Completed in 2006, the railway was The year 2010 is the international year for bio-diversity the first to connect the Tibetan plateau with inner China. “Con- designated by the United Nations, and UNEP is determined structors put great efforts in environmental protection,” Qiangba to take the opportunity to conduct a large program to promote Puncog said. “Vegetations around the roadbed were first replanted bio- diversity and arouse global awareness, Cropper said. and then restored. Routes are left for animals by building elevated “As a part of that program, we are also trying to work tracks.” with governments and communities to see how we can man- Qiangba Puncog said protecting Tibet’s ecology benefits not age our ecosystems better, so that they can be sustained and just Tibet, but the entire country and continent, as well. Tibet’s we can get the range of services we get from them indefinitely arctic climate makes it sensitive to climate change, which causes into the future,” she said. UNEP will also call on more coun- temperatures to rise before most other places in China and Asia. tries to gradually transform to green economic development It also has a strong impact on the rest of the country’s climate and paths and provide them with relevant supports. environment. As the “water tower” of Asia, Tibet is the cradle of “We have been doing a lot of work on that, assessing the Asia’s seven main freshwater rivers, including China’s Yellow and potential for jobs, for income, for livelihoods and so on within Yangtze rivers. an approached economic development that does not degrade The State Council approved 15 billion yuan (US$2.2 billion) the environment as much as the present approach does, and last February to create a state ecological security shelter zone on we will be trying to expand them to more countries,” she said. the plateau by 2020. (China.org.cn) (Xinhua) 11 p erty ro not have a clear vision for Hainan’s development, and there wasn’t much

P Property sales slump in Beijing demand. The region mainly relied on planned economic development. But after 20 years, the region’s growth has been strongly supported by Government mea- the economic sector. The country also has very good GDP growth, and sures to curb property people’s daily lives have also improved. So there is a huge demand for prices could be hav- developing the province. ” ing the desired effect There is no doubt that Hainan has the best coastal resources for here in Beijing; sales property buyers. But analysts still worry that speculators could leave slumped in the first region with too many empty pre-owned properties. Figures show, that two weeks of the year. some parts of the province are selling more than ten new houses every The number of day. They fear Hainan could sell all its new homes before the Chinese residential units yet to New Year, which could lead to unhealthy development in the region’s be completed, in pre- housing sector. sale stage, that was Xia Feng, analyst of China Institute for Reform & Dev’t, said, “One sold, was down 64 of the reasons that has pushed up Hainan’s property prices is the increas- percent from the same ing number of home buyers from other cities. Many people prefer the period last month, tropical atmosphere here, especially the elderly. They have savings, and while sales of second- the island can be a good choice. Besides, it’s not just Hainan that is suf- hand homes plunged fering from rising house prices. There is room for further price increases, about 73 percent. Buy- but the growth rate is too fast now.” ers are now back to a Analysts say, it’s dangerous for there to be more than 10 percent wait-and-see mood, as of properties vacant in the housing market. But the number has already they wait for any further government efforts to deflate reached over 30 percent or more in some projects in Sanya. property bubbles. Xia Feng said, “There are too many empty houses. One of the rea- Since late last year, the central government has sons is because there is too much speculation in the market. Once de- taken a series of measures to prevent house prices from mand starts falling, housing prices will fall. This will cause huge losses soaring. Prices began to rise from February last year, for speculators.” hitting an 18-month high nationwide in December. (cctv) Hainan housing sector booming

A recent State Council decision to transform Hain- an into a top travel destination over the next decade has injected new vigor into real estate on the island. But with most purchases being speculative in nature, many units are bought but not occupied. And that has prompt- ed concerns of unhealthy growth in the market. China’s decision to develop Hainan Province into a top international tourism destination has given the property sector a big boost. The island is seeing an increasing number of home buyers. Ms Wang, home buyer from Changchun, said, “The weather in Hainan is good for people from the northeast. But prices in Haikou are to high now, so we’ve Analysts say it’s reasonable for the region to launch macro control come to Qionghai instead.” measures to prevent too much speculation in the real estate market. And Su Wu, Property developer of Qionghai City, said, tightened market controls could stop the region from having housing “We’ve got lots of interested buyers from Beijing. If I bubbles. Since the country is turning the island into a premium travel have to describe our clients, I would say they are like destination, they believe the region’s property sector will become health- supermarket customers. All the people in the property ier in 2010. (cctv) sector have the same feeling. Too many people are calling us for information. They are buying houses as if they are buying vegetables. ” Shenzhen home sales slump in January Mr Su Wu says, the average property price in QiongHai was only 2,000 yuan per square meter in In Shenzhen, sales of second-hand homes have also fallen sharply August last year. But now, the price has jumped to 6,000 so far this month. Last week saw transaction volumes drop below 1,700 yuan per square meter. Many unfinished projects have units, down 70 percent from just a week before. already been sold. But it’s the opposite for prices and sales of office buildings and com- Property developers say, nearly 80 percent of the mercial properties. These have more than doubled. Industry insiders say buyers in Hainan are from outside. Many buyers fear if the lull in residential properties follows a frantic rush into the market at they don’t act quickly enough, they could end up with the end of last year with demand naturally falling off with the start of the limited options. New Year. In fact average housing prices in the city remain unchanged. Zhang Xiaoyi, general manager of SH Pinghai As in Beijing, it’s a wait-and-see attitude for most, with analysts expect- Investment Co LTD, said, “In the early 90s, China did ing a pick up in second-hand housing sales in March. (cctv)

12 s teel

record high in Aug; and the production level reached Capacity of China’ s steel enterprises shift to 600million tpy in Jun-Oct, when steel price rebounded largely. It’s estimated that China would produce oversea collectively 565m tons of crude steel in 2009, up 13% y-o-y. Steel price presented two rounds of sharp fluc- Entering in 2010, China’s steel enterprises still face with great chal- tuations in 2009, presenting a “W” contrail. Domestic lenge, on one hand, they are deadlocked in the iron ore negotiation, one the steel price composite index went 107.2 at the end of other hand, they should eliminate the obsolete capacity with the country’ s Dec, 2009, up 3.8 percent y-o-y. Under the situation, industry policy. the general benefit of steel industry improved. Till Recently it is reported that some large-scaled steel enterprises of the end of Nov, China’s large and medium-size mills China began to shift the capacity to the iron ore producing areas in a bid accumulatively realized 44.8b yuan of profit, though to cope with the current state. Experts of China Iron & Steel Association showed a y-o-y 62 percent decline. MIIT noted that (CISA) analyzed that it is a big trend that China’ s steel firms shift capac- the state raised steel product export rebate for three ity to overseas, even principals of steelmakers believed that it is the latest times, decreased the related export tariff and ad- policy to deal with the monopoly of the oversea ore giants. vanced the tariff for primary products in 2009. By the Although the iron ore price negotiation is still serious, Huang Tian- action of the above-mentioned adjustment, the steel wen, chairman of China Steel (CSC) said as the global ore deposits are export straightened up since Jun, 2009 and showed found and exploited, the demand and supply of iron ore is relieving. m-o-m growth for 7 straight months. Sun Yong, an Huang believed that the capacity of steel enterprises to iron ore produc- analyst of Galaxy Securities expected steel export ing areas will weaken the dependence of China on iron ore suppliers of would continue the recovery and post at 30m ton in Vale, Rio Tinto and BHP Billiton. 2010, occupying 4 percent of the total outputs. The Reporters learned that CSC is establishing a JV enterprise with Indian net export of steel products was expected to be 11m firm, which is set to develop iron ore mines, but it will expand to ore pro- tons in 2010. cessing and steel mills’ establishment according to the plan. Except CSC, In addition, MIIT noted that the revitalization Baosteel and WISCO also set up steel mills in Brazil and etc.. plan also boosted the merge & acquisition in steel According to the information, presently WISCO has constructed eight industry in China. Baosteel signed to buy in Ningbo branch firms in Japan, German, Australia, India and US. With the plan, the Steel on Mar 1; Shougang inked agreement to re- branch firms of WISCO will reach to 10-12 units oversea till 2010. Except group Changzhi Steel; Shandong Steel and Rizhao large state-owned enterprises, small steel firms also tend to shift capacity Steel came to the regrouping agreement on Sep 6. to oversea. These M&A improved the industrial centralization It is learned that private enterprises have set the small-scaled up by 2 percent. (Mysteel.com) production line in India. Besides, the steel firms who shift capacity to oversea prefer to iron ore producing areas, such as Brazil, Australia and etc.. Auto market to push steel de- To shift capacity to oversea can be regarded as a makeshift of China mand up 12% in China steel enterprises which passed domestic policy of steel industry. Since 2003, the state issued measures to restrict China steel enter- China’s booming auto market demand may push prises’ capacity. On May 14 of 2009, Ministry Industry and Information steel demand in the country by 12% this year, lifting Technology (MIIT) released notice about curbing the fast growth of steel the prices of iron ore, according to Bloomberg report, production which is taken as the most serious order by the industry. citing an industry expert. It is no doubt that steel industry is listed to be the main target to Domestic crude steel consumption may in- suppress the capacity, while capacity shift to oversea can pass the policy crease to 606 million metric tons in 2010, following and continue expanding. Insiders of Shougang revealed that the acquisi- a 14% gain this year to 541.4 million tons, said Luo tions and mergers will be the tendency in the steel industry, which is a Wei, a Shanghai-based analyst with China Interna- means for enterprises to be strong. Xu Lejiang, chairman of Baosteel also tional Capital Corp. Benchmark contract prices for said repeatedly that in the future ten years, the production core of global iron ore, used in steelmaking, may rise 15% to 20%, steel firms will shift to developing and emerging countries and the scale he said. development will become the tendency, added the competition of steel Steel prices in the country have risen 10% from industry will spread from enterprises to the whole supply and industry last year’s Oct. 15 low as manufacturers and traders chain. (MetalBiz) deplete stockpiles and mills raise prices because of rising costs. Automobile and property sectors would Steel industry turns losses into profits on re- be the big engines to drive up steel demand in 2010, the expert said in a report. vitalization plan China’s auto demand will have “high growth rates” this year, and there’s “good prospects” for China’s steel industry gradually got out of the bottom in 2009; Do- home appliance demand as the Chinese govern- mestic demand increased; steel production came back to grow again; ment boosted rural sales with its stimulus spending, steelmakers’ benefits presented improvement, showed by the new statistics Baosteel, the largest Chinese steelmaker, said. released by Ministry of Industry & Information Technology (MIIT) on Jan The steel price revival will hamper China’s 12. A better situation comes out since the releasing and actualization of ability to bargain contract iron ore prices paid to Rio the revitalization plan in steel industry, news carried on Shanghai Securi- Tinto Group, BHP Billiton Ltd. and Vale SA. Prices ties News The statistics suggested that steel outputs recovered swiftly in may jump 14% in 2010 to the second-highest on re- 2009, driven by the state’s policy package. The crude steel output hit the cord, according to Bloomberg News. (Gasgoo.com)

13 UTO A

Guo Yong, manager of Beijing Yayuncun Auto Market, said, “Demand China’s auto sales in 2010 may will keep growing this year. So supply will still fall short of demand in the short term.” reach 15 mln units Meanwhile, many automobile manufacturers plan to raise production by more than 10 percent, as they look forward to strong sales for the year. China’s auto output and sales this year are expect- The Shanghai Automotive Industry Corporation plans to produce and sell 3 ed to rise about 10% to 15 million units, Xinhua News million vehicles this year, up 13 percent. While FAW group is also upping reported on January 11, citing an industry official. production by 13 percent. In 2010, the Chinese government will continue Zhou Wenjie, Vice General Manager of Dongfang Auto, said, “Auto to support the auto industry, which is seen as a pillar makers are optimistic about this year’s auto market. We hope to maintain of the national economy, said Dong Yang, executive 10 to 15 percent growth.” vice president and secretary general of the China As- According to the China Automobile Industry Association, growth in sociation of Automobile Manufacturers (CAAM). the auto industry will stay high until 2020. The total number of vehicles Vehicle sales in China last year surged 46.2% will go up from 67 to 150 million. High growth areas will move from east- to 13.6 million units, boosted by tax cuts for small ern China to central and western regions. (CCTV.com) cars and subsidies for clean new vehicles. The record sales in China coincided with the lowest sales of 10.4 million light vehicles in the U.S. since 1982. Chinese carmaker back at Detroit auto show China’s auto market is expected to retain the China’s car- world’s No. 1 position this year and exceed sales in makers are becom- the U.S. by at least two million vehicles. But it prob- ing regular fixtures ably won’t repeat last year’s strong sales. at international A scaling back of government stimulus may auto shows, and precipitate a slowdown. One year ago China halved China’s BYD Auto (to 5%) the sales tax on cars of 1.6 liters or smaller. Inc. is back in De- But this year, buyers will pay 7.5% instead of the 5% troit for the second rate. year in a row. Auto sales in China over the past 15 years have BY D,wh ich grown an average 16.7% annually, the official said. stands for “Build Sales in 2008 totaled 9.4 million vehicles, up 6.7% Your Dreams,” is from a year earlier. (Gasgoo.com) displaying its e6 battery-powered electric sedan at the North American International Auto China’s automakers to raise Show this week and hopes to sell it in the U.S. later this year. BYD is one of China’s most ambitious carmakers, proclaiming at last production 13% this year week’s show preview for media that it aimed to become China’s No. 1 auto- maker by 2015-and the world’s biggest by 2025. Strong car sales in China last year pushed the About half a dozen Chinese automakers, including Shanghai Au- auto market to number one spot in the world. And tomotive Industry Corp., BYD Auto, Geely Automobile Holdings and 2010 looks set to continue that rosy trend, with car- Chery Automobile, have the ambition and potential to develop the capa- makers confirming that they’re upping production by bilities to produce vehicles that can be sold anywhere in the world, ana- as much as 13 percent to cope with intense demand. lysts say. Beijing Yayuncun Auto Market, the largest auto This year, BYD is the only Chinese carmaker staging a full display at market in northern China, is still seeing as many cus- the Detroit show. tomers as it did last year. Despite a hike in purchase Many industry and financial experts view it as one of China’s most tax for smaller cars, many buyers are still keen to promising contenders. In 2008, U.S. billionaire Warren Buffett invested drive home a new car before the spring festival. $232 million in BYD, taking a 10 percent stake. A car buyer said, “I want to buy a car for family BYD is a newcomer to the car business-and it doesn’t look like a use. The hike in purchase tax means paying about a threat to the likes of Toyota Motor Corp. today. But Michael Dunne, presi- thousand yuan more, acceptable to me.” dent of Hong Kong-based Dunne & Co., notes BYD already competes Since the beginning of the year, many auto deal- successfully on the international stage as a manufacturer of laptop and cell ers have adjusted their prices, and the market is see- phone batteries. ing a decline in overall prices. That has countered a BYD branched out into car making in 2004, and has expanded quick- hike in taxes. ly, selling 450,000 vehicles last year. Its technology has attracted high-level A dealer said, “Car prices have gone up 2,000 attention: In 2009, Germany’s Volkswagen AG said it was exploring coop- yuan since last year. But the average price is still eration with BYD in battery technology. down one to two thousand yuan.” Although some other Chinese carmakers did not return this year to the Last year China adopted various measures to Detroit show, that’s not because their industry is retrenching. stimulate auto consumption. 7 million cars with en- Analysts say some Chinese automakers are adjusting their strategies, gine sizes below 1.6 liters were sold, up 71 percent either to focus on their surging domestic market or to improve their capa- compared to the previous year. At the same time, bilities by acquiring brands from cash-squeezed global automakers. measures to encourage auto sales in rural areas by “China will compete in global markets,” Kevin Wale, president of providing subsidies for replacing old cars with new General Motors Co.’s GM China, said, “It’s not a question of if, but when.” ones will further boost demand. (Detroit News) 14 E lectronics

wide factory shipments of smartphones are expected to rise about 28 percent in China Mobile says vice chair- 2010, according to iSuppli. (Reuters) man being investigated China Mobile will introduce 4G Network later China Mobile Ltd, the world’s biggest phone company by subscribers, said on Decem- this year ber 28 its deputy chairman is under investigation for unspecified offenses. Zhang Chunjiang Later this year, China Mobile will be the first in the world to introduce is being investigated “due to suspected serious their 4G mobile communications network. On January 17, it was announced personal violations,” the company said in a that China Mobile plans to introduce their 4G mobile communications network statement issued through the Hong Kong stock at the Shanghai Expo held in May. Once it is introduced, they plan to provide exchange, where its shares are traded. It gave no a trial test for users from May to October. It is uncertain at this point if the ser- details. vice will be a success. Zhang is vice chairman and an executive 3G mobile communications networks are director of the company. Zhang joined China established in numerous countries worldwide, Mobile in May 2008 after serving as chairman of but China will be the first country to introduce China Netcom Ltd, a fixed-line carrier that was a 4G network service. However, many countries merged with another phone company in an indus- are planning to follow up with this new service try overhaul last year. He also is a former director soon. of the telecoms department of the Chinese minis- China Mobile’s 4G mobile communication try that oversees the industry. network uses a 4th generation system known as China Mobile reported a profit of RMB 83.9 TD-LTE (Time Division - Long Term Evolution). billion (US$12.3 billion) for the first nine months This is an upgraded version of the 3rd generation of this year but said earnings growth was slowing system known as the TD-SCDMA. It has been an- due to competition. The company says it has 518 nounced that the transmission speed of TD-LTE million mobile accounts. (Xinhua) is 20 times faster than the 3G communication network. (koreaittimes) Motorola plans 5-6 smart- ZTE supports aid efforts into Haiti phones in China this year ZTE Corporation (“ZTE”), a leading global provider of telecommunica- “In China, we’ve already launched two mod- tions equipment and network solutions, today announced that it has delivered els last month, and there will be another one very solar-powered handsets and its GoTa trunking system to the Haiti government very shortly, and probably another four or five to provide much needed communication equipment needed for aid efforts for later,” John Gherghetta, Corporate Vice President the victims of the earthquake that hit Haiti on January 14. The Company has and General Manager of Mobile Devices Busi- confirmed that its 11 employees stationed in Haiti are safe and in a healthy con- ness, told reporters in Seoul. dition. ZTE has contacted the employees’ families to keep them informed of Motorola is betting on smartphones after the current situation. losing market share to rivals for more than two Immediately after the disaster, ZTE established a disaster response team years and has reorganized its mobile business to work with its Haiti office to develop and provide a relief program for Haiti’s around developing phones running on Google‘s earthquake victims. The team is focused on providing expert communication Android operating system. Gherghetta was infrastructure advice and is composed of ZTE’s executive vice presidents and speaking at a news conference for the launch of technical experts. its ‘MOTOROI’ smartphone in South Korea, to With the local electricity and power infrastructure destroyed by the earth- be offered by SK Telecom. quake, priority was given to provide solar-powered handsets that could be ef- The new model has a bigger camera and fectively used by relief agencies on the ground. The first batch of 1500 ZTE’s more media features than its Droid model sold GSM solar mobile phones were dispatched to Haiti from Jamaica in the morn- in the United States, according to Motorola. ing of January 15, 2010. “There will be a version of this phone in China Furthermore, in response to the local government and communication in the first half,” Gherghetta said. He declined to operators needs, ZTE will also provide the Haiti government its 8900 Series identify which Chinese operator would offer the 800MHz GoTa digital trunking base stations and temporary-use mobile diesel new model. Spiros Nikolakopoulos, Vice Presi- engines. The company has shipped the first batch of 300 GoTa terminals as part dent of Mobile Devices in charge of Asian and of the disaster relief program to help the local community with important tele- international retail distribution, said Motorola communication needs. was planning “at least” 20 models across the Previously, ZTE also donated its GoTa equipment for China’s Sichuan world this year, “probably four to five in every May 12, 2008 earthquake, where it played an outstanding role in the relief country.” program. According to ZTE, their 11 employees stationed in Haiti were Motorola executives also said it was open out shopping during the earthquake and thus escaped from the disaster un- to developing devices with other platforms, such harmed. The company stressed that the safety of their overseas employees is as Microsoft’s Windows Mobile. Partner China of paramount importance. Moreover, ZTE expressed that they would coordi- Mobile in October said it would introduce eight nate with the Chinese Embassy, the local government in Haiti, peacekeeping smartphone models from Motorola this year us- forces as well as the local operators to participate in on-going earthquake ing a lower-cost platform called OPhone. World- relief services. (C114) 15 ONSUMER per year with an estimated output value of RMB 16.9 billion (US$2.48 billion). Zhejiang branded prod- Its initial phase is expected to be put into operation in August 2010 and start mass c uct fair unveiled in Ma- production at the end of 2011. The second phase will start mass production one year later. TCL, founded in 1981, sold 14.28 million color TVs globally last year. Shenchao cao Investment, owned by the Shenzhen government, runs businesses including investment in projects related to integrated circuits and flat screens. (Xinhua) The opening ceremony of the Zhe- jiang’s China Time-Honored Brands and Zhejiang Macao Branded Products E-book sales to explode in China Fair 2010 were held here on January 15, Chinese hi-tech firm Hanwang Technology said it expected shipments of its e-book where various products from China’s readers to increase 400 percent this year, as demand for the portable reading device Southeastern province were exhibited. grows both domestically and overseas, the China Daily reported on January 7. More than 4,000 items of long- The company plans to sell 2 million e-book readers this year as compared with established and famous brands will be 500,000 in 2009, the newspaper quoted Liu Yingjian, president of Hanwang as say- exhibited at the three-day fair by 110 ing. According to research firm Display Search, China’s e-reader sales will grow from enterprises from the Zhejiang province, 800,000 units in 2009 to 3 million units this year, accounting for 20 percent of global and the products on display covered five e-reader sales, the newspaper said. diverse areas, including Chinese tradi- Hanwang claims to control 95 percent of China’s e-book market, and 20 percent tional medicine and health care, food and of its products were sold abroad, mainly in Russia, Italy and Spain. According to Liu, beverage, general merchandise, cultural foreign revenue will make up 40 percent of Hanwang’s total revenue this year, as it pro- arts and crafts, tea products and art. vides a cheaper alternative to Amazon’s popular Kindle e-book reader. Amazon, Sony The fair will further enhance the and Samsung are currently the world’s top producers of e-book readers, yet none of their trade, economic and cultural exchange products are officially available in China, partly due to the lack of support from domes- between Macao Special Administrative tic telecom carriers and opposition from copyright holders, the newspaper said. (Xinhua) Region (SAR) and Zhejiang province, said Jin Yonghui, director-general of department of commerce of Zhejiang. S Korea’s Samsung Electronics reports highest quar- He also said that the objective of hosting this event in Macao is to learn terly sales ever in Q4 from the SAR’s trade and economic experience, in a bid to deepen Macao South Korea’s Samsung Electronics Co. on January 7 reported the highest quar- and Zhejiang’s business and economic terly sales ever in the fourth quarter last year. exchange and cooperation. The world’s largest maker of memory chips and flat screen TVs said its consoli- Aside from the fair, a photo exhibi- dated fourth-quarter sales is expected to reach a record 39 trillion won (34.5 billion U.S. tion and a Zhejiang product center was dollars), up 18.2 percent compared with 33 trillion won (29.2 billion U.S. dollars) over also unveiled on the same day, which the same period of 2008. were all parts of the 2010 Macao-Zheji- The previous record was set in the third quarter of 2008 at 35. 9 trillion won (31.7 ang Week, a business promotional event billion U.S. dollars). However, the company saw its consolidated fourth-quarter operat- organized by the provincial government ing profit drop 12.5 percent to 3.7 trillion won (3.3 billion U.S. dollars) from 4.23 trillion of Zhejiang. (Xinhua) won (3.7 billion U.S. dollars) in the third quarter. Samsung Electronics started disclos- ing quarterly earnings from last July and it plans to reveal its fourth-quarter report later TCL starts to build $3.6 this month, the Yonhap news agency said. (Xinhua) bln 8.5G LCD production Taobao.com to team up with Hunan TV for television line business

China’s top appliance maker TCL China’s biggest online retailer Taobao.com plans to set up a joint venture with on January 16 started building a 8.5- broadcaster Hunan Television, in a move to expand its portfolio beyond online shop- generation LCD production line in the ping, the China Daily reported on December 30. southern city of Shenzhen to meet the The new company, with a total investment of RMB 100 million (US$14.64 mil- rising demand for flat-screen TVs. The lion), will produce TV programs related to online shopping and launch a new channel plant, in which TCL and Shenchao Tech- for selling products through the online retailer, said the newspaper. nology Investment Company each hold a “The joint venture is our attempt to combine the Internet and television, and find 50 percent stake, involves an investment a new way to develop both, “ Jack Ma, founder and CEO of Alibaba Group, the par- of RMB 24.5 billion (US$3.6 billion). It ent company of Taobao.com, was quoted as saying. The company has joint forces with covers an area of 600,000 square meters. Wasu Digital TV Corporation Ltd.earlier this month to develop a TV-based shopping The fund includes RMB 10 billion channel, which is expected to be launched in the first half next year, according to the from TCL and Shenchao, bank loans and newspaper. also investment from domestic TV mak- “Taobao.com. is trying hard to reach more potential customers by covering differ- ers and overseas LCD panel producers, ent media platforms,” Cao Fei, an analyst with research firm Analysys International, the two investors said. The plant has a was quoted as saying. Taobao.com now has 180 million registered users, accounting for full capacity of 14 million LCD panels almost half of the 380 million Internet users in China. (Xinhua)

16 T extile

Shandong will foster 14 ten bil- Intertextile to take place during hottest fash- lion Yuan textile clusters ion seasons

China Linen Textile Industry, Ltd. a China- The 2010 edition will feature a preview of the latest products, design based company engaged in the production and sale and information in the world of apparel fabrics and textile related products. of linen yarn and various types of linen fabric, an- More importantly, the business platform will offer access to the best buyers nounced today that its wholly-owned subsidiary, from some of China’s largest apparel related manufacturing metropolitans Heilongjiang Lanxi Sunrise Linen Textile Industry such as Shandong, Jiangsu, Hubei, Hebei and Henan, which are all located in Co. Ltd., has signed a contract with an Italian com- close proximity to Beijing. pany to deliver approximately 1.4 million meters of China’s luxury market continues to expand semi-bleached linen fabric. The contract is valued The mass population in China provides huge market potential for zup- at approximately $3.05 million. The first shipment pliers of all kinds fabrics. According to the World Luxury Association, will occur in December 2009 and continue through China has surpassed the US luxury market and is the second largest one five total shipments to be completed in May 2010. after Japan, spending over US $8.6 billion on luxury brand name products in Tanny Tex S.R.L., based in Prato, Italy, is a 2008. This massive consumer spending is predominantly male-driven, with leading seller and distributor of linen and knitted international apparel brands dominating the menswear sector, resulting in a fabrics in the northern Italian region. China Linen market rich with opportunity for high-end fabric suppliers, especially cottons Textile provides the entire Tanny Tex inventory of and wools. linen products and has serviced the Italian com- China’s luxury good consumer also mainly belong to the 20-40 age pany for five years. group, meaning that luxury spending will no doubt continue to rise. In fact, Mr. Gao Ren, chairman and chief executive experts predict that China will overtake the Japan luxury market within the officer of China Linen Textile Industry, stated: “We next five years. have enjoyed a productive and growing relationship Not only is international luxury brand consumption on the rise in Chi- with Tanny Tex for five years, and this year’s order na, but also more and more domestic luxury brands are trying to move up the showed an increase of 10% over the same period last value ladder by adopting imported textiles, design and technology. year. Tanny Tex is continuing to expand its business, Concurrent events offer crossover of potential buyers which will result in higher production and sales for The fair’s location in Beijing presents apparel fabrics and textile related China Linen Textile in 2009 and 2010. This large or- suppliers a perfect opportunity to reach out to quality buyers in this region. der demonstrates our commitment to producing the The city is well known for it’s successful shopping environment, with retail highest quality fabrics and the speed and efficiency sales exceeding US$37 billion in the first half of this year, according to the of our production process.” (CTEI NEWS) Beijing Commission of Commerce. Intertextile Beijing (30 March - 1 April 2010) also takes place during the region’s hottest fashion seasons, and runs concurrently with China International Clothing and Accessories Fair (CHIC) from 28 - 31 March 2010 and Yarn Expo Spring from 31 March - 2 April 2010. Free shuttle bus service will be provided for all three events. Messe Frankfurt has two special incentive offers when exhibitors sign up for Intertextile Beijing 2010. (Messe Frankfurt) China issues larger cotton import quotas for 2010

China, the world’s largest cotton consumer, has issued the first batch of 1.89 million tonnes of cotton import quotas for 2010, as it aims to ease supplies ahead of an expected low domestic harvest. Of the total amount, a quota of 1 million tonnes of cotton could be imported according to a sliding tariff rate, while imports of 894,000 tonnes would be taxed at a fixed 1 percent, said the China Cotton Association on its website (www.china-cotton.org). The amount was in line with market expectations following the recovery of textile production, while China’s own cotton production was projected to fall short of demand by about 2 million tonnes. “Many mills have been active signing import contracts, not only from the United States, but also from India,” said one cotton trader with an international trading house. China expects its cotton production to fall by more than 10 percent this year from last year’s 7.5 million tonnes. Beijing has been releasing cotton from state reserves this year to cover demand from textile mills, which have seen export growth slow most of the year amid the global financial crisis. China, the world’s largest buyer, imported 1.31 million tonnes of cotton in the first 11 months of the year, a fall of 33 percent from the year-ago period, official Customs figures showed. (Reuters)

17 tion a World’s highest airport planned in High-speed rail network set to take global Tibet lead

r a ns p ort China will set a new record for the world’s highest China is well on

T airport with an airport planned at an altitude of 4,436 its way to becoming meters, the regional civil aviation director announced on the high-speed railway January 12. capital of the world, Xu Bo, director of the Tibetan Branch of the China with 33,000 km of Civil Aviation Administration, said the airport, planned these railways currently for Nagqu Prefecture, would be 102 meters higher than under construction and Bamda Airport in Tibet’s Qamdo Prefecture, which has about 70 projects slated been the world’s highest airport since its completion in to launch this year. 1994. By the end of Xu Jian, director of the Nagqu Committee of Devel- 2012, China’s high- opment and Reform, said construction of the airport had speed railway is ex- been included in the Tibet’s development plan. The com- pected to account for half of the world’s total length. mittee was working on site selection for the airport. Currently, 2.1 trillion yuan ($300 billion) worth of rail construc- “The airport construction is planned for 2011 with a tion projects are under way. construction period of three years. It is expected to cost 1.8 In the next three years, 26,000 km of new lines, including 9,200 billion yuan (263 million US dollars) and cover an area of km of high-speed lines, will be put into operation to ease the pressure 233 to 266 hectares,” he said. on the country’s overburdened rail network, said Liu Zhijun, Minister He said this airport, the sixth in Tibet, would be of Railways. named Nagqu Dagring Airport, after the area of its ex- China’s dominance in the high-speed railway market is remark- pected location. able, said Yang Hao, professor in railway transport with Beijing Jiao- Xu said all of Tibet’s six prefectures would have an tong University. airport on its completion. “No matter the length of high-speed railways, or the operation “The civil aviation network in Tibet has taken shape. speed of our high-speed trains, China now dwarfs other countries,” The objective for the next stage of development is to open di- Yang said. rect air routes from Tibet to south Asian countries,” he said. Though many of the advanced technologies used in high-speed Nagqu, about 300 km from Lhasa, capital of Tibet, railways were imported from France, Japan and Germany, “China has is located in the center of the Qinghai-Tibet Plateau. The learned them fast, and China also has its advantage in industrial inte- predominantly Tibetan populated prefecture has a popula- gration”, he said. tion of 400,000. By 2013, 800 bullet trains will be churned out to zip through the Nagqu was chosen to host the largest logistics center cities at a speed of at least 250 km/h, the minister said. Also, a new- in the plateau region, which began operations in August generation high-speed train, which insiders said is built to run up to 380 last year. km/h on the future Beijing-Shanghai high-speed link, is also expected to “With the airport, Nagqu, which is also on the Qing- roll off the production line and complete comprehensive tests this year, hai-Tibet railway line, is expected to become the center of he said. an economic hub in the plateau region,” said Tan Yong- The country should also clinch more deals in the global railway shou, commissioner of Nagqu Prefecture. (Xinhuanet) market this year, the minister said. This is the first time the goal is put into the minister’s annual China to see 29 mln travel by air work report, which reviews achievements in the past year and sets new goals for next year. during Spring Festival Liu urged various railway enterprises to go out as a whole to establish and promote China’s rail standards and forge its rail brand. Airlines in China are expected to carry close to 29 “Based on our technology and industrial integration advantages, million passengers during the Spring Festival holiday pe- we should try to boost international cooperation this year,” he said. riod, which falls on Feb. 14 to Feb. 21. this year, according China launched its first 350 km/h high-speed railway between to the General Administration of Civil Aviation of China Beijing and Tianjin in August 2008 before the Beijing Olympics. Late (CAAC) on January 8. last month, China’s first long-distance high-speed rail, the 1,068-km The air passenger flow totaling 28.94 million will be Wuhan-Guangzhou railway, was also put into operation. 12.5 percent more than last year’s same period, the busiest So far, State leaders and delegates from more than 100 countries time for transport companies as many Chinese rush back have visited the Beijing-Tianjin high-speed rail, and many have ex- home for family reunions. pressed interest in cooperating with China to build high-speed rail. The administration urged airline companies to make Last year, China signed memoranda of understanding with sev- proper arrangements of flights, in a bid to ensure a smooth eral countries, including the United States and Russia, in high-speed passengers flow and transportation of important goods for rail cooperation. the holiday. Experts said China stepping ahead of these countries in develop- It also asked the airline operators to pay close atten- ing low-emission high-speed railways could help it attract potential tion to the weather condition and airline operation and partners. improve contingency plans in case of flights delays. (Xin- The cooperation is also “never one way”, as both sides can benefit huanet) from the cooperation, Yang said. (China Daily) 18 C ULTURE

January 4th was the first working day after the New Year holi- Culture industry in booming dev’t day, and the staff of the Foreign Language Teaching and Research Press were busy working on editing a 50-episode television series that in 2009 teaches foreigners how to speak Chinese. The series will be aired in 45 European countries in February. Despite 2009 being the year of the Great Recession, In 2009, the Foreign Language Teaching and Research Press it was a good 12 months for China’s culture industry. With collaborated with a dozen internationally renowned publishing en- banks upping loans to this sector, it not just kept pace with terprises, such as Oxford, to publish more than one hundred Chinese overall economic growth, it topped expansions in GDP in language teaching materials. the first five months of the year. The annual Frankfurt Book Fair, which took place from October TV producer Li Gongda has a great deal to be happy 13th through the 18th in 2009, is a fitting example to illustrate. (cctv) about, with productions by his company, “Lotus Lantern Prequel” and “Pigeon Whistle”, getting good ratings across the country. Also, the company has managed to get 15.5 Shaolin Temple goes commercial million yuan in loans from the Bank of Communications to help them fund filming for the year. Li Gongda, Producer of Beijing Tianxingji Flim & Culture Broadcasting said “A zero-mortgage loan is actually a recognition of the value of the culture industry. I think this is significant.” Zhang Xin, GM of Retail Credit Management Depart- ment, BOC (BJ Branch) said “We have issued 369 million yuan of loans to 20 companies. As a result, some medium and small-sized cultural companies have developed very fast.” By the end of last year, several domestic financial institutions such as Bank of China and China Minsheng Bank had provided hundreds of billions of yuan in loans to culture-oriented companies, easing the usual problems with financing. In the first five months of last year, the culture industry grew at 17 percent, faster than the expansion of both GDP and the service industry. Last year, the culture industry in Shandong province exceeded 100 billion yuan. While in Jiangsu, that sector has maintained a close to 30 percent growth rate in four consecutive years. Liu Yuzhu, Director of Cultural Industry Depart- ment, Ministry of Culture said “2009 was a transition year for development in this industry. With overall economic development, demand for culture has also grown. With the help of central and local governments, we expect continued strong development.” When people think of temples, they usually associate them with 2009 has seen the sale of 6 billion yuan of film tickets, religion and culture. But China’s famous kung fu shrine in Henan an increase of 40 percent year on year. The news publish- Province has become a hot business topic, eliciting both surprise and ing industry has also seen its output hitting 1 trillion yuan criticism. last year, up 20 percent year on year. Also last year, the The 1982 movie Shaolin Temple, starring Jet Lee, introduced State Council issued a revitalization scheme for the culture the ancient temple to a modern worldwide audience. In restoring the industry, the first time development in this sector has been kung fu shrine, many quickly realized its commercial value. But the recognized as strategically important. (cctv) fabled monastery was not a public topic until Shi Yongxin became its youngest abbot in 1999. He began to run Shaolin as a brand, including China’s publishing industry reach- setting up a movie-making company, developing a Shaolin hygienic drink and opening an online shop. ing out His most recent controversial move was to act as an agent for other temples in the country. Shi Yongxin was then named by the China’s publishing industry experienced a fruitful media Shaolin Temple’s CEO. The rumor that the Shaolin Temple year of stepping onto the global arena. In 2009, China real- would soon be listed first appeared in the press five years ago. The ized its “going-out” strategy, which encourages Chinese latest version, which has been denied by the local government, is that publishers to export more book copyrights abroad in a bid the temple will go public in 2011 in a joint-venture with China Travel to promote Chinese culture. Service Hong Kong. In the New Year, the General Administration of Press The so-called Shaolin CEO has not commented on the reports. and Publication drafted a proposal concerning the develop- But one clue as to his attitude can be found in a statement he made in ment of China’s publishing industry. It says that the ad- 2008. At the time, he said that the Shaolin Temple will never be listed, ministration will back more and more domestic publishing because speculative transactions violate the tenets of Buddhism, and enterprises to break into the overseas market. that in any event the Shaolin Temple has enough capital. (cctv) 19 fied its investment strategy by shifting from investing in financial firms to China to continue promoting energy and resource-related companies. nvestment Lou Jiwei, chairman of the fund, said earlier that such a strategy was I inbound, outbound investment aimed at hedging risks brought by growing expectation of inflation and the purchasing of financial products. The Chinese government will continue encour- More than US$10 billion of the fund was poured into nine investments aging outbound investment while attracting foreign last year, mostly in energy and resource-related sectors. This compares with investment in 2010 for “stable and relatively fast” the US$8.7 billion and US$4.8 billion it invested in 2007 and 2008 respec- growth of the country’s economy, a government of- tively, according to investment statements released by CIC. ficial has said. After the initial embarrassment of heavy losses on investments on Wall Outbound investment, or “go-global” strategy, Street, the fund appeared to have turned around successfully through mak- should aim at making use of overseas resources, ing a string of overseas investments in energy and resource-related sectors market and advanced technologies, so as to help fa- and streamlining its management team. cilitate development of China’s domestic economy, In late November last year, the fund invested HK$5.5 billion in China’s Zhang Xiaoqiang, vice minister in charge of the leading green energy supplier GCL-Poly and spent US$400 million to be- National Development and Reform Commission. come the cornerstone investor of Longyuan Power Group, Asia’s second The remarks were made at a conference held largest power producer. in Beijing on foreign investment on December 11. CIC’s massive investments in US financial giant Morgan Stanley and In the first three quarters of 2009, China saw its Blackstone soured in 2008 when the global financial crisis was at its worst. investment overseas at US$32.87 billion, up 0.5 (China Daily) percent year-on-year, according to the Ministry of Commerce (MOC). The country would also continue to attract for- China encounters growing trade protection- eign investment, he said. “Social stability, huge potential market and low cost of productive resources ism charges from EU are still advantages for foreign investment,” he said. The country would see more advanced tech- The EU initiated seven new trade remedy investigations last year on nologies and talents from foreign countries and Chinese exports. foreign investment would better serve the structural It is said, citing the Ministry of Commerce (MOF), that the figure was reform of the country’s economy. one more than the previous year, accounting for over 50 percent of the cases Zhang said the government would stress na- the region launched worldwide. tional economic security while seeking to increase The cases included aluminum wheels, scanners and ironing boards ex- foreign investment. “We have to properly handle ports, the newspaper said. A statement of MOC said that high unemployment new challenges and situations when further opening rate might have forced European industries to resort to protectionism. sectors, including finance and telecommunications.” China and the EU need to engage in more frequent dialogues and work (Xinhua) together to identify win-win solutions in the current financial climate, said Cheng Yongru, a division director at the Bureau of Fair Trade of MOF. (Xin- Economic stability boosts CIC hua)

China Investment Corporation (CIC), the nation’s US$300 billion sovereign wealth fund, may gain more than 10 percent from its investments last year on the back of the global financial market and economic stability, a source close to the fund said. “Though the total financial return is not yet fixed, the fund expects to report an annual return better than last year,” said the source, speaking on condition of anonymity. It was reported in August last year that the fund’s net profit grew 6.8 percent to reach US$23.1 billion in 2008, thanks to hefty gains in its domestic investment arm made from major listed State banks. However, the value of its global investment portfolio fell 2.1 percent during the same year. However, the source denied that the fund had such a plan. Railway investments usually do not yield high returns and the process would be “quite complicated”, the source said. CIC, which was set up to manage the nation’s swelling foreign exchange reserves, accelerated its investment drive after the second quarter of last year, when it was widely believed that the worst of the global downturn had passed. The fund diversi-

20 F in a nce

China to open first three billion in value as of the end of October pilot consumer financing 2009, according to U.S. Treasury data. companies Caglayan said the two sides had dis- China’s banking regulator on January 6 ap- cussed the possibility proved the establishment of the country’s first of using local curren- three consumer financing companies, which are cies in bilateral trade scheduled to be started in Shanghai, Beijing and and China’s purchase Chengdu, according to the financial services au- of Turkish bonds. thority in Shanghai. Chen said China is The Bank of China, Bank of Beijing, and experimenting with Bank of Chengdu are the promoters of the three Renminbi settlement pilot consumer financing companies, which are with countries which expected to offer personal loans to finance pur- have relatively bal- chases of durables without taking deposits, said anced bilateral trade sources from the financial service authority of with China and that Pudong New Area, Shanghai. the practice will be ex- China Banking Regulatory Commission panded and promoted (CBRC) issued in May, 2009, a draft rule on the after maturing. establishment of consumer financing firms, in China announced an attempt to further spur the country’s domes- in December last year tic consumption. (Xinhua) it would start allowing Renminbi settlement of international ac- Commerce minister stresses counts on a trial basis. RMB stability The government announced last month China’s Commerce Minister Chen Deming it would increase the said on January 7 the stability of the Chinese number of pilot cit- currency contributes to the recovery of the ies carrying out yuan world economy while voicing concerns over the settlements in foreign trade from the current five, namely Shanghai, Zhuhai, strength of the U.S. dollar. Guangzhou, Shenzhen and Dongguan, to help export companies avoid foreign “The Chinese government has stated on exchange rate fluctuations. many occasions it will keep the exchange rate In those pilot cities, Chinese enterprises have the right to decide on their of the yuan, or Renminbi, basically stable,” said own whether they use the yuan or the U.S. dollar in settlement, said Chen. Chi- Chen during a visit to the Turkish capital Anka- na and Turkey saw their trade surge from about 1 billion U.S. dollars in 2000 to ra, adding “We feel that is an important support about US$12.6 billion in 2008, but Turkey witnessed a huge trade deficit with and contribution for the world economy, which China. is undergoing a crucial period of recovering.” China will further encourage Turkish companies to sell products to China An unstable currency of China, whose and Chinese enterprises to invest in Turkey to reduce the imbalance. Chen De- trade volume accounts for about 10 percent of ming arrived at Ankara on a four-day visit to Turkey and will go to Istanbul on the world’s total would have a great impact on January 8. (Xinhua) the global trade, Chen told a joint press conference with Turkish State Minister for Foreign Central bank reaffirms moderately loose mon- Trade Zafer Caglayan. China’s major trade partners have com- etary policy, moderate credit growth in 2010 plained about an undervalued yuan, which they said give price advantages for Chinese exports. The People’s Bank of China, the central bank, reiterated on January 6 that The yuan has gained more than 21 percent it would maintain a moderately loose monetary policy in 2010 and improve the against the greenback since the currency was focus and flexibility of the policy according to new circumstances. unpegged from the U.S. dollar in July 2005. The monetary policy in 2010 would aim to maintain a stable and relatively Chen said China will press ahead with rapid rate of economic growth, improve the economic structure and manage in- reforms for a controllable, freely floating Ren- flation expectations, the central bank said in a statement on its website after the minbi exchange rate, while reiterating China’s conclusion of its annual work conference from Jan. 5-6. concerns about the value of the U.S. dollar. “We must continue our efforts to sustain a stable and relatively fast rate of “Recently we’re more concerned about economic growth and stabilize prices and effectively manage inflation expecta- whether the U.S. dollar can maintain its stability tions,” the central bank said. and strength, as China holds a large amount of “It is still too early to change the present monetary policy as the recovery is U.S. dollar-denominated bonds,” said Chen. still not solid enough,” said Li Yang, deputy director of the Chinese Academy of China is the biggest holder of U.S. Treasury Social Sciences. “A too-early exit would mean losing what we have achieved,” securities, with its holdings totaling US$798.9 he added. (Xinhua)

Special report will share and analyze each regional development strategy. strategy. development regional each analyze and China’s issue share Trade Foreign will This planning. the implement and participants. the for all adjustments opportunities new would mean structural turn in new which as well integration, as industrial and interests, economic in shift unprecedented another bring would It principles. market accord to scale, great ing a on reallocation and reorganizing see would all including society, information, in and technology, resources goods, funds, different labor, flow of areas, the these in advantages comparative the of reshuffling the After to areas. areas inland to moveeastern in force labor the and technology capital, for possible is it investments, capital large of nature profit-driven the en would slowly away. fade metropolis of Giv the appeal the thereby slow the lane, move would into unavoidably areas eastern the in growth economic living, and of manufacturing cost rising the With gradually. narrow would also of labor cost the in differences al the regions to play to their respective advantages, whether they be natural resources or geographic location, to obtain more say say more obtain to location, geographic or development. their resources facilitate further can natural which power be bargaining more and they whether advantages, respective their to play require to will trend regions new The the through. broken be will areas eastern to factors production of allocation excessive the and market, the regions. different among constrictions, and areas urban and structural rural between various gaps the easing narrowing and well as as factors, production local liberalizing at aimed , grid economic a balanced with layoutand new a showcase dynamic will years 30 next the years, 30 past the over highlights line-shaped or which hotspots regions, economic eastern featured the in development unbalanced the from Different place. its take to ready is model new the and end, the to resources. and advantages different their on based gies strate development unique featuring all Regions, Western and Regions Middle the with along China, Northeast Taiwan Strait, the of West Bank Region, Circum-Bohai-Sea Gulf, Beibu Delta, River Pearl Delta, YangtszRiver the with gradually, being into come I 24 R ① ② ⑤ ④ ③ ⑦ ⑥ ⑧ ⑨ : On November 16,2009, the State Council officially approved for Planning officially Council State the : November 16,2009, On : On July 1,2009, the State Council discussed and approved Planning for for Planning approved and discussed Council State the 1,2009, July On : : On June 25, the State 2009, Councilissued Planning for Development of Plan the approved and discussed Council State the 2009, 10, June On : approved the thePlanning State Council for: De November On 23, 2009, : On December 12, 2009, the State Council approved Planning for Boyang Boyang for Planning approved Council State the 12, 2009, December On : Opin Several document the issued Council State the 2009, 14, May On : : On September 23, 2009, the State Council discussed and approved the the approved and discussed Council State the 2009, 23, September On : : On June 24, 2009, the State Council approved Over Planning forthe the Council State the : 24, June On 2009, For all the potential benefits, the substance of these plans ultimately depends on how the local governments define their focus In addition, the labor force market would also see obvious changes — the flow of labor would change its direction and region and direction flow its — the change would labor of changes obvious see would also market force labor the addition, In by re-evaluated be will areas different in advantages regional and endowment resource layout, economic regional new the In coming is past the of model development unbalanced The change. great of verge the on is economy China’s that talk There’s government to issue so many regional economic development plans at the same time. The new regional economic layout has has layout economic regional new The time. same the at plans the development for economic regional history many so issue Chinese to in government moment rare a was It others. among Zone, Economic Ecological High-efficient Yellow River Region and River Tumen the Region, Coastal Jiangsu the Zone, Economic Guanzhong-Tianshui Strait Taiwan the the Zone, for Economic plans Bank West including zones, development regional 9 for planning approved government Chinese the 2009, n China Tumen River Regional Development. Regional Tumen River China ning for Development of Jiangsu Coastal Zone Coastal Jiangsu of Development for ning Zone. Eco-economic High-efficient Delta Yellow of River velopment Belt Economic Coastal Liaoning of Development in Fujian Province. ions on Promoting Rapid Development of West Bank of the Taiwan Strait Guanzhong-Tianshui Zone Economic Lake Eco-Economic Zone Eco-Economic Lake all Development of Hengqin of Development all Region. Middle the of Rise the Boast to Planning

edefining Regional Economic Layout Overview of Regional Economic Economic ofRegional Overview Planning Issued in 2009 in Issued Planning - - - - ⑤ ⑧ ⑨ ⑦ By YanBy Manman ② ⑥ ③ ④ ① - - - - istrict of Tumenjiang, along the border at the mouth of this river, with the Chinese territory lying about 15 kilometers up- Dor Tumen river area stream. Tumenjiang area lies in the key centers of northeast Asia economic zone and Japan Sea Rim is described by Japanese Economic Zone whereby China, North Korea and Russia connect, through river, China, Russia, Takeo Touma as strategic North Korea, South Korea and Japan tied. Due to the geographical triangle composed by China’s center of “Japan Sea Rim Huichun, Korea Rason and Russia ga sang, it is claimed as “golden Delta”. Economic Zone” for five In 1992, proposed by United Nations Development Programme, five contiguous countries economic regions (Japan with adjoining boundary (China, Russia, North Korea, South Korea and Mongolia) jointly ini- the Far East region of tiated the Tumenjiang Area cooperation and development project. In December, 1995, three Russia, North and South countries (China, Russia, North Korea) inked three legal document including agreement on Korea, and the North- establishing coordination committee on developing Tumenjiang Area, China, Russia, Korea, east region of China). Mongolia and South Korea signed the agreement on establishing Tumenjing economic zone and As the typical example coordination committee on Northeast Asia development and the understanding memo of Tumen- of international regional jiang economic zone and Northeast Asia environmental codes. It is the signal that international cooperation, the idea of cooperation on Tumenjiang Area has come into the phase of implementation. According to the Tumenjiang area devel- agreement of the Eighth UNDP Tumenjiang Area Project Development Meeting held in 2005, the opment has lasted for nations involved unanimously extended their period of collaboration to 2015, paving the way for nearly 20 years with the increased cooperation between them, which upgrade regional economic cooperation of gross Tu- fluctuations of interna- menjiang Area. tional politics. The master plan covers the key area of Tumenjiang Delta, which is Changchun of Jilin Prov- On August 30th of 2009, the State Council issued the “Planning outline of Cooperation and De- velopment in Tumenjiang River Region—Taking Tumenjiang Delta, Changchun-Jilin-Tumenji- ang as the Opening up and Development Pilot Zone”. New Drive for Chinese Economy It is finally admitted in November 2009, a signal By Li Tai, Guo Liqin of implementing the master plan to drive China’s economy and the world as a whole. This planning outline is the strategy to improve the opening up level of border regions, an important step to further the revitalization of old industrial bases in Northeast China. Concurrently, the idea of “Japan Sea rim” in Japan dates back to the 1960s. The rapid changes in this area during the last one to two years have pushed this idea to the front and moved it from being a mere master plan toward realization. An example is the “Tu- menjiang Development Master Plan” which now frequently appears in the newspapers. Overview of Tumenjiang Delta and master plan Tumenjiang, Tuman- gang in Korean, is the international river 516 km in total length, which flows 25 Special report Harmonious development of the area the of development Harmonious province. Liaoning and province Heilongjiang area: the in provinces two of other location geographical its my since China’s econo Northeast for drive new the as a defined is itnow with But behind development. economic left outward-oriented been of has degree lower Province Jilin especially China Northeast of region the time, long Fora least, not and Last tial. poten developing most with area the is economy world the of 1/5 up taking Asia northeast of GDPcooperation the Currently, platform”.technology to and gateway “economic “China’s and as Asia” defined Northeast is Asia Northeast of the region Besides, area. border implementation a of the up for opening and state development of the by approved been had that China in one only the it is foremost, Jilin-Tumenjiang. and First aggregate. nomic eco province’s Jilin of half with Province Jilin the of 40% accounting for million, 10.9 of population a has It province. Jilin 39% of kilometers, hun-Jilin-Tumenjiang square 73 is thousand Changc of area The Region. Autonomous Mongolia Inner province and Longjiang Hei province, Ning Liao as such area ing Tumenjiang),surround on the effect its exert also can plan this Changchun-Jilin- Korean as it Yanbian put simply (weand Prefecture province Autonomous Jilin of area other some ince, fic network; creating new industrial bases with core competi core with bases industrial new creating network; fic traf fast and convenient tri-dimensional, forming but routes, transportation cargo road-sea correlated existing the solidate bonded con only not constructions comprehensive infrastructure strengthening area, establishing port, via including out plans, action shipping of series a stipulated have Province Jilin of Government People’s the and Jilin Committee the stimula Provincial approval, the great With plan. the master infer ratified this can of we tion province, Jilin of website 26 The map also implies the strategic status of Changchun- of status strategic the implies also map The Through a recent updated article from the governmental governmental the from article updated recent a Through 中蒙大通道长吉图先导区东北经济区大图们江经济圈 District of Tumenjiang ------Different voices Different century, China constructed a port upstream at Hunchun during during Hunchun at upstream port a constructed China 17th the century, to back Dating Dalian. from shipped are provinces from both products and sea, the to exit an have don’t in China Heilongjiang Northeast and Jilin Therefore, territory. the its to from exit Sea cannot Japan China rights, navigation reason, international historical without the to due example, an as rights navigation for Korea. North and Russia China, between interest sharing coordinate to itdifficult is Besides, as infrastructure. shabby economy,well as and market and lagging Korea population, North small China, with Russia in place remote the in located Tumenjiang is sound, area as not still is development the for basis the For thing, one problems. by some doubted strongly It still is sues. China and North Korea, and the capital and technology of Ja Korea. South and of pan technology and capital the and Korea, North and China of force labor the region, East Far the in resources combing by Rim Sea Japan the of center the as area this develop to intends plan master the words, other In delta. golden the of vicinity the in Vostochny, all and Nakhodka, Sonbong, Rajin, Vladivostok, zone. pioneer develop opening-up and ment regional con Changchun-Jilin-Tumenjiang ofthe for struction support intellectual and scientific provide to as so talents of introduction and and education as well as science technology in cooperation strengthening services; financial up tone to and units, experimental fund venture of batch first such in institutions security in finance, as usher spheres actively to of services, innovation the financial forward pushing zones; development and parks cooperation of industrial interprovincial construction and the international forward pushing while Expo Trade and Investment Asia Northeast the hosting successfully tiveness, Taking the Yanbian Korean Autonomous Prefecture’s need need Prefecture’s Autonomous Korean Yanbian the Taking is historical and countries many involves area Tumenjiang In this area, there are many good harbors such as Chongjin, Chongjin, as such harbors good many are there area, this In 东北亚区域 procedures of Customs clearance. clearance. of Customs procedures fussy the as such greatly factors by still restricted are How services these years. ever, within Area Tu the in menjiang cooperation gradual the international through Korea, and Japan South to services passenger transportation and cargo developed and Korea North and Russia in ports some via sea the to access achieved has ture Prefec Autonomous Korean the Yanbian Review, Beijing from report a to According time. long for Japan of Sea the into flows that the on mainland Chinese route water only the became closed. kept been has river the of mouth the relations, Sino-Siviet of deterioration eventual the and War, Korean the II, War World of because however, significant; quite was volume trading The Nagasaki. and Pusan, Won san, coast, Sea Japan the on Niigata to products shipped China and 1930s, ship and 1920s the during opened lines ping International century. 17th the and insurance, etc., to open the the open to etc., insurance, and Therefore, Tumenjiang River River Tumenjiang Therefore, (Li Tai, Researcher with Eco Tai, (Li with Researcher nomic Information Center) Information nomic ------

o promote the economy in Five Liaoning and to revitalize the One Line industry base in Northeastern Points in China, we need to improve the —Liaoning Costal Economic Zone competingT ability of coastal industrial clusters in Liaoning Province. Through the industrial cluster around the pro- By Audrey jected Northeast Asia Shipping Center New engine for economic revitalization in Northeast and recovery in in Liaoning, the province will boost the mainland development and construction of coastal area step by step: join these ports there Port plays a so important role in Liaoning Province. First, in the competition into a line and form a cluster and then among ports, the one with broad inner land will gain great advantages. Second, realize the overall prosperity. the inner land economy, coastal industries and logistics system around the port will support the development of port clusters. With a developed and powerful port, Liaoning Port: construct a real industries will be attracted and gather in the coastal area, then achieve the target shipping center in Northeast Asia of forming industrial clusters and goods distribution centers and integrating the Liaoning Province has the industry labor factors. With the ports’ driving, the revitalization in Northeast could move on base with the longest history in China, smoothly. Liaoning Northeast Asia Shipping Center is a combination of distribu- and also 2.290-kilometer-long coastline, tion center and transfer center for inner land market, radiating the three provinces taking 12% of the whole in China. Along in Northeast and spreading to the whole Northeast Asia. In order to secure a long- the coast line, there are six cities, Liaon- term development for the coastal industrial cluster, we have to choose a new indus- ing, Yingkou, Jinzhou, Huludao, Panjin trialization way, give priory to new industries and the subsidiary industries, add and Dandong, while there are cities 50 more value-added to the products, form clusters of new industries and company km or so away from the shore, and port groups and improve the industry structure. Meanwhile, we should extend the in- clusters as Liaoning Port, Yingkou Port, dustry chain and develop further processing of raw materials. Under the principal Jinzhou Port, Huludao Port and Dandong of unified planning, coordinated development, complement each other and win-win Port. Liaoning Port has great advantages cooperation, the isolated administrative region should be joined together to realize listed as follows: a. the largest port in integrated economic development in coastal area, forming a port cluster centering Northeast, b. broad economic inner-land on Liaoning Port, supported by Yingkou, Jinzhou, Huludao and Dandong. Besides, as backup, c. the leading role in “five-point the link between ports and road, railway, storage and other nodes of the logistics in one line” coastal economic zone plan, d. chain, to reduce the logistics costs and modernize its service. the container throughput for foreign trade Industrial cluster will create industrial zone from Liaoning Port takes 90% of the whole in Northeast, d. cargo advantages The “five points in one line” coastal economic zone will show features of indus- in containers for foreign trade, in ro-ro trial clusters. In the background of economic globalization, the clustering in Liaoning passenger ship and petroleum products coastal area is more and more evident, and its positive influence to regional competi- transportation. Liaoning Port takes a tiveness is also increasing. The coastal area in Liaoning forms a kind of competitive strategic position in the “five-point in one advantage, meaning “coastal advantage”, during the process of industrial clustering. line” plan for the reasons as follow. First, Boosted by this advantage, through specialized market and industrial transferring Liaoning Port is located at the south end mechanism, the coastal industries relocate and gather in the coastal area, forming an of Northeast. Second, the city has an ex- economic community. Liaoning coastal industrial cluster has a high level of open- port-oriented economy, so there is a great ness, and the cluster there is the result of flow of global elements and relocation and need for foreign trade containers and the gathering of industries. To Liaoning, the process of coastal industrial clustering often tourism industry will be helpful to attract means a process of mechanical innovation, so Liaoning will embrace another chance foreign capitals. Third, the land transport of development. After the Development Plan went public, both competition and co- in Northeast is perfect, with most cargos operation became the cause for industrial clustering, which is good for the ports, as it transported by road and railways, which can build up competitive advantage for regional industrial zone, and then improve the determines that there will be a close rela- competition and upgrading in Liaoning. The industrial cluster in Liaoning will bring tion between Liaoning and Northeast. more energy and power to the economy in Liaoning Province. 27 Special report C Shandong provincial government. In the the In government. provincial Shandong by projects cross-century two the of one as listed was Development Delta YellowRiver the last century, the 20th the in of Back decade abroad. and home attention at widespread been always has Delta River Yellow the of construction billion. 930 RMB exceed will By region 15%. the 2015, than more for accounts GDP province’s the for accounts region Delta Yellow River the 2008, the In YellowRiver. by carried silts deposited by an nually created land new of hectares of 1,000 average an by rejuvenated is It area. sea shallow of hectares million one and land developed less of hectares 533,000 Binzhou, Laizhou. Weifang and Dongying, ports: near cities of four development the emphasizes plan of The 9.85 apopulation million. has and area ofShandong’s land sixth one is This area province. Shandong in East Yantai China’s and Zibo Dezhou, Binzhou, Weifang, Dongying, across stretching kilometers, a square 26,500 covers of area which land Area New Binhai jin and Tian Tianjin with junction Peninsula Shandong Beijing, metropolitan in and by 2020. life prosperous generally environment excellent an growth, economic strong featuring zone” nomic eco-eco “efficient national a and 2015; by environment and resources the of ity social and capac the with compatible development economic the with zone” eco-economic “efficient an namely area, of development models. new the explore to Delta River harmony in ment environ the and resources society, my, econo efficiency, and structure, achieve speed, to innovation, and exploration of of development the promotion integration the regional in environment, cal ecologi the improving in forefront the at economy circular of development the in advantage comparative ef their on forts greater the in economy, efficient ecological of theme the highlight target, construction civilization ecological on focus should Yellow development the Delta River Daming, Jiang governor zone economic delta. river the along sustainable logically eco more a create to meant is plan The 28 Over the years, development and and development years, the Over than more to home is delta The located is Delta River Yellow The the about set been have Twotargets provincial Shandong to According Zone at Yellow River Delta. Delta. River Yellow at Zone Eco-Economic Efficient an of en has DevelopmentthePlandorsed Council State hina’s ------be the first to build economic prosperity, beautiful environment, and rich life of the the of life zone. rich economic ecological and high-efficiency state-level environment, beautiful prosperity, economic to build Try to system. first the be eco-industrial modern and competitive more remarkable create made to has achievements has construction capability civilization ecological development enhanced, markedly sustainable been integrated, highly development economic been has capacity service dramatically. public increased of people’s life and quality improved; strengthened, significantly efficiency and use water economic capabilities, support circular infrastructure, the perfect optimized, to shape; taken further basically was has system structure industrial results; remarkable provement of the ecological emission energy-saving reduction achieved environment, special industrial bases, reserve land resources development zone and the Bohai Bohai the region’s area. and key growth zones, zone development resources land demonstration reserve bases, efficiency industrial special economic and ecological major country’s the North east Asia,the co-ordinate economy,facing Sea, social Bohai and eco-integrated Hebei, development, and Tianjin and builtShandong, on relying vantages, ad geographical and resources the to play full give is: function ecological ficient path, to explore the new development models. models. development new the explore to path, Yel the develop” while of protect and development protect, the “developwhile the take that only can Delta required River low is it resources, freshwater of scarcity the Five-Year” “Eleventh national the in plan. included goal important an been has my” new century, “Development of the Yellow River Delta and efficientecological econo Faces aHistoricOpportunity Yellow Second, by 2020, live and nature harmony, human in ecological and environment First, by 2015, capita per GDP more doubled than 2008. im thatin Constant than Yellow the in goal development Delta. the River achieve to Two needed are steps National position about the Yellow River Delta Economic Zone and its ef its and Zone Economic Delta River Yellow the about position National Considering Delta. River Yellow the of development the in lies potential Great River Delta By L By i Zhen ------“Jiangbei” Infusing Energyinto Area industrial upgrading and enhance the overall strength and improve the productivity of the national coastal areas and promote Infusing Energy into the development of the central and western regions, between China and Central Asia, Europe and the Northeast Asian countries exchange and cooperation is important. “Jiangbei” A strategy to upgrade the new Area energy —Insight into Jingsu Costal Area Plan Special reference to the meeting, it is necessary to promote the advanced manufacturing and producer services develop- By Guo Liqin ment, positive development of wind power and nuclear power as the mainstay of the New Energy and Industry, according to raditionally, Chinese people an analysis from Beijing Virtue of Brain- regard Jiangsu as a rich area power Consulting Co., Ltd. with long-lasting elegant cul- In other words, it will focus on the ture manifested with typical construction of an important integrated Tpicture of small bridge, flowing brook transport hub, along the new industrial and graceful young lady. However, it base, it is important to reserve resources is not the whole picture. “We Jiangsu Land Development Area and a beautiful province is divided into two parts: ecological environment, people’s lives north Jiangsu and south Jiangsu” said Livable affluent area, will be built along Miss Xu who denied to show name and coastal regions in Jiangsu in eastern Chi- her hometown is Suzhou city, where na’s important economic growth. the art of gardening is worldwide renown, “when I was a little girl, my mom always Jiangsu Province is the largest en- scared me with the words that don’t cry, Jiangbei (short term for North Jiangsu) Wideman ergy consumption province and long lack will catch you, and I would stop crying. Actually, it has the same effect with the big wolf energy Experts said that the new energy will come.” industry is of the Jiangsu’s most important River Delta It is not a strict geographical classification but a sub consciousness that deep into the coastal industries. Jiangsu coast were high Yellow local people’s mindset. However, this subconscious classification of Jiangsu province hopes in the planning, will be built into the show the huge economic divide between the two areas in one province. new, Jiangsu Province, an important en- Faces a Historic Opportunity The State Council, China’s Cabinet, on June 10 2009, announced a plan to boost ergy base and building a large number of coastal regions of east China’s Jiangsu Province, where growth has long lagged behind wind power generation, liquefied natural some other parts of the booming province, according to the report by Xinhua. gas for power generation, nuclear power China would boost the economy of three selected cities, accelerate infrastructure such and other new energy projects. as power grid and transportation, step up the fishing output in the region, and strengthen exploration of the muddy coast, partly by reclaiming land from the sea in a scientific way, Integrating “Jiangnan” and according to the plan. “Jiangbei” The plan is aiming to build the region into a traffic hub, a coastal industrial base, a The meeting stressed that to acceler- good place to live as well as potential development zones as the area abounds in land re- ate the development of coastal areas of Ji- serves and mud flat. The State Council executive meeting chaired by Premier Wen Jiabao angsu should give full play to comparative marked the long-debated coastal development strategy of Jiangsu finally written into the advantages, to speed up the construction version with national strategic level. Will this stimulating plan really boost the Jiangbei of the new Eurasian Continental Bridge economy and changes the mindset of “Jiangbei” area? and the promotion of the East Sea beach bridgehead rational development. A strategy to establish the transportation hub Professor Zhang Haohan, vice presi- Coastal Jiangsu, led by cities of Lianyungang, Yancheng and Nantong, is an impor- dent of the Academy of Social Sciences, tant part of the Yangtze River Delta, According to the executive meeting of the State Chinese Academy of Social Sciences Council. Research Center of China’s urban develop- Lianyungang City is also the start point of the Europe-Asia rail line that goes through ment in the Yangtze River Delta regional, west China before finally reaching Rotterdam of the Netherlands. Development of the director of the Center for joint research be- region would help boost the country’s less developed middle and western areas, and lieve that the coastal development strategy enhance cooperation with Central Asia, Europe and Northeast Asia, according to a state- of Jiangsu is also an important aspect of ment issued after the meeting. Meanwhile, another plan was issued to further develop the the integration of the Yangtze River Delta. culture of China’s ethnic minorities. From Nantong to Pudong, the radiation State Council executive meeting pointed out that China’s coastal Jiangsu Province force will be to transfer the majority of the is located in the coastal areas along the Yangtze River and along the Longhai - Portland northern region with proliferation of tasks. New Line three main axis of the distribution of productive forces intersection region, the Despite not remarkable strategic position, Yangtze River Delta is an important component of the unique geographical advantage, Lianyungang is bridgehead of Asia and the land reserve resources rich in the important strategic position. Under the new situation Europe along the Longhai Railway, Ji- in the coastal Jiangsu to expedite the development of the Yangtze River Delta region for angsu coastal area. 29 Special report Sleeping ter sports, hiking trails and other tourist attractions. tourist other and trails hiking sports, ter wa parks, theme courses, golf featuring paradise, resort a as makeover major a gain to likely is Macau, bordering province, of Guangdong of Zhuhai city of the jurisdiction the Four key industries given priority priority given keyFour industries Hengqin for vision and Positioning W R By innovation. independent the improve main and Chinese industries the and traditional Macao Macao’s Kong, boost Hong a land, service become design, to will and platform Hengqin endeavors. development innovation creative regional and research, to cultural and given training, three priority and the with education between exchange intensified and be will co-operation areas and technological technological Macao’s and resources, Kong Hong of educational advantage Taking built. be will form a and developed be will created. be will projects areas three the tourism featuring route tourist and package holidaymaking High-quality built. be mainland. Chinese and Estuary River Pearl ern for west the development provide service displaced Itmake will Estuary. Pearl River western and the trade, in Macao and and Kong Hong serves first business that base service business outsourcing, regional a Hengqin information, on focus Hengqin will towards which stretch to Island, international service in business role Macao’sMacao and Kong Hong strengthen to encourage made trade, be will efforts and centre, trade finance, information international an as Kong’sstatus Hong of best the Making built. be patch. eco-friendly it an making prohibited, be will kilometers of 106mass square technology. high well as as development and research and education, tourism, leisure, services, business on focus will be Industries 2020. by 280,000 by 2015 will and 120,000 to which increase 2015, to by expected is GDP population The 2020. by capita 200,000 per RMB to raised 120,000 RMB achieve will Island blueprint, the to Hengqin According eco-island. intelligent energetic, open, an into Hengqin op Island. Hengqin through accelerated be will development integrated Kong-Macao Guangdong-Hong a and dited trialindus upgrade accelerating in for the platform westernnew a and Pearlinnovation, Rivertechnological and Estuary up scientific area. and “One opening Customs and the reform clearance deepening under for will zone Macao be expepioneering a policy,and systems” Kong two Hong country, Guangdong, between co-operation new ing 30 Hengqin island, largely undeveloped and three times the size of Macau, now under under now Macau, of size the times three and undeveloped largely island, Hengqin Third, a regional scientific and educational research and development plat development and research educational and scientific regional a Third, will Macao and Kong Hong supporting base holidaymaking world-level a Second, will Macao and Kong Hong Guangdong, for base service business regional a First, Inaddition, under the Planning, development of more thanhalf ofthe island’s land devel to is It Hengqin. of development the for vision the forward put Planning The explor for zone sample a become will Island Hengqin Planning, the to According ose Yanose jin’s Binhai. A new page would take on in the coming years. years. coming the in on jin’s would take page Anew Binhai. Tian and Pudong Shanghai’s after Area New state-level China’sthird be to lifted the officially was by Hengqin 2009, 24 June approved On China of Hengqin Council State of Development Overall for Planning the ith Hengqin ZHU HAI ZHU Wakes up XIA MEN XIA ------Striving for the goal the for Striving significant changes in five years. in fiveyears. changes significant and years three in achievements year, one in changes for visible Hengqin’s development: timetable a set Committee Municipal commission. from management the official an to according future, the in island the on necessary and not are heaters conditioners air boilers, Therefore, water. purified up medical of standard the to desalinization water sea for used be steam also can and steam The water. hot the through conditioning air supply and generator, its of heat byproduct through water hot and heating with island the whole supply will China, in project gas- engine regional first the Corp, Investment Power China by project generator engine further the of development Hengqin. comprehensive for pioneer the were which and started, been all education had etc service business tourism, infrastructure construction, in billion 70 RMB to up investment with projects multiple mittee, Com Administrative Area New Hengqin (CBD). District Business Central Shizimen billion) ($5.56 billion 38 RMB the and Resort Ocean International Long 10 theRMB billion ($l.46 billion) Chime- Corp, Investment Power China by project generator the gas-engine supply combined multiple project, billion) ($1.76 billion 12 RMB infrastructure municipal Hengqin billion) the ($1.46 billion 10 including RMB launched, also were ects - proj major four unveiled, was Area New eas in Hong Kong and Macao. Hong Kong and in eas ar source CEPAwith under aviation and technology friendly environmentally and energy new biopharmaceutical, infor mation, and electronics notably Island, in Hengq on production and expand to PRD the Macao and Kong Hong in industry intellectual-intensive tract manufacturing at to utilized be will Delta Rive Pearl the in strength technology and park in dustrial aviation and software the of support technical and resources higher-learning Zhuhai’s built. be will edges competitive Macao’s and industrial Kong Hong combining base hi-tech state-level a Finally, Gan Lin, Secretary of the CPC Zhuhai Zhuhai CPC of the Secretary Lin, Gan gas- supply combined multiple The of director Jing, Niu to According Hengqin while 2009, December In ------Guanzhong-Tianshui Economic Zone Approved to Shore up Shaanxi By Li Zhen Economy s a move to facilitate economic development, China’s State Council approved the Guanzhong-Tianshui Eco- Anomic Zone Development Plan to turn the country’s north-western region as a base for advanced high-tech and agriculture industries by 2020. This will be the third economic zone in the north after Sichuan’s Chengyu economic zone in the centre and Guangxi’s Beibu gulf economic zone in the south, with the aim of becoming an engine to shift government’s functions, propose concrete measures on supporting economic boost the economy under the Great West- zone’s development based on research, and practically carry on the support policies ern Development Strategy. on comprehensive coordinated reform, key programs planning, finance and taxation, According to the plan, comprehen- finance, investment, land, environmental protection, talents and overall planning be- sive economic power of Guanzhong- tween urban and rural areas, given by the Country in the Plan. Tianshui Economic Zone will have a new Shaanxi is one of the important bases for equipment and manufacturing indus- stride. By the year 2020, its economic tries. Through recent development, the province now has already formed a com- output should have taken over one third prehensive manufacturing industry system which includes professional equipment, of the total in the whole north-western manufacturing, national defense, aviation and aerospace industries. China, with doubled per capital regional Guanzhong’s industries include information technology (IT) and electronics, GDP, great enhancement of urban and biochemical, and modern agriculture, and it is home for 30 percent of national aero rural residents’ income and significant engineering research and development (R&D) and production capability. improvement of self-developing ability. The aviation industry in Shaanxi province is listed as number one in China and “Development of Guanzhong will be it is also the only province with two enterprises that can produce complete planes. focused on high-tech, equipment manu- Currently, Shaanxi is carrying out many major projects involving the coal chemical, facturing, aerospace industry, mecha- petroleum chemical and electrical power industries. nized agriculture and tourism industry,” To realize the development goal, a series of measures must be introduced to cope said Shaanxi province’s governor Yuan with various adverse factors brought by the financial crisis. Under the impact of the Chunqing. He said the economic zone is financial crisis, Shaanxi province has met great difficulties since the latter half of in an area in the western region with the last year. Following the requirements of “rapid, powerful, targeted and practical”, most intensive intellectual resources and we earnestly carried out and implemented the package policy and measure set by the sound industrial base. central government for ensuring economic growth. As side influences of the financial The Guanzhong-Tianshui region crisis on economy still exist, industrial structure adjustment should be accelerated covers an area of over 50,000 square me- and the construction of key programs should be emphasized during the implementa- tres and is home to more than 60 percent tion of the plan, to inject new energy to the economic development. of Shaanxi province’s population, gener- “In 2008, the energy chemical industry base north of Shaanxi province produced ating 68.5 percent of the provincial GDP 24 million tonnes of crude oil, 10 billion cubic metres of natural gas, 200 million and 26.9 percent of that of the north- tonnes of raw coal,” according to Yuan. western region. The region is to be developed into an important energy provider and coal chemi- To implement the plan, real actions cal industry base. “While boosting the high technology industry and building a should be taken to fulfill programs and world-class technology park, we will integrate Xi’an and Xianyang city into an inter- promote development. The plan unfolds national metropolitan to attract tourists,” said Yuan. a magnificent blueprint for Shanxi prov- Xi’an, which is the ancient Chang’an, had been capital city of China in 13 dynas- ince. On implementing the plan, efforts ties, with more than 30,000 cultural and historic sites to attract tourists. should be made to promote creativity Elaborating on the development plan for Tianshui, Gansu province’s vice gover- on system and institution, and form a nor Feng Jianshen said Tianshui city is to boost the manufacturing, agriculture and supporting system which is favorable tourism industries and will also build more infrastructure. for the development of economic zones. The infrastructure includes highways connecting Tianshui to Baoji, Dingxi, It is highly necessary that government Pingliang and Longnan cities and railway connecting Baoji, Tianshui and Lanzhou departments and municipalities should and an airport for Tianshui city. Tianshui will also be developed into modern logis- continue to deepen reform, feasibly tics centre and processing centres for green agriculture products. 31 Special report to Embrace Middle Region Transportation and logistics to gain more favor more gain to logistics and Transportation region middle the of pole Growth O overall economic and social situation, playing an important important network of role. comprised strategic thean At thepresent, artery playing situation, social and economic overall the thus and China the throughout matter transportation all the of railway function the as well as development highway The waterway, resources. of the of flow the propelling and market large developing of advantage it geographic Objectively the enjoysdirection. every convergent in the belts also industrial is the and of area China of north and south west, population. total Hubei’s of 51.2% occupying population and Province Hubei the 31.1% is covering of area latter with Hubei’seconomy, the the of nucleus Likewise, Hunan. in population total the of 39.3% population its accounting for and 29.7% Province, of ofHunan that area the with development, social and economic Hunan’s in role core development a plays former the The region. for middle the of and bud growth position the be unique would have and function especially cluster city Xiangtan Changsha-Zhuzhou- and Circle Metropolitan Wuhan zones, these In pole. growth economic new form thus and Zone gle Trian Yellow River Shanxi-Shaanxi-Henan and belt city hui An Yangtze-bordered Zone, Eco-Economic Poyangter, Lake clus city Changsha-Zhuzhou-Xiangtan Circle, Wuhan the Metropolitan of development and promotion the accelerate to region would enjoy some unique edges. edges. would enjoy unique some region middle and the that analyzed economic Securities Datong development. the social in role important an playing integrated hub, an and transport bases manufacturing equipment bases, rial mate raw and energy bases, production grain major are China crisis. economic the out ride real the smoothly in to China for significance opportunity great of is which biggest economy, the is region middle the that insisted Securities Changjiang China, in economy regional the of terms In regions. middle the for would region opportunities middle great ofprovide rise the boosting of strategy reckoned this investors that 2015.Institutional by society a harmonious sustainable building in the progress new making enhancing and capacity development remarkably the vitality, strengthening developing further the development, increasing economic of level significantly of region middle the for goals 32 By YanBy Manman The middle region is the hub to connect the east and and east the connect to hub the is region middle The is region middle the of rise the boosting in emphasis The It is noted in the Planning that the six provinces in central central in provinces six the that Planning the in noted is It Jiabao chaired the State Council’s executive meet executive Council’s State the chaired Jiabao Wen Premier 23, September n Boost the Rise of Middle Region, which set the the set which Region, to Middle of Planning Rise the the passed Boost and discussed which ing, Golden Time - - - - - and consumer goods sector goods consumer and engineering of growth driving urbanization Further the expansion of shopping stores and supermarkets, etc. etc. supermarkets, and stores of shopping expansion the propel to likely very is middle the in areas urban in population of the increase the And etc. development construction estate real and project and industry materials building engineering, ect increased be rapidly. will The urbanization wouldurbanization drive the development the thus of proj and center and production center logistics and transportation the is into region grow to middle bound the demand, domestic the expanding of egy strat national the and Region Middle the of Rise the Boost to economic Planning of the greatest implementation the with potential, with development region a As region. northeastern and region eastern ofthe that lowerthan 2007,low, far 39% in only transportation network in the middle region, the logistics is is logistics rise. to the the expected also of region, middle the development in the network With transportation industry. construction transportation infrastructure and the for long-term bring opportunity would investment transportation the of improvement and construction The etc. IT, and metallurgy industry, turing manufac equipment including industries of series a of ment develop the push will projects these Furthermore, consumed. be will cement of tons million 1500 and steel of tons 25 million created, be will jobs in million 7.5 that finished predicted be is Itwill 2012. project the up of Most investment billion. 750total RMB the to with year, this to construction close started length be to total expected is railway ofthe km 12,000 addition, with In km. 2000 built, intraregional being and also way are linking project interregional major 12 km. 4,000 near mileage total the with construction, under railway middle the in km. over is 34,000 railway region the of mileage total the and added be adjusted, will of railway 16,000 2020, bykm was that goal the clear making planning network railway term long and mid the 2008, In Hangzhou-Zhuzhou. and Xiangfan-Chongqing lines west-east main three and Jiulong, Beijing-Guang Jiulong, The urbanization level in the middle region is relatively relatively is region middle the in level urbanization The At present, there are 13 passenger railways and intercity intercity and railways passenger 13 are there present, At -

HUINAN HUBEI SHANXI HENAN of Lanzhou-Lianyungang, ofLanzhou-Lianyungang, zhou and Datong-Zhanjiang Datong-Zhanjiang and zhou south lines of Beijing- of lines south JIANGXI ANHUI three main north- main three - - - - Catch the ball of industry transfer ing the transferred industry. At the end of 2007, the Ministry of Commerce issued the Opinion on Supporting the Middle and Western Region to Take over the Pro-

SHANXI from the east cessing Trade, defining 9 cities as the key recipients including Wuhan, Nanchang, The eastern region is accelerating Ganzhou, Chenzhou, Xinxiang, Jiaozuo, Hefei, Wuhuo and Taiyuan, which are all the transfer of some industries, which located in the middle area. offers some opportunities for the devel- The Yangtze River Delta currently homes China’s 70% textile industry, 80% opment of the middle region. After 30 garment manufacturing industry and 90% processing trade, and now there is an years of development, some industries obvious trend of industry transfer. With its geographic position advantage, the HENAN in the eastern coastal area has already middle region becomes the first choice for the destination of the foreign investment stepped into the mature stage or even and the transfer of the labor-intensive industry in eastern area. In the six provinces into the decline stage. The comparative of middle regions, An Hui initiatively blend into the development of Yangtze River ANHUI advantages being lost, these industries Delta and bears the very advantage in receiving the transferred industry from the HUBEI have to be transferred to other areas. Delta. An Hui planned to take equipment manufacturing, raw materials industry, The middle region, with its advantage textile industry and high-tech industry as the major transfer industry. Similarly, JIANGXI in geographic position, market and re- Hunan also enjoy advantages in taking over the transferred industry from Pearl source, possesses great edge in receiv- HUINAN River Delta.

hina-ASEAN FTA, the world’s largest free trade area in terms of population took effect on January 1, 2010, covering 13 Nanning millionC square kilometers and 1.9 billion people. Over 90 percent of the commodities traded between China and the six Yulin Chongzuo original ASEAN countries, including Brunei, Indonesia, Malaysia, the Philip- Qinzhou pines, Singapore and Thailand, now enjoy no tariffs from 2010. As a window to Fangchen Guangdong ASEAN countries, Beibu Gulf Economic Beihai Zone is in more limelight since the new ggang year.

What is Beibu Gulf Economic Zone? Q: Vietnam In 2008, the central government A: has approved China’s first international and regional economic cooperation zone in Guangxi in late February. The construction of the Beibu Gulf Beibu Gulf Economic Zone began in 2006. With the approval, the Beibu Gulf Economic Zone will be formally incorporated into national development strategies. Beibu Gulf Economic Zone is China’s first and Q&A on only regional and international economic cooperation area.

Where is Beibu Gulf Economic Q:Zone? Beibu Gulf By Alice The Beibu Gulf Economic Zone A: refers to the area around the pro- west, and also serves as a natural convergence point for China-ASEAN trade and vincial capital of Nanning, coastal cities economic cooperation. of Beihai, Qinzhou and Fangchenggang; It is not only the most easily accessible passageway to the outside world in south- and the inland cities of Yulin and Chong- west China and a strategic place to sustain southwest development but also an inter- zuo as its east and west wings. Total national channel, bridge and platform for China-ASEAN cooperation and exchange. area is 42,500 square kilometers, with a Its strategically favorable location and great potentials promise an excellent perspec- coastline of 1,595 kilometers. The gulf tive for development. area commands a strategic location of The Beibu Gulf Economic Zone is also positioned as a regional and international convenient sea access in China’s south economic cooperation area, the first of its kind in China. A regional co-operative ini-

33 Special report make great effort to develop international goods and service service and goods developinternational to effort great make coast. the along areas and cities logis the in system tics bonded of construction the up speed and transportation A: A: Q: A: Q: Brunei. and Philippines the Indonesia, Singapore, Malaysia, Vietnam, including countries, Asian southeast neighboring the with China of economies the integrate to launched been has Cooperation” Beibu “Pan entitled tiative cessing. pro food and energy, biomass pulp, works, marine steel, aluminum, and iron petrochemicals, include Zone the in developed serving information, China’s and southwest countries. ASEAN and services business logistics, for hub sustainable. ecologically and harmonious areas, neighboring to radiation its in strong world, outside the to open highly is which gion and become China southwest a major in development internationalstrategic the support economicto as cooperation so exchange re information and manufacturing and processing trade, and business logistics, of bases into Zone the is turn goal to The region. the in development and common up achieving opening China’s furthering countries, ASEAN and China between exchange and cooperation promote plat to and form bridge passageway, important an as serve and na of Chi parts west and east interconnect to is Asia, southeast 34 The Zone, with China-ASEAN Expo as a platform, will will platform, a as Expo China-ASEAN with Zone, The Vision of the Economic Zone is to become the regional regional the become to is Zone Economic the of Vision What is the role of Beibu Gulf Economic Zone played? Zone Economic Gulf Beibu of role the is What nomic Zone? Eco Beibuinindustries service majortheare What

1. With its favorable location and deep water ports, ports, water ocean deep develop to endeavors and Zone Economic Gulf Beibu location favorable its With 1. west, south and central-south of China and facing facing and China of central-south south and the in south west, locating Zone, Economic Gulf Beibu Key industries to be to Key industries ------tourist circle along the gulf. gulf. the along circle tourist the construct and products tourist excellent foster will Zone the service, public and infrastructure tourist enhanced to addition in spots, scenic and resorts tourist 4A holiday national the leisure With and tours. tours self-driving tours, island cruises, tours, ocean golf and river and tours, health holiday hot-spring tours, tours, ecological sport of products tourist develop and system product tourist the improve will It promotion. tourism for center a and destination tourist Zone the international regional build a into and play full into characteristics its bring will of residents. low-income needs eco of housing the meet to construction rentals low of the housing and up housing nomic speed will It different meet residents. of to as needs so housing commodity the restructuring trade. business and tourism with interacts ter The conventions,styles. festivals, and performances contests so that it bet marketing and brands integrate will with its features, exhibition Guangxi, business in better with exhibi industry the develop tion better to as so manner efficient more unique and a in Summit Investment and Business China-ASEAN science labor, tourism, etc. culture technology, and product quarantine, and inspection transportation, port quality, finance, of investment, information business provide can it that so countries ASEAN and China between exchange information of center service tional interna turn regional professional and and comprehensive a into itself technology information of time, applications same the at accelerate software the integrate and service mation infor for hardware improve will It cartoons. and information and geographical of industries E-business the develop and promote E-administration, telecommunication, and nication regional international financial center. center. financial international regional a into Nanning build to as so system service financial modern 6. The Zone, with the excellent tourist cities as support, support, as cities tourist excellent the with Zone, The 6. will policies, regulating and guiding the with Zone, The 5. and Expo China-ASEAN organize to important is It 4. 3. The Zone will increase the capacity of post commu post of capacity the increase will Zone The 3. and small banks, and construct a construct and banks, small and medium of reform and the restructuring up speed financing, direct of use best the make enterprises, investment venture of development the encourage to funds, investment industrial possibilities establish the com explore panies, investment up new set of trust, number a and futures insurance, securities, banking, of cultivate businesses institutions, financial ous Delta. River Pearl the and China of part west and the part east countries, ASEAN connecting network logistics of system service the establish and ports electronic of construction the up speed logistics, third-party develop will it abroad, and home at logistics of enterprises top with cooperation enhancing By logistics. business of area up bonded a set will it export, by driven ing process and trade, shopping cross-border border of support the With Nanning. in logistics of base tional interna regional a build and trade 2. The Zone will introduce vari introduce will Zone The 2. ------Tianjin Binhai, Set Sail By Yang Wei

Profile Key industries Tianjin’s Binhai New Area (TBNA) TBNA consists of nine functional lies in the economic belt of Bohai Rim zones namely Advanced Manufacturing Region and the juncture of the city group Zone, Airport-based Industrial Zone, of Beijing, Tianjin and Hebei province. Binhai High-tech Industrial Develop- The area is adjacent to Beijing, facing ment Zone, Seaport-based Industrial North, Northeast and Northwest China Zone, Nangang Industrial Zone, Sea- on its back, with a vast hinterland. It is port Logistics Zone, Coastal Leisure & the important hub linking China and the Tourism Zone, Sino-Singapore Tianjin world, the south and the north and the Eco-City and Central Business Dis- east and the west within the nation. As trict. In addition, Tianjin Port, whose the nearest east starting point of Eurasia throughput ranks 5th in the world also land bridge, TBNA is the most crucial locates here. outlet to the sea for the neighboring in- TBNA has formed its dominant inland countries, becoming an important dustries including electronics and infor- window for China to take part in the mation, oil and marine chemical indus- economic globalization and regional try, auto and equipment manufacturing, economic integration. modern metallurgy, bio-technology and With a planned area of 2270 square modern pharmaceutics, new materials, kilometers, TBNA has a coastal line of new energy resources and food process- 153 kilometers and a population of 2.02 ing, etc., with a remarkable ability of rel- million. TBNA has a rather favorable evant services. The infant advantageous ecological environment and abundant industries such as space and aviation, natural resources and wetlands of 700 and headquarters economy are rising square kilometers. There are still 1200 to power. The fast development has square kilometers salt and alkali waste- emerged concerning the modern service land remained for development and the industries, such as finance, logistics, ex- verified reserves of oil reach over 10 bil- hibition, service outsourcing, etc. lion tons and those of natural gas reach TBNA boasts the comprehensive 193.7 billion cubic meters. trade port, of which the throughput ranks top 6 in the world and an international air freight center of North China. It is also in possession of the functional zones, including the national level development area, the free trade zone, the coastal high- tech zone, Dongjiang Bonded Seaport Area, Tianjin Sino-Singa- pore Eco-City, the bonded logistics zone, the airport logistics industry area, and the export processing zone, etc. Therefore, the economic function 35 Special report 193.7 billion m 193.7 billion to up reach reserves gas national the and over ton 10 billion totals Sea Bohai in oil explored of amount The gas. natural and petroleum of resources the in abundant is area The developed. be to land alkali cal environment, boasting over 700 km 700 over boasting environment, cal organizations. capital venture 9 and stations working post-doctoral 52 investment, foreign with 41 centers R&D enterprises, of centers R&D techno and 80 logical centers, project ministerial and provincial 33national, boasts TBNA experiences. management modern and technologies advanced international in proficient talents a senior of number attract large and foster to have out carried policies of been series A scale. its taken initial has talents technological and scientific for center entrepreneurial The technology. and ofscience system vation 2009. ofend October, the by percent 21.4 of rate a year-on-year at grew GDP area’s development the plant, Motor’s Wall rocket Great and “big the project” as such projects large by scale Boosted areas. dynamic country’s most the of one as (UNIDO) tion Organiza Development Industrial tions Na United the by listed row. also was TEDAa in year 12th the for develop zones, ment technological and economic state–level 53 from top the on stood proudly Zone, of Manufacturing part a Advanced (TEDA), Area Development environment Economic Tianjin and China, throughout investment best list the the of released (MOC) Commerce of advantages. enjoy distinct areas cities in China and even in the world. world. the in even and China in cities other of development example sustainable the good for a setting two is of It countries. efforts joint by developed and built is which world, the in one first the potential. development tremendous water and wetland and 1200 km 1200 and wetland and water 36 TBNA enjoys a favorable ecologi favorable a enjoys TBNA inno multi-layer a built has TBNA Ministry the 2009, of December In Tianjin Sino-Singapore eco-city is is eco-city Sino-Singapore Tianjin 3 , rendering the district a district the rendering , 2 saline------2

New movement environmental protection, etc. protection, and environmental conservation resource fields, social system, rural areas, rural and sys urban of foreign tem management system, system, managerial technology land innovation, and financial science system, of economic reforms and including aspects, 10 restructuring, concerning enterprise reforms pilot launch to steps significant take to area the help to TBNA in Reforms Supporting Comprehensive Pilot Launch to Plan Overall the of approval gave Council State the 2008, 13, March On policies. favorable exceptionally enjoys TBNA China’s in future. eration coop international of forms various for model a providing eco-civilization, advanced of demonstration the and ogies technol friendly ronmentally envi and conserving energy of application the innovation, eco-theoretical the regards an asplatform international offers also eco-city The promote its management system and implement national development strategies. strategies. development national implement and system management its promote Street. Newport the in located be People’s TBNA new will Government The District. Dagang District, Hangu District, Tanggu original the replace to district, administrative TBNA a establish to agrees Council State started. system ministrative ad Area New Binhai the marking divisions, administrative Area New Binhai Tianjin As a new special zone, zone, special new a As Experts comment that, the adjustment to the administrative divisions of TBNA will of TBNA will divisions administrative the to adjustment the that, comment Experts the adjust to approved officially China of Council State 2009, 9, November On Airport-based Industrial Zone Industrial Airport-based Advanced Manufacturing Advanced Zone Manufacturing - - - Development Zone IndustrialBinhaiHigh-tech Nangang Industrial Zone Seaport-based Industrial Zone Seaport-based Central Business District Business Central Seaport Logistics Zone Logistics Seaport Coastal Leisure & Tourism Zone &Tourism Leisure Coastal Sino-Singapore Tianjin Eco-City Sino-Singapore Southern Port Southern Northern Port Northern - - CITY

a City of Tourism and Cuisine ituated in the river valley along the lower part of Xiang River, Changsha is the capital city of Hunan Province. The recorded history of Changsha can be traced back 3000 years. Tomb relics from the primitive periods witnessing the earliest human of activities have been discovered in this region. During the Spring and Autumn Period, the area developed into an important townS within the State of Chu, one of the seven warring states that existed before China’s unification by Emperor Qin. After Emperor Qin unified the country, the town was set up as a county and later became the capital city of a state in the early Han Dynasty. The tomb excavation site of Mawangdui found in the eastern suburb of the city is a family graveyard from that period. The most fantastic historical relic should be the well-preserved mummified remains of a Western Han Dynasty woman excavated from the tombs. Some of thousands of relics unearthed include silk products, paintings, lacquer works, potteries, bamboo slips used for writing, weapons and herbs, all of which are exhibited in Hunan Provincial Museum. In the dynasties that followed, the city experienced several expansions and during China’s Qing Dynasty, it has developed into the political, economic and cultural center of Hunan Province. Although not as ancient a capital city as Beijing, Nanjing or Xian, Changsha also has rich historical heritages including old wall remains, tomb sites, religious temples and buildings. What earns the city its reputation among tourists are two things. One is a great man in China’s recent history, Chairman Mao Zedong and the other is Yuelu Academy, a time-honored academic school perched on the scenic Yuelu Mountain. Originally built in 976 during the Song Dynasty, the academy school survived through the Yuan, Ming and Qing dynasties and is considered to be the cradle of Huxiang Culture.

38 Changsha people boast to be the best gourmand of China and here people spend a lot of time eating. Xiang Cuisine is one of the Eight Cuisines in China and has a fine and delicate appearance and a hot and sour taste and the heavy and hot taste is an equal competitor to the spicy food of Sichuan. Street dining and restaurants in the city make every visitor’s mouth hot. No matter the featured snacks, “Stinky Tofu” and “Sisters’ Rice Balls” in Huogongdian or the famous spicy shrimps at Nanmenkou, delicious local food will not disappoint any guests. Changsha people are also renowned for their acting and have created various traditional folk art performances of their own including the local operas, storytelling, drum opera, acrobatics and other dramatic styles. Everyone can feel their hospitalities and enthusiasm by their vigorous dances. Today, most of the entertainment houses in the city present dynamic and entertaining performances featuring a blend of the traditional essence and the modern flare. Dotted with all sorts of bars and pubs, Jiefang Xilu has its own styles. Romantic and quiet bars, dynamic show bars, teahouses, western style restaurants. People of all ages can find their ideal place to spend their leisure time. There are still some classic cultural sights to see in Changsha, although it is not a city that is all-encompassing when it comes to heritage and wonder. ● Cultural relics The famous Yuelu Academy, located at the foot of the scenic Mt. Yuelu on the west bank of Xiangjiang River, is a must-see attraction in the city. It has a history of more than one thousand years. Either for its glorious past as a reputed feudal academic school in ancient times, or for being the site of Hunan University today, Yuelu Academy is a place in the city that both tourists and students like to visit. A walk across the No. 1 Bridge over the Xiangjiang River, just opposite the Yuelu scenic area is the Long Island (Juzi Zhou). In midstream of the Xiangjiang River, it runs almost the entire length of the city and gets the name for its long and narrow sandbank. Today, a scenic park has been built with a marble monument in the middle with Mao’s inscriptions and it is a good place for people to escape the summer heat. The village of Shaoshan, over 100 kilometers south-west of Changsha is a significant place for Chinese Communists for it was home to Chairman Mao Zedong. It is a good place to learn more about this great Chinese man. The old houses where he lived, a museum, a monument and other memorial spots are well preserved in the scenic area and create a kind of solemn atmosphere. Chinese come to pay 39 CITY

their respects here during the memorial days. ● Historical sites The most fantastic historical relic should be the well- preserved mummified remains of a Western Han Dynasty woman excavated from Mawangdui Han Tombs. The remains have lasted over more than 2000 years and the skins are still stretchy. Thousands of unearthed relics include silk products, paintings, lacquer works, potteries, bamboo slips used for writing, weapons, herbs, and so on. These are all exhibited in Hunan Provincial Museum. At the very north end of the city near the No. 2 Xiangjiang Bridge is a Buddhist temple called Kaifu Temple. It was originally built in 927 and is featured in the typical Chinese Buddhist temple architectural style. There are several parks in the city including Wangyue Park, Southern Suburb Park, Xiaoyuan Park to the east of the city center near the railway station and a zoo near the provincial museum. ● Hunan cuisine Hunan Cuisine, also known as “Xiang” Cuisine is renowned as one of the Eight Cuisines of China. It is features a fine and delicate appearance together with a hot and spicy flavor. The chefs cut the vegetables into fascinating shapes and patterns and use them to create a a lowland area with relatively high humidity. Therefore, as with handsome assortment of cold dishes. Each dish tells its the people of Sichuan, the local people have developed the habit own story. of eating capsicum to combat the humidity and induce a feeling Like China’s southwestern Sichuan Province, the of coolness. Hunan Cuisine has a hot and strong savor. Typical major part of the Hunan Province is of this cuisine is the famous seasoning called Liuyang Lobster Sauce. This is a kind of bean sauce made with pepper and capsicum that is often added to dishes to create a hot flavor.

Featured Hunan Specials Three-Boxed Birds This name may seem a little strange and doesn’t tell the story clearly. It was said that in 1920s, an official’s wife had a stubborn headache and a doctor suggested that she buy a sparrow, a pigeon and a black-bone hen as ingredients for a Chinese herbal medicine soup. The doctor first put the small sparrow into the pigeon and then put the pigeon into the black-bone hen, hence the name three- boxed birds. Then the boxed birds were steamed with herbs for a long time and the finished dish comprised both the soup and meat for eating. The story doesn’t say whether the lady’s headache was cured or not. However, the dish became popular in the country. 40 hole in the bottom of the eggshells and removes the eggs. Then the egg white with a prepared chicken soup and salt are put back into the shells again and cooked. The most delicate of these will have a smooth cover and tender taste.

Spicy chicken cubes This is probably the most typical local dish. It was said that the one who hasn’t eaten this dish equals is one who has never eaten Hunan Cuisine. Simply stir-fry the chicken dices with pepper, capsicum, vinegar, over high heat. The finished dish should have a bright color and spicy flavor. It is easy to describe, but very hard to cook.

Fried stinky tofu Don’t be scared away by the word “stinky” in its name, although it does not smell very good and has an awkward appearance, it tastes quite pleasant. The outside is crisp with a little salty savor and the interior is tender. It was said that Chairman Mao Zedong tried this snack when he visited the city in 1958.

Sisters’ rice balls These are a kind of rice balls with fillings of meat or sugar. The meatballs have mushroom pieces, meat, and spring onions inside and are made into the shape of pomegranate while the sweet balls have the fillings of sugar, dates, meat and sweet-scented osmanthus and often resemble a peach. On the day of happy events, the two are presented in contrasting colors to create a happy Crisp sesame duck atmosphere. A duck is fried in peanut oil — Edited by li zhen until its skin turns golden. Spicy seasonings and sesame oil are then added to the fried duck. The finished duck is cut into pieces and made into assorted cold dishes. It is crisp, tender and has a savory taste.

Non-Yolk eggs with mushroom No one will be surprised by a plate of eggs with a mushroom soup. However, when you try it, you will find the tender eggs have no yolk inside and the delicious soup will melt in your mouth. The chef makes a tiny 41 pini o n O Strengthen Business Compliance Operation

―Enlightenment from reconstruction of Siemens compliance system

By Wang Zhile

n 1980s when I studied in Germany, I visited Siemens Mu- its supposed tariff of 35%) on such products. In these years, the seum of Siemens, in order to get an understanding of the company is said to have had an accumulated tax evasion of more development history of Siemens, this century-old brand. I than 3 million US dollars. have always studied transnational corporations assuming So many cases appeared should cause our attention. Sie- ISiemens is an important benchmark. Two years ago, Siemens mens was founded in 1847, and the corruption case would shame was caught in commercial bribery, which made I wondered how Siemens. Commercial bribery case of bother multinational such a large-scale and century-old brand could commit that companies had hurt themselves greatly, too. Transnational com- big corruption. After the case was settled in 2008 in the United panies were supposed to play an exemplary role for standardized States, I consider why Siemens had this irregular operation and operation, but now they set a bad example in commercial brib- how it dealt with the irregularities, against the background of ery. These behaviors will have a very negative effect in China. globalization. In June last year, I visited Siemens headquarter Therefore, we believe that relevant governmental departments in Germany, and had a talk with compliance department of Sie- and public media should severely criticize such illegal operation, mens China when returned to Beijing. Meanwhile, we visited including Siemens and other companies. ten plus other multinational companies to learn their experiences and practices in compliance. We should pay attention to the irregular operation cases of multinational companies in China According to a document issued from US Justice Depart- ment on December 18th 2008, Siemens case involved three subsidiaries in China, one transmission group, a transportation group and a medical group. And Siemens was fined 1.6 billion US dollars because of the bribery case, with more than 20 senior executives dismissed from office, some even affixed criminal responsibility. Besides this case, we traced other cases. From the websites of US Department of Justice and US SEC, we collected irregular cases in China of 12 multinational corporations. Recently, there was a case that had a large influence, meaning the CCI commercial bribery case, which involved nine of top state-owned enterprises in China. The case was reported later on Chinese media. Learned from US SEC, there are still seven or eight companies under investigation, such as ABB, Daimler, Nokia, StatoilHydro and other famous companies. Some cases involved Chinese companies. Media in China revealed a number of other companies in China that were suspected of commercial bribery cases. For example, due to suspicion of commercial bribery, both giving and accepting bribery, Rio Tinto got several employees in Shanghai office arrested. It is said that an executive in Coca- Cola responsible for advertisements distribution accepted bribes of RMB 10 million. Unilever is the latest case. According to media reports, the company took a leak in Chinese customs system, and brought products of the same raw materials but different tariff numbers into China, making use of the lower tariffs (below

42 At the same time, though some multinational corporations fighting against commercial bribery and strengthening compli- had problems in compliance indeed, we have found that in gen- ance operation, Chinese enterprises that are going international eral transnational corporations in China are doing good compli- will certainly be affected. First, foreign-funded enterprises in ance management, and some companies with those compliance China are facing challenges from compliance operation. The problems have had a profound rectification. US Department international trend to curb commercial bribery is extending into of Justice gave a high comment on Siemens’ reconstruction of China, and multinational companies in China will encounter compliance system, by saying that Siemens “has carried out more difficulties, as Chinese corporate culture is quite different remedial and clean-up measures with extraordinary efforts from European and American cultures, meaning Chinese place and built the most advanced and ultra ‘super-class” compli- great attention on relationship, and they often give presents to ance system”. Judging from the experiences on reconstruction each other to maintain and strengthen the relation. So, when of compliance system presented by Siemens, it is no doubt that China is moving to market-oriented economy, this corporate US Department of Justice made such high marks. Siemens had culture together with unspoken rules under a not mature market a very deep rectification and measures were suitable. So, while economy creates a gray area. Therefore, the operation in China we criticize the irregularity by Siemens and other multinational faces a challenge, referring to whether complying with the companies, we should know how they reconstruct compliance under-table rules, or with laws and regulations. Complying with system, and what we can learn from them. laws and regulations will certainly break under-table rules, and meeting under table rules is surely corrupt laws and regulations. Enlightenment from experiences of Siemens’ In this way, foreign-funded enterprises in China are now facing reconstruction of compliance system due to great challenges, particularly at the time when China has a more commercial bribery cases and more regular operation and becomes stricter with compli- I think we should actively follow the trend of strengthening ance problems, after 30 years of reform and opening up. corporate compliance management. According to our investiga- Second, going-out Chinese enterprises will also need to tions, the global companies in recent years are strengthening meet requirements for compliance operations. If Chinese enter- corporate responsibilities, focusing on social responsibility and prises brought domestic under-table rules into international mar- environmental responsibility in last two years, and recently on kets, they would possibly be caught in irregularity cases, which anti-bribery and strengthening corporate compliance. For ex- would cause a weakened competitiveness of the enterprises and ample, United Nations and OECD issued important documents a negative impact to the country. Basing on an Internet search, on this, and various governments also introduced regulations to there is a timely updated blacklist from World Bank, which prevent corrupt practices in foreign countries and regions. The includes the names of enterprises involved in fraud and bribery US Foreign Corrupt Practices Act is forceful, and we can learn cases. These companies are prohibited in a certain period from from it. In such circumstances, we should study the development undertaking projects funded by World Bank. Now there are still trend of global business. Why transnational companies have four Chinese enterprises on the blacklist, and they are China such a trend against the background of globalization, it is really Geo-Engineering Corporation, China Road and Bridge Corpo- worthy of our attention. ration, China State Construction Engineering Corporation and What does compliance China Wuyi Company Limited. If one company is suspected of mean? We believe that com- fraud and bribery, it would not be able to undertake World Bank pliance has both broad and related projects. If other enterprises follow World Bank, the narrow meanings, with the company will lose more businesses. And there are already cases broad meaning including vari- of companies being held of criminal responsibilities. A few ous laws and regulations and years ago, president of Singapore branch of China National Avi- regulatory requirements enter- ation Fuel Group Corporation was sentenced to imprisonment prises should obey, including of four years and three months and a fine of more than 1 million these on social problems, en- RMB, on the charge of violating local laws and regulations. vironmental issues, anti-cor- Third, commercial bribery has become a major barrier ruption, anti-monopoly, anti- for the development of Chinese businesses. The importance of fraud, etc. But it is the narrow compliance lies in that, if there is a serious compliance problem, meaning of compliance that one company may be forced to close down. Such as Sanlu Milk we are discussing, meaning Powder Incident and Delong Case, these are examples of closure anti-commercial bribery. In of enterprises due to compliance problems. And there are many my opinion, these compliance more such cases. problems with transnational After 30 years of reform and opening, the development of corporations coming up in Chinese enterprises have come to a new level, and they have recent years are in fact reveal- turned away from irregular operation to regular operation, en- ing the problems with trans- tering a new era of compliance operation. If enterprises want national corporations in com- to develop a larger and stronger and a long term business, they mercial bribery and irregular must be compliant; it is easier to become bigger and stronger operation on their way for a relatively, but it harder to stay long, as those long established en- global development. It is very terprises are all compliant companies. useful for our Chinese compa- Therefore, we suggest that Chinese enterprises should nies, because I think Chinese begin the third upgrade from now on. Chinese companies have enterprises are facing a serious made great progresses in hardware, and they have many fac- compliance management chal- tories and equipments of world-class. Meanwhile, they also lenges. made progresses in systems, corporate management and group Facing the global trend of management. Even if they are following mature systems, they

43 pini o n

O are now more proficient in imitation. However, we still fall far behind in concept. Our businesses are going global, and it is a problem that whether we have known the concept of commitment to global responsibility and to social environment of such comprehensive responsibility. The first and foremost responsibility at present is whether compliance can be achieved. So I say our enterprises need a third upgrade. To the grim challenge of compliance operation and compliance risks, how should we respond? I have a few suggestions as follows. First, multinational companies should set examples for Chinese enterprises in compliance operation. Transnational corporations face challenges of compliance operation in regions where the market economy environment is not standardized yet. Transnational corporations should not only set up models, but also assist Chinese enterprises in nies now are leading the compliance in China, and they have set compliance and establishing compliance concepts and mecha- up detailed compliance management systems. At the same time, nism. This means that there is great potential for multinational we should also be alert that there are many companies with companies to contribute to the compliance in China. Here we problems, some even with more serious issues than Siemens. So propose three responsibilities: one is the primary responsibility, I think Chinese enterprises should seize the opportunity, turn- compliance operation; one is the overall responsibility, social ing compliance challenge to compliance opportunities. environment responsibility highlighted a few years ago; the third Third, Governments should boost compliance operation is global responsibility, referring to the responsibility not only in through compliance administration. their home country, but also the country hosting their operation. In my opinion, governments have duties on corporate com- The 12 cases here we show, including Siemens’ case, revealing pliance operation. We suggest governments to place curbing that transnational companies are doing well at home (including commercial bribery and boosting compliance opinion as impor- the United States), but really bad in developing countries, so I tant tasks. Why, because commercial bribery is an important think multinational corporations should bear this global respon- source of social corruption. If commercial bribery can not be sibility. stopped, the fight against corruption would be difficult to win. Second, local enterprises in China should turn compliance We used to crack down on corrupt officials, but neglect enter- challenge into compliance opportunities. prises that give bribery. We should learn from the experiences and lessons of We should promote corporate compliance as an impor- Siemens and other global companies, and place compliance tant channel to curb commercial bribery, and punish the evil as a primary corporate responsibility. Like Siemens and other and encourage the good. We can learn from foreign practices multinational companies, top executives should directly take and punish irregular behaviors of enterprises, even restricting responsibility for compliance operation, a specialized compli- them on market access. We can introduce a blacklist of illegal ance management department and team should be established, enterprises, to list the enterprises involved in bribery or other and compliance management system be improved. Prevention, irregular issues, and to restrict them on market access. More- monitoring and positive response are three important links to over, we should China Insurance Regulatory Commission’s and have a true corporate compliance system. In this sector, the ex- China Banking Regulatory Commission's valuable practices, periences of Siemens are worth learning. and issue relevant guidelines to encourage corporate compli- During the survey, we found that a group of Chinese com- ance. The governments should draw lessons from international panies are doing well in compliance. Real estate industry is experiences, and promote compliance administration. Now that possible to encounter compliance problems, as there are many many irregular behaviors of enterprises are related to irregular companies to get lands in an illegal way. However, there are governmental administration are combined, the governments companies, such as Vanke, Gemdale and other listed companies, should be open, fair and impartial. which are doing quite well in compliance, by insisting on market Besides, we should strengthen international cooperation and competition, and no commercial bribery. There are also central boost global fighting against commercial bribery. On this issue, enterprises (for example, CNOOC) setting good examples, who Chinese government should have its own voice, not to wait till have specific laws compliance department to manage compli- others criticize us for irregularities. In fact there are many enter- ance. It is worth mentioning that China financial industry in par- prises in China that are doing well in compliance, so we’d better ticular. This industry has China Banking Regulatory Commis- sum up and learn from their experience. sion and China Insurance Regulatory Commission that are committed to compliance management and have issued compliance (Author: Head of Beijing New Century Transnational management guidelines. Chinese banks and insurance compa- Company Research Institute)

44 pini o n O Strengthen Business Compliance Operation

―Enlightenment from reconstruction of Siemens compliance system

By Wang Zhile

43 pini o n

44 E conomy

Too Hot ? Too ?

By Stephen Green

The lack of significant tightening will put continued up- Economic outlook ward pressure on home prices. The risk of inflating a bubble China’s economy will likely start 2010 with double-digit clearly exists. Prices in some first-tier cities – including GDP growth, a booming infrastructure build-out, a tightening Shanghai, Shenzhen, and Beijing – rose by 30-40% in 2009. labour market, and increasing worries about inflation. However, Second-tier cities may be next. That said, the sector will see concerns about the global recovery and about what will hap- increased supply starting in Q2 as projects start to pre-sell pen when the stimulus package ends mean policy makers will – and prices may be more volatile than they were in 2009. be hesitant to tighten. We expect growth to moderate during Banks may well be guided away from lending to the real- the year as consumer spending grows steadily but investment estate sector at some point in 2010 if prices continue to head growth slows. upwards. At some point – perhaps in 2010, perhaps later – One of the big unknowns in making economic forecasts the southern city of Shenzhen could introduce a property tax for 2010 is just how many more infrastructure projects will on an experimental basis (we understand that the system is start. The CNY 4trn (USD 580bn) stimulus package announced ready). This would be a great way for municipalities to raise in October 2008 was meant to last two years. However, it only a steady stream of income and thus reduce their dependence includes projects in which the central government is financially on selling lots of land, which results in messy urban sprawl. involved. Tens of thousands of projects financed by local gov- Rolling out such a tax nationwide, though, will take years ernments and banks started in 2009 – and project growth was given the extent of the data needed, as well as likely protests still running at some 40% y/y at the time of writing. While the from developers and urbanites. central government moved to start curbing over-capacity in Financial issues some manufacturing-heavy sectors in September 2009, it has not yet moved to control infrastructure projects. At the beginning Total government debt may now stand at more than 80% of 2010, banks will also start lending aggressively again, which of GDP. The big unknown is how leveraged local government- will unleash another wave of projects. Thus, H1-2010 is likely to controlled companies are. Researchers at the Ministry of Fi- see lots of new projects. Given the huge amount of activity that nance (MoF) informally estimate that local governments now began in Q2 and Q3-2009, by the middle of 2010, we expect to have around CNY 8trn (USD 1.2trn) worth of debt. The number see an erosion of the year-on-year investment growth numbers. could be considerably bigger. Given these companies’ lack of profits, as well as endemic Standard Chartered Research Forecasts: China corruption, these debts will show up as bad bank loans at some point (three to five years out, most likely). The problems will 2009 2010 2011 2012 be worse at city commercial banks and credit co-operatives, GDP (real % y/y) 8.5 10.0 9.0 8.0 where risk management systems are still immature. While CPI (% y/y) 0.1 3.5 3.0 2.0 resolving this will be messy, the government should be able to * prevent a systemic crisis by recapitalising the banks and rural Policy rate (%) 5.31 5.85 5.85 5.31 credit co-operatives with, say, USD 500bn worth of FX re- CNY-USD * 6.82 6.70 6.50 6.30 serves (or other public resources). Of course, this is not a free lunch for the economy – ultimately, household wealth will be Current account 7.0 5.2 4.9 4.0 used to stabilise the system. However, the authorities should be balance (% GDP) able to muddle through. Fiscal balance (% -3.0 -2.0 -0.5 -0.5 GDP) Policy * end-period The Chinese yuan (CNY) will be a huge focus of attention Source: Standard Chartered Research in H1-2010 as the market waits for Beijing to de-peg from the dollar, again. We do not expect anything significant to happen We forecast Q1-2010 real GDP growth at 11% y/y, slowing before Chinese New Year (mid-February), given that some 50- to 9.5% by Q4 and 10% for the year. 100mn migrant workers will return home for the break and that With CPI inflation likely to remain below 4% y/y for most of the government will not want to cause them extra worry. At 2010, the central government will probably delay significant mon- some point in Q2-Q3, Beijing will likely de-peg and then return etary tightening. However, we foresee a couple of rate hikes in Q1 the CNY to the gradual appreciation path it followed between and Q2 as the central government battles to maintain control of 2006 and H1-2008. There is some discussion in Beijing of im- inflationary expectations. At these levels, however, rate hikes will plementing a policy of appreciation against a basket of curren- have little substantive effect. We expect year-on-year CPI inflation cies and allowing greater flexibility. But we believe this is more to top out in Q2-Q3, and to average 3.5% for the year. likely to happen in 2011-12, when the global outlook is clearer

45 CONOMY and the domestic economy is on a steadier footing. We forecast Party will likely decree that its main job for 2010 is, in addition E the CNY at 6.70 against the USD at end-2010. to containing inflation, restructuring the economy. Faced with the global slowdown, China threw resources at infrastructure. Where China’s growth comes from While the government offered some subsidies to buyers of white At its Economic Work Meeting in December 2009, the goods and increased spending on health and education, the majority of the stimulus went into infrastructure. Many local econ- Sources: CEIC, Standard Chartered Research omists became despondent about policy choices which further embedded the old growth model (as the chart below shows, investment has become even more important). 2010 will hopefully be the year when the leadership focuses on the medium term. Among other things, a strong restructuring agenda needs to include: (1) opening up leading services-sector companies to private competition; (2) introducing more CNY flexibility, and thus appreciation; (3) liberalising interest rates to give savers higher rates of return; (4) unveiling a clear and fully funded health- care reform plan; (5) introducing a property tax and constraints on land sales; (6) leasing out more rural land (and paying farmers properly for it); (7) allowing retail energy and utility prices to reflect costs; (8) forcing state firms to pay dividends into the budget; (9) reforming the household registration system to give rural migrants access to urban services; and (10) simplifying regulations.

(Author: Head of Research, Standard Chartered Bank Sources: CEIC, Standard Chartered Research (China) limited)

“I Won’t Invest in China’s Real Estate” —Can Behavioral Economics Save the Capital Bubble?

By Guo Liqin

“I cannot see clearly when the real estate bubble in China principles, Professor Shiller delivered his keynote speech titled will burst. However, there is certainty that housing prices will Rational Regulation: Asset Bubbles and Financial Innovation, swiftly fall, and China can learn the lesson from the 1980s’ real Professor Shiller asserts that the main reason behind the finan- estate market in Japan” said Professor Robert.J.Shiller, “I don’t cial crisis, dating back to early 2008, is a speculative bubble. He want to put my judgment as a foreigner on the Chinese people, explained and analyzed the bubbles in current real estate, stock however, the housing price is obviously too high in some big and oil markets using Behavioral Economics. He compared these cities. My suggestion is that since income is in an overall down- speculative bubbles to the impulse of gambling, the same type of ward trend, the housing price should be much lower. Although irrationality that creates and then blows the bubbles bigger and income will grow as time goes by, the value of Chinese houses bigger, the bursting of which will lead to economic fluctuation. should not reach that of London and New York for another 20 to Take a real estate bubble as an example, people are always con- 30 years. Currently, the soaring housing price in China is like a cerned about limited land resources and the growing population, bubble. Personally, I will definitely not buy or invest in property which causes the real estate market to rise on the nervousness of in China.” people, and in turn affects the housing price. Currently, however, These are Professor Shiller’s comments from the annual the rebound of the housing price is strange to economists since forum “Capital bubble and financial monitor” held on December the available data does not support the increase. Likewise, the 13 and jointly organized by the Hanqing Advanced Institute of craze of investors is the main reason for stock market bubbles, Economics and Finance, and the School of Finance at Renmin where the fever and emotion are driven by uncertain rumors. Dr. University. It was quite interesting to see the discussion between Shiller repeated the importance of rumors, citing the example of Professor Shiller and his colleagues Zhu Ming, Ph.D. Deputy a sharp rise in the price of capital which led to more rumors and Governor of the People’s Bank of China, Huang Ming, professor reversely boosted the price of capital. “Rumors are the real thing of Finance, and Xie Ping, General Manager from China SAFE pushing the factors behind economic development.” He finally Investments Ltd, together with the host of the forum Chen told the audience about the influence of consumer confidence on YuLu, vice president of Renmin University. the economy and the right attitude to have towards the financial Regarded as an idealist and a traitor to classic economic crisis.

46 His speech then received comments on insider trading, affiliate transactions, from the other members of the forum. and exposing the fake information of listed Mr Chen Yulu said “I believe Profes- companies. For instance, it is very ironic that sor Shiller said the right thing, however, many investment banks based in China sell some of what he said is not true. It is true many extremely complicated financial de- that during the last 6 years, Chinese real rivatives from western banks to the Chinese estate has grown in an unhealthy way people.” due to macro regulation policies. Howev- Mr. Zhu Ming, with a sense of humor, er, it is wrong because, if a Beijing man asserted that Professor Shiller’s theory can- didn’t purchase a flat in the last few years not explain many realities in China. “For and instead followed Professor Shiller’s instance, ” he pointed at a chart in Profes- words, it would be a huge loss for him sor Shiller’s PPT, “the housing price in the since he cannot afford the skyrocketing Untied States went straight down starting prices now. Despite all these the fluctua- in 2007, while it is interesting to see that tion of the Chinese housing price in 2009, which we call the first the Chinese housing price has continued with an upward trend year of post-crisis, is a showcase of the Chinese economy. The during the crisis. I can go further and say that even in an era when conflict has already been pushed to the climax. Some economic the Chinese consumer confidence index is at the bottom, the hous- sages have claimed that if China continues to ease its monetary ing price is still climbing.” and fiscal policy, then the real estate market in 2010 will be on the Notwithstanding, as Mr Chen pointed out, we are stepping verge of collapse.” into an era with four features: first, the global economy will Mr. Huang echoed this idea, “the property industry is show a slow recovery trend after rebalancing; second, the global very huge in China since it represents a great amount of capi- financial market will move into a low leverage era; third, global tal, as well as employment and stimulation to the whole econ- macroeconomic management will enter an epoch when the G20 omy. In my point of view, the housing price of population-in- and new IMF jointly function; fourth, China is a developing tensive cities in China, like many Asian countries, is difficult country in rebound, so it will definitely adopt the government- to fall. The reasons are as follows: first, China is in a steady oriented chasing-model economy, face the severe conflicts process of urbanization; second, Chinese culture has a special between the traditional and the modern, between fairness and preference for real estate; third, there are limited investment efficiency. Can Behavioral Economics―a new theory that still opportunities in China due to the control over foreign ex- hasn’t been written in a textbook―save the capital bubble? We changes and lack of reliable financial products mix, investing hope so but doubt remains. in real estate is like gambling to many people. Fourth, weak Robert J. Shiller, who’s widely published book Irratio- transportation systems in many big Chinese cities have pushed nal Exuberance is an analysis and explication of speculative up the housing price in many city centers.” He also said that bubbles, with special reference to stock markets and real estate. the best measure the government could use to hit venture in- This book was published in the early 2000. Two months later, vestments on real estate would be to launch a property tax in the prophecy laid out in his book came true: the dotcom bubble China, where the tax is currently zero, which is rare in most in the burst which caused the sharp fall of the U.S. stock market, countries. and led to global economic recession. He pointed out that based on Professor Shiller’s speech, the He is the Arthur M. Okun Professor of Economics, at the biggest lesson that China should learn is to improve communica- Department of Economics and Cowles Foundation for Research tion between the regulatory bodies of government and academia. in Economics at Yale University, and the Professor of Finance “Our regulators have too much control in the qualification of IPOs and a Fellow at the International Center for Finance at the Yale and the amount of financing they receive; there is weak regulation School of Management. Official Antimonopoly

Website Opens By Guo Liqin

hina’s antimonopoly law website opened in December national competition law, special column on economics and 19, 2009. Netizens can log in at http://www.antimo- anti-monopoly, etc. Besides, it will also provide the updated nopolylaw.org to see the update information of in- academic activities; study forum and online survey to ex- depth anti-monopoly law theory and case studies, ac- perts, students, and those who are interested in anti-monopo- Ccording to the organizer. ly law. This website bases its think tank on the law school and Among all these activities, anti-monopoly forum column economic school of Renmin University of PRC, University of mainly releases the word version of speeches delivered by high Bonn of Germany, Hitotsubashi University of Japan. Established officials and sages in the field. Anti-monopoly cases column by Yang Dong, associate professor in law School of Renmin publishes the updated international legislation and implementa- University, it is part of China Civilian law website launched by tion of anti-monopoly law. Besides, columns of financial super- Professor Wang Liming. vision law, Financial Holding Company Law, investment law, The website mainly release the information about anti- law of insurance and commercial banks, corporate law and Fis- monopoly law forum, anti-monopoly law case studies, inter- cal and Tax Law will supplement the theme of website.

47 Update billion, also a historical high, 55.9% increase year-on-year, year-on-year, increase 55.9% high, (See Table 1) month-on-month. 18.8% growth historical a also billion, US$112.29 import the while month-on-month, 15% year, growth 17.7% history, year-on- in value increase export monthly highest fourth the US$130.73 billion, reaches export monthly the value, total the Among month-on-month. growth 16.7% year-on-year, increase 32.7% billion, US$243.02 to amounted December for value export and import total The growth. strong appears Trade US$196.07 year-on-year. 34.2% drop billion, reaches surplus oftrade balance yearly Finally,the year-on-year. US$1005.611.2% billion, decrease import yearly the while year, value, total the US$1201.67 reaches yearlythe export Among 16%2007. billion, year-on- drop from increase from slightly 13.9% but falling 2008, US$2207.27, import is total 2009 for the value that, export show and customs from statistics The year. them, the monthly import value hit the historical record, and and history, in highest record, forth the listed also historical value export the monthly the hit value Among import export. monthly and the them, import both in increase month-on-month and year-on-year in growth rapid in manifested as December, in export and pickup strong showed import and November, in up pick to total started value the that, After 2009. August in stable became trend the 2009,and March in of recovery sign the shows and 2008, November since fall consecutive a experienced trade O and 8.7%, respectively. 8.7%, and of terms in year-on-year increase; increase Whileis theseparately figure6.7%, forthe month-on-month 5%, 55.4% 16.1%,and 31.5%, is adjustment seasonal the after port 48 Value Total Import Value Total Export Value Export and Total Import Item deficit is -) deficit +; is (surplus Balance Export and Import · Table 1 Brief on China’s import and export in Dec. 2009 Dec. in export and Table China’s on import 1Brief Note: The figure for the value of total import and export, total export, and total im total and export, total export, and import total of value the for figure The Note: The statistics from customs also show that, China’s foreign China’sforeign that, show also customs from statistics The Due to the international financial crisis, China’s foreign foreign China’s crisis, financial international the to Due Im/Ex in December 2009: Im/Ex December 2009 and the whole twelve months of this this of months in twelve whole the export and 2009 and December import trade foreign China of profile the released China of Republic People’s the of toms Cus of Administration General 2009, 10, January n Absolute Value 130.7 112.3 18.4 243 December Increase +55.9 +32.7 +17.7 ±% Witnesses Strong Pickup - Absolute 1005.6 2207.3 2207.3 1201.7 Value 196.1 Jan. –Dec. Jan. Unit: Billion USD Billion Unit: Increase -16.0 -13.9 -13.9 -11.2 ±% - - - demand is strong. It helps the recovery of the whole world’s world’s whole the of recovery 1&2) Table see Chart 2, economy. detail, (For more the helps It strong. is demand internal the only but not effect, its symbol exerted a has policy is simulative value the that import in growth sharp the while, Mean Trade. foreign China’s of recovery rapid the show which Month Sept. Dec. Aug. Nov. Feb. Mar. May Jan. Jun. Oct. Apr. Jul. Table 2 Brief on China’s import and export from Jan. to to Jan. from export and Table China’s on import 2Brief Item Total Export Value Total Export Value Export and Total Import Total Import and Export Value Export and Total Import Value Export and Total Import Value Export and Total Import Value Total Import Value Total Export Total Import Value Total Import Value Total Export Value Total Import Value Total Export Value Total Import Value Total Export Total Import Value Total Import Total Import Value Total Import Total Export Value Total Export Value Export and Total Import Total Import and Export Value Export and Total Import Value Total Import Value Export and Total Import Value Total Export Value Export and Total Import Total Import Value Total Import Value Total Export Value Total Import Total Import and Export Value Export and Total Import Value Total Export Value Total Export Value Export and Total Import Total Import Value Total Import Value Export and Total Import Total Import Value Total Import Value Total Export Total Import Value Total Import Value Total Export Value Export and Total Import Dec. 2009 Dec. Absolute 200.21 162.02 218.94 182.57 105.42 103.01 124.93 115.94 170.73 197.54 164.13 110.76 141.79 Value 90.29 208.2 64.86 90.39 78.80 60.07 86.78 94.79 88.76 75.37 91.94 95.41 103.7 130.7 112.3 191.7 71.73 113.7 51.41 87.16 88.0 94.6 243 Unit: Billion USD Billion Unit: Increase ±% Increase +55.9 +32.7 +26.7 +17.7 -22.8 -25.2 -22.6 -26.4 -23.4 -23.0 -20.9 -25.9 -23.0 -25.0 -20.6 43.1 - -25.7 -16.2 -13.2 -21.4 -13.8 -19.4 -14.9 -29.1 -25.1 -20.1 -10.7 -24.1 -11.4 -17.5 -17.0 -17.7 +9.8 -17.1 -6.4 -1.2 - Chart 1 Monthly comparison of China’s export value between Looking into in December 2009, the local government 2008 & 2009 made great effort to boost outward demand and exportation. Unit: Billion USD According to the statistics, in December only, the monthly import value of Guang Dong province hit US$39.97 billion, increasing 23.5% y-o-y, 15.2% growth month-on-month; the monthly export of Jiangsu province, Shanghai city and Zhejiang province all exceeds US$1 billion, the figures are US$20.35 billion, US$15.21 billion and US$13.61 billion, increasing 17.6%, 23.8% and 14.3%, respectively. At the same time, the monthly import value of Shandong province, Fujian province and Beijing Municipal city is US$8.09 billion, US$5.71 billion and US$5.01 billion, a year-on-year increase of 15.3%, 23.2% and 6.5%, respectively, and a month-on-month increase of 7.4%, 20.6% and 10.1% respectively. Export & Import mix Export According to the statistics, among the products we export in 2009, China has made export tax rebate policy adjustment for 7 times consecutively involving US$676.02 billion worth of goods, falling 16% year-on-year. Among others, the export of labor-intensive products was Chart 2 Monthly comparison of China’s import value between better performed than the average 16% decrease this month. See 2008 & 2009 Table 4. Unit: Billion USD Table 4 Export value of main labor-intensive commodities from Jan.-Dec. 2009 Unit: Billion USD Commodities Export value Increase ±% yoy Apparels and accessories 105.7 -11 Textile yarn & fabric 62.16 -8.4 Footwear products 28.17 -5.7 Plastic Products 16.58 -12 Trunk and Bag 14.82 -9.2 Toys 6.2 -10

In the same period, Chinese exports of mechanical and electronic products accounted Trading partners for US$78.05 billion, 26.9% increase During 2009, E.U., U.S., and Japan remain the top 3 as Chi- year-on-year. na’s trading partners. (See Table 3) In this period, the bilateral Import trade volume between China and E.U. amounted to US$364.09 In terms of billion, falling 14.5% y-o-y. Sino-American bilateral trade value China’s import was US$298.26billion, 10.6% decline y-o-y. China’s trade vol- commodities, main ume with Japan in 2009 accounted for US$228.85 billion, 14.2% bulk import in- decrease y-o-y. creased variously in terms of volume. Among them, iron ore was imported 630 million tons, Table 3 Bilateral trade value of China’s top trading partners 41.6% increased yoy. The average import price was US$79.9/ in Jan.- Dec. 2009 ton, 41.7% drop. 200 million tons of crude oil was imported by Unit: Billion USD China in this year, 13.9% growth yoy. The average import price was US$438/ton, 39.4% fall. China’s import of soy beans had in- Rank Partner Dec. Jan. – Dec. Increase ±% yoy creased by 13.7% yoy, reaching 42.55 million tons in 2009, with 1 EU 37.83 364 -14.5 average import price of US$441.5/ton, 24.3% decrease. 2 US 31.75 298.26 -10.6 Meanwhile, from January to December 2009, China im- 3 Japan 25.54 228.85 -14.2 ported 419 thousand units of automobiles and vehicles 2.8% 4 ASEAN 25.95 213 -7.9 increased year-on-year. 5 Hong Kong 20.80 174.95 -14.1 6 South Korea 16.67 156.23 -16.0 (Notes: All the data referred in the article are based 7 Taiwan 11.88 106.23 -17.8 on the statistics from China Customs)

49 FOCUS normalization of cross-strait relations. the of cross-strait from China normalization benefits in will Taiwan in challenges industry and finance risks Mainland, of opportunities, understanding With potential the center. important trade an and of financial target the regional important has realizing Taiwan’s on cooperation meaning services financial and cross-Strait banking important, more What’s Region. China Greater in customers to services financial integrated more provide to and world, the in markets capital rising fastest the ofmar one ket, Mainland China enter Taiwan- to for institutes chance financial a capitalized bringing Taiwan, in industry finance Strait. the industry cross services financial and negotiation banking the of starts mutual-opening on MOU this of signing The and cooperation. supervision industry banking on MOU a signed Strait the cross sides both Agreement that learned was it that, (ECFA). Framework after long Not Co-operation long-waiting Economic this signed Cross-Strait formally and discussion a had sides New increase policies needed for Taiwanese banks Taiwanese for needed policies increase New T from continuously expanding mainland economy, as they are are they as economy, mainland expanding continuously from return improved good a have an may they have And rate. would return and Taiwan profitability in institutes banks Mainland, financial the and enter to allowed than are higher they even if rate Thus, return 20%. a had Mainland China in banks major and 10%, topped Singapore in banks three top the while 2.47% was only, equity on return weighted a average had banks Taiwan-capitalized 2008, In 1).Table in seen (as aspect and every Singapore in in shortages have to Taiwanseems in industry industry the Kong, Hong banking with Compared profits. low and return of banks rate low the byTaiwan, annoyed in being are Taiwan in competition com fierce the maintaining to Due and petitiveness. improving on challenges facing wan 50 C Obviously, it has a positive influence on banking and and banking on influence positive a has it Obviously, It has been a long time for the overcrowded banks in Tai in banks overcrowded the for time long a been has It Meanwhile, it is helpful to boost Taiwan towards the middle-term target of growing into regional trade and financial center financial and trade regional into of growing target middle-term the Taiwan towards boost to helpful it is Meanwhile, Region China Greater in services financial more out carry to have rights will banks Taiwan-capitalized for long profits by thin annoyed is which industry Taiwan to banking values great It has recently cooperation and supervision industry banking on of Understanding aMemorandum Taiwan and signed mainland China mintang, met in Singapore. And it is reported that both both that reported it is And Singapore. in met mintang, of Kuo president former of Taiwan former and vice-president Zhan, Lian and PRC, of president Jintao, Hu Recently, stable. stays Strait the cross relationship he ross-strait Financial forBankingIndustry Cooperation

Brings NewChances - - - - gion. gion. actively exploring business opportunities in Greater China Re Take Taiwan’s advantage in geography and culture and Take geography in Taiwan’s advantage ern bank of Taiwan Strait, in order to boost the economic and and economic the boost to order in Strait, Taiwan of bank ern West at zone economic of construction the up speed to agreed Fujian What’s government mainland Guangdong. China of recently that important, to more equaling and Taiwan of of times 1.3 that dollars, US billion 500 about of provinces GDP two total a the had time, that At locates. Triangle River where Pearl Province, Guangdong in million) (96little a that Taiwan, than in smaller that of times four nearly million, 86 about center. financial regional a as position its improved greatly has angle, Tri the to close geographically is which Kong, Hong Triangle, River Pearl in economy developing fast of tailwind the Taking 1). (seecrossing Picture relation have aclose cultural they and Zhejiang Strait, the and Fujian to ad close is special Taiwan as their play vantages, fully should banks Taiwan-capitalized Therefore, network. operation and size assets in later the with comparable not are former the as mainland, lo China in the banks cal with competing directly are banks Taiwan-capitalized Table 1 The share of employ of share The ment of this industry this of ment industry in GDP (%) GDP in industry under the manage the under ees in the industry industry the in ees Share of Finance Finance of Share In 2008, Fujian and Zhejiang had a total population of of population total a had Zhejiang and Fujian 2008, In opportunities, market new are there when even However, Market share by share Market Share of assets assets of Share top five banks five top Source: Standard Chartered Bank Global Research Center Research Global Bank Chartered Standard Source: Comparison of Taiwan, Hong Kong and Singapore Taiwan, of Singapore and Kong Hong Comparison banking industry index banking industry - - Taiwan 10.0 4.0 64 64 37 37 Hong Kong Hong 15.0 595 5.5 76 By TonyBy Phoo Singapore 11.0 728 6.0 73 - - - - - trade cooperation between Taiwan and the southeastern coastal region, which will create has great potential for growth. great opportunities for Taiwanese financial institutes, who in turn provide financial services Besides, in-depth development to 50,000 Taiwan-capitalized enterprises and more than one million Taiwanese in China of mainland financial market mainland. will bring chances for Taiwanese banks. Figure 1 The geographic and cultural advantages of Taiwan ross-strait Financial Growing middle class in China mainland Cooperation Brings New Chances With a rapid economic C growth in China, now China is playing an increasingly impor- for Banking Industry tant role in the world, bringing Taiwan more opportunities. In the past decade, China enjoyed a high-speed economic growth of 9% per year. As China has a low labor cost, abundant natural resources, and the government carries out a series of favored policies to attract foreign investments, direct foreign investments increased fast, becoming an important driving force for Chi- nese economy. Over the past ten plus years, foreign-capitalized enterprises in China developed quickly, bringing an increasing population of middle class. Ac- China mainland capital market has a great potential cording to the estimation from Before we consider whether Taiwanese financial institutes can gain long and short-term McKinsey Global Institute, basic benefits from cross-strait economic and trade cooperation, we should evaluate the potential middle class first grows, referring for growth of mainland financial market compared with other markets. Depth is an important to those with an annual house- index to evaluate the potential for growth of a financial market, meaning the ratio between hold income of 25,000 to 40,000 the scale of an economic entity size and the market value of finance industry in this eco- RMB. The institute predicts that nomic entity (see Picture 2). Developing a financial market’s depth usually benefits growing basic middle class will account economies, and families can have more investment chances, while enterprises can find more for nearly half of total urban financing channels, improving capital allocation efficiency and risk management. From this population in China. Since then, point of view, with an upgrading industrial chain in the mainland, mainland capital market top middle class will grow. The so-called top middle class refers Figure 2 Mainland finance market with great potential for growth to those with an annual household income of 40,000 to 100,000 RMB. By 2025, this group will 300 Market Cap/GDP(%) Singapore account for 60% of urban population (see Figure 3). 250 According to McKinsey Global Institute, urban families in China will form the largest 200 USA consumer market in the world. Malaysia (NY+Nasdaq) What’s more important, top Taiwan middle class is mainly consisted 150 Australia of younger people, who usually have a high education and higher. Generally speaking, this group 100 S Korea India Japan(Tokyo) is more skilled in finance and therefore more likely to accept 50 China(SH+SZ) new investment products. Their importance to banks and other 0 financial institutes (whether local or foreign) will increase. This Per Capita GDP, USD growing group of young people -50 with economic power is bringing -10000 0 10000 20000 30000 40000 50000 60000 great opportunities and a bright future for the banks doing busi- Source: World Federation of Exchange nesses in China. 51 FOCUS 52 100 Distribution of funds available to asset managements in China, $billion China, in managements asset to available funds of Distribution Rapid growth The emergence of a middle class amiddle of emergence The 90 60 30 80 50 40 20 share of urban hou seholds by income class,% by income seholds hou urban of share 70 10 Source: National Bureau of Statistics of China; McKinsey Global Institute analysis Institute Global McKinsey China; of Statistics of Bureau National Source: 1 of HNWls of Base case forecast, Q1 2006. forecast, case Base Note: *Others category is comprised of eight markets: Kazakhstan, Myanmar, New Zealand, Pakistan. Pakistan, Philip Source: Candemini I nrenz curve analysis 2008 analysis curve Inrenz Candemini Source: 1985 (In Thou (In 5 4 3 2 1 0 Nurnber Nurnber $I=8 renminbi in 2006. in renminbi $I=8 Includes both national social-security funds and corporate pension funds. pension corporate and funds social-security national both Includes Compound annual growth rate. growth annual Compound Include both retail and nonretail (eg. insurance companies). insurance (eg. nonretail and retail both Include Excludes investments in mutual funds currently not allowed; projections assume dere. assume projections allowed; not currently funds mutual in investments Excludes sands) agement, $billion agement, man under assets Total Some historical figures have been restated as the result of additional country-level date becoming available in 2007 in available becoming rounded date are numbers country-level Chart additional of result the as restated been have figures historical Some Thailand kaand Lan Sri pines, Figure 5 Figure 1990 - Asla-Paclflc HNWls by Market, 2005-2007 Market, by HNWls Asla-Paclflc Source: “The value of China’s emerging middle class” class” middle emerging China’s of value “The Source: 3200 2400 1600 800

1995 0 Rapidly growing demand for investments in various capital markets capital various in investments for demand growing Rapidly Figure 4 Figure 59 55 17 0.8 - 2,400,000 2000 Figure 3 Figure 2005 1,406

Actual Forecast Actual 320 146 122 2001-06=37% 77 87 10 10 12 Fast-growing wealth management market management wealth Fast-growing 83 0 CAGR 2005

2001 32 middle-class segment middle-class Emergenceoflower The fast-growing middle class middle fast-growing The 66 67 20 1.0 2 2,600,000 46 2006-16=25% 2010 0 2006 CAGR 1,477 345 100 1 154 161 2006 99 87 156 middle-class segment middle-class Emergenceofupper 110 2015 2 71 77 23 1.2 forecast 1,408 Source: 2008 Asia-Pacific Wealth Report Wealth Asia-Pacific 2008 Source: 2,800,000 2016 890 380 138 2020 - 2007 1,510 193 123 172 118 415 95 - Inetail and institutional funds Mutual funds Pension insurance Outsounced 2025

The Mckinsey Quarterly, 2006 Quarterly, Mckinsey The 1 - (>200,000 renminbi) affluent Global (100,001-200,000 renminbi) affluent Mass Poor(≤25,000 renminbi) renminbi)(25,001-40,000 class middle Lower (40,001-100,000 renminbi) class middle Upper Japan Mainland China Australla Korea South India Kong Hong Taiwan Slngapore Vietnam Others* Asla-Paclflc Rate(%) Growth 2007 Indonesla 5 4

24.2% 20.3% 22.7% 10.2% 18.9% 16.8% 15.3% 8.7% 2.2% 7.8% 7.1% - management market management wealth Fast-growing management management pension from Opportunities and insurance products. insurance and funds ac bonds, cash stocks, into and counts deposits low- from interest investors of demand mainland as potential the also sessed study the Meanwhile, investment. foreign of amount considerable a attract to expected is and mainland, in services cial finan growing fastest the become will Management Asset agement. man under assets in growth the drive will insurance and pension investments, for demand creases, in mainland China in wealthy of population the as study that, concluded The 5). Figure (see 2006 in billion 156 about U.S. from dollars trillion 1.4 nearly expected reach is to value the 2016, 25%. In about of rate annual an at grow to expected is industry ment manage assets mainland of value The market the that out pointed study findings. similar had also field. income fixed and estate equity real in investment, advantages pro with fessional enterprises those financial especially opportunities, profit potential compa great get will nies service and financial banks other indicates study that the is importance particular Of and (6.0%). average global of fourfold Asia-Pacific in (8.7%) age aver the triple almost 20%, than higher was rate growth in the 2007, Just world. the in individuals worth net high of rate growth est high the has second. China the Meanwhile, ranked and Japan following Asia, in whole the in 20% of share a taking 4), Figure dol 415,000US (seetotaled China in lars) million one than more of assets financial or dollars US (with individuals worth net 2007, high in recently, Wealth Management Global Lynch and Merrill Capgemini by joint-issued WealthReport” Asia-Pacific “2009 to quickly.more According benefits bring to likely is market mainlandwealth management Another study of McKinsey McKinsey of study Another Joiningin this expanding In addition, Taiwan financial financial Taiwan addition, In ------services industry may also benefit from rising demand for pension management. Ac- panies from China mainland to obtain cording to the data from China National Bureau of Statistics, till 2030, the population expertise in IT industry, product man- of 65-year-old and over will take a share of 16%, jumping from 7.0% in 2000 (see agement, risk management, customer Figure 6), which will impose a heavy social security burden on Chinese government service and other areas. , especially when family planning policies taken into account. Therefore, the public According to a data provider Dea- sector and individuals will be in an urgent need of professional pensions manage- Logic, overseas investment from Chi- ment, giving reputable foreign financial companies lots of opportunities. nese enterprises in 2007 totaled about 30 billion US dollars, tenfold of that (3 Business opportunities from mainland enterprises’ going out billion US dollars) in 2000, but was still Many companies in China mainland have accumulated a large amount of much lower when compared with many money in recent years’ rapid development, including these state-owned enterpris- developed economic entities (see Figure es. And many of them are intended to go out and integrated into global economy, 7). With more Chinese enterprises to go which can create chances other than bank retail services. Going out of China international for further growth, par- mainland enterprises is the result of Chinese governments’ favor policies (for ticularly at the time when many Western example, in consideration of the long-term development, looking for raw mate- companies just experienced the current rial supplies in the global market), on one hand. However, the overseas expansion global financial crisis, these enterprises – especially for the banks and insurance companies – is increasingly driven out will have an increasing demand for of commercial considerations. Setting up overseas branches helps financial com- services in international mergers and ac- quisitions, private equity, venture capital Figure 6 Market opportunities by aging population in China management, etc.

China's aging population A step towards an important regional trade and financial center Percent Also, entering this expanding finan- 1.13 billion 1.27 billion 1.50 billion cial services market in China mainland 100%= people people people is in accord with Taiwan’s target of Ages 65 and older 5 7 16 becoming an important regional trade and financial center. A number of studies have shown that, in addition to in- Ages 15-64 67 70 frastructure, human resources, a sound 67 institutional framework, accessing to a potential market is also necessary to be a successful financial center, like Hong 28 23 Ages 14 and younger 17 Kong and Singapore. However, achieving this goal will 1990 2000 2010 face many difficulties, especially when 1 Forecast. considering Shanghai that is targeting Sounce: National Bureau of Statistics of China, Euromonitor at a regional financial center, too. Hong Source: China National Bureau of Statistics, Euromonitor Kong and Singapore, the two relatively mature financial centers, are far away ahead of Taiwan, and their sizes and Figure 7 Mainland enterprises going out importance are continuing increasing. For example, basing on the rising A recent phenomenon market in China mainland, China Hong Figure 7 Mainland enterprises going out Outbound deals as share of real 1 Kong gains a great potential for growth Chinese outbound foreign direct investment (FDI), $ billion GDP, 2007, % for its financial sector. Nevertheless, 3 Organic CAGR, % 15.5 as mentioned above, Taiwan’s unique 2 United Kingdom M&A 30.1 geographic and cultural advantages 80 Hong Kong 9.3 3.3 24 might help to narrow the gap. For ex- 21.2 France 8.8 ample, Taiwanese have relations with 12.3 3.0 Germany 6.9 many provinces in China mainland and 26.8 106 5.4 2.7 18.2 Malaysia 4.9 speak a language near mandarin, unlike 2.9 1.4 1.7 9.6 United States 2.2 3.7 the local residents in Hong Kong who 1.5 2003 2004 2005 2006 20074 China 0.8 most come from Guangdong Province Japan 0.8 and are talking Cantonese. These rela- Number of 40 51 48 82 89 Taiwan 0.7 tive advantages are helpful for Taiwan deals financial service companies to expand in China mainland, and also access to a 1$I=7 renminbi. long-term development with the broad 2For 2003-06, includes deals with final stake of>10% 3Compound annual growth rate. business network of Taiwan-capitalized 4Estimate based on M&A deal value ($26.8 billion) from Dealonic, plus organic outbound in vestments ($3.3 billion), enterprises there. assuming 10% growth in organic investments over previous year; 2006 and 2007 data include financial; 2007 data include China Investment Corporation’s (CIC) $3 billion acquisition of 9.9% stake in Blackstone. Sounce: Dealogic; Ministry of Commerce of People’s Republic of China; McKinsey analysis (Author: Standard Chartered Bank (Taiwan) Limited) 53 nvestment NVESTMENT IINFO I Projects in Henan Province Project Name Project Implementation Institution The investment promotion project for the standard workshops The bureau of Censorship of Gushi construction in Luoshan industrial zone Total Investment Project Implementation Institution USD 2.24 million Luoshan investment promotion bureau Project Description Total Investment To set up a 1000 m2 standard workshop, to build a pro- USD 8.4 million duction line of formaldehyde, annual production capacity of Project Description 20,000T of wood floor Exploit land of 500mu to set up a standard workshop for the Contact rent. Of machinery&spin& electron.etc Sui Chenghai 13865766789 Contact Li Jin 13607600166 86-376-2129758 Project Name The project of the road link Gushi and Hu-Shan express- Project Name way Annual butchering & processing capacity of 800 thousand Project Implementation Institution pigs project in Huangchuan The bureau of communication of Gushi Project Implementation Institution Total Investment Huaibin development and reform commission USD 25.17 million Total Investment Project Description USD 17.2 million To build a road linking Gushi and expressway, 30 miles in Project Description length To set up a production line with an annual butchering & Contact processing capacity of 800 thousand pigs and a 2000T refrig- Zhang Xinjian 13603979920 erator Contact Project Name Liu wei 13507616288 86-376-3931656 The project of the Logistics Center and the deep processing of the subsidiary agricultural Project Name Project Implementation Institution The project of Cement grinding station with annual produc- Gushi commissariat and oil co,.ltd tion capacity of 10 million Tons Total Investment Project Implementation Institution USD 5.45 million The bureau of Censorship of Gushi Project Description Total Investment To build a stringent specification grain stored facility, and USD 5.6million make it become a integration grouping with purchase&store&mar Project Description keting&transit&processing Build yard and warehouse for Semi-finished products, Mixed Contact materials. Set up two production lines and some related facilities. Tian Xiangdong 13937661206 Contact Cheng Zongxin 13905644269 Project Name The construction of the standard workshops in Huaibin indus- Project Name trial zone The project of the Gushi Huaxing wood company Project Implementation Institution Project Implementation Institution Huaibin development and reform commission The bureau of Censorship of Gushi Total Investment Total Investment USD 13.98 million USD 4.2million Project Description Project Description To set up a 100,000 m2 standard workshop and when it finished To set up a 8000 m2 standard workshop, to build 4 production it can be rent for the business. lines of advanced wood floor, annual production capacity of 2000 Contact stere of wood floor Ma Huaijiang 13782933059 13782933059 Contact Peng Yuanhu 15839740675 Project Name The extension of the reeling production line in Huai- Project Name bin The formaldehyde project of the Henan Southern wood Group Project Implementation Institution Xinsheng Chemical co., Ltd Huaibin development and reform commission 54 Total Investment Contact USD 9.65 million Shi Wentao 86-376-6278276 Project Description The Jin Huai He Industry and Trade Company is lo- Project Name cated in Huaibin, and its main industry is reeling produc- The Xinxian Camellia plant and oleum tsubaki product tion exploitation project Contact Project Implementation Institution Ma Huaijiang 13782933059 13782933059 Henan Lingrui Health Products Co.,Ltd Total Investment Project Name USD 13.79 million The project of the crane locomotive factory in Shangcheng Project Description Project Implementation Institution Plant the camellia and product the oleum tsubaki capsule Shangcheng development and reform commission Contact Total Investment Zhang Ming 86-376-2969888 USD 2.8 million Project Description Project Name This factory located in Shangcheng industrial zone, it’s Project of processing cooked food products. main product are steel structure& lifting machine& construc- Project Implementation Institution tion machinery.etc HuaYin Group Contact Total Investment Yang chuanyou 86-376-7348180 13803766890 USD 16.4 m2 million Project Description Project Name It is planned to process poultry products of 6000 tons of The production project of the one millionT carbonyl and smoked food, toasted food, fried food, and bittern food annually. dimethyl ether Contact Project Implementation Institution Lei Shubing 13939716687 Xixian development and reform commission Total Investment Project Name USD 11.18 million Project of processing 400,000 tons of feed Project Description Project Implementation Institution To set up a production line of the production capacity of HuaYin Group 600,000T carbonyl and a production line of the production ca- Total Investment pacity of 400,000T dimethyl ether USD 6.53 million Contact Project Description Chen Zhengjiang 86-376-5851123 It is planned to process 200,000 tons of duck feed and 200,000 tons of chicken feed. Project Name Contact The Chushandian Reservoir project In Huai River Lei Shubing 13939716687 Project Implementation Institution Xinyang development and reform commission Project Name Total Investment Project of building HuaYing Industry City USD 713.28 million Project Implementation Institution Contact HuaYin Group Liang Chengguang 86-371-6278321 Total Investment USD 3.80 million Project Name Project Description The project of the Xinyang New Technology Industrial HuaYing Industrial City covers an area of 9.6km2, and the Park first-phase project is 5000mu(1mu≈666.7 m2). Project Implementation Institution Contact Xinyang development and reform commission Chen Xinsheng 13939799635 Total Investment USD 13.98 million Project Name Project Description Extension project for comprehensive processing of 300,000 To set up a new science&technology and industry park on tons of refined rice and its byproducts the lands about 200~300mu Project Implementation Institution Contact Huangchuan Xuechi Cereals and oils Co., Ltd. Shi Wentao 86-376-6278276 Total Investment USD 24.6 million Project Name Project Description The Xinyang NM Organobentonite project It is planned to process 300,000 tons of refined rice, Project Implementation Institution 8000m2 of compound building materials and 100,000,000pcs Xinyang development and reform commission of environmental protection table wares. Total Investment Contact USD 13.98 million Huang ruiming 13737699139 55 UIDE G

Q & A s a s f o r F o r e i g n usiness Practice inin ChinaChina

I’d like to consult you what the meaning of category of d. What laws and regulations shall be followed by foreign Q:encouragement and category of restriction is. Whether the investors if investment is to be stopped? category of encouragement foreign investment industries can all Firstly, you shall refer to the Catalogue for the Guidance be approved if they are qualified while certain quota shall be im- A:of Foreign Investment Industries to decide whether in- posed on the category of restriction ones according to the state’s vestment industries are permitted or not and then go through policies and regulations, and whether there are judicial interpre- handling in the commercial department by the type of enter- tations? prises to be established in accordance with the Detailed Rules Article 6 of the Provisions on the Guidance of Foreign for Implementing the Law of the People’s Republic of China on A:Investment Directions provides that where they are quali- Foreign-Invested Enterprises, the Regulations for the Imple- fied for the following conditions, the foreign investment projects mentation of the Law of the People’s Republic of China on shall be listed as the category of restriction ones: (1) possessing Chinese-Foreign Equity Joint Ventures and the Rules for the backward technical level; (2) going against saving resources and Implementation of the People’s Republic of China on Chinese- improving ecologist environment; (3) embarking upon prospect- foreign Cooperative Enterprises respectively. ing and exploitation of specified minerals of which protective Secondly, the Labor Contract Law of the People’s Republic mining is prescribed by the state; (4) being the gradually open of China shall be followed. industries by the state; and (5) other situations prescribed in laws Thirdly, the Regulations on the Foreign Exchange System and administrative regulations. Article 12 herein prescribes that of the People’s Republic of China and the Notice of the State the existing examination and approval rights for foreign invest- Administration of Foreign Exchange on the Relevant Operating ment projects shall be examined and approved by the development Issues Concerning the Improvement of the Administration of plan departments and economic and trade departments for filing Foreign Direct Investment shall be followed and the State Ad- in accordance with the nature of projects; and the contracts and ministration of Foreign Exchange shall be consulted for specific the articles of association of foreign investment enterprises shall information. be examined and approved by the department of foreign trade and Fourthly, related laws in the first question and the Guiding economic cooperation for filing. Among them, foreign investment Opinions of the General Office of the Ministry of Commerce on projects of the restriction category below quota shall be examined Dissolution of Foreign Investment Enterprises and Liquidation and approved by the corresponding competent departments of the by Law shall be simultaneously. People’s governments of the provinces, autonomous regions, municipalities directly under the Central government and separately If the scale of the fixed-assets of a foreign-invested enter- planning cities and simultaneously reported to the higher compe- Q:prise exceeds that of the original investment amount due tent authority and industrial competent authority for filing. The to purchase of equipment with business profits for expanding approval rights of such kind of projects shall not be delegated to production capacity, does the enterprise need to alter its regis- lower levels. The gradually open foreign investment projects in the tered capital and the total amount of investment? Whether the area of service trade are subject to relevant provisions of the state failure of alteration of the registered capital and the total amount for examination and approval. The foreign investment projects of investment will have any impact on the policies applicable for related to quota and license shall first apply to the department of the foreign-invested enterprise? foreign trade and economic cooperation for quota and license and According to the relevant interpretations of the Interim the foreign investment projects with the approval procedures and A: Provisions of the State Administration of Industry measures separately prescribed in laws and administrative regula- and Commerce on the Proportion of Registered Capital and tions shall be subject to the provisions. Total Amount of Investment of Sino-Foreign Joint Venture, please refer to the actual situation of your company first and What laws and regulations shall be followed by foreign you do not need to alter the registered capital if the original Q:investors while making investment in China? proportion does not exceed. The alteration, if necessary, shall a. If they invest in establishing a company in China, what ap- comply with the relevant articles of the Detailed Rules for plications shall be submitted by foreign investors? To what depart- the Implementation of the Law of the People’s Republic of ments? China on Foreign-invested Enterprises or the Regulations on b. What labor laws shall be followed by foreign investors if the Implementation of Law of the People’s Republic of China investment is made in China? on Sino-Foreign Joint Venture. Please go through alteration c. What laws and regulations shall be observed by foreign procedures with local administration for industry and com- investors if capital is transferred to foreign accounts? merce.

56 CHINESE tIPS - - 57 8 6 太

bù débù liǎo le nǐ shuàn yòu wǒ zěn zǎo me bù shuō dĕng zhe qiáo

, I have already, I have booked the tickets!” !” Why say so you earlier? didn’t 太阳从西边出来了等着瞧不得了了 , I will win the next round.” 怎么不早说 tài yáng cóng xī biān lái chū le ” ! I have to! I have get him Help!” out! 你又涮我！ Means: something extreme happened. Example: 怎么不早说？ Means: Example: Means: Example: Means: Example: Means: Example: 等着瞧 ◎ It’s often used as an attention gatherer. It goes with both ◎ There is fire drillgoing on inSteve’s dorm,Steve rushed ◎ The expression boiled up again!”. literally me means “You ◎ and JerryTom arranged to meet for dinner at 6:00 pm, but ◎ It is usually used when a better suggestion is proposed af ◎ Steve and Christ planned to go on a trip on Wednesday, ◎ The sun rises from west is an unnatural thing. Compara ◎ The husband normally watches basketball when he is back ◎ The expression literally means “Wait and see”. Someone ◎ Steve lost at a pool game to Christ. After the game, Steve here is a polyphone, pronounced as liǎo and le, respectively. 不得了了你又涮我！ 5 9 7 good and bad news to emphasize important on how the matter is. 了 out before he realized that Christ is still in the He shower. said, “ It It actually refers to situation where you got ditched by friends and angry feel about the change plan. of called pm that her he was at 5:50 tooTom busily occupied with work and could not to come. It was the 3rd time failedTom to show up. Jerry got angry and shouted in a very pissed off tone, “ ter something already happened. Sometimes it is used to shift responsibility and blame onto others. but something came up, Steve couldn’t make it on Wednesday. Christ said, “ tively, tively, it also refers to things that doesn’t happen often or ordinary.of out home, One day, the wife came home from work and husbandsaw wasthe cooking in the kitchen. She cried out, “Wow, 阳从西边出来了 refuses to admit his loss uses this expressionface. in It order couldto save mean a rematch.might revenge and win next time.Also shows that the speaker said, “

- - - 2 4 求干嘛去 má qu ” qiú rénqiú rú bù jǐ qiú

bié jie

bāo zài shēn shàng wǒ 嘛去？别价别价嘛去？ (gàn, means do) is often omitted in daily 包在我身上！干 just 1 minute! have a I cardon’t and you have I would rather I would myself, do by it than to ask oth . It would have been better if he have done all of it it of all done have he if better been have would It . Morning Jane, Hey Hey Frank, I am just going for a walk./ I am going

Hurry up! I am going to be late for work! I will hàn yŭ xiān cí yŭ xiān hàn 别价，汉语鲜词语鲜汉 Means: Leave to it me Example: 求人不如求己 Example: Means: 包在我身上包在我身上 Means: not like No, be that this; way. don’t Example: Example: Means: ◎ It literally means wrapped it on me. Means I will take the ◎ After a huge dinner party, the wife said to the husband, ◎ Tom was assigned to translate an industrial research re ◎ ◎ Jane: Jim: ◎ Jane: Frank: ◎ ◎ What are you up to? It’s the expression short for Fresh Chinese ExpressionsFresh Chinese 1 3 job, job, or I will get it done. It is used as a promise or guarantee to complete something. “Honey, can you help me with those said, “No problem,dishes?” The husband port from English to Chinese. toHe finishthought thehejob on won’t time,be soable he asked Mike translationsome. But mike‘s sighed wasto and crap. said, Tom “ help him with 人不如求己 by himself.”by ers help. for to drive me to work! have tohave first! go to shopping. sary to answer it seriously. questionBecause reallydon’t want to know peoplewhere are you going, whojust a asked this or ‘Good morning’, ‘Good afternoon’. toway Hi’, say’ (gàn má qu), but language, especially in northerngreeting partwhen two friendsof meetChina. each other, but It’s it’s not usedneces as Fairs Contact person: Technology and Equipment Exhibition Equipment and Technology Processing and Breeding Product Aquatic and Poultry Feed Trade &Livestock, Fair Livestock (International) 2010 Anhui Husbandry Email: Fax: Tel: 200060 China, Shandong, Weihai, Add: etc collector, energy solar Exhibits: Center hibition Venue: Frequency: Date: Exhibition Spring Energy Solar 4th the (Linyi) China Cup Rain” 2010 “Solar Power Electric I Mining resources, and Energy Email: Fax: Tel: etc products, Exhibits: Venue: Date: A ChinaFairs &Expos 58 ndustry, Metallurgy, Welding, Welding, Metallurgy, ndustry, griculture, Fishery, 86-631-5866178 86-551-664086 86-631-5867567 86-551-2678744 Tongxin Building, No.79 Shichang Avenue, Avenue, Shichang No.79 Building, Tongxin March 3-March 5, 2010 5, 3-March March 7, 2010 5-March March

[email protected] [email protected] Linyi International Mall Conference & Ex & Conference Mall International Linyi Gymnasium Hefei solar energy water heater,flat-panel waterenergy solar feed materials, feed additives, feed feed additives, feed materials, feed Yearly Wei Juanjuan A m nimal - Fax: Tel: Chaoyang 100102 China, Beijing, District, Road, Wwest Wangjing 48 Building, Add: Venue: Exhibits: Frequency: Date: Exhibition Products Leisure and Furniture Outdoor Garden, 2010 International 3rd The Email: Web: Fax: Tel: 510620 China, Guangdong, zhou, Guang Tianhe, Road, East Linhe Road, Huating Add: etc films, PVC lamination cold sticker, stant in ink, consumables, painting spray equipment, Exhibits: Venue: Date: 2010 SIGN CHINA Decorations Floor Woodwork Furniture, Household Decorations, Date: Exhibition Technology Control and Power Transmission (Guangzhou)International 2010 China Web: etc technology, compressing air transmission, Exhibits: Complex Venue: Date: Instrumentation and Automation Control Industrial International Guangzhou 14thThe China Machinery, Machine tools 86-10-51298656 86-20-38106261 86-10-64787582 86-20-38106200 Rm 1306, Full Tianhe Business Tower, No.4 Business Tianhe Full 1306, Rm 23 Floor, Building A, Jinyu International International Jinyu A, Building Floor, 23

March 4-March 7, 2010 4-March March 2010 5, 2-March March March 4-March 7, 2010 4-March March 7, 2010 4-March March www.signchina-gz.com www.fuyang.com.c

[email protected] Qingdao International Convention Center Convention International Qingdao Fair Commodities Export Chinese Chinese Export Commodities FairChinese Export Pazhou outdoor furniture, garden series, etc series, garden furniture, outdoor outdoor spray painting, photographypainting,sprayoutdoor fluid power transmission, mechanical transmission,power fluid Yearly n m - - Machine Tool Exhibition Technology Machine Mould Tangshan International 2010 China Mould Web: Email: Fax: Tel: 510620 China, Guangdong, District, Tianhe Add: etc technology, compressing air transmission, Exhibits: Complex Venue: Email: Fax: Tel: Tianhe, Guangzhou, China,Guangdong, 510620 Add: etc nology, tech and equipment manufacturing process ing mold mold, automotive technologies, and ment Exhibits: Complex) (Pazhou Center Exhibition Venue: Date: Exhibition &Equipment Technology Mannufacturing Automobile International 2010 Guangzhou A Email: Fax: Tel: Tangshan, Hebei, China Add: etc control, tomation Exhibits: Center Exhibition Venue: Date: Exhibition Technology Tool Machine Mould International Week Fashion Kong Hong for Tangshan Email: Fax: Tel: Tangshan, Hebei, China Add: etc control, tomation Exhibits: Center Exhibition Venue: Date: uto tools and Fittings and tools uto 86-20-38823660 86-20-38691733 86-315-3851865 86-315-3851865 86-20-38823677 86-20-33297932 86-315-3851865 86-315-3851865 Rm 3104, Tianjunge, No.365 Tianhe Road, Road, Tianhe No.365 Tianjunge, 3104, Rm No.5, Huacheng Road, Zhujiang New City, City, New Zhujiang Road, Huacheng No.5, 308, No.8 Qingnan Rd, High-tech Zone, Zone, High-tech Rd, Qingnan No.8 308, Zone, High-tech Rd, Qingnan No.8 308,

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[email protected] [email protected] [email protected] [email protected] Chinese Export Commodities FairChinese Export Pazhou Tangshan International Conference and Conference International Tangshan and Conference International Tangshan Guangzhou International Convention &Convention InternationalGuangzhou machine tool, tool and accessories, au machine tool, tool and accessories, au fluid power transmission, mechnical transmission,power fluid automobile parts processing equip processing parts automobile n n m m m - - - - - 2010 China (Guangzhou) International Venue: Chinese Export Commodities Fair Pazhou Venue: Xiamen International Conference & Exhi- Automotive Aftermarket Industry and Complex bition Center Services Exhibition Exhibits: communication and navigation system, Tel: 86-592-5959614 Date: March 3-March 5, 2010 car radio/CD/DVD, safety electronic product, etc Fax: 86-592-5959611 Venue: Guangzhou International Convention & Add: Rm 302, Block B, Lianming Commercial Exhibition Center (Pazhou Complex) Center, No.20 Songbai East Street, Guangzhou, Tel: 86-21-64271916 Guangdong, China, 510405 Environmental Protection and Fax: 86-21-54864556 Tel: 86-20-86374869 Water Processing Email: [email protected] Fax: 86-20-86374257 2010 China (Zhengzhou) Artificial Web: www.84t.cn/dz Environmental Science and Technology Fair Email: [email protected] Date: March 5-March 7, 2010 Venue: Zhongyuan International Exhibition Center 2010 The 2nd Guangzhou International Exhibits:refrigeration equipment and technology, Auto Products Trade Fair heating equipment and technology, etc Date: March 8-March 10, 2010 Add: Rm 1500, Heli Building, No.300 Nanyang Venue: Chinese Export Commodities Fair Pazhou Road, Zhengzhou, 450012 Complex Tel: 86-371-63870177 Exhibits: auto inner and exterior decoration, auto Fax: 86-371-63876053 maintenance products, auto premium products, mod- Email: [email protected] ified parts and environment protection product, studio equipment, auto electronics and communication, etc 2010 China (Guangzhou) International Add: Rm 511, Block A, Lianming Commercial Automobile Decoration Supplies Exhibition Center, No.20 Songbai East Street, Guangzhou, Date: March 3-March 5, 2010 Guangdong, China, 510405 Venue: Guangzhou International Convention & Tel: 86-20-86374869 Exhibition Center (Pazhou Complex) Fax: 86-20-86374257 Tel: 86-21-64271916 Email: [email protected] Fax: 86-21-54864556 Email: [email protected] Chemical Industry 2010 Southeast Asia (Guangxi) International Transportation, Logistics, Storage Industrial Equipment Manufacturing Expo 2010 Guangzhou International Auto Date: March, 2010 Repair, Maintenance, Testing Equipment & Venue: Guangxi Exhibition Hall Technology Exhibition Exhibits: information-based manufacturing, Date: March 3-March 5, 2010 power station new energy equipment, metals and Information Technology, Network, Venue: Guangzhou International Convention & metallurgical equipment, machine tools & dies, Communication, Broadcast Exhibition Center (Pazhou Complex) coal mining machinery, industrial automation in- 2010 China Tangshan International Tel: 86-21-64271916 struments and meters, metal processing, forging Metalworking Industry Exhibition Fax: 86-21-54864556 machinery, auto poarts maker, surface processing Date: March, 2010 Email: [email protected] and coating, security products, etc Venue: Tangshan International Conference and Add: Rm 306 Chemical Industrial Building, 49 Ji- Exhibition Center anzheng Road, Nanning,Guangxi, China, 530023 Exhibits: machine tool, tool and accessories, au- Tel: 86-771-5604159 tomation control, etc Fax: 86-771-5623906 Add: 308, No.8 Qingnan Rd, High-tech Zone, Web: www.nnrghz.com.cn Tangshan, Hebei, China Tel: 86-315-3851865 Fax: 86-315-3851865 Glass, Ceramics, Plastic, Rubber Email: [email protected] The 10th China Xiamen International Stone Fair Date: March 3-March 6, 2010 Electrical Apparatus, Heating, Air-conditioning The 7th Guangzhou Auto Air Conditioning 2010 China (Guangzhou) International and Refrigeration Technology Exhibition Modified Auto Show Date: March 4-March 6, 2010 Date: March 3-March 5, 2010 Venue: Chinese Export Commodities Fair Pazhou Venue: Guangzhou International Convention & Complex Exhibition Center (Pazhou Complex) Exhibits: whole vehicle air conditioning system, Tel: 86-21-64271916 auto air conditioning accessories, auto air condi- Fax: 86-21-54864556 tionging product, refrigeration equipment, etc Email: [email protected] Add: Rm 511, Block A, Lianming Commercial Center, No.20 Songbai East Street, Guangzhou, 2010 The 5th Guangzhou (Guangzhou) Guangdong, China, 510405 International Auto Electronics and Car Tel: 86-20-86374869 Radio/CD/DVD Product Exhibition Fax: 86-20-86374257 Date: March 4-March 6, 2010 Email: [email protected]

59 orld Expo Preparation for 2010 Organizer pledges every convenience

W Shanghai Expo in final for visitors

stage isitors to the World Expo will find everything available on site, ranging Vfrom free drinking water to food, toilets and shelters. reparations for the World Expo 2010 Shang- The organizer has put visitors’ every need into consideration with a visitor- Phai China were going according to plan, oriented approach, Shanghai Executive Vice Mayor Yang Xiong told a press confer- and construction of most pavilions was nearly ence hosted by the Information Office of the State Council in Beijing on January 18. complete, said an official on the executive com- There will be 95 drinking fountains at the site, allowing visitors to get water mittee for the event in Beijing on January 18. every 100 meters, Yang said. More than 8,500 individual toilets will be built, 20 Yang Xiong, Deputy Director of the Ex- on average for each thousand visitors if daily visitor flow reaches 400,000. Mo- ecutive Committee for Shanghai Expo and also bile toilets will also be set up to avoid long queues, Yang noted. Vice Mayor of Shanghai, made the remarks at The catering area for every 1,000 visitors will be 240 square meters, com- a press conference organized in Beijing by the pared with the 109 square meters at Aichi Expo in 2005. Visitors can find snacks State Council Information Office, just 103 days within a five-minute walk. Enough shelters against sun and rain will also be in- ahead of the 2010 Shanghai Expo opening, say- stalled, given Shanghai’s sizzling temperature in July and August, according to ing the preparation work was in the final stages. Yang. He revealed that some major pavilions may extend their openings after the A total of 192 nations and 50 interna- Expo because they are too small for “a large number” of visitors. For example, tional organizations worldwide have con- the China Pavilion can only receive 50,000 visitors daily, while the estimated firmed their participation in the Expo to date. daily visitors will reach 400,000 on average, he said. “Opinions are being can- All of the mainland’s 31 provinces, autono- vassed on the issue.” Yang said 42 buses will transport visitors inside the Pudong mous regions and municipalities, along with zone of the Expo site, which will cover a route of 2.4 kilometers. The interval Hong Kong, Macau and Taiwan will also par- between buses will be no longer than one minute. ticipate. “Meanwhile, more than 220 countries and international organizations have confirmed to join the Expo Shanghai Online, Luxury yachts for Expo giving users a great Expo experience over the Internet,” said Yang. guests According to Yang, 90 percent of the wo yachts donated by a Zhejiang-based pavilions’ construction work was complete. Tboat maker will be used to transport visitors Of the 42 pavilions built by foreign countries, during the coming World Expo. The organizer 80 percent had started decorating. The coor- signed a cooperation deal with Dongchang Yacht dinators were making efforts to enhance all Production Co Ltd on January 17 and named the services, ensuring security and food safety, as two boats with an “Expo” prefix. well as good traffic flow, said Yang. Tourists The three-deck pleasure boats cost 30 million yuan (US$4.39 million) in would be warmly looked after. Shanghai Expo total. One is 15 meters long, while the other is 23 meters. They have KTV rooms, will run from May 1 to October 31, 2010, and restaurants, sauna rooms and cinemas, said Que Qingcheng, Dongchang’s chair- the number of the expected visitors will total man. 70 million, according to a document posted at Huang Jianzhi, deputy director general of the Bureau of Shanghai World the website of the Expo. As of January 17, more Expo Coordination, said the two boats will meet the high-end demands of Expo than 18 million tickets had been sold. visitors. Safe management will be put as a priority, he noted.

responsibility of Shanghai and the whole country to hold a successful Expo. Hu: Go ‘all-out’ for Expo He urged Shanghai to make “all-out efforts” to efficiently complete the prepara- tions and be a good host. He asked central government departments and local gov- resident Hu Jintao on January 15 called on ernments to take initiative and make concerted efforts in supporting the event. The Pthe Chinese people to pool their strength and organizing committee should use its lead role to push forward on key points of prepa- resources to ensure the Shanghai World Expo is a ration, he said. Hu put forward six requirements for the Expo’s preparatory work: success. With just 106 days to go before the World To ensure the Expo’s infrastructure building and exhibition arrangements are Expo opening on May 1, Hu visited the Expo site completed on time; To ensure sound service and logistics; To fully guarantee secu- during an inspection tour in Shanghai. rity; To do a good job of foreign affairs work, including receptions of international “Hosting guests; To ensure efficient and effective publicity work; and to create a civilized, the World Expo happy and peaceful atmosphere. is not only a sig- Hu said though the Expo was a big challenge, he believed it would be a “suc- nificant event cessful, brilliant and memorable” event with the support of the Chinese people, for Shanghai, especially the contributions of Shanghai officials and residents. The Expo, which is but also for the expected to receive 70 million visitors, will last from May 1 to October 31. So far, 35 whole nation,” of the 42 self-built foreign pavilions have started interior decoration and exhibition he said, noting arrangement, and 11 joint pavilions have been completed, according to the organiz- it was both the ing committee.

60 Lecture promotes World Expo in Shaanxi

hanghai Library Director Wu Jianzhong gave an Expo-themed lecture in Shaanxi Library Syesterday afternoon, as part of the Expo promotion week in the northwestern China province. Wu, also counselor for the Expo’s theme development, elaborated on World Expo’s history, its role and significance, and introduced the main content of Expo 2010, which will open on May 1 in Shanghai. In his lecture, the director demonstrated the glamour and implication of the world event through multimedia presentations, creating a mesmerizing effect among the audience.Wu also answered audiences’ questions on how to participate in the Shanghai World Expo. The lecture, which attracted nearly 500 people, was repeatedly interrupted by warm applauses. The lecture was also broadcast live throughout the province’s prefectures and counties. It was estimated that more than 100,000 people watched the video broadcasting of the lecture.

Expo lecture educates Hubei public Charming Hebei has

hanghai Library Director Wu Jianzhong gave an Expo-themed fantasy pavilion plan Slecture in Shaanxi Library yesterday afternoon, as part of the Expo promotion week in the northwestern China province. Wu, also coun- ebei Province unveiled its provincial pavilion selor for the Expo’s theme development, elaborated on World Expo’s Hdesign, whose theme is “Charming Hebei,” history, its role and significance, and introduced the main content of on January 16 in Shanghai. The 600-square-meter Expo 2010, which will open on May 1 in Shanghai. pavilion is a semi-transparent space full of fantasy In his lecture, the director demonstrated the glamour and implica- colors. Its exhibition is arranged in five huge “cubes,” tion of the world event through multimedia presentations, creating a demonstrating the province’s ambitions and its geo- mesmerizing effect among the audience. Wu also answered audiences’ graphical advantages as it is close to Beijing, Tianjin questions on how to participate in the Shanghai World Expo. and Bohai sea. The lecture, which attracted Among the five cubes, three are “theme pavil- nearly 500 people, was repeatedly ions.” In the first theme pavilion, visitors can see the interrupted by warm applauses. historical origin of Hebei and Beijing, the Chinese The lecture was also broadcast live capital which is mostly surrounded by the province. throughout the province’s prefec- The second exhibition will show the development of tures and counties. It was estimated solar energy, low-carbon technology and other new that more than 100,000 people innovations in the northern Chinese province. watched the video broadcasting of In the third theme exhibition, visitors will the lecture. see a “dialogue” between heroes in 1976 Tangshan earthquake and Haibao, the Expo mascot. More than 240,000 people were killed in the 7.8-magnitude Chinese provinces settle in Expo Tangshan earthquake, but persistent Tangshan people rebuilt a whole new city on its debris with help pour- hina’s Hebei and Anhui provinces launched their exhibition plans ing in from around China, including Shanghai. Hebei Cyesterday at Expo site, as more than one third of China’s provinc- exhibition organizers want to show the great econom- es have unveiled their blueprints for the World Expo Shanghai 2010. ic achievements as well as their people’s strong will Each of the 31 provinces and municipalities on the mainland through this part of pavilion. has an exhibition area of 600 square meters in the China Pavilion, Chen Xianjin, deputy director general of the where visitors can learn about Chinese history and culture tradition, Bureau of Shanghai World Expo Coordination, Xiong said Chen Xianjin, deputy director general of the Bureau of Shanghai Xunlin, deputy director of the office heading prepa- World Expo Coordination. rations for the China Pavilion and Zhao Fenglou, Hebei Pavilion would display achievements of its history, economy, director of the World Expo Office of Hebei province social development and technology in a half-transparent fancy space, said attended the launching ceremony. Zhao Fenglou, director of the World Expo Office of Hebei Province. “Hebei had undergone a lots of exploration and Anhui Pavilion will be a magnificent hall of knowledge offering innovations in history. The pavilion would share these the past, the present and the future of the flourishing province, said valuable changes Wen Haiying, deputy governor of Anhui Province. with the visitors,” Shaanxi aimed to build a structure in the Tang Dynasty (618-907 Chen said. “I hope AD) style which will lead visitors on a journey through time to ex- we would see a plore the history and prosperity of Chang’an, the ancient capital of the perfectly built pa- Tang Dynasty, and today’s Xi’an, Shaanxi’s capital. vilion to success- Since last December, Shanghai, Guizhou, Hainan, Hunan, fully reflect Hebei Henan, Chongqing, Zhejiang, Ningxia and Tibet have started decorat- people’s wonder- ing their space within the China Pavilion. ful ideas.”

61 CPIT C CCPIT and FNCIC Signed MOU on Cooperation the meeting, Mr. Yu Ping and Mr. Slasar, strengthening economic and trade coop- Chairman of FNCIC, signed Memo of eration with Mr. Pandey and the enter- Understanding on cooperation between preneur delegation. Representatives from CCPIT and FNCIC. Mr. Pandey, Finan- Export-Import Bank of China, Huawei cial Minister of Nepal witnessed the sign- Corp. Sinohydro Group, CCPIT Electric n December 30, Mr. Yu Ping, ing ceremony. FNCIC is sort of chamber Power Industrial Branch, China Interna- Vice President of CCPIT met of commerce incorporated by the Nep- tional Travel Service, Bank of China etc and entertained the Nepal’s en- alese companies which have business attended the talk. During the talk, Mr. trepreneur delegation headed contact with their Chinese counterparts. Wan invited Mr. Pandey and the Nepal’s byO Mr. Nepal, Premier of Nepal. The The signing of the MOU was of great sig- enterpreneurs to participate in the China- members of the delegation were all im- nificance for further promoting the coop- South Asia Business Forum 2010. portant entrepreneurs in Nepal, including eration between CCPIT and Nepal’s busi- Mr. Pandey said that Nepal hoped to the chairmen of Nepal Industrial Union, ness circle and developing the reciprocal strengthen and expand cooperation with Federation of Nepal Chamber of Industry trade relations between the two countries. Chinese entrepreneurs in the fields of hy- and Commerce (FNCIC), Nepal-China CCPIT once signed MOU on cooperation droelectric sector, infrastructure construc- Industrial and Commerce Association with FNCIC in 2002 and kept good relation, tourism and agriculture etc. He also and Nepal Chamber of Commerce as well tions with multiple commerce associa- remarked that Nepalese government would as the representatives from the industries tions in Nepal extend great welcome to Chinese compa- of banking, insurance and hydroelectric- On the same day, Mr. Wan Jifei, nies for investing in Nepal and would also ity and other significant industries. After President of CCPIT also held talks over offer many trade facilitation measures.

The 6th CEFCO Successfully Concluded in Xi’an he 6th China Expo Forum for po2010 was staged along with Shanghai International Cooperation (CEF- Expo promotions in Shaanxi. CO) jointly held by CCPIT, UFI, Over years of development starting IAEE and SISO was success- from Beijing, Guangzhou, Shanghai, fullyT concluded at the Renmin Square, Chengdu and Nanjing, CEFCO has be- Xi’an on January 16. People from the come a brand for the world’s convention world’s convention & exhibition industry, & exhibition industry. With over 2000 businesses, and experts gathered together participants from more than 30 coun- in the time-honored city to discuss the tries and regions, CEFCO has achieved common concerns and interests, with a lot in economic cooperation, cultural confidence, tolerance and creativity. exchanges and other fields. The National The theme of the CEFCO was “New and the world. Mr. Wan Jifei expressed Development and Reform Commis- Industry Growth with Confidence”. Ad- that as long as the macro economy kept sion, the Ministry of Commerce, the hering to the theme of “Opening-up, Co- in good momentum, the expo industry in Bureau of International Expositions, the operation and Win-win”, the participants China was expected to recover rapidly. Association of the German Trade Fair discussed deeply the development of China has stepped up to the rank of large Industry and related ministries and or- convention and exhibition industry under expo industrial nations with 5 expo in- ganizations have given active support to crisis and exchange ideas on revitalizing dustrial belt formed already. There was the forum. promoti Over years of devel- the industry in two plenary sessions. Bai great potential for the development of opment starting from Beijing, Guang- Lichen, Vice Chairman of CPPCC, Wan China’s expo industry. Mr. Yuan Chunq- zhou, Shanghai, Chengdu and Nanjing, Jifei, President of CCPIT, Yuan Chunq- ing introduced the development of expo CEFCO has become a brand for the ing, Governer of Shaanxi Province, Hu industry in Shaanxi Province and also world’s convention & exhibition indus- Mingfeng, President of UFI, etc attended pointed out that with the implementation try. With over 2000 participants from and addressed the conference. of Guanzhong-Tianshui Economic Zone more than 30 countries and regions, Mr. Bai Lichen remarked that coop- Development Planning approved by the CEFCO has achieved a lot in economic eration and innovation was the only way State Council, Shaanxi would gain rapid cooperation, cultural exchanges and oth- to develop the expo industry and resist development,which would be sure to er fields. The National Development and the crisis. The Shanghai World Expo provide more favorable and wider space Reform Commission, the Ministry of was certain to lift the expo industry in for the development of expo industry in Commerce, the Bureau of International China to a new high. The expo industry Shaanxi. Expositions, the Association of the Ger- in China was at a crucial time for devel- At the conference, CCPIT released man Trade Fair Industry and related opment, which was the common oppor- the Annual Report on China’s Exhibi- ministries and organizations have given tunity for the expo industries in China tion Industry 2009. Meanwhile, InterEx- active support to the forum.

62 C ASE STUDY

Study on Subjects of Basic Medical Insurance in Urban Areas of China

By Li Wenpei

he legal relationship of medical insurance refers to relationship of rights and obligations among subjects of medical insurance, namely relationship of rights and obligations formed among the insurer, the applicant, the insured and the beneficiary of medical insurance due to payment of medicalT insurance premiums and management and supervision of medical insurance fund. Only if the range of the insured serving as the subject of rights in such legal relationship, namely the insurant enjoying basic medical insurance, is defined can the legal relationship of basic medical insurance be better adapted to and values and goals of legal system of basic medical insurance be realized.

all occupational sectors, first for people the basic medical insurance. Article 3 of The all- people health insurance earning wages and then for non-wage Social Security Law (draft) prescribes The whole people health insurance earners and all people, first for employees that “The social insurance system should will generally remind most of people of and then for families of employees. The be widely inclusive, basically secured, the free medical care system adopted in range is closely related to not only levels horizontally diversified and sustainable”, UK, employment of doctors and other of social and economic development of which transforms the principle of Broad providers of medical services by the gov- a country but history of development of Coverage into a basic law of a country. ernment and governmental ownership disease insurance as well. Although all- and management of hospitals and other people medical insurance has not been Principle of Broad Coverage for medical facilities. Although the system in adopted by all countries, to allocate exist- basic medical insurance in urban Canada is very different from that in UK, ing limited medical resources in a rea- areas in China the government must guarantee that ev- sonable manner on basis of social needs Principle of Broad Coverage for ery citizen medically insured. However, to provide assurance of medical rights basic medical insurance in urban areas to construct the medical insurance system to citizens as many as possible has been in China should be viewed in terms as for all people has been a goal which must a goal to be realized with effort by all follows. First, the principle of Broad Cov- be realized with effort even for countries countries. erage is based on Low Level. The level where the state –guaranteed medical Article 45 of Constitution of the of basic medical insurance must adapt to insurance is not adopted. The U.S. presi- peoples Republic of China prescribes level of development of the productive dent Truman once promoted all-people that “Citizens of the People’s Republic force in primary phase of socialism. Lev- medical insurance with great effort. An of China have the right to material as- els of basic medication, basic technology important promise made by Bill Clinton sistance from the state and society when related to diagnosis and treatment and ba- during his first presidential election was they are old, ill or disabled. The state sic medical facilities and services should to establish all-people health insurance. develops social insurance, social relief comply with levels of economic and so- The current U.S. president Obama put and medical and health services that are cial development. Low Level means that forward to promote a medical insurance required for citizens to enjoy this right.” level of medical insurance must be subject reform of the maximum coverage in U.S. It means that all citizens of the People’s to economic conditions of a country and history to assure that every U.S. citizen Republic of China have the right to enjoy must not exceed the bearing capacity of a enjoys high-quality and inexpensive med- the medical insurance equally. However, country, business or individual. That’s to ical insurance and every citizen regard- the level of basic medical insurance say, Low Level means that to set up basic less of status of income or employment should adapt to levels of economic and medical insurance system for urban areas affords the medical insurance and enjoys social development. All-people medical of China must be based on primary phase excellent medical welfare to realize “Let insurance is not applicable to China due of socialism of China and to determine a all diseased citizens to afford medical to its conditions. It is very difficult to reasonable level of basic medical insur- treatment”. realize all-people medical insurance even ance according to bearing capacity of a The range of the insured of disease by the economically developed countries. country, business and individual and to insurance in countries all over the world So, considering conditions of China, the reasonably determine contents of medica- has been slowly enlarged. Generally, basic medical insurance system for ur- tion and scope and standards for items the insurance was first adopted in a few ban areas of China should keep covering of diagnosis and treatment under basic places and then nationwide, first for a few areas as many as possible to enable as medical insurance. Next, Broad Cover- occupational sectors and then throughout many urban residents as possible to enjoy age is to cover urban residents in basic

63 medical insurance as many as possible tem of social insurance law which adapts in terms of operation and management.

ASE STUDY and define payment standards on basis of to actual needs because of low level and Thus, employees from township enter-

C money raised by “adjusting expense to low efficiency and effect of legislation. prises should be covered by the basic income”. That’s to say, Broad Coverage Article 19 of Social Insurance Law medical insurance for urban areas, which refers to participation in basic medical (draft) prescribes that “Basic medical will be helpful for safeguarding rights of insurance by all urban residents includ- insurance includes employees’ basic workers from township enterprises and ing the business, the government agency, medical insurance, urban residents’ basic sustainable development of township en- the government-sponsored institution, medical insurance and new-type rural co- terprises. Township enterprises have been the social organization, the privately –run operative medical care.” Based on Article increasingly developed, having basic pro- non-business, the owner and employees 19, the basic medical insurance covers duction and circulation of commodities of urban privately -owned economic or- employees from governmental agencies, as other kinds of enterprises but just in ganization, employees from the aforesaid social groups, businesses, government- rural areas. Operation and management organs and other urban residents. sponsored institutions and privately of human and material capitals of town- –run non-businesses, employees from ship enterprises are increasingly modern- Determination of range of privately -owned industrial and com- ized. It is necessary and feasible to cover applicants for existing medical mercial businesses, urban self-employed, employees from township enterprises in insurance in urban areas non-full-time workers and other urban basic medical insurance. The mode of management before residents. Based on Article 21 of Social College students generally was linked to the ownership Insurance Law (draft), the government Thse days, 45.7m of people in the structure and management of household will subsidize the medical insurance for U.S. including 1.7m of college students registration of personnel of an organ due to people in living difficulty and the urban have no medical insurance. Most of the the administrative system of the planned unemployed. It is thus clear that cover- college students who have no medical in- economy, so participation in insurance age of basic medical insurance in urban surance are burdened with debts because is restricted for many people. To expand areas is rather broad so that most of urban of payment for college education. Massa- and adjust scope of applicants for basic residents can become subjects of basic chusetts Student Mandate Act prescribes medical insurance in urban areas appears medical insurance in urban areas under that students enrolled by all higher edu- a must due to new attempts like reform of the system formed by Social Insurance cation institutions must have medical ownership system, diversification of own- Law(draft) . However, overall planning insurance. “Both full-time students and ership system and population mobility. and allocation of funds is adopted on ba- non-full-time students attending all pub- The State Council issued Decision sis of prefecture-level city or county and lic higher education institutions or other of the State Council on Establishing the funds mostly come from the employer independent higher educational institu- Urban Employees’ Basic Medical Insur- and the individual instead of government tions in Massachusetts must participate ance in 1999. Labor security departments for the existing basic medical insurance in QSHIPs” at all levels have been making great ef- in China, which leads to rather large gap In October 2008, the general office fort since the Decision was issued so that of the basic medical insurance for differ- of the State Council issued Instructive the basic medical insurance system has ent areas. It is difficult to solve problems Opinions about Covering College Stu- been initiated and adopted in almost all of medical insurance for some special dents in Trial Adoption of Basic Medical areas nationwide under overall planning. social groups particularly the disadvan- Insurance for Urban Residents, deciding Number of persons participating in the taged minority through existing medical to cover college students in trial adop- basic medical insurance nationwide had insurance system. It is necessary to make tion of basic medical Insurance for urban reached 94m by the end of 2002. How- further discussion for them. residents. College students mentioned ever, there are considerable urban people include full-time undergraduate students, who should have participated in the Several special subjects of three-year college student and graduate medical insurance have not been covered medical insurance students receiving common higher edu- by the basic medical insurance, receiving Employees from township enter- cation at all types of full-time common no effective insurance of basic medical prises higher education institutions(including care. It has exerted unfavorable influence In our opinion, the employee from private colleges) and scientific research on operation of new systems and even township enterprises should become the institutes(hereinafter referred to as “col- social stability. In order to further ex- subject of basic medical insurance in leges and universities”) . In detail, col- pand coverage of urban employees’ basic urban areas. First, there is not a clear line lege students’ cost for hospitalization, medical insurance, the general office of between township enterprises and urban outpatient services and serious disease Ministry of Labor and Social Security enterprises. For example, although some treatment will be handled through the issued Notice about Further Expansion of enterprises are called township enter- basic medical insurance for residents in Coverage of Basic Medical Insurance in prises in name, they are registered and urban areas where schools are located Urban Area in 2003. Both the Decision operate in urban areas. For another ex- according to territorial principle and col- and the Notice has provided instructive ample, employees of township enterprises lege students will payment and enjoy cor- opinions on expansion of scope of people come from both rural and urban areas. responding treatment according to local participating in basic medical insurance, For another example, ownership of town- rules, receiving treatment which must not particularly the Decision which has some ship enterprises is diversified. Township be lower than treatment for local urban legal force. However, it is urgent to estab- enterprises and enterprises classified by residents. Meanwhile, routine medical lish legislation rules for social insurance, ownership like state-owned enterprises, services for college students must be pro- perfect structure and content of laws and collective enterprises, foreign-funded vided continuously according to existing regulations, gradually expand coverage enterprises and individually funded en- rules for convenient and timely treatment of social insurance and establish the sys- terprises have many things in common for college students. Many provinces and

64 cities have formulated detailed measures any discriminating act including depriv- ance premium will be paid by the re- for operation and preparation for basic ing or undermining equal opportunities employment service center by 60% of medical insurance for all college students or treatment in terms of employment average salary of employees for the prior have been developed orderly after prom- and occupation based on social standing. year locally, which can be interpreted as ulgation of Opinions to guarantee insur- Household register system in China has that unemployed persons and low-income ance participation by students admitted seriously hindered right of off-farm work- workers should be covered in basic medi- in 2009 and other students. ers to enjoy equal employment opportuni- cal insurance. Unemployed persons and Off-farm workers ties and treatment. Rules of International low-income workers have much weaker In accordance with Decision of the Labor Organization on international mi- financial capacity for risks of diseases State Council on Establishing the Urban grant workers will exert beneficial influ- than high-income people. To rule them Employees’ Basic Medical Insurance and ence on China’s decision making. out of scope of basic medical insurance Interim Regulation on the Collection and In order to assure treatment of off- is very unreasonable and will not display Payment of Social Insurance Premiums, farm workers’ diseases or non-work-re- superiority of socialism. Only if unem- businesses and their employees should lated injuries, rules for off-farm workers’ ployed persons and low-income workers be included in collection and payment of participation in basic medical insurance are covered in scope of medical insurance basic medical insurance. Off-farm work- have been formulated locally nationwide. can goals and significance of basic medi- ers employed by businesses are not ruled For example, Provincial Measures for cal insurance be realized. The social in- out by the Regulation. Besides, Some Participation in Basic Medical Insurance surance should be a social and economic Opinions on Solving Problems Facing by Migrant Off-farm Workers in Beijing promise to the recipient of the insurance, Off-farm Workers and Notice about (hereinafter referred to as “Provincial particularly unemployed social members. Special Expansion for Starting Off-farm Measures”) were implemented in 2004. Disabled revolutionary service- Workers’ Participation in Medical Insur- According to Measures, employers must men ance have clear provisions for off-farm handle procedures of participating in According to Decision of the State workers’ participation in medical insur- basic medical insurance in Beijing and Council on Establishing the Urban ance. In March 2009, the State Council pay relevant fees for hired migrant off- Employees’ Basic Medical Insurance, promulgated Opinions of the CPC Cen- farm workers, which is important means medical treatment for disabled revolu- tral Committee and the State Council for implementing requirements of the tionary servicemen above Grade II will on Deepening Reform of Medical and State Council and Ministry of Labor and not be changed and medical expenses Health System, which clearly prescribes Social Security, safeguarding legal rights of disabled revolutionary servicemen that transfer and continuity of basic and interests of migrant off-farm workers above Grade II will be handled through medical insurance relationship will be in Beijing and an important measure for original fund channels and managed handled actively by focusing on off-farm handling medical expenses of migrant by social insurance organs on separate workers migrating to urban areas in the off-farm workers during employment accounts. Shortage of payment for medi- future to properly solve problems of basic in Beijing. What deserves to be men- cal expenses will be handled by local medical insurance for off-farm workers. tioned is Article 89 of Social Insurance people’s government. According to rules According to Opinions, off-farm workers Law(draft) which clearly prescribes that of Ministry of Labor and Social Security who have signed the labor contract and “Rural residents working in urban areas and Ministry of Finance, where police- have established stable labor relationship will participate in social insurance in ac- men have work-related injury or disabil- with businesses must be covered in urban cordance with this law.” It not only pro- ity which is rated as Grade II or higher employees’ basic medical insurance on vides legal foundation for participation in by the civil authority or the injury and basis of definition of responsibility of basic medical insurance in urban areas by disability appraisal organ designated by the employer for payment of insurance off-farm workers but brings good news to the civil authority, the policemen will premium according to the state rules and off-farm workers nationwide. enjoy same medical treatment as dis- other off-farm workers must participate Retirees and unemployed persons abled revolutionary servicemen above in the new-type rural cooperative medical The answer to whether retirees or Grade II. care provided at the place of registered unemployed persons must be covered by To broaden coverage of medical residence or the urban residents’ basic basic medical insurance in urban areas insurance must depends on emancipat- medical insurance at the working place should be affirmative. As retirees made ing ideas in terms of system and polices, according to actual conditions. great contractions to a country and soci- advancing with the times, getting rid of As one of UN organs, International ety and brought advancement of society, management guidelines for uniform and Labor Organization aims at expanding the basic medical treatment provided overall planning under planned economy social insurance measures and protect- to them is a return of enormous social system establishing people-oriented ser- ing living and health of workers. To fight wealth they created in the past. As the vice philosophy, formulating medical in- against employment discrimination is elderly will meet more risks of suffering surance policies which adapt to different one of core labor standards determined from diseases than the young, to cover levels of income, different levels of pay- by International Labor Organization. On retirees in basic medical insurance to en- ment for medical treatment and different August 28 2005, the standing commit- able them to have dependable resources medical requirements. How to cover as tee of the National People’s Congress may greatly encourage young people many people in basic medical insurance approved Ratifying the Discrimination to work and pay insurance premium in urban areas as possible by legal means (Employment and Occupation) Conven- with greater enthusiasm. Unemployed is a topic requiring further exploration. tion, 1958. As a fundamental treaty of persons and persons with low-level in- International Labor Organization, Ratify- comes should be covered in basic medical (Author: Lecturer of Law Depart- ing the Discrimination (Employment and insurance. According to Regulations, ment, China Institute of Industrial Re- Occupation) Convention, 1958 forbids laid-off employees’ basic medical insur- lations)

65 ule R

Measures for the Administration on the Establishment of Partnership Business by For- eign Enterprises or Individuals in China has been adopted at the 77th executive meeting of the State Council on August 19, 2009, and shall come into effect as of March 1, 2010. Measures for the Administration on the Establishment of Partnership Business by Foreign Enterprises or Individuals in China ▲ Article 1 For the purpose of regu- by the administrative department for of one foreign investment partnership lating the establishment of partnership industry and commerce under the State enterprise, it should be subject to the business by foreign enterprises or indi- Council (hereinafter referred to as the Measures of the People’s Republic of viduals in China and facilitating foreign enterprise registration organ) for registra- China for the Registration of Partnership enterprises or individuals to invest in tion of establishment. Enterprises and relevant provisions of the

China in the form of partnership to ex- The documents prescribed in the state.▲ pand foreign economic cooperation and Measures of the People’s Republic of Article 11 The establishment of technical exchanges, the Measures herein China for the Registration of Partnership partnership enterprises by foreign enter- shall in accordance with the Partnership Enterprises and the explanation quali- prises or individuals in China involves Business Law of the People’s Republic of fied for the industrial policies for foreign such issues as financial accounting, China (hereinafter referred to as the Part- investment should be submitted to the en- taxation, foreign exchange, customs terprise registration organ while applying and personnel entry and exit, it should

nership▲ Business Law) be formulated. Article 2 The establishment of for establishment registration. be handled according to relevant laws, partnership business by foreign enter- In the event approving to register, administrative regulations and relevant

prises or individuals in China in the one enterprise registration organ should provisions▲ of China. Measures herein refers to the establish- simultaneously notify the information Article 12 In the event foreign ment of partnership businesses by 2 or related to registration to the competent enterprises or individuals join while

more foreign enterprises or individuals, commerce▲ department at the same level. Chinese natural person, legal person and and foreign enterprises or individuals Article 6 In the event the registra- other organizations set up partnership and Chinese natural person, legal person tion for partnership enterprises set up enterprises in China, it should be subject by foreign enterprises or individuals in to relevant provisions in the Measures

and other▲ organizations in China. Article 3 The establishment of China (hereinafter referred to as foreign herein and go through the enterprise partnership business by foreign enter- investment partnership enterprise) alters, registration organ for the application for

prises or individuals in China should they should apply for alteration to the en- registration▲ alteration.

abide by the Partnership Business Law, terprise▲ registration organ by law. Article 13 In the event the es- other relevant laws, administrative regu- Article 7 In the event one foreign tablishment of partnership enterprises lations and rules and related industrial investment partnership enterprise is by foreign enterprises or individuals in policies for foreign investment. dismissed, liquidation should be done in China involves the investment project The legitimate rights and interests accordance with the Partnership Business that shall be checked and approved by of foreign enterprises or individuals shall Law, and the liquidator should handle the the government, approval formalities for be protected by law while establishing cancellation of registration in the enter- investment project shall be handled ac-

partnership businesses in China. prise registration organ by law within 15 cording▲ to relevant provisions of China.

China shall encourage foreign enter- days ▲ upon the end of liquidation. Article 14 In the event China has prises or individuals with advanced tech- Article 8 In the event foreign other provisions for the establishment nologies and management experience to copartners withdraw from one foreign of partnership enterprises by foreign establish partnerships in China to boost investment partnership enterprise while enterprises or individuals in China with the development of the modern service the enterprise continues to operate, appli- investment as the main business, it should

cation for alteration should be filed to the be subject▲ to the provisions.

industry▲ and other industries. Article 4 The currency utilized by enterprise registration organ according to Article 15 The establishment of

foreign enterprises or individuals for con- law. ▲ partnership enterprises by the enterprises tribution should be the foreign currency Article 9 In the event one foreign or individuals from Hong Kong Special that can be freely exchanged as well as investment partnership enterprise alters Administrative Region, Macao Special or cancels registration, the enterprise reg- Administrative Region and Taiwan

the Renminbi▲ earned by law.

Article 5 In the event of the estab- istration organ should simultaneously no- should▲ be subject to the Measures herein. lishment of partnership business by for- tify the information involved in altering Article 16 The Measures herein eign enterprises or individuals in China, or canceling registration to the competent shall come into effect as of March 1,

the representatives designed or the agent commerce▲ department at the same level. 2010. jointly entrusted by the whole copartners Article 10 In the event the Mea- The State Council of the People’s should apply to the local industrial and sures herein fails to provide for the other Republic of China commercial administration authorized administrative issues for the registration November 25, 2009 66 In order to further transform the government functions and promote the reform of the administrative system, the relevant issues in examining and administering some foreign-invested enterprises in the service industry are hereby notified as follows.

Circular of MOFCOM on Relevant Issues Concerning Examination and Administration of Part of Foreign-invested Enterprises in Service Industry by Provincial Commercial Authorities and National Economic and Technological Development Zones

Commercial authorities of provinc- transactions in the M&A cases. The M&A for establishment and changes of foreign- es, autonomous regions, municipalities cases in the encouraged and permitted cat- invested books, newspaper and periodicals directly under the Central Government, egories involving an amount of transactions distribution enterprises and audio and separately planning cities, sub-provincial less than USD100m, and in the restricted video products wholesale enterprises, municipalities and Xinjiang Production category involving an amount of transac- the document of approval by the General and Construction Corp., national eco- tions less than USD50m are examined and Administration of Press and Publication is nomic and technological development approved by the provincial commercial necessary; for establishment and changes zones and the border economic coopera- authorities and national economic and tech- of foreign-invested non-oil and gas miner-

tion zones, nological▲ development zones. al prospecting enterprises and exploration In order to further transform the gov- III. The provincial commercial au- enterprises, the opinions of the depart- ernment functions and promote the reform thorities and national economic and tech- ment in charge of state land and resources of the administrative system, the relevant is- nological development zones shall strictly of the same level shall be solicited before sues in examining and administering some implement the market access responsibili- the examination and approval; for foreign- foreign-invested enterprises in the service ties according to the provisions of the Pro- invested auction enterprises, the document

industry▲ are hereby notified as follows: visional Measures for Administering Chi- of approval for auction operation by the I. The setting up and changing of nese-Foreign Equity and Contractual Joint provincial department in charge of auction foreign-invested enterprises of the encour- Venture Medical Institutions, the Auction industry is necessary; when the document aged and permitted categories involving Administration Measures, the Administra- of approval and the certificate of approval total investment less than USD100m and tive Measures for Foreign-Invested Book, for foreign-invested enterprises is issued, of the restricted category involving total Newspaper and Periodical Distribution the online records to Ministry of Com- investment less than USD50m as pre- Enterprises, the Administrative Measures merce shall be carried out through the scribed in the Guiding Catalogue for For- for Chinese-Foreign Contractual Joint foreign investment examination, approval eign Investment Industries in the follow- Adventure Audio and Video Products and management systems and the national ing industries are thereafter examined and Wholesale Enterprises, the Administrative management information system in the

administered by the commercial authori- Measures for Foreign-Invested Mineral auction▲ industry. ties of provinces, autonomous regions, Prospecting Enterprises, the Opinions on IV. The changed matters of the municipalities directly under the Central Further Encouraging Foreign Investment foreign-invested enterprises in the above- Government, separately planning cities, in Prospecting and Exploration of Non-Oil mentioned industry shall be examined and sub-provincial municipalities and Xinji- and Gas Mineral Resources, as well as rel- approved by the provincial commercial ang Production and Construction Corp., evant laws and regulations of the country authorities and national economic and and national economic and technological and relevant policies. technological development zones accord-

development zones: The examination and approval of ing to▲ law be reference with this Circular. (I) Chinese-foreign equity and con- Chinese-foreign equity and contractual V. The provincial commercial au- tractual joint venture medical institutions; joint venture medical institutions by pro- thorities and national economic and tech- (II) Auction enterprises; vincial commercial authorities and nation- nological development zones shall report (III) Books, newspaper and periodi- al economic and technological develop- the problems during the examination and cals distribution enterprises; ment zones shall acquire the permits from administration to the Ministry of Com- (IV) Chinese-foreign contractual the Ministry of Health; where changes merce in time. If any examination and joint venture audio and video products happen in such matters of Chinese-foreign approval is against the law, the Ministry of wholesale enterprises; equity and contractual joint venture medi- Commerce shall give criticism by circular

(V) Foreign-invested non-oil and gas cal institutions as the establishers (cooper- depending▲ on the circumstance. mineral prospecting enterprises; and ation parties), the names, the category, the VI. This Circular enters into force (VI) All kinds of non-oil and gas number of beds, the address of practice, as of the date of promulgation.

mineral▲ exploration enterprises. the medical treatment items, the term of II. The power for examining and cooperation and the term of preparation Ministry of Commerce of People’s approving the foreign investment M&A for establishment, prior permits shall also Republic of China cases is divided according to the amount of be acquired from the Ministry of Health; May 4, 2009

67 List upply info

team, which includes 85 development 2010 China Market Suppliers engineers, production specialists, quality control engineers, and 500 skilled work- Email: [email protected] ers. As a professional Hardware manu- Website: www.chenggongfood.com facturer, its main production is as follow: Company Name: Desire Star (China) ATV, dirt bike, pocket bike, go-carts, Tea Industrial Co., Ltd. Company Name: Sinotyre Interna- sport products, power tools, and leisure Company Profile: Desire Star (China) tional Group Co., Ltd goods. Tea Industrial Co., Ltd. was founded in Company Profile: Sinotyre Inter- The company has passed ISO 9001 Oct 2001,it is a key provincial indus- national Group Co., Ltd is located in quality system certifications. And all trialized agricultural producer which Qingdao city, Shandong province which is products have passed EPA, EEC, CE, engages in the cultivation, manufacture, biggest rubber industry area of china. As TUV and GS certification. With well- production, sales, research of the oolong one of the professional tire company, we equipped facilities and excellent quality tea (especially in Wuyi Rock-essence take high quality and excellent service as control system throughout all stages of Tea), green tea, jasmine tea, black tea basic principle. production, we are able to guarantee all etc. From the beginning of company his- Our product range include PCR, customer satisfaction and meeting the tory, “based on agriculture, promoted by LTR, TBR, LTB,TBX, OTR, AGRICUL- market need. technology, growing with tea industry, TURAL TIRE, INDUSTRIAL TIRE, We are committed to persistently develop together” is the soul of manage- SOLID TIRE, MOBILE-HOME TIRE develop, manufacture novel-designed ment, and it keeps the mind of “Inheriting and ATV TIRE. Our products got the cer- and high quality hardware, and most im- the history, Promoting the tea industry” tificates of DOT, ECE, CCC etc and have portantly with affordable price, to satisfy as its destiny. It owns scientific tea base been selling in more than 50 countries and its customers worldwide. Our company & cooperation organization, and exertion regions, such as Middle east, Africa, Eu- is your reliable partner in the hardware of making use of the advanced technol- rope, Southeast Asia, Latin America, the world. ogy in the organic cultivation industrial- U.S.A, etc. Contact Person: Colin Lang ization. Contact Person: Li Zhongyan Tel: 86-579-87136658 With the registered capital 109 mil- Tel: 86-532-88731803/80771658 Fax: 86-579-87139958 lions, 66.05 millions of permanent assets, Fax: 86-532-85977252 Post Code: 321300 and 156.49 millions of annual earning, we Post Code: 266071 Email: [email protected] have owned tea garden 7500mu, and co- Email: [email protected] Website: www.cnge.cc operating garden 13200mu which benefits Website: www.sinotyre-group.com 5152 farmer families. Company Name: Gorobike Carbon Contact Person: Neil E Company Name: China Golden Eagle Composite Industrial Co., Ltd Tel: 86-591-83796888-802 Group Co., Ltd Company Profile: Gorobike Carbon Post Code: 350002 Company Profile: China Golden Eagle Composite Industrial Co., Ltd is a top car- Email: [email protected] Group Co., Ltd being one of the leading bon fiber bike manufacture, which gathers Website: www.wuyistar-tea.com manufactures of hardware in the world is research, production and sales as a whole. a market-oriented and engineering-driven Our company provides carbon bicycle Company Name: Xiamen Haojiang company. Whose products are mainly frames (MTB and road track, TT), forks, Imp & Exp Co., Ltd exported to Asia, South America, Europe, rims, handles, saddles, endbars, stems, Company Profile: Haojiang is profes- Africa, Australia, North America, Argen- and so on. sional food manufacturer of raw materi- tina, Egypt, Ireland IE, Austria, Australia, Merits of our products: No.1-safety: als to collect north & south fruits and Paraguay, Palestine, Brazil, Belgium, Po- smoothness, no inner wrinkle of carbon vegetables. Enterprise is headquartered in land, Denmark, Germany, Russia, Ecua- fibre. Wrinkle is fatal to bicycle’s rigidity. Nanan, Quanzhou. dor, France, Philippines, Finland, Colum- NO.2-Lighter weight. NO.3-front tri- Chenggong cooperative mode of bia Korea, Netherlands, Canada, Czech angle moulded in one time, less agglutina- management insisting on going in “enter- Republic, Kuwait, Croatia, Romania, tion, more powerful. NO.4-agglutination prise + the base + peasants” “ provided Malaysia, United States, Peru, Morocco, position is shaped in moulding time, not with own fields specially plant Of Francs Mexico, South Africa, Norway, Portugal, shaped by machine work, this way can Green bean and Sweet corn, follows Ideas Japan, Sweden, Switzerland, Slovakia, avoid breaking the carbon fibre. NO.5- of “resolve to start an undertaking, revital- Thailand, Turkey, Venezuela, Ukraine, stairway agglutination, to make agglutina- ize the country of the Enterprise”, estab- Uruguay, Spain, Greece, Hong Kong, Sin- tion surface larger. NO.6-distribute joint lishes quality control idea of “only better gapore, New Zealand, Hungary, Iraq, Iran, of fibre in average to enhance intensity not to have it best”. Israel, Italy, India, United Kingdom, Chile by avoiding stress concentration. NO.7- Contact Person: Alan Wang and so on. The annual turnover reaches to reasonable price Tel: 86-592-5332183 about USD 3,050,000 every year. Please contact us freely and we will Fax: 86-592-5980804 The Company covers an area of help your business a lot! Post Code: 361003 60.000 square meters, and has a dedicated Contact Person: Stephen Cai 68 Tel: 86-13616018650 Company Name: Zhanjiang Kangnian Contact Person: Jonathan Zhu Fax: 86-592-3868804 Rubber Products CO. Ltd. Tel: 86-8613860383013 Post Code: 361022 Company Profile: Zhanjiang Kangnian Fax: 86-593-6580911 Email: [email protected] Rubber Products CO. Ltd. is one of the Post Code: 355000 Website: www.gotobike.com.cn largest and most famed corporations Email: [email protected] located in west Canton, a coastal city - Website: www.minsun-motor.com Company Name: China Xinjiang Zhanjiang, where is the unique birthplace Bozhou Middle Asia Travel & Trade Co., of nature latex in China. Company Name: Fuzhou Changhua Ltd. The Co. covers 16,000 sqm, has Power machinery Co. Ltd Company Profile: China Xinjiang factories of its own & a vast of staffs with Company Profile: We are professional Bozhou Middle Asia Travel & Trade Co., wealthy field experience and advanced electric machinery manufacturer in china, Ltd. established in 2000.The company facilities that applied steam lining work which specializes in producing diesel deal with the process and export of Christ- procedure for both processing and quality and gasoline engine, diesel and gasoline mas trees and arts.Integrated import/ control. generator, as well as diesel and gasoline export trade freight agent and tourism. Kangnian engages in researching, water pump. Our company has obtained The company annual import and export developing and selling her products in- ISO9001 certification and Chinese na- commerce volume could reach to 90 Mil- clude light equipments of sport and latex tional CCC certification; most of our prod- lion American dollars and the products are related outfits for health care purpose, ucts now have passed CE certification. exported to more than 50 countries. such as soft expander, Yoga products etc. Our products have been exported to more Company has branches and offices which obtained National patent for manu- than 30 countries and regions, mainly in not only in inland China, as Beijing, facture & sale. She is officially authorized Europe, Southeast of Asia, America and Guangzhou, Suifenghe, Manzhouli, to own her right for import & export trade; Middle East. Wengzhou and so on but also in abroad, products have been sold out to European Contact Person: Kate such as Russia, Kirghizstan, Azerbaijan countries and U.S.A. as well as the rest of Tel: 86-591-88071392 and Australia. Our company sincerely the world. Fax: 86-591-83845608 welcome the friends both home and In the spirit of unification & innova- Post Code: 350001 abroad to consult with us and we will pro- tion, Kangnian firmly observes its opera- Email: [email protected] vide you warmest services. tion principle of striving for betterment, is Website: www.changhuapower.com Contact Person: Li ming cordially willing to have you as her coop- Tel: 86-991-8857706 6118770 erators or partners to develop a common Company Name: Himin Solar Energy Fax: 86-991-6118239 promising future. Group Co., Ltd Post Code: 830000 Contact Person: Meko Company Profile: Himin Group is a Email: [email protected] Tel: 86-759-3286206 large limited liability company integrat- Website: www.matour.cn Fax: 86-759-3285800 ing R&D, manufacturer and marketing. Post Code: 524044 The company has approx. 330 hectare Company Name: Xiamen China-Com- Email: [email protected] in land area, 5000 staff members in mercial Trade Import & Export Co., Ltd Website: www.kangnian.com.cn Dezhou operation and more than 50000 Company Profile: We manufacture employees nationwide. The company and supply tents, tent, camping tents, out- Company Name: MinDong ShengYu- was among the top 30 private enterpris- door tents, dome tents, family tents, cabin an Electromechanical Co., Ltd. es in terms of taxation, one of top 5 of tents, bungalow tents, beach tents, canopy Company Profile: It is located in fa- influential brands of household electric tents, truck tents, lover tents, 2 persons mous China MinDong Engine City-the appliance across the country and the ex- tents, 3 persons tents, 4 persons tents, 5 city zone of Fu’an Fujian. Its traffic is clusive “Chinese famous Trademark” in persons tents, 6 persons tents, 7 persons very convenient, and environment is solar energy industry and its brand was tents, 8 persons tents, 9 persons tents, 10 so beautiful. Our company occupies valuated of RMB5.1 billion Yuan. persons tents, 11 persons tents, 12 persons 3600m2 with abundant strength and The Group has recently undertaken tents, 4 seasons tents, 3 seasons tents, trailer skill base. We produce all kinds of on four national projects under 863 Plan, tent, army tent, military wall tents, round generators, electromotor, SY series owned nearly 200 patents, established military tent, hunting tents, wedge tents, gasoline gene-sets and pump profes- independent intellectual property system army surplus tents, hike tents, fishing tents, sionally. Our products move off in the and entered into photovoltaic, Winpin awnings tents, tourist tents, festival tents, national market and export to the in- energy-saving glass, solar energy inte- party tents, canvas tents, mountain tents, ternational market, and trusted by the gration building and other fields to pro- waterproof tents, picnic tents, garden tents, customer. duce solar water heater, vacuum heat col- pop-up tents, two second tents, Tipi tents, It is a modern enterprise with genera- lection tubing, large solar energy water kid tents, roof top tents, circus tents, Light- tor, motors and electric pumps as its main heating system. weight tents, Caravan awnings, 3 rooms products, and the establishment of modern Contact Person: Xinwen Xue tents, 2 doors tents. enterprise system as its goal. It strictly Tel: 86-534-2312963 Contact Person: Mr.Sassoon Sun carries out ISO9001-2000 management Fax: 86-534-2312962 Tel: 86-592-505795 system and tries to create first -class prod- Post Code: 253000 Fax: 86-592-505795 uct bands. It has strong technical forces, Email: [email protected] Post Code: 361012 and its products include 20 series and re- Website: www.himin.com Email: [email protected] gions as Southeast Asia, the Middle East, Website: www.38370.tradebig.com Africa, America, etc. (Source:www.chinamarket.com.cn) 69